Ethical Economics — A Bahá'í Approach:

The systems of economics which have been tried so far have not brought prosperity to everyone. On the contrary, some people and some nations have done very well, but most people and most nations have not.

There are many teachings on economics in the Bahá’í Faith. To gain a better understanding of these, the Bahá’í economic principles need to be seen in the light of general Bahá’í beliefs. The most fundamental beliefs are, firstly, that we should treat all people, of whatever country, faith, gender, ability or degree of wealth, as of equal value as a human being. Secondly, that this earth should be seen as if it were one country, with a world government, world economic system and a world civilisation.

The current economic model depends on greater and greater consumption by the individual. This is not a sustainable model, neither is it good for the environment. Rampant materialism must give way to a more balanced view of the world, in which everyone has the right to a reasonable standard of living and in which resources can be conserved. At present, much of the developing world struggles against poverty and a world economic system which is loaded against them.

Bahá’ís believe that the following basic measures are necessary to improve matters:

• all trade barriers should be removed
• a common system of weights and measures should be adopted
• a world currency should be established
• interest rates should be set at a fair level

These measures would make trade easier between countries and remove many of the difficulties faced by less developed nations.

A Moral and Spiritual Basis

In order for improvements to be made, there needs to be a change in the general attitude of humanity. All religions teach that we should treat others as we would wish to be treated ourselves; all religions teach moral qualities such as honesty, integrity, fairness, trustworthiness and loyalty. Each individual worker and each company, as well as each level of government, needs these qualities in order to bring lasting economic benefits to all.

For example, trustworthiness is an essential quality: the world could not run successfully without it. Bahá’u’lláh, the Founder of the Bahá’í Faith, said that trustworthiness is “the supreme instrument for the prosperity of the world.” In any undertaking, any business dealing, the two parties need to be able to trust one another.

In another example, companies and employees need to be loyal to one another. But this cannot be blind loyalty – both parties must respect one another and know that they will be treated fairly and honestly. Employees need to do a fair day’s work and employers need to pay them fairly for that work. Likewise, companies need to be honest with their customers and to treat them fairly and with respect. The owners of each enterprise should understand that ultimately it exists to serve humanity as a whole.

Work and the Individual

Bahá’u’lláh said that work, performed in a spirit of service, is equivalent to worshipping God. This is a very different attitude to that which many of us have; however, this spirit of service does make work more satisfying.

Bahá’u’lláh’s son, ‘Abdu’l-Bahá, travelled to Europe and America and there he explained the principles of the Bahá’í economic system. For example, he said that employees should receive a share of the profits of their company. This gives workers both a greater role and a greater interest in their employment.

Equality and Justice

At a time when communism was new, ‘Abdu’l-Bahá explained that absolute equality of income and role is not practical:

“Absolute equality in fortunes, honours, commerce, agriculture, industry would end in chaos, in disorganisation of the means of existence, and in universal disappointment; the order of the community would be quite destroyed.”

Although absolute equality is not possible, extremes of poverty and wealth must certainly be eliminated. Each person has the right to the basic necessities of life but no-one has the right to more wealth than he or she can use. ‘Abdu’l-Bahá explained, more than 100 years ago, that there should be a minimum wage and that taxation laws should be designed to ensure that everyone exists within comfortable limits.

He explained a detailed system of financial support, administered by the local authority. A family whose income exceeds its needs is taxed, but a family which does not earn enough to support itself is supported by the local community.

Each local community would contribute to the national funds, if it could afford to do so, but could also be supported by national funds if necessary. The same principle would apply to national communities, who could support others or be supported themselves. This system already applies within the Bahá’í community.

Voluntary Giving

In the Bahá’í system, someone who has increased their wealth by a certain amount should give a specified percentage of that increase to be used for the good of the community. This is a voluntary act and it is up to the individual to decide by how much their income has exceeded their needs. This decision therefore has a spiritual basis. ‘Abdu’l-Bahá wrote, more than a century ago:

“The time will come in the near future when humanity will become so much more sensitive than at present that the man of great wealth will not enjoy his luxury, in comparison with the deplorable poverty about him. He will be forced, for his own happiness, to expend his wealth to procure better conditions for the community in which he lives.”

Voluntary giving has certainly become more widespread during the last century. Many of us are moved to help those in need within our own communities, or indeed, across the world. A natural disaster will attract immediate help from many countries.

A Brighter Future

This voluntary giving is a hopeful sign that we are on our way to a better future. Although the implementation of certain economic principles could improve the lot of humanity, it is only when the need for justice and social equality is universally recognised that the full impact can be achieved, for in reality:

“The secrets of the whole economic question are…concerned with the world of the heart and spirit.”

When we are able to make the necessary changes to ourselves and to our economics:

“…Divine Justice will become manifest in human conditions and affairs, and all mankind will find comfort and enjoyment in life.”

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