Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: Hooshmand Badee, Economics and the Baha'i Faith, bahai-library.com.
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Economics
and
The Bahá’í Faith

Hooshmand Badee
First published in Great Britain in 2018
Revised edition: 2021
Second edition: 2023
Copyright © Hooshmand Badee
All rights reserved
Cover design by Sam Goodwin
Printed in the UK
ISBN: 978-1-5136-4144-7 (Paperback)

ii
Acknowledgement is lovingly given to the Academic Review Panel
of the National Spiritual Assembly of the Bahá’ís of the United
Kingdom for reviewing this work.

iii
For May,

and her loving support

throughout this journey

v
Acknowledgements
The preparation, execution and completion of this work has
been made possible through the unfaltering support of many
people to whom I owe a debt of gratitude. Foremost, my
sincere thanks go to Professor Sebastian Kim and Professor
Pauline Kollontai, who were a source of inspiration for me
throughout this intellectual undertaking. I am immensely
thankful to the University of Leeds and York St John
University for providing the opportunity to do this research
on the proposed theme ‘Bahá’í teachings on economics and
their implications for the Bahá’í community and the wider
society.’

Within the Bahá’í community, I received guidance and
support from the Supreme International Governing Council
of the Bahá’í Faith, the Universal House of Justice. In
addition, the Research Department of the Universal House of
Justice has been very supportive and cooperative in providing
the original Writings needed and assisted in the translation of
a number of original quotes from the Persian language into
English. Also, I have received necessary guidance on a
number of subjects pertinent to this work from the Office of
Huqúqu’lláh (the Right of God) and the Office of Social and
Economic Development. I am immensely thankful to the
Academic Review Panel of the National Spiritual Assembly
of the Bahá’ís of the United Kingdom for reviewing this
work and providing valuable comments. I am appreciative
and owe profound gratitude to several Bahá’í scholars
including Dr Shapour Rassekh, Dr Vahid Ra’fati, Mr Mark
Hellaby, and Professor Farhad Rassekh, for their generosity
in giving me their time and sharing their valuable knowledge
and insights.
vi
Finally, the greatest source of support during the period of
doing this work has been my family, whose unwavering
support have been a part of this work. The love, sacrifice and
patience of my son, Vesal, showed with technical assistance
and formatting of this book in addition to his very helpful
thoughts and ideas, were received with great appreciation.
Special thanks to my son-in-law, Sam, for his assistance in
the design and formatting of different parts of this work.
While carrying out this work, in addition to our three
amazing children and their spouses, my life was blessed and
made enjoyable by six grandchildren, Kara, Lana, Lani, Mila,
Aría and Hooshmand by their charm and fascination and I
hope in their own good time they will choose the path to
serve humanity. There are never enough words to express my
love and gratitude to my wife, May, for her full support. Her
sacrifices and advice have been outstanding, and it is
inconceivable how I could have finished this work without
her support.

vii
Introduction

Table of Contents
Chapter 1: Introduction .........................................................5
1.1 Background ...................................................................... 5
1.2 The organization of this work ................................... 5
1.3 The aims and significance of this work .................. 8
1.4 Exploring questions ....................................................10
Chapter 2: Key Words, Definitions and Concepts ......... 13
2.1 Defining economics .....................................................13
2.1.1 Is there a Bahá’í economic system? ........................................ 18
2.1.2 Bahá’í community ......................................................................... 25
2.1.3 Wider society .................................................................................. 28
2.1.4 Analogy of human family ........................................................... 29
2.1.5 The concept of spirituality .......................................................... 33
2.2 A brief account of economic condition of Iran at
the time of Bahá’u’lláh ..............................................................42
Chapter 3: Sustainable Production .................................. 45
3.1 Introduction ...................................................................45
3.2 A brief historical perspective of work ethics......46
3.3 Sustainable production ..............................................52
3.4 Bahá’í work ethics .......................................................56
3.5 Bahá’í teachings to increase supply of labour ....66
3.5.1 Bahá’í view on idleness ............................................................... 67
3.5.2 Bahá’í view on begging as a profession................................. 70
3.5.3 Gender Equality ............................................................................. 75
3.5.4 Importance of education and training ..................................... 80
3.5.5 Consultative method of decision-making .............................. 84
3.5.6 Employee-employer relationship ............................................. 89
3.5.7 Cooperation instead of competition......................................... 91
3.6 Chapter conclusion ......................................................96
Chapter 4: Distributive Justice .......................................... 98
4.1 Introduction ...................................................................98
4.2 Significance of distributive justice .........................99
4.3 Contemporary theories of distributive justice 105
4.4 Bahá’í perspective on importance of wealth ... 110
4.5 Bahá’í view on self-interest ................................... 116
4.6 Voluntary versus compulsory giving.................. 124
4.7 Specific Bahá’í principles on wealth
redistribution ........................................................................... 130
4.7.1 Government participation ........................................................ 130
4.7.2 Principle of equity ...................................................................... 134
Economics and the Bahá’í Faith

4.7.3 Principle of profit sharing ........................................................ 135
4.7.4 Progressive income tax ............................................................. 140
4.7.5 Law of inheritance...................................................................... 144
4.7.6 Law of Ḥuqúqu’lláh (the Right of God) ............................ 146
4.7.7 Contribution to the Bahá’í Fund ............................................ 152
4.8 Application of Bahá’í teachings on wealth
redistribution .......................................................................... 155
4.9 Chapter conclusion .................................................. 157
Chapter 5: Sustainable Consumption ........................... 159
5.1 Introduction ............................................................... 159
5.2 Bahá’í view on sustainable consumption ......... 160
5.3 Challenges of consumerism .................................. 169
5.4 Importance of consumer education ................... 180
5.5 Significance of the principle of moderation .... 186
5.6 Human contentment and satisfaction ............... 193
5.7 Specific teachings on sustainable consumption
5.7.1 Bahá’í law of Fasting ................................................................ 196
5.7.2 Bahá’í perspective on food and agriculture ....................... 197
5.8 Further analysis of sustainable consumption 206
5.9 Chapter conclusion .................................................. 210
Chapter 6: The Bahá’í view on Globalization ............. 212
6.1 Introduction ............................................................... 212
6.2 Unity, a prerequisite for understanding Bahá’í
globalization ............................................................................. 214
6.3 Recognition and application of unity/oneness223
6.4 Good life and real happiness ................................ 226
6.5 Importance of core values ..................................... 232
6.6 Multi-dimensional aspect of an ideal
globalization ............................................................................. 238
6.7 Principles of an ideal globalization .................... 243
6.7.1 Universal and compulsory education ................................... 243
6.7.2 The view on world citizenship ............................................... 250
6.7.3 Institution of the Nineteen-Day Feast .................................. 251
6.7.4 Institution of the Bahá’í marriage ......................................... 253
6.7.5 Pioneering and travel teachings ............................................. 254
6.7.6 Developing capacity to serve humanity .............................. 254
6.7.7 Social and economic development projects ....................... 255
6.7.8 The Covenant ............................................................................... 256
6.7.9 A universal language and script............................................. 257
6.7.10 Principle of universal peace .............................................. 259
6.7.11 Free and fair international trade ....................................... 264
6.7.12 An international single currency...................................... 270
Introduction

6.8 Opportunities and challenges of globalization279
6.9 The Bahá’í World Commonwealth ...................... 289
6.10 Chapter conclusion ................................................... 292
Chapter 7: Bahá’í Development Approach: Theory and
Practice 295
7.1 Introduction ................................................................ 295
7.2 Office of Social and Economic Development .... 296
7.3 Bahá’í view on development ................................. 297
7.4 Features of Bahá’í development .......................... 301
7.4.1 Material and spiritual coherence............................................ 302
7.4.2 Universality of Bahá’í development .................................... 302
7.4.3 Development with the grassroots population .................... 303
7.4.4 Education, the focus of Bahá’í development ..................... 304
7.4.5 Community building process .................................................. 306
7.4.6 Collabouration with organizations of the society ............ 307
7.5 Development in practice ........................................ 307
7.6 Chapter conclusion ................................................... 309
Chapter 8: The Bahá’í Inspired Model of Economic
Sustainability 311
8.1 Introduction ................................................................ 311
8.2 The rational for the model ..................................... 313
8.3 Illustration of the model ......................................... 317
8.3.1 Unity/oneness as the nucleus of the model ........................ 319
8.3.2 Spiritual principles of the model ........................................... 321
8.4 Human, financial and physical resources ......... 329
8.5 Cycle of production ................................................... 331
8.5.1 Needs and wants ......................................................................... 331
8.5.2 Organizations ............................................................................... 333
8.5.3 Sustainable production .............................................................. 336
8.5.4 The market .................................................................................... 338
8.5.5 Distributive justice ..................................................................... 340
8.5.6 Sustainable consumption.......................................................... 341
8.6 Analysis of the model ............................................... 343
8.7 Chapter conclusion ................................................... 350
Chapter 9: Concluding Remarks ................................... 352
Bibliography ............................................................................. 361

Economics and the Bahá’í Faith

Introduction

Chapter 1: Introduction

1.1 Background
Living amongst both the poorest nations and the wealthiest
nations of the world for more than four decades, I witnessed
inequality in standard of living and widening the gap between
the rich and the poor. It was clear experiences and
observations that such extremes and their effects on people’s
lives are of great significance in understanding and redefining
human well-being. This condition of affairs and living
disorder need to be addressed, by examining its causes and
symptoms. The multiple consequences of contemporary
social and economic problems have affected the whole of
society, and the Bahá’í community as part of it. I was
intrigued to learn how the Bahá’í teachings and the Bahá’í
community would respond to such challenges. Statements
such as ‘The fundamentals of the whole economic condition
are divine in nature’ 1 and ‘spiritual solution to economic
problems’ are repeatedly appears, in one form or another, in
the Bahá’í scriptures and introductory literatures as one of the
basic principles to tackle contemporary economic issues. This
requires an in-depth study of Bahá’í teachings on economics,
and what the Bahá’í Writings or approach has to offer to have
an impact on the economic life of Bahá’ís and the wider
society.

1.2 The organization of this work
The exploration of Bahá’í teachings on economics is carried

‘Abdu’l-Bahá. Promulgation of Universal Peace, compiled by Howard MacNutt,
2nd ed., Wilmette IL: Bahá’í Publishing Trust, 1982, p. 237.
Economics and the Bahá’í Faith

out through four broad categories of sustainable production,
distributive justice, sustainable consumption, and Bahá’í
globalization. Also, a Bahá’í inspired model of economic
sustainability based on moral incentives is developed as a
theoretical representation of the impact of Bahá’í teachings
on human conduct in creating a more balanced economy. It is
vital to note the interconnectedness of these groupings.

For the principal research organization, the Writings of three
central figures of the Bahá’í Faith, Bahá’u’lláh, the Báb and
‘Abdu’l-Bahá, along with the Writings of the Guardian of the
Bahá’í Faith, Shoghi Effendi, and the international governing
body, the Universal House of Justice allow to construct a
framework for this work. It is the relationship of these
Writings which I find attractive and which will enable me to
draw a range of strands in this book into a coherent whole.
The inspiration for this work is, therefore, a combination of
observation, theoretical investigation along with positive and
constructive critical thinking.

Although, all practice is drawn from a Bahá’í perspective and
as a consequence analysis is related in a direct way to Bahá’í
way of thinking with an episcopal structure Bahá’í
institutions. However, some comparison will be made with
other schools of economics and the views and Writings of
non-Bahá’í writers and scholars where similarities and more
widely applicable understandings of oversight can be
identified. Extensive numbers of passages from the primary
and secondary Bahá’í sources on relevant topics are
incorporated into the main body of this enquiry as the basis
for the analysis of various subjects linked with economics. To
assist further, it is necessary to become familiar with specific
terminologies used. The following guideline from the
Universal House of Justices is a standard for appropriate
Introduction

terminologies that need to be used in any academic
exploration using Bahá’í Writings:
The Writings of the Báb and Bahá’u’lláh are Divine
Revelation, the Word of God, and together with the
Writings of ‘Abdu’l-Bahá constitute the Sacred
Scriptures of the Bahá’í Faith. According to Shoghi
Effendi, the words of ‘Abdu’l-Bahá ‘are not equal in
rank, though they possess an equal validity with the
utterances of Bahá’u’lláh.’ As to the Writings of the
beloved Guardian and the pronouncements of the
Universal House of Justice, though they are not
regarded as Sacred Texts nor of the same station as
the Writings of the Central Figures of the Faith,
nevertheless, they are authoritative statements of
guidance and direction for the [Bahá’ís].2

This approach will be used for the organization of this book
for the extensive use of Bahá’í Sacred Scriptures or primary
resources, and the authorised interpretation by ‘Abdu’l-Bahá
and Shoghi Effendi. The selected passages are then adapted
to a specific topic, and subsequently, they are explained,
analysed and compared. The original and primary sources
have been in Arabic and Persian. It must be noted that the
primary resources were originally written either in the
authors’ hand writings or by their secretaries concurrently
during the revelation and sealed by the author. Shoghi
Effendi subsequently translated a number of these Writings
from Persian and Arabic into English. He, during his own
lifetime, mostly used the English language as a medium for
correspondence and communication with the Bahá’í world
community in the West (Europe and America). It should be
noted that where references have not been provided,
assertions are the perception and opinion of the author.

Universal House of Justice. ‘Bahá’í Terminology for Research Purpose,’ 11
November 2014, electronic correspondence to the author of this book.
Economics and the Bahá’í Faith

1.3 The aims and significance of this work
The principal purpose of this work is to explore the Bahá’í
teachings on economics and the way it contributes to the
academic discourse, and its impact on the members of this
Faith. Furthermore, knowing and understanding the economic
principles of the Bahá’í Faith can assist Bahá’ís to work
towards building a community based on spiritual and material
foundation, as intended by its Prophet-Founder, Bahá’u’lláh.

Economics has advanced immensely in last two hundred
years and since the publication of The Wealth of Nations in
1776 by the founder of school of the classical economics and
the father of modern economics, Adam Smith. Although
during this period the actual wealth of nations has increased
substantially, at the same time the gap between high and low
wage earners has increased dramatically in most of the world,
particularly since the early 1990s. This is despite strong
economic growth that created millions of new jobs.
Therefore, the aim of this work is to demonstrate that
economics and its relevant models and theories may have the
ability to deal with many of the contemporary economic
problems so long as the processes and the end result promote
the common good and eliminate extremes of wealth and
poverty.3

Another significant aim of this undertaking is the proposition
that moral incentives ought to be one of the pillars of modern
scientific economics. The perception is not that economics
and religion are the same, or generate the same outcome, or
have the same effect on people, but that the effective
partnership of the two fosters human well-being. It will be
argued that religion and economics combined are potent

See: <https://ourworldindata.org/economic-growth>
Introduction

forces for resolving socio-politico-economic challenges of
our time. On one hand, the Bahá’í literatures advocate ending
discrimination, creating strong families, gender equality,
poverty alleviation, and exercising moderation, compassion,
honesty, and good character. On the other hand, economic
literatures and academic textbooks emphasis the role of
saving and capital formation, sound use of money and
banking, the specialisation and trade, entrepreneurship, the
role of government and legislation, efficient use of resources,
equilibrium in the price system, and promoting growth and
development. Consequently, the two disciplines of religion as
a spiritual realm and economics as a social science, although
different entities, together would be able to have a great
impact on people’s well-being. Exploring this view, Bahá’í
scholar and development expert Haleh Arbab focuses on the
significance of the role of science and religion:
Through science we explore the social and physical
aspects of reality. Through religion we learn about
spiritual principles that are expressions of the laws of
material and spiritual existence and are built into the
very structure of the universe. Religion reveals to us
principles that are neither invention of the human
mind nor social conventions but insights into reality.
Science helps us apply these principles to the social
reality in which we are immersed.4

According to this view, religion and economics have
complementary aims and objectives and together accelerate
the economic well-being of the whole society.

Shoghi Effendi, the Guardian of the Bahá’í Faith emphasises
the significance of the Bahá’í Writings on economics and the
need ‘to study the economic teachings in the light of modern

Haleh Arbab. Electronic correspondence with the author, 15 January 2015.
Economics and the Bahá’í Faith

problems more thoroughly.’ 5 The discussion of ‘modern
problems’ is based on my keen awareness and understanding
of events throughout the world, whether social, political,
economic, environmental and spiritual. Also, it is based on
my academic background as an academic economist. Modern
problems are examined in light of Bahá’í literature. It is
notable to state that the Bahá’í Faith has appeared in an age
of socio-politico-economic interdependency and has
addressed contemporary problems through a great diversity
of Writings. These contemporary problems will be studied
and examined throughout this work. Exploring Bahá’í
teachings while there is not yet a significant research on
Bahá’í economics makes this work more challenging, and at
the same time, original and timely to the Bahá’í community
and to academia.

1.4 Exploring questions
This work explores the role of Bahá’í teachings in economics
and their implication for the Bahá’í community and the wider
society. It examines and discusses this topic by raising a
number of questions:
I. Is there a role for morality and spirituality in
economics? The view expressed is based on the idea
that if economics creates relationships between people
through exchange and trade, then moral incentives
would be a necessary condition for an effective
relationship. Moral codes of conduct become essential
for an effective application of supply and demand and
price mechanism among participants of the market,
and for successful operation of production,
distribution and consumption as three basic principles
of economics, and in the process of attaining a

Shoghi Effendi. ‘Letter dated 11 January 1933.
Introduction

meaningful and enlightened globalization. This work,
in reference to the Bahá’í Writings, suggests a number
of moral and spiritual principles for smoother
operation of economic principles.

II. What are some of the distinctive principles
influencing Bahá’ís to participate in the labour market
to produce goods and services? This question is in
reference to Bahá’í work ethics. In the modern
working environment, the focus is on the role of
technology and motivating the workforce to produce
more through monetary incentives. But there is more
than simply producing more: other factors need to be
considered, such as producing commodities that
preserve the environment, allocate resources
efficiently, and are befitting human dignity. The
Bahá’í attitude, therefore, is beyond just producing
more.

III. How does the Bahá’í principles more effectively
influence the elimination of extremes of wealth and
poverty? This leads to a discussion of how Bahá’ís
attempt to develop a sustainable life-style. The
discussion of improving economic performance and
increasing the total level of output, together with
wealth redistribution, would be inadequate and
incomplete if a minority of the world population
possesses a large proportion of the world’s resources.

IV. How does the Bahá’í concept of globalization differ
from the one currently forming? Today the lives of
people and organizations are interrelated and
interdependent in every aspect: economically,
socially, politically, environmentally, and spiritually.
Economics and the Bahá’í Faith

The future life of humanity is global and this is more
a certainty than an option. The challenge, however, is
in the process adopted for a meaningful global
integration.

V. To what extent are the Bahá’í principles on
economics being practiced within the Bahá’í
community? It will be discussed that the application
of Bahá’í teachings on economics, at this early period
of the development of the Bahá’í community, is
challenging because there is no Bahá’í state or a
Bahá’í government to fully implement Bahá’í
principles. Bahá’ís are spread all over the world with
diversity of cultures, and a part of socio-politico-
economic system of a country they live.

Key Words, Definitions and Concepts

Chapter 2: Key Words, Definitions and Concepts

The proposed title for this work is ‘Economics and the Bahá’í
Faith’, which explores the Bahá’í teachings on economics
and their implications for the Bahá’í community and the
wider society. A number of direct and indirect keywords are
relevant to this subject including: Bahá’í, economics, Bahá’í
community, wider society, and spirituality. These key words
are discussed in this section.

2.1 Defining economics
The conventional definition of ‘economics’ has some
relevance to this enquiry. The term ‘economy’ comes from
Greek oikonomia. The word denoted ‘household
management’ or a person skilled in this, hence the early sense
of the adjective in the late 16th century.1 If economy is ‘the
arrangement…of a general system of organization,’ 2 then
economics is the study of the economy. In wider society, the
household can be compared to a government that has
responsibility for the management of a nation’s resources for
the benefit of the entire population; in the same way, a
household ensures the management of the house and the well-
being of all members. In several of his Writings, ‘Abdu’l-
Bahá uses this concept when explaining the economic
arrangement of society. For example, he said, ‘This
household is not well managed. This household is not living

Oxford Dictionary of English. Oxford: Oxford University Press, 2nd ed., 2005,
p. 552.
Universal House of Justice. Haifa: Bahá’í World Centre, letter dated 4 June
2013.
Economic and the Bahá’í Faith

under perfect law.’3 He, then, refers to a need for legislation
to aid the proper functioning of a household, the whole
community or a nation, he said, ‘a law must be given to this
family by means of which all the members of this family will
enjoy equal well-being and happiness.’4 In this passage, using
the concept of ‘household,’ ‘Abdu’l-Bahá talks about the role
of government in establishing legislation to ensure that the
well-being of the whole nation is create.

Adam Smith defined economics from a mainly political
perspective associated with increasing the wealth of a nation.
He considered labour as an economic man. Considering that
Smith lived in the period of industrial revolution, the issues
of production, wealth, labour productivity and competition
were pertinent during this period. The Industrial
Revolution was the transition to new manufacturing
processes in the period from about 1760 to sometime between
1820 and 1840. Adam Smith’s The Wealth of Nations was
published in 1776. However, the conventional definition of
economics as ‘household management’ and Adam Smith
viewing labour as ‘economic man’ may not be an adequate
expression for the new age with a much more complex world
economy, which has expanded beyond the world known to
the ancient Greeks or for the period of industrial
revolution. Perhaps we ought to look at wider definitions.
The modern definitions of economics are in relation to the
efficient use of scarce resources and their effects on each
other. The three main economic resources, land, labour, and
capital, are known in economic textbooks as factors of

‘Abdu’l-Bahá. Foundation of World Unity, compiled by the National Spiritual
Assembly of the Bahá’ís of United States, Wilmette IL: Bahá’í Publishing Trust,
1979, p. 38.
‘Abdu’l-Bahá. Foundation, p. 39.
Key Words, Definitions and Concepts

production. 5 These resources are, however, inactive by
themselves, unless a fourth factor, such as the entrepreneur,
uses them effectively to produce commodities. It is based on
an interpretation of the definition of modern economics
where a relationship between human behaviour and economic
resources is considered. This view is supported by an earlier
definition by a leading economics figure in British higher
education Charles Robbins. As early as 1932, Robbins
defined economics as ‘The science, which studies human
behaviour as a relationship between ends and scarce means
which have alternative uses.’ 6 Leading development
economist Michael Todaro’s definition of economics is also
relevant to this discussion. For Todaro, ‘Economics is a
social science. It is concerned with human beings and the
social systems by activities to satisfy basic material needs and
non-material wants.’ 7 Another popular definition of
economics that can be seen in most economic textbooks and
has relevance to our discussion in this research is from Alfred
Marshal. He writes: ‘Economics is the study of mankind in
the ordinary business of life.’8 The ordinary, normal, usual, or
everyday business of life for most people should include the
minimum standard of living as human rights including
sufficient food, cloths, shelter, health and education.
However, poverty, inequality, increasing the gap between the
rich and the poor, child labour, consumerism, wastage of the
Earth’s precious resources and various types of negative
externalities are examples of abnormality that affects the life
of humans and the eco-system.

Paul Krugman, Maurice Obstfeld and Marc Melitz. International Economics:
Theory and Policy, 9th ed., London: Pearson Education International, 2012, p. 81.
Charles Robbins. See: Stephen Ison, Economics, 3rd ed., London: Pearson
Education Limited, 2000, p. 1.
Michael Todaro. Economic Development in the Third World, 4th ed., London:
Longman Publication, 1992, p. 26.
Alfred Marshal. Principles of Economics, p. 1.
Economic and the Bahá’í Faith

These concepts and definitions are convenient for this study
because they draw attention to the unique feature of human
beings, human society, and our everyday needs as a complex
pattern of behaviour towards sustainable production (chapter
3), distributive justice (chapter 4) sustainable consumption
(chapter 5), and Bahá’í globalization (chapter 6). Hence,
there is relevance between conventional and modern
definitions of economics and the Bahá’í perspective on the
role of human behaviour in economics. Economics, in this
study, is viewed as a social science, but also as an ‘art’. ‘Art’,
in a sense that in using scarce resources, we need to use our
creativity, ability, talent, sensitivity and understanding, in a
way that one enjoys and appreciate the finished product or
service.

Furthermore, the modern economic discipline is described in
terms of ‘microeconomics’ and ‘macroeconomics’.
Economists have been concerned primarily with the problem
of making the best use of the world’s scarce productive
resources at a single point in time. Microeconomics studies
this problem from the perspective of individual firms and
consumers. 9 Thus, microeconomics is about variables and
entities, in small scale that can be controlled by households
and firms. Economic variables such as price, supply and
demand exist in relation to other variables such as income
and employment and they act together within a time factor to
form a system or a model. The results of all these interactions
of variables lead to developing phenomena such as surpluses
and shortages of commodities affecting supply and demand
and relevant prices. People, households, firms, governments

Paul Krugman and Maurice Obstfeld. International Economics: Theory and
Policy, 6th ed., London: Pearson Education International, 2003, p. 323.
Key Words, Definitions and Concepts

and even countries can be considered economic variables
interacting with other variables of the same nature. Adam
Smith and the classical school of economics support this type
of economics. Macroeconomics, on the other hand, is about
how large changes affect the system that the variables make
up. The rules of economics change; and what may be true of
microeconomics in small-scale is not necessarily true of
macroeconomics for large-scale phenomena, such as
unemployment, economic growth, and export and import.
John Maynard Keynes is the founder of this type of economic
discipline, which is known as macroeconomics. An
alternative economic discipline to support this discussion is
coined by author Marjorie Kelly, the Director of Special
Projects with the Democracy Collabourative, and is known as
the ‘Generative Economy.’ Explaining ‘generative economy,’
Kelley asks, what kind of economy is consistent with living
inside a living being? This question is being answered in
experiments across the globe. Generative economy is about a
life-style that is sustainable. Hence, generative economy is
defined as ‘a living economy that is designed to generate the
conditions for life to thrive an economy with a built-in
tendency to be socially fair and ecologically sustainable.’10

This notion concerns the structure of the system within which
economic variables act, and the way the system itself
operates. The teachings of the Bahá’í Faith, in this analysis,
are about ‘generative economics.’ They do not deal with the
way variables interact economically, for example, how much
a person should be paid, or the way systems behave, or the
solution for poverty. This would explain why ‘there are
practically no technical teachings on economics’ 11 stated in

Marjorie Kelly. Retrieved: <http://www.marjoriekelly.com>.
Shoghi Effendi. ‘Letter dated 25 January 1936’, American Bahá’í News, no.
103, p. 2.
Economic and the Bahá’í Faith

the Bahá’í Writings. However, the Bahá’í teachings suggest
what is morally possible for individuals and firms, such as
allowing charging a fair interest rate on loans; and that
economic systems are immoral if there are extremes of
wealth and poverty, rather than how an extreme might be
defined. In the proposed model of economic sustainability
(chapter 8), micro and macroeconomic variables interact with
each other in close association with spiritual principles to
influence the participants of the market in making right
choices and right decisions.

2.1.1 Is there a Bahá’í economic system?
A system comprises multiple components, including
concepts, rules, principles, analysis, design, structure,
purpose, behavior, time-based factor, and implementation.
The economic system is composed of households, firms,
government, and trading institutions and their relationships to
resources, such as land, labour and capital. An economic
system, in more specific, is a mechanism that deals with
fundamental economic principles of production, distribution,
consumption of goods and services, and flow of money in a
particular society. It addresses the problems of economics
such as limited resources and unlimited wants, and the
allocation and scarcity of resources. The purpose of an
economic system is to improve the well-being of the
generality of population in a society.

The term ‘system’ comes from the Latin word systēma means
‘whole compounded of several parts or members’, literary
‘composition’. Most popular dictionaries define system as a
set of interacting or interdependent component parts that
forming a complex whole. Merriam Webster, define it as ‘A
regularly interacting or interdependent group of items
forming a unified whole.’ Similarly, Oxford Dictionary
Key Words, Definitions and Concepts

define system as ‘A set of things working together as parts of
a mechanism or an interconnecting network; a complex
whole.’ Therefore, a system is an orderly grouping of
interdependent components linked together according to a
plan to achieve a specific unified objective. Based on these
definitions and other relevant discussions, we can establish a
number of characteristics for the formation of a system,
including:
I. System is an organized and orderly set of principles.
It is much easier to see this feature in a more scientific
structure with formulas and data collected than in a
social science structure such as economics. A country
chooses an economic system based on how they
respond to the three basic economic questions of
‘what to produce?’ or consumption (should we
produce more food stuff or electronic stuff); ‘how to
produce?’ or production (should we produce using
more technology or more labour); and ‘for whom to
produce?’ or distribution (should we produce more for
rich people or for more people? In a command
economy (planned economy, Communist system)
government makes all the decisions. In a free-market
economy (capitalist system) the actors or different
agents of the market including consumers and
producers makes all the decisions. However, in reality
all systems are a mixture of command economy and
market intervention. Therefore, all economies
worldwide are mixed economies. There are a number
of guidelines in the Bahá’í Writings in relation to the
three basic questions mentioned above, but not in an
organized and orderly manner. This will be the task of
future experts to study Bahá’í Writings in its totality
for determining the components of a system that will
be fair, universal, and flexible.
Economic and the Bahá’í Faith

II. It is a functionally group of interaction and
interrelated principles, with coordinated method and
unified plan. It refers to the manner in which each
component functions with other components of the
system. Studying the totality of Bahá’í Writings,
Bahá’í teachings on economics will be coordinated
and linked together based on a given unified plan.
There are short term plan and long-term plan for
applying Bahá’í principles. Bahá’u’lláh, has given us
the long-term plan such as equality of women and
men, universal and compulsory education, universal
peace, and many more that are stated in His Writings
and requires a much longer time to achieve them. The
Universal House of Justice provides to the Bahá’í
community the short-term plans, currently known as
Five Year Plan.

III. It is a set of rules that govern and describes structure
and behavior. In the current system of free-market
economy, the assumption is that the market is self-
regulating and can reach equilibrium automatically.
But the fact that there are numerous problems in the
economy, it is an indication that the market is not self-
regulating and does not reach equilibrium
automatically, and thus there is a need for government
intervention. It is still too early to imagine different
components of the structure of an economic system
for a global society.

IV. A system is described by its purpose and objective. A
system should have a central objective. The objective
can be divided into several sub-systems or system-
model to be achieved on a set time-based factor.
Key Words, Definitions and Concepts

Having short-term and long-term plan results in a
smooth process of achieving the central objective. In
the Bahá’í Faith, economics is a means and the central
objective is the prosperity of humankind. Without
discarding the existing economic systems, models and
theories, the suggestion is that the exploration of
Bahá’í teachings on economics would be beneficial to
all.

V. Integration of the components. It refers to the
universality or holistic approach of the system. It is
concerned with how a system is tied together. The
current dominant economic systems do not consider
the well-being of the generality of the population. For
example, capitalism favours the rich capitalists, and
communism favours workers. Where is the place of
more than half of the world's population, farmers, in
these systems? In any alternative model of future
economics, agriculture should play a major role.

Based on the above discussion, the answer to: is there a
Bahá’í economic system, would be both yes and no. No, in
the sense that currently, there is no Bahá’í economic system.
Shoghi Effendi states: ‘Bahá’u’lláh did not bring a complete
system of economics to the world.’ 12 He also said: ‘The
Cause is not an economic system, nor its Founders be
considered technical economists...The contribution of the
Faith to this subject is essentially indirect, as it consists of the
application of spiritual principles to our present-day
economic system.’ Yes, in a sense that there are guidelines in
the Bahá’í Writings to help future economists and experts to
establish the Bahá’í economic system of the future as a part

Shoghi Effendi, Directives from the Guardian, p. 19.
Economic and the Bahá’í Faith

of a new World Order created by Bahá’u’lláh. Shoghi Effendi
states: ‘The International House of Justice will have, in
consultation with economic experts, to assist in the
formulation and evolution of the Bahá’í economic system of
the future.’13 In the Bahá’í Writings, there are references to
sustainable production, distributive justice, sustainable
consumption, and flow of money, as well as elements of
macro-economic such as government participation in the
economy and the role of Bahá’í institutions. In addition, an
economy’s moral and spiritual requirements are emphasised.
The task of an in-depth study of the components of an
economic system is given to future Bahá’í economists. The
study of the Bahá’í sacred scriptures and research carried out
by Bahá’í scholars indicated that the Founders of this Faith
did not construct a Bahá’í economic system. As a result,
throughout this study, the assumption is made that the Bahá’í
Faith is a religion and not an economic system.

Nevertheless, the Central Figures of the Bahá’í Faith have
provided several principles that can be used as guidelines to
help future economists to develop the components of a just,
universal and flexible economic system. Therefore, in any
Bahá’í discourse, researchers are using the phrase ‘Bahá’í
economics’ with much caution, as it is not yet fully
developed. Hence, at this time, Bahá’ís must take care not to
create a separate Bahá’í economic system.

Currently, the Bahá’í community is evolving toward a Bahá’í
economic system. Bahá’ís are engaged in setting the spiritual
foundation of economics of the future. Our economic, as well
as our spiritual life, need to be in balance. Shoghi Effendi
states the importance of spiritual reflection, ‘The primary

Shoghi Effendi, letter dated 10 June 1939.
Key Words, Definitions and Concepts

consideration is the spirit that has to permeate our economic
life, and this will gradually crystallize itself into definite
institutions and principles that will help to bring about an
ideal condition foretold by Bahá’u’lláh.’ 14 The view that
economics is a pure technical science is beginning to change.
In recent times concerns have been raised dealing with
climate change, consumer citizenship and about a sustainable
life style. The Universal House of Justice states, ‘The
solution, then, to prevailing economic difficulties is to be
sought as much in the application of spiritual principles as in
the implementation of scientific methods and approaches.’15

Another factor to be considered is that currently there is no
Bahá’í state and the Bahá’í population is small and scattered
all over the world. Hence, it is too early to envisage how
Bahá’í economic principles will shape and function at a
larger scale in the future. The main priority at this time is the
application of moral and spiritual principles within the Bahá’í
community and to infuse these into the wider society. Bahá’ís
all around the world enthusiastically join and work closely
with any group or organisation that promotes values such as
trustworthiness, truthfulness, justice, kindness, and service to
humanity. These core values enlighten any economic system,
now and in the future.

System-model: It was stated earlier that a system comprises
multiple views, including concepts, rules, principles, analysis,
design, structure, purpose, behavior, time-based factor, and
implementation. A system-model is required to describe and
represent all these multiple views. One can make simplified
representations of the system in order to understand it and to

Shoghi Effendi, Directives, p. 19.
Universal House of Justice, letter dated 2 April 2010 to the Bahá’ís of Iran.
Economic and the Bahá’í Faith

predict or impact its future behavior. For example, ‘the
Bahá’í inspired model of economic sustainability’ in chapter
eight is a conceptual and nonphysical entity developed by the
author of this work. It is also an open system as it has many
interfaces with its environment. The Bahá’í model of
economic sustainability is based on moral incentives and is
developed as a theoretical and simplified representation of
the impact of Bahá’í teachings on human conduct in creating
a more balanced economy. It is vital to note the
interconnectedness of these groupings.

Divine economy: The phrase ‘divine economy’16 is stated in
the Writings of Shoghi Effendi and he associates it with the
World Order of Bahá’u’lláh. The concept has close
connotation with spirituality and hence to the current work.
According to the Universal House of Justice, the concept of
divine economy is not in reference to a particular economic
system but it is referred to a general system of organisation.
‘It appears that the Guardian [Shoghi Effendi] uses the term
divine economy not as a reference to a specific system of
economics, but to something broader and more general.’17 In
this context, the general system of organisation can be
referred to as a holistic society that all parts of it are
interrelated and interconnected, and nothing can be
understood in isolation but as a part of the whole system. In
this work spirituality and the divine economy is placed in the
same grouping because as we will see in other chapters many
features of divine economy are associated with spirituality.

For ‘Divine Economy’, see: Shoghi Effendi, The World Order of Bahá’u’lláh,
Wilmette, IL: Bahá’í Publishing Trust, 2000 [1991], pp. 19-20, p. 22, p. 24, and p.
61.
Universal House of Justice, letter dated 4 June 2013.
Key Words, Definitions and Concepts

2.1.2 Bahá’í community
According to statistics provided by the Bahá’í International
Community, there are more than 5 million Bahá’ís in the
world. The Bahá’í Faith is established in virtually every
country and in many dependent territories and overseas
departments of countries. Bahá’ís reside in well over 100,000
localities. About 2,100 indigenous tribes, races, and ethnic
groups are represented in the Bahá’í community…Of the
several thousand Bahá’í efforts in social and economic
development, more than 900 are large-scale, sustained
projects, including more than 600 schools and over 70
development agencies…The Bahá’í International Community
has been registered with the United Nations as a
nongovernmental organization since 1948. It currently has
consultative status with the United Nations Economic and
Social council (ECOSOC) and the United Nations Children's
Fund (UNICEF), as well as accreditation with the United
Nations Environmental Program (UNEP) and the United
Nations Department of Public Information (DPI). The Baha’i
International Community collaborates with the UN and its
specialized agencies, as well as member states, inter- and
non-governmental organizations, academia, and practitioners.
It has Representative Offices in Addis Ababa, Brussels,
Geneva, Jakarta, and New York…Bahá’í writings and other
literature have been translated into more than 800 languages.
Each year, around one million people visit the Bahá’í Shrine,
terraces, and gardens on Mount Carmel in Haifa, Israel.18

Such a diverse and mixture of people makes the worldwide
Bahá’í community a diverse group. The life of Bahá’ís and
the Bahá’í community is not isolating itself from rest of the
wider society. The community as a part of its commitment of

See: <https://news.bahai.org/media-information/statistics/>
Economic and the Bahá’í Faith

service to humanity, sponsors a large number of small-scale,
grassroots-based social and economic development projects,
which cater for anyone in need, not only Bahá’ís. The various
activities of the Bahá’í community and its involvement in
socio-economic undertakings are discussed throughout this
book.

One of the distinguishing features of the Bahá’í Faith is the
presence of a set of institutions to be in charge of the affairs
of the Bahá’í community at local, national and international
level. Hence, a system of priesthood is replaced with a
system of administrative order. 19 Consequently, after the
passing of Shoghi Effendi, the Guardian of this Faith, the
affairs of the Bahá’í community have been managed through
an administrative order. The system of Bahá’í administration
is regarded by Bahá’ís as divinely ordained. It is
distinguished from other religious or secular forms of
government, as Shoghi Effendi points out:
Bahá’u’lláh has Himself revealed its principles,
established its institutions, appointed the person to
interpret His Word who is ‘Abdu’l-Bahá, and
conferred the necessary authority on the body
designed to supplement and apply His legislative
ordinances, the Universal House of Justice.20

With electoral and consultative principles, the Bahá’í
administrative order operates democratically at the local,
national, and international levels. The election of Bahá’í
Local Spiritual Assemblies takes place each year on 21st
April. The Bahá’í election is theoretically and practically
different from the electoral processes currently practised, in

For an in-depth study of Bahá’í administration see: Hatcher and Martin, The
Bahá’í Faith, pp. 143-153; John Ferraby, All Things Made New, pp. 263-266;
Peter Smith, The Bahá’í Religion, pp. 53-59; Wendi Momen and Moojan Momen,
Understanding the Bahá’í Faith, pp. 115-120.
Shoghi Effendi. World Order of Bahá’u’lláh, p. 145.
Key Words, Definitions and Concepts

that there is an emphasis on spiritual qualities and service
orientation, rather than material gain or power. Bahá’ís are
free to vote for any adult Bahá’í21 who they consider as loyal
and Faithful. Therefore, there is no nomination or canvassing.
Shoghi Effendi states:
The strength and progress of the Bahá’í community
depends upon the election of pure, Faithful and active
souls…Canvassing is deprecated...Bahá’í elections of
the community are…sanctified from all traces of
canvassing and plotting that characterize the activities
of the perfidious.22

The Universal House of Justice is a nine-member body
elected at five-year intervals by the entire membership of the
National Spiritual Assemblies. The Universal House of
Justice consults on issues pertaining to the welfare of the
whole of humanity as well as the affairs of the Bahá’í
communities and guides the Bahá’í world within the
framework of the teachings of Bahá’u’lláh. It was first
instituted in 1963, and its seat is in Haifa – Israel (Bahá’í
World Centre). The Universal House of Justice appointed
‘Bahá’í International Community’ as representative of the
Bahá’í community with International agencies.

A distinction is made between Bahá’í community, Bahá’í
civilisation, and Bahá’í commonwealth. The Bahá’í
community is one that is comprised of registered adult
Bahá’ís and children. The Bahá’í civilisation refers to a
future society where Bahá’í principles are applied, such as
gender equality, universal and compulsory education, and the
practice of Bahá’í consultative method of decision-making.
The Bahá’í commonwealth will be the final stage of the

The age of maturity is 15 for both girls and boys. But, the age of an adult Bahá’í
for the purpose of Bahá’í election is 21.
Shoghi Effendi. Quoted in Lights of Guidance, p. 10.
Economic and the Bahá’í Faith

Administrative Order leading to the promised Golden Age.

2.1.3 Wider society
The statement of the founder of the Bahá’í Faith which states,
‘The earth is but one country and mankind its citizens’23 is
becoming increasingly clear that the world has reduced to a
global village24; and in an ideal sense the village represents
the entire humanity and the Bahá’í community playing its
parts to promote its advancement. However, to consider the
whole globe as one home for the entire human family, it
cannot be achieved in a spiritual vacuum.

Bahá’ís are instructed to adopt a world-embracing vision.
Statements such as ‘Be intent on the betterment of the
world.’25 and ‘The well-being of nations’26 and ‘We desire but
the good of the world and the happiness of the nations,’ 27
clearly indicate that the prophet-founder of the Bahá’í Faith is
concerned about the well-being of the entire society. Hence,
in any discussion on socio-politico-economic issues, the
Bahá’í writers and researchers refer to the global features of
Bahá’í teachings.

Currently the Bahá’í community associates with the wider
society in a number of ways. The Bahá’í International

Bahá’u’lláh. Gleanings from the Writings of Bahá’u’lláh, p. 250.
Marshall McLuhan came up with the phrase ‘the global village’ as a way to
describe the effect of radio in the 1920s in bringing us in faster and more intimate
contact with each other that ever before in human experience. For the full paper
on the ‘global village’ see Eric McLuhan, an online information resource,
retrieved at: <http://projects.chass.utoronto.ca/mcluhan-
studies/v1_iss2/1_2art2.htm>.
Bahá’u’lláh. Cited in Ebenezer Esslemont, Bahá’u’lláh and the New Era,
Wilmette IL: Bahá’í Publishing Trust, 1990, p. 133.
Ibid. Tablets of Bahá’u’lláh: Revealed after the Kitáb-i-Aqdas, translated by
Habib Taherzadeh, Haifa: Bahá’í World Centre Publications, 1978, p. 174.
Ibid. Cited in Shoghi Effendi, Advent of Divine Justice, New Delhi: Bahá’í
Publishing Trust, 1970, p. 31.
Key Words, Definitions and Concepts

Community (BIC) is an independent organization which is
recognised by the UN, and with whom the UN co-operates.
BIC is a non-governmental organisation registered with the
UN as an NGO in 1948. BIC affiliates in over 180 countries
and territories, representing the members of the Bahá’í Faith
worldwide. One of the aims of the BIC is to seek to promote
and apply principles derived from the teachings of the Bahá’í
Faith that contribute to the resolution of the current day
challenges facing humanity. To achieve its purpose, the BIC
interacts with the UN and its specialised agencies,
governments and other NGOs, and has presented papers and
statements at world conferences and meetings of UN bodies
and agencies for a number of years. These include
contributions on such diverse subjects as food, population,
women, international trade, education, health, and the
peaceful utilisation of scarce resources and the environment.
In May 1970, BIC gained consultative status with the United
Nations Economic and Social Council (ECOSOC); in 1976 at
the United Nations Children’s Funds (UNICEF), and in 1989,
developed a working relationship at the World Health
Organization (WHO).28

2.1.4 Analogy of human family
An important analogy that will be used in a number of topics
is the concept of human family. The phrase ‘human family’
in the Bahá’í Writings is used to portray the entire humanity.
It is stated that ‘The world of humanity has been described as
a unit, as one family.’29 Also, it is stated ‘we are all inhabiting
one globe of earth. In reality, we are one family and each one
of us is a member of this family. We must all be in the
greatest happiness and comfort.’30 Hence, just as discipline,

See: <https://www.bic.org/about-us>
‘Abdu’l-Bahá. Promulgation, p. 36.
Ibid. Foundation, p. 41.
Economic and the Bahá’í Faith

organization, cooperation, and association are necessary for
the establishment of family, so should there be similar
discipline and procedures for the establishment and
advancement of society.

But what is a family model? The family model is a small unit.
Partnership is one of the features of family model. This is an
approach based upon an explicit model of caring and helping
process. It demonstrates how a partnership, enable parents
and children to overcome their difficulties, build strengths
and resilience and fulfill their goals more effectively.

Thus, the analogy of family is useful in a number of
discussions in this book including the view on globalization,
in clarifying the concept of economic sustainability, and in
discussing human, capital and financial interdependency. The
Bahá’í Writings affirm that ‘The family unit offers an ideal
setting within which can be shaped those moral attributes that
contribute to an appropriate view of material wealth and its
utilization.’31 According to Loudon and Bitta ‘The concept of
family or household life cycle has proven very valuable for
the marketers, especially for segmentation activities.’32 This
analogy is useful in discussing distributive justice.

The use of the analogy of the family in economic activities is
helpful, given the similarities between the features and
structure of a family and those of economics. For example,
partnership is one of the features of family. This is an
approach based on an explicit concept of a caring and helping
process. It demonstrates how a partnership enables parents

Universal House of Justice. ‘Statement addressed to the Bahá’ís of Iran,’ 2
April 2010, The UK Bahá’í News, May 2010.
David Loudon, and Albert Della Bitta. Consumer Behaviour: Concepts and
Applications, 4th ed., London: MaGraw-Hill International Edition, 1993, p. 223.
Key Words, Definitions and Concepts

and children to overcome their difficulties, build strengths
and resilience and fulfill their goals more effectively. The
success of the family as a socio-economic unit would be
based on a bond of love and unity and concern for the other;
so, should be the success of the economic operations in the
market. The integrity of the family is based on mutual love,
trust, service to others and sacrifices for one another. These
qualities are essential for the family to succeed, otherwise the
family would become dysfunctional and chaotic and will
break apart. A family that applies the principles of love, trust,
service and sacrifice can cater for the varied needs of each
individual in the family, even with limited resources. In the
family unit, the idea of division of labour applies too, where
each member has a different but complementary function.
Thus, the analogy of family is the pivot of all economic re-
ciprocal relationships leading to activities of production, dis-
tribution and consumption, be it between the members of the
same family, between families or between communities,
local, national and international. This is where we see a
logical connection between moral principles and economics.

There are however challenges when discussing the analogy of
family. According to Wesley Burr, Loren Marks and Randal
Day:
Most people do not need to be encouraged to be
interested in their own welfare. This seems to come
rather naturally to most humans, whereas being
concerned about others does not seem to come as
naturally. The idea that the welfare of others is
important is acquired only when people learn it as a
part of their ideology or philosophy of life, and people
need to be relatively mature to grasp this idea. 33

Wesley Burr, Loren Marks and Randal Day. Sacred Matters: Religion and
Spirituality in Families, London: Taylor and Francis group, 2012, p. 112.
Economic and the Bahá’í Faith

Most people are altruistic by nature and have a certain level
of empathy and understanding to help others. To form a
family, for example, couples enter into an agreement or
covenant with each other whereby they concentrate on
helping and supporting each other and their children. The
same applies to the human family whereby we use all our
resources to produce goods and services that benefit all its
members through a justified exchange mechanism, which is
based on altruistic nature. However, the features and
functioning of a modern family are complex and it may not
be so easy to use it as an analogy for contemporary economic
issues. The application of the analogy would be more
practical in smaller communities and in small-scale
operations.

However, the structure of a modern family is much more
complex with variety of functions. Apart from financial
capital as a function of a unit of family, Charles Collier
identifies three other functions:
There is more to family wealth than the financial
dimension. Human capital refers to who individual
family members are, and what they are called to do;
intellectual capital refers to how family members
learn and govern themselves; social capital denotes
how family members engage with society at large; and
financial capital stands for the property of the
family.34

Therefore, the key to the financial success of the family
depends on how well the other three functions are performed.
From a Bahá’í perspective the four functions of a family unit
are all influenced by one’s moral and spiritual compass.
Consequently, in this study, spiritual capital is added to the
above principles suggested by Charles Collier. The idea is

Charles Collier. Wealth in Families, Harvard University Press, 2006, p. 34.
Key Words, Definitions and Concepts

that if the moral and spiritual principles are effectively
working within the unit of the family, then those values
become a norm, a cultural phenomenon, and a way of life in
the entire community.

Within the Bahá’í community, much importance is placed on
strengthening the concept of family and its relationship with
those outside of the family unit. Moral education and better
understanding of the significance of marriage and family life
helps pave the way. Morality is an essential part of the
Bahá’í culture, which defines the relationship between an
individual and the whole society. Bahá’í parents and the
Bahá’í community endeavour to teach moral values to
children. As a result, those values become an intrinsic part of
the individual and the life of the society. Thus, it becomes
natural for a Bahá’í to respect and care for fellow human
beings and the creation of a new generation. The Bahá’í
community is in a dynamic state of transformation with a
culture of learning. This approach promotes the positive
transformation of individuals and families into a new
generation. However, it depends how this community adjust
itself with the challenges of the larger society they are living
in it.

2.1.5 The concept of spirituality
The word ‘spiritual’ or ‘spirituality’ constitutes an important
and inseparable part of all Faiths including the Bahá’í Faith
and hence it has much relevance to Bahá’í discourse. In any
discussion about Bahá’í teachings spirituality plays a central
role. Nevertheless, the word spiritual has been associated
with a multitude of meanings, religious and non-religious.
There is an agreement among all of the major religious
systems that there is a non-observable spiritual reality above
and beyond material reality. Bahá’í scholar, philosopher and
Economic and the Bahá’í Faith

mathematician, William Hatcher (1935-2005) maintains the
view that ‘Spiritual dimension of existence is more
fundamental and more real than the material, and that the
basic task of human existence lies in learning how to relate
properly to spiritual reality.’35 Although the terms spirituality
and religion are commonly used interchangeably, it is
important to note that the term spirituality refers to the higher
nature of human beings, which Bahá’ís believe is innate in
human being, however, it need to be developed.

There is no precise agreement between theologians and social
scientists, including economists, about the precise meaning of
topics that have some relevance to the notion of spirituality,
such as justice and trustworthiness. Some economists, such as
Karl Marx, keep their distance from phrases such as ‘divine
economy,’ ‘spiritual enterprise,’ ‘eco-justice,’ and ‘spiritual
economics.’ Bahá’í scholar and academic economist Farhad
Rassekh has made a distinction between ‘anti-religion
thinkers like Karl Marx and those who do not see a role for
religion in economics.’ 36 Rassekh argues that there is a
difference between religion and spirituality:
It is quite common for a lot of people to consider
themselves spiritual but have no religious affiliation
and actually see religion as a negative force. Thus,
some economists rather keep religion out of their
work even if they believe in God. As a result, as far as
their research and Writings are concerned, they can be
safely placed in the category of secular thinkers.37

A number of researchers investigating spirituality have found
that spirituality is broader than the concept of religion.
Educational psychologist, Douglas McDonald’s investigation

William Hatcher. Retrieved: <http://william.hatcher.org/license>.
Farhad Rassekh. Electronic correspondence, 10 May 2013.
Ibid.
Key Words, Definitions and Concepts

of existing literatures has found that spirituality can be
viewed as a separate and identifiable concept that is broader
than the notion of religion. He stated that ‘Spirituality is a
complex yet identifiable construct that includes but extends
beyond religion.’38 Another educational specialist, Kirsi Tirri
maintains that ‘spirituality must be seen as a wider concept
than religion.’ 39 Theologian and senior researcher in
spirituality David Hay’s view is that ‘Surely the
unquestionable assumption that spirituality refers only to
religion cannot be right.’ 40 Hay refers to a new way of
thinking about spirituality that ‘will help us to get beyond the
religious/secular or believer/sceptic split.’ 41 Humanistic
psychologist, Abraham Maslow suggests that it is useful to
differentiate the subject of ‘spirituality’ from ‘conventional
and organised religions’ 42 Theologian, Joseph Priestley, has
identified six factors that characterise spirituality and
maintains that spirituality is: ‘broader than religion’,
‘dynamic’, ‘being and becoming’, ‘other worldly’,
‘communal’, and ‘holistic’ in nature. 43 Brendan Hyde
proposes that ‘spiritualty existed long before the evolution of
religion.’ 44 Social psychologist, Diarmuid O’Murchu
illustrates that historically spiritual experiences can be traced
as far back as 70,000 years ago. In contrast, he argues that

Douglas McDonald. Spirituality: Description, Measurment, and Relation to the
Five Factor Model of Personality, 2000, page 192.
Kirsi Tirri. Cross-cultural study of preadolescents’ moral, religious and spiritual
questions. British Journal of Religious Education, 2005, 27(3), pp. 207-214,
David Hay. Something There: The Biology of The Human Spirit, London:
Darton - Longman, 2006, p. 28.
Ibid. p. 34.
Ibid.
Joseph Priestley. Spirituality, Curriculum and Education. International Journal
of Children’s Education, 1997, pp. 29-31.
Brendan Hyde. The plausibility of spiritual intelligence: spiritual experience,
problem solving and neural sites. International Journal of Children’s Spirituality,
2004, 9(1), pp.30-40.
Economic and the Bahá’í Faith

most organised religions have only existed for 4500 years.45
O’Murchu further claims that ‘humans have been exploring
spiritual meaning from time immemorial, while formal
religion is a very recent visitor of planet earth.’46 Similarly,
experts in education and spirituality, Carol Johnson and Chris
Boyatzis argue that ‘human spiritual activity first appeared in
human historical record with evidence of ritualised burial
practices 40,000 years ago.’47 Researchers in spirituality and
social scientists, Donald Ratcliffe and Rebecca Nye also
agree that ‘spiritual experiences…exist among all ethnic and
cultural groups…throughout all of human history.’48 Political
scientists, Nancy Bancroft insists that spirituality does not
need to become affiliated to a religion. She offers, for
example, Marxist version of spirituality, constructing it on
the basis of Marx’s term ‘species being’ which refers to the
deepest centre or spirit of humankind as a collective.
Referring to ‘species being’ she writes:
The term asserts that there is no division between
individual and society: human means precisely
social…we complete our individual and species
character only by social interaction over time…
species being in its full sense cannot obtain until we
have eliminated class and ended every kind of social
division.49

These various views of researchers suggest that spirituality
and religion are separate yet related concepts. The Bahá’í

O’Murchu, Quantum Theology: Spiritual Implications of the New Physics.
(ED.), An Introduction to the Study of Education, London: David Fulton
Publishers, 2004, pp12-13.
Ibid.
Carol Johnson, Chris Boyatzis. Cognitive – Cultural Foundation of Spiritual
Development. The Handbook of Spiritual Development in Childhood and
Adolescence. California: Sage Publication Inc. 2006, pp. 211-223, at p. 212.
Donald Ratcliffe, & Rebecca Nye. Childhood Spirituality: Strengthening the
Research Foundation. The Handbook of Spiritual Development in Childhood and
Adolescence, pp. 480-481.
Nancy Bancroft. In David Hay, Something There, P. 29.
Key Words, Definitions and Concepts

understanding is that religion is the source of spirituality. The
Bahá’í view is that religion can play an important role in
changing human attitudes and behaviour towards the life.
Religion, the Bahá'í scriptures states, ‘is the source of
illumination, the cause of development and the animating
impulse of all human advancement.’50 and ‘has been the basis
of all civilisation and progress in the history of mankind.’51

Bahá’í and non-Bahá’í scholars agree with some aspects of
defining spirituality and have attempted to reconcile the
opinion differences of theologians and social scientists and
secular thinkers in understanding the concept of spirituality.
Hatcher, for example, defines spirituality as: ‘The process of
the full, adequate, proper, and harmonious development of
one’s…capacities.’ 52 David Hay argues that ‘whilst pinning
spirituality down to an agreed definition seemed impossible,
social scientists are able to recognise it when they come face
to face with it as a unifying factor.’53 Both Hay and Hatcher
are referring to the harmonious function and the higher nature
of human being, which social scientists become aware of
when they face difficulties. The Bahá’í view is that all
humans are endowed with a higher nature but it needs to be
nurtured and developed. For example, ‘Abdu’l-Bahá refers to
the ‘higher nature of human being [as] all-unifying agency.’54
It is this ‘all-unifying’ function of spirituality that helps to
resolve socio-politico-economic problems when we come
face to face with them. The belief in the ‘higher nature of
human being’ inspires individuals to act justly towards

‘Abdu’l-Bahá, Promulgation, p.361.
Ibid.
William Hatcher. ‘The Concept of Spirituality,’ Bahá’í World Journal, vol. 18,
1986, 1979-1983, p. 935.
Ibid. p. 28.
‘Abdu’l-Bahá. Tablet to August Forel: For the Good of Mankind, John Paul
Vader (ed.), Oxford: George Ronald, 1984, p. 73.
Economic and the Bahá’í Faith

others. This can have great application in economics in areas
such as wealth redistribution, poverty reduction, taking care
of the precious resources, and issues related to the
environment. The belief in the ‘higher nature of human
being’ has also close correlation with the purpose of life. The
purpose of life is not simply satisfaction of one’s own needs
and enjoyment of material pleasures, but also involves
service to one’s community and the wider society.

In order to reconcile the viewpoints of theologians, social
scientists and secular thinkers, and having been inspired by
the Bahá’í Writings, I attempted to develop a working
definition of ‘spirituality’ for use in this book. Although there
is so much diversity of opinions about the concept of
spirituality, making a definition is a difficult task, there are
also a number of commonalities in this vast body of
scholarship that support the creation of a definition to satisfy
different groups. This definition not only includes the
material side of life but also the higher nature of human
beings represented by qualities such as justice,
trustworthiness, compassion and honesty. Thus, the following
definition of the author of this work attempts to resolve
conflicts and divisions, and is concerned with the ultimate
purpose of life: Spirituality is defined as the all-unifying
agency for developing and interconnecting our life with the
material world, with other people, with our natural
environment, and with the future generation, beyond our
human limitations. This working definition of spirituality will
be used throughout this work. This definition is supported by
a number of elements suggested by other writers. For
example, it agrees with David Hay’s interpretation of
spirituality as a unifying factor. Hence, recognising the
harmonious function of spirituality, social scientists become
aware of it when they attempt at resolving conflicts and
Key Words, Definitions and Concepts

divisions. A number of researchers have described spirituality
as ‘relational’ in nature. Transcendence may be characterised
as one’s relationship with forces outside of self; and hence
one can discover meaning, purpose and connections with
other people, nature, and the future generation. The
application of the concepts of spirituality as ‘unifying’ and
‘relational’ factors is applied in the Bahá’í inspired model of
economic sustainability developed by the author of this work
(see chapter 8).

Spirituality, based on suggested working definition is a
process and requires a person to work towards acquiring it.
Spiritual development and acquiring spiritual qualities by
individuals require a life of learning and action and focuses
on human behaviours. Individuals, then, does actually
highlight that collectively, they tend to be greater contributors
to the whole society. The interpretation and understanding of
spirituality as a relational concept helping Bahá’ís and the
Bahá’í community in appreciating the principle of ‘work’
(see chapter 3) and for undertaking social and economic
development programs in rural areas of developing countries
(see chapter 7). A Bahá’í, for example, develops spiritually
through community service, by considering work as worship,
doing humanitarian activities, and effectively trying one’s
utmost to be a productive member of society both socially
and economically. Spirituality is, therefore, concerned with
some important objective of the life, which requires a
discussion on the process of how to attain it, otherwise its
worth and application would be challenged. Based on the
working definition and its features of unifying and relational,
then alternative interpretation of spirituality is possible for
establishing social justice and satisfying social scientists.

Economic and the Bahá’í Faith

Hence, terms such as ‘ecosystem’ 55 and ‘ecojustice’ 56 and
‘eco-wellbeing’ 57 are suggested as a method of achieving
socio-politico-economic objectives.

The suggested definition also helps the process of social
transformation from individual core values to affect the wider
society. The acquisition of spiritual qualities and moral
behaviour is what the Bahá’í Faith has in common with all
other religions. While this is true, Farzam Arbab has argued
that in the Bahá’í Faith the goal of religious practice is shifted
from individual salvation to the collective progress of the
entire human race, and this is reflected in the Bahá’í
teachings. The emphasis is on the qualities that must be
acquired by each Bahá’í. Arbab then discusses a number of
individual core values that affecting the wider society. For
example, while charity, so essential to Christian theology is
still highly praised, justice is given a far more central place.
In the same way, while tolerance is recommended, those
attitudes that lead to unity and human solidarity are more
appreciated. Some other values that affect the wider society
and are discussed by Arbab include:
Love includes the abolition of all social prejudices and
the realisation of the beauty of diversity in the human
race. Detachment from the world is not taught in a
way that leads to idleness and to the acceptance of
oppression; it is acquired to free us from our own
material interests in order to dictate ourselves to the
well-being of others. To this expansion of the
meaning of almost all qualities is also added a
constant endeavour to acquire social skills, to

The term ‘ecosystem’ was first used in 1935 in a publication by British
ecologist Arthur Tansley.
The term suggested as early as 1970. It is defined as the condition or principle
of being just or equitable with respect to ecological sustainability and protection
of the environment, as well as social and economic issues.
Also, see: < https://www.lexico.com/definition/eco-justice>
This term is suggested by the author of this work.
Key Words, Definitions and Concepts

participate in meetings of consultation, to work in
groups, to express opinions with fairness and clarity,
to understand the points of view of others, to reach
and carry out collective decisions. Thus, the path of
spiritualisation should not be confused with one that
defines goodness passively and produce a human
being whose greatest virtue is not to harm anyone; it is
a path to create social activities and agents of
change.58

Thus, spirituality, based on the suggested definition is a
process and requires a life of learning and action for a person
to become a productive member of society. At individual
level, humans are capable of demonstrating core values.
According to the Bahá’í view, humans are not only distinct
from the rest of creation, but at its apex, distinct and
distinguished from all else, as stated in the Genesis 1,27:
‘God hath created all humankind in his own image, and after
his own likeness.’59 Created in the image and likeness of God
means that whereas all other created things reflect one or
more of the signs or qualities of God, the human being is
empowered and given the capability, opportunity, facility and
guidance to reflect all the qualities of God. Many of those
attributes that befit the dignity of God are referred to in the
Bahá’í Writings, including forbearance, compassion, mercy,
and loving-kindness towards all the peoples of the world. Re-
flecting upon the attributes of God means that in our daily
lives, we can demonstrate and promote praiseworthy acts,
which are the force behind all advancement and progress in a
global society.

Farzam Arbab. ‘The Process of Social Transformation,’ Journal of Baha’i
Studies Review, pp. 9-20, at p 11, 1987.
Bahá’u’lláh, quoted in Lights of Guidance, compiled by Helen Hornby, New
Delhi: Bahá’í Publishing Trust, 1988, p. 612.
Economic and the Bahá’í Faith

2.2 A brief account of economic condition of Iran at
the time of Bahá’u’lláh
The founder of the Bahá’í Faith, Mirza Ḥusayn-‘Alí-i-Núrí
known as Bahá’u’lláh, meaning the ‘Glory of God’ 60 is
regarded by Bahá’ís as the most recent in the line of
messengers of God. The word Bahá'í is derived from Arabic,
it is the name of the religion and refers to followers of
Bahá’u’lláh. Bahá’u’lláh was born in Persia (Iran) on
November 12, 1817. He was the son Mirza Buzurg, ‘a
distinguished nobleman who held a high-ranking position in
the court of the Persian King.’61 Therefore, Bahá’u’lláh was
grew up in an affluent and comfortable household and was
expected to take on the responsibilities of His father as a
minister after he passed away. This position He declined.
Along with His family and many of His followers He was
repeatedly banished within the Ottoman Empire, until finally
He was sent to the prison city of Acre where he remained
until His passing on 29 May 1892. He is buried in Bahji in
Acre and His shrine is considered the most sacred place of
pilgrimage for Bahá’ís around the world.

The economic structure of Iran during the Qajar period
(1785-1925), when Bahá’u’lláh declared His mission was in
widespread deterioration. The socio-economic condition of
Iran during this period illustrated the key features of a failing
economy and was disintegrated under the stress of political
anarchy. Several decades of external invasions, internal strife,
and endemic lawlessness had brought widespread decay and
decline to this country. According to historian Charles Issawi
in terms of the basic economic structure ‘Persia depicted the

For an in-depth study of the title Bahá’u’lláh see: Stephen Lambden, ‘The Word
Bahá: Quintessence of the Greatest Name’, Association for Bahá’í Studies
English - Speaking Europe, Bahá’í Studies Review, 1993, 3:1.
Also, see Ruhi book 4.
Key Words, Definitions and Concepts

key features of a backward economy.’ 62 Also, historian
Ervand Abrahamian highlighted three sets of issues as factors
that contributed to the economic backwardness and disruption
of economic life of people during Qajar period:
First the absence of an administrative elite or tradition
that could help oversee the process of change and
development; second ‘the strains that were placed on
the country’s irrigation system when there occurred a
reduction in the cultivating population of certain
areas; and finally, the under realization of the
agricultural potential that emanated from the survival
of pastoral nomadism over large parts of the country.63

It was during the early part of the 19th century that
‘commercial activity and relative economic prosperity
returned to Iran.’64

Abrahamian was the first to examine the appalling social and
economic condition of Iran during Qajár period. For example,
in regard to the balance of trade, Abrahamian cites some
interesting evidence for the period 1830-1880. The figures he
provides demonstrate a large deficit in Iran. In the analysis of
socio-economic condition of Iran during the period 1800-
1850, Abrahamian writes:
Such massive and continuing deficits meant, in
practical terms, a considerable drain of gold and silver
from the country…Progressive debasement of the
coinage and other factors led to an inflation rate of
between 70 and 150 percent in the period from 1843
to 1861, with some important commodities such as
wheat and barley tripling in price…Apart from the
purely economic consequences of the trade with
Europe, there was also the social disruption caused by

Charles Issawi. An Economic History of the Middle East and North Africa,
London, 1982, p. 71.
Ervand Abrahamian. ‘Oriental Despotism: The Case of Qajar Iran,’ The
International Journal of Middle East Studies, vol. 5, no. 1, 1974, pp. 3-31, at p. 3.
Ervand Abrahamian. The International Journal of Middle East Studies, p. 5.
Economic and the Bahá’í Faith

the import of European manufactured goods leading
to the decline and even death of many traditional local
industries.65

Consequently, Iran was virtually bankrupt and its central
government was weak. The acute socio-economic-political
condition of Iran and the rest of the world during the period
of Qajar can be perceived from the Bahá’í Writings.
Bahá’u’lláh states, ‘The winds of despair are, alas, blowing
from every direction, and the strife that divideth and afflicteth
the human race is daily increasing.’ 66 ‘Abdu’l-Bahá said,
‘Today no state in the world is in a condition of peace or
tranquillity, for security and trust have vanished from among
the people. Both the governed and the governors are alike in
danger.’67 Shoghi Effendi also describes the condition of the
world as ‘spiritually destitute, morally bankrupt, politically
disrupted, socially convulsed, economically paralyzed.’ 68
Bahá’u’lláh, has explored the subject of civilisation in
reference to the West (Europe and North America). For
example, He has praised the West in a number of areas such
as democracy and progress in the scientific fields and has
criticised it in areas such as manufacturing of armaments,
consumerism and decline in morality.69

Moojan Momen. ‘The Social Basis of the Bábi Upheavals in Iran (1848-53): A
Preliminary Analysis,’ International Journal of Middle East Study, no. 15, 1983,
pp. 157-183, at 159.
Bahá’u’lláh. Tablets of Bahá’u’lláh Revealed after the Kitáb-i-Aqdas, translated
by Habib Taherzadeh, Haifa: Bahá’í World Centre Publications, 1978., p. 171.
‘Abdu’l-Bahá. Selections from the Writings of ‘Abdu’l-Bahá, compiled by
Research Department of the Universal House of Justice, translated by a committee
at the Bahá’í World Centre and Marzieh Gail, Haifa: Bahá’í World Centre
Publications, 1987, p. 293.
Shoghi Effendi. Promised Day is Come, Wilmette IL: Bahá’í Publishing Trust,
1980, p. 16.
Shapoor Rassekh. Dunya Niyazmand-I Yik Tamaddun-I Jahani Ast (Author’s
own translation from Persian: The world needs a global civilisation). Madrid:
Foundation Nehal, 2010, p. 169.
Key Words, Definitions and Concepts

Chapter 3: Sustainable Production

O people of Bahá! It is incumbent upon each one
of you to engage in some occupation - such as a
craft, a trade or the like. We have exalted your
engagement in such work to the rank of worship
of the one true God.1 Bahá’u’lláh

3.1 Introduction
Engagement in ‘Work’ is a fundamental part of human life
and is the subject of comment in the academy of economics,
as well as an important Bahá’í teaching and greatly
emphasised in the Bahá’í literatures. For a Bahá’í, ‘work’
done in a spirit of service is considered as worship. The
Bahá’í Writings recognise the essential need for cooperation
and interdependence between human beings and engaging in
some kind of work is a means for achieving it. One of the key
features of Bahá’í teachings on economics is the keen interest
shown to one’s productive contribution to society in a
sustainable manner. The concept of Bahá’í work ethics
includes obtaining social skills to become
reliable and resourceful in the work setting. The purpose of
this chapter is to explore selected Bahá’í teachings in relation
to work ethics and how they support and influence increasing
the supply of the workforce in the labour market. Hence, this
chapter addresses the question of how the principles of

Bahá’u’lláh. The Kitáb-i-Aqdas, verse 33. (In The Kitáb-i-Aqdas, the term
‘verse’ is referred to the Writings of Bahá’u’lláh only, and the term ‘note’ is
referred to clarification of certain verses which could be from other sources such
as from the Writings of ‘Abdu’l-Bahá, Shoghi Effendi or the Universal House of
Justice.)
Economics and the Bahá’í Faith

Bahá’í work ethics influence individuals to become
productive members of society and develop a sustainable
lifestyle.

3.2 A brief historical perspective of work ethics
Although the subject of ‘work ethics’, and in particular the
aspect of ‘work as worship’, is a distinctive principle in
Bahá’í literature, the concept has been expressed by others
and stated in various Faiths’ scriptures. However, the
emphasis here is on the Bahá’í literatures and related
scholarly materials.

From a historical perspective, according to specialised in
technology education Roger Hill:
work, for much of the ancient history of the human
race, has been hard and degrading. The cultural norm
placing a positive moral value on doing a good job
because work has intrinsic value for its own sake, is a
relatively recent development.2

Hill then refers to the significant role of the Protestant in
accepting physical labour and writes: ‘It was not until the
Protestant Reformation that physical labour became
culturally acceptable for all persons, even the wealthy.’ 3
Attitudes towards work during the classical period were
degrading too. According to Michael Rose:
The cultural norms allowed free men to pursue
warfare, large-scale commerce, and the arts, especially
architecture. Skilled crafts were accepted and
recognized as having some social value but were not
regarded as an appropriate work for slaves. Manual
labour was for slaves.4

Roger Hill. ‘The History of Work Ethic,’ retrieved:
<http://rhill.coe.uga.edu/workethic/hist.htm>.
Ibid.
Michael Rose. Reworking the Work Ethic: Economic Values and Socio-Cultural
Sustainable Production

For the Romans, work was to be done by slaves and,
according to Maywood ‘only two occupations were suitable
for a free man - agriculture and big business. A goal of these
endeavours was to achieve an honourable retirement into
rural peace as a country gentleman.’5 Attitudes toward work
during the Medieval Period began with the fall of the Roman
Empire. During this time, Christian thought dominated the
culture of Europe. The attitudes toward work during
Protestantism, which became a part of the culture during the
sixteenth century, and the economic value system which they
nurtured, represented a significant change from medieval and
classical ways of thinking about work.

Two key religious leaders who influenced the development of
western culture and Protestant reformation during the end of
Medieval Period were Martin Luther (1483 –1546) and John
Calvin (1509 –1564). Luther believed that people could serve
God through their work, that the professions were useful, that
work was the universal base of society and the cause of
differing social classes. Luther regarded the monastic and
contemplative life, held up as the ideal during the Middle
Ages, as an egotistic and unaffectionate exercise on the part
of the monks, and he accused them of evading their duty to
their neighbours.6 Calvin taught that all men must work, even
the rich, because to work was the will of God. The belief was
that each person should earn an income that would meet his
basic needs, but to accumulate wealth was sinful. The
Protestant ethic that gave moral consent to profit making

Politics, London: Schocken, 1985, p. 18.
Maywood, A. G. ‘Vocational Education and the Work Ethic,’ Journal of
Vocational Education and the Work Ethic in a Changing Workplace, no. 78, 1982,
pp. 7-12, at p. 9.
For an in-depth discussion of the concept of ‘work’ from Luther and Calvin
perspective see: Adriano Tilgher. Homo Faber: Work Through the Ages.
Translated by D. C. Fisher. New York: Harcourt Brace, 1930.
Economics and the Bahá’í Faith

through hard work and organization, spread throughout
Europe and America. This brought the rise of capitalism. In
the emerging capitalist system, according to Hill, work was
good. Work satisfied the economic interests of an increasing
number of small businessmen and it became a social duty and
a norm.

In a discussion about changing attitudes toward work,
Maywood refers to the ‘Protestant work ethic’ as the view
that humans have a moral duty to work diligently, regardless
of their station in life, and that by doing so they can reap
societal regard and the personal reward of knowing that a job
has been well done. 7 This Protestant work ethic has,
according to Maywood, reformed the traditional approach of
work. Max Weber in his The Protestant Ethics and the Spirit
of Capitalism, written in 1904-05, first coined the term
‘Protestant Ethic’. The common notion between the Weber
and the Bahá’í view is to reconceptualise the worldly work as
a duty that benefits both the individual and the wider society.
Therefore, the Bahá’í and Protestant idea of ‘work’ is
elevated from purely monetary value to manifest signs of
morality and spirituality.

Two of the most famous economists in the classical economy
were Adam Smith, with his free-market economy, and Karl
Marx, with the notion of socialism. Capitalism came under
attack by Karl Marx. Marx believed that under the Capitalist
economic system, workers were dehumanized and exploited.
He claimed that the new industrial system required workers
who would accept long hours and poor working conditions.
He believed that as people laboured for long hours every day,

Maywood A. G. Journal of Vocational Education and the Work Ethic in a
Changing Workplace, p. 13.
Sustainable Production

they became alienated. Marx distinguishes one class from
another on the basis of two criteria: ownership of the means
of production, and control of the labour power, thereby
believing that society has two distinct classes: I) Capitalists,
or bourgeoisie, who own the means of production and
purchase the labour power of others; and II) Workers, who do
not own any means of production. Hence, for Marx there is a
conflict between labour and capital.

The Bahá’í view is that labour and capital are not in conflict,
rather they are interdependent and complement each other.8
For example, in the Writings of ‘Abdu’l-Bahá it is stated that
capitalists may earn much more than labourer, thus
recommending progressive taxation as a method to moderate
the inequality.9 Moreover, ‘Abdu’l-Bahá appeals to the self-
interest of the capitalists and suggests profit sharing as a
method of enhancing labour productivity.10 It will be to the
advantage of capitalists to share their profit because workers
would exert more effort. Hence, workers become partners in
an industry, and apart from a wage, they receive a portion of
the profit. 11 These methods eliminate the concept of
alienation expressed by Marx. ‘Abdu’l-Bahá states, ‘If it be
right for a capitalist to possess a large fortune, it is equally
just that his workman should have a sufficient means of
existence.’12 In addition, the Bahá’í work ethics support the
economic view that a skill, such as acquisition of useful arts,
sciences and commerce, are essential for improving
performance and hence receiving pay according to
performance. ‘Wage differentials’ and ‘pay according to

See: Shoghi Effendi, World Order of Bahá’u’lláh, pp. 40-41.
See: ‘Abdu’l-Bahá. Promulgation of Universal Peace, p. 217.
See: ‘Abdu’l-Bahá. Some Answered Questions, pp. 315-320.
Ibid.
‘Abdu’l-Bahá. Paris Talks, 12th ed., London: Bahá’í Publishing Trust, 1995, p.
156.
Economics and the Bahá’í Faith

performance’ and ‘piece work’ are the requirements for
wealth creation and are features of free-market economy or
democratic capitalism. The following writings of Shoghi
Effendi clarifies Bahá’í views on capitalism and the free-
market economy: The current form of free-market economy
needs to be ‘controlled, regulated, and even restricted.’ 13
‘Bahá’í economic system would…prevents among others the
gradual control of wealth in the hands of a few and the
resulting state of both extremes, wealth and poverty.’14 ‘There
is nothing in the teachings against some kind of capitalism,
its present form, though, would require adjustments to be
made.’15 ‘In the Bahá’í economic system of the future, private
ownership will be retained, but will be controlled, regulated
and even restricted.’16

But, is there a realistic and practical alternative to the current
free-market economy? The answer, according to academic
economist Richard Lipsey, is both yes and no. No, because
the modern economy has no practical alternative to reliance
on market determination for most of its functions; but yes,
because a market economy cannot deliver all the outcome we
generally desire without some role for interventions by
government.17

Though the ideas of Marx do not seem applicable to modern
day situations, looking back at Marx’s lifetime, one realises
that the conditions differed greatly from those of present

Shoghi Effendi. From a letter dated 25 August 1939 written on behalf of Shoghi
Effendi as transcribed by the recipient of this letter in a manuscript he prepared, a
copy of which is held at the Bahá’í World Centre.
Shoghi Effendi. Letter dated 28 October 1927.
Shoghi Effendi. Directives from the Guardian, p. 19.
From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi as
transcribed by the recipient of this letter in a manuscript he prepared, a copy of
which is held at the Bahá’í World Centre.
Richard Lipsey. Economics, Oxford: Oxford University Press, 2007, p. 12.
Sustainable Production

time. As Colin Leys, has argued, the change of conditions
began long before, Leys writes:
In 1870s two things, had already happened to alter
Marx’s vision. First, the working class in Western
Europe was increasingly becoming organist in
parliamentary political parties and gradually became
reformist, not transformist; and second, capitalism had
become a worldwide phenomenon affecting many
countries in which the working class was still a small
minority.18

Moreover, today, the labour market as a part of the free-
market economy has been regulated and changed
significantly in favour of workers compared to the time of
Marx. For example, many governments have passed several
laws to protect the rights of workers. Also, one of the major
responsibilities of trade unions is to take care of their
members, including wage negotiation, providing good
working conditions, and offering health and safety and
training programs. Likewise, owners and managers of
companies demonstrate greater interest in improving the
working conditions to motivate the workforce. Although, the
reasons are probably profit driven. The realisation is that such
improvements increase labour productivity and thus result in
greater returns for the organization. Therefore, it can be
argued that a combination of factors, including the effective
role of government and information and technology, have led
to a significant transformation in the meaning of the work
ethic. Jobs provided opportunities for greater self-expression
by workers and people began to find more self-fulfilment in
their work.

Colin Leys. ‘Marxism: Yesterday and Today - The Bahá’í Faith and Marxism,
Journal of Bahá’í Studies, January 1986, pp. 43-49 at p. 43.
Economics and the Bahá’í Faith

3.3 Sustainable production
Production plays a major role in all aspects of economic
activities. For the purpose of this discussion, a working
definition for sustainable production is developed as follows:
production is the act of effective utilisation of tangible and
intangible resources, through an efficient conversion process,
to produce those goods and services that are befitting human
nobility, 19 protecting the environment and respecting future
generations. This definition is in line with Bahá’í
understanding of sustainable production. Although the phrase
‘sustainable production’ does not appear in the primary
Bahá’í Writings, the requirements for producing commodities
that are sustainable are mentioned. The first part of the above
working definition, which is the act of effective utilisation of
tangible resources, is supported by economic theory; and the
second part by the Bahá’í Writings. The economic theory, by
both classical and neo-classical, considers land, labour and
capital as ‘tangible’ resources. Moral incentives, as
‘intangible’ resources are desirable to add value to an
organization. Both tangible and intangible factors are
recommended for increasing production in a sustainable way.

To increase the level of production in a sustainable way, there
is a need for skilled workers and advanced technology, both
of which are endorsed in the Bahá’í Writings. The progress of
advanced technology, however, changes the kinds of skills
needed, and would not stop people from acquiring knowledge
and skills. Shoghi Effendi’s view is that, ‘the progress of
machinery has not made effort unnecessary. It has given it a
new form, a new outlet.’20 The decision as to what kind of

Bahá’u’lláh said. ‘Noble have I created thee…’ (Bahá’u’lláh, Arabic Hidden
Words, no. 22) the word noble in the Bahá’í literatures denotes the quality of
being noble in character such as honesty, trustworthiness and truthfulness.
Shoghi Effendi. Letter dated 26 December 1935.
Sustainable Production

technology should be used is often a difficult one,
particularly in developing countries. It involves careful
consideration of cost estimates for all the inputs for each
possible technology. In many instances, the modern
technology is not the cheapest. New technologies usually
require attention to human capital as well, for example,
people may need training or retraining, and the size of the
workforce may have to be reduced as the skilled labour force
becomes more efficient, or technology replace with labour.
Hence, both skilled workers and advanced technology may
cause redundancies, both of which are issues in the stage of
production of Bahá’í inspired model in chapter seven.
Consideration must also be given to ensuring that the costs of
these new technologies do not outweigh their benefits. A
practical and sensible recommendation is that advanced
technology and training of the workforce should go hand in
hand.

Furthermore, the economic view expressed in the Bahá’í
Writings indicates that skills such as useful arts and sciences
and commerce, are necessities for sustainable production and
wealth creation. Useful arts are concerned with skills such as
manufacturing and craftsmanship. Economic theories assume
that skilled workers with high demand earn more than
unskilled workers. There are several reasons for this view.
Principally, this is because the demand for skilled workers is
higher, and in some occupations, supply of skilled workers is
limited. Another reason is that the marginal revenue and
marginal physical product of skilled labour is high, because
the skills possessed by the workers will lead to higher
revenue. 21 Also, the supply of skilled labour in many

Marginal Revenue is the increase in total revenue when output increases by one
unit. Labour is more demanded when they are able to increase productivity and
hence increasing sales.
Economics and the Bahá’í Faith

developing countries is below that of unskilled workers. In
some highly-specialised occupations, it is difficult to
substitute skilled labour with machines. Such attitudes
towards skill learning increase the wealth of a nation. This
accords with the guidance of the head of the Bahá’í Faith the
Universal House of Justice, which said, ‘The Bahá’í
community will need men and women of many skills and
qualifications; for, as it grows in size the sphere of its
activities in the life of society will increase and diversify.’22

Notably, ‘Abdu’l-Bahá relates the effect of work and the
acquisition of useful arts, and sciences, to the multiplying of a
nation’s wealth. He said:
The acquisition of useful arts and of general
knowledge, to inform [themselves] as to the truths of
such physical sciences as are beneficial to man, and to
widen the scope of industry and increase the products
of commerce and multiply the nation’s avenues of
wealth.23

For example, an increase in investment in useful arts and
sciences and skills learning, have led to creating
specialisation, which in turn has a great effect on the national
income of a country. Specialisation allows a person to
become skilled and more efficient at a specific task, hence
producing more, with better quality and less wastage. To
achieve this level of specialisation, the Bahá’í Writings
suggest training and skill learning and a fair pay system, such
as the principle of profit sharing. However, the drawback of
becoming specialised in a certain occupation is that it may
become monotonous for some individuals. It may also mean
that the specialised person would end up with limited skills in
other things, reducing his or her ability to find other jobs if

Universal House of Justice. Wellspring of Guidance, Wilmette IL: Bahá’í
Publishing Trust, 1979, p. 95.
‘Abdu’l-Bahá. The Secret of Divine Civilisation, pp. 102-103.
Sustainable Production

they wished to. Therefore, in some cases specialisation may
reduce efficiency and demotivate workers. Consequently, the
extent to which specialisation motivate workers, or add
meaning to life, varies in different people.

In recent time, many organizations have become more
innovative by putting new ideas and approaches into action to
create social benefits. Innovation is the development of new
customer values through techniques that meet new market
needs in new ways. This is accomplished through different or
more effective products, processes, services, technologies, or
ideas that are more readily available to markets,
governments, and society. Among the benefits of innovation
are increasing the profit of the organization; product
diversification; satisfying consumer needs; use of new
business opportunities; market development; and increasing
competitive advantage. There are positive externalities24 from
the use of innovation and new technology that can be used,
for example in pharmaceutical industry where new drugs
improve the quality of life, or improvements in car
manufacturing that reduce the risk of injury from accidents
and help to diminish environmental damage such as emission
levels and pollution. The model assumes great responsibility
for organizations to consider codes of conduct in areas of
corporate integrity, social obligation, personal uprightness,
and environmental responsibility. Therefore, those
individuals and organizations that have the ability, skill and
knowledge can innovate those essentials of life that not only
causing wellbeing for the generality of population but also
promote sustainability.

Positive externalities are those activities that its social benefits exceed private
benefits.
Economics and the Bahá’í Faith

3.4 Bahá’í work ethics
The term ‘work ethic’ refers to the beliefs, values, and
principles that guide the way individuals understand, value,
and perform their jobs well. Gene Laczniak defines ethics
as ‘moral rules or principles of behavior that should guide the
members of a profession or organization and make them deal
honestly and fairly with each other and with their
customers.’ 25 The distinctiveness of ‘Bahá’í work ethics’ is
that, work done in a spirit of service is elevated to the rank of
worship. Hence, the expression ‘work as worship’ is a key
concept for discussing the Bahá’í perspective on work and
work ethics. The challenge, as Torrington, Hall, and Taylor
argue, is that ‘ethical standards vary between different
national cultures, making international standards difficult.’26
They further write, ‘Ethical codes are only valid if they are
appreciated and willingly implemented by the great majority
of those to whom they apply.’27 To make this view effective,
work ethics should become a culture in an organization and
perhaps in the wider society.

From an economic perspective, work is central and a key
principle. Through work, individuals carry out their
responsibilities, maintain their livelihoods, and enhance their
quality of life. Without work, and hence in the absence of
monetary reward, production, distribution and consumption
cannot be sustained. From a Bahá’í perspective, work is
conducive to human upliftment and exaltation. Also, work is
important for individual identity and self-fulfilment, and as a

Gene Laczniak. Framework for Analyzing Marketing Ethics, London: Prentice-
Hall, 1990, p. 18.
Derek Torrington, Laura Hall and Stephen Taylor. Human Resource
Management, 7th ed., London: Pearson Education Limited, 2008, p. 756.
Ibid.
Sustainable Production

service for community development. Bahá’u’lláh affirmed
‘work is worship’. He also said: ‘It is incumbent upon each
one of you to engage in some occupation, such as a craft, a
trade or the like. We have exalted your engagement in such
work to the rank of worship of the one true God.’28 Hence,
the emphasis is not only placed on the monetary aspect of
work but also on its effect on one’s spiritual development,
which would otherwise be achieved through worship.

Despite great emphasis on the principle of work as worship,
the concept of work as spiritual practice could be disputed.
The concept of spirituality is difficult to grasp in the context
of a discussion on ‘work’, because of its abstract nature. It is
difficult to measure spirituality, as people have to think
beyond monetary gain. It can be argued that work and
worship are totally different from each other. Worship is in
the spiritual realm, it is an act of meditation and aims to
receive the blessings of God. For many it is done in private,
in a temple or a shrine. However, work is what is done in the
fields, in a factory, in a hospital, in school, or in an office.
The purpose of work for many is to earn a living and produce
a certain amount of output, both of which have a monetary
value and can be measured.

In modern working practices, the nature of work has shifted
from a purely monetary concept to achieving higher values.
People do not necessarily work only to satisfy their material
needs, but for other reasons, such as identity, feeling they are
doing something of value or contributing. The modern
theories of motivation in the work place developed by clinical
psychologists, Abraham Maslow’s29 ‘hierarchy of needs’, and

Bahá’u’lláh. Aqdas, verse 33.
For Abraham Maslow’s five level of human needs: physiological, security,
social, esteem, and self- actualization, see: ‘A Theory of Human Motivation,’
Economics and the Bahá’í Faith

Fredrick Herzberg’s ‘two factor-theory’30 supports the Bahá’í
view that higher value of work is as a motivational factor. For
example, Abraham Maslow in his paper of the ‘theory of
human needs’, or the ‘hierarchy of needs’, considers social
factors (including love and belonging), esteem and self-
actualization as necessary requirements for a worker’s
motivation, although, the lower nature of ‘work’, such as
physiological and safety aspects are not overlooked. 31 In
parallel to Maslow, Herzberg’s two-factor theory of
motivation states that there are certain factors in the
workplace that cause motivation, while a separate set of
factors cause dissatisfaction and they act independently of
each other. According to Herzberg, individuals are not
content with the satisfaction of lower-order needs at work.
Rather, individuals look for the gratification of higher-level
needs such as achievement, recognition, responsibility, and
advancement. 32 Others such as Elton Mayo (1880-1949)
stressed the principles of ‘team working and consultation’33
as a method for motivating the workforce and increasing the
level of output, and both of these principles are indicated and
supported in the Bahá’í literatures.

Consequently, as modern theories suggest, some people work
for reasons such as excelling in their skills, talents and
potential, or following their passions and achieving status.
The Bahá’í work ethics advocate that work may become a
path to spiritual development. For example, by referring to
the purpose of work, Shoghi Effendi said, work ‘has not only
a utilitarian purpose, but has a value in itself, because it

Psychological Review, no. 50, 1943, pp. 370-396, at 374. Also see: Gerald Cole.
Management, Theory and Practice, p. 36.
For Fredrick Herzberg’s ‘Two Factor Theory,’ see: Cole. p. 37.
Abraham Maslow. Journal of Psychological Review, p. 375.
For Herzberg’s Motivation – Hygiene Theory, see: Cole. p. 37.
For Elton Mayo’s view on team working see: Cole. p. 34.
Sustainable Production

draws us nearer to God, and enables us to better grasp his
purpose for us in this world.’34 The practical implication of
‘work as worship’ is that through fulfilling natural duties in
life honestly and to the best of one’s ability, a person will
progress spiritually, because work puts a person in a position
to serve others. It can be argued that some people’s labour is
exploited and that many do not have the opportunities or
motivation to work. One way in which work helps change
behaviours is that through interactions with others, one
becomes aware of their needs, is less focussed on ‘self’, and
more focussed on helping others, thereby changing
behaviour. Hence, work becomes significant when it provides
service to others. Service and worship become parts of the
same entity. Thus, the concept of ‘work as worship’ suggests
that, for a Bahá’í, work or occupation is part of a person’s
religious duty and spiritual growth, a way of life, and
fulfilment of responsibilities. Consequently, the central
figures of the Bahá’í Faith also state the type of occupations
that would be elevated to the rank of worship. These include
craft, agriculture, useful arts and sciences, commerce, and
skills learning. The basic principle, however, is that work
should be done in a spirit of service, although it may lead to
material gain and wealth creation.

But, is wealth creation unethical? The Bahá’í work ethics do
not condemn wealth creation. In one of His Writings
Bahá’u’lláh states: ‘Having attained the stage of fulfilment
and reached his maturity, man standeth in need of wealth, and
such wealth as he acquireth through crafts or professions is
commendable and praiseworthy.’ 35 This statement has
important economic and moral implications. Bahá’u’lláh does

Shoghi Effendi. Cited in Aqdas, note 56.
Bahá’u’lláh. Tablets, pp. 34-35.
Economics and the Bahá’í Faith

not declare wealth as immoral; he rather accepts the need for
it when a person reaches the stage of maturity. But, what is a
stage of maturity? It can be viewed as when an individual has
developed intellectually and spiritually to a point when he or
she is able to take on responsibility for himself or herself and
others, so that the wealth acquired through engaging in some
sort of crafts or profession can be spent sensibly and
responsibly. This, however is open to interpretation. There
are a number of criteria for fulfilling such a claim. In other
words, the level of maturity influences a person to spend the
wealth on those goods and services that are befitting human
dignity. This would then inspire producers to produce those
products that are demanded by responsible consumers.

The pursuit of a profession is encouraged in the Bahá’í
Writings. ‘Abdu’l-Bahá said, ‘Strive as much as possible to
become proficient in the science of agriculture for in
accordance with the Divine Teachings, the acquisition of
science and the perfection of arts is considered as acts of
worship.’ 36 The pursuit of professions such as agriculture,
arts, sciences and technology, as well as in the fields of
education, health and social services, are all relevant
examples of ‘work is worship’. ‘Abdu’l-Bahá further states:
‘If a man engages with all his power in the acquisition of a
science or in the perfection of an art, it is as if he has been
worshipping God in the churches and temples.’37 The word
‘perfection’ in this passage suggests the modern working
concept of ‘quality assurance.’ 38 Lawrence Miller further

‘Abdu’l-Bahá. Bahá’í World Faith, compiled by the National Spiritual
Assembly of the Bahá’ís of United States of America, Wilmette IL: Bahá’í
Publishing Trust, 1976, p. 377.
Ibid. Selection, pp. 144-145.
‘Quality assurance’ is the notion of increasing efficiency, waste reduction and
improving productivity, all of which would benefit an organization to perform
better.
Sustainable Production

elabourates on this subject by emphasising the importance of
the right ‘attitude’ to work, he writes:
The word ‘if’ is very important when discussing
‘work is worship’. It does not say that if a person
simply shows up at work and puts in his time, it is as
if he were worshiping God. It is only if he is ‘engaged
with all his power’ and is seeking perfection in that
work…both mind and spirit must be exercised at work
and only then, ‘when engaged with all his power’, is it
an act of worship.39

Therefore, work is worship when attaining a sense of
creativity and self-worth from a meaningful work. This
requires a change in the workers’ attitude towards work, and
how the workplace is designed to motivate workers. The
workplace, as suggested by Herzberg and his hygiene factors,
has a profound impact on the spiritual well-being of human
resources, including workers and management. In such an
environment, individuals feel a sense of fulfilment and self-
esteem, resulting in improving performance and increasing
output.

As mentioned earlier, in order to perform one’s job with
excellence, one needs to be skilled and trained in what he or
she is doing. The need for education and training for
attainment of excellence is therefore closely linked with work
ethics and essential for improving individual and
organizational performance. In regard to education and
training of children ‘Abdu’l-Bahá said:
The education and training of children is among the
most meritorious acts of humankind and draweth
down the grace and favour of the All-Merciful, for
education is the indispensable foundation of all human
excellence and alloweth man to work his way to the

Lawrence Miller. Spiritual Enterprise, p. 152.
Economics and the Bahá’í Faith

heights of abiding glory.40

In modern times, working conditions are changing all the
time and continued professional development and skill
learning are necessary to adapt to such changes, and maintain
excellence. Customer trends, the market, and technology are
changing so rapidly that unless employers take steps to
constantly update knowledge, skills and technology, workers
will be less valuable to their current or future employers. A
number of countries that are able to develop the skills and
education of their people and to employ them effectively in
their economy have achieved great success in many aspects
of development. As economist Tony Thirlwall pointed out
since 1960’s there has been a new industrial revolution by a
number of countries so called the ‘Newly Industrialised
Countries’41 of South-East Asia into a virtually industrialised
state, and many others into a semi-industrialised state.

Knowledge has a significant place in the Bahá’í Writings and
as a result the Bahá’í community observes a culture of
learning. It is stated that ‘Knowledge is as wings to man’s
life, and a ladder for his ascent.’42 Hence, a combination of
mode of learning, intellectual capability, and moral values
influence a Bahá’í to choose the right skills and the right line
of work. The dynamics of knowledge, skill learning, and
excellence in all things equip an employee to work
adequately and produce goods and services that satisfy the
customers appropriately. Making customers delighted,
according to Stanley Brown, is the key factor for total
customer service and it is a sign of success for
‘Abdu’l-Bahá. Selections, pp. 129-130.
Tony Thirlwall. Economics of Development: Theory and Evidence. 9th ed., New
York: Palgrave Macmillan, 2011, p. 21. (Newly industrialised economies
including South Korea, Taiwan, Singapore and Malaysia.)
Bahá’u’lláh. Tablets, p. 26.
Sustainable Production

organizations.43 Delighting customers, however depends what
commodities are demanded and if products match human
dignity.

A Bahá’í view closely linked with ‘work as worship’ is to
attempt to achieve perfection in one’s profession, which is
closely related to skill learning discussed earlier. Bahá’u’lláh
said ‘Strain every nerve to acquire both inner and outer
perfections, for the fruit of the human tree hath ever been and
will ever be perfections both within and without.’44 The inner
and outer perfection can be interpreted as developing both
spiritually and materially. The impression is that work offers
the opportunity for self-realization and self-development, in
addition to the material benefits. ‘Abdu’l-Bahá exhorts
Bahá’ís in ‘attaining perfection in one’s profession’45 He goes
further to say ‘Thou must endeavour greatly so that thou
mayest become unique in thy profession and famous in those
parts.’ 46 The view of producing products at ‘highest
perfection’ and other expressions such as ‘outer perfection’,
‘highest motives’ 47 and ‘attaining perfection in one’s
profession’ 48 can be interpreted as resource efficiency and
sustainability. However, although qualities such as perfection
and excellence are necessary factors for improving
performance and increasing level of output, they are not
sufficient. Commitment from the workforce is required to
maintain a high level of excellence in the process of
manufacturing a product.

Stanley Brown. Strategic Customer Care, Toronto: John Wiley and Sons Ltd.,
1999, p. 23.
Bahá’u’lláh. Quoted in Bahá’í Education, Compiled by National Spiritual
Assembly of the Bahá’í of United Kingdom, London: Bahá’í Publishing Trust,
1987, p. 3.
‘Abdu’l-Bahá. Selections, p. 145.
Ibid., pp. 145-146.
‘Abdu’l-Bahá. Paris Talks, p. 189.
Ibid. Selections, p. 145.
Economics and the Bahá’í Faith

An area closely related to the Bahá’í work ethics is that
Bahá’ís are encouraged to study the type of knowledge and
engage in a kind of occupation that benefits the entire society.
In several Writings, the central figures of the Bahá’í Faith
have encouraged Bahá’ís to engage in such professions that
will benefit all. For example, Bahá’u’lláh advises his
followers to ‘occupy yourselves with what will profit you
and others.’49 He also said ‘Ye are the trees of My garden; ye
must give forth goodly and wondrous fruits, that ye
yourselves and others may profit therefrom.’50 He also said
‘The best of men are they that earn a livelihood by their
calling and spend upon themselves and upon their kindred for
the love of God.’51 Some important objectives of sustainable
production have been stated in the above passages including:
productivity, earning a livelihood, service to humanity, and
sharing. These factors influence a Bahá’í to acquire a kind of
knowledge and profession that not only benefits his or her
own life but also benefits others. Many Bahá’ís have
therefore studied those subjects, and chosen a profession, that
can be beneficial to their own development and at the same
time being of benefit to the wider community. This helps to
achieve a relative equilibrium in the labour market. This may
also promote undertaking skill-learning or studying the
subjects that are in high demand in the market. Such efforts
help to satisfy workers’ needs as well as the needs of the
market.

What is the practical application of ‘work as worship’? The
Bahá’í view is that it is not possible to worship God without
serving others. Prayers and meditations need to be reflected

Bahá’u’lláh. Aqdas, verse 33.
Ibid. Hidden Words (from Persian translation), no. 80.
Ibid. no. 82.
Sustainable Production

in action in order to be effective. ‘Bahá’í House of Worship’
(Mashriqu’l-Adhkár) is a classic example for the application
of two ethical principles of ‘worship’ and ‘service’.
Mashriqu’l-Adhkár is Arabic, meaning ‘the Dawning-Place
of the Praise of God.’52 Referring to the significance of the
function of Bahá’í House of Worship, Shoghi Effendi writes:
Bahá’í worship, however exalted in its conception,
however passionate in fervour … cannot afford lasting
satisfaction and benefits to the worshipper himself,
much less than to humanity in general, unless and
until translated and transfused into that dynamic and
disinterested service to the cause of humanity.53

Consequently, the Houses of Worship incorporates two
fundamental principles to be included in every Bahá’í
community; namely worship and building capacity for
service to humanity. In its 2012 ‘Ridván message’ 54 , the
Universal House of Justice expound the two important
functions of ‘worship and service’ offered in the Bahá’í
Houses of Worship as ‘an educational process that builds
capacity for service to humanity.’55

The purpose of the Bahá’í House of Worship is not simply an
outstanding building with a dome, with beautiful gardens
around it where people go to worship. It comprises those
elements that satisfy the social needs of people, through a
number of dependencies dedicated to activities concerned
with social, humanitarian, educational, and scientific pursuits.
Shoghi Effendi envisages that the House of Worship and its
dependencies ‘shall afford relief to the suffering, sustenance

Shoghi Effendi. Cited in Aqdas, note 53.
Ibid. Bahá’í Administration, p. 186.
Each year during Ridván period, 21 April - 2 May, the Universal House of
Justice send a message to the Bahá’ís around the world. These messages are
usually about the development of Bahá’í community worldwide.
Universal House of Justice. Ridván message, April 2012.
Economics and the Bahá’í Faith

to the poor, shelter to the wayfarer, solace to the bereaved,
and education to the ignorant.’56 It is indicated in the Writings
that there will be Bahá’í Houses of Worship in every town
and city in the future.57 As the Bahá’í Houses of Worship are
not yet built in every community, Bahá’ís organize activities
at homes, halls and community centres to consult, learn, and
practice the two principles of worship and service to
humanity.

A significant aspect of Bahá’í House of worship is that it is
the practical demonstration of religious unity. These Houses
of worship are unique places which welcome members of all
Faiths ‘to re-unite’ them. A letter written on behalf of Shoghi
Effendi states, ‘The oneness of mankind implies the
achievement of a dynamic coherence between the spiritual
and practical requirements of life on earth. The
indispensability of this coherence is unmistakably illustrated
in his ordination of the Mashriqu’l-Adhkár.’58 Hence, Bahá’í
Houses of Worships are an ideal place to gather people of all
faiths and no faith.

3.5 Bahá’í teachings to increase supply of labour
The ability of an individual, or group of individuals, to
become productive members of society, is important for
one’s own growth and also as a process for community
building and social development. Studying the Bahá’í
Writings, a number of distinctive and interrelated teachings
are found that are effective in enabling such a process. The
application of these teachings provides employment

Shoghi Effendi. noted in Aqdas, p.191.
Currently there are Baha’i Houses of Worship in Chicago-USA; Frankfort-
Germany; Sydney-Australia; New Delhi-India; Apia-Western Samoa; Panama
City-Panama; Kampala-Uganda; and Chile.
Shoghi Effendi. Messages to America, pp. 23-24.
Sustainable Production

opportunities and increases the supply of workforce in the
labour market. There is also a need to Identify labour market
deficiencies, to ensure provision of training and skills
learning to fill the gaps, thereby optimising production. This
subject is further detailed in the following sections using
principles of Bahá’í work ethics and sustainable production.

3.5.1 Bahá’í view on idleness
Bahá’ís are encouraged to work, to be productive members of
the society, earn a livelihood, and to serve humanity. Thus,
idleness is forbidden, whether it is due to lack of skills, lack
of incentives, or as a result of living from inherited wealth.
However, opportunity to work must be provided. The
founder of the Faith states, ‘Waste not your hours in idleness
and sloth.’ 59 And his successor, ‘Abdu’l-Bahá places
emphasis on the productive capacity of individuals and
suggests that ‘all must be producers.’ 60 Shoghi Effendi, in
reference to a passage from the Writings of Bahá’u’lláh 61 ,
firmly affirms that ‘Every individual, no matter how
handicapped and limited he may be, is under the obligation of
engaging in some work or profession’ 62 and referring, to
those who have inherited wealth and see no need to work he
said ‘The inheritance of wealth cannot make anyone immune
from daily work.’63 These excerpts leave little excuse for any
Bahá’í to avoid working or being of service for the common
good.

Bahá’u’lláh. Aqdas, verse 33.
‘Abdu’l-Bahá. Promulgation, p. 217.
See: Bahá’u’lláh, Gleanings, p. 202. (He said: The poor may exert themselves
and strive to earn the means of livelihood. This is a duty, which, in this Most
Great Revelation, hath been prescribed unto every one, and is accounted in the
sight of God as a goodly deed. Whoso observeth this duty, the help of the
invisible One shall most certainly aid him.)
Shoghi Effendi. Directives, p. 74.
Ibid.
Economics and the Bahá’í Faith

The idea that the poor have to do their utmost to be engaged
in some kind of work is supported by economic policies and
has significant consequences in the life of the poor, their
families and the entire economy. At the individual level, it
causes one to better understand the value and objective of
life. It helps families to enjoy higher standards of living,
including better education, improved health and greater
happiness. Society can also benefit greatly by using resources
more effectively. For example, by lowering unemployment
and increasing output, which leads to economic growth and,
ultimately, more revenue for government to use to improve
public services. The practicality of these idealistic views in
Bahá’í Writings and in economic theories in a more
sustainable social, economic and political environment, need
to be analysed. The labour market is very complex and
external shocks, such as a period of recession, bad weather
conditions, war, and political instability, greatly affect
employment conditions. Hence, labour market fluctuation
exists all the time.

But what constitutes idleness and productivity? It is
important to consider what we mean by idleness, and the
productivity of what. This is the dilemma. For example,
people working in a weapons factory are still considered to
be ‘productive’ and from an economics perspective,
measured in terms of Gross Domestic Product, add to the
average standard of living. However, such activities may not
be ethical. Alternatively, one may argue that it is far better to
be ‘idle’ and collect unemployment benefits from the public
fund than working in an arms industry. Hence, there is much
more in analysing the concept of ‘idleness’. For example,
what guarantee is there that jobs would be available for
everyone? In the free-market economy, it is not possible for
all to be employed. During a period of full employment,
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some form of unemployment is still unavoidable, such as
those people affected by structural, frictional, and seasonal
unemployment. William Phillips64 , for example, shows that
there exists a ‘natural rate of unemployment’ during a period
of full employment. The idea is that a certain level of
unemployment helps balancing inflation and price stability.65
The level of unemployment varies in different countries and
depends on a number of factors, including the availability of
natural resources to produce goods and services, the existence
of appropriate technology, capital investment, the level of
education and training in necessary skills, as well as a good
standard of health.

What provisions are there for Bahá’ís to ensure there are
sufficient earnings for living? Bahá’u’lláh, in one of His
Writings, refers to one of the duties of ‘the House of
Justice’ 66 as ‘have been charged with the affairs of the
people.’ 67 In relation to the word ‘affairs’ in this passage,
Shoghi Effendi identifies a number of provisions to be
considered by Local Spiritual Assemblies, including ensuring
shelter for the poor and needy, encouraging and helping
individuals in acquiring sufficient skills, establishing schools
for education and training, and ensuring the provision of
necessary academic equipment. He said:
It is the duty of those who are in charge of the
organization of society to give every individual the
opportunity of acquiring the necessary talent in some

William Phillips, wrote a paper in 1958 titled ‘The Relation between
Unemployment and the Rate of Change of Money Wage Rates in the United
Kingdom, 1861-1957.’ In the paper Phillips describes how he observed an inverse
relationship between money wage changes and unemployment in the British
economy over the period examined. See: Krugman, International Economics:
Theory and Policy, pp. 235-237.
Christiane Lawrence. Economics, London: Nelson Thornes, 2009, p. 153.
Universal House of Justice. The Kitáb-i-Aqdas, note 80. (Currently, Local
House of Justice is known as Local Spiritual Assembly.)
Bahá’u’lláh. Tablets, p. 26.
Economics and the Bahá’í Faith

kind of profession, and also the means of utilising
such a talent, both for its own sake and for the sake of
earning the means of his livelihood.68

Providing opportunities for employment however, does not
mean that unemployment is unavoidable. Apart from skill
learning, which was discussed earlier, Assemblies are advised
to ensure that children from disadvantaged families are taken
care of and receive academic education.69 However, although
it is most important for everyone to engage in some form of
work and service, this does not apply to those who do not
have the physical or intellectual abilities to do so. These
individuals would be under the protection of the state or the
Houses of Justice, to ensure their needs are met, and their
quality of life is preserved in the best possible way.

3.5.2 Bahá’í view on begging as a profession
Is there a place for begging in the Bahá’í community? Two
issues are relevant to this discussion. First: at an individual
level, Bahá’ís are forbidden to beg, the law of The Kitáb-i-
Aqdas is very clear about this, Bahá’u’lláh states:
It is unlawful to beg, and it is forbidden to give to him
who beggeth. All have been enjoined to earn a living,
and as for those who are incapable of doing so, it is
incumbent on the Deputies of God 70 and on the
wealthy to make adequate provision for them.71

The rationale of the injunction against begging is that it is
offensive to the dignity of a person. A person who takes

Shoghi Effendi. Directives, p. 74.
See: Shoghi Effendi, Quoted in Bahá’í Education, pp. 49-50. (According to him
‘Every child without exception must from his earliest years make a thorough
study of the art of reading and writing … To assist the children of the poor in the
attainment of these accomplishments, and particularly in learning the basic
subjects, it is incumbent upon the members of the Spiritual Assemblies.’)
In this passage, ‘Deputies of God’ refers to members of Local Spiritual
Assemblies.
Bahá’u’lláh. Aqdas, verse 147.
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begging as a profession, living off others while contributing
nothing, is considered a beggar, and should not be
encouraged. However, a distinction should be made between
giving to those who beg professionally, and those who are
poor because they are incapable of working or because their
earning is not sufficient for an adequate living. This view is
supported by ‘Abdu’l-Bahá in the following statement:
Mendicancy is forbidden and that giving charity to
people who take up begging as their profession is also
prohibited...The object is to uproot mendicancy
altogether. However, if a person is incapable of
earning a living, is stricken by dire poverty or
becometh helpless, then it is incumbent on the
wealthy or the Deputies to provide him with a
monthly allowance for his subsistence.72

Why is mendicancy so highly disapproved of by Bahá’u’lláh
while giving to charity is highly encouraged? Can we try to
form a more precise picture of what Bahá’u’lláh has
condemned? For example, we are familiar with street
beggars, adults and children who often appear to be homeless
and beg for money. Some may suffer from mental or physical
disabilities. Is that what Bahá’u’lláh has forbidden or
condemned? The Bahá’í Writings support charity for
assisting those who are in need. For a person who suffers
hardship due to circumstances beyond her or his control,
Bahá’ís are enjoined to show compassion and be charitable.
Bahá’u’lláh confirms this, saying: ‘Charity is pleasing and
praiseworthy in the sight of God and is regarded as a prince
among goodly deeds.’73 Bahá’ís are encouraged to become ‘a
source of social goods.’ 74 In contrast to beggars, the poor
have a very special place in the Bahá’í Writings. The rich are

‘Abdu’l-Bahá. Cited in Aqdas, note 162.
Bahá’u’lláh. Tablets, p. 71.
‘Abdu’l-Bahá. The Secret, pp. 2-3.
Economics and the Bahá’í Faith

told to have the utmost regard for the poor. In numerous
Writings, the central figures of the Bahá’í Faith encourage
the wealthy to take care of the poor. Instructing the rich,
Bahá’u’lláh said ‘O ye rich ones on earth! The poor in your
midst are My trust, guard ye My trust, and be not intent only
on your own ease.’75 These passages clearly confirm that the
Bahá’í Writings consider the rich responsible for alleviating
poverty and for improving the living standards of the poor.
However, the nature of giving should not be for the sake of
receiving public recognition or deriving more benefits. The
intention of the donors should be sincere altruism. Within
Bahá’í communities, helping the poor usually comes through
development projects, and contributing time and funds to
Bahá’í institutions that carry out these responsibilities. It
seems that the focus on begging certainly needs to be coupled
with a focus on the rich and their extravagant practices,
which may have contributed to the need for begging in the
first place. Virtues such as generosity, compassion, kindness,
thoughtfulness and justice, require action, otherwise they do
not exist or their existence can be challenged. These qualities
are only there if they are acted upon. The expressions ‘be’
generous, or ‘be’ compassionate, conveys an action, without
which it is not there! One cannot be compassionating without
practicing compassion.

The Bahá’í writing delegates the rich a great responsibility
towards the poor. In this passage Bahá’u’lláh states: ‘Great is
the blessedness awaiting the poor that endure patiently and
conceal their sufferings, and well is it with the rich who
bestow their riches on the needy and prefer them before
themselves.’ 76 In recent time charitable undertakings are

Bahá’u’lláh. Hidden Words (from Persian translation), no. 54.
Bahá’u’lláh. Gleanings, p. 202.
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boosted as a means for helping those in needs. The question
to be considered is that if the poor are hiding their poverty,
how can it be known to the rich to support them? There is a
distinction between satisfaction and happiness. The poor are
satisfied with what they possess because they are not given
the opportunity to ensure a better life. Being satisfied does
not mean they are happy. A poor person living in absolute
poverty may satisfy with one meal per day because he cannot
get the second. Happiness requires more than the basic needs,
it requires proper education and health, employment
opportunity, adequate housing and sanitation, and living in an
acceptable environment.

Will there be a need for charity when poverty is eliminated?
Generosity is an altruistic act of human being and will always
need to be practiced. It may be argued that one of the reasons
for eradication of poverty in the future would be continued
acts of generosity and charitable giving. There will always be
people who will not have the ability to earn sufficiently to
live comfortably. Generosity and charitable acts are long
standing traditions in all cultures, and they will continue to
exist, with or without religious affiliation.

The Bahá’í law of prohibiting begging on one hand and the
need for adequate provision for the poor and needy by Local
Spiritual Assemblies on the other, makes one wonder if
individual Bahá’ís asking for help from Assemblies is a form
of begging? Exploring the Bahá’í Writings, it is notable that
Bahá’í teachings are interrelated and interconnected and
should be looked at collectively rather than separately. For
example, as discussed earlier, compulsory education
encourages the Bahá’ís to acquire skills that help them
acquire work, which would benefit themselves and others.
Furthermore, work being considered as worship encourages
Economics and the Bahá’í Faith

Bahá’ís not to remain idle. Also, since giving to the Bahá’í
Fund is a spiritual obligation, any inappropriate use of this
Fund would be deemed morally wrong. The establishment of
the Institution of the House of Worship and its dependent
agencies provides several opportunities for the deserving
poor to be engaged in learning necessary talents, which
would help them to work. It should be noted that according to
the Bahá’í Writings, the House of Justice would determine
the details of how the deserving poor will be protected and
the nature of the help given to them. The emphasis is that the
type of problems changes at different times and a new
solution is required. Bahá’u’lláh provides the solution:
Inasmuch as for each day there is a new problem and
for every problem an expedient solution, such affairs
should be referred to the Ministers of the House of
Justice that they may act accordingly to the needs and
requirements of the time.77

At the present time, Local Spiritual Assemblies deal with this
matter according to the community’s needs and available
resources.

Also, as the Bahá’í community evolves and the economic
principles are applied, absolute poverty shall disappear and
there will not be any need for one to beg or the possibility for
individuals to stay idle. However, it is not reasonable to think
that the individuals’ generosity is the only way of dealing
with the challenges of begging. The role of government is
crucial in eradicating begging, through legislation and other
methods such as social welfare programs. This is practical in
the more developed countries. Of course, the question will be
raised if collecting monetary assistance from the welfare
system is considered as a type of begging. If, despite attempts

Bahá’u’lláh. Tablets, p. 27.
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for one to engage in some form of work, one still remains in
need, then it would be the responsibility of the state or the
assemblies to ensure their well-being. Government should
provide a variety of benefits for improving the general well-
being of the population rather than individuals asking for it.
The provider is the government who distributes necessary
resources for the well-being of all. Of course, it is vital to
realise the realities that different countries are politically,
religiously and economically varied and complex.

3.5.3 Gender Equality
Bahá’ís believe in equality of opportunity for women and
men in social and economic contribution. This principle has
an important implication in increasing the supply of the
workforce and hence the level of production. The Bahá’í
literatures suggest the active participation of women in all
aspects of community life. It is stated that ‘Women have
astonishing capacities.’ 78 The benefits of discovering and
using the capacity of women are many and affect the whole
of society. These include increasing economic growth
worldwide, particularly in developing countries, and a decline
in the number of people living in poverty. Therefore,
statements such as ‘womankind may develop equal capacity
and importance with man in the social and economic
equation,’79 if applied in practice would significantly enable
the other half of the human population, women, to engage in
all levels of social and economic activity, once equal
opportunity is provided.

However, according to Arthur Dahl ‘The inequality of
opportunity to which women are subjected in many cultures

‘Abdu’l-Bahá. Quoted in Women, Compiled by the Research Department of the
Universal House of Justice, Haifa: Bahá’í World Centre, 1986, p. 50.
Ibid. p. 37.
Economics and the Bahá’í Faith

already handicaps [a part of] the human population (emphasis
added).’ 80 Looking back in history, women were deemed
incapable - culturally and religiously, and did not have fair
opportunity to be educated or to participate in the decision
making of the social and economic life of the family and the
community, even though they carried a lot of the
responsibilities. ‘Abdu’l-Bahá confirmed: ‘Woman’s lack of
progress and proficiency has been due to her need of equal
education and opportunity. Had she been allowed this
equality, there is no doubt she would be the counterpart of
man in ability and capacity.’81

The global gender gap remains a matter of concern for those
agencies working for its removal, including the Bahá’í
International Community, who are working toward ensuring
the same opportunity for women. It should be noted that
‘Abdu’l-Bahá expressed His views on equal opportunity
more than one hundred years ago, and since then the
opportunities for women have significantly improved in the
Bahá’í community, as well as globally. The role of Grameen
bank in Bangladesh is significant in enabling seven million
women to participate in economic activities. This
participation not only has helped improving standards of
living, but also improving the macroeconomic condition of
the country by lowering unemployment and increasing
economic growth. Economic resources are both human and
physical. Women participation in the economy protects
economic resources. Economic efficiency compels effective
allocation of resources, and women, as an economic resource,
cannot be excluded from this formula. Bahá’í women are
actively involved in the development of community building.

Arthur Dahl. The eco, Oxford: George Ronald, 1996, pp. 125-126.
‘Abdu’l-Bahá. Promulgation, p.182.
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The fact that both women and men equally participate in the
consultative process accustoms them to solving problems
collabouratively. Through this collaboration an appropriate
attitude is formed in relation to the equal status of women.
Through membership of the Bahá’í community, men learn
that, ‘... when women become fully incorporated into the life
of the community, everyone benefits.’82

In theory, we may assume that when women, half the
population of the world, hold the same opportunities as men,
human capacity and resources increases and production
multiplies. However, in practice, there are other factors,
which has contributed in increasing the level of goods and
service, and food production in particular. The role of
advanced technology, innovation, know-how, necessary
capital, good governance, and efficient use of land cannot be
ignored in relation to food production. The practice of equal
opportunity for women and men is a significant factor in
correcting ‘labour market failure’ including the removal of
barriers to increasing production levels. John Huddleston
considers equality of opportunity ‘as an essential part of a
just society.’83 In a study of ‘global gender gap’, the World
economic forum, 2005, named the following five areas
necessary for improving the condition of women: economic
opportunity, economic participation, political empowerment,
educational attainment, and health and well-being.

It is important to note that in the more developed countries
the principle of equal opportunity is practiced more
effectively. For example, women are relatively more active in

Bahá’í International Community. Statement on ‘The role of Women in
Commerce in the Caribbean’, 1988.
John Huddleston. The Search for a Just Society, Oxford: George Ronald, 1989,
p. xiv.
Economics and the Bahá’í Faith

social, political and economic activities than countries
without the same privileges. However, it may be difficult for
all women, including Bahá’ís, to actively participate in social
and economic development if their government or the law of
the land does not permit equal opportunity.

A factor closely related to gender gap, and a barrier to
increasing the supply of labour, is the existence of
discrimination, in particular wage discrimination. Wage
discrimination exists because there are less demands for a
particular group of people, in this case the women. In relation
to our current discussion, it is where employers undervalue
the services of female workers. Discrimination is also
prevalent in other areas such as race, colour and nationality,
although, it is illegal in most developed countries.
Discrimination results in an inefficient allocation of resources
and inequitable wage differences. One of its costs is that the
group discriminated against clearly suffers as they find it
harder to gain employment and are likely to be paid less than
other workers doing the same work. In addition, some may
have to settle for jobs that do not utilise their talents and
skills, may be overlooked for promotion, and may not be
selected to go on training courses. The economy also suffers,
as a result of discrimination because it leads to misallocation
of resources. To avoid misallocation of resources, the factors
of production such as land, labour, capital and enterprise,
should be allocated and used in the right proportion to
maximise output with the available resources. There is
growing interest in the view that underdevelopment may not
just be a matter of lack of, or shortage of factors of
production but also a consequence of discrimination and the
misuse of, available resources. Tai Hsieh and Peter Klenow
have argued that ‘misallocation of inputs across firms can

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reduce aggregate total factor productivity in a country.’ 84
Banerjee and Duflo emphasise the importance of resource
misallocation in understanding the differences across
countries of the total level of manufacturing output, and
based on evidence suggesting that ‘gaps in marginal products
of capital in India could play a large role in India’s low
manufacturing relative to that of the United States.’ 85 The
effective output would be below the potential output which
could be achieved if groups were not discriminated against in
terms of employment, pay, promotion and training. The
experience in countries that have been relatively successful in
implementing equal opportunity indicates that the role of
government is a necessary factor.

Studies have found that where women’s share of income
within the home is relatively high and there is less
discrimination against girls, women are better able to meet
their own needs as well as those of their children. Supporting
this point, Todaro and Smith writes:
When household income is marginal, virtually 100%
of women’s income is contributed towards household
nutritional intake. Since this fraction is considerably
smaller for men, a rise in male earnings leads to a less
than proportional in the funds available for the
provision of daily needs. It is thus unsurprising that
programmes designed to increase nutrition and family
health are more effective when targeting women than
when targeting men.86

Therefore, the persistence of low standards of living among
Tai Hsieh and Peter Klenow. ‘Misallocation and Manufacturing Total Factor
Productivity,’ The Quarterly Journal of Economics, Vol. CXXIV, no. 4,
November 2009, pp. 1403-1448, at p. 1443.
Abhijit Banerjee and Esther Duflo. ‘Growth Theory through the Lens of
Development Economics,’ Handbook of Economic Growth, Vol. 1a, Amsterdam:
Elsevier, 2005, pp. 473-552, at p. 477.
Michael Todaro and Stephen Smith. Economic Development, 9th ed., London:
Pearson Education Ltd., 2006, p. 229.
Economics and the Bahá’í Faith

women and children is common where the economic status of
women remains low.

Todaro and Smith raise a legitimate question: Why is female
education important? There now exists ample empirical
evidence that educational discrimination against women not
only reinforces social inequality but also hinders economic
development. Investigating this, Todaro and Smith argues
that closing the educational gender gap by expanding
educational opportunities for women, is economically
desirable for a number of reasons: I. It increases their
productivity on the farm and in the factory and results in
greater labour force participation. II. It improves child health
and nutrition, as more educated mothers lead to multiplier
effects 87 on the quality of a nation’s human resources for
many generations to come. III. Because women carry a
disproportionate burden of the poverty, any significant
improvements in their role and status via education can have
an important impact on breaking the vicious circle of poverty.

3.5.4 Importance of education and training
There is a close connection between poverty and low
educational attainment. Many poor countries are not able to
afford to provide adequate state education. Many families
cannot afford to send their children to school even if
education is free. This is because they need children to work,
either on their farms or as child labourers working for local
businesses. Only by securing an income from their children
can these families survive. Moreover, the local economy

For the concept of ‘multiplier effect’ see: Begg, Fischer and Dornbusch.
Economics, p. 375. (The concept is developed by Keynes and states that if one of
the components of aggregate demand such as investment on training and
education increase, the national income will increase by a multiple of the original
increase.)
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often cannot provide jobs suitable for reasonably educated
children. There is then little incentive for families to educate
their children for the local job market.

Two strategic solution in dealing with children and in
particular child labour in less developed countries would be
the expansion of part-time employment opportunities to avoid
poverty in the family, and arrangements for an ideal and
supportive facilities for schooling. The provision of the right
type of education and training has proved to be the most
effective way of a prosperous society by revealing the human
potential, improving the scale of productivity and increasing
the level of production. Absence or shortage of it, can be a
major barrier in the supply of necessary workforce in the
labour market. The Bahá’í principle of universal and
compulsory education is an effective way of dealing with
such deficiency.

Education and training are vital key in increasing production
level and is conducive to personal growth and transformation
of society. The Bahá’í Writings indicate that humans have
great potential that needs to be discovered. Bahá’u’lláh states:
‘Man is a supreme talisman. Lack of a proper education hath,
however, deprived him of that which he doth inherently
possess...Regard man as a mine rich in gems of inestimable
value. Education can, alone, cause it to reveal its treasures,
and enable mankind to benefit therefrom.’ 88 Businesses
recognise that investing in education and training is necessary
to reveal the human treasure, which is the human talent,
potential, and proficiency. The World Bank has done a
comprehensive study, which shows that investing more on
education and training has a direct impact on improving

Bahá’u’lláh. Gleanings, p. 260.
Economics and the Bahá’í Faith

economic performance. The findings show that the
profitability of investment in education is an attractive
opportunity in the world today.89 Also, A research has been
done by the Nobel Prize Laureate in economic science, James
Heckman and his team based on a 40-year empirical study of
the High/Scope Perry Preschool Program. The authors of the
research present a careful economic case to justify if there is
a positive return on the investment in early intervention
schemes to facilitate social mobility. The authors of the
research calculate the social rate of return based on
subsequent differences between the early intervention from
the High/Scope Perry Preschool Program, that include long
term costs and benefits of education, crime, earnings, and
welfare. Their conclusion is that the economic return to
expanding investment in early intervention for disadvantaged
children would produce annual social rates of return between
7 and 10%, about 2% higher than the equity market between
the end of World War II and 2008.90 Heckman’s research has
given policymakers important new insights into such areas as
education, job-training programs, minimum-wage legislation,
anti-discrimination law, social supports and civil rights.
Hence, investment in education has the potential to increase
the total supply of skilled labour force and improve the
employment prospects of unemployed workers. Of course,
the economic returns from extra investment in education can
vary, according to the stage of economic development that a
country has achieved and the amount invested in training and
education, and also the type of education required in the
labour market.

See also: George Psacharopoulos. ‘Returns to Investment in Education: A
Global Update,’ World Development Journal, vol. 22, no. 9, 1994, pp. 1325-l343,
at p. 1325.
For James Heckman study see: <https://heckmanequation.org/resource/research-
summary-perry-preschool-and-character-skill-development/>

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Although the responsibility for the education of children lies
with both parents, and despite men increasingly taking a
more active role, the mother still takes on the primary
responsibility for educating the child from its infancy in the
majority of cases. This, however, that they might not be able
to take advantage of equal opportunities. Although in Europe
and North America most mothers are eager to train their
children and pay a great deal of attention to this important
matter. In many other parts of the world, women may not be
able to do so because of not having the opportunity to receive
relevant education and training themselves or having access
to material resources. Clearly, those women who are getting
financial assistance in the form of loan from the Grameen
Bank are able to provide better education for their children.91
The Bahá’í Faith emphasises that all children should be
educated. However, if in some circumstances parents only
have the financial ability to educate one child, preference
must be given to the education of girls because they are the
future mothers and educators of children. Universal House of
Justice states:
The decision-making agencies involved would do well
to consider giving first priority to the education of
women and girls, since it is through educated mothers
that the benefits of knowledge can be most effectively
and rapidly diffused throughout society.92

This is significant because through an educated mother, a
better and healthier environment is created at home for the
education of children. Commenting on this, Madeline
Hellaby writes:

Muhammed Yunus (Banker of the Poor). Creating a World Without Poverty:
Social Business and the Future of Capitalism, New York: Public Affairs Ltd.,
2007, pp. 125-127.
Universal House of Justice. The Promise of World Peace, Haifa: Bahá’í World
Centre Publication, 1985, part II.
Economics and the Bahá’í Faith

To give preference to girls in families where the
financial situation is such that choice has to be made
is quite the opposite of all traditional thinking. To
most people, even today, this is hard to swallow in
practice, although they may see the sense of it in
theory; but anyone who works in the social services
will know that maternal deprivation is one of the root
causes of family problems.93

The view is therefore, that if mothers are educated and
possess the learning and accomplishments of humankind, her
children, as ‘Abdu’l-Bahá points out are ‘like unto angels,
will be fostered in all excellence.’94

3.5.5 Consultative method of decision-making
Leaders and organizations that are using a democratic and
consultative method of decision-making become more
successful in achieving objectives and attracting better
workers to the workplace. According to an investigation by
Matthew Hind and introducing a new development program
to help quality professionals with the process of managing
change within organization. According to him:
The role of quality managers has changed
significantly…They are no longer controllers and
policemen but need to become change agents and
influencers. The role has become that of an internal
consultant, aiming to bring about change in a positive
manner supported by all within the company.95

Hind then focuses on the benefits of making decisions
through a consultative method and writes:
This method is focused on helping quality managers
to develop the skills and competences necessary to

Madeline Hellaby. Education in the Bahá’í Family, Oxford: George Ronald,
1987, p. 14.
‘Abdu’l-Bahá. Quoted in Bahá’í Education, p. 47.
Matthew Hind. ‘Consulting for Positive Change’, Training for Quality Journal,
vol. 2, no. 3, 1994, pp. 26-27, at p. 26.
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carry out this role of internal consultant successfully.
Its key objective is to develop the quality
professional’s consulting skills to help them in the
implementation of general change programs and in
particular, their own organization’s quality
management…Participation through consultation
provides an opportunity for employees to think
constructively about issues that affect them, to
contribute ideas for improvement, to engage in
problem solving, and to work as a team in
implementing good work practices. Morally and
humanely and perhaps economically, workers are
entitled to be aware of and be involved in activities
that affect their lives, within and outside the
workplace. These are motivational factors that make
workers productive. Through a consultative method of
decision-making workers find a sense of belonging to
the organization, which improves productivity and
consequently the output. The benefits of such
involvement are substantial. Employees will value the
fact that their employer recognizes their needs and
satisfactorily rewards their efforts. In turn, the
employer can significantly increase profitability by
retaining experienced, motivated and productive staff.
Apart from these ideas and advantages of
consultation, Hind identifies the following seven
benefits: clarity and confidence in the product or
service being provided; trusting and sound
relationship between client and consultant; shared
diagnosis of the need to change; shared ownership of
the design of the program; willingness of both parties
to adjust and modify plans; avoidance of quick fixes
by both parties; and finishing the program when the
organization has stabilized and not before.96

But, what are the fundamentals of the Bahá’í model of
decision-making or ‘consultation’? For a collective decision
making the following two conditions are suggested by

Ibid. pp. 26-27.
Economics and the Bahá’í Faith

‘Abdu’l-Bahá. ‘The first condition is absolute love and
harmony amongst the members of the assembly…The second
condition: They must when coming together turn faces to the
Kingdom on High and ask from the Realm of Glory.’ 97
Immediately after the two conditions, He gives five rules of
procedure for consultation, ‘The must then proceed with
utmost devotion, courtesy, dignity, care and moderation to
express their views.’ 98 A fundamental principle of
consultative process is the creation of strong trust among
different groups of people in the community, which is ‘a
prerequisite of any efforts to translate collective decisions
into collective actions.’ 99 Another feature is that, ‘when an
idea is put forth it becomes the property of the group.’100 The
principle of detachment from one’s personal views is another
feature of Bahá’í consultation. This means, ‘individual
participants strive to become dispassionate with their
respective points of view.’101 Bahá’ís consider the notion of
detachment from one’s personal views as an important
principle of consultation. For this rule, ‘all ideas cease to be
the property of any individual, subgroup, or constituency.’102
Of course, as commented by Bahá’í scholar Michael
Karlberg, Bahá’ís recognise that the detachment prescribed
above does not always come easily – even to those who are
committed to it in theory.103 It is stated in the Bahá’í Writings
that ‘Consultation is no easy skill to learn’ 104 . But
commitment to the process, they suggest, results not only in
‘Abdu’l-Bahá. Quoted in Bahá’í Administration, p. 22.
Ibid.
Bahá’í International Community. ‘Equality in Political Participation’, statement
presented at the commission on the status of women, New York: United Nations
Office, 1990.
Ibid. ‘Statement on Consultation,’ New York: United Nations Office, 1995.
Ibid. Prosperity of humankind, 1995, p. 15.
Ibid. ‘Statement of Consultation.’ New York: United Nations Office, 1995.
Michael Karlberg. Beyond the Culture of Contents, Oxford: George Ronald,
2004, p. 140.
Universal House of Justice. Wellspring of Guidance, p. 96.
Sustainable Production

more effective collective decision-making but also in the
maturation of individual participants, as well as whole
community. Bahá’ís therefore, view consultation as ‘a
learning process and they believe that the skills and attitudes
developed through consultation are as important as the
specific decisions arrived at.’105 Another principle of Bahá’í
consultation is exercising care and moderation in one’s
manner of expression. It is stated that ‘freedom of speech
must necessarily be disciplined by a profound appreciation of
both the positive and negative dimensions of freedom, on the
one hand, and of speech, on the other hand.’ 106 This is
necessary because it is only ‘within an atmosphere of mutual
respect, support and encouragement, rather than aggression
and intimidation, can clarity of thought prevail and the
perspectives of all people be heard.’107 Another fundamental
principle of Bahá’í consultation is the requirement that the
context of decision-making itself be raised to the level of
principle as distinct from political pragmatism. Commenting
on the inordinate disparity between the rich and the poor,
Universal House of Justice in The Promise of the World
Peace states:
The solution calls for the combined application of
spiritual, moral and practical approaches. A fresh look
at the problem is required, entailing consultation with
experts from a wide spectrum of disciplines, devoid of
economic and ideological polemics, and involving the
people directly affected in the decisions that must
urgently be made.108

Underlying all of these principles, according to a statement
from the Bahá’í International Community, is the principle of
justice. ‘A concern for justice is the indispensable compass in

Michael Karlberg. Beyond the Culture of Contents, p. 141.
Universal House of Justice. ‘Individual Rights and Freedom,’ Para 24.
Michael Karlberg. Beyond the Culture of Contents, P. 142.
Universal House of Justice. The Promise of World Peace, part II.
Economics and the Bahá’í Faith

collective decision-making, because it is the only means by
which unity of thought and action can be achieved. Far from
encouraging the punitive spirit that has often masqueraded
under its name in past ages, justice is the practical expression
of awareness that, in the achievement of human progress, the
interest of the individual and those of society are inextricably
linked. To the extent that justice becomes a guiding concern
of human interaction, a consultative climate is encouraged
that permits options to be examined dispassionately and
appropriate of action selected. In such a climate the perennial
tendencies towards manipulation and partisanship are far less
likely to deflect the decision-making process…in this
context, justice is a thread that must be woven into the
consideration of every interaction, whether in the family, the
neighbourhood, or at the global level.’109 For the practice of
the method of consultation, Bahá’í International Community
confirms that while the method is used for guiding the affairs
of Bahá’í communities on the local, national and international
levels, it is also used in Bahá’í–initiated social and economic
development projects, in Bahá’í-operated schools, in Bahá’í–
owned businesses and in the day-to-day decision making of
Bahá’í families.

It can be argued that the application of consultation in the
‘new economy,’ in contrast to the ‘old economy,’110 with an
emphasis on the contribution of innovation and information
technology in creating e-commerce, makes communication
and decision-making more effective, particularly among
internal stakeholders. Internal stakeholders are defined as
those people whose activities are a part of, or influence, the

Bahá’í International Community. Turning Point for all Nations, pp12-13.
Andrew Griffiths and Damian Hine. ‘Sustainability of the new economy,’
Journal of International Management and Decision Making, vol. 4, no. 2, 2003,
pp. 230 – 239.
Sustainable Production

internal value chain of the firm. 111 In the ‘new economy,’
though, socially responsible policies ought not to conflict
with economic goals and should be integrated into the
decision-making process.

The principle of consultation has been criticized for resulting
in slow making, and not being effective during emergency
time, which require a decision to be made quickly. Also,
group decision-making, as John Bratton argues ‘might allow
individual members to escape responsibility and to encourage
groupthink.’112 However, as consultative methods of decision-
making become the norm and a part of the culture of an
organization, all members become accustomed to the
technique of making decisions collectively. Alternatively,
leaders may, in the short run, adopt a combination of intuition
and consultation for making decisions.

3.5.6 Employee-employer relationship
The conventional method used in the past to deal with issues
related to employer-employee relationships, was through
trade union negotiations. In the case of a failure to reach a
particular settlement, such as in wage negotiation, industrial
action, including strike, was endorsed. The Bahá’í literatures
support a fair wage system, but using strike action as a means
of dealing with industrial disputes over wage is not
supported. For ‘Abdu’l-Bahá there are two possible causes of
strike. ‘One is the excessive greed and rapacity of the factory
owners, and the other is the gratuitous demands, the greed,
and the intransigence of the workers. One must therefore seek

Jaseem Ahmad, Nicholas O’Regan and Abby Ghobadian. ‘Leadership,
decision making and internal stakeholder engagement,’ Journal of International
Management and Decision Making, vol. 6, no. 3, 2005, pp. 345 – 358.
David Buchanan and Andrzej Huczynski. Organizational Behaviour, 7th ed.,
Essex: Pearson Education, 2010, p. 416.
Economics and the Bahá’í Faith

to address both.’113 According to ‘Abdu’l-Bahá the ‘principle
cause’ 114 is the current laws, which may ‘Lead to a small
number of individuals accumulating incomparable fortunes,
beyond their needs, while the greater number remain
destitute, stripped and in the greatest misery.’ 115 It is
therefore reasonable that while the law allows injustices in
wages and working conditions, the labour force may not have
any other means of standing up for what may be rightfully
theirs.

In some countries, such as the United Kingdom, the
popularity of union membership, as a proportion of the total
labour force, has fallen in recent years.116 For further analysis
it is necessary to look at the main reasons for the formation of
trade unions, which include: wage negotiation with the owner
of a factory, improvement of working conditions, provision
of necessary training, and other activities, such as organising
of strikes to force the owner of the factory to accept their
demands. The causes for such a decline in its popularity are
many. One is that governments have passed new laws for a
fair pay system, such as ‘national minimum wage
legislation.’ 117 The policy of establishing regulations to
increase the earnings of the under-paid is supported by the
Bahá’í Writings. ‘Abdu’l-Bahá affirms:
Laws and regulations should be enacted which would
grant the workers both a daily wage and a share in a
fourth or fifth of the profits of the factory in
accordance with its means, or which would have the
‘Abdu’l-Bahá. Some Answered Questions, P. 315.
Ibid.
Ibid.
Trade union membership in the Great Britain has declined from 13.5 million in
1975 to 7.5 million in 2002.
John Beardshaw. Economics, A Student Guide, London: Prentice Hall, 2001,
P. 362. (‘National Minimum Wage’ is a statutory minimum wage introduced to
boost the earnings of the low paid, such as the one introduced in the United
Kingdom.)
Sustainable Production

workers equitably share in some other way in the
profits with the owners.118

In this passage, ‘Abdu’l-Bahá consider a fair wage system
which is more than just a minimum wage, it is a living-wage.
In other words, it is the minimum income necessary for a
worker to meet their needs that are considered to be basic. He
suggests that workers be paid part of the company’s profits.
Other factors that reduce the need for Trade Unions are that
the government and employers support and provide training
programmes for workers, and a democratic and consultative
approach to decision-making is adopted by increasing
number of organizations for negotiations and problem
solving. The direct participation of workers in the working
environment creates a sense of belonging. Such an approach
in dealing with problems in the workplace does not require
trade union involvement. Globalization can also play an
important role in the decline of trade union power. If workers
are not satisfied with the working conditions or wages, they
have the possibility to move to another company and even to
another country. Geographical mobility of labour is easier
now and takes place mainly at the regional level, such as
within the European Union.

3.5.7 Cooperation instead of competition
In the sphere of private or personal relations, Karlberg argues
that much of human interaction has been, and continues to be,
relatively cooperative and mutualistic. According to him ‘the
historical process of nation building, the emergence of
democratic systems of government and the establishment of
the rule of law within these nations all reflect degrees of
mutualism and cooperation expressed on historically

‘Abdu’l-Bahá. Some Answered Questions, p. 317.
Economics and the Bahá’í Faith

unprecedented scale.’ 119 Further, he points out that many
traditional non-western, civilisations have placed a strong
value on harmony and collective interdependence rather than
on conflict and competitive individualism. Such cooperative
and mutualistic attitudes have, in turn, supported the
development of sophisticated arts, sciences and technologies,
as well as complex and extensive systems of public
administration.

A number of economists and philosophers have shown
interest in the subject of cooperation. For John Rawls, the
term cooperation is in relation to fair distributions of primary
goods – those resources that are necessary for the pursuit of
one’s rational life plan. The choice and ranking of primary
goods according to him coop ‘requires a general account of
rational plans of life – an account that shows our lives
depends on primary goods for their formation, revision, and
execution.’120 This view suggests how important cooperation
is in the fair distribution of resources for tackling problems
linked with the issue of poverty. One aspect of cooperation in
Bahá’í literature is therefore in relation to an effort to
increase the utilisation of resources and their value through
the coordination and organization of economic activities in
the market. Shoghi Effendi states that these economic
resources ‘will be organized, its sources of raw materials will
be tapped and fully utilised.’121

In a free-market economy, competition plays an important
role. Through competition businesses use resources more

Michael Karlberg. Beyond the Culture of Contents, p. 82.
John Rawls. ‘Social Unity and Primary Goods’, published in Utilitarianism and
beyond, eds. Amartya Sen and Bernard Williams, Cambridge: Cambridge
University Press, 1982, pp. 159-185, p. 160.
Shoghi Effendi. World Order, p. 204.
Sustainable Production

efficiently and, as a result, there is less wastage. Also, with
competition businesses produce better quality goods and
services to attract more customers. Thus, in theory,
consumers benefit from both lower prices and better quality.
However, in practice, through aggressive or relentless
competition and an uncontrolled market, small and
vulnerable businesses are destroyed and eventually exit the
market. This behaviour in the market leads to the creation of
monopolies and larger organizations. The result would be
higher prices, lower quality, waste of resources, fewer
choices for consumers, and control of the market. More
seriously, in a global market condition, if one of these large
companies fails, the entire market could suffer. William
Hatcher and Douglas Martin explain that ‘One of the main
causes of economic injustice in the world today is aggressive
competition, which results in waste of scarce resources…
This can be done only if cooperation replaces competition’122
‘Abdu’l-Bahá explained that even a single enterprise should
adopt cooperation by reflecting on the essential partnership of
workers and owners. He specifically mentions that apart from
the wage, workers must receive a portion of the profit.
Workers will be much more motivated and cooperative when
they are partners rather than just wage earners.123

Relentless competition without government regulation may
lead to greater organizational domination in the market,
which, in turn, may lead to the removal of smaller firms,
causing unemployment. For example, how can small family
businesses operate and survive when there are large
multinational companies, with the advantage of lower costs in
the developing countries from where they operate? Or, how

William Hatcher and Douglas Martin. The Bahá’í Faith, p. 91.
See: Abdu’l-Bahá. Some Answered Questions, pp. 315-320.
Economics and the Bahá’í Faith

can family businesses with no information technology and
capital investment, survive while transnational companies are
equipped with the most advanced operational techniques?
Small firms and family businesses are an important source of
employment everywhere and will continue facing enormous
challenges in competition with multinational corporations,
unless these small firms can create their own unique markets
and products that are distinguishable. The Bahá’í principles
of moderation in all aspects of life, including a
moderate-sized business, will be of great advantage to small
businesses. Consumer education also helps to support small
firms. In 1936 Shoghi Effendi said that the market must be
regulated. A number of countries, such as the United
Kingdom and other members of the European Union, have
formed organizations such as the Competition Commission,
to regulate the market in favour of consumer benefits and
protect small businesses. Although it can be argued that these
regulatory bodies may not be that effective because of
individual national government agendas.

The argument in favour of cooperation in the Bahá’í Writings
goes beyond the scope of the market and the economy. The
Writings emphasise that cooperation and not competition is
the cause of social activities just as the life of an organism is
maintained by cooperation of the various elements of which it
is composed. ‘Abdu’l-Bahá explains:
The base of life…is this mutual aid and helpfulness,
and the cause of destruction and non-existence would
be the interruption of this mutual assistance. The more
the world aspires to civilisation the more this
important matter of cooperation becomes manifest.124

Farhad Rassekh stresses the moral aspect of cooperation and

‘Abdu’l-Bahá. Bahá’í World, vol. 3, p. 154.
Sustainable Production

believes that competition, like other aspects of the market,
may be conducted morally or immorally. He argues that
competing for ‘customer service, quality improvement and
innovative products are beneficial, while deceptive and
restrictive practices are hurtful to society.’125 He, then refers
to false advertising as an example of ‘deceptive practice and
lobbying the government to control imports as an example of
restrictive practice.’126

In the analysis of the importance of cooperation,
consideration should be given to the function of science and
information technology in influencing the practicality of
cooperation and reducing costs, due to coordinating
economic activities. The challenge, however, is that in the
new forms of organizational structure, the workforce must be
trained to understand the fundamental dynamics of
cooperation in order to evaluate their industrial relationships.
Success depends on cooperation and willingness among the
owners, managers, consumers, suppliers, and the government.

In spite of the drawbacks of competition, the Bahá’í Writings
support competition if ‘any benefits arising from
praiseworthy deeds shall fall to the individuals that compete
with each other in benevolent works.’127 It can be interpreted
that competition is therefore acceptable in those activities
such as education and service to humanity. Bahá’ís are
counselled to ‘Vie…with each other in the service of God
and of his Cause.’ 128 Shoghi Effendi was ‘grieved to hear

Farhad Rassekh. ‘The Bahá’í Faith and the Market Economy’, Journal of
Bahá’í Studies, Association for Bahá’í Studies for North America, vol.11, p. 3,
2001.
Ibid. p. 4.
Bahá’u’lláh. Quoted in Huququ’lláh, p. 13.
Ibid., Quoted in Shoghi Effendi, Advent, p. 83.
Economics and the Bahá’í Faith

bitter competition’129 between some Bahá’ís, and he advised
them ‘to maintain unreservedly the one true standard of
business conduct inculcated in the teachings [of the Faith]
(emphasis added).’130

3.6 Chapter conclusion
This chapter has assessed and examined some of the key
Bahá’í principles related to ‘work ethics’ and ‘sustainable
production’, and their impact on the economic life of Bahá’ís,
the Bahá’í community and the wider society. An attempt has
been made to discuss and define two key expressions of
‘work ethics’ and ‘sustainable production’. A distinctive
principle, and a core Bahá’í belief, discussed in this chapter is
the concept of ‘work as worship’. It was noted that although
this concept is a core Bahá’í belief, the idea is not new and
has been mentioned by others and written in the history of
work ethics. Bahá’ís hold the view that work is necessary for
material and spiritual progress. However, work is worship
when it is performed in the spirit of service. This means that
even in this age of abundance, (for some people) service to
others as a moral obligation needs to be stressed. I considered
several principles under the heading of ‘Bahá’í work ethics’,
including a consultative or democratic method of decision-
making, profit sharing, gender equality, and considering work
as worship. These are few examples needed for accelerating
the process of increasing the supply of labour in the market.
Another key Bahá’í view discussed in this chapter is that
Bahá’ís are obliged to pursue a profession and actively seek
work. This is a positive attitude that makes a Bahá’í a
productive contributor to the whole of society. Any Bahá’í

Shoghi Effendi. Quoted in Trustworthiness, Compiled by the Research
Department of the Universal House of Justice, Haifa: Bahá’í World Centre
Publication, 1987, p. 16.
Ibid.
Sustainable Production

discussion on the subject of ‘work’ and occupation cannot
overlook the importance of agriculture. Although there is
great emphasis on both manufacturing and agricultures,
‘special regard’ is given to the matter of agriculture.

There are academic debates with regards to integrating work
with other aspect of life such as the importance of family,
education, skill learning, opportunity for employment, and
wage differentials. The aim of this chapter was to provide a
more clear and conscious interpretation of the concept of
‘work as worship’ stated in the Bahá’í primary Writings.

It is acknowledged that the advancement of technology and
know-how has created a condition that people now have the
capacity to produce enough for greater population. The
challenge, however, is to ensure that this is happening and
greater number of people can enjoy the outcome. The
solution is to execute ‘distributive justice’. This aspect will
be discussed in the next chapter.

Economics and the Bahá’í Faith

Chapter 4: Distributive Justice

If thine eyes be turned towards mercy, forsake the
things that profit thee and cleave unto that which
will profit mankind. And if thine eyes be turned
towards justice, choose thou for thy neighbour
that which thou choosest for thyself. 1
Bahá’u’lláh

4.1 Introduction
The United Nations Charter of Human Rights considers
having access to basic needs as human rights. However, this
is only in theory because, in the modern times the wealth of
nations has increased substantially, currently one billion
people live in absolute poverty.2 The challenge, therefore, is
not in the level of production and productivity, but in a fair
and just distribution of the wealth created. Throughout the
history of economics, the distribution of income and wealth
among the members of society has been a major concern.
There has not only been a desire to explain the pattern of
distribution, but also a belief that basic issues of justice and
fairness and morality were involved. Consequently, most of
the theories of economic justice focus on distributive justice.
Philosophers, historians and economists have been debating the
concept of economic justice for so long. Although what
constitutes justice may vary from time to time and from
culture to culture, or depend on historical context, all forms
of justice are founded on the basis of ethical assumptions that

Bahá’u’lláh. Tablets, p. 64.
World Bank Report 2012.
Distributive Justice

include ideas about morality, fairness, and the law. Issues
related to extremes of wealth and poverty and the justification
of principles of equity and equality have been raised and
discussed by contemporary economists such as Amartya Sen,
Thomas Piketty, John Rawls Michael Sandel, Kate Pickett
and others. The role of government is also crucial in
administering distributive justice to balance the economy and
the Bahá’í literatures support such intervention.

The key feature of this chapter is to discuss the relationship
between distributive justice and human well-being. The study
includes discussing a number of principles that lead to
prosperity for all members of society, advocated by the
central figures of the Bahá’í Faith. The meaning and
significance of wealth will also be explored, hence discussing
the impact of distributive justice on the Bahá’í community
and in the wider society.

The concept of distributive justice can be understood and
discussed either at a microeconomic level as the moral
assessment of individual and firms or at a macroeconomic
level as the moral assessment of collective decisions for the
whole economy.

4.2 Significance of distributive justice
Academic economist, Thomas Piketty, in his book Capital
for the 21st Century states: ‘The distribution of wealth is one
of today’s most widely discussed and controversial issues.’3
Piketty is concerned about the long-term evolution of wealth.
He raises questions such as do the dynamics of private capital
accumulation inevitably lead to the concentration of wealth in

Thomas Piketty. Capital in the Twenty-First Century, London: The Belknap
Press of Harvard University, 2014, p. 1.
Economics and the Bahá’í Faith

ever fewer hands? This aspect of wealth redistribution and its
accumulation in the hands of few was what Karl Marx was
also concerned with in the 19th century. Piketty wondered if
the balancing forces of growth, competition and
technological progress would lead to reduced inequality and
greater harmony among the classes in the latter stages of
development? This feature of wealth redistribution created
interest and was discussed by economist Simon Kuznets4 in
the 20th century.

According to Bryan Graham ‘The exploration of the Bahá’í
teachings on economics has occupied an important place in
the redistribution of income and wealth, which in return has
an important effect on the Bahá’í community.’5 The Bahá’í
concept of well-being in relation to distributive justice needs
to be explored. In the Bahá’í literature, the notion of well-
being and prosperity has been shifted from individual to
collective well-being. There are numerous references
confirming this view. For example, ‘Abdu’l-Bahá states
‘prefer the general well-being to your personal well-being.’6
How challenging is the notion of preferring the well-being of
others to one’s own comfort and happiness? So far, limited
research has been done in this regard, but there are numerous
examples of charitable work and philanthropist activities by
people, poor and rich, sacrificing their own comfort to bring
comfort to the lives of others. There is a positive correlation a
between willingness to sacrifice one’s own material well-
being and distributive justice. The more people contribute

Simon Smith Kuznets suggested a measure of income inequality that can be
derived from the ratio of the incomes received by the top 20% and bottom 40% of
the population. The ration is used as a measure of the degree of inequality
between high and low-income group in a country (See: Todaro and Smith, p. 196).
Bryan Graham. ‘The Bahá’í Faith and Economics: A Review and Synthesis,’
Bahá’í Studies Review, vol.7, 1997, pp. 1-10, at p. 1.
‘Abdu’l-Bahá. Divine Philosophy, p. 111.
Distributive Justice

sacrificially, the more effective is distributive justice, and
hence in the long run there may be less government
involvement in conducting wealth redistribution. However,
the subject of distributive justice has been given much
attention by governments and it is implemented relatively
better in developed than in developing countries. There are
several reasons for this difference, for example, more
availability of resources, higher quantity and quality of
education, more wealth creation, more opportunities for
women to participate in economic activities, and more
emphasis on order and discipline in public institutions. It
seems the best possible way would be a combination of
human consciousness and government participation for
conducting wealth distribution in the society.

In one of his Writings, Shoghi Effendi interpret the term
‘sacrificially’, he writes, ‘For after all it is not so much the
quantity of one’s offerings that mattes, but rather the measure
of deprivation that such offerings entail.’ 7 In its simplest
terms, giving sacrificially means giving so that it hurts.
Putting another way, if one donates an amount that the person
does not really miss, it may be giving, but it is not a sacrifice.

Economics and religion agree that redistribution of income
and wealth is necessary and desirable. Religion is more a
general term, but in theory, taking care of the poor is
encouraged in all Faiths. For example, in the Jewish tradition
wealth redistribution includes compassion for those who
could not help themselves, care for the stranger, and charity.8

Shoghi Effendi. Quoted in Life Blood of the Cause, a Compilation, Haifa: Bahá’í
World Centre, 1970. p. 10.
For a discussion of redistribution of wealth in Judaism see: Jill Jacobs and
Simon Greer. There Shall Be No Needy: Pursuing Social Justice through Jewish
Law and Traditions, VT: Jewish Lights Publishing, 2009, p. 142.
Economics and the Bahá’í Faith

The Christian tradition of redistribution of income and wealth
dealing with poverty is the parable of the ‘Good Samaritan,’
which is helping the stranger, sharing of resources, loving the
enemy, supporting and healing, security for all, getting the
poor back on his or her feet, and being fully integrated in the
life of those in need. 9 Similarly, the Islamic tradition of
dealing with the issue of poverty through income and wealth
redistribution includes the basic principles of sharing, the law
of Zakát (Zakáh), sincere spirit of generosity, and Islamic
finance, which is the rejection of interest on borrowing.10 The
spirit of the parable of the Good Samaritan in Christianity
and Zakát in Islam are examples of religious duty with deep
spiritual implications and is therefore a form of worship. In
the Bahá’í scriptures the rich are given the responsibility of
taking care of the poor. Addressing the rich, the founder of
this Faith states, ‘O ye rich ones on earth! The poor in your
midst are My trust, guard ye My trust, and be not intent only
on your own ease.’11 In this passage the rich are directed to
take care of the poor. It requires a great amount of material
sacrifice and spiritual enrichment to guard the poor.
However, directing the wealthy Bahá’ís does not exclude the
poor from taking responsibility for their own lives. For
example, Shoghi Effendi states that ‘Every individual, no
matter how handicapped and limited he may be, is under the
obligation of engaging in some work or profession.’ 12 The
term handicapped may raise a question as to how one would
expect a handicapped person to work and whether this refers

For an in-depth discussion of redistribution of wealth in Christianity see: Max
Stackhouse. ‘Economic Justice: Stewardship of Creation in Human Community,’
On Moral Business, New York: Eerdmans Publication, 1995, pp. 430-434.
For a discussion of Zakát and redistribution of wealth in Islam see: William
Shepard, Introducing Islam, London: Routledge Taylor and Francis Group, 2009,
pp. 90-91. Also see: Saeed Javaid, Islam and Modernisation, London: Westport
Connectticut, 1994, p. 58 and p. 102.
Bahá’u’lláh. Hidden Words (from Persian translation), no. 54.
Shoghi Effend. Directives, p. 47.
Distributive Justice

to someone with physical or mental disability. No further
explanation is found in the Bahá’í Writings of the exact
nature of the term handicapped. However, it may be argued
that the effectiveness of the use of a disabled person to work
depends on the availability of social and medical services
along with technological advancement to support such people
to be engaged in some kind of work they can do. In
developing countries, more attention is paid to ensure people
with physical and mental disabilities receive appropriate
support to engage in some form of profession, which
improves their sense of well-being, as well as allows them to
be me productive members of the society.

Andrew Crane and Dirk Matten define justice as ‘The
simultaneously fair treatment of individuals in a given
situation with the result that everybody gets what they
deserve.’13 The crucial ethical issue with this definition is the
question of what exactly ‘fairness’ means and by what
standards we can decide what a person might reasonably
deserve. According to Beauchamp and Bowie, theories of
justice typically see fairness in two main ways. First, fair
procedure, which is determined according to whether
everyone has had an equal opportunity to achieve what is
needed for a just reward for one’s efforts (procedural justice).
Second, fair outcomes, which are determined according to
whether the consequences are distributed in a just manner
(distributive justice).14

Bahá’í scholar Udo Schaefer defines distributive justice as a
pattern that ‘regulates the distribution of goods, benefits and

Andrew Crane and Dirk Matten. Business ethics, p. 92.
Beauchamp and Bowie. ‘Ethical theory of Business’, Journal of Business
Ethics, vol. 7, no. 11, November 1988, pp. 846-860.
Economics and the Bahá’í Faith

burdens in the sharing of the common good.’ 15 Existing
economic systems, such as ‘the free-market economy’ and
‘planned economy’, have adopted a different pattern of
regulating a just distribution of income and wealth in an
economy. The first one is called ‘commutative justice’ 16 ,
where it is held that each person should receive income in
proportion to the value of labour and capital they have
contributed to the productive process. According to Alan
Griffiths and Stuart Wall, this view underlies the ideology of
the free-market economy. The second view is called
‘distributive justice’. In this view, it is believed that people
should receive income according to their need. Given that
people’s needs are much the same, ‘distributive justice’ 17 ,
according to Griffiths and Wall, implies approximate equality
in income distribution. This view underlies the ideology of
socialism. In the Bahá’í Writings, the advantages of both
systems are considered for effective wealth redistribution.
For example, there are references that both private and public
sectors play an important role in the pattern of regulating an
economy’s resources. Hence, a distinguishing factor
separating the two systems of ‘planned’ and ‘free-market
economy’ is the judgement of government in the distribution
of resources among its citizens.

Is social justice about equality or equity? It can be argued that
the goal of social justice is for people to be equal. Richard
Wilkinson and Kate Pickett argue that ‘more equal societies
tend to be more creative.’ 18 For example countries which

Udo Schaefer. Bahá’í Ethics in Light of Scripture, vol. 2, Oxford: George
Ronald, p. 418.
Griffiths and Wall. Applied economics, 9th ed., London: Pearson Education,
2001, p. 336.
Griffiths and Wall. Applied economics, p. 336.
Richard Wilkinson and Kate Pickett. The Spirit Level: Why Equality is Better
for Everyone, London: Penguin Books, 2010, p. 225.
Distributive Justice

practicing gender equality and religious freedom are more
creative and economically more advanced. However, from a
Bahá’í perspective when discussing distributive justice from
purely monetary standpoint, equity is preferred to equality.
The Bahá’í Writings suggest equality in opportunity, to
ensure that prospect of access to material and social resources
are justly and fairly distributed. Confirming this view Shoghi
Effendi said, ‘It is the duty of those who are in charge of the
organization of society to give every individual the
opportunity of acquiring the necessary talent in some kind of
profession, and also the means of utilizing such a talent, both
for its own sake and for the sake of earning the means of his
livelihood.’19 The view is that each individual’s talents and
abilities are different and hence their economic contribution
to society varies, but, opportunity should be there for all.
However, aside from equality in dignity and worth, human
beings are not born the same. Therefore, the Bahá’í view is
that every human is unique, and that human beings are not
the same.

4.3 Contemporary theories of distributive justice
The problem of just distribution of wealth at different times
and in different societies has been addressed in various ways
and has been affected by diverse economic and philosophical
views. Just distribution generally falls between the two
extreme views of egalitarianism and non-egalitarianism. The
egalitarian 20 approach claims that justice is the same as
equality. The view expresses that burden and rewards should
be distributed equally. Hence, according to Beauchamp and

Shoghi Effendi. Directives, p. 74.
For egalitarian approach, the doctrine that moral and political life should be
aimed at respecting and advancing the ‘equality of persons,’ See: Joseph Carens.
Equality, Moral Incentives, and the Market – An Essay in Utopian Politico-
Economic Theory, Chicago: The University of Chicago Press, 1981, p. 4.
Economics and the Bahá’í Faith

Bowie ‘deviation from equality is considered as unjust.’ 21
According to Peter Lambert’s interpretation, egalitarianism is
a process of ‘a rich-to-poor income transfers…and a more
equal subdivision of any fixed cake will be recommended.’22
For Joseph Carens, however, equal distribution of income or
‘egalitarian system’ is combined with economic efficiency,
freedoms as a private property market system, and moral
incentives as a major source of motivation for economic
activities. Consequently, the situation that 80% of the world’s
resources are owned by 20% of the world population is
clearly unjust to an egalitarian. On the other hand, non-
egalitarians claim that justice in an economic system is
ultimately a product of the fair process of free-markets.
Buyers with certain needs would meet sellers who can
respond to the needs. If the two parties agree on a transaction,
then the market forces of supply and demand determine
justice. This view is popularly associated with the work of
Adam Smith. Obviously these two extreme answers to the
question of what exactly justice means in an economic
context are unsatisfactory. The answer might well lie in
between the two. A very popular approach to this problem
has been proposed by John Rawls23 (1971). In his theory, he
suggests two criteria for achieving justice:
First, each person is to have an equal right to the most
extensive total system of basic liberties compatible
with a similar system of liberal for all. Second, social
and economic inequalities are to be arranged so that
they are both: a) the greatest benefit of the least

Beauchamp and Bowie, Journal of Business Ethics, pp. 846-860, at p. 849.
Peter Lambert. The Distribution And Redistribution of Income, 2nd ed.,
Manchester: Manchester University Press, 1993, p. 56.
John Rawls. His theory of justice as fairness envisions a society of free citizens
holding equal basic rights cooperating within an egalitarian economic system. His
Writings on the law of peoples extend these theories to liberal foreign policy, with
the goal of imagining how a peaceful and tolerant international order might be
possible. (The Oxford Dictionary of Philosophy, 2nd ed., Oxford University Press,
2006, p. 308.)
Distributive Justice

advantaged; and b) attached to offices and positions
open to all under conditions of fair equality of
opportunity.24

The first principle states that before allowing for any
inequalities we should ensure that the basic freedom is
realised to the same degree for everyone affected by the
decision. The first condition thus looks to general human
rights and requires their fulfilment before we would be able
to proceed to the next step.

In economics, several reasons have been put forward for a
just redistribution of wealth and income. In the nineteenth
century, utilitarian including Jeremy Bentham (1748-1832)
and John Stuart Mill (1806 - 1873) proposed that as income
increases, the additional satisfaction from it decreases.25 They
refer to the application of the law of diminishing marginal
utility. The law states that as people consume more of a good,
the utility gained from each successive unit declines. The
utilitarian, therefore, believes that transferring income and
wealth from the rich to the poor would increase the total
human well-being and happiness. This is because the poor
would get more satisfaction than the rich from each pound
transferred. Some elements of this theory of redistribution are
supported in the Bahá’í Writings. However, there are
disagreement in some areas, for example, ‘Abdu’l-Bahá’s
view is that wealth is commendable if the whole society
benefits from it. This view supports the utilitarian view of
redistribution to increase the total human well-being and
happiness. However, the nature of human well-being and
happiness need to be clarified. True happiness in the Bahá’í
Writings includes both material and spiritual.
John Rawls. Stanford Encyclopedia of Philosophy, revised edition 2014.
John S. Mill. Utilitarianism, George Sher (ed.), 2nd ed., Cambridge: Hacket
Publishing Company, 2001, p. 7.
Economics and the Bahá’í Faith

Another view maintains that some people have altruistic
elements in their nature and behaviour and are willing to
transfer some of their wealth to those who are worse off than
themselves. Altruism is said to exist when one individual’s
well-being contains elements of both the individual’s own
well-being and that of others. This benevolent act improves
their standard of living. The fact that there are many charity
organizations helping to improve the lives of the poor is
supporting such altruistic redistribution. The view that
voluntary giving of one’s possession encouraged in the
Bahá’í Writings supports the notion of altruistic nature of
human beings.

Marxists put forward a more left-wing reason for economic
redistribution. They advocate that the market takes money from the
poor by market power, and therefore the poor are justified by
taking the money back by political means and other means such as
strike.26 The Bahá’í Writings denounce the exploitation of the poor
and of workers and hence justify government intervention in the
market, to redress the balance. However, strike is not an option.
‘Abdu’l-Bahá states, ‘Today the method of demand is the strike
and resort to force, which is manifestly wrong and destructive of
human foundations. Rightful privilege and demand must be set
forth in laws and regulations.’27

A more philosophical view of the redistribution of wealth is put
forward by John Rawls, which is based on justice. According to
this theory, when thinking about redistribution one should not
consider where she or he is in the income distribution. Samuel

For a discussion about strike from a Bahá’í perspective see: ‘Abdu’l-Bahá,
Some Answered Questions, pp. 315-320.
‘Abdu’l-Bahá. Promulgation of Universal Peace, p. 238.

Distributive Justice

Freeman discusses the original position of John Rawls’s social
contract account of justice, ‘justice as fairness,’ set forth in A
Theory of Justice. According to Freeman:
It is designed to be a fair and impartial point of view
that is to be adopted in our reasoning about
fundamental principles of justice. In taking up this
point of view, we are to imagine ourselves in the
position of free and equal persons who jointly agree
upon and commit themselves to principles of social
and political justice.28

Rawls views of ‘justice as fairness’ are compatible with
Bahá’í understanding of this concept. For example, Rawls
contends that the most rational choice for the parties in the
original position are two principles of justice: The first
guarantees the equal basic rights and liberties needed to
secure the fundamental interests of free and equal citizens
and to pursue a wide range of basic needs. The Bahá’í
Writings advocate the provision of basic needs and social
welfare program for all citizens, including: providing the
basic needs for all; providing work for all; providing
Insurance for all; the establishment of special places for
needy people; and the establishment of moral and educational
institutions with special regard to health and safety. The
second principle provides fair equality of educational and
employment opportunities enabling all to a fair standard of
living including income and wealth. Hence, in this category
wage differential is recognized as being fair. A formula
closely conveys the Baha’i view of wealth distribution states
that from each according to one’s ability and to each
according to one’s productive contribution to society.
Consequently, wage differential exists which is based on
one’s level of education, skills, experience, ability and

Samuel Freeman. Stanford Encyclopedia of Philosophy, 1996.
Economics and the Bahá’í Faith

talents.

Another economic argument in favour of redistribution of
income and wealth is based on market failure. Market failure
is the misallocation of resources, or when the economy is not
balanced. Hence, unemployment and the presence of
extremes of wealth and poverty is clearly a market failure. To
avoid the risk of extremes of wealth and poverty and
maintaining a fair standard of living, government intervention
is essential and the Bahá’í Writings support such
intervention. It can be said that if everyone lives in the same
society with the same income distribution, then the results
were straightforward: each altruistic individual will benefit
when any other such individual contributes to the well-being
of the poor, and so each will have an opportunity to benefit
from it. However, we are not living in such an environment.
Therefore, at a governmental level redistribution of income
and wealth takes place by a number of means. For example,
taxes are used to pay for public expenditure; the tax system
can be structured so that richer people pay a higher
proportion of this expenditure. A substantial part of public
expenditure consists of benefits to people in need of help
from the state in the form of subsidies.

4.4 Bahá’í perspective on importance of wealth
The concept of wealth is difficult to define or measure
because it is mainly a stock of assets such as house, land or
personal possessions and accumulated money; therefore, it is
different from income. Income is a flow and wealth are a
stock. If we define wealth as the abundance of valuable
possessions and assets, then it is difficult to measure because
they can be appreciated or depreciated. Commenting on
Adam Smith’s The Wealth of Nations, and on the difficulty
with defining certain economic terms, economist Spencer
Distributive Justice

Pack writes:
Many technical economic problems trouble Adam
Smith, much as they have troubled economists ever
since. For example, how will one accurately
measure…the wealth of a nation? And what
determines the distribution of income [and wealth]
among the various social classes of modern society?29

Pack found no evidence of how the level of wealth created in
a nation via production activities could be measured. This
suggests that the main concern of Smith was the creation of
wealth and not how to measure it. Smith also did not pay
much attention to the distribution of wealth; it was David
Ricardo 30 , another founder of the school of classical
economics, who discussed this subject. In the Bahá’í
Writings the acquisition of wealth is not condemned, but true
wealth has been interpreted differently. The terminology ‘true
wealth’ is used here and is interpreted as the coherence
between material and spiritual well-being. For example,
detachment from the material world is praised without
condemning one’s material riches. 31 This may seem
contradictory as normally material wealth and attachment to
it go hand-in-hand. The complexity arises when one values
material richness over and above a balanced life. Bahá’ís are
directed that they would be happier if the spiritual aspects of
their lives are fulfilled and developed alongside the material.
And for the wider society it is stated that ‘only when material
and spiritual civilization are linked and coordinated will

Spencer Pack. Capitalism as a Moral System – Adam Smith’s Critique of the
Free-market Economy, London: Edward Elgar Publishing Company, 1991, p. 11.
David Ricardo (1772-1823) is a British Economist. He opposed the
protectionism and arguing for free trade or what today called comparative
advantage. Ricardo explained that as more land was cultivated, farmers would
have to start using less productive land.
‘Abdu’l-Bahá said: ‘Our greatest efforts must be directed towards detachment
from the things of the world …’ (Paris Talks, p. 85.)
Economics and the Bahá’í Faith

happiness be assured.’32

Moreover, wealth is appreciated if it is acquired legitimately
through honest work and is spent sensibly. In the following
statement Bahá’u’lláh describes the attainment of wealth by
one’s own efforts and hard work as desirable after reaching
maturity. As stated in earlier discussion, Bahá’u’lláh said,
‘Having attained the stage of fulfilment and reached his
maturity, man standeth in need of wealth.’ 33 The stage of
fulfilment and reaching maturity in the light of this discussion
can be interpreted as attaining a high level of human
consciousness where the acquisition of wealth becomes
worthy, if achieved through appropriate means and expended
for the common good. Similarly, in the following statement
from ‘Abdu’l-Bahá, he describes how wealth should be
acquired and how to be spent. He said, ‘Wealth is
praiseworthy in the highest degree, if it is acquired by an
individual’s own efforts and the grace of God, in commerce,
agriculture, art and industry, and if it be expended for
philanthropic purposes.’34 According to this passage, the first
condition for acquiring wealth is that it must be earned by
one’s own efforts. This confirms the need to work and be a
productive member of the community. The second condition
is that the income earned be spent on charitable and
philanthropic activities. This is an indication that the Bahá’í
community is directed towards attaining a culture of
philanthropic, humanitarian and benevolent activities.

For further analysis of wealth creation there is a need to make
a distinction between ‘means’ and ‘ends’, otherwise what is a
mere instrument could become the main goal of an individual

‘Abdu’l-Bahá. Promulgation, p. 110.
Bahá'u'lláh. Tablets, p. 34.
‘Abdu’l-Bahá. The Secret, p. 4.
Distributive Justice

in life. Expounding on this, the Universal House of Justice,
addressing the Bahá’í community, stresses that the
acquisition of wealth as a means for achieving higher ends
such as meeting one’s basic needs, promoting the welfare of
society, and contributing to the establishment of a world
civilisation, is praiseworthy. 35 Exploring the concept of
wealth and the justification for acquiring it, the Universal
House of Justice states, ‘However constructive and noble the
goal, however significant to one’s life or to the welfare of
one’s family [wealth] must not be attained through improper
means.’ 36 The House of Justice continue by stating that
‘Regrettably, a number of today’s leaders - political, social,
and religious - as well as some of the directors of financial
markets, executives of multinational corporations, chiefs of
commerce and industry, and ordinary people who succumb to
social pressure and ignore the call of their conscience, act
against this principle; they justify any means in order to
achieve their goals.’37 Examples of ‘improper means’ in our
present condition of society can be the use of offshore
investment to avoid paying taxes. Holding money in an
offshore company is generally not illegal, although such
financial arrangements can be used in illegal ways - for
example, to facilitate tax evasion or money laundering. The
world’s wealthy and globally active corporations use every
means available to protect their wealth by hiding them from
the eyes of revenue authorities. In other words, most of what
has been happening in recent time is about hiding the true
owners of money, the origin of the money and avoiding
paying tax on the money. Other examples of improper means
include using child labour or paying low wages to increase
profit; unfair trade through aggressive competition; or any

Universal House of Justice. Ridván Message, April 2012.
Ibid.
Ibid.
Economics and the Bahá’í Faith

activities that lead to the destruction of the environment.
Wealth can be a blessing or a curse, depending on one’s
attitude towards it.

Amartya Sen 38 has commented on the two elements of
‘means’ and ‘ends’. He is establishing an association between
‘means’ and ‘ends’ to commodities and to a level of
‘functioning’ in life. He writes:
The commodities over which a person had command
were, after all, only a means to an end, and that end
was a level of functioning in life, being able to live the
kind of life that one values. This ‘functioning’ was
subject to objective measurement as well: life
expectancy, infant mortality, literacy, morbidity,
political participation and so on.39

Sen was concerned that the average longevity of a resident of
a poor neighborhood in New York is less than that of a
resident of Bangladesh, despite the fact that not only
incomes, but real incomes, are many times higher in some
parts of New York than in Dhaka, the capital city of
Bangladesh. 40 Sen’s view helps to better understand the
legitimacy of wealth on how it is obtained and how it is spent
in relation to ‘means’ and ‘ends’.

The concepts of ‘end’ and ‘means’ are also stated in the
Writings of Bahá’u’lláh. Addressing Bahá’ís he said, ‘It is
incumbent upon each one of you to engage in some
occupation…Hold ye fast unto the cord of means and place
your trust in God, the Provider of all means.’41 This passage

Amartya Sen worked on more practical problem of measurement and famine,
including his study of the 1974 Bangladesh famine that concluded that the root
cause of famine was political rather than agricultural.
Amartya Sen. Equality of What, Cambridge University Press, 1980, P. 37.
Ibid.
Bahá’u’lláh. Aqdas, verse 33.
Distributive Justice

appears to imply that one should work to earn a living and
that money is a ‘means’, not an ‘end’. The indication is that
our economic models cannot reduce all values to money or
what is known as ‘commoditization’ 42 in a competitive
market. Also, policies, which internalise negative
externalities, should be carefully evaluated so as not to foster
attitudes of self-satisfaction and selfishness. ‘Negative
externalities’ is where the actions of an individual or a firm
have impacts on others for which they do not pay, such as
damaging roads and polluting the air by driving a car.
Internalising negative externality means that in this example
car drivers are responsible to pay the cost of road
maintenance and pollution. In a similar fashion it should be
noted how economic theory with its self-interest
utilitarianism has reduced everything to commodities. To
avoid these difficulties, there is much guidance as to how to
weigh carefully the difference between gaining wealth in
fields such as agriculture, commerce, the arts and industry,
and in obtaining it without effort or through improper means.

Alternatively, Bahá’u’lláh describes the relationship between
human station and wealth in the following words, ‘I have
created thee rich and have bountifully shed My favour upon
thee.’ 43 Also, he said, ‘I created thee rich, why dost thou
bring thyself down to poverty?’ 44 There can be several
interpretations of the above two passages, which are very
similar. For instance, the main facet could be with the moral
aspect of human beings, but it could also be applied to the
material characteristics. The concept of ‘rich’ can be
interpreted as both material and spiritual richness. Patrick
Barker’s interpretation is in respect of the use of all the

John Sloman. Economics, 6th ed., London: Pearson Education, 2006, p. 157.
Bahá’u’lláh. Hidden Words (from Arabic translation), no. 11.
Ibid. no. 13.
Economics and the Bahá’í Faith

bounties created for humans. In his view, ‘we have been
created to be rich, both materially and spiritually, and are
endowed with a nobility of the highest order.’ 45 Another
interpretation of ‘I have created thee rich’ is in reference to
human potential and not material richness. However,
changing from a condition of poverty to prosperity, either
materially or spiritually, requires a transformation. In order to
achieve human potential, including financial freedom there is
a need for effort and persistence, and one needs to persevere
and reprioritise one’s thinking so that prosperity is seen as a
normal way of life. Bahá’ís are advised to ‘Put away all
covetousness and seek contentment.’ 46 However, attaining
happiness and prosperity for one who is without sufficient
means can become a challenge. In this case for pursuing
progress; contentment with little or no means is not the way
forward. With regard to human potential ‘Abdu’l-Bahá states,
‘Through the restoring waters of pure intention and unselfish
effort, the earth of human potentialities will blossom with its
own latent excellence and flower into praiseworthy
qualities.’47 Therefore, rather than focusing on one’s material
advancement only, one should aim to develop the vast
inherent potentials through unselfish acts and service to
others. However, individuals must be helped to channel these
qualities towards their own development as well as for the
betterment of the wider society.

4.5 Bahá’í view on self-interest
A fundamental premise of Adam Smith’s economic paradigm
is that we are naturally endowed with a powerful ‘desire of
bettering our condition, a desire which, though generally
calm and dispassionate, comes with us from the womb, and

Patrick Barker. Created Rich, Los Angeles: Naturegraph Publisher, 1995, p. 9.
Bahá’u’lláh. Hidden Words (from Persian translation), no. 50.
‘Abdu’l-Bahá. The Secret, p. 4.
Distributive Justice

never leaves us till we go into grave.’ 48 Also his famous
example of butchering tells us that, ‘It is not from the
benevolence of the butcher, the brewer, or the baker, that we
expect our dinner, but from their regard to their own self-
interest.’ 49 Also, Adam Smith in the Theory of Moral
Sentiments 50 states: ‘every individual…naturally prefer
himself to all mankind.’ These are powerful statements
supporting self-interest from the founder of scientific
economics, written in 1776.

For expounding this topic, it would be useful to make a
distinction between self-interest and selfishness, although
they are generally used synonymously. The clarification
depends on how we understand these terms in relation to
wealth creation and distributive justice. Self-interest is when
a person is concerned with his own well-being and engages
activities that benefit himself and fulfil his own desires,
which could also affect others positively. However, a selfish
person is excessively and exclusively concerned with
himself, purely seeking his own wishes and desires, without
regard for others. According to economist Michael Parkin ‘In
self-interest a choice has to be made and that choice is the
best one available for a person. Most people make most of
their choices in their own self-interest.’51 A Bahá’í view, on
the other hand, would be making choices that promote social
interest rather than self-interest. These choices would lead to
an effective and efficient use of resources and distribute
goods and services equitably among members of society.
Now that we have established that self-interest is about

Adam Smith. The Wealth of Nations, Tom Griffith (ed.), London: Wordsworth,
2012, p. 709.
Ibid. Edwin Cannan (ed.), Chicago: The University of Chicago Press, 1976, pp.
26-27.
Ibid. Theory of Moral Sentiments, p. 83.
Michael Parkin. Economics, 9th ed., London, Pearson Education, 2001, p. 5.
Economics and the Bahá’í Faith

making choices, then why not to make choices that are not
for the self-interest but for the social interest?

A person can wisely render many services for the benefit of
others that are not purely based on self-interest. John Stuart
Mill, an advocate of utilitarianism, argues that we should
train individuals to derive the greater utility from doing good,
and conversely, disutility from doing bad. Consequently,
utilitarian favours activities with ‘altruistic self-interest’.
They argue that caring for one’s own well-being will care for
someone else; or doing things for others, one would receive
some benefits as well. A commonly used saying ‘you scratch
my back, and I will scratch yours’ is an example of helping
others with the expectation of getting some benefits; it is a
kind of self-interest.

What an individual considers her or his self-interest depends
on what values they hold. This can vary from one individual
to another. Within a given culture, Carens argue ‘it may be
reasonable to assume that individuals share broadly similar
notions of self-interest because people within that culture will
have been inculcated in broadly similar values.’ According to
Bahá’í Writings, Bahá’ís are encouraged to adopt a culture of
service to humanity.

A similar point can be made with respect to the concept of
altruism. At least when used in contrast to self-interest.
Explaining the term altruism, Carens write:
The term seems to imply an element of self-reliance,
of foregoing something which is in one’s own interest
(or doing something against one’s interest) for the
sake of other people. But whether an action is
altruistic or not depends partly on how one defines
self-interest. Indeed, some people would claim that all
human action, even action which is apparently
Distributive Justice

altruistic, is ultimately self-interested.52

The term ‘altruism’ is used here to distinguish certain kinds
of motivation and behaviours in individuals such as
preference given to others and the act of service.

Bahá’ís are encouraged to strive to be free from all the above
approaches. The Bahá’í view is closer to enlightened self-
interest, which argues that the nature of human being is
altruistic and not egoistic. Persons who act to further the
interests of others ultimately serve their own interests.
Human beings should strive to reach to this level of
considerate. Bahá’u’lláh deters his followers from egoistic
activities and encourages them to pursue behaviours that
benefit all. He states: ‘Dissipate not the wealth of your
precious lives in the pursuit of evil and corrupt affection, nor
let your endeavours be spent in promoting your personal
interest...cling unto that which profiteth mankind.’53 ‘Abdu’l-
Bahá also condemns the pursuit of self-interest. He states:
Today, all the peoples of the world are indulging in
self-interest and exert the utmost effort and endeavour
to promote their own material interests. They are
worshipping themselves and not the divine reality, nor
the world of mankind. They seek diligently their own
benefit and not the common weal. This is because
they are captives of the world of nature and unaware
of the divine teachings.54

In this passage ‘Abdu’l-Bahá contrasts seeking self-interest
over seeking ‘the common weal.’ Is it possible to look at
‘Abdu’l-Bahá’s assertion as condemning the excessive
promotion of self-interest, rather than self-interest itself? In
weighing self-interest versus the common weal, one’s self-

Joseph Carens. Equality, Moral Incentives, and the Market, p. 121.
Bahá’u’lláh. Tablets, p. 138.
‘Abdu’l-Bahá. Selections, p. 103.
Economics and the Bahá’í Faith

interest is also included in the common weal. If one makes
efforts so that one’s community is prosperous, it would
ensure one’s own prosperity. But the challenge with this view
and this way of thinking is that it is much easier to think of
what is good for one’s own self than to understand what is
best globally and what is good for others. One suggestion
given here is to start with children, raising and educating
children with moral principles to be considerate,
thoughtfulness, and caring. These principles then need to be
practiced by families rather than simply state them.

A number of Bahá’í scholars have commented on the cause
and effect of self-interest. For example, Graham’s view is
that ‘self-interest is the single element most destructive to
well-being [and] lacking…the moral backbone in society to
construct, guide and set its parameters.’55 Rassekh goes even
further considering ‘Self-interest as indifference to the
welfare of other individuals, [even though he acknowledges
that] although this attitude may not injure other people, it
does nothing to alleviate their problems.’ 56 Graham and
Rassekh’s argument is based on absence of moral backbone
and altruistic behaviour in the society. However, the
difficulty is, how can we include altruistic behaviour such as
fairness and compassion in the economic diagrams? It is
argued that economics cannot effectively integrate moral
principles such as equity and justice into its utility curves. An
influential voice in such an argument was that of William
Jevons, who in the Theory of Political Economy was moved
to declare: ‘Economics, if it is to be a science at all, must be a
mathematical science. 57 However, from a mathematical
science perspective, moral values are extruded. Galbraith

Bryan Graham. Bahá’í Studies Review, p. 5.
Farhad Rassekh. The Journal of Bahá’í Studies, p. 3.
William S. Jevons. Quoted in Galbraith, A History of Economics, p. 125.
Distributive Justice

writes, ‘The detachment and the justifying commitment to
scientific validity as opposed to social concern are especially
influential in our own time.’ 58 Hence, when considering
scientific validity economists are not concerned with justice
and other moral issues. This leaves no room for actual
expansion of consciousness and the realizations of other
forms of being. The Universal House of Justice describe the
metaphor of ‘body’ used in the Bahá’í Writings; ‘Regard the
world as the human body’59 as follows:
In the human body, every cell, every organ, every
nerve has its part to play. When all do so the body is
healthy, vigorous, radiant, ready for every call made
upon it. No cell, however humble, lives apart from
the body, whether in serving it or receiving from it.
This is true of the body of mankind.60

The expansion of consciousness, together with the above
metaphor of the ‘body’ may point towards creating more
systemic models rather than ones based on individual
aggregates.

A more effective description of self-interest in the Bahá’í
literatures is in relation to human nature. The Bahá’í
teachings emphasise the duality of human nature. According
to ‘Abdu’l-Bahá, humans possess a spiritual or higher nature,
and a material or lower nature. He said, ‘In one he
approaches God, in the other he lives for the world alone.’61
According to him ‘The impulse of self-interest belongs to the
lower nature of human beings.’62 The virtue of benevolence
belongs to the higher nature of human beings and is a source
of human perfection and true happiness. In other words, true

Galbraith. History of Economics, p. 125.
Bahá’u’lláh. Gleanings, p. 254.
Universal House of Justice. Wellspring, p. 38.
‘Abdu’l-Bahá. Paris Talks, p. 60.
Ibid. Quoted in Waging Peace, p. 15.
Economics and the Bahá’í Faith

happiness is associated with the higher nature, and material
or physical happiness is related to the lower nature of human
being. John Stuart Mill presents similar views. He argues that
intellectual and moral pleasures (higher pleasures) are
superior to more physical forms of pleasure (lower
pleasures).63

But human beings are able to overcome their own self-desires
to promote the common good. F. Rassekh argues that such
pronouncements against the pursuit of self-interest and self-
love, however, do not constitute a rejection of the market
economy.64 For example, Bahá’u’lláh allows charging interest
on financial loans, which is a characteristic of the market
economy. Also, ‘Abdu’l-Bahá considers commerce to be one
of the ‘vital agencies which would constitute an immediate
remedy for society’s chronic ills.’ 65 Moreover, he states,
‘Wealth is most commendable, provided the entire population
is wealthy.’66 Commenting on the Writings of ‘Abdu’l-Bahá,
Rassekh maintains the view that ‘Indeed by encouraging
commercial activities, ‘Abdu’l-Bahá endorses a fundamental
tenet of the market system that commercial pursuits are
beneficial to society.’67 However, as Shoghi Effendi stated,
the Bahá’í Faith rejects the doctrine of laissez faire, which is
the extreme version of a free-market economy. It is stated:
In the Bahá’í economic system of the future, private
ownership will be retained, but will be controlled,
regulated and even restricted. Complete socialization
is not only impossible but most unjust, and in this the
Cause is in fundamental disagreement with the
extreme socialists or communists. It can also not agree
with the other extreme tendency represented by the

John Stuart Mill. Utilitarianism, p. 8.
Farhad Rassekh. Electronic correspondence, 14 January 2015.
‘Abdu’l-Bahá. The Secret, p. 39.
Ibid. p. 24.
Farhad Rassekh. The Journal of Bahá’í Studies, P. 2.
Distributive Justice

‘laissez faire’ or individualistic school of economics
which became very popular in the 18th century and
which is still supported, in certain of its essential
features, by the so-called democratic countries.68

Nader Saeidi relates the topic of human nature, self-interest
and selfishness to the issue of ‘order’, associating it with the
Writings of the political theorist of the seventeenth century
Thomas Hobbes (1588-1679). The question posed by Hobbes
is normally called the Hobbesian problem of ‘order’. In his
famous book, Leviathan, Hobbes investigated the basis of
order in society. According to Hobbes, human beings are
naturally selfish, aggressive, concerned with the pursuit of
their own interests, and yet rational. Hobbes argued that in
the state of nature, humans will use any means to get what
they want, and they will not refrain from stealing or murder.
This view contradicts earlier notion that humans are
fundamentally altruistic. It is due to this lower nature that
according to ‘Abdu’l-Bahá ‘he expresses untruth, cruelty and
injustice.’ 69 Hobbes’ solution to the problem of order is
rooted in his definition of human nature. Expounding on
Hobbes’ view, Saeidi writes:
By the term rational Hobbes means that people will
try to maximize their pleasure and minimize their
costs. In other words, rational people will follow their
selfish interests efficiently and effectively. Since
humans are rational, they understand that the state of
nature is harmful to them and contradicts their
interests. Therefore, because of their selfishness
humans decided to engage in a social contract in order
to create laws and political institutions so that the fear
of punishment by a strong and dictatorial state would
prevent selfish individuals from committing criminal
acts. Order, therefore, is the product of the fear of
punishment and coercion…Order in other words was
believed to be based upon a combination of rational
selfishness of humans and their fear of legal
punishment. The inadequacy of this rationalistic

Shoghi Effendi. Letter dated 25 August 1939.
‘Abdu’l-Bahá. Waging Peace, p. 15.
Economics and the Bahá’í Faith

conception of order became increasingly evident in
nineteenth-century sociology and political theory.
Modern social and political theory not only affirmed
the normative and symbolic character of human action
and motivation but also reconceptualised the relation
of individuals in society in terms of new ideas like
solidarity, common bond, common religion, shared
values, shared culture, legitimacy, and normative
integration.70
Saeidi’s argument in analysing Hobbes’ view is that the
Hobbesian solution to the problem of order was not sufficient
and considers the notion of ‘order’ from a Bahá’í perspective,
he writes:
Bahá’u’lláh’s concept of order should be understood
in terms of this theoretical problem. In His Writings,
Bahá’u’lláh emphasized that a system of reward and
punishment is a necessary but not sufficient condition
for the maintenance of order in society. According to
Bahá’u’lláh, order requires reward and punishment
but also internalized moral values, religious belief,
and love of humanity.71

Therefore, Bahá’u’lláh’s concept of order, according to
Saeidi, is directly opposed to the western enlightenment’s
concept of order. For the latter, human reason and selfish
orientation guarantee social order, and do not consider a need
for religion and divine guidance in human life. Bahá’u’lláh,
conversely, regards the question of order as a proof of the
need for religion and divine revelation in human history.

4.6 Voluntary versus compulsory giving
A Bahá’í moral principle about distributive justice is that of
voluntary sharing of one’s income and wealth. Bahá’u’lláh
states, ‘To give and to be generous are attributes of Mine;

Nader Saeidi. ‘An Introduction to ‘Abdu’l-Bahá’s The Secret of Divine
Civilisation, Converging Realities,’ Switzerland: Landegg Academy, 2000.
Ibid.
Distributive Justice

well is it with him that adorneth himself with My virtues.’72
The founder of this Faith has given great responsibility to the
wealthy to take care of the poor. However, the rich should
voluntarily carry out such responsibility for human prosperity
and well-being because they have greater resources. The
benevolent behaviours of compassion and generosity are
examples of virtues required for an effective voluntary
sharing. This approach is considered to be highly effective
because it is done freely as a matter of choice rather than
being forced to give. Confirming this, Bahá’u’lláh states ‘The
beginning of magnanimity is when man expendeth his wealth
on himself, on his family and on the poor among his brethren
in the Faith.’ 73 And ‘Abdu’l-Bahá maintains that ‘The
harvest of force is turmoil and the ruin of the social order.’ 74
By reflecting upon the above two passages, it would appear
that the spiritual laws of prosperity not only deal with
receiving but also with giving. It is stated that ‘It will not be
possible in the future for men to amass great fortunes by the
labours of others.’ 75 Whether this is because in the future
humanity will become morally more conscious or the
government regulations become more effective for creating
distributive justice, it is clear that at this time there is greater
material prosperity in those countries with an effective
regulation of wealth redistribution.

On one hand, Bahá’u’lláh has given the responsibility to the
wealthy to take care of the poor. On the other hand, ‘Abdu’l-
Bahá comments that the poor should not force the rich people
to share their wealth. He said, ‘sharing is a personally chosen
righteous act: That is, the rich should extend assistance to the

Bahá’u’lláh. Hidden Words, (from Persian translation), no. 49.
Bahá’u’lláh. Tablets, p. 156.
‘Abdu’l-Bahá. Selections, p. 115.
‘Abdu’l-Bahá. Cited in Bahá’u’lláh and the New Era, p. 145.
Economics and the Bahá’í Faith

poor, they should expend their substance for the poor, but of
their own free will, and not because the poor have gained this
end by force.’ 76 Yet this may become a challenge for both
groups. It can be a challenge for the rich to share a portion of
their wealth voluntarily with those who are not known to
them. Also, it is a challenge for the poor not to expect or try
to gain this by force. The process leading to distributive
justice morally requires a great deal of Faith and obedience to
the teachings of the Faith. It is in this way that the Bahá’í
community can function in a more secure and orderly
manner. ‘Abdu’l-Bahá clarifies this point by advising Bahá’ís
that this will be a gradual process in the Bahá’í community.
He said, ‘[the rich] will come to this gradually, naturally, by
their own volition.’ 77 There are evidences in the Bahá’í
community that this gradual process is taking place. For
example, the entire expenses of the activities of the Bahá’í
community at a global level are supported and paid for by
Bahá’ís only. Another condition put forward by ‘Abdu’l-
Bahá for the rich to share their wealth willingly is for them to
become more sensitive and show compassion towards others.
He said: ‘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 deploring poverty about him.’78 At the
same time, voluntary giving in the form of ‘in-kind’ or
‘development projects’ is well-known today.

However, in the analysis of the principle of voluntary giving
of one’s possession, the system may jeopardize the
importance of a number of public services such as education

Ibid.
Ibid.
Ibid. Cited in Star of the West, ‘The Economic Teaching of ‘Abdu’l-Bahá,’ vol.
viii, no. 1, 21 March 1917, p. 6.
Distributive Justice

and health and security. This will be too risky. This principle,
also, can be challenged on the basis of a number of other two
issues. Voluntary giving may not necessarily eliminate
poverty. The reason is that such voluntary giving may
provide a reason for some people never to work and may
create a culture of dependency. Also, the financial aspects of
a community, of a nation, and of the world cannot be built on
a system based only on voluntary giving. No country can plan
its public finances on such totally unpredictable sources of
revenue. The shortcomings of a system of ethics based solely
on voluntary giving of one’s possession may jeopardize the
importance of a number of public services such as education
and health and security. This will be too risky.

Therefore, in the wider society the process adopted through
taxation is more practical, though it may not be an ideal one.
As it is commonly practiced in the wider society, the method
of distributive justice is mainly through government
intervention through regulatory bodies for using taxation and
different types of subsidies. The effectiveness, however,
depends on how the level of corruption and misuse of
financial resources either in the public or private sectors
affect a country, or how the distributive justice affects the
economic growth of a country.

Another argument against voluntary giving is that humans are
driven by instincts to survive and satisfy their base desires.
Hence, there is not a simple correlation between economic
growth and voluntary giving. For example, if we focus on
selfishness then the idea of voluntary giving appears as a
mirage, impractical and unrealistic. Also, voluntary giving in
the form of charity often targets the symptoms rather than
cause of a problem and may only remedy problems such as
the eradication of poverty temporarily. The Bahá'í Writings
Economics and the Bahá’í Faith

disagree with the notion that humans only possess the lower
nature and selfish attitudes; rather it is firmly believed that
this aspect of human nature can be changed gradually through
proper education.

A discussion of the relationship between the voluntary
distribution of wealth and the main goal of the Bahá’í Faith,
unity, is worthwhile here. It can be said that there is a direct
relationship between unity and voluntary giving. As
discussed earlier, the acquisition of wealth is acceptable to
the extent that it serves as a means for achieving higher ends.
The ultimate goal for a Bahá’í is the achievement of unity of
humankind. For example, how can one enjoy one’s wealth
while more than a billion people live in absolute poverty? In
the following statement ‘Abdu’l-Bahá, envisions that in the
future ‘the rich shall most willingly extend assistance to the
poor.’ 79 But why is such a benevolent and praiseworthy
activity envisioned for the future? The presumption is that it
is a challenge at the present time for the Bahá’í community
and the wider society. Today many of the rich share their
wealth by being forced to give through taxes and try to evade
this as much as they can. However, as observed by ‘Abdu’l-
Bahá ‘The man of great wealth…will be forced, for his own
happiness, to expend his wealth to procure better conditions
for the community in which he lives.’ 80 Hence, this view
from the Bahá’í Writings indicates that in the future as more
people advance spiritually and become conscious of the
needs of others, then ‘the social function of wealth’ 81 is
understood and benevolent activities are carried out willingly
and with joy. In addition, in the Bahá’í Writings wealth is
commendable, provided the entire population is wealthy.

‘Abdu’l-Bahá. Promulgation, p. 239.
Ibid. Star of the West, vol. viii, no. 1, pp. 4-5.
Shoghi Effendi. Aqdas, note 38.
Distributive Justice

Consequently, by considering the above statements together,
one notes that there is an optimistic view that the wider
society will benefit from practicing the principle of voluntary
sharing.

How is taxation as a compulsory policy different from the
voluntary sharing of one’s possessions? It is vital to comment
that all the activities of the Bahá’í community worldwide are
carried out only through the monetary contribution of
individual Bahá’ís. This allows the Bahá’í community to be
financially self-supported and self-sustained. The concept of
voluntary giving is an indication that a community is
advancing spiritually. However, on a national scale the
system of taxation and other government regulations may be
more practical. This means it is too risky for a government to
be dependent on voluntary contribution for the funds needed
to spend on important public services.

Comparing voluntary contribution with taxation, a number of
Bahá’í scholars have considered the difference being in the
presence or absence of the spiritual values of generosity and
compassion. The indication is that taxation is of lower
spiritual importance while voluntary contribution of wealth as
a high spiritual value. For example, John Huddleston writes
‘voluntary action in the social interest would be a stronger
force than the instruction and law of government.’82 Graham
makes an overall assertion of the effects voluntary giving
would have on economics and believes that ‘the economic
effect of voluntary giving, as opposed to involuntary giving
such as taxation, is profound.83 The distinguishing aspect of
voluntary giving certainly emphasises an attitude of

John Huddleston. The Search for a Just Society, p. 241.
Bryan Graham. Bahá’í Studies Review, vol. 7, 1997, p. 5.
Economics and the Bahá’í Faith

generosity, which is in contrast with that of an imposed law
for the sharing of wealth.

4.7 Specific Bahá’í principles on wealth redistribution
Studying the Bahá’í primary literatures, a number of
principles are suggested for redistribution of income and
wealth. Some of these principles directly affect Bahá’ís and
the Bahá’í community, and some are for the wider society.
Selected teachings are described and discussed in this part.

4.7.1 Government participation
Alongside the role of individuals in voluntary giving, and the
role of Bahá’í institutions in coordinating wealth
redistribution in the community, the Bahá’í literatures
emphasise the important role of government in distributive
justice, and in provision of the basic needs for all citizens.
Adam Smith is often cited as arguing for the free-market
economy. His basic argument is that firms in the pursuit of
profits do what is best for themselves, which would also be
best for the world. In other words, the market is self-
correcting and not in need of government interference. He
believed that the market reaches a balanced market or
‘equilibrium automatically’ when the opposing forces of
supply and demand balance each other. In other words, when
the price balances the purchasing power of buyers and sellers.
However, since the Smith’s view of a system of ‘free-market
economy,’ more study has been done about the limitations of
such an economic system. Critiques of the free-market
economy argue that the market does not lead to what is the
best for consumers and producers, suggesting the need for
participation of government in regulating the market.
Economist and Nobel Prize laureate in economic science of
the 2001, has mentioned one specific reason for the need for
government involvement in the market that concerns the
Distributive Justice

issue of negative externalities:
Whenever there are ‘externalities’ - where the actions
of an individual have impacts on others for which they
do not pay, or for which they are not compensated,
markets will not work well. Some of the important
instances have long understood environmental
externalities. Markets, by themselves, produce too
much pollution. Markets, by themselves, also produce
too little basic research. The government was
responsible for financing most of the important
scientific breakthroughs, including the internet and the
first telegraph line, and many bio-tech advances. But
recent research has shown that these externalities are
pervasive, whenever there is imperfect information or
imperfect risk markets - that is always. Government
plays an important role in banking and securities
regulation, and a host of other areas: some regulation
is required to make markets work. Government is
needed, almost all would agree, at a minimum to
enforce contracts and property rights. The real debate
today is about finding the right balance between the
market and government (and the third ‘sector’ –
governmental non-profit organizations.) Both are
needed. They can each complement each other. This
balance differs from time to time and place to place.84

If we define negative externality such as pollution as the
third-party effect as a situation where the cost of a firm’s
action to society exceeds the firm’s private cost, then Stiglitz
suggests that government intervention is required to
internalise such a cost. In other words, society should not be
suffering because of the action of a firm, which is for the
purpose of profit maximisation. Stiglitz’s main argument here
is about the effect of negative externalities created by firms,
the cost of which is transferred to the whole society. These
costs need to be internalised and be paid for by the firm. This
is a classic example of market failure, which needs
Joseph Stiglitz. Making Globalization Work, London: Penguin Books, 2006. p.
45.
Economics and the Bahá’í Faith

government participation. Other examples of market failure
include unemployment, monopoly power, negative
externality, increasing the gap between the rich and the poor,
and wastage of resources either by consumers or by
producers. Therefore, the proponents of a free-market
economy argue that the idea that the market is able to balance
the economy, has failed.

Stiglitz’s view agrees with Bahá’í Writings, which support
government participation for coordinating and regulating
market activities. Bahá’u’lláh’s pronouncement is that ‘…a
republican government profits all the people,’85 and ‘Abdu’l-
Bahá considers the role of government crucial in ensuring the
happiness and well-being of the citizens of a country through
‘establishing just legislation and economics in order that all
humanity may enjoy a full measure of welfare and privilege;
but this will always be according to legal protection and
procedure.’ 86 In 1936 Shoghi Effendi suggested that
government participation is essential for regulating,
coordinating and even restricting market activities. 87 Such
participation would allow the government’s performance in
relation to distributive justice to be judged not only by
economic growth rates but also by the effect of policies on
social welfare, such as protecting the environment, creating
employment, providing health and education and improving
transport facilities. This way, the role of government is not
limited to collecting tax and providing subsidies but extends
to introducing plans to deliver acceptable living standards for
all citizens.

Whenever there is government participation there is also a

Bahá’u’lláh. Tablets, p. 28.
‘Abdu’l-Bahá. Promulgation, p. 238.
Shoghi Effendi. World Order, p. 203.
Distributive Justice

likelihood of government failure and the subsequent creation
of negative externality. This, of course, depends on the
government’s availability of resources to tackle the existing
challenges in the market. The founder of this Faith considers
excessive expenditures on armaments as unnecessary and a
type of government failure. For example, Bahá’u’lláh warned
the kings and rulers of the world 88 , saying, ‘We see you
increasing every year your expenditures, and laying the
burden thereof on your subjects. This, verily, is wholly and
grossly unjust.’ 89 Conversely, in some cases a government
may provide too many benefits, which may cause wastage or
result in a misallocation of resources (for example generous
welfare programs by some governments). This approach may
create a culture of dependency in society. According to the
Bahá’í Writings, on the one hand work is a spiritual
obligation and Bahá’ís are encouraged to be productive
members of the society; and on the other hand, the Bahá’í
institutions and governments are given the responsibility to
prepare individuals in skills learning in the first instance, and
to help the poor only when necessary, rather than providing
ample universal benefits. John Huddleston’s view is that ‘The
Bahá’í system of government would also be responsible for
providing other social services (such as social security or
health services) which would be available equally for all and
which would therefore contribute to the lessening of
differences in wealth.’90 On the issue of misusing resources
Huddleston believes that ‘Bahá’í standards of morality,
including honesty and the injunction against begging, should
ensure the ‘abuses’ of social welfare programmes would be

The chosen kings and rulers of the earth whom Bahá’u’lláh addressed them
includes: Napoleon III, Queen Victoria, Kaiser Wilhelm I, Tsar Alexander II, the
Austrian Emperor Franz Josef, the Ottoman Sultan ‘Abdu’l-‘Aziz and the Qajar
Monarch Násiri’d-Dín Sháh.
Bahá’u’lláh. Gleanings, p. 253.
John Huddleston. The Search for a Just Society, p. 439.
Economics and the Bahá’í Faith

minimal.’91 Similarly, there will be less need for government
intervention as the concept of ‘work as worship’ is practiced
in the wider society, leading to lower levels of
unemployment, which is one of the government’s
macroeconomic objectives. Likewise, the concept of
voluntary sharing would lead to a more equitable distribution
of income and wealth, hence achieving some of the
microeconomic objectives of government, such as price
stability and a welfare program.

4.7.2 Principle of equity
When discussing distributive justice from the Bahá’í
perspective equity is preferred to equality. It is maintained
that absolute equality is neither possible, nor practical or
justified. However, equality of opportunity is suggested, to
ensure that the opportunity for access to material and social
resources is justly and fairly distributed. The Bahá’í Writings
state that ‘It is the duty of those who are in charge of the
organization of society to give every individual the
opportunity of acquiring the necessary talent in some kind of
profession, and also the means of utilizing such a talent, both
for its own sake and for the sake of earning the means of his
livelihood.’92 This writing indicates that individual talents and
abilities are different and hence their economic contribution
to society varies; however, justness of opportunity should be
there for all.

In the field of economics, economic justice is about equity
rather than equality. The earnings of each person depend on
one’s productive contribution to society. However, it can be
argued that the goal of social justice is for people to be equal.

Ibid.
Shoghi Effendi. Directives, p. 74.
Distributive Justice

The Bahá’í belief is that we are all equal, not because we are
the same but because we are all created by God. The notion
of ‘all created in the image of God’ suggests that each person
has certain rights granted by God. These rights include the
right to life, liberty, and the pursuit of happiness. The
application of ‘all created in the image of God’ can be
interpreted as the recognition of equality in the social and
economic equation. The Bahá’í writing make it clear that
each person is unique, but human beings are not the same.
The hallmark is ‘unity in diversity.’ Hence, equality and
equity are very different. Equity assumes the diverse, unique
individuality of each person. While people are different, they
are to be treated equally before the law. In the Bahá’í view,
the diversity of people is a cause for celebration. The concept
of equity indicates that there should be wage differentials. In
this model, each person receives according to his or her
economic contribution to society and its needs. This seems to
be fair because each individual has different talents and
education and economic capability, and hence the productive
contribution of each person to society varies. From this
perspective, each person is different. The model, however,
recognizes that minimum standards of living must be
provided for all, ‘Abdu’l-Bahá wrote, ‘The readjustment of
the economic laws for the livelihood of man…in order that
all humanity may live in the greatest happiness according to
their respective degrees.’93 This passage indicates the need
for active participation of government in the economy.

4.7.3 Principle of profit sharing
For a social enterprise to succeed it will need to have a
system of incentives to reward desirable behaviour. One such
system suggested in the Bahá’í Writings is profit sharing.

‘Abdu’l-Bahá. Promulgation, p. 170.
Economics and the Bahá’í Faith

‘Abdu’l-Bahá said: ‘According to the divine law, no wages
should be given to the employee. Nay, rather indeed they are
partners in every work.’94 This clearly means that employers
should consider employees as assets to be retained, rather
than as costs to be reduced. Profit sharing is also supported as
an effective method for wealth redistribution. ‘Abdu’l-Bahá
states, ‘Profit sharing is recommended as a solution to one
form of economic problems.’95 Profit sharing refers to when a
share of the net profit of the organization is given to workers.
This share would be separate from the normal wage
employees receive. In most organizations that apply this
technique, the amount shared is determined either by an
established formula or entirely at the discretion of the
management or owners, based on a set of objectives. The
percentage of profit shared among the workers should be
sufficient to reward them, otherwise it may not create
adequate incentive.

Material incentives are those that reward desirable behaviour
with a claim over material goods, or through some form of
monetary payment. In a competitive market economy,
material incentives are related to supply and demand.
Shortage of products leads to an increase in prices; in which
case producers gain extra monetary benefits. If demand is
low or there is excess supply, then consumers are in a
position to benefit from lower prices, which would be an
incentive for consumers. Stephen Gardner argues that
systems of material incentives become more complicated in
the presence of ‘principle-agent relationships.’ 96 This
requires the most desirable behaviour from the agents to offer

Abdu’l-Bahá. Cited in the Star of the West, vol. VIII, number 1, p. 7.
Shoghi Effendi. Directives, p. 19.
Stephen Gardner. Comparative Economic Systems, 2nd ed., New York: Dryden
Press, 1998, p. 10.
Distributive Justice

an incentive to workers. A system of profit sharing may
encourage the agents to respond more appropriately to market
signals for providing additional incentives to workers.

Profit sharing generates several benefits to an organization,
including creating opportunities for workers to participate in
decision-making, improving working conditions, providing
better prospects for growth and development of the
organization, and creating in workers a sense of belonging to
the organization. The anticipation is that such a practice
would remove the culture of ‘them’ and ‘us’, strengthen
people’s loyalty to the firm and encourage workers to work
more effectively by not wasting the resources of the business
as a result increasing the success of the organization.
Workers will use their skills and talents to their full potential,
thereby increasing the level of production. Consequently,
profit sharing can create an environment in which people will
enjoy their work.

Profit sharing has a number of applications. As workers
receive a portion of the profit, there will not be an incentive
for strike. An industrial strike would be very costly even for a
limited number of days. Depending on the nature of the
demand by the workers, strike may impact heavily on
customers, workers and the industry. ‘Abdu’l-Bahá suggests
that the main reasons for strike are the greed and rapacity of
the factory owners and the intransigence of the workers. 97
Such extreme greed in manufacturers leads to a small number
of individuals collecting massive fortunes, while the greater
number remains deprived. One solution to this problem
suggested by ‘Abdu’l-Bahá is profit sharing: ‘Laws and
regulations should be established which would permit the

‘Abdu’l-Bahá. Some Answered Questions, p. 315.
Economics and the Bahá’í Faith

workmen to receive from the factory owner their wages and a
share in the fourth or the fifth part of the profits, according to
the capacity of the factory.’ 98 This percentage seems to be
high compared to what is customary currently in
organizations applying this principle. Once profit sharing is
in operation ‘Abdu’l-Bahá states, ‘The owner of the factory
will no longer put aside daily a treasure which he has
absolutely no need of … And the workmen and artisans will
no longer be in the greatest misery and want; they will no
longer be submitted to the worst privations at the end of their
life.’99 Companies with an excessive surplus of revenue can
redistribute a portion of their accumulated profit in the form
of profit sharing and a part of it for improving working
conditions, both of which will assist employees as well as the
company to operate more effectively.

The motivation and justification of adopting profit sharing
varies from the standpoint of the employer and that of the
employee. The employers would feel that it is their moral
duty to share their prosperity and wealth with their
employees, the people who helped them succeed. An
effective profit sharing requires employers to have good
intentions and not to expect to be rewarded for sharing the
profit. Clearly the main rationale for adopting profit sharing
is its benefits to the whole of the community. The
justification for implementing profit sharing according to
‘Abdu’l-Bahá is that ‘if it be right for a capitalist to possess a
large fortune, it is equally just that his workman should have
a sufficient means of existence.’ 100 Consequently, the
workforce would consider profit sharing as a form of security
for their livelihood; hence it can be an incentive to work

Ibid. p. 274.
Ibid. p. 275.
‘Abdu’l-Bahá. Paris Talks, pp. 158-159.
Distributive Justice

harder. ‘Abdu’l-Bahá states, ‘laws must be enacted that
would enable [the factory owners] to make reasonable profits
and the [workers] to be provided with the present necessities
and their future needs.’101 Another effect of practicing profit
sharing is to bring about greater harmony between employers
and employees. Such harmonious relationships among the
workforce cause them to apply their abilities and focus their
thoughts on achieving the objectives of the firm. Another
justification for a profit-sharing scheme is that distributing a
portion of the profit generated by the entire workforce would
act as a positive feedback to them, which would, in turn,
encourage them to do even better. The argument also can be
presented that profit sharing is not a gift from employer to
employees. The employees know that the bonus they receive
in the form of profit sharing is a payment for a bigger
responsibility they have accepted. It is because employees
have added an economic value to the business and created a
better image for the company and consequently, they are
entitled to an additional payment. Therefore, employees
consider profit sharing not as a gift, but the result of a job
well done. Nevertheless, from a Bahá’í perspective, for a
Bahá’í, work is considered as worship and must be done well,
with or without profit sharing.

Despite the above justification and benefits of profit sharing
for both employees and employers, the idea is not without
consequences and can be challenged in a number of ways.
The effects of profit sharing to motivate workers to increase
productivity, is more of a short-term phenomenon. In the long
run, productivity plateaus as workers get used to this extra
income, unless there is an increase in the level of profit
sharing. But increasing the level of profit sharing may not be

Ibid. Some Answered Questions, p. 318.
Economics and the Bahá’í Faith

in the interest of the business and it may also cause a negative
reaction from the shareholders, towards whom the business
has a responsibility. Another difficulty with profit sharing is
that it is not fair to pay the same percentage of profit to all
workers with different talents, qualifications, and skills. In
other words, it is not fair to pay the same number of bonuses,
for example, to one who is extremely motivated and
hardworking and to one whose motivation and work rate is
comparatively low. The alternative suggestion is to ‘pay
according to performance’, in the words of ‘Abdu’l-Bahá
‘each in his function according to ability but with justness of
opportunity for all.’ 102 The Bahá’í concept of ‘work as
worship’ can have a positive impact on workers’
performance, which may lead to better pay. However, the two
principles of ‘work as worship’ and ‘profit sharing’ can work
independently from each other. Both principles affect the
lives of workers positively, but in a different way. The
principle of profit sharing is a positive gesture from the
employer to the workers, giving them a portion of the firm’s
profit for their loyalty. The great success of profit sharing and
its increasing acceptance in the modern industrial age is not
only due to its monetary benefits. The act of profit sharing
will encourage workers to improve their work, giving them a
sense of personal investment in their work and allowing them
to participate in decision-making.

4.7.4 Progressive income tax
The Bahá’í Faith supports the notion of progressive income
tax as another method of wealth redistribution and a way of
reducing extremes of wealth and poverty in the wider society.
Progressive tax is defined as ‘A tax whose average rate with

‘Abdu’l-Bahá. Promulgation, p. 216.
Distributive Justice

respect to income rises as income rises.’103 In other words, the
tax rate increases with income; therefore, the higher-income
group pay a higher proportion of tax than the lower-income
group. Here, the term progressive income tax rather than
graduated income tax is used because it is always advancing
upwards, whereas graduated tax may go up or down. Shoghi
Effendi writes: ‘the income tax, according to the Bahá’í
teachings, mounts at quite a steep rate so that great sums of
money would be very heavily taxed.’ 104 This kind of tax
system offers one of the most straightforward ways of
achieving equitable distribution of income and wealth by
marginally redistributing income from top to bottom. The
economic rationale for progressive income tax is related to
the two economic concepts of ‘Marginal Propensity to
Consume’105, which is ‘the fraction of a change in disposable
income that is consumed,’ 106 and Marginal Diminishing
Return, which states the more money a person spends on an
item, the less satisfaction is obtained from the last unit of the
money spent. 107 The larger the income earned, the higher the
tax bill paid. Hence, the justification for this method is that a
relatively limited level of income should be sufficient to lift
every one above a convincing poverty line. This type of tax is
now universally accepted as a fair and justified method of
taxation and is practised by most governments to raise
revenue for their expenditures. Ideally, for an effective
performance, the tax system and good governance should go
hand in hand.

John Sloman. Economics, p. 279. (The other two tax systems commonly
known are: Regressive tax, defined as ‘A tax whose average rate with respect to
income falls as income rises.’ And proportional tax defined as ‘A tax whose
average rate with respect to income stays the same as income rises.’)
Shoghi Effendi. Letter dated11 February 1944.
Michael Parkin, Melanie Powell, and Kent Matthews. Economics, p. 640.
Ibid.
Ibid. p. 641.
Economics and the Bahá’í Faith

In the following statement, ‘Abdu’l-Bahá explains the
working of progressive income tax:
Each person in the community whose need is equal to
his individual producing capacity shall be exempt
from taxation. But if his income is greater than his
needs, he must pay a tax until an adjustment is
effected. That is to say, a man’s capacity for pro-
duction and his needs will be equalized and reconciled
through taxation. If his production exceeds, he will
pay a tax; if his necessities exceed his production, he
shall receive an amount sufficient to equalise or
adjust. Therefore, taxation will be proportionate to
capacity and production, and there will be no poor in
the community.108

It is clear from this passage that if a person’s income exceeds
his expenditure, a tax is levied, and the proportion of tax paid
depends on the level of income. However, a person is
exempted from paying tax if his expenditure is greater than
his income, in which case financial assistance will be
provided. The future institutions and experts in charge of this
matter will decide how this would be organized.

The Bahá’í Writings emphasise that accumulating wealth will
be regulated and controlled by establishing laws. Through
progressive income tax, help to the poor is ensured, and the
more highly paid individuals will not accumulate excessive
riches. Speaking on this subject, the vision of ‘Abdu’l-Bahá
for an ideal and sensible society in the future is that ‘… the
laws of the community will be so framed and enacted that it
will not be possible for a few to be millionaires and many
destitute.’109 However, a combination of government tax and
spiritual principles such as justice, honesty, compassion,

‘Abdu’l-Bahá. Promulgation, p. 217.
Ibid. p. 216.
Distributive Justice

truthfulness and trustworthiness lead to a more equitable
distribution of income and wealth, and possibly a more
balanced life-style in society.

A classic problem or view for the imposition of any tax is
that it has a disincentive effect on effort and initiative. But,
what is the Bahá’í position towards such views? In the
context of the Bahá’í stand towards paying tax, three basic
principles should be considered. First, although people have
the right to accumulate wealth and own property, the Bahá’í
Writings encourage the rich to care for the poor and needy
and share their wealth for the betterment of the community. It
is stated that ‘They who are possessed of riches, however,
must have the utmost regard for the poor.’ 110 Second, the
Bahá’í way of life is that able people should become a
productive unit of society; it is stated that ‘…all must be
producers.’ 111 So, irrespective of the level of taxation, all
must be economically active. Third, as is discussed earlier,
for a Bahá’í, work done in a spirit of service is considered as
a form of worship. Therefore, the imposition of tax will not
be a barrier to work and service in the community, nor it will
create disincentive in a person.

The intention of progressive income tax is not to achieve
complete economic equality, but to enable a government to
provide an adequate welfare program and security and
moderate comfort for all its citizens. Since the Bahá’í
Writings consider extremes of wealth and poverty as life-
threatening and a severe economic problem, the function of
progressive income tax is to improve the standards of living
of lower income groups by taxing the top income earners at

Bahá’u’lláh. Gleanings, p. 202.
‘Abdu’l-Bahá. Promulgation, p. 217.
Economics and the Bahá’í Faith

higher rates in order to reduce the level of inequality.
Alternatively, a government may increase economic well-
being by increasing social welfare spending on programs that
provide direct services to those who can otherwise not afford
to fulfil their basic human needs such as food, shelter, and
medical care. These programs alleviate the suffering of the
poor and lead to a partial narrowing of the gap between rich
and poor.

4.7.5 Law of inheritance
The law of inheritance is another Bahá’í principle for
attaining distributive justice. This is another method by which
the Bahá’í Writings ensure the prosperity of the community
and the wider society, rather than a minority group. The
Bahá’í Writings advocate a tax to be levied on inheritance:
‘…the greater the sum inherited, the higher the tax will
be.’ 112 This may become another source of revenue for
government spending on the wider society.

In his Book of Laws, The Kitáb-i-Aqdas, Bahá’u’lláh
formulates the law of inheritance and divides the inheritance
into seven categories, if no Will is prepared. ‘We have
divided inheritance into seven categories: to the children, We
have allotted nine parts comprising five hundred and forty
shares; to the wife, eight parts comprising four hundred and
eighty shares; to the father, seven parts comprising four
hundred and twenty shares; to the mother, six parts
comprising three hundred and sixty shares; to the brothers,
five parts or three hundred shares; to the sisters, four parts or
two hundred and forty shares; and to the teachers, three parts
or one hundred and eighty shares.’ 113 Shoghi Effendi has

Shoghi Effendi. Letter dated 11 February 1944.
Bahá’u’lláh. Aqdas, verse 20.
Distributive Justice

clarified a number of issues concerning the law of
inheritance:
In cases where there is no issue [children] the share of
the children reverts to the House of Justice to be
expended on orphans and widows and for whatever
will profit mankind. [And]...Should one leave
offspring but either part or all of the other categories
of inheritors be non-existent, two thirds of their shares
reverts to the offspring and one third to the House of
Justice.114

Reflecting on the Bahá’í law of inheritance, a number of
issues need to be considered. First, it is important to note that
Bahá’ís are encouraged to write a Will and are free to dispose
of all their wealth as they wish. Second, female and male
children get equal shares, but there are differences between
father and mother, and brother and sister. Third, this law
considers that the first preference of the deceased would be
children rather than the spouse. These differences are
associated with the role of individuals rather than the spirit of
equality.

Reflecting on the significance of division of inheritance into
seven groups, it is noted that this signifies the social function
of wealth. This is apparent from several Writings of the
central figures of the Bahá’í Faith. Shoghi Effendi exhorts
that a Bahá’í should bear in mind the social function of
wealth, consequently ‘avoiding its over-accumulation and
concentration in a few individuals or groups of
individuals.’115 It is obvious from the law of inheritance that
the wealth of the deceased is not meant to stay with one
individual, for instance the oldest son, as is customary in
some societies, but is to be distributed among different

Shoghi Effendi. Cited in Aqdas, Synopsis and Codification, p. 153.
Ibid. p. 182.
Economics and the Bahá’í Faith

groups of people. Within each of these groups the wealth will
be further distributed among individuals. In practical terms,
by following this law the life of many people will improve,
which will then have an effect on the wider society. Also,
relating the notion of the social function of wealth to different
categories of the division of inheritance, it is possible to
argue that the reason for giving preference to children than to
spouse is not meant for the spouse to be left without the
means to live, but that it is expected that the children should
look after their parents. Another issue of note is that not all
seven categories are usually present and, consequently, a part
of the wealth is paid to the Head of the Bahá’í Faith, the
Universal House of Justice, and is spent on a variety of
purposes for the benefit of the wider society. It also helps in
the construction of many Bahá’í Houses of Worship in
different countries, which will be used for the purpose of
serving the whole community as well as worship. The last
category of the division of inheritance signifies the
importance of education by giving a share of the wealth to
teachers. Therefore, it seems that the main focus of the
founder of the Faith in division of inheritance is the
application of the social function of wealth. However, to a
great extent the application of this law requires the practice of
compassion and love within the members of the family.

4.7.6 Law of Ḥuqúqu’lláh (the Right of God)
A unique and revolutionary spiritual principle mentioned in
the Bahá’í scriptures for the redistribution of income and
wealth is the law of Ḥuqúqu’lláh. ‘Ḥuqúqu’lláh’ is an Arabic
word composed of two words, Ḥuqúq, meaning ‘Right’ and
Allah, meaning ‘God’. Therefore, Ḥuqúqu’lláh means ‘the
Right of God’. Ḥuqúqu’lláh, although a spiritual law, is
subject to specific obligations and regulations. The law states
that 19% of the earnings of a Bahá'í over a certain limit, and
Distributive Justice

after all expenses have been paid belongs to God and should
be paid to the head of the Faith, the Universal House of
Justice. The importance of this law is stated in the Book of
the Laws - The Kitáb-i-Aqdas as follows, ‘By this means [the
Rights of God] He hath desired to purify what ye possess and
to enable you to draw nigh unto such stations as none can
comprehend save those whom God hath willed [emphasis
added].’116 According to Alí Muhammad Varqá, the Trustee
of Ḥuqúqu’lláh 117 , this law ‘constitutes the bedrock of an
unprecedented spiritual economy.’118 Although observing ‘the
Right of God’ is limited to Bahá’ís, and entrusted to the
Bahá’í institutions, it is ultimately used for the betterment of
the whole society.

The application of the law of Ḥuqúqu’lláh is to ensure the
economic well-being of the whole society. Bahá’u’lláh states,
‘the payment of the Right of God is conducive to prosperity,
to blessing, and to honour and divine protection.’ 119
Therefore, if the payment of Ḥuqúqu’lláh brings prosperity
and blessings, then Bahá’ís would try harder to fulfil those
criteria. Also, the rationale is that no one accumulates wealth
without paying one’s dues to society. According to Alí
Nakhjavání 120 all the wealth belongs to God. Hence, when
one works for acquiring wealth, one must pay a portion of it
to God, in this case 19% of the surplus wealth, to be used for
the benefit of all. According to Varqá, the rationale of the law
is the inception of an evolutionary process, which, in the

Bahá’u’lláh. Aqdas, verse 97.
The operation of the institution of ‘Ḥuqúqu’lláh’ is under the Board of Trustees
and the head office is in Haifa, Israel. There are representatives of Huqúqu’lláh in
each country to administer the affairs of this law.
Alí Muhammad Varqá. Ḥuqúqu’lláh Newsletter, no. 2, p. 2.
Bahá’u’lláh. Quoted in Compilation of Compilations, Compiled by Research
Department of the Universal House of Justice, Haifa: Bahá’í World Centre
Publication, 2000, no. 1104.
Alí Nakhjavání. Ḥuqúqu’lláh, Bahá’í Summer School, Germany, 2005.
Economics and the Bahá’í Faith

course of ages and centuries to come, assists everyone in
adopting a moderate way of living. He points out that the law
‘contributes to the establishment of an equilibrium in the
socio-economic life of those who dwell on earth, thereby
eliminating extreme wealth and poverty.’ 121 Consequently,
the rationale of the law of Ḥuqúqu’lláh is in its altruistic
nature towards the wider society.

Calculating the payment of Ḥuqúqu’lláh , the law states that
‘Should anyone acquire one hundred mithqáls of gold,
nineteen mithqáls thereof are God’s and to be rendered unto
Him.’ 122 The following explanation is necessary to clarify
how much of net income should be paid as Ḥuqúqu’lláh. In
this calculation, Mithqál is used as a unit of mass:
The basic sum on which Ḥuqúqu’lláh is payable is
nineteen mithqáls of gold. In other words, when
money to the value of this sum hath been acquired, a
payment of Ḥuqúq falleth due. Likewise, Huqúq is
payable when the value, not the number, of other
forms of property reacheth the prescribed amount.
Huqúqu’lláh is payable no more than once. A person,
for instance, who acquireth a thousand mithqáls of
gold, and payeth the Ḥuqúq, is not liable to make a
further such payment on this sum, but only on what
accrueth to it through commerce, business and the
like. When this increase, namely the profit realized,
reacheth the prescribed sum, one must carry out what
God hath decreed. Only when the principal changeth
hands is it once more subject to payment of Huqúq, as
it was the first time. The Primal Point hath directed
that Ḥuqúqu’lláh must be paid on the value of
whatsoever one possesseth; yet, in this Most Mighty
Dispensation, We have exempted the household
furnishings, that is such furnishings as are needed, and

Alí Muhammad Varqá. Ḥuqúqu’lláh Newsletter, no. 2, 1997, p.2.
Bahá’u’lláh. Aqdas, verse 97.
Distributive Justice

the residence itself.123

It is possible to identify a number of economic benefits that
individual Bahá’ís and the whole society may receive through
the application of Ḥuqúqu’lláh . The most important one is
that Bahá’u’lláh has established a permanent and self-
regulating source of income for the Bahá’í institutions but has
based it on the spiritual maturity of his followers. Through
Ḥuqúqu’lláh, the institutions can carry out their
responsibilities and activities, whether these are looking after
the poor, the orphans, the Bahá’í holy places, carrying out
humanitarian work during disasters, or organising and
coordinating different developmental projects for the benefit
of the whole society. All these activities increase the wealth
of the society. Therefore, there would be greater possibilities
for community development, social welfare and the
improvement and maintenance of the infrastructure, which in
turn will affect the wider society. Likewise, the law assists
individuals in learning how to budget and control their
income and expenditure, and in considering the altruistic
nature of the law of Ḥuqúqu’lláh rather than self-interest.
Commenting on this, Bahá’í scholar Ramin Khadem
describes the unique role of the law of Huqúqu’lláh as ‘a
model for the transformation of a society centred on self to
one focused on the well-being of humanity.’124 In a similar
statement Alí Nakhjavání maintains that the law is
‘established to facilitate cooperation and reciprocity among
human beings.’125

In addition to its economic implications, the law of
Ḥuqúqu’lláh provides a number of spiritual incentives to

Bahá’u’lláh. Aqdas, note 78.
Ramin Khadem. Huqúqu’lláh Newsletter, no. 2, 1997, p. 3.
Alí Nakhjavání. Bahá’í Summer School, Germany, 2005.
Economics and the Bahá’í Faith

Bahá’ís. For example, it allows Bahá’ís to learn about moral
virtues such as generosity, truthfulness, detachment, sacrifice
and compassion. In practising this law, individuals would be
their own trustees, as they are not individually asked to pay
Ḥuqúqu’lláh and it is their own responsibility to do so.
Observing this law in order to purify one’s personal wealth
would also have a positive impact on future generations and
one’s offspring. Therefore, although, Ḥuqúqu’lláh is a ‘law’,
the spiritual aspect of this law surpasses the material aspect.

Despite the spiritual and economic benefits, the law of
Huqúqu’lláh may be questioned or challenged. For example,
those Bahá’ís whose income does not reach the level to be
qualified to pay the Right of God, would be deprived of
receiving blessings and divine protection, and this would not
be fair, particularly as they may never have the opportunity to
reach to such a level of income. In response to this query, I
will consider the following justifications. First and the
foremost is that this law, according to Bahá’u’lláh, is ‘to
purify one’s riches and earthly possessions.’126 Therefore, it
can be argued that those who do not have riches, do not need
to purify them. Second, this law is indeed kindness from God,
as the money will be used to help the very people who are
incapable of paying the Ḥuqúq. Bahá’u’lláh, denounces any
perceived lack of love for the poor: ‘say: I swear by God! No
one is despised in the sight of the Almighty for being poor.
Rather he is exalted, if he is found to be one of them who are
patient.’ 127 Third, if there were still any doubts about the
position of the poor in this regard, Bahá’u’lláh further affirms
that ‘those that are unable to pay will be invested with the
ornament of His forgiveness.’ 128 ‘Abdu’l-Bahá further

Bahá’u’lláh. Quoted in Huqúqu’lláh, p. 3.
Ibid. p. 7.
Ibid. p. 10.
Distributive Justice

clarifies:
Know thou, moreover, that those who Faithfully serve
the All-Merciful will be enriched by Him out of His
heavenly treasury, and that the Ḥuqúq offering is but a
test applied by Him unto His servants and
maidservants. Thus, every true and sincere believer
will offer Ḥuqúq to be expended for the relief of the
poor, the disabled, the needy, and the orphans, and for
other vital needs of the Cause of God, even as Christ
did establish a Fund for benevolent purposes.129

It must be noted that according to Varqá and Nakhjavání the
concept of Ḥuqúqu’lláh is not the same as a system of
taxation. Although this law is obligatory on those whose
savings exceed a minimum amount, it is only acceptable if it
is given in a spirit of joy and radiance. Although a spiritual
obligation, this law’s effectiveness depends on the spiritual
maturity of the individual. In contrast, taxation is compulsory
in nature, and is imposed on individuals. Thus, ‘the Right of
God’ cannot be considered the same as taxation. Also, the
Right of God is different from other forms of donations such
as ‘earmark’ or ‘general contributions’ practiced in the
Bahá’í community. The Trustee of Huqúqu’lláh has clarified
this aspect of the law and explained the differences:
The payment of Ḥuqúqu’lláh is based on
calculations on one’s income, whereas contribution to
the Bahá’í funds is left to the free wish and eagerness
of the believers. The Right of God cannot be
earmarked for some specific purpose. It is entirely at
the disposal of Marjá-i-Amr, or the focal point of
authority 130 , to which all must turn, while other
contributions could be earmarked for other purposes,
according to the wish of the contributor.131

‘Abdu’l-Bahá. Quoted Huqúqu’lláh, p. 15.
Marjá-i-Amr, or the focal point of authority in this statement refers to the
Universal House of Justice.
Alí Muhammad Varqá. Huqúqu’lláh News Letter, no 2, 1997, p. 2.
Economics and the Bahá’í Faith

Bahá’u’lláh proclaimed the application of this law in The
Kitáb-i-Aqdas in 1873, and the House of Justice announced
its worldwide application in 1992. Those who observe this
law must have Faith in Bahá’u’lláh. Therefore, observing the
Right of God is limited to Bahá’ís only. The education and
understanding of the law and its application is a gradual
process for the Bahá’í communities throughout the world.
One of the responsibilities of the ‘institution of Ḥuqúqu’lláh’
is the education of Bahá’ís to better understand this law.
However, even in this early period of the development of the
Bahá’í community, Khadem maintains that ‘the practice of
the law, however small in scale, is already working in the
Bahá’í community.’132

4.7.7 Contribution to the Bahá’í Fund
The concept of ‘contribution’ is introduced in the Bahá’í
Writings as a means of financing Bahá’í activities, as an
alternative way for channelling the redistribution of income
and wealth, and to balance standards of living in a
community. Addressing Bahá’ís, Shoghi Effendi writes: ‘ our
contributions to the Faith are the surest way of lifting once
and for all time the burden of hunger and misery from
mankind.’ 133 Also, like any other organization, the Bahá’í
community has expenditures and requires material means to
carry out its activities. These are paid only by general
participation and support of Bahá’ís. The term ‘Bahá’í Fund’
is used in relation to the income and expenditures of Bahá’í
institutions.

There are three major Funds in the Bahá'í Faith. The local
Fund supports the teaching activities, consolidation and
administrative work of each local Bahá'í community. Local
Ramin Khadem. Huqúqu'lláh News Letter, no. 4, 1996, p. 3.
Shoghi Effendi. Letter dated 8 December 1947.
Distributive Justice

Funds also provide support to the National and International
Funds when capable of doing so. The national Fund supports
the Bahá’í National Spiritual Assembly to direct, stimulate
and coordinate its activities throughout the country. This
Fund is a major support to the Bahá'í International Fund as
well as offering assistance in the fulfilment of overseas goals
assigned by the Universal House of Justice to each country.
When needed, the national Fund also provides assistance to
local funds. The International Fund supports many activities
throughout the Bahá'í world. Some National Spiritual
Assemblies depend upon its support. The ‘Holy Shrines,’134
the ‘Arc Buildings,’ 135 and other properties at the Bahá’í
World Centre, as well as all the administrative activities of
the Bahá’í World Centre, receive assistance from this fund.

According to Shoghi Effendi, a very important part of the
Bahá’í administration, which he refers to as ‘The Life Blood
of the Cause of God’136, is ‘the Bahá’í Fund’. It combines the
spiritual and material strengths of individual Bahá’ís and tests
their loyalty when it comes to parting with their money in
order to advance the community. Therefore, the Bahá’í Fund
can be considered as the bedrock of the administrative order.
One of the distinguishing features of the Bahá’í Faith, as
described by the Universal House of Justice, is its principle of
non-acceptance of financial contributions for its own
purposes and activities from non-Bahá’ís. Shoghi Effendi
says that the Bahá’í institutions can best function and be
maintained ‘by the support of those who are fully conscious
of, and are unreservedly submissive to, the claims inherent in

The Holy Shrines are the Shrine of Bahá’u’lláh in Akka, and Shrines of the
Báb and ‘Abdu’l-Bahá in Haifa, Israel.
The ‘Arc Buildings’ are located at the Bahá’í World Centre in Haifa and
includes: the seat of the Universal House of Justice, The International Teaching
Centre, The Bahá’í International Archive, and The International Research Centre.
Shoghi Effendi. Bahá’í Administration, p. 198.
Economics and the Bahá’í Faith

the Revelation of Bahá’u’lláh.’ 137 However, Shoghi Effendi
explains that when non-Bahá’ís are eager to contribute to the
Bahá’í Fund, those donations can be accepted for
philanthropic and charitable purposes, such as spending on
social and economic development programs that benefit the
wider society.

Another important feature of the Bahá’í Fund is that the
contribution is voluntary and there is a sacred obligation for
every Bahá’í to consciously give to the Fund. The amount
contributed, however, is immaterial, purely private and
confidential and there should not be any kind of compulsion
attached. Shoghi Effendi particularly stresses the strict
voluntary nature of contributions to the Fund, to a point that
he considers the slightest, even indirect form of compulsion
‘strikes at the very root of the principle underlying the
formation of the Fund ever since its inception.’ 138 He also
stated, ‘it is the sacred obligation of every conscious and
Faithful servant of Bahá’u’lláh who desires to see his Cause
advance, to contribute freely and generously.’ 139 Thus, it is
clear that the amount paid is not as significant as the spirit of
giving. In this passage, the word ‘freely’ needs to be
emphasised, as all eligible members of the Bahá’í community
must contribute by their own free will and not through
coercion. The contribution to the Bahá’í Fund should be
according to one’s ability and means.

Bahá’u’lláh has accepted the Islamic law of Zakát as another
source for wealth redistribution. The word Zakát means both
purification and growth. This is one of the basic principles of
Islam and the idea is that wealthy Muslims should put aside

Shoghi Effendi. Quoted in The Life Blood of the Cause, pp. 2-3.
Shoghi Effendi. Bahá'í Administration, p. 101.
Ibid. pp. 41-42.
Distributive Justice

2.5% of their wealth for helping the poor and needy. The
Islamic belief is that the act of giving Zakát purifies one’s
wealth to gain God’s blessing and to make it grow in
goodness. The principle states that all things belong to God,
and wealth is therefore, held by human beings in trust. The
Holy Qur’an states, ‘That I shall ordain for those who have
God-consciousness and give their Zakát and those who
believe in Our Signs.’ 140 But what is the application of the
law of Zakát in the Bahá’í community? Nakhjavání’s view is
that ‘at this stage of the development of the Bahá’í
community the law of Zakát, and the principle of contribution
to the Bahá’í Fund are merged until the Universal House of
Justice in the future make alternate decision about its
application.’141

4.8 Application of Bahá’í teachings on wealth
redistribution
A number of Bahá’í scholars have expressed their views
concerning the application of Bahá’í teachings on wealth
accumulation and redistribution. Bryan Graham’s view is that
any discussion of the application of Bahá’í teachings on
economics would best occurs within the context of a Bahá’í
commonwealth (see chapter 5, section 5).142 John Huddleston
makes a similar argument that the Bahá’í views on economics
acquire real meaning only when considered in the context of
a Bahá’í civilisation. 143 The principle of ‘progressive
taxation,’ which is accepted in the Bahá’í literatures as a
suitable method for wealth redistribution, is now widely
established and put into practice by most governments in the

Prophet Muhammad. Qur’an, Soltani (ed.), Alámieh Islamieh Publication,
Tehran, 1957. Surah Al-A`raf 7:155.
Alí Nakhjavání. Huqúqu’lláh, Bahá’í Summer School, Germany, 2005.
See: Bryan Graham. Bahá’í Studies Review, p. 2.
See: John Huddleston. Search for a Just Society, p. 5.
Economics and the Bahá’í Faith

world. The principle of ‘profit sharing’ is growing in
recognition and is practised by a number of organizations.
Many of the Bahá’í spiritual teachings on wealth
redistribution are currently practised within the Bahá’í
community. However, no data is available concerning the
extent to which each one is practised. The important role of
Bahá’í institutions in the process of educating the community
towards better understanding of the meaning of wealth and
the significance of spiritual principles on distributive justice
cannot be overlooked. The institutions play an important part
in channelling the application of Bahá’í teachings on wealth
redistribution and understanding the concept of wealth in
relation to purpose of life for a Bahá’í.

The responsibility for promoting and establishing economic
justice belongs to both individual and the
society. Individuals have the responsibility to do their part by
making ethical decisions, such as having a moderate lifestyle
or living a simpler life. At the same time, governments also
have a responsibility to devise policies to ensure that all
people have the adequate education and training to earn a
living and that there are suitable employments and
opportunities for them. The Bahá’í Writings state:
It is the duty of those who are in charge of the
organization of society to give every individual the
opportunity of acquiring the necessary talent in some
kind of profession, and also the means of utilizing
such a talent, both for its own sake and for the sake of
earning the means of his livelihood.144

Although the laws on the redistribution of wealth are not
enforced on individual members of the Bahá’í community,
their impact on raising the necessary funds for improving the
well-being of the Bahá’í community and the wider society
Shoghi Effendi. Directives, p. 74.
Distributive Justice

cannot be underestimated. Emphasising the practicality of
these laws, Ramin Khadem refers to the law of Ḥuqúq’u’lláh
and maintains that ‘however small the scale of these
teachings, the practice of these laws by the adherents of the
Bahá’í Faith has already amply demonstrated that this model
works.’145 The fact that the Bahá’í community worldwide is
self-supported financially and no funds are accepted from
non-Bahá’ís 146 , including individuals, organizations, and
governments, shows that the law of Huqúqu’lláh and
principles of contribution to the Bahá’í fund are working
within the Bahá’í community in a global scale.

4.9 Chapter conclusion
This chapter explored the two foremost and interrelated
factors of an unstable economy, which according to Bahá’í
Writings are economic injustice and extremes of wealth and
poverty. This chapter, also, examined the relationship
between wealth redistribution and well-being as a
fundamental requirement for establishing order in society.
Distinctions were made between views on self-interest and
selfishness. The Bahá’í literatures dismiss both views. A
person with an attitude of self-interest does not like to share
resources with others. Self-interest may lead to the
accumulation of wealth, which is against the spirit of
distributive justice and the growth and prosperity of the entire
community. A number of principles dealing with distributive
justice were identified and discussed, including ‘the law of
inheritance’ and ‘the law of Huqúqu’lláh’ and the concept of
‘voluntary sharing’ and ‘contribution’ to the Bahá’í fund. The

Ramin Khadem. Huqúqu’lláh News Letter, no. 4, 1996, p. 3.
There are several reasons for not accepting financial assistance from non-
Bahá’ís. A person who is contributing to the Bahá’í fund must be a believer and
contributing with genuine intention. Also, such assistance may create dependency
issue, which may be political, and in this case Bahá’ís get distance from any
activities associated with political affairs.
Economics and the Bahá’í Faith

role of government is also crucial in distributive justice and
the Bahá’í literatures support activities that are mainly
administered by the state, such as ‘progressive taxation’, and
the promotion of ‘profit sharing’. The Bahá’í view is that
acquiring wealth is not immoral. Wealth is praiseworthy if it
is earned honestly and spent sensibly in a way that benefits
the common good. However, the concept of distributive
justice advocates equity and not equality.

The theme of distributive justice has a direct impact on the
purchasing power of individuals and families to buy goods
and services. This requires a discussion of the pattern of
consumption by people. The Bahá’í Writings encourage
Bahá’ís to adopt a more sustainable pattern of living. Given
the importance of consumer support for the survival and on-
going success of organization, it is crucial that being ethical
and sustainable towards consumer’s demand is regarded as
one of the most important areas of business ethics. This
subject will be considered in the next chapter under the theme
sustainable consumption.

Sustainable Consumption

Chapter 5: Sustainable Consumption

The transition to sustainable consumption and
production is part of a global enterprise which
enables all individuals to fulfil their dual purpose,
namely to develop their inherent potentialities
and to contribute to the betterment of the wider
community.1
The Bahá’í International Community

5.1 Introduction
Classical economists recognized that the production of goods
and services was not an end in itself, thus Adam Smith wrote:
Consumption is the sole end and purpose of all
production; and the interest of the producer ought
to be attended to only so far as it may be
necessary for promoting that of the consumer.
The maxim is so perfectly self-evident that it
would be absurd to attempt to prove it. But in the
mercantile system the interest of the consumer is
almost constantly sacrificed to that of the
producer; and it seems to consider production,
and not consumption, as the ultimate end and
object of all industry and commerce.2

The relationship between production and distribution is
essential to understanding consumption pattern. Experts in
sustainable consumption, Mark Bevir and Frank Trentmann

Bahá’í International Community, Rethinking prosperity: Forging Alternatives to
a culture of consumerism, 18th Session of the United Nations Commission on
Sustainable Development.15 March 2010.
Adam Smith. The Wealth of Nations, p. 877.
Economics and the Bahá’í Faith

argue that ‘Mundane Consumption is a necessary and routine
part of people’s lives, as is the exercise of choice in respect of
a variety of relatively inconspicuous or ordinary products and
service intrinsic to the maintenance of everyday life.’3 What
is important about the consumption pattern in modern times
is the complexity of the integration of people and nations
trading in a global borderless market. The new consumer has
access to different facilities such as the Internet for
researching and purchasing products of one’s own choice
from different sources and from every corner of this planet. A
recent world population projection by the United Nations,
from 1990 to 2150, indicates that with the increasing level of
world population, the relationship between consumption and
sustainability is becoming critical. Consumption consists of
normative choices and a matter of value judgement. Value
principles such as fairness, caring and compassion play an
important part when consumers associate with others in an
integrated market. 4 Moral principles are also important in
making final decisions about choices. The main task of this
chapter, therefore, is to discuss the role of moral incentives in
sustainable consumption and to explore selected Bahá’í
principles and their application to the Bahá’í lifestyle and,
perhaps, as a model for study in the wider society.

5.2 Bahá’í view on sustainable consumption
How do we get from our present world condition to a more
sensible, equitable, sustainable and prosperous world? This
can be done through either ‘adjustment of means of
livelihood in human society.’5 This requires a change in life

Mark Bevir, and Frank Trentmann. ‘Civic choices: Retrieving Perspectives on
Rationality, Consumption, and Citizenship,’ 2008, in K. Soper and F. Trentmann
(ed.), Citizenship and Consumption. Basingstoke: Palgrave, pp. 19-33, at 23.
Neva Goodwin. ‘Consumption, Population, and Sustainability: Perspective from
Science and Religion,’ The Transition to a Transition, pp. 245-265, at p. 260.
‘Abdu’l-Bahá, Promulgation, p. 216.
Sustainable Consumption

style for both the poor and the rich. Or through ‘the
readjustment of the economic laws for the livelihood of man
…in order that all humanity may live in the greatest
happiness according to their respective degrees.’ 6 Long
before the Universal Declaration of Human Rights (1948)
was made, the Bahá’í Writings emphasised on various
aspects of human rights. The human rights are including
living in dignity, free from needs, rights that are universal,
indivisible, interconnected and interdependent, also the
realization of the human rights of other people. The human
rights to be free from poverty includes the right to an
adequate standard of living, the right to work and receive
wages that contribute to an adequate standard of living, the
right to a healthy and safe environment, the right to live in
adequate housing, the right to be free from hunger, the right
to safe drinking water, the right to primary health care and
medical attention in case of illness, and the human right to
education for girls and boys. ‘Abdu’l-Bahá stated:
Every human being has the right to live; they have a
right to rest, and to a certain amount of well-being. As
a rich man is able to live in his palace surrounded by
luxury and the greatest comfort, so should a poor man
be able to have the necessaries of life. Nobody should
die of hunger...Let us try with all the strength we have
to bring about happier conditions, so that no single
soul may be destitute.7

The Bahá’í Writings provide a number of principles that,
taken together with a basic spiritual transformation in society,
show the pathway towards prosperity. A current economic
assumption is that human happiness can be attained by
increasing the wealth of the individual members of the
society, which leads to maximising happiness and reducing

‘Abdu’l-Bahá. Promulgation, p. 170.
Ibid. Paris Talks, p. 134-135.
Economics and the Bahá’í Faith

suffering. Hence, the root idea flowing from self-interest is
consumer sovereignty and utility maximisation. 8 For many,
prosperity lies in increasing consumption and each consumer
according to utility theory will pursue his or her opportunities
until the marginal cost of a transaction exceeds the benefits of
it. Each person maximises utility or happiness subject to a
number of constraints, including income. Thus, the economic
theory for the free-market economy considers mainly
monetary aspects of life and ignores other factors, such as
those values that are essential for creating relationships
among people, and those protecting the environment.

Hence, the root idea flowing from self-interest is consumer
sovereignty and utility maximisation. It was argued earlier
that self-interest belongs to the lower nature of human beings,
‘Abdu’l-Bahá states, ‘Its custodians should continually purge
themselves of every trace of personal desire of interest and
become wholly imbued with the spirit of love, of cooperation
and genuine self-sacrifice.’9 The rationale, in the market, is
that consumers know their interests best and can act to
advance them through exchange. For many, prosperity lies in
increasing consumption and each consumer according to
utility theory will pursue his or her opportunities until the
marginal cost of a transaction exceeds the benefits of it. Each
person maximises utility or happiness subject to a number of
constraints, including income. Thus, the economic theory for
the free-market economy considers mainly monetary aspects
of life and ignores other factors, such as those values that are
essential for creating relationships among people, and those
protecting the environment.

The notion is supported by the theory of utility maximisation, a view advocated
by Jeremy Bentham and John Stuart Mill. Sinnott - Armstrong, Stanford
Encyclopaedia of Philosophy, Edvard N. Zalta (ed.), Winter 2012 edition.
‘Abdu’l-Bahá, cited in Lights of Guidance, p. 35.
Sustainable Consumption

On the one hand, consumption can be considered the
destroyer of the product but on the other hand, it can mean
sensible use of the product. It is the latter part that will be
used in the context of this subject. Sustainable development
is a condition that encourages people to use resources with
consideration for the needs of others, preserving the
environment, the well-being of animals, and protecting the
rights of future generations. Hence, the notion of sustainable
consumption is closely linked with the concept of sustainable
living and sustainable development and can be conceptually
divided into four components or four pillars of sustainability:
ecological, sociological, economic, and spiritual. My working
definition of sustainable living inspired by the Bahá’í
scriptures is suggested as: the process of wise and just use of
resources for producing goods and services that consider the
basic human needs, while safeguarding nature for future
generations. This definition considers a number of features
and to a certain extent has built into it the characteristics of
sustainable development, which encompasses both
sustainable production and sustainable consumption. The
most important aspect is the avoidance of wastages
associated with the activities of production, distribution and
consumption. Such assumption rules out the one sidedness of
materialism as a necessary condition for well-being and
prosperity. Eco-justice is suggested here as a method of
achieving well-being and preventing wastage. It refers to
observing eco-well-being for humans and for nature. In the
broadest sense, prosperity is attained through eco-well-being.
The definition also supports a number of Bahá’í Writings,
including the followings: ‘We see you increasing every year
your expenditures, and laying the burden thereof on your

Economics and the Bahá’í Faith

subjects;’10 ‘the preservation of the world of being;’11 ‘Verily
the most necessary thing is contentment under all
circumstances;’ 12 and ‘the consciousness of world
citizenship.’13

Sustainable development ensures quality of life that compels
wise use of resources, prevention of waste, effective use of
renewable resources within their capacity for renewal and
global equity, and justice in our actions in maintaining
responsibilities towards others and the environment. This
definition, along with government intervention, maintains a
balance in lifestyle, which is the basis for sustainable living.
This corresponds with the Bahá’í view that ‘Only when
material and spiritual civilisation are linked and coordinated
will happiness be assured.’ 14 The divers balancing acts in
lifestyle according to David Crocker, expert in public policy
and international development ‘depends on a person’s
specific abilities, opportunities, and choices. What promotes
and maintains balances often vary from person to person as
well as from society to society.’15 The level of consumption,
therefore, varies not only among different individuals and
families, but also changes from place to place. The concept of
sustainable consumption, thus, has a strong ethical
component. This involves the exercise of justice and
compassion in the sharing of resources between current and
future generations. The definition also supports the view
expressed by the Organization for Economic Cooperation and
Development (OECD) stated in 2002:

Bahá’u’lláh. Gleanings, p. 253.
Ibid. Tablets, p. 69.
Ibid. Quoted in Bahá’u’lláh and the New Era, p. 108.
Shoghi Effendi. World Order, p. 202.
‘Abdu’l-Bahá. Promulgation, p. 109.
David Crocker. Quoted in Neva Goodwin, ‘Consumption and Well-being,’ The
Transition to a Transition, pp. 207-219, at p. 214.
Sustainable Consumption

Sustainable consumption is the use of goods and
services that respond to basic needs and bring a better
quality of life, while minimising the use of natural
resources, toxic materials and emissions of waste and
pollutants over the life-cycle, so as not to jeopardise
the needs of future generations.16

Consumers are obviously one of the most important
stakeholders for any organization, because without the
support of customers or a demand for commodities,
organizations would be unlikely to survive. Customers are
not just those who buy finished products, but also all
organizations and manufacturers that purchase resources and
necessary equipment for the provision of goods and service.

An examination of the terms ‘needs’ and ‘wants’ would be
useful for this discussion. Traditionally, scarcity of resources
is considered as a fundamental economic problem. As
resources are scarce, consumers have to make choices. For
consumers, these choices are in terms of what to consume,
and how much to consume. Needs are essential and must be
provided at all times. However, it is not possible to satisfy all
human wants at all times, because as one is satisfied another
appears. This is particularly obvious in markets for
innovative products such as TVs, mobile phones, computers
and children’s toys. Therefore, although it is possible to
satisfy human needs, it may not be possible to satisfy all
human wants due to finite resources and infinite wants.
Economists consider this phenomenon as ‘the insatiability of
human wants.’ 17 In this sense, the economic problem is
insoluble. The problem of insatiability of human wants has
been the subject of much discussion in economics. For
example, Thorstein Veblen used the term ‘conspicuous

OECD, retrieved: <http://www.gdrc.org/sustdev/concepts/22-s-consume.html>.
See: Beardshaw. Economics, p. 29.
Economics and the Bahá’í Faith

consumption.’ The term refers to the tendency of people who
want above the subsistence level, which he calls the ‘leisure
class’. In more recent time Galbraith has pointed out that in
most advanced industrial economies most people have gone
beyond the level of physical necessity. According to
Galbraith consumption had been the highest purpose of
classical economic life, ‘the supreme source of Bentham’s
happiness, the ultimate justification of all its effort and toil.
With Veblen, it became in its fullest development a vacuous
thing, a service to puerile personal aggrandizement.’ 18
Galbraith, then, raises the question, which is the focus in the
Bahá’í Writings, as well: ‘Is consumption the highest purpose
of what the economic system is really about?’19 According to
Arthur Dahl, the issue of consumption to a Bahá’í ‘comes
down to each person’s definition of his or her purpose in life.
If it is material, then material consumption becomes an
important factor.’ 20 It is here that the purpose of life for a
Bahá’í in relation to consumption of goods and services
needs to be examined. The founder of this Faith made the
purpose of life for Bahá’ís clear: He states, ‘One indeed is a
man who, today, dedicateth himself to the service of the
entire human race.’21 Esslemont writes, ‘When asked on one
occasion: What is a Bahá’í? ‘Abdu’l-Bahá replied: To be a
Bahá’í simply means to love all the world; to love humanity
and try to serve it.’22 Based on these passages, if the purpose
of life for a Bahá’í is such values as service to humanity and
awareness of the needs of others, then the whole perspective
changes. With such an attitude, everyone is mindful of others,

Galbraith. A History of Economics, p. 176.
Ibid.
Arthur Dahl. ‘Sustainable consumption and human prosperity,’ 2nd
International Conference of the Environment Forum, 6-8 November 1998, De
Poort, The Netherlands.
Bahá’u’lláh. Gleanings, p. 248.
Esslemont. Quoted in Bahá’u’lláh and the New Era, p. 71.
Sustainable Consumption

and tries to serve others even if they are in one’s view,
heedless. This leads to ensuring the preservation and
availability of resources for a wider society, now and the
future.

Arthur Dahl holds a visionary and creative view that in an
ideal world those goods and services that are damaging to the
ecosystem, and do not possess the features of sustainability,
and are not in line with human dignity will be removed from
the market. For Dahl, the list of such unnecessary and
damaging commodities includes:
Most military establishments and arms manufacture,
industries supporting conspicuous consumption and
luxury goods, the use of planned obsolescence as a
tool to maintain sales, most advertising and excessive
‘brand’ competition and marketing gimmicks,
commercial sports and some forms of entertainment,
and such harmful products as pornography, drugs,
gambling, alcoholic beverages, tobacco and possibly
even meat. [Hence, he is raising a reasonable
question] How much of the present economy would
be lost if damaging, destructive or useless kinds of
consumption were eliminated.23

But what will be the replacement suggested by Dahl for the
economic losses of eliminating those commodities that are
unnecessary or damaging to the environment? Examining
some of the guiding principles of the founder of this Faith
such as ‘to carry forward an ever advancing civilisation’24 ,
and ‘human nobility’25, it is possible to argue that in an ideal,
sensible and dynamic society, in the absence of unnecessary
goods and services there will be opportunities for creating
alternative products and services more valuable, beneficial

Arthur Dahl. ‘Sustainable consumption and human prosperity.’
Bahá’u’lláh. Gleanings, p. 215.
Ibid. Tablets, p. 173.
Economics and the Bahá’í Faith

and befitting of human dignity such as additional social
services, teaching opportunities, increasing the possibility of
research and development and innovation in areas such as
food and agriculture.

In a dynamic human society, Arthur Dahl believes that
‘sustainability is fundamentally a question of balance
maintained over time. It is, thus, something that cannot
easily be scaled and measured, since it is a quality of motion
rather than a fixed point.’26 Hence, sustainability would be
achieved when there are no forces to upset supply and
demand and hence maintaining equilibrium condition through
moral incentives. Dahl refers to examples such as ‘the limited
size of a resource, inadequate supply inputs or excessive
demand for outputs, damaging pressures such as
pollution.’ 27 Consequently, most factors that cause
unsustainability led to market imbalances. Dahl’s argument
agrees with the Bahá’í Writings that the current socio-
politico-economic and environmental problems are due to
imbalances that exist between the material and spiritual
aspects of life, and until material civilisation ‘becomes
combined with divine civilisation, the desired result, which is
the felicity of mankind, will not be attained.’28 Sustainability
is, therefore, an attempt to take good care of the earth’s
resources. It aims to meet the needs of this generation while
protecting resources for future generations and at the same
time, preserving and respecting the environment.
Sustainability is a dynamic process, which affects us and is
affected by us, thereby needing close attention and great care

Arthur Dahl. ‘Towards Indicators of Sustainable Development’, United Nations
Environment Programme, 1995, retrieved:
<http://www.un.org/earthwatch/about/docs/inddahl.htm >.
Ibid.
‘Abdu’l-Bahá. Bahá’í World Faith, p. 116.
Sustainable Consumption

in order for us to meet our own needs without upsetting
others. It involves responsible use of finite resources.

Just as there is rapid and continuous economic growth and
higher standards of living alongside increasing levels of
income and capital investment that are rapidly growing and
maximizing the returns to their owners, there is also rapid
technological advancement overwhelmingly affecting world-
trading relationships. One of the obvious examples of the
impact of increasing know-how and technological
development is mass production and consequently over-
consumption by consumers as a symptom of the crisis of
materialism, leading to unsustainability and accompanying
challenges of consumerism. Globally, consumers are exposed
differently with the experience of consumerism.

According to influential economist of 20th century Paul
Krugman, the continual application of economies of scale by
global producers using new technology means that many
countries, including China, can produce very cheaply, and
export surpluses. This, along with an insatiable demand for
choice and variety, means that countries typically produce a
variety of products for the global market, rather than
specialize in a narrow range of products, rendering the
traditional theory of comparative advantage almost obsolete.

5.3 Challenges of consumerism
The concept of the consumer and consumer society or
consumerism sits at the centre of numerous current debates
among policy-makers, marketers, politicians, and
environmentalists. Consumerism is representing by Gabriel
and Lang as ‘a moral doctrine in developed countries; the
ideology of conspicuous consumption; an economic ideology
for global development; a political ideology; and a social
Economics and the Bahá’í Faith

movement promoting and protecting consumer rights.’29 The
culture of consumerism has created a competitive market, and
misguiding consumers through manipulation of the market.
This requires especial attention.

In recent times, a growing number of people have been
enjoying higher standards of living, which led to the creation
of ‘consumer society.’ In particular, in the periods between
1996 and 2011, forty countries moved from the lower income
to the high-income categories. This is about 20% of the world
population that moved from a ‘developing economy’ status in
1996 to Upper Middle/High Income status by 2011. In 1996,
the World Bank classified about 58% of the world’s
economies as low-income or developing, and by 2011 that
percentage had fallen to only 39%. This signifies that
millions of people have come out of absolute poverty and are
now enjoying a better quality of life, particularly in China.
David Dollar, who worked for five years as the World Bank’s
Country Director for China and Mongolia in the East Asia
and Pacific Region, states: ‘Poverty, inequality and social
disparities during China’s economic reform declined’.
Between 1981 and 2005 it is estimated that the poverty rate
fell from 85% to 15%, roughly 600 million people relieved
from poverty. 30 This pattern of change in employment and
income earning is a factor, which led to consumerism. A
major issue in consumerism is in relation to sustainability and
the excessive level of consumption in developed countries,
both at the individual level and collectively. This can become
a bigger problem as the developing countries are progressing
and joining the ranks of other consumer countries. Some

Yiannis Gabriel and Tim Lang. The Unmanageable Consumer, 2nd ed., London:
Sage, 2006, pp. 85-86.
See: David Dollar. Retrieved: <http://data.worldbank.org/topic/poverty >,
[accessed: 12 December 2014].
Sustainable Consumption

people in such countries will not be ready to give up the
newly acquired benefits of economic growth in the name of
justifying, for example, the climate change. Followings are
some examples of consumerism and relevant issues gathered
by Bahá’í expert in agriculture and sustainable consumption,
Paul Hanley:
Mass consumption of fast food unleashes a kind of
trophic cascade of health, social, and ecological
impacts. It is well established that the highly refined,
high – carb western diet typified by fast food is a key
driver of rapidly escalating health care cost.31

Hanley believes that mass consumption of fast food releases a
kind of trophic cascade of health, social, and ecological
impacts. According to him, while wealthy consumer societies
rightly boast high longevity, the other side of that coin is the
rise of chronic illnesses, with more than nine million
Canadians – a quarter of the population – suffering from
heart disease, diabetes, and cancer. Economists are relating
these complications with the concept of marketing and its
effects on consumers. Given these current issues, it is
worthwhile re-examining the ethical basis for the consumer
society and the marketing techniques and their effects on
sustainability. It would also be important to include the
science of climate change.

A definition of consumerism is useful to discuss the
challenges of the term. With the advent of mass production
and cost-effective channels of distribution, which are now
possible through technological advancement and effective
communication, the average person is immersed in the
generation of income to purchase items in excess of basic
needs. In some societies, this overall pattern of living has led

Paul Hanley. Eleven, Victoria BC: Friesen Press, 2014, p. 18.
Economics and the Bahá’í Faith

to consumerism. Other similar terms used are ‘over-
consumption’ and ‘consumer society.’ Consumerism
increasingly dominates other aspects of life such as politics,
education, health, and personal relations.

According to Matthew Hilton, specialist in social history,
consumerism is ‘the absorption of social life into the world of
commodities.’32 It is the full participation in modern society,
or as a negative expression, such as stated in Vance Packard’s
The Waste Makers where it was equated with ‘excessive
materialism.’33 Ralph Nader in 1968 wrote in the New York
Review of Books:
Consumerism is a term given vogue recently by
business spokesmen to describe what they believe is a
concerted, disruptive ideology concocted by self-
appointed bleeding hearts and politicians who find it
pays off to attack the corporations. Consumerism,
they say, undermine public confidence in the business
system [and] deprives the consumer of freedom of
choice.34

As Hilton points out ‘Subsequently, the term came to be used
more positively, by the consumer movement itself, at it began
to notice a series of campaigning successes in the early
1970s.’35 For Roger Mason ‘consuming for status has, in fact,
become a defining element of the new consumer societies.’36

Ecological economist, Tim Jackson argues that consumer
goods – from packaged foods and cars to electronics – have
come to play a role in our daily lives that goes well beyond

Matthew Hilton. Consumerism in the 20th Century Britain, Cambridge:
Cambridge University Press, 2003, p. 4.
Vance Packard. The Waste Makers, New York, 1960, p. iii.
Ralph Nader. Quoted in Hilton, Consumerism in the 20th Century Britain, p. 5.
Matthew Hilton. Consumerism in the 20th Century Britain, p. 5.
Roger Mason. The Economics of Conspicuous Consumption, p. vii.
Sustainable Consumption

material functionality.37 Similarly, Philip Cushman refers to
the extended ‘self’, which is ultimately an ‘empty self’ that
stands in continual need of being filled up with food,
stimulants, and consumer products. He argues that people are
strongly influenced by social comparisons, thus the empty
self is prey to powerful social forces and specific institutions
over to the pursuit of consumerism. According to Cushman:
Perhaps the most telling point of all is the rather too
perfect fit between the continual consumption of
novelty by households and the continuous production
of novelty in firms. The restless desire of the empty
self is the perfect complement for the restless
innovation of the entrepreneur. The production of
novelty through creative destruction drives and is
driven by appetite for novelty in consumers.38

On the other hand, although the advent of globalization has
benefited both the poor and the rich, the rapid and continuous
economic growth has led to increasing the gap between the
rich and the poor. This means that the wealth and prosperity
of the rich has grown much faster than that of the poor.
Economist Herman Daly has argued that consumerism and
the consumer economy are founded on a philosophy of
continuous economic growth, which he considered as
uneconomic growth. Therefore, he supports a qualitative
economic growth:
Even though economies are still growing, and still put
growth in first place, it is no longer economic growth,
at least in wealthy countries, but has become
uneconomic growth…the environment and social
costs on increased production are growing faster than
the benefits…The major job…is to overcome this
denial and shift the path of progress from quantitative
growth to qualitative development, from bigger to

Tim Jackson. Prosperity Without Growth, London: Earthscan, 2009, pp. 98-
102.
Philip Cushman. Cited in Hanley, Eleven, pp. 26-27.
Economics and the Bahá’í Faith

better.39

As Daly states, the rapid and unlimited economic growth that
is taking place today in industrialised nations and in emerging
economies, has led to a deluded consumer society. He argues
that policies are needed to guide society towards a balanced
material standard of living, and a more equitable distribution
of wealth.

Within the current economic system of rapid economic
growth, there is a risk of being locked into a form of
development that is damaging to the environment in the long
run. Commenting on this Wilkinson and Pickett argue that ‘as
the rich countries reach the end of the real benefits of
economic growth, we have also had to recognise the
problems of global warming and the environmental limits of
growth.’ 40 If consumerism continues in its current
unsustainable state, it will require more resources to increase
the level of output in order to meet related demands, leading
to further environmental damage. Also, in causing high
demand, consumerism can cause an increase in prices,
leading to global inflation which will be added to the
suffering of the poor.41 This, in turn, would cause additional
suffering to the poor and widen the gap between the rich and

Herman Daly. ‘Rio plus 20 needs to address the downsides of growth,’ Natural
Resources Forum, vol. 35, no. 4. P. 15.
Richard Wilkinson and Kate Pickett. The Spirit Level, p. 11.
As a result of consumerism and global inflation, the measurement of poverty
based on $1 a day has increased to $1.90 a day. Poverty is measured using the
international poverty line, which is a universal standard. It indicates the amount of
income required to provide essential resources for survival. Since 2015, the World
Bank’s new international poverty line was set at $1.90. The UN states that while
global poverty rates have been cut by more than half since 2000, one in ten people
in developing regions still lives on less than $1.90.
Retrieved on 12 April 2021: < https://www.concern.org.uk/poverty-definition-
statistics-and-causes?gclid=Cj0KCQjw38-
DBhDpARIsADJ3kjljbQCVJ0oqx2FKXigdfl0Iqk2E3GuWtryYYB7LIz4jW1Vo
CYjQeoUaAgRpEALw_wcB>
Sustainable Consumption

the poor in both developed and developing countries.

Also, if we look at the massive rise in living standards and
material wealth that accompanied economic growth in the
developed world in the twentieth century, one of the key
mechanisms involved was the strong association between
those that produced and those that consumed. This led to
employing increasing numbers of workers in factories and
other production units, paying them a decent wage for a
decent life and thus fuelling rising demand for more products
as those workers become better off. Globalization has
strengthened this process by creating a mechanism to link
production and consumption, through outsourcing the
production of Western consumer goods to companies in less
developed countries. For example, workers in many less
developed countries now primarily carry out the production
of clothing and footwear for consumers in the developed
world.

According to Barry Smart, with the exception of the last
category all of the distinct uses listed are closely interrelated
aspects of an ethos of consumerism that gathered momentum
throughout the twentieth century with the accelerating global
diffusion of the economic logic of modern capitalism in the
West. Considering the modern life-style in the West and
other developed countries, consumerism is represented by
Gabriel and Lang with five characteristics, as: ‘a moral
doctrine in developed countries; the ideology of conspicuous
consumption; an economic ideology for global development;
a political ideology; and a social movement promoting and
protecting consumer rights.’42

Gabriel and Lang. The Unmanageable Consumer, 2006.
Economics and the Bahá’í Faith

The Bahá’í Writings warned about consequences of the
excess of consumer society and material civilisation and how
it would lead society into crisis. Bahá’u’lláh said ‘If
[materialism] carried to excess civilisation will prove as
prolific a source of evil.’43 Some of the characteristics of the
present materialistic civilisation would seem to fit this insight
from the Universal House of Justice:
Today the world is assailed by an array of destructive
forces. Materialism, rooted in the West, has now
spread to every corner of the planet, breeding, in the
name of a strong global economy and human welfare,
a culture of consumerism.44

Materialism, therefore, is the root cause of many social
illnesses, consumerism being one. Hanley has explored this
subject and noted numerous worrying examples of the
present condition of the world associated with materialism.45
Smart argues that global brands, developed mainly in the
West, have successfully penetrated local cultures and
attracted people around the world to consume this or that
commodity by generating persuasive and appealing
promotional lines and marketing messages. For example, ‘It’s
the real thing’ (Coca-Cola), ‘Just do it’ (Nike), Impossible is
nothing’ (Adidas), or the zeitgeist defining, ‘because you’re
worth it’ (L’Oréal), which effectively exemplifies the egoistic
individualism central to late-modern, materially acquisitive
consumer culture.

It is fair to state that marketing has been praised in a number
of ways. Through information, marketing provides customers
can make more knowledgeable decisions than their
predecessors about which products they want to meet their

Bahá’u’lláh. Gleanings, p. 342.
Universal House of Justice. 2 April 2010.
Paul Hanley. Eleven, pp. 8-9.
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needs and desires. Marketing is also praised for contributing
to the economics of developing nations. It brings them goods,
services, and knowledge of products that they would
otherwise not have. Marketing, particularly as a social
marketing has been praised. Marketing techniques, when
used by social marketers, have addressed social concerns,
such as leprosy, DIDS, and forest fire. The results have been
rather dramatic in some areas. Consequently, according to
Brenkert ‘social marketers require a theory of individual and
social welfare according to which they may justifiably act on
behalf of the individuals they seek to benefit. 46 However,
currently, social marketing lacks such a theory.

Advertising is about providing information, and according to
Richard Pollay, the communication of values must be at the
heart of advertising. Pollay considers that the saturation of
everyday life with increased marketing communications, has
generated an ideology of materialism in society to ‘institute
in our culture an identification of consumption with
happiness.’ 47 Values influences thoughts, feelings, and
behaviour of people in different ways. Commenting on the
role of value in marketing and advertisement Pollay writes:
Values are desirable, by all definitions. Popular use of
values is often loose, as though some people have
values and others do not. Values should refer to those
criteria and standards of judgment that govern both
goals and behavior. We all have values, just as we all
have motives, needs, or personality traits. We can be
described or measured along common dimensions.
Values are deemed among the dimensions of the deep
structure of personality, influencing perceptions,
attitudes, emotions, and behaviors. Specific value

George Brenkert. Marketing, Ethics, and Morality, California: Blackwell
Publishing Ltd., 2008, p. 214.
Richard Pollay. Journal of marketing, vol. 51, no. 3, July 1987, pp. 104-109, at
p. 108.
Economics and the Bahá’í Faith

dimensions, such as maturity, practicality, modesty,
courtesy, dignity, health, popularity, freedom, pride,
and security, are often ‘motherhood’ criteria endorsed
by most people. Cultural values are inevitably largely
shared values. What distinguishes individuals, then, is
not the list of values they endorse, but the relative
importance of those values. This value hierarchy
influences thoughts, feelings, and behaviour when
competing value considerations conflict, as they do in
all but trivial decision situations.48

Therefore, value hierarchy is able to play important role in
influencing consumer decision-making in expansion of
marketing and global communications technologies that has
led to an increase in demand for products such as satellite TV
and the Internet. Such developments have initiated the
promotion of a consumerist lifestyle and the vision of better
standards of living, not just within national borders but also
on a global scale. The promotion of a consumerist lifestyle
has contributed to increasing demand not only by consumers
but also by the private sector and government. These
economic activities, according to Keynes, lead to increasing
aggregate demand and hence the economic growth of a
country. But to what extent will such a relationship between
consumption and growth continue to exist in a global market.
Expounding on this view, Andrew Crane and Dirk Matten
write:
Materialism and consumerism were often justified on
the economic argument that increasing demand would
lead to economic growth, which ultimately benefits
all. In the global marketplace, however, even this
basic relationship between consumption and growth
appears to be under threat. This is due to the
increasing dislocation of production and consumption

Ibid. p. 106.
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occurring under globalization.49

As pointed out by Arthur Dahl, one of the consequences of a
consumer society is that the market produces a substantial
number of products that are unnecessary or are in low
demand. Similarly, consumer knowledge and information
may not be at a level to realise the consequence of
disadvantage goods and services, not making the right
choices as a result. For instance, lack of education and in
sufficient information about health makes people illiterate
and poor in health. This manifest itself in an unsustainable
lifestyle, which is detrimental to human life and to the
environment. This, according to Dahl and Galbraith leads to
serious disequilibrium or disparity in the market. Galbraith
argues that:
This disparity carries to the point where it is a cause
of social discomfort and social unhealthy. The line,
which divides our area of wealth from our area of
poverty, is roughly, that which divides privately
produced and marketed goods and services from
publicly rendered services. Our wealth in the first is
not only in startling contrast with the meagreness of
the latter, but our wealth in privately produced goods
is, to marked degree, the cause of crisis in the supply
of public services.50

The assumption is that policy makers have failed to recognise
the challenges of the market and of the consumerism
Galbraith is talking about. Some of these challenges are:
environmental risks, the misuse of the power of the
multinational corporations, and lack of sufficient moral
leadership. A particular challenge is misleading marketing.
George Brenkert argue that ‘Marketing has been criticised

Crane and Matten. Business Ethics, Oxford, Oxford University Press, 2004, pp.
284-285.
Galbraith. The affluent society, p. 186.
Economics and the Bahá’í Faith

more generally as simply being wasteful, expending billions
of pounds to persuade people to buy products they don’t
need. It is accused of bringing about the commercialisation
of society and human relations. It is reproached for
promoting both materialism and consumerism.’ 51 Research
done by Brenkert indicates that the problem of obesity is
attributed, at least in part, to the marketing practices of fast-
food producers and advertisers. This is due to unregulated
capitalism and its offshoot, the free-market economy.
Galbraith also believes that policy makers have failed to see
the importance, and indeed the urgent need, of maintaining a
balance between the two [control and coordination of the
market].’52 A number of countries have already adopted the
policy of regulating the market, such as the Competition
Commission in the United Kingdom and the European Union.

The Bahá’í Writings provide a number of principles that,
taken together with a basic spiritual transformation in society,
show the pathway for sustainable living and guide
communities towards a more sustainable future. One such
belief is an understanding of human nature, which encourages
us to re-examine who we are and what our purpose in life is?
Universal and compulsory education, and the spiritual
principle of moderation are strongly suggested in the Bahá’í
Writings as a solution to the problem of materialism and
consumerism.

5.4 Importance of consumer education
The two Bahá’í principles of harmonisation of science and
religion and independent investigation of truth form the basis
for inspiring Bahá’ís to make appropriate decisions about
their choices of goods and services. Consumer education can
George Brenkert. Marketing, Ethics, and Morality, p. 2.
Galbraith. The affluent society, p. 186.
Sustainable Consumption

provide people with the knowledge to consider the
advantages and disadvantages of goods and services, or to
distinguish between true and untrue advertisements.
Knowledge and information are critical determinants of
market efficiency. Therefore, the quality of information
directly affects the ability of the market to meet society’s
collective material needs.

The consumer determines the success and failure of every
business organization. Consumers are the reason for
continued production of a product and hence for a business to
be sustained. The success of every marketing plan must begin
with the consumer and depends on whether the marketing
plan has considered consumer behavior. Without such
consideration, the marketing plan would be a failure.
Similarly, the success of all aspects of a product, including its
price, quality, shape, color, size, taste, and distribution
channel, depends on the satisfaction of consumers.
Ultimately, consumers can influence producers,
manufacturers, suppliers, and the middlemen to deliver goods
and services according to consumer choice. Therefore,
‘consumer sovereignty’ is an expression that signifies the
power of consumers to determine what goods and services
need to be available in the market. In other words, it is mostly
consumers who can determine the way in which resources are
allocated. Keeping in mind that effective allocation of
resources is one of the fundamental principles of economics,
consumer education helps to allocate resources more
effectively and efficiently. Under this condition, consumers
become more responsible and vigilance towards resources
and also people’s needs. Such an education is necessary
because of the vulnerability factor of certain consumers such
as income, age, education and health. Consumer education is
also helpful when dealing with the issue of consumer
Economics and the Bahá’í Faith

capability, for example freedom from limitation and rational
decision-making. It also helps with comparability and the
complexity of information that comes with the variety of
marketing techniques. As the market becomes more
competitive, there is also the issue of differentiating between
products, which requires a certain level of knowledge and
information to enable consumers to make a distinction
between them. The authorities in the UK have taken a
number of steps to assist ‘consumer education’ and thus
influencing sustainable consumption.

Loudon and Bitta examining the impact of consumer
education and write:
Consumers stand to benefit directly from orderly
investigations of their own behaviour. This can occur
on an individual basis or as part of more formal
educational programs. As we study what has been
discovered about the behaviour of others, we can gain
insight into our own interactions with the marketplace.
For example, when we learn that a large proportion of
the billions spent annually on grocery products is used
for impulse purchase, and not spent according to pre-
planned shopping lists, we may be more willing to
plan our purchases in an effort to save money. In
general, as we discover the many variables that can
influence consumers’ purchases, we have the
opportunity to understand better how they affect our
own behaviour.53

What is learned from the above statement is that consumer
behaviour can directly benefit consumers in a more formal
sense. The knowledge acquired can serve as data and
information for the development of educational programs
designed to improve consumers’ decision-making regarding

Loudon, D. L. and Bitta, A. J. Consumer Behaviour – Concepts and
Applications, pp. 19-20.
Sustainable Consumption

products and services. As consumers become better informed
about a sustainable lifestyle, they are inclined to demand
products that are not exploitative. Consequently, successful
organizations would be those that respond positively to
demands. In an age of a materialistic attitudes and market
complexity, consumer education is vital in improving
decision-making. One advantage of the ability approach is
that it recognises individual as well as social variation in the
level of consumption needed to achieve a sustainable
lifestyle.

In spite of the effectiveness of consumer education and the
way it can influence firms to produce goods and services that
are sensitive and sustainable, producers have the power to
influence consumers through marketing techniques. In
reference to private ownership which is a feature of the
market economy Shoghi Effendi states, ‘In the Bahá’í
economic system of the future, private ownership will be
retained, but will be controlled, regulated and even
restricted.’ 54 Therefore, the remedy suggested is through
legislation and regulating the market, which can run
alongside consumer education. In practice consumer
protection laws are established in most countries under the
banner of ‘consumer rights.’ In terms of an ethical
consideration, we can define rights in relation to natural
rights, which are those basic, important, undeniable, befitting
entitlements that should be respected and protected at all
times. The concept of rights was introduced and led to the
United Nations Charter of Human Rights, issued in 1948.
This has been a powerful standard for worldwide
enforcement of various basic rights. The most recent
manifestation of this is the Charter of Fundamental Human

From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi.
Economics and the Bahá’í Faith

Rights for the European Union agreed in the Nice Treaty in
2000. In the United Kingdom Consumer Protection Law
under the supervision of the Competition Commission and
the Office of Fair Trade also protects consumers.

Consumer education, although necessary to achieve
sustainability, is not sufficient. There are other areas that
need to be considered. The issue is not about what product or
how much of what product, but the question of why a
product? Hence, the focus would be on why a product is
needed, rather than what is needed. Increasing consumer and
producer knowledge and responsibility greatly influence why
a product is needed. For the consideration of the ‘why’
question, the model of economic sustainability in chapter 7
incorporates principles such as cooperation, moderation, and
consultation.

In many instances, the lack of sufficient consumer knowledge
and information leads to under-consumption of merit goods,
and over-consumption of demerit goods. Merit goods55 with
positive externality by definition are those goods and services
that are valuable to an individual and valuable to the whole
society, such as education and vaccination. In other words,
the benefits to society exceed the private benefits. Demerit
goods with negative externality are those that are unsafe to
the individual and the whole society, such as the use of hard
drugs and gambling. Similarly, there will be under-
production and over-production, which consequently lead to
shortages and surpluses of output. The consumers’ actions
and producers’ reactions lead to a waste of resources, both
human and physical. Consumer education, in this way, can
greatly influence the market to allocate resources effectively,

John Sloman. Economics, p. 306.
Sustainable Consumption

or in economic terms, achieve equilibrium. Consumers, if
well informed, can shape the social impact of corporations,
and even their size, through their expenditure decisions.
Moral leadership is also needed in addition to consumer
education for a sustainable mode of production. On a
practical level, sustainability requires maintenance and social
responsibility at both the individual and corporation level.
Thus, consumer education, corporate social responsibility and
sustainability go hand in hand.

A number of guiding principles influence Bahá’ís, as
producers and consumers, to make right decisions about what
to produce and what to consume. For example, the principle
of universal and compulsory education assists Bahá’ís in
making a distinction between merit goods and demerit goods.
The principle of harmony between science and religion helps
a Bahá’í to become conscious of the benefits a product offers
not only to consumers but also its effects on the environment.
The consciousness and realisation of the principle of oneness
of humankind makes it possible to adopt a more sustainable
lifestyle and save resources for the benefits of those in need,
and a personal commitment and a wider loyalty to the whole
of the human race. Such an attitude will effectively influence
sustainable living. The theme of service is obviously crucial
to the Bahá’í understanding of sustainable consumption.
Service to humanity is closely associated with the ethical
concept of compassion and caring. Compassionate people
have deep awareness of the suffering of others. The Bahá’í
model of consultation helps Bahá’ís, individually and
collectively, to make well-informed decisions to live a well-
balanced life. The Bahá’í Writings emphasises on the
importance of the principle of moderation.

Economics and the Bahá’í Faith

5.5 Significance of the principle of moderation
Materialistic ideologies, including unregulated capitalism and
ego-centred values, underpin the economic problems
associated with over-consumption and consumerism. For
example, economic growth, according to Keynes, relies on
ever-increasing consumption as one of the components of
‘aggregate demand.’ 56 For genuine and effective action to
tackle the problem of consumerism, therefore, economic
theories such as the theory of demand in microeconomics
(classical), and aggregate demand in macroeconomics (new-
classical), and utilitarian theory, 57 which are money-
orientated, would not be appropriate. These theories are
inadequate to deal with the challenges of consumerism and
establishing sustainable consumption.

Moderation is an economic sustainability that requires
creating a balance between the lowest and the highest
standards of living. One extreme is when ‘the rich enjoy the
greatest luxury and comfort’58 and the other extreme is when
‘the poor are...in the state of abject need.’ 59 Therefore,
moderation is a condition when ‘there will not be the
abnormally rich nor the abject poor. The rich will enjoy the
privilege of this new economic condition as well as the

For John Maynard Keynes, the components of ‘aggregate demand’ include:
consumption, investment, government expenditure, and export minus import
(AD=C+I+G+X-M). Increasing aggregate demand cause Gross Domestic Product
(GDP) and hence the national income to rise. GDP is a measure of economic.
Utilitarian also expressed the idea that we all should be in greatest happiness.
The most eminent thinkers for this view are Jeremy Bentham, and John Stuart
Mill. Utilitarian argued that to achieve ‘the greatest happiness for the greatest
number of people’ income must be transferred from the rich to the poor up to the
point of complete equality, to the point at which there are no rich and no poor.
The reasoning according to utilitarian is that everyone has the same needs, and
everyone has the same capacity to enjoy life. See: The Oxford Dictionary of
Philosophy, p. 377.
‘Abdu’l-Bahá. Promulgation, p.132.
Ibid..
Sustainable Consumption

poor.’ 60 Hence, the economic description of moderation in
this model is expressed as eliminating extremes of wealth and
poverty.

For the purpose of this topic, we have to make a distinction
between consumerism and living well. The Bahá’í Writings
maintain the view that sustainability is associated with living
well but requires living in ‘moderation’. There is a
correlation between moderation and sustainable living;
sustainable living is a life-style when one enjoys resources
with consideration for other people, the environment and the
future generation. The Bahá’í Writings suggest a life-style
with moderation.

The word moderation can be defined as the action or an act of
moderating; limitation; restriction; and a fixed limit. It is also
described as the quality of being moderate in various senses,
in reference to conduct, opinions, demands, and desires or
their indulgence.61 Alternatively, moderation is avoidance of
extremes, especially in one’s behavior. 62 Moderation at
societal level is ‘avoidance of extremes,’ or more
specifically, elimination of ‘ extremes of wealth and
poverty.’ 63 In our day-to-day living, the application of
moderation in relation to food is seen as eat simple,
enjoyable, healthy, sustainable, lawful, and being thoughtful.
Shoghi Effendi, referring to the Bahá’í economic system of
the future, states that it is ‘A system that prevents among
others the gradual control of wealth in the hands of a few and
the resulting state of both extremes, wealth and poverty.’64

Ibid..
See: Oxford English Dictionary. 2nd ed., p. 946.
Ibid.
Shoghi Effendi. Promised Day is Come, p. v.
Ibid. Letter dated 28 October 1927.
Economics and the Bahá’í Faith

The Bahá’í distributive justice is intended to control the
excessive accumulation of wealth in the hands of few. A part
of the total wealth will be distributed among the poor.
However, this will be a gradual process. But will the
principle of moderation help to eliminate the gap between the
rich and the poor? An example would be that when people
use all the good things that are created in abundance
effectively, there will be no need for the production of
unnecessary, damaging, and destructive products discussed
earlier. In this way resources will be saved for improving the
lives of the poor.

Moderation, if practised, can maintain a balance in the
material and spiritual life of individuals, and at the same time
it can be a solution to the societal problems associated with
extremes. Moderation and lack of it can impact on all aspects
of a society’s lifestyle, economics, environment and culture.
For example, regarding the effect of moderation on the
environment Arthur Dahl writes, ‘Moderation in consumption
is necessary to stay within environmental limits.’65 To attain
this balance, Bahá’ís are counselled that ‘In all matters
moderation is desirable.’66 One may wonder if we spend and
consume sensibly because of the economic conditions or
because by doing so we acquire virtues. It is possible that we
may be spending sensibly and practising moderation due to
economic conditions; nevertheless, by exercising this
principle, we acquire virtues. The moral implication is that
one should be kind and compassionate and share with those
in need and have empathy and understanding for those with
inadequate living. It also requires protecting the environment

Arthur Dahl. ‘Science and Values as complementary foundations for consumer
citizenship’, First International Conference of the Consumer Citizenship Network,
UNESCO, Paris, 1-2 March 2004.
Bahá’u’lláh. Tablets, p. 69.
Sustainable Consumption

and respecting the future generation. All of these are virtuous
qualities that one is require to apply in relation to others.
Moderation necessitates control of one’s selfish desires and
refraining from greed and self-indulgence. If we define the
purpose of economics as an art of effective and efficient use
of resources, then moderation and greed would be at the
opposite poles. Greed leads to wastage of resources, while the
aim of economics is the reduction and prevention of wastage.

Moderation also has important implications in economics
through resource allocation. The exercise of moderation is
commendable in all things including in trade. The lack of
control on the growth and enlargement of organizations may
lead to the creation of monopolies. The out-of-proportion
expansion can be challenging for the economy and a
disadvantage to the organization. One of the difficulties of
such out-of-proportion expansion is the creation of monopoly
power and its undesirable and harmful consequences which
includes: wastage or lack of appropriate control over
resources, problems of coordination and cooperation among
various departments, and as a barrier to desirable
competition. By desirable competition, I mean activities that
are morally right and serve for the advancement of wider
society. Since large companies hold a great share of the
market, if they fail, the entire market would face crisis. Thus,
a moderate expansion of trade appears to be safer for
organizations and for the entire market.

The argument presented here is that moderation requires a
limit to economic growth. However, the extent to which
moderation is required for the progress of a country varies
from one economy to another. In the initial stage, for
example, an economy requires a faster and higher degree of
economic growth to achieve reasonable take-off. Expert in
Economics and the Bahá’í Faith

economic growth and development Walt Rostow considers
five stages for economic growth. 67 Among them the stage of
take-off is an important aspect of economic growth. This
stage requires a substantial volume of resources of all kinds,
including human, physical, and capital resources; plus,
adequate saving and investment. Hence, the exercise of
moderation may not be very helpful at this stage, particularly
for less developed countries. Also, from an economic
perspective, certain industries must remain large, called
‘natural monopolies’ 68 otherwise they will suffer from
diseconomies of scale that is not beneficial to consumers and
the wider society, such as water, gas and electricity
companies.

The exercise of moderation varies among people and depends
largely on individual and family circumstances such as the
size of the family, employment, the level of earnings, and the
pattern of individual and family life-style. What kind of
moderation is suggested for those who are in absolute
poverty? Once one crosses the boundaries of moderation,
Bahá’u’lláh confirms ‘it will prove a source of evil.’ 69
Economically, one can consider the term ‘evil’ in this
passage as the production and consumption of those products
that are unsustainable and bring about the wastage of rare

Michael Todaro. Economic Development, pp. 79-80. (Rostow wrote in the
opening chapter of the stages of economic growth: the traditional society, the pre-
conditions for take-off into self-sustaining growth, the take-off, the drive to
maturity, and the age of the mass consumption.)
Massimo Motta. Competition Policy: Theory and Practice, Cambridge:
Cambridge University Press, 2004, pp. 12-13. (In some countries like UK
monopolies are regulated and monitored under Competition Commission (CC).
Monopoly is defined as a firm having more than 25% market share. CC also make
recommendations such as seeking changes in the firms’ business practices,
imposing price controls and even divestment. This introduces the possibility of
structural interventions, which is more typical of regulatory regimes than
competition policy.)
Bahá’u’lláh. Tablets, p. 69.
Sustainable Consumption

earth resources, environmental degradation, and
consumerism. Hence, even during a period of abundance,
moderation is appreciated and recommended.

We should also make a distinction between a moderate way
of life, simple living, and asceticism. Voluntary simplicity or
simple living can be described as when individuals or
families, by their own choice, reduce the consumption of
goods and services to their basic needs, or avoid
accumulation of wealth. Voluntary simplicity is different
from a situation where individuals are poor and are forced to
spend less, or have a simple life because, for example, they
are unemployed. Simplicity, however, may not be
constructive for economic reasons. For example, it may cause
unemployment, slow economic growth, and less government
revenue and its consequences on public services. However,
voluntary simplicity adopted as an alternative way of life is
very different from simplicity that is forced on people by
poverty. This discussion focuses mainly on the voluntary
choices available to those living in relative abundance, in part
because much of the solution to poverty lies in the choices
made by those who are not poor. It may be argued that lower
consumption or simplicity may lead to high unemployment.
However, the world is full of purposeful, productive and
satisfying jobs waiting to be done in areas such as education,
urban renewal, environmental restoration, childcare, and
health care. In Bahá’í view a simple needs-orientated
economy with the concept of moderation will be better able
to address these urgent concerns.

A person may choose simple living for different personal
reasons, such as health, an increase in quality time with
family and friends, stress reduction, personal taste, a reaction
to materialism and to support an anti-consumerist movement.
Economics and the Bahá’í Faith

Simple living is not ‘living in seclusion or practicing
asceticism.’ 70 Asceticism is not encouraged in the Bahá’í
Writings. Obviously, most human beings, to some degree,
experience physical suffering throughout their lives;
however, it should not be invited or made into a way of life.
The Bahá’í Writings discourage practicing asceticism, which
is characterised by abstinence from worldly pleasures as a
lifestyle. The concept of detachment is interpreted by
‘Abdu’l-Bahá as:
Detachment does not consist in setting fire to one’s
house, or becoming bankrupt or throwing one’s
fortune out of the window, or even giving away all of
one’s possessions. Detachment consists in refraining
from letting our possessions possess us.71

‘Abdu’l-Bahá, then, clarifies his interpretation of detachment
by stating examples including ‘A prosperous merchant who is
not absorbed in his business knows severance. A banker
whose occupation does not prevent him from serving
humanity is severed. A poor man can be attached to a small
thing.’ 72 Explaining the two concepts of detachment and
asceticism and their worldly benefits Shoghi Effendi writes:
The standard inculcated by Bahá’u’lláh seeks, under
no circumstances, to deny anyone the legitimate right
and privilege to derive the fullest advantage and
benefit from the manifold joys, beauties, and
pleasures with which the world has been so plentifully
enriched by an All-Loving Creator. "Should a man,"
Bahá’u’lláh Himself reassures us, "wish to adorn
himself with the ornaments of the earth, to wear its
apparels, or partake of the benefits it can bestow, no
harm can befall him, if he alloweth nothing whatever
to intervene between him and God, for God hath
ordained every good thing, whether created in the
heavens or in the earth, for such of His servants as
Ibid. p. 71.
‘Abdu’l-Bahá. Divine Philosophy, p. 135.
Ibid.
Sustainable Consumption

truly believe in Him. Eat ye, O people, of the good
things which God hath allowed you, and deprive not
yourselves from His wondrous bounties. Render
thanks and praise unto Him, and be of them that are
truly thankful.73

The legitimate privilege to derive the fullest advantage and
benefit from the manifold joys, beauties, and pleasures of this
world, according to Shoghi Effendi requires ‘the maintenance
of…a high standard of moral conduct.’74 Maintaining such a
high standard of moral conduct in all aspects of life, then it is
left to the discretion of individuals to decide their degree of
moderation, as this may vary from person to person.

5.6 Human contentment and satisfaction
It is contentment and not complacency that the Bahá’í
Writings promote. The former is a virtue that harmonises the
distributive function, while the latter may even impede the
productive function and progress. Complacency is the
expression of the lack of motivation to acquire and
accumulate. The Bahá’í view is that society should be rich
and not a minority of population. Society is more than just
individuals. Materially, society consists of schools, hospitals,
roads, and other infrastructures and services. At the societal
level, the emphasis is ‘to ensure the welfare of the
commonwealth’75 and at the individual level a Bahá’í should
be content ‘with but little of this world’s goods.’ 76 The
challenge, however, is how to be content with little of this
world while considering wealth commendable. Do these
contradict each other? It is argued here that the spirit of both
concepts conveys the same meaning and that is a sustainable
lifestyle.
Shoghi Effendi. Advent, p. 44.
Ibid.
‘Abdu’l-Bahá. Promulgation, p.181.
Ibid. Bahá’í World Faith, p. 375.
Economics and the Bahá’í Faith

What is the economic significance of being content with
little? Viewed only from an economic perspective reducing
consumption leads to a reduction in demand and hence in
production. This has serious implications for employment,
income, investment, and other aspects crucial to economic
well-being and growth. Reducing consumption by developed
nations means less export by developing countries. This is
not adding to the economy of less developed countries, but
makes it more fragile. Many multinational companies operate
in those countries. Developed countries provide an important
market for imported products from developing economies
and reduced expenditure by developed nations will have
serious implications on export in developing countries. To a
great extent, consumer spending is an important means to
bring an economy out of a slow economic activity, although
the very expression ‘consumer society’ suggests
disequilibrium and global market distortion. However, we
can also argue that the Bahá’í view of being content with
little and sharing the extra with the low-income group does
not actually reduce economic activity because the increase in
the economy caused by growth in the lower income group is
more than the decrease in the economy caused by reducing
consumption in the high-income group. This is true since the
majority of the world’s population live in developing
countries and are considered the lower income group.
Therefore, there is a need for a new mind-set for both the
lower and higher income groups for adopting a sustainable
life style. However, there would be some economic
implications when the lower-income group moves to the
middle-income group as noted in recent years. These include
increasing global inflation, shortage of resources, problems
associated with consumerism, and market disequilibrium,
which would have an undesirable impact on sustainability.
Sustainable Consumption

Commitment to sustainable development necessitates a
gradual and high degree of responsibility and moral
obligation by people towards the essentials of sustainability.
Within the Bahá’í community this is attained mainly through
education. For moderation, contentment, and satisfaction with
basic human needs to become feasible, these moral principles
must be inculcated from a young age. The Bahá’í community
considers the education of children as an important part of
this process. The Universal House of Justice encourages
Bahá’í parents ‘to rear children that see their own welfare as
inseparable from the welfare of others.’77 A fundamental shift
in perspective is needed, one that changes the way in which
certain essential concepts are viewed: for example, the
meaning of true happiness and prosperity, the true purpose of
life, and the place that material pursuits should assume in
one’s individual and family life. Bahá’í view is that the
family unit offers an ideal setting where those moral qualities
that contribute to a proper view of material wealth and its
utilisation can be shaped.78 In this light, children should be
raised in a culture of praising and practising moderation so
that it becomes a part of their belief system. This would then
turn into a cultural phenomenon, which in the long run would
become natural and easy to employ.

Prosperity is a relative concept and has a cultural element. It
may be argued that the first thing that comes to mind is
having an adequate amount of income and wealth to become
prosperous. However, perception of wealth is relative. For
Arthur Dahl ‘there is an important cultural dimension to
prosperity and the kinds of consumption used to signal

Universal House of Justice. 2 April 2010.
See: the statement of the Universal House of Justice dated 2 April 2010.
Economics and the Bahá’í Faith

prosperity.’ 79 He points out that for some with a lower
income, food would be a preferred medium of expression; for
others with a higher income, an automobile; and for some
rural villagers, a school, a clinic or a church. Hence,
prosperity can be expressed through personal consumption or
at a community level through the provision of joint services.
Either option can increase prosperity and happiness.

5.7 Specific teachings on sustainable consumption
All Faiths including the Bahá’í Faith have laws on the
consumption of goods and services. There are a number of
guiding principles available in the Bahá’í Writings for
managing a sustainable consumption; these are discussed in
the following section:

5.7.1 Bahá’í law of Fasting
Fasting is a teaching given by all major religions. Along with
obligatory prayer, fasting is one of the greatest obligations of
a Bahá’í. The Bahá’í fasting is the complete abstinence from
both food and drink from sunrise to sunset during the Bahá'í
month of ‘Loftiness’ for the period of 2-20 of March
inclusive.

Fasting is symbolic. The basis for fasting is to obey the law
and to remember the conditions of those who are suffering, as
well as abstention from one’s worldly desires. Shoghi Effendi
describes a number of features of Bahá’í fasting: ‘It is
essentially a period of meditation and prayer, of spiritual
recuperation.’ 80; this is a period that a Bahá’í ‘must strive to
make the necessary readjustments in his inner life.’81 Thus, its
significance and purpose are fundamentally spiritual in

Arthur Dahl. ‘Sustainable Consumption and True Prosperity’.
Shoghi Effendi. Directives, p. 28.
Ibid.
Sustainable Consumption

character. ‘Fasting is symbolic, and a reminder of abstinence
from selfish and carnal desires.’ 82 Through fasting, as a
symbolic phenomenon, people learn to develop powers of
self-control and self-restraint and resist any wrongdoing to
bring about self-improvement. The deprivation brought about
by fasting makes one sympathise with the suffering of others.
It also makes people remember the blessings of life that they
normally take for granted. Hence, the fast is not merely
related to the body, but the spirit as well. According to John
Esslemont the reality of the Bahá’í fast is not in abstaining
from consumption of food ‘but in the abstention from the
desires and lusts of the flesh, and in severance from all save
God.’83

The economic significance of fasting is that it helps Bahá’ís
reflect on their own consumption and the problems associated
with over-consumption; practising moderation and perhaps
being content with little. Also, it can help improve self-care
and preservation of health. The Bahá’í teaching on fasting
therefore helps believers to reflect and change their attitude
towards their lifestyle and allows individuals to take an
objective view of their habits and become aware of the needs
of others. Charity and generosity are especially urged during
the period of fasting.

5.7.2 Bahá’í perspective on food and agriculture
The Bahá’í Writings consider agriculture as a ‘vital and
important matter.’84 The commitment of the central figures of
the Bahá’í Faith to agriculture is evident from their ‘own
agricultural endeavours and extensive discourse on the

Ibid.
John Esslemont. Bahá’u’lláh and the New Era, p. 184.
Bahá’u’lláh. Tablets, p. 90.
Economics and the Bahá’í Faith

topic.’85 In one of His Writings Bahá’u’lláh has paid ‘special
regard’ 86 to the matter of agriculture, acknowledging that
agriculture ‘unquestionably precedeth’ 87 in importance to
some other Bahá’í principles, referring to ‘peace’, ‘one
common language’, ‘unity’, and ‘education’. 88 Similar
statements about the importance of agriculture are seen in the
Writings of ‘Abdu’l-Bahá. For example, He refers to
agriculture as ‘the fundamental basis of the community,’ 89
and a noble science,’ 90 the practice of which is an ‘act of
worship,’ 91 and he encourages Bahá’ís to engage in
‘agricultural sciences.’ 92 He indicates that should an
individual ‘become proficient in this field, he will become a
means of providing for the comfort of untold numbers of
people.’93

Paul Hanley raises some legitimate questions: ‘Why this
‘special regard’ for agriculture? Why should it take
precedence over other principles such as the promotion of
international peace or education?’94 One comment by Hanley
is that ‘food is the prerequisite of human development.’ 95
Without adequate food, nothing can be accomplished. Food is
a requirement for human intellectual and physical
development. It would be difficult to accomplish peace and
security or even fellowship while masses of people starve.
Paul Hanley. The Spirit of Agriculture, Oxford, George Ronald Publisher, 2005,
p. vii.
Bahá’u’lláh states: ‘Special regards must be paid to agriculture.’ Tablets, p. 90.
Bahá’u’lláh. Tablets, p. 90.
For the full Tablet of Bahá’u’lláh, see: Tablets, p. 89.
‘Abdu’l-Bahá. Quoted in Conservation of the Earth’s Resources, Compiled by
the Research Department of the Universal House of Justic, Haifa: Bahá’í World
Centre Publications, 1990, p. 12.
Ibid.
Ibid. Selections, p. 145.
Ibid. Promulgation, p. 283.
Ibid. Conservation, p. 12.
Paul Hanley. The Spirit of Agriculture, p. vii.
Ibid.
Sustainable Consumption

Education is hardly possible when children are malnourished,
and economic stability will not be attained if there is the
frustration of hunger among multitudes of people. In all these
circumstances lack of food is a major factor; hence, it must
be provided.

The products of the land, however, has evolved from one
stage to another, and from one place to another, depending on
the demand for the product, the type of knowledge and
technology used, the increase in population, and the
ecosystem. Hence, it will be difficult to see any resemblance
between agriculture in the time of Bahá’u’lláh in the 19th
century and that of today and that in the future. However,
from a Bahá’í perspective, whatever the changes, agriculture
will remain as the basis of human society and of the whole
economy.

When considering agriculture, there are still challenges that
need to be faced and tackled. One such challenge is in
countries with small pieces of land, such as Swaziland; others
with heavy floods and an increasing population like
Bangladesh; and some with poor quality of land or scarce
resources such as Ethiopia and Sudan. Responding to these
challenges, the Bahá’í Writings advocate a multi-dimensional
approach. ‘Abdu’l-Bahá suggests using a combination of
agriculture and other sciences such as manufacturing and
technology, and the Universal House of Justice recommends
to ‘promote the standard of agriculture and other skills in the
life of the people.’ 96 The success of the role of modern
technology and advanced transportation systems cannot be
disregarded when discussing agriculture and food production
and distribution.

Universal House of Justice. Letter dated 27 July 1976.
Economics and the Bahá’í Faith

While there is great success in the modernisation of
agriculture and food production in recent times, there are also
tragic failures and challenges. Paul Hanley believes that the
world’s food and agriculture system is the greatest
achievement of civilisation. Stanley Wood writes ‘Today,
agriculture provides more than 94% of the protein and 99%
of the calories for 6 billion people.’ 97 Most of the human
population explosion has occurred in the past one hundred
years. Population has almost quadrupled since 1900, when
there were 1.6 billion people. Since 1960 it has [more than]
doubled, from 3 billion to 7 billion. Yet agriculture has more
than kept pace. On average, food supplies are 24% higher per
person today than in 1961 and real prices are 40% lower.
Despite this success, extreme food deprivation is widespread.
According to the Food and Agricultural Organization of the
United Nations ‘Extreme food deprivation and plentiful food
supplies in the world with excellent means of
communications and transport, can only suggest that there are
fundamental flaws in the way in which nations are
functioning and the relationship between them are governed
and managed.’ 98 A related challenge is food inflation, which
is a significant negative feature of today’s economic
environment. Food inflation has a great impact on quality of
life, as people struggle to maintain nutritional standards that
they had previously achieved, or give up some other forms of
consumption so as to keep themselves well-fed.

Food plays a vital role not only in physical and intellectual
development, but also in maintaining good health. ‘Abdu’l-

Stanley Wood. Quoted in Hanley, The Spirit of Agriculture, p. ix.
Food and Agricultural Organization of the United Nations, ‘Fostering the
Political Will to Fight Hunger’, Committee on World Food Security, Twenty-
Seventh Session, Rome, 28 May -1 June 2001.
Sustainable Consumption

Bahá explains the reason for having good health, He said:
Looking after one’s health is done with two
intentions. Man may take good care of his body for
the purpose of satisfying his personal wishes. Or, he
may look after his health with the good intention of
serving humanity and of living long enough to
perform his duty toward mankind. The latter is most
commendable.99

However, dietary codes are not prominent in the Bahá’í
sacred Writings. Bahá’u’lláh recommends: ‘Eat ye, O people,
of the good things which God hath allowed you, and deprive
not yourselves from His wondrous bounties.’ 100 In this
passage Bahá’u’lláh not only encourages people to eat ‘good
things’, he also reminds them that these are bounties from
God and one need not deprive oneself of them. Rather than
setting out detailed rules, the Bahá’í Writings have provided
guidance and stress the responsibility of individuals to live a
virtuous life. Emphasising on the principle of the harmony of
science and religion, we may consider a kind of food that
invokes the virtues of naturalness, simplicity, moderation,
compassion and justice. Attention should be paid to
moderation in order to help maintain a relatively healthy
physical and mental state. Bahá’u’lláh affirms:
In all circumstances, they should conduct themselves
with moderation; if the meal be only one course this is
more pleasing in the sight of God; however, according
to their means, they should seek to have this single
dish be of good quality.101

Of course, the concept of a one-course meal and a ‘single
dish’ may have different interpretations depending on the
country, culture or particular circumstance or occasion. What

‘Abdu’l-Bahá. Star of the West, Vol. VIII, No. 18, p. 230.
Bahá’u’lláh. Gleanings, p. 275.
Bahá’u’lláh. Quoted in Lights of Guidance, p. 294.
Economics and the Bahá’í Faith

is important is the consideration of moderation. Such an
attitude towards food can have great economic implications.

Another significant economic implication related to food is
the guidance of Bahá’u’lláh ‘…do not eat except when you
are hungry.’102 This not only can have a significant impact on
one’s physical well-being but also prevents obesity and the
different illnesses and disorders which may result from it,
such as hypertension, coronary heart disease, high cholesterol
and diabetes. Therefore, the two principles in relation to food
and physical well-being are (a) moderation, which signifies
the amount of food one eats, and (b) the timing of having
food, which is to eat when one is hungry. The practice of
these principles will also lead to a reduction of wasted
resources.

Having discussed the amount and timing of eating, the
sustainability of the production process also plays an
important role in economic well-being. However, it may be
difficult to argue that consumers have an ethical
responsibility to purchase sustainable products, for example
when the cost difference between organic and non-organic
food is substantial. Many consumers are simply unable to
afford the high prices of organically farmed products. In
practice, farmers will make decisions based upon the
potential costs and benefits, while being mindful that
consumers are now well informed and mostly capable of right
purchase. Increasing pressure from the media, the
government, the public and pressure groups, is resulting in
changes in farming practices that may eventually ensure that
all products are environmentally sustainable. It is worth
mentioning that although in the Bahá’í Faith eating meat is
Bahá’u’lláh. Quoted in Star of the West, vol. 13, no. 9, December 1922, p. 252.
Tablet to Physician (Lawh-i-Tibb)
Sustainable Consumption

not prohibited, and there are no directives to Bahá’ís to
become vegetarian, Bahá’ís are advised that the natural
human diet consists of grains, fruits and vegetables. 103
‘Abdu’l-Bahá confirms: ‘the time will come when meat will
no longer be eaten…the people will gradually develop up to
the condition of this natural food.’ 104 Elsewhere, ‘Abdu’l-
Bahá explains the eating of meat will gradually ceased. He
said:
As humanity progresses, meat will be used less and
less, for the teeth of man are not carnivorous. For
example, the lion is endowed with carnivorous teeth,
which are intended for meat, and if meat be not found,
the lion starves. The lion cannot graze; its teeth are of
different shape. The digestive system of the lion is
such that it cannot receive nourishment save through
meat. The eagle has a crooked beak, the lower part
shorter than the upper. It cannot pick up grain; it
cannot graze; therefore, it is compelled to partake of
meat. The domestic animals have herbivorous teeth
formed to cut grass, which is their fodder. The human
teeth, the molars, are formed to grind grain. The front
teeth, the incisors, are for fruits, etc. It is, therefore,
quite apparent according to the implements for eating
that man's food is intended to be grain and not meat.
When mankind is more fully developed, the eating of
meat will gradually cease.105

The intention here is not to argue directly either for or against
eating meat or being vegetarian, rather, it is to examine the
Bahá’í view about food and the associated moral
consideration. However, there is no doubt that when less
meat is produced and used, it will have an impact on the
environment as well as our physical health.

‘Abdu’l-Bahá. Quoted in Lights of Guidance, no. 1006 and 1007.
Ibid. Quoted in Bahá’u’lláh and the New Era, p. 102.
‘Abdu’l-Bahá. Promulgation, p. 170.
Economics and the Bahá’í Faith

Bahá’í scholars studied the subject of food and agriculture
from different perspectives. The concern of Arthur Dahl is
on the preservation of the eco-system. He provides an
optimistic view that humanity is mature enough to take
responsibility for protecting the planet. He believes that
agriculture fits well with the importance of renewable
resources for any kind of sustainable civilisation. In regard
to agriculture in the future he writes:
However, there is nothing to suggest that agriculture
in the future will resemble that practised today. The
emphasis in both the Bahá’í Writings and the science
of ecology on the importance of diversity suggests
that new approaches to agriculture may involve
diverse species maintained in harmony. We may
evolve complex and efficient ecosystems with local
communities as an integral part of human
development.106

This is an optimistic view by Dahl and it is in line with
Bahá’í thinking of engaging local communities.

Bahá’í scholar and development expert Farzam Arbab
studied the role of agriculture in poverty alleviation. Since
the majority of poor people in the world live in rural areas,
an analysis of reducing the poverty of villagers and helping
them to grow agricultural products and having a welfare
program at the village level is most appropriate. To achieve
these, Arbab suggests a ‘new village economy’. Outlining
his thoughts, he writes:
The best option for the villagers is indeed to
understand the strengths and weaknesses of their
own past and present economic system and then
move forward and build on their own strengths.

Arthur Dahl. ‘Living within Environmental Limits: Implications of Bahá’í
Principles for Sustainable Development’, 3rd conference of the International
Environment Forum Sidcot, UK, 15-18 August 1999.
Sustainable Consumption

In doing so, they would incorporate into their
schemes certain structures such as the village
store with its unique functions in the abolition of
extremes of wealth and poverty, as described in
the Writings of the Bahá'í Faith.107

The concept of a village economy may seem idealistic and
too simple to apply to the complex issues of a global society.
The problem is that the largest proportion of people are
currently living and predicted to be living in urban areas.
Nevertheless, the new village economy can work along with
a number of interrelated principles such as: providing
education; creating equal opportunity for both women and
men; just and effective wealth distribution of the earth’s
resources; and willingness to adopt a more moderate lifestyle.
The Bahá’í Writings advocate structures such as a village
store 108 for the economy of a village. However, the global
economy is much more complex than a village economy.
Recognising this point, Arbab further clarifies that the new
village economy should be seen in the light of its contribution
to a world economy.109 There is still a need for further study
in identifying different elements of a new village economy as
suggested by Arbab. The view presented here is that in any
alternative model of economics for the future, agriculture
should play a major role, which has been ignored mostly by
the current dominant economic systems such as the
‘command economy’110 and the ‘free-market economy.’111

Farzam Arbab. Bahá’í Studies Review, 1987, pp. 9-20, at p. 19.
‘Abdu’l-Bahá in his Writings refers to seven sources of revenue and seven
sources of expenditures, see: ‘Abdu’l-Bahá, Bahá’í World, vol. iv, pp. 450-451.
Farzam Arbab. Bahá’í Studies Review, 1987, p. 19.
A ‘command economy’ or planned economy is one that all economic decisions
are taken by the government. See: John Sloman, Economics, 6th ed., p. 16.
A ‘free-market economy’ is an economy where all economic decisions are
taken by individual households and firms and with no government intervention.
See: John Sloman, p. 16.
Economics and the Bahá’í Faith

5.8 Further analysis of sustainable consumption
Consumer sovereignty in a free-market economy suggests
that under perfect competition, consumers drive the market;
they express their needs and desires as a demand, to which
firms subsequently respond to by supplying them with the
goods and services that they require. This gives rise to the
idea that consumers are sovereign in the market. Traditionally
customers were responsible for their own purchasing with
little influence from advertisements. However, today,
producers may target vulnerable consumers, who may not
have sufficient information and knowledge of commodities.
Also, if the customer were really the king, businesses would
be developing, reinventing, and restructuring around the
customer. However, this is not happening. The fact that there
are ‘consumer protection laws’ indicates that consumer
sovereignty has limitation and they may not necessarily be
treated any more as sovereign.

Therefore, consumer sovereignty needs to be re-examined in
connection with the application of commodities. Economic
thinking has conventionally distinguished between public and
private goods. However, the new concept of merit goods has
been introduced to the economic discipline. The term ‘merit
goods’ implies that the social benefits of consuming a
product or a service are more than the private benefits.
Economics has generally challenged this new concept
because it interferes with consumer preference. The
economic assumption of consumer sovereignty states that
consumers have the autonomy and power to make choices. In
the absence of consumer education, both moral and
intellectual, consumer sovereignty may lead to the
consumption of demerit goods and services. However, a
study of the Writings of Bahá’í and non-Bahá’í authors
indicates that the application of the concept of merit goods,
Sustainable Consumption

with positive externality in the economy, is unavoidable.

Economist James Buchanan, known for his ‘Public Choice
Theory’, in his paper entitled ‘Fairness, Hope, and Justice’
argues that economic justice is derived from a sense of
fairness. To influence this fairness, he focuses on the
distribution of rights and claims112 prior to the market process
itself, rather than on some final distribution of the product.113
Buchanan is aware of consumers being handicapped due to
their vulnerability and self-interest. Thus, he proposes
intervention by government prior to the market process. For
example, he advocates the use of taxation for public
financing of compulsory education.114 This view supports the
Bahá’í notion of universal and compulsory education.

Examples of merit goods are not limited to only economic
issues. Moral philosopher Annette Baier argues the
weaknesses of a system of ethics based on the principle of
justice.115 The answer, according to Baier, is the use of the
principle of ‘care’ as an alternative for justice. For example,
she argues that women are more likely to have feelings of
care, while men generally claim to take the justice
standpoint.116 According to her, there is a need to ensure that
education will prepare a person to be capable of conforming
to ethics of care and responsibility. 117 While Baier’s
reasoning is not directly economic, she is suggesting a
normative framework of care that essentially influences the

James Buchanan. New Directions in Economic Justice, Roger Skurski (ed.),
Indiana: University of Notre Dame Press, 1983, pp. 53-89, at p. 53.
Ibid.
Ibid. pp. 63-64.
Annette Baier. ‘The Need for More than Justice,’ Moral Prejudices: Essays on
Ethics, Cambridge: Harvard University Press, 1994, pp. 19-32, at p. 19.
Ibid. pp. 20-23.
Annette Baier. ‘The Need for More than Justice,’ Moral Prejudices: Essays on
Ethics, p. 29.
Economics and the Bahá’í Faith

individual’s preferences. Therefore, according to Baier,
morality must be for all people regardless of choice.118 Hence,
the issue of care as a merit good must become a part of the
market economy. The principle of ‘care’ has been discussed
in the Bahá’í Writings as well and constitutes an important
component for the application of the principle of ‘world
citizenship’. According to ‘Abdu’l-Bahá:
If man were to care for himself only, he would be
nothing but an animal for only the animals are thus
egoistic…Nay, rather, man should be willing to accept
hardships for himself in order that others may enjoy
wealth; he should enjoy trouble for himself that others
may enjoy happiness and well-being.119

Another argument for merit goods stated by the
contemporary economist and philosopher Amartya Sen is
empowering women and their role in advancing the economy.
Sen describes the underdeveloped situation of women in
South Asia, West Asia, and China as unacceptable.120 Sen’s
explanation is that women are viewed as inferior due to their
lack of productivity, useful employment or lack of
education. 121 The remedy he suggests is to endorse state
funding of public education and public policy that can work
to improve the status of women in the economy.122 Sen does
not want to leave this situation to market mechanisms
because the market may fail to rectify effectively. Therefore,
he prescribes the interference of government to support the
right of education for women. For Sen, therefore, education
and particularly the education of women, is considered as a
merit good with positive externalities, which at first does not

Ibid. p. 31.
‘Abdu’l-Bahá. Quoted in Star of the West, vol. viii, no. 1, p. 231.
Amartya Sen. ‘One Hundred Million Women Are Missing,’ New York Review
of Books, 20 December 1990, p. 60-66, at p. 61.
Ibid. p. 64.
Ibid. p. 66.
Sustainable Consumption

appear to have anything to do with economics, but on further
review, one notes that it has an indirect but significant role in
economic development. The Bahá’í scriptures suggest that
the inferior condition of women is because of the lack of
opportunity for women to acquire education and other
necessary qualifications. ‘Abdu’l-Bahá states:
Until the reality of equality between man and woman
is fully established and attained, the highest social
development of mankind is not possible. Even granted
that woman is inferior to man in some degree of
capacity or accomplishment, this or any other
distinction would continue to be productive of discord
and trouble. The only remedy is education,
opportunity; for equality means equal
qualification…And let it be known once more that
until woman and man recognize and realize equality,
social and political progress here or anywhere will not
be possible.123

In this passage, equal opportunity and women empowerment
is considered by ‘Abdu’l-Bahá as a merit phenomenon with
positive externality. Economist, Joseph Stiglitz, also
supported merit goods. He demonstrates the failure of market
reforms in Russia. He argues that the transition to a market
economy lacked the institutional and legal infrastructure that
it needed to take firm root in Russian society. 124 This
argument is important because it shows a clear departure
from classical economics. According to Adam Smith, the
market automatically reaches equilibrium and there is no
need of government intervention. However, Stiglitz
challenges this view and by referring to the failure of market
reform in Russia argues that there is a need for government
intervention and support from its financial, social, and

‘Abdu’l-Bahá. Promulgation, pp. 76-77.
Joseph Stiglitz. ‘Whither Reform? Ten Years of the Transition,’ World Bank
Annual Conference on Development Economics. Washington, DC. 28-30 April
1999, p. 5.
Economics and the Bahá’í Faith

organizational institutions. In other words, the free-market
system cannot function alone on the basis of self-interest.
Therefore, to complement market mechanisms it must be
regulated. Hence, according to Stiglitz the provision of the
institutional framework for a market economy is considered
as merit goods.

5.9 Chapter conclusion
This chapter has attempted to do a survey of Bahá’í Writings
in understanding the notion of sustainable consumption. The
issue was presented that to achieve sustainable consumption,
it is not enough to develop values, they must also be
implemented. This requires effective action by individuals,
families, organizations, and the government. This is
necessary because the market alone fails to achieve and
maintain sustainable consumption. The agents in a free-
market economy have the goal of maximising profit, and
consumers are looking at their own self-interest. In such an
environment, there will be under-consumption of merit goods
and over-consumption of demerit goods, leading to
misallocation of resources. In self-interest, a choice has to be
made that would be the best one available for the person. A
Bahá’í view would be to make choices that promote social
interest rather than self-interest, choices that lead to an
outcome that is the best for the wider society. In this case
making choices leads to an effective and efficient use of
resources, and distributes goods and services fairly,
equitably, sensibly, and in a sustainable way among members
of society. It is therefore argued that consumer education will
greatly help consumers to make right choices. To achieve
sustainable consumption there is a need to influence supply
and demand. Consumer education on one hand, and acquiring
and applying value principles on the other, will enable a
successful process. Hence, willingness to change life style,
Sustainable Consumption

and to control and modify excessive consumption is
recommended. I have upheld the view that the Bahá’í
principle of moderation maintains a balance in the material
and spiritual life of individuals and is a solution to the
societal problem of poverty. Furthermore, I considered
consumer education as an important factor influencing firms
to produce goods and services that are sustainable and in
accordance with human dignity. On the practical side, the
Bahá’í community can have an impact on consumption, not
only at individual and community level but also indirectly
towards the wider society. For example, it was argued that
achieving sustainability depends largely on consumer
education and in particular moral education. Consumer
education enriches sustainable living. Bahá’í parents are
urged to instil moral values in children and prepare them for
attaining a sustainable life style by knowing the purpose of
life.

With this chapter, the microeconomic aspect of the study and
analysis of Bahá’í teachings on economics is concluded. In
the next chapter, the macroeconomic part of Bahá’í teachings
will be discussed under the main heading of ‘globalization
from a Bahá’í perspective.’

Economics and the Bahá’í Faith

Chapter 6: The Bahá’í view on Globalization

The earth is but one country, and mankind its
citizens.1 Bahá’u’lláh

6.1 Introduction
We are living in an extraordinary time. Change is taking
place all the time. Internet has revolutionised our lives and
globalization is a part of this change and it is real and is
taking place. It is taking place, because we have the tools to
achieve it. Information technology, cheap and advanced
transport, effective communication, global financial
interdependency, trade liberalization, the role of
multinational corporations and emerging economies, all have
channelled the process of globalization.

With the previous three chapters focusing mainly on the
Bahá’í perspective on microeconomic discussion, this chapter
is aimed at the Bahá’í view on macroeconomic teachings,
primarily on globalization and development. In this chapter,
an interpretation of the concept of ‘meaningful and
enlightened globalization’ will be provided. The study of
primary Bahá’í Writings indicates a positive outlook towards
a meaningful globalization. The aim is to explore the concept
of globalization from a Bahá’í perspective as well as from a
contemporary economic view. It will be argued that
government policies alone are not sufficient, that there is a
need for emerging values to shape and reform the process of
current globalization. The view that the current process of
globalization has generated unbalanced outcomes, both

Bahá’u’lláh. Gleanings, p. 250.
The Bahá’í Perspective on Globalization

between and within countries, will be explored. It will be
argued that problems associated with the current form of
globalization are due to the negative methods and processes
adopted. It will be stated that there are challenges and
inconsistencies in human affairs in the current process of
globalization, and hence, how does the Bahá’í view on
globalization differ from the one currently emerging?

The subject of globalization has expanded considerably in
20th century and it now covers a wide range of topics. The
process of the globalization of the Bahá’í community started
at its inception, and with the Writings of the founder of this
Faith, Bahá’u’lláh. The phrases closely associated with the
concept of globalization, which signify a holistic view of
humanity and organization of human society, have been used
repeatedly in the primary Bahá’í scriptures. Examples
include: ‘world order’, ‘human race’, ‘civilisation’,
interdependency, and ‘universal’. However, with
contemporary manifestations of globalization, it seems that
the modern forms and expressions of globalization can at
times be less concerned with the holistic views expressed in
the Bahá’í Writings. In the historical context, Bahá’í scholar
Stephen Lambden argues that ‘A substantial part of this
global thinking is represented by major world religions,
which have been theologically globally-minded through most
of their existence.’2 Hence, according to this view the vision
of all religions are global, although the social laws are limited
to a specific time and area. The prophets of God worked as a
team to bring the vision of global unity into a reality, started
from tribal unity to town and city and nation and now to
uniting humanity.

Stephen Lambden. ‘The Messianic Roots of Bábi-Bahá’í Globalim’, Bahá’í and
Globalization, Handbook, ed. Margit Warburg, Annika Huithamar and Morten
Warmind, Aarhus: Aarhus University Press, 2005, pp. 17-34, p. 17.
Economics and the Bahá’í Faith

6.2 Unity, a prerequisite for understanding Bahá’í
globalization
For Bahá’ís, an enlightened globalization involves a firm
belief in the principle of unity of humankind. Unity of
humankind is, therefore, a key characteristic of this Faith.
Bahá’u’lláh proclaims ‘The tabernacle of unity hath been
raised; regard ye not one another as strangers.’3 Studying the
Bahá’í Writings it becomes clear that the principle of oneness
encompasses much more than brotherly love and tolerance.
Shoghi Effendi clarifies that the oneness of humanity:
calls for no less than the reconstruction and the
demilitarization of the whole civilized world, a world
organically unified in all the essential aspects of its
life, its political machinery, its spiritual aspiration, its
trade and finance, its script and language, and yet
infinite in the diversity of the national characteristics
of its federated units.4

A number of statements clearly emphasise the meaning and
significance of globalization in relation to unity of
humankind, including phrases such as ‘the well-being of
mankind’ 5 , ‘betterment of the world’ 6 , ‘Let your vision be
world-embracing’7, and ‘The interdependence of the peoples
and nations of the earth.’ 8 Similarly, Bahá’u’lláh uses
metaphorical expressions such as ‘the entire human race as
one soul and one body’ 9 , and ‘ye are the flowers of one
garden.’10 He also refers to the calamitous condition of the
world, stating, ‘The world is encompassed with misery and

Bahá’u’lláh. Gleanings, p. 218.
Shoghi Effendi. World Order, pp. 42-43.
Bahá’u’lláh. Gleanings, p. 286.
Ibid. Trustworthiness, p. 5.
Ibid. Gleanings, p. 94.
Shoghi Effendi. The Promised, p. 122.
Bahá’u’lláh. Gleanings, p. 214.
Ibid. Bahá’u’lláh and the New Era, p. 209.
The Bahá’í Perspective on Globalization

distress,’11 and ‘The world is in great turmoil.’12

A significant subject pertinent to globalization that has been
discussed by ‘Abdu’l-Bahá is the interdependence of people
and nations. Frequently he emphasises that ‘all the members
of the human family, whether peoples or governments, cities
or villages, have become increasingly interdependent.’13 And
in a stronger statement he continued, ‘For none is self-
sufficiency any longer possible, inasmuch as political ties
unite all peoples and nations, and the bonds of trade and
industry, of agriculture and education, are being strengthened
every day.’ 14 In light of above discussion, the following
definition given by Bahá’í scholar Suheil Bushrui conveys an
appropriate description of understanding the concept of
globalization from a Bahá’í perspective:
Globalization is a vision of world unity in so deep and
broad a sense as to embrace every aspect of human
life. Such a vision of planetary unity and integration,
however, bears no relation to the often bland, faceless,
and amoral global marketplace that we see operating
today. Instead, it recognises and celebrates the rich
diversity of creeds and cultures while at the same time
affirming the fundamental oneness of the human race.
The Bahá'í approach to globalization can be summed
up as a commitment to the concept of ‘unity in
diversity’ and what this practically entails in the life
of the individual and society alike.15

This definition refers to the fundamental Bahá’í principle of
‘world unity’, and ‘unity in diversity’ as practical approaches
to globalization.

Ibid. Tablets, p. 163.
Ibid. Gleanings, p. 97.
‘Abdu’l-Bahá. Selections, pp. 31-32.
Ibid. p. 32.
Suheil Bushrui. ‘Bahá’í Perspective on Globalization’, retrieved at:
<http://www.onecountry.org/e151/e15102as_Perspective_.htm>.
Economics and the Bahá’í Faith

According to historian Joseph Kitagawa (1990) in the Quest
for Human Unity, ideas of the oneness of a globally united
humanity have a rich and varied history, reaching back to
antiquity.16 The scriptures of major religions such as Judaism,
Christianity, and Islam have a vision of unity, which will be
achieved through stages of unity of tribes, of cities, of
nations, and the final stage of uniting the entire humanity.

The analogy of family described in chapter one has much
wider implication in the creation of unity within humankind.
Such an enormous undertaking requires unity within the
family, as well as within the world’s societies, through
spiritual and material means. It compels individuals and
nations to work together in harmony in order to establish this
unity. Today the effects of the gradual application of the
spirit of unity, such as the rejection of racial prejudices, the
greater awareness of the need to protect the environment, the
acceptance of gender equality in many societies, and the
greater awareness of human rights, are apparent in the wider
society. Application of these would gradually lead to the
oneness of humanity.

The goal of unity is possible because humanity has access to
the means necessary to attain it. For example, the
revolutionary and world-embracing means of
communication, transportation, information technology and
global financial interdependency are available as methods of
unifying nations. ‘Abdu’l-Bahá explains that in the past, ‘The
unity of mankind could not have been achieved,’17 because
the means of coming into contact that are currently available,

Joseph Kitagawa. Quoted in Stephen Lambden, Bahá’í and Globalization, ed.,
p. 17.
‘Abdu’l-Bahá. Selections, p. 31.
The Bahá’í Perspective on Globalization

were not within reach during the past dispensation, thus,
‘association and interchange of thought were well-nigh
impossible.’ 18 It is therefore clear that the features of
meaningful globalization, which are oneness of humanity,
interdependency, and interchange of thoughts, could be
facilitated through the use of advanced information and
technology. On the other hand, it is important to note that in
some cases the very means of uniting humanity can act as a
dis-unifying force: for example, information technology may
also promote a faster spread of hate and fear.

The question arises here that in what way are unity,
economics, and globalization linked? Shoghi Effendi stated
that ‘the oneness and wholeness of the entire human race...
eliminates extremes of poverty and wealth.’19 The argument
is that when united, the individual and the society become
more thoughtful and compassionate towards each other and
share economic resources more generously. The ‘Bahá’í
International Fund’ and many other charitable organizations
are a practical demonstration of this. The contributions to the
Bahá’í International Fund are spent for development projects
around the world, wherever needed. Such altruistic actions
become meaningful when people have a sense of connection
to each other, partly due to their beliefs and partly due to
human nature, which has an innate capacity to be kind. Thus,
a culture of ‘service’ and ‘voluntary charitable work’ is
established in the Bahá’í community to facilitate the process
of removing poverty.

One may argue that unity is only possible within the Bahá’í
community because all its adherents believe in the same

Ibid.
Shoghi Effendi. The Promised, p. v.
Economics and the Bahá’í Faith

principles and values. An outsider may wonder whether the
principle of unity is actualised globally. The Bahá’í teachings
assert global unity and not only that of the Bahá’í
community. This unity, however, starts from within the
Bahá’í community. The Universal House of Justice, in its
Promise of World Peace published in 1985, encourages the
people of the world to examine the Bahá’í communities
around the world as an example of what a united world would
look like in the future. 20 It is of course naive to think that
unity, whether within the Bahá’í community or in the wider
society, will be established without any difficulties or
complications. Indeed, the teachings of Bahá’u’lláh provide
the outline and the driving force for unity, but painstaking
efforts are needed at both individual and community levels to
achieve it. The Bahá’í institutions at the local, national and
international levels help establish and preserve the unity
within the Bahá’í community, and work with individuals,
organizations and governments, as appropriate, to promote
this unity outside of the Bahá’í community as well. These are
achieved through various community and core activities such
as observing Bahá’í Holy Days, children’s classes, youth
activities, encouraging women’s participation in social
activities, and summer and winter schools. As a community-
building exercise the general public is actively invited to
participate in these activities and to work together with the
Bahá’ís to bring about unity. A sense of belonging to the
community generates a willingness in people to accept
responsibility to help each other and to commit to the
development of the whole community. These collective
actions can help diminish economic difficulties within and

See: The Promise of World Peace, part IV, it states: ‘If the Bahá’í experience
can contribute in whatever measure to reinforcing hope in the unity of the human
race, we are happy to offer it as a model for study.’

The Bahá’í Perspective on Globalization

outside the Bahá’í community.

On the practical level, Bahá’ís associate with people of all
backgrounds in their effort to follow Bahá’u’lláh’s
exhortations, striving to create a globalization that is based on
unity and love of humanity rather than factors such as
economic and political gain. Elabourating on this, William
Hatcher and Douglas Martin write:
We will arrive at unity, but rather by an increased
awareness of and respect for the intrinsic value of
each separate culture, and indeed, of each individual.
It is not diversity itself, which is deemed the cause of
conflict, but rather our immature attitude towards it,
our intolerance and prejudice.21

The concept of ‘unity in diversity’ is the practical
demonstration of unity that will protect Bahá’í globalization
from uniformity. To attain this, consideration is given by the
Bahá’í community to teaching the concept of world
citizenship as part of the education of every child.

Fundamental to the understanding of world unity as an
essential characteristic of Bahá’í globalization, is the
statement of ‘It is not his to boast who loveth his country, but
it is his who loveth the world.’22 It may be argued that this
statement is contrary to one’s loyalty to one’s country. This
would be true if the ability to love was limited or love of
one’s country would exclude love of the world. This indeed is
not accurate, as one’s ability to love is extremely vast and can
extend far beyond one’s love for one’s country; one does not
exclude the other. On the contrary, love and consideration
extended to the whole world will include love of one’s
country and promote greater satisfaction and happiness.

William Hatcher and Douglas Martin. The Bahá’í Faith, p. 78.
Bahá’u’lláh. Gleanings, p. 95.
Economics and the Bahá’í Faith

Bahá’u’lláh stated that ‘Love of one’s country is an element
of the Faith of God.’ Referring to this statement, Shoghi
Effendi said that ‘The love of one’s country…has not…
either condemned or disparaged.’ 23 Shoghi Effendi further
considers the love of one’s country as ‘lesser loyalty’24 and
love of humanity as ‘wider loyalty’25, and states that ‘a wider
loyalty, should not…conflict with lesser loyalties.’26 This is
an easy task when a belief culture is created, but there are
challenges when applying this teaching in countries where
there is rabid nationalism and at times hatred for people of
other nations. Ethnic cleansing which stems from only loving
one’s own country to the point of excluding all others is not
an unfamiliar issue in today’s society.

Commenting on one of the Writings of the founder of the
Bahá’í Faith, Moojan Momen writes:
Bahá’u’lláh had laid down the necessary groundwork
for the globalization of the Bahá’í community…
Bahá’u’lláh had emphasised in His Writings the
equality of all believers, of whatever level of
education or social rank. He had spoken of all as
being ‘created from the same dust’ so that ‘no one
should exalt himself over the other’ and hence that all
should ‘be even as one soul, to walk with the same
feet, eat with the same mouth and dwell in the same
land, that from your inmost being, by your deeds and
actions, the signs of oneness…may be made
manifest.’27

When one supports unity, then it is easy to realise that an
enlightened globalization involves a belief that the globalised
world is indeed the norm, and should be the reality of the

Shoghi Effendi. The Promised, p. 122.
Ibid.
Ibid.
Ibid.
Moojan Momen. Bahá’í and globalization, p. 81.
The Bahá’í Perspective on Globalization

human world. However, we live in a world where conflict is
considered a normal way of life. Contest, competition and
confrontation have become norms embedded in social,
political, and economic systems. The relationships between
people are based on fear, hate and self-interest. These are
severe barriers for establishing unity. There is a need to
acquire certain attitudes and behaviours that are necessary to
promote unity. Members of the Bahá’í community
individually and collectively explore the actions essential for
fostering unity in the community, which are service
orientated.

An ideal globalization for Jeffrey Sachs, the Director of the
Earth Institute and one who is an expert in sustainable
development is one that addresses the needs of the poorest of
the poor, the global environment, and the spread of
democracy. He further states: ‘It is the kind of globalization
championed by the enlightenment globalization democracies,
multilateralism, science and technology, and a global
economic system designed to meet human needs.’ 28 Sachs
called this kind of globalization as ‘an enlightened
globalization.’ 29
For Joseph Stiglitz, an effective
globalization requires ‘new social contracts,’30 which will be
considered when ‘The well-being of the developed and
developing countries are better balanced.’ 31 If we define
progressive civilisation as an advancing social development
and organization, then issues such as materialism, poverty,
destruction of ecosystem, lack of respect for human rights,
inequality, war and conflicts are contrary to human social
development, organization and civilisation. Consequently,

Jeffrey Sachs. The End of Poverty, London: Penguin Books, 2005, p. 358.
Ibid.
Joseph Stiglitz. Making Globalization Work, p. 285.
Ibid. p. 285.
Economics and the Bahá’í Faith

from a Bahá’í perspective, a meaningful globalization refers
to the elimination of those ‘social ills’ 32 and hindrances,
which ‘Abdu’l-Bahá suggested ‘the immediate remedy for all
the ills of social life.’33 Shoghi Effendi describes these social
ills as a world ‘spiritually destitute, morally bankrupt,
politically disrupted, socially convulsed, economically
paralysed’ 34 The Bahá’í International Community has
identified other social ills of our current society including
poverty, unemployment, social strife, over-consumption,
chauvinistic nationalism, war, and moral and spiritual
apathy. 35 Hence, although advancement in information
technology and communication has created immense benefits
for the humanity, the disadvantage of such advances is that
‘crisis quickly become global.’36 The current global financial
crisis from 2008 that started in United States spread to
Europe immediately, and to the rest of the world quickly after
that.

There are other factors that are important for reforming and
reshaping the current process of globalization. Speaking on
this, Stiglitz points out that reforming globalization is a
matter of politics. According to him there are a number of
issues that need to be considered, including the prospects for
unskilled workers and the impact of globalization on
inequality; the democratic deficit in global economic
institutions, which weakens democracy even within
developed countries; and the human tendency to think locally
while we live in an increasingly global economy.

Universal House of Justice, 2 April 2010.
‘Abdu’l-Bahá. Tablet to August Forel, p. 80.
Shoghi Effendi. The Promised, p. 16.
Bahá’í International Community. Statement on ‘Global Action Plan for Social
Development,’ New York: United Nations Office, 1994.
Joseph Stiglitz. Freefall: America, Free-markets, and the Sinking of the World
Economy, New York: W. W. Norton and Company, 2010, p. 21.
The Bahá’í Perspective on Globalization

6.3 Recognition and application of unity/oneness
Oneness is the main reason for the coming of Bahá’u’lláh. It
is such an important principle that we can call the Bahá’í
Faith a religion of oneness. The vision of oneness is the
central truth of all Faiths and it comes in stages of unity as a
goal. In every Revelation, according to ‘Abdu’l-Bahá, ‘the
light of Divine Guidance has been focused upon one central
theme...The consciousness of the Oneness of Mankind.’ This
oneness, He says, is ‘the pivot round which all the teachings
of Bahá’u’lláh revolve.’ Therefore, promoting it is ‘the object
of life for a Bahá’í.’ Shoghi Effendi states, ‘The principle of
the Oneness of Mankind…Its implications are deeper, its
claim greater than any which the Prophets of old were
allowed to advance.’37

Although the word oneness is used frequently in the Bahá’í
Writings, it is not easy to define it. According to Bahá’í
scholar Alimorad Davoudi 38 in order to define oneness we
need to consider several parts of it, and once we break it into
several parts, it is no more oneness. Therefore, the only
definition of oneness is that it is one. Davoudi clarifies that
although the word oneness cannot be defined, we can feel it,
or we can have a sense of oneness. As Bahá’ís we are used to
the concept of oneness, we are associated with the spirit of it
and we can sense it. The only way we can understand

Shoghi Effendi, World Order of Bahá’u’lláh, p. 42.
Dr Alimorad Davoudi is a prominent Bahá’í scholar. He obtained his Doctorate
in Philosophy and Education from Tehran University. He then took up a position
at the same university as a professor. He wrote and translated a large number of
valuable books and articles on philosophy. He was a member of the National
Spiritual Assembly of the Bahá’ís of Iran. On 11 November 1979, Dr Alimorad
Davoudi was abducted and disappeared.
<https://iranbahaipersecution.bic.org/archive/alimorad-davoudi-kidnapped-and-
disappeared-tehran-11th-november-1979>

Economics and the Bahá’í Faith

oneness in a practical sense is to look at its effects and
outcomes.

A contrast can be made between unity and oneness:
• Unity is the process. Oneness is the product
• Unity depends upon an event. Oneness transcends an
event and joins people together.
• In unity, people gather together for a common
interest. In oneness, people are integrated.
• Unity is how we should start. Oneness is how we
should finish.
• Unity is the catalyst that is the bridge to go into
oneness.
• Unity is built upon encouragement. Oneness is built
upon the purpose.
• Unity is the means to the end, but all events and
activities should have sufficient follow-up that gives
the opportunity for oneness to develop.

The application of the seven candles of unity stated by
‘Abdu’l-Bahá makes the oneness stronger and stronger.

The first candle is unity in the political realm, the
early glimmerings of which can now be discerned.
The second candle is unity of thought in world
undertakings, the consummation of which will ere
long be witnessed. The third candle is unity in
freedom which will surely come to pass. The fourth
candle is unity in religion which is the corner-stone of
the foundation itself, and which, by the power of God,
will be revealed in all its splendor. The fifth candle is
the unity of nations, a unity which in this century will
be securely established, causing all the peoples of the
world to regard themselves as citizens of one common
fatherland. The sixth candle is unity of races, making
of all that dwell on earth peoples and kindreds of one

The Bahá’í Perspective on Globalization

race. The seventh candle is unity of language, i.e., the
choice of a universal tongue in which all peoples will
be instructed and converse. Each and every one of
these will inevitably come to pass, inasmuch as the
power of the Kingdom of God will aid and assist in
their realization.39

There are several examples from the Bahá’í community as
catalysts for promoting and strengthening oneness including
Bahá’í Scriptures, the Bahá’í Faith is a religion without
priesthood, non-involvement in partisan politics, the
existence of covenant, Bahá’í marriage, Bahá’í House of
Worship, Nineteen Day Feast, the independent investigation
of truth, Bahá’í pioneers and traveller teachers are promoting
the principle of unity/oneness, the role of the Supreme
Institution of the Bahá’í Faith, the Universal House of
Justice.

The core principle of oneness can be challenged because
currently there are many obstacles to the transformation of
consciousness, such as doubts, misconceptions, prejudices,
suspicions and narrow self-interest. Such challenges require
the society to ‘change its attitudes before a solution to social
problems can be found.’40

Therefore, based on the practicality of the principle of
oneness, the challenge for the Bahá’í community is that
Bahá’ís live in a world where not everybody shares their
moral and spiritual principles. However, the embryonic
condition for relative hope and integration is created. Leaders
with global and optimistic views are becoming more popular.
Leaders with negative views and not respecting human rights
are becoming less popular. Nations are now realising that
‘Abdu’l-Bahá, quoted in the World Order, pp. 38-39.
Universal House of Justice. Statement dated 27 April 1988.
Economics and the Bahá’í Faith

interdependency is a reason for their future prosperity, such
as NAFTA (North American Free Trade Agreement),
CARICOM (Caribbean Community), and EU (European
Union). ‘Abdu’l-Bahá said: ‘For none is self-sufficiency any
longer possible.’ 41 Also, international organizations are
established, such as the Court of Hague, Crime Against
Humanity, World Bank, etc. These developments which
happened mainly in the 20th century indicates that nations
feel insecure and their own laws are not sufficient to establish
order and therefore trusting more powerful laws such as those
shaped by the regional and international institutions.

6.4 Good life and real happiness
In the general textbooks, happiness is defined as feeling
good, enjoying life and feeling it as wonderful. Unhappiness
is expressed as feeling bad and wishing things were different.
The Bahá’í Writings include teachings of right livelihood, the
path to true well-being, prosperity and happiness. In the
following passage from ‘Abdu’l-Bahá, He referred to
happiness as a sentiment or a feeling which is a state of mind:
In this world, we are influenced by two sentiments,
Joy and Pain.
Joy gives wings! In times of joy our strength is
more vital, our intellect keener, and our understanding
less clouded. We seem better able to cope with the
world and to find our sphere of usefulness. But when
sadness visits us we become weak, our strength leaves
us, our comprehension is dim and our intelligence
veiled. The actualities of life seem to elude our grasp,
the eyes of our spirits fail to discover the sacred
mysteries, and we become even as dead beings.
There is no human being untouched by these two
influences; but all the sorrow and the grief that exist
come from the world of matter - the spiritual world
bestows only the joy!

‘Abdu’l-Bahá. Selections, p. 31.
The Bahá’í Perspective on Globalization

If we suffer it is the outcome of material things, and
all the trials and troubles come from this world of
illusion.42

In this passage ‘Abdu’l-Bahá is referring to happiness as a
state that ‘joy gives wings!’ and the purpose of giving wing is
to fly. When people are happy and out of this material world,
they can fly. And refers to all suffering as earthly and
material things causing sorrows. Elsewhere, ‘Abdu’l-Bahá
identifies two kinds of happiness, spiritual and material:
Know thou that there are two kinds of happiness,
spiritual and material. As to material happiness, it
never exists; nay, it is but imagination, an image
reflected in mirrors, a spectre and shadow. Consider
the nature of material happiness. It is something
which but slightly removes one’s afflictions; yet the
people imagine it to be joy, delight, exultation and
blessing. All the material blessings, including food,
drink, etc., tend only to allay thirst, hunger and
fatigue. They bestow no delight on the mind nor
pleasure on the soul; nay they furnish only the bodily
wants. So, this kind of happiness has no real
existence.43

In a number of Writings ‘Abdu’l-Bahá refers to factors such
as food, water, shelter, education and good health as
essentials for a healthy physical life. Their function is to
satisfy our physical body. If we consider happiness as feeling
good and associated to a state of mind, then a good physical
health would influence the state of mind and therefore
happiness. However, material satisfaction alone cannot bring
real happiness, spiritual happiness is an essential part of the
whole bundle of happiness. ‘Abdu’l-Bahá said:
As to spiritual happiness, this is the true basis of the
life of man, for life is created for happiness, not for

‘Abdu’l-Bahá. Paris Talks, pp. 110-113.
Ibid. Quoted in the Divine Art of Living, pp. 17-18.
Economics and the Bahá’í Faith

sorrow; for pleasure, not for grief. Happiness is life;
sorrow is death. Spiritual happiness is life eternal.
This is a light which is not followed by darkness.
This is an honour which is not followed by shame.
This is a life that is not followed by death. This is an
existence that is not followed by annihilation. This
great blessing and precious gift is obtained by man
only through the guidance of God… [Therefore]
Until material achievements, physical
accomplishments and human virtues are reinforced by
spiritual perfection, luminous qualities and
characteristics of mercy, no fruit or result shall issue
therefrom, nor will the happiness of the world of
humanity, which is the ultimate aim, be attained.’44

The understanding is that spiritual health and material
well-being are harmoniously working together to
achieve and maintain true prosperity.

Let us look at some other essentials influencing happiness.
From a purely economic perspective. The conversion of
income into a good pattern of living is an important step that
must be taken. There are a number of course of action that
can be considered as guiding principles for the better use of
income. Incomes can certainly help the enhancement of the
quality of life and the freedoms that people can enjoy. Good
management of income helps the saving requirements so
crucial during for example economic crises. One factor that
greatly affects the standard of happiness, in the long run, is
the level of savings. Unfortunately, in poorer families with
inadequate level of income, there is shortage or absence of
savings. In such families, most of the income is spent on
necessity products and little or nothing remains for saving.
Saving is an important source of wealth accumulation in the
long run. With saving, people are able to buy their own house

Ibid. Selections, p. 283.
The Bahá’í Perspective on Globalization

and therefore enjoy a better life. It also helps older people to
have a happier life when they are retired. The time may come
that some governments may not be able to support their
pensioners for a long period of time. Hence, saving becomes
convenient.

It is also important to note that the Bahá’í Writings
emphasise the importance of the happiness for the entire
society rather than a minority of individuals. In numerous
Writings, Bahá’u’lláh is desiring to this matter including the
following two passages: ‘Blessed and happy is he that ariseth
to promote the best interests of the peoples and kindreds of
the earth.’45 And elsewhere He said: ‘We desire but the good
of the world and the happiness of the nations.’46

What is a good life? A decent life is identifying all the
necessities for having a life that is befitting human dignity.
The requirements of those necessities of life including
physical needs and those items needed for social inclusion
such as freedom, equal opportunity and the means for
progress. A good Bahá’í life distinguishes between ends and
means. The ends for a Bahá’í include, service to humanity,
happiness for all, unity, protecting the nature, and respecting
the future generation. The means to achieve the ends includes
education, skill learning, arts and crafts, industry, good
health, productive contribution towards community
participation, and individual core values such as
trustworthiness, truthfulness, honesty and freedom to
participate in advancing socio-political-economic agendas.
The notion of freedom to participate in social and economic
development allows individuals to benefit from equal

Bahá’u’lláh, Gleanings, p. 248.
Ibid. Quoted in The Proclamation of Bahá’u’lláh.
Economics and the Bahá’í Faith

opportunity and discover their own talents and be able to
contribute more effectively for the betterment of a
community. The means or access to various tools for progress
facilitates economic development at both the individual level
as well as the whole community. By looking and examining
those countries that there exist freedom and equal opportunity
and the means for progress are in a much better position to
provide an adequate standard of living for all its citizens.

For achieving a good life, we usually go through the
following stages:
I. Survival phase (subsistence): This is where the basics
and necessities of life are required for the survival:
‘Abdu’l-Bahá said: ‘the needy shall have their
necessities and no longer live in poverty.’ 47 The
United Nations’ characterization of survival stage and
the accessibility of the basic needs of living includes
food, clothes, shelter, good health and adequate
education.

II. Comfort phase (sufficiency of basic needs): ‘Abdu’l-
Bahá said: ‘everyone has the right to a happy,
comfortable life.’48 The phase of ‘comfort’ is the stage
of self-sufficiency and sustainability or a condition of
genuine happiness. This is where individuals have the
freedom to choose a state of happiness and wellbeing.
Freedom to choose is a necessary condition for this
stage, but not sufficient. Equal opportunity must be
provided to all citizens to get the advantage of their
own talents and capability. At this stage, individuals
know that spending additional money in accumulating

‘Abdu'l-Bahá, Promulgation, p. 102.
Ibid. Divine Philosophy, p. 83.
The Bahá’í Perspective on Globalization

more luxuries does not necessarily add a higher return
to happiness. ‘Abdu’l-Bahá said: ‘As the rich man
enjoys his life surrounded by ease and luxuries, so the
poor man must, likewise, have a home and be
provided with sustenance and comforts commensurate
with his needs. This readjustment of the social
economy is of the greatest importance inasmuch as it
ensures the stability of the world of humanity; and
until it is effected, happiness and prosperity are
impossible.’49

III. The phase of ‘enough is enough’ or ‘far beyond actual
necessities’: This is the stage that one is already
satisfied and no more will be tolerated. ‘Abdu’l-Bahá
said: ‘It is evident that under present systems and
conditions of government…[there are] others more
fortunate live in luxury and plenty far beyond their
actual necessities.’50

Spending ‘beyond actual necessities’ or beyond the stage of
‘enough is enough’ means we are buying more luxuries and
unnecessary products and the possible diminishing of our
further happiness. Beyond the stage of ‘enough is enough’,
there is over consumption which has led to consumer society
and hence causing wastage of resources. The stage of
‘beyond actual necessities’ corresponds with the law of
diminishing return, which states as we consume more of
something, our satisfaction diminishes. Hence, if we are
happy and satisfy with a certain amount of something, why
should we have more of it. Stopping beyond actual
necessities means we are healthier, and at the same time-

Ibid. Promulgation, pp. 181-182
Ibid. p. 107
Economics and the Bahá’í Faith

saving resources for more deprived ones. ‘Abdu’l-Bahá said:
‘The man of great wealth…will be forced, for his own
happiness, to expend his wealth to procure better conditions
for the community in which he lives.’51

In today’s most affluent societies, most people’s basic needs
have been fulfilled, and many are living outside the stage of
‘beyond actual necessities’ or ‘enough is enough’. This
condition of living demands a better understanding of true
meaning and purpose of life, the significance of a kind of
work that is considered as service to others, true prosperity
and the need for a ‘readjustment of the economic order.’52

6.5 Importance of core values
The importance of individual core values for establishing
ideal globalization is crucial. Numerous economic theories
and models that are created and introduced in the last two
hundred years has affected the whole society. However, the
positive outcomes of these models have not benefited
humanity in a fairway. One reason for the failure of some of
these models has been the absence of individual core values
so fundamental and essential for implementing the models.
Once the human heart is transformed and individual core
values and spiritual dimension of human nature is dominant,
then a real solution for the problems of the world can be
found. The Universal House of Justice states that this
transformation lies in the will and effort of individuals:
‘Souls must be transformed, communities thereby
consolidated, new models of life thus attained.’ 53 Bahá’í
scholar William Hatcher explains the implication of morality
in our economic system:

Ibid. Star of the West, vol. viii, no. 1, pp. 4-5.
Ibid. Promulgation, p. 102.
Universal House of Justice. Ridván Message, 1989.
The Bahá’í Perspective on Globalization

Viewing economics as primarily a concrete reflection
of our morality has profound implications for
understanding the dynamics of our economic system.
For a consequence of this view is that one cannot
change the economic system in much significant way
without changing morality.54

The present-day economic systems reflect the values and
power structures of present-day societies, including the low
value is given to justice and trustworthiness, and a highly
skewed power and wealth structure. If people reject these
values and seek a greater emphasis on integrity and on
fairness, it should be relatively easy to adjust laws and
economic institutions to change the incentives of the system
in favour of such values. The main cause of economic
problems according to Hatcher is structural and not financial.
It was corruption in the financial system and mismanagement
of the monetary policy in 2008 financial crisis which was the
cause of failure of the free-market economy and subsequently
continuation of crisis. Hatcher rightly commented:
One can question the validity of this opposition of
moral and economic values. It is just possible that the
dehumanising values associated with our modern
economic system precede the system rather than flow
from it. Perhaps it is not so much that money corrupts
but that corrupt people are using wealth in corrupt
ways for corrupt ends. Perhaps, in short, our economic
system is simply an external and concrete reflection of
our collective inner life which the immense resources
of modern technology have allowed us to project and
magnify to greater dimensions.55

Some people may argue that ‘the market’ will naturally bring
about all the necessary changes and eventually forms a
balanced economy or an equilibrium condition in the system.
William Hatcher. ‘Economics and moral values’, World Order magazine, vol.
9, no. 2, Winter 1974-75, p. 16.
Ibid. p. 15.
Economics and the Bahá’í Faith

The argument is that as supply curves and demand curves and
the invisible hand of the market (including competition and
price system) and processes of technological innovation all
work together naturally to bring about a new equilibrium.
The opponents of the free-market economy have grave
doubts about this. It is argued that the market as it is currently
structured consistently undermines long-term planning by
focusing on short-term profit maximisation and other short-
term incentive structures. Moreover, even the most
enlightened long-term planning will ultimately need to be
accompanied by a degree of spiritually motivated self-
sacrifice, in which people voluntary reduce their material
consumption out of commitments to social justice and
ecological sustainability, rooted in recognition of their true
spiritual nature. It is also argued that many consumers are not
educated and do not have enough information about goods
and services they buy. In other words, the education and
reasoning of people have not reached that standard to make
right choices.

The Bahá’í view is that humans are not only distinct from the
rest of creation, but at its apex, distinct and distinguished
from all else, as Bahá’u’lláh quoted from the Bible ‘God hath
created all humankind in his own image, and after his own
likeness.’56 Created in the image and likeness of God means
that whereas all other created things reflect one or more of
the signs or qualities of God, the human being is empowered
and given the capability, opportunity, facility and guidance to
reflect all the qualities of God. Some of those attributes that
befit human dignity includes forbearance, compassion,
mercy, and loving-kindness towards others. Reflecting upon
these attributes means that in our daily lives, we can

Bahá’u’lláh. Quoted in Lights of Guidance, p. 612.
The Bahá’í Perspective on Globalization

demonstrate and promote praiseworthy acts, which are the
force behind all advancement and progress in a global
society.

Having grasped the purpose for human being, let us consider
the prerequisites for the fulfilment of this purpose. For the
sake of this discussion, a distinction is made between
spiritual and moral values. Spiritual values are qualities like
purity, devotion, knowledge, and contentment, which can be
exercised on an individual basis or the community and thus
are independent of others. There are other qualities like
forbearance, compassion, justice and mercy, which require
that one be in association or in a relationship with other
beings. These are moral qualities or values, which are
dependent on reciprocal action. As we are dynamic beings, so
is our society. Dynamism is characterised by continuous
change and progress. For an effective change, moral and
spiritual values become essential for an ideal globalization
and sustainability in the long run.

The conventional view indicates that human values and
ethical considerations are on a different level from economic
issues of production, distribution and consumption. This view
is particularly dominant in the neoclassical model of
economics. Expounding on this John Wilson writes that the
model of neoclassical ‘portrayed as a purely positive model
of behaviour, independent of any normative considerations. It
argues that the source of human motivation is rational, self-
interest maximisation.’57 The Bahá’í position is different from
the neoclassical model of human behaviour and morality in
economic issues. The Bahá’í Writings integrate human values

John Wilson. Cited in Frank Ackermann, ed., Human well-being and economic
goals, New York, 1991, p. 23.
Economics and the Bahá’í Faith

with economic matters. This is clear from the following
statement from ‘Abdu’l-Bahá, ‘When the love of God is
established everything else is realised, this is the true
foundation of all economics.’58

Of course, the acquisition of spiritual qualities and moral
behaviour is what the Bahá’í Faith has in common with all
other Faiths. While this is true, the goal of religious practice
in the Bahá’í Faith is shifted from the individual development
to the community development. Hence, another aspect of
Bahá’í globalization is the collective progress of the whole of
humanity. For example, the importance of justice is
repeatedly stated in the Bahá’í sacred Writings and this
principle affects the entire society. In the same way, those
attitudes that lead to unity and human solidarity are valued.
Commenting on Bahá’í Writings, Farzam Arbab believes that
the eradication of social prejudices and the beauty of unity in
diversity are essential requirements for a meaningful
globalization. For Arbab, ‘Love includes the abolition of
social prejudices and the realisation of the beauty of diversity
in the human race.’ 59 Hence, a change and expansion of
‘social vision’ through specific human qualities have an
impact on collective actions in society. Arbab maintains that
the meaning of human values changes when living in a global
society. For example, he writes:
Detachment from the world is not taught in a way that
leads to idleness and to the acceptance of oppression;
it is acquired to free us from our own material
interests in order to dedicate ourselves to the
wellbeing of others. To this expansion of the meaning
of almost all qualities is also added a constant
endeavour to acquire social skills to participate in
meetings of consultation, to work in groups, to

‘Abdu’l-Bahá. Promulgation, p. 238.
Farzam Arbab. Canadian Bahá’í Studies Publication, 1987, p. 11.
The Bahá’í Perspective on Globalization

express opinions with fairness and clarity, to
understand the points of view of others, to reach and
carry out collective decisions.60

Thus, the path of spiritualisation mentioned by Arbab should
not be confused with one that defines goodness passively and
produces a human being whose greatest virtue is not to harm
anyone; it is a path to create social activists and agents of
change.

Similarly, William Hatcher explains the importance of
morality and the role of social organizations in lifting humans
from a lower level of existence to a higher level of moral
functioning, he writes:
Everything, which lifts us above an animal level of
existence, is made possible only through the existence
of a certain level of social organization, which, in
turn, depends on the existence of a certain level of
moral functioning. We may, therefore, say that the
particular form of social organization in a given
society at a given time is an expression of this basic
morality on which it depends. Economics depends on
morality. We can also see that the basic direction of
social evolution is that it progressively maximises the
internal freedom of the individual, requiring a
concomitantly more refined and delicately balanced
level of social organization.61

Thus, for Hatcher, morality is fundamental. Economics
depends on morality, and effective globalization depends on
the quality of relationship between individual members of the
society, which in turn relies on the level of moral functioning.
In the analysis of the subject of morality, Hatcher
distinguishes between two kinds of morality: one is intra-
personal or internal morality, which focuses mainly on a
Ibid.
William Hatcher. World Order magazine, winter 1974-74, p. 17.
Economics and the Bahá’í Faith

behaviour that affects the individual or agent, and the second
one is inter-personal or external morality and this one focus
on behaviours that affect others. 62 Bahá’í morality can be
described as a balance between the two approaches. It is not
only the quality of individual members of the society that
must be considered, but also the value of the association that
exist among human beings. The claim is that such a balance
of relationship is essential for a meaningful globalization and
it is in our reach because of the advancement of human
knowledge and consciousness.

6.6 Multi-dimensional aspect of an ideal globalization
Globalization is much more than internationalisation. It has a
multi-dimensional concept. Usually, internationalisation
refers to trade activities that take place with more than one
country. In contrast globalization include all matters that
affect the planet earth. Simon Reich identifies four
perspectives on globalization: historical/political;
cultural/sociological; technological/spatial; and finally an
economic phenomenon.63 For Joseph Stiglitz globalization is
also multi-dimensional and encompasses the international
flow of ideas and knowledge, the sharing of cultures, global
civil society, and global environmental movements.64 Moojan
Momen has named five groupings of globalization:
normative, psychological, financial, institutional and
universalism.65 For Shapour Rassekh the multi-dimension of
globalization includes: geographical, demographic,
technological, educational, cultural, economics, and

Ibid.
Simon Reich. ‘What is globalization? Four possible answers’, working Paper #
261, Pittsburgh: University of Pittsburgh press, 1998, p. 3.
Joseph Stiglitz. Making globalization work, p. 4.
Moojan Momen. ‘The Globalization of the Bahá’í Community: 1982-1921’,
Bahá’í and Globalization, pp. 76-93.
The Bahá’í Perspective on Globalization

environmental.66 The view here is that the more detailed the
dimensions, the more successful will be the process of
establishing an enlightened globalization in the long run.
Hence, I am suggesting the following dimensions for a
meaningful globalization: economic, financial, political,
cultural, educational, technological and information
technology, marketing, ecological, global resource use,
developmental, governance, institutional, human rights,
military and disarmament, democracy, weight and
measurement, currency, language, global division of labour,
Industrial development, ideological, and global ethics. It can
be maintained that these different dimensions of globalization
are closely connected to each other and intertwined with the
question of values.

There is a great emphasis by some religious and social
movements toward globalization and global issues. For Juan
Cole, the religious movements concerned with globalization
have tended to be either liberal or conservative. Cole argues
that ‘Liberal religious groups often attempt to accommodate
the social changes provoked by globalization as far as
possible in the framework of their traditions, concentrating on
charitable work and social justice.’67 Hence, there is a great
effort by religious and social movements to associate
themselves with globalization and global issues. Since the
early 1990s, economists have been using dimensions of
globalization with reference to the phenomenal growth in
international trade and investment. 68 Non-economist

Shapour Rassekh. Dunya Niyazmand-I Yik Tamaddun-I Jahani Ast, (author’s
translation from the Persian language: The world needs a global civilisation),
Spain: Foundation Nehal, 2010, pp. 23-24.
Juan Cole. ‘Globalization and Religion in the Thought of ‘Abdu’l-Bahá’,
Bahá’í and Globalization, pp. 55-75, at p. 56.
Farhad Rassekh and John Speir. ‘Can economic globalization lead to a more
just society?’ Journal of Global Ethics, vol. 6, no. 1, 2010, pp. 27-43, at p. 27.
Economics and the Bahá’í Faith

scholars, however, have a broader view of the term. For
example, David Held argues that globalization ‘is not a
singular, linear narrative, nor is it just a matter of economics.
It is cultural as well as commercial and in addition it is legal:
it is about power as much as prosperity or the lack of it.’69
Similarly, Anthony Giddens argues that globalization
encompasses more than an international integration of
economies. He writes, ‘Globalization is really about the
transformation of space and time. I define it as action at
distance, and relate its intensifying over recent years to the
emergence of means of instantaneous global communication
and mass transportation.’70 For Frank Lechner and John Boli
globalization refers to ‘the processes by which more people
across large distances become connected in more and
different ways.’71 Similarly, Ronald Robertson, who was the
first author to use the term globalization in the title of a
sociological article in 1985, describes globalization as ‘the
compression of the world and the intensification of the
consciousness of the world as a whole…The overall process
by which the entire world becomes increasingly
interdependent, so as to yield a single place.’72 These writers
and scholars agree that globalization is more than just limited
to economics and finance, it has multi-dimensional
phenomenon.

Shoghi Effendi in 1931 wrote that the world is ‘…contracted
and transformed into a highly complex organism by the

David Held, Anthony Barnett and Caspar Henderson. Debating globalization,
Cambridge: Polity Press, 2005, p. 2.
Anthony Giddens. Beyond Left and Right, California: Stanford University
Press, 1994, pp.4-5.
Frank Lechner, and John Boli. The Globalization Reader, 5th. ed., London:
Wiley Blackwell, 2008, p. 2.
Ronald Robertson. The Professoriate: Profile of a Profession, Springer, 2005,
p. 21.
The Bahá’í Perspective on Globalization

marvellous progress achieved in the realm of physical
science, by the worldwide expansion of commerce and
industry.’ 73 He also said, ‘The world is contracted into a
neighbourhood’74 Socialist theorist, Malcolm Waters not only
envisions a ‘world society’ but a ‘diverse’ one, according to
him, in ‘a globalised world there will be a single society and
culture occupying the planet.’ 75 Shoghi Effendi describes the
world as ‘organically unified in all the essential aspects of its
life’ [that is] ‘yet infinite in the diversity of the national
characteristics of its federated units.’ 76 Therefore, as Zaid
Lundberg points out, although Shoghi Effendi did not use the
term globalization, he described it as a multi-dimensional
phenomenon; contraction or compression of the world; major
transition or transformation; moving towards a single world
society, yet diversified; co-dependent or interdependent
society. 77 Hence, the modern scholars appear to be in
agreement with Shoghi Effendi’s description of the concept
of globalization.

Ronald Robertson proposed the following four basic
dimensions of globalization: society, the individual, the
international system, and the emergent categories of the
human. Commenting on Robertson’s proposition, Juan Cole
has outlined ‘Abdu’l-Bahá’s conception of the four
dimensions of globalization, a summary of which is outlined
here:
I) Society: ‘Abdu’l-Bahá was very much concerned
with the development of the Iranian society. He was
concerned with the need to transform the Qajár government

Shoghi Effendi. World Order, p. 47.
Ibid. Advent, p. 87.
Malcolm Waters. Globalization, London: Penguin Books, 1995, p. 9.
Shoghi Effendi. World Order, pp. 42-43.
Zaid Lundberg. Bahá’í and globalization, pp. 121-125.
Economics and the Bahá’í Faith

into a more modern Iranian national society. ‘Abdu’l-Bahá
acknowledged that in the late nineteenth century Europe and
the Americas were renowned for their ‘law and order,
government and commerce, art and industry, science,
philosophy and education’78 to which he believed Iran must
aspire. He also argued that society needs practical steps such
as the implementation of the law, parliamentary democracy,
separation of religion and state, and religious tolerance.

II) The individual: The construction of the individual
as a person in the context of globalization is a central concern
of ‘Abdu’l-Bahá. He indorsed the principle of compulsory
and universal education, He said ‘by man is meant the perfect
individual, who is like unto a mirror in which the divine
perfections are manifested and reflected.’79 He advocated that
all be educated for ethical and intellectual progress.

III) The international system: ‘Abdu’l-Bahá spoke a
great deal about the sort of international system he wished to
see in an era of globalization. He began discoursing on these
matters in His Secret of Divine Civilisation in 1875, where
He argued that Europe’s material civilisation of the
nineteenth century had become unbalanced and had come to
pose a danger to the world because it had not been
accompanied by similar advances in spiritual civilisation.

IV) The emergent categories of the human
development: ‘Abdu’l-Bahá sees the emergence of the world
as a single place as a quintessentially modern development,
made possible by profound technological and social changes.
‘Abdu’l-Bahá points out that in the early twentieth century it

‘Abdu’l-Bahá. The Secret, p. 10.
‘Abdu’l-Bahá. Selections, p. 61.
The Bahá’í Perspective on Globalization

was easy for everyone ‘to travel to every land, to associate
and exchange views with its peoples, and to become familiar,
through publications, with the conditions, religious beliefs
and the thoughts of all nations.’80

In all the above discussion of globalization there is a
connection between the Writings of scholars and the Bahá’í
thinking, which is about human relationships, exchange of
thoughts, prosperity of all nations, and effective
communication, all of which are necessary requirements for
an enlightened globalization.

6.7 Principles of an ideal globalization
The Bahá’í teachings on globalization are numerous. These
are some practical examples of Bahá’í teachings that
influence positively the process of the creation of an ideal
and enlightened global society. A limited number of these
principles are discussed here. These principles directly and
indirectly facilitate the process of a meaningful globalization.
It is important to note that Bahá’í teachings are
interdependent, and in any Bahá’í discussion, including
globalization, the totality of the Bahá’í Faith needs to be
considered.

6.7.1 Universal and compulsory education
One of the social teachings that can have a positive effect in
the process of forming a meaningful globalization is the
application of ‘universal and compulsory education’. There is
recognition that education is a basic human right, such as the
United Nations Charter of Human Rights, and the Council of
European Charter on Education. In the Ridván message of the
Universal House of Justice 2006, it is referred to: ‘concern

Quoted in Juan Cole. Bahá’í globalization, p. 62.
Economics and the Bahá’í Faith

for human rights to the systematic pursuit of universal
education. An all-inclusive approach to addressing social and
economic issues will become the norm when children and
youth receive proper education, both quantitative and
qualitative. But, what constitutes ‘proper education’ in the
Bahá’í Writings? The reference is given to three different
kinds of education that must be considered namely material,
human and spiritual.81

Education and training and skill learning are also an
important part of economic development. This principle is the
most important factor in increasing the potential of a
country’s population. According to economic development
scholar Michael Todaro, a major factor in determining the
success of an economy is the level of education and training
provided to its citizens. 82 In a global market economy in
which countries and organizations struggle to have effective
communication, education and training is an effective tool for
these accomplishments. For example, by introducing
universal primary education in Uganda and Bangladesh in
1997, the initial results show an improvement in economic
development, a decline in the unemployment rate, a decline
in poverty, and an increase in productivity.83 The argument

‘Abdu’l-Bahá in Some Answered Questions, p. 8. Explains three types of
education: Material education is concerned with the progress and development of
the body, through gaining its sustenance, its material comfort and ease. This
education is common to animals and man. Human education signifies civilisation
and progress — that is to say, government, administration, charitable works,
trades, arts and handicrafts, sciences, great inventions and discoveries and
elabourate institutions, which are the activities essential to man as distinguished
from the animal. Divine education is that of the Kingdom of God: it consists in
acquiring divine perfections, and this is true education; for in this state man
becomes the focus of divine blessings, the manifestation of the words, ‘Let Us
make man in Our image, and after Our likeness.’ This is the goal of the world of
humanity.
Michael Todaro, Economic Development, p. 343.
Louise Grogan. ‘Universal Primary Education and School Entry in Uganda,’
Journal of African economics, vol. 18, no. 2, 2008, pp. 183-211, at p. 186.
The Bahá’í Perspective on Globalization

given by Todaro is that the marginal social benefit of
providing compulsory basic education is more than a
marginal social cost. The social advantages not only include
material benefits, but also removal of different kinds of
prejudices such as religious, ethnic, racial, and economic that
are barriers to attaining a meaningful globalization. The
argument in the Bahá’í Writings is that ‘prejudices of any
kind are the destroyers of human happiness and welfare.’84
Hence the spread of universal and compulsory education
eliminates all kinds of prejudices and creates a smooth
process for reforming current globalization.

Universal education and training will increase the capacity
and productivity of the population and facilitate the
movement of labour from countries with a surplus of skilled
labour to countries with shortages. The Bahá’í community of
Iran is a good example. From its very inception, it invested
heavily in education by establishing schools for boys and
girls. Commenting on this, Momen writes:
Education and literacy, especially of women,
continued to be of prime concern to the Bahá’í
community. After the Bahá’í schools were closed by
government order in 1934, the Bahá’ís continued to
hold moral education classes (dars-i-akhláq) on
Fridays. By 1973 the Bahá’í community was able to
report the eradication of illiteracy among Bahá’í
women under forty years of age.85

Education can influence the future form and direction of a
country and its position in the global perspective. It also
determines the rate of Gross Domestic Product, which
measures the level of economic growth and standard of living
of a country. Education, apart from affecting the national
‘Abdu’l-Bahá. Cited in Bahá’í World Faith, p. 240.
Moojan Momen. ‘Iran: History of the Bahá’í Faith,’ Bahá’í World, 1994, vol.
15, p. 248.
Economics and the Bahá’í Faith

income, provides other opportunities for society. Todaro
discusses a number of opportunities that education can offer
to a country, including creating a more productive labour
force and endowing it with increased knowledge and skills;
providing widespread employment and income-earning
opportunities for all kinds of jobs; creating a class of
educated leaders in government services, and private and
public corporations; and providing the kind of training and
education that would promote literacy and basic skills for
population control. Hence, investing more into education and
training provides an attractive opportunity, which has a direct
impact on improving economic performance. The economic
returns from extra investment in education of the lower
income group in developing countries will be substantial. The
positive opportunities and accomplishments achieved through
education will create the necessary conditions for a smoother
process of attaining a meaningful globalization.

It is not possible to discuss the relationship between
education and development without explicitly linking the
structure of the educational system to the economic and
social character of a country. An educational system
accordingly reflects the essential nature of a society. For
Todaro ‘If the society is non-egalitarian in economic and
social structure, the educational system will probably reflect
that bias in terms of who is able to proceed through the
system.’ In modern times, an example of a society being
non-egalitarian in economic and social structure is religious
persecution. Religious persecution is a great barrier to the
development of the human resources necessary for growth
and the advancement of the community and the nation. For
example, the absence of equality, opportunity and human
rights and also existence of social exclusion in Iran are
barriers for Bahá’í youths to have access to higher education.
The Bahá’í Perspective on Globalization

Since 1979, the government of Iran has created barriers for
Bahá’í pupils to enter higher educational institutions. Such
government actions may cause all those who are excluded
from education to lack the necessary schooling and training
to be able to contribute to the advancement of their
communities and development of the country.86

Discussing religious freedom, Brian Grim, an expert in
international religious demography and the socio-economic
impact of restrictions on religious freedom, raise a sensible
and rational question: Is religious freedom good for the
economy? Analysing this question, he believes that Beyond
promoting peace and stability, religious freedom can
contribute to positive socioeconomic development in the
same way that freedom in general does. Grim refers to
Amartya Sen (1999), for instance, and argues that societal
development requires the removal of sources of “unfreedom.”
He writes:
According to Sen’s reasoning, religious restrictions
are a source of unfreedom. Removing impediments to
religious freedom facilitates freedom of other kinds.
Research finds that religious freedom is highly
correlated with the presence of other freedoms, such
that it can be considered part of a bundled commodity
of social goods that have significant correlations with
a variety of positive social and economic outcomes
ranging from better health care to higher incomes for
women.87

On the expulsion of Bahá’ís from public employment Moojan Momen writes:
‘In 1979 a large number of Bahá’ís in Iran were in public employment. Since the
Bahá’í Faith emphasizes the importance of education, a sizeable proportion of the
Bahá’í community was in professions requiring a high level of education.
Furthermore, certain areas of public service such as health and education are
favoured by Bahá’ís in view of what the Bahá’í scriptures say about these
professions. ‘The economic strangulation of the Bahá’í community of Iran’, 2009.
Brian Grim. Interdisciplinary Journal of Research on Religion, Volume 10,
2014, Article 4, pp. 1-19, at p. 4.
Economics and the Bahá’í Faith

Religious freedom is also correlated with one of the key
ingredients of sustainable economic development. This is
particularly important for businesses and the whole economy
because where stability exists, there are more opportunities to
invest and to conduct normal and predictable business
operations, especially in emerging global economy.

The non-egalitarian character of the social structure of certain
societies, such as religious discrimination, absence of human
rights, lack of opportunities for education, are obvious
challenges facing a meaningful globalization. Active
participation in community life is highly valued and is one of
the components of a meaningful globalization. Social
exclusions related to poverty, unemployment, education, and
different kinds of discrimination are obvious barriers to
participating in community activities. Therefore, if the
absence of a fair social system effectively denies educational
opportunities for a group of people, then the system can even
increase inequality in the country, which then affects other
countries.

A similar situation is possible in countries where the poor
may not have access to education because the educational
systems are inherently non-egalitarian. Educational
economist John Simmons gives the following sketch of how
the poor are beginning to regard education:
Schooling, the poor quickly learn, in most countries,
is an escape from poverty for only a few. The poor are
the first to drop out because they need to work, the
first to be pushed out because they fall asleep in class
as a result of malnourishment, and the first to fail their
French and English tests because upper income
children have had better opportunities at home. The
hope brought to village parents by the construction of
the primary school soon fades. Enough schooling to
secure a steady, even menial job for their son, let
The Bahá’í Perspective on Globalization

alone for their daughter, seems just beyond their
grasp. Before…any schooling would have done to
achieve their aspiration. Now a primary school
certificate is needed, and some are saying that even
students with some secondary schooling cannot get a
steady job, and they could never afford to send their
son away to town for secondary schooling.88

This view indicates that in the situations described by
Simmons, students from a lower income group are not given
an equal opportunity to complete any given level of
education.

Before ending this part, there is a need to re-examine the
issue of education and training in reference to population
explosion. Some resources such as the land remain more or
less the same, and as the population increases, less land will
be available; portions becoming smaller when divided by
more numbers. This aspect of the economy along with the
economic problem of scarcity in relation to unlimited wants
and limited rare resources makes the condition of living
unfavourable. However, it can be argued that advancement in
knowledge, innovation, technology and productivity, lead to
production of greater amount of goods and services and
therefore curtail scarcity. Population, if educated, skilled, and
dynamic, would be able to increase the productivity of the
land to satisfy the increased population. Indeed, development
of human knowledge and science leads to the ability to
change one’s life for the better, and satisfies the basic needs
of the population, now and in the future. The satisfaction of
one’s physical needs (related to the body) and physiological
needs (related to the functioning of the body) are important
and vital for the life of the body. Spiritual education on the

John Simmons. ‘Education, poverty and development’, World Bank paper no.
188, Washington, D.C.: World Bank, 1974, p. 32.
Economics and the Bahá’í Faith

other hand will help one to be content with a moderate
lifestyle.

6.7.2 The view on world citizenship
The concept of ‘world citizen’ 89 appears in the Bahá’í
Writings frequently and gives a clearer understanding of the
Bahá’í approach for attaining a meaningful globalization. In
the Bahá’í community the concept of being world citizens is
instilled in children so to broaden their love for the whole
world and all the people in it, rather than for only one group
of people. The Universal House of Justice states: ‘In keeping
with the requirements of the times, consideration should also
be given to teaching the concept of world citizenship as part
of standard education of every child.’ 90 Such a mission,
according to the Bahá’í International Community, should
begin with the acceptance of the interconnectedness of the
nations: ‘While it [world citizenship] encourages a sane and
legitimate patriotism, it also insists upon a wider loyalty, a
love of humanity as a whole.’ 91

The concept of ‘world citizenship’ encompasses the
principles of social and economic justice at all levels of
society, including ‘equality of the sexes; racial, ethnic,
national and religious harmony…Promotion of human
honour and dignity, understanding, amity, co-operation,
trustworthiness, compassion and the desire to serve.’ 92 The
Bahá’í community is learning how to practice and promote

For the concept of ‘world citizenship’ see also: Shoghi Effendi: Advent of
Divine Justice, p. 4. Promised Day is Come, p. 122. The World Order of
Bahá’u’lláh, p. 40, and p. 163. And a statement by the Bahá’í International
Community entitles ‘World Citizenship: A Global Ethic for Sustainable
Development,’ New York: United Nations Office, dated 14 June 1993.
Universal House of Justice. The Promise of World Peace, part II.
Bahá’í International Community. ‘World Citizenship: A Global Ethic for
Sustainable Development,’ New York: United Nations Office, 14 June 1993.
Ibid.
The Bahá’í Perspective on Globalization

‘world citizenship’ effectively. Several factors must be
considered by individual Bahá’ís, such as the responsibility
of putting the interests of the world before one’s own,
commitment to the whole world as one’s own home,
accountability for one’s actions, preserving nature, and
serving the common good. These are some of the challenges
faced, as world citizenship requires individuals to reach
beyond their own self to be a true world citizen.

6.7.3 Institution of the Nineteen-Day Feast
As discussed earlier, Bahá’í globalization is based on the
principle of unity. Bahá’ís work towards community building
at local level, as unity starts at the grass roots through
individual efforts, concerted community efforts and the
institutions of the Faith. At the core of Bahá’í community life
is the Nineteen-Day Feast, 93 held every nineteen days. The
Local Spiritual Assembly 94 has the responsibility of
organising these gatherings in their own specific area of
jurisdiction. Each individual Bahá’í has the responsibility of
working toward unity through his or her behaviours, actions
and lifestyle. The Nineteen Day Feast is a good example of
the close relationship of the individual, the community and
the institutions, where all Bahá’ís in the area, regardless of

The Bahá’í year consists of 19 months of 19 days each (361 days), with the
addition of “Intercalary Days” (four in ordinary and five in leap years) between
the eighteenth and nineteenth months which adjusts the calendar to the solar year.
The months are named after the attributes of God. Each Bahá’í community holds a
Nineteen Day Feast on the first day of each Bahá’í month. The Feast has spiritual,
administrative and social functions and is the principal gathering of Bahá’ís of a
particular locality. Retrieved: http://www.bahai.us/welcome/principles-and-
practices/bahai-calendar/>, [accessed: 26/01/ 2012].
Some of the functions of local Spiritual Assembly are: ‘to protect at all times
the Temple of the Cause; to promote amity and concord amongst the friends; to
extend at all times the helping hand to the poor. The sick, the disabled, the orphan,
the widow, irrespective of colour, caste, and creed; to promote…the material as
well as the spiritual enlightenment of youth, the means for the education of
children, institute, whenever possible.’ Shoghi Effendi. Quoted in Principles of
Bahá’í Administration, pp. 30-40.
Economics and the Bahá’í Faith

their socio-economic status and educational achievements
gather together to worship, discuss the community’s progress,
and consult about possible ways to build the community.
These discussions and recommendations are then taken to the
Local Spiritual Assembly, where they will be consulted on
further and a plan of action prepared for the local Bahá’í
community. This will allow involvement from the grassroots
in the exercise of community building and bringing about
unity. These local gatherings encourage an individual-
initiative attitude in Bahá’ís to be involved in development
activities, adding to the capacity of a village, city or town.
For example, Shoghi Effendi, in his letters to the Bahá’í
community of the United States, stresses the importance of
the duties of Local Spiritual Assemblies in ‘the maintenance
of unity and capacity of community action…through the
Nineteen Day Feasts and other local meetings.’95 The holding
of these gatherings is to bind hearts together. These
gatherings are referred to as feasts, as they provide for the
spiritual and physical needs of the community. They contain
three parts, devotional, administrative and social. The
spiritual part consists of reading and reciting from the Holy
Scriptures, which then prepares the attendees to consult on
the needs of the community and the progress of its plans
during the administrative part, which is then followed by the
social part when the Bahá’ís partake of some form of
refreshment together, even if it is just water. The holding of
thousands of such Feasts around the world with objectives
such as ‘unity in diversity’, ‘world citizenship’, ‘democratic
method of decision-making’, ‘respecting the local cultures’,
and ‘being free from all kinds of prejudices’ is a practical
way of learning and practising a meaningful globalization.

Shoghi Effendi. Bahá’í World Journal, vol. 5, 1976, p. 74.
The Bahá’í Perspective on Globalization

6.7.4 Institution of the Bahá’í marriage
This is another principle that helps maintain unity within the
Bahá’í community. As discussed earlier in chapter one,
family is the basic unit of society. Unless this all-important
building block is healthy and cohesive, society cannot be
healthy and unified. The foundation of a successful and
healthy family is the preparation for union as an essential
element of a happy marriage. Bahá’u’lláh said marriage is ‘a
fortress for well-being and salvation.’96 He not only permits
but also keenly encourages Bahá’ís to marry with people of
any belief or cultural, ethnic and racial background, and with
no consideration of social class and wealth. Marriage is to
ensure not only unity between the couple but also between
the two families, and even different communities and
cultures, such as in mixed marriages.

Mixed marriages, although challenging in some ways, enable
individuals and families to learn about and respect each
other’s cultures, a phenomenon that would have an effect on
globalization. Despite the challenges, mixed marriages have
the potential to remove national, cultural and religious
barriers in the long run and improve communication between
the parties. In theory, children raised in such families develop
a broader view of the world, with a positive attitude of
respect and effective communication with different cultures.

Studying the Bahá’í Writings, one notes that the founder of
the Faith calls the entire humanity to participate in a number
of principles as part of achieving meaningful globalization.
The exploration of the following four principles is of special
interest to this topic.

Bahá’u’lláh. Aqdas, note 88.
Economics and the Bahá’í Faith

6.7.5 Pioneering and travel teachings
The closest term to the concept of pioneering is
‘missionary’.97 However, it must be clear that pioneers do not
proselytise in light of the comparison to missionaries.
Pioneers are those Bahá’ís who leave their home and travel to
different parts of the world to serve varying needs of a
particular community, both Bahá’í and non-Bahá’í. By living
with other people and nations, Bahá’ís practise ‘unity in
diversity’ and ‘world citizenship’, two important features of
an enlightened globalization. The program of pioneering in
the last few decades has resulted not only in promoting the
Bahá’í Faith in all corners of the globe, also working towards
removing prejudices, which may otherwise form obstacles
towards creating a meaningful globalization. Pioneers and
travel teachers show in a very practical sense that it is
possible to be united while being different. It is important to
note that by moving to different countries, Bahá’í pioneers do
not intend to change people’s culture and traditions but to
learn and respect the culture of the community they live.

6.7.6 Developing capacity to serve humanity
Happiness is a relative concept and has a cultural element
attached to it. It may be argued that the first thing comes to
mind is to have an adequate amount of income and wealth as
a tool to become prosperous. However, wealth is the presence
of a relative condition in people. For a Bahá’í, happiness is
above the material satisfaction. The Bahá’í Writings refer to
‘humanitarian intentions’ 98 , including activities such as
service to humanity. Bahá’u’lláh states, ‘Vie ye with each
other in the service of God and of His Cause. This is indeed
what profiteth you in this world, and in that which is to

Shoghi Effendi. Citadel of Faith: Messages to America, Wilmette IL: Bahá’í
Publishing Trust, 1980, p. 41.
‘Abdu’l-Bahá. Tablets of ‘Abdu’l-Bahá, vol. 1, p. 43.
The Bahá’í Perspective on Globalization

come.’ 99 The worldwide Bahá'í community has been
endeavouring systematically to affect a transformation among
individuals and communities around the world, to inspire and
build the capacity for service.

In a tablet addressed to Bahá’ís, ‘Abdu’l-Bahá said: ‘You
must in this instance [that is, service to humanity] sacrifice
your lives, and in sacrificing your lives celebrate happiness
and beatitude (emphasis added).’ 100 The perception is that
happiness and service to humanity need to go hand in hand.
Bahá’ís are counselled to become distinguished in the virtues
of the human world, ‘Abdu’l-Bahá states:
For Faithfulness and sincerity, for justice and fidelity,
for firmness and steadfastness, for philanthropic deeds
and service to the human world, for love toward every
human being, for unity and accord with all people, for
removing prejudices and promoting international
peace.101
These virtues are the basis for an ideal globalization, and
Bahá’ís have the opportunity to influence communities
worldwide by practicing those virtues.

6.7.7 Social and economic development projects
The universality of Bahá’í development is incorporated and is
the basis of Bahá’í inspired social and economic development
projects. This indicates that in our increasingly
interdependent world, Bahá’í development efforts must be
animated by universal values and guided by a vision of the
world community. Projects are thus designed to engage and
benefit all the members of a community and not only Bahá’ís.
This vision is necessary for understanding the true concept of
globalization. Collabouration with organizations and leaders

Bahá’u’lláh. Quoted in the Advent, p. 83.
‘Abdu’l-Bahá. Tablets of ‘Abdu’l-Bahá, vol. 1, p. 44.
‘Abdu’l-Bahá. Promulgation, p. 190.
Economics and the Bahá’í Faith

of thought concerned with social, moral and economic
advancement is an important component of Bahá’í
development endeavours. Bahá’u’lláh states ‘All human
beings have been created to carry forward an ever-advancing
civilisation.’ 102 Consequently, the creation of a prosperous
and peaceful global society that promotes individual and
community wellbeing is central to the Bahá'í vision of the
future, which is incorporated by all economic development
activities. It is based on these principles that the Bahá’í
development approach is the struggle to learn universal
values. This requires engendering a new mind-set in the
Bahá’í community, which is already in place through various
educational programs for all ages. The existence of several
hundreds of social and economic development projects
worldwide, with visions such as unity, world citizenship,
service to humanity, work as worship, consultative process of
decision making, and putting the grass root population at the
centre of activities, will have a positive effect on reforming
the current globalization.

6.7.8 The Covenant
Bahá’ís believe that the distinctive unity of the Bahá’í Faith
stems from a promise from God to humanity that assures His
continuing guidance after the passing of Bahá’u’lláh. The
promise is referred to as the covenant (Ahd and Míthág).
Bahá’u’lláh, in his ‘Will’, ‘the Book of Covenant’, (Kitáb-i-
Ahd) appointed his son, ‘Abdu’l-Bahá, as his successor and
the interpreter of His Writings, and the centre of the
covenant. ‘Abdu’l-Bahá, also in his ‘Will and
Testament’(Alváh-i-Vasáyá) appointed his grandson, Shoghi
Effendi, as his successor, the interpreter of the scriptures, and
the guardian of the Faith. Thus, there is clear authoritative

Bahá’u’lláh. Gleanings, p. 215.
The Bahá’í Perspective on Globalization

interpretation of Bahá’í Holy Scriptures. According to this
covenant, the Universal House of Justice is the supreme
governing body of the Bahá’í Faith. Bahá’ís are, therefore,
united because they follow the same scriptures and authority.
The organization of the Bahá’í Faith and its administrative
institutions are such that do not allow the creation of sects,
branches or denominations. This requires establishment of a
strong covenant between the central figures of the Bahá’í
Faith and the believers. The House of Justice describes the
Covenant as:
An institution which protects the Cause from
individuals who, through the assertion of their own
wills, would try to force God’s Cause into the paths of
their own preference and thus divide the Faithful and
subvert the world-wide establishment of divine
justice.103

Therefore, the door of interpretation of the Bahá’í laws was
closed after the passing of Shoghi Effendi in 1957.
Bahá’u’lláh has prohibited individual ecclesiastical
leadership who have in the past had the authority to interpret
the Holy Scriptures, which led to division in religions. It is
through the Bahá’í covenant that a network of local, national
and international institutions is in operation with harmony
throughout the world. Considering that the Bahá’ís live in
more than one hundred thousand localities worldwide,
embracing the culture of unity directly affects the Bahá’í
community and indirectly affects the process of establishing
of a meaningful globalization.

6.7.9 A universal language and script
Having effective communication among citizens of the world
is a necessary requirement for achieving a meaningful
Universal House of Justice. Quoted in Power of the Covenant, Part Two,
Toronto: Baha’i Canada Publications 1976, p. 17.
Economics and the Bahá’í Faith

globalization. Language barriers cause poor communication.
In a global society with free movement of people across
nations, one common language helps to remove barriers and
misunderstandings. Bahá’u’lláh in 1873 called for an
international auxiliary language and script as a tool for
effective global communication among people and nations.
The term ‘auxiliary’ suggests that it is intended to be an
additional language rather than replacing native languages.104
Addressing leaders of the world, he states, ‘O members of
parliaments throughout the world! Select ye a single language
for the use of all on earth, and adopt ye likewise a common
script.’ 105 The Bahá’í Writings have not suggested any
specific language. The proposition is that representatives of
all nations will decide about the creation of a new language
or choosing one from among the existing languages.

An international language is one of the major tools of
effective communication in the modern world, particularly as
the process of international trade and global travel advances.
Such a language may remove the need for a middleman
between producers of products in rural areas and the final
consumers. Producers and farmers in developing countries in
particular, would benefit from an international language to
make trade easier and fairer in a global market. It would also
allow consumers and producers of developing nations to be
able to negotiate and settle costs and prices, which could be
more favourable to both parties and at times without a need

According to the Writings of Bahá’u’lláh the process of selecting an
international language will be in two stages. Commenting on this, the Universal
House of Justice writes: The first stage is to consist of the selection of an existing
language or an invented one, which would then be taught in all the schools of the
world as an auxiliary to the mother languages. The governments of the world
through their parliaments are called upon to effect this momentous enactment. The
second stage, in the distant future, would be the eventual adoption of one single
language and common script for all on earth. (See: Aqdas, note 193.)
Bahá’u’lláh. Aqdas, verse 189.
The Bahá’í Perspective on Globalization

for an intermediary.

Of course, the selection and implementation of an
international language is not without challenges. How a
decision is made for the selection of a common language may
indeed prove difficult. Furthermore, there may be a risk of
extinction of rare languages. This risk may not be noticeable
in the short run because people are enjoying the advantages
of effective communication, while benefiting from improved
international trade, tourism, and other benefits associated
with easier access to advanced technology and innovation.
But the risk of disappearance becomes more obvious in the
long run as people frequently use the international language.
We are already witnessing the disappearance of a number of
languages. It is estimated that about two thousand rare
languages [out of an approximate existing 7000] will
disappear in one hundred years. Another risk of adopting an
international language is in relation to people’s identity. A
particular language demonstrates a particular group’s culture,
identity and heritage, which the Bahá’í teachings hope to
preserve as part of the unity in diversity. Therefore, it would
be important for the members of parliaments throughout the
world when selecting a common language, to pay particular
attention to preventing the extinction of minority languages
in future. Whether the introduction of an international
language will be effective or not depends on its cost and
benefits. Otherwise, the speed of globalization makes it
necessary for people to become multilingual.

6.7.10 Principle of universal peace
A meaningful globalization is also an essential prerequisite
for establishing a valued world peace. Hence, there is a direct
correlation between peace, globalization and the changes that
are taking place and the resulting socio-political-economic
Economics and the Bahá’í Faith

benefits.

Most people choose to live in a period of economic stability
and prosperity. Peace can be a powerful stimulant for
economic development and a prerequisite for creating a
prosperous society. However, there is a kind of belief by
some people that humans are aggressive by nature and
violence is a part of human nature. The Bahá’í scriptures
disagree with this view and denounce any human aggression.
Humans are created with noble characteristics. It is stated that
‘in creation and nature, evil does not exist at all; but when the
natural qualities of man are used in an unlawful way, they are
blameworthy.’106 Thus, the Bahá’í Writings see human beings
as essentially good and civilization as evolving towards
maturity.

A key barrier to an ideal globalization is war and internal
conflicts, as they not only result in a waste of resources but
also create tension and separation among citizens of the
world. Conflicts greatly contribute to loss of human life and
wastage and destruction of natural resources, including the
non-renewable ones. These can cause setbacks particularly
for the poorer parts of the world. For example, a high level of
military spending affects the citizens’ quality of life by
limiting spending on developmental and social programs.
However, it can be argued that for some nations war and
conflict lead to arms production, and the export of armaments
boosts the domestic economies, including job creation. These
issues are of major concern in the Bahá’í Writings. In one of

Abdu’l-Bahá, Baha’i World Faith, p. 320.
The Bahá’í Perspective on Globalization

His Writings addressed to ‘Rulers and Monarchs’ 107 of the
world Bahá’u’lláh said, ‘They [sovereigns] must put away the
weapons of war, and turn to the instruments of universal
reconstruction.’ 108 Waste of resources is one of the most
pressing issues for economists and the Bahá’í Writings
strongly discourage any wastage of resources, human and
physical. But what are the ‘instruments of universal
reconstruction’? The amount spent on war can be diverted to,
for example, different forms of public services, such as
education and health, research and development of sciences
and arts, for improving people’s lives.

But what is the interest of economists in studying peace?
Some of the important assumptions and objectives of
companies are related to cost minimisation, profit
maximisation, and utility maximisation. During a period of
war resources are destroyed, which adds to the cost of
production. In theory, economics is also concerned about the
cost of starting a new war – not only the cost to taxpayers,
but also the possible effect on the economy, on oil prices, on
the stock market, on inflation and unemployment, and on the
standard of living. The concern is about the opportunity cost
of resources allocated to war, in both real value and monetary
value, including rebuilding cities after the war. If we define
economics in terms of efficiency, then it is concerned with
how good resources, such as human, physical, time, and
technology, are used to produce an end result. Consequently,
war, conflict and violence are not helping to protect
resources. In the statement below Shoghi Effendi outlines the

The chosen kings and rulers of the earth whom Bahá’u’lláh addressed include:
Napoleon III, Queen Victoria, Kaiser Wilhelm I, Tsar Alexander II, the Austrian
Emperor Franz Josef, the Ottoman Sultan ‘Abdu’l-‘Aziz and the Qajar Monarch
Násiri’d-Dín Sháh. See: The Proclamation of Bahá’u’lláh, Haifa: Bahá’í World
Centre Publications, 2nd ed., 1972.
Bahá’u’lláh. Epistle to the son of the wolf, pp. 30-31.
Economics and the Bahá’í Faith

immense opportunity cost related to the waste of resources.
He also recognises the associated benefits resulting from
saving resources:
The enormous energy dissipated and wasted on war,
whether economic or political, will be consecrated to
such ends as will extend the range of human
inventions and technical development, to the increase
of the productivity of mankind, to the extermination
of disease, to the extension of scientific research, to
the raising of the standard of physical health, to the
sharpening and refinement of the human brain, to the
exploitation of the unused and unsuspected resources
of the planet, to the prolongation of human life, and to
the furtherance of any other agency that can stimulate
the intellectual, the moral, and spiritual life of the
entire human race.109

A tranquil, peaceful economy will result in decreased risks
and volatility, which increases opportunities for economic
development and to make long-term plans. Conversely, a
high level of military spending detracts from citizens’ quality
of life by limiting spending on developmental and social
programs and this is a major concern in developing countries.
There is an inherent ‘opportunity cost’ for government
spending on war and internal conflicts. Money that is
expended in one area cannot be spent on another. To explain
this further, I will use a well-known economic model called
‘production possibility frontier.’ 110 Economists use this
technique to demonstrate the efficient use of resources that
are considered to be scarce over a period of time. For
example, at a time of war, if there is a need to increase the
production of military items, we would have to sacrifice
some of the production of civilian goods and services such as
education, health and housing. This is because the additional

Shoghi Effendi. World Order, p. 204.
John Beardshaw, Economics, 5th ed., 1992, p. 39.
The Bahá’í Perspective on Globalization

production of military goods and services has an opportunity
cost, in this case, the production of social goods. In other
words, the opportunity cost of producing extra units of
military goods is the sacrifice of civilian goods and services.
Thus, there is a trade-off between war and peace. Assigning a
higher priority to peace requires a lower priority to war. In
other words, as Muhammad Yunus affirms putting more
resources into improving the lives of the poor is a better
strategy than spending it on guns.

The establishment of universal peace in a global society
fosters both individual and collective well-being and security,
and this is at the heart of the Bahá'í vision for a meaningful
globalization. Addressing the leaders of the world, the
founder of the Faith said, ‘Compose your differences, and
reduce your armaments, that the burden of your expenditures
may be lightened, and that your minds and hearts may be
tranquilised.’ 111 During a period of peace, there is more
chance that resources will be allocated more effectively in
areas that are needed for the people’s quality of life. A
conscientious government at peacetime spends most of its
resources in pursuing plans that benefit their citizens.

The Bahá’í community has taken a number of steps by
investing in areas, which leads to increasing the welfare of all
citizens and thus contributing to the process of peace-making
through investment in early childhood education in many
communities as a part of socio-economic development
activities. Projects now under way in Africa, Asia and South
America demonstrate the potential for widespread
implementation of development programs through the global
network of Bahá'í communities. These projects are run and

Bahá’u’lláh. Gleanings, pp. 250-251.
Economics and the Bahá’í Faith

coordinated at the grass root by the full participation of
women and men in decision-making. These investments have
impacted on peace and stability among people in areas that
religion and racial conflict has separated members of
communities for so long. If a small community such as that
of Bahá’ís with much-limited resources can have such a
significant impact on the life of people, certain governments
and organisations with vast resources available to them can
have a much greater impact in improving the lives of people
and peace-making.

6.7.11 Free and fair international trade
Although globalization and free trade are beneficial to those
who are equipped to compete in the international
marketplace, they are less so for those not able to be a part of
the global market. It is no exaggeration to say that the world
market is now led by a handful of multinational corporations,
which produce a substantial level of the world’s total output.
The division in the human family between ‘the haves and the
have-nots’ has assumed a new dimension. Thomas Picketty
presents a body of empirical data covering several hundred
years that supports his central idea in his book - Capital in
the Twenty-First Century - that the owners of capital
accumulate wealth more quickly than those who provide
labour, a phenomenon widely described with the term ‘The
rich get richer and the poor get poorer.’ Hence, previously it
was mainly ‘poor get poorer, rich get richer’, and now it is
‘the increasing gap between the rich and the poor.’ The
Bahá’í Writings refer to this condition as ‘some who were
possessed of an affluent fortune and lived in the midst of
excessive riches, while others were in dire want and abject
poverty.’112 Currently, we are facing other barriers to a free

Bahá’u’lláh. Gleanings, p. 235.
The Bahá’í Perspective on Globalization

and international trade, including: language barriers, skill
shortages, geographical and occupational immobility, quality
standards, custom duty and regulations, and the exchange of
currencies.

The Bahá’í teachings on economics are consistent with the
belief that ‘The earth is but one country, and mankind its
citizens.’113 This statement supports international trade. The
establishment of a free and fair trade among nations is an
important pillar of globalization. A meaningful globalization,
however, is closely associated with a sustainable international
trade that is fair to both developing and developed countries
and preserves the eco-system. Sustainable international trade
has a significant role in establishing universal benefits,
‘Abdu’l-Bahá states:
It is apparent that whenever the ties between nations
become strengthened and the exchange of
commodities accelerated, and any economic principles
established in one country, it will ultimately affect the
other countries and universal benefits will result.114

The success of a fair and sustained international trade would
depend on how realistic such mutual exchange is. For
examples, issues related to protectionism, currency
fluctuations, quality of goods and services, and price levels
may affect trade or become barriers for a free and fair trade.
It can also be argued that the level of protectionism can be
decreased with a regulated international market. Shoghi
Effendi supports this view when referring to a free-market
economy.115 Any arrangement for the economics of the future
associated with a meaningful globalization must incorporate
justice and fairness for all humanity.

Ibid. p. 250.
‘Abdu’l-Bahá. Selections, p. 301.
Shoghi Effendi. World Order, p. 204.
Economics and the Bahá’í Faith

Supporting the free-market economy, ‘Abdu’l-Bahá has, for
example, encouraged the ‘promotion of the arts, the
discovery of new wonders, the expansion of trade, and the
development of industry.’ 116 He also approves of profit
sharing, which is a form of profit making, as a feature of the
market economy. Bahá’u’lláh has sanctioned the charging of
interest on financial loans as a part of a normal business
transaction, provided that this is done ‘with fairness and
moderation’ 117 on the understanding that the matter will be
adjusted and regulated by the head of the Bahá’í Faith, the
Universal House of Justice. Also, the principle that pay
differentials should reflect different levels of skill, ability and
talent is strongly upheld, both as a reward and an incentive
for high levels of performance and productivity. Shoghi
Effendi states that the Bahá’í Faith in the future will maintain
the ‘right balance between the two systems’118 of capitalism
and socialism. He states:
In the Bahá’í economic system of the future, private
ownership will be retained, but will be controlled,
regulated, and even restricted. Complete socialisation
is not only impossible but most unjust, and in this the
Cause is in fundamental disagreement with the
extreme socialists or communists. It cannot also agree
with the other extreme tendency represented by the
Laissez-faire or individualistic school of economics.119

Therefore, the Bahá’í economic system of the future will
consider a balance between the two schools of free-market
economy and socialism. Shoghi Effendi confirms this, ‘The
Cause can and indeed will in the future maintain the right balance
between the two extreme tendencies of individualism and

‘Abdu’l-Bahá. Quoted in Scholarship, p.1.
Bahá’u’lláh. Tablets, p. 132.
Ibid. p. 170.
Shoghi Effendi. ‘Letter dated 25 August 1939.
The Bahá’í Perspective on Globalization

collectivism, not only in the field of economics, but in all other
social domains.’120

In relation to international trade in The Secret of Divine
Civilisation, ‘Abdu’l-Bahá strongly urges Iranians to ‘look to
the expansion of trade with the nations of the East and the
West, develop…natural resources and increase the wealth
of…people.’ 121 This is significant because traditionally,
developed countries and multinational companies have often
seen developing countries as a source of cheap natural
resources that could be used by developed countries in the
production of goods. The focus has now shifted and a number
of developing countries are using advanced technology and
know-how. The movement of manufacturing to the
developing world has allowed them to improve their
comparative advantage and attain a relative prosperity.
‘Abdu’l-Bahá also called upon the Iranians to learn ‘modern
concepts…new systems and procedures…progressive
enterprises.’ [from] ‘the people of Europe.’122 Moreover, He
urged them to follow Japan because ‘Japan has opened its
eyes and adopted the techniques of contemporary progress
and civilisation.’123 Although these Writings are addressed to
the citizens of Iran, the comments have universal implication.

However, in practice, there are a number of restrictions or
barriers to a free and fair international trade, such as
protectionist measures, which protect the national economy
and include tariff and subsidy, and a more regulated import-
export market. Shoghi Effendi has condemned restrictions on
international free trade. During the Great Depression of the

From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi.
‘Abdu’l-Bahá. The Secret, p. 15.
Ibid. p. 13.
Ibid. p. 111.
Economics and the Bahá’í Faith

1930s, the USA, in an effort to protect its economy, increased
import duties to record levels. In 1931, in the midst of the
Great Depression, Shoghi Effendi wrote,
A narrow and brutal nationalism, which the post-war
theory of self-determination has served to reinforce,
has been chiefly responsible for the policy of high and
prohibitive tariffs, so injurious to the healthy flow of
international trade and to the mechanism of
international finance.124

Therefore, it is argued that globalization is largely the result
of the integration of many countries through free trade, into a
single global economy. The extent to which a country can be
integrated into the global economy depends on the level of
restrictions on the movement of resources into and out of the
country. Shoghi Effendi said, ‘economic barriers and
restrictions will be completely abolished.’125

So far, we have established that from a purely economic
perspective, a sustainable, fair and free international trade is
essential. However, for Amartya Sen the problem of
international trade with current globalization is in the sharing
of its benefits. In the face of such appalling poverty and
staggering inequalities, Sen raise a legitimate question: Can
we say that there is a fair distribution of the benefits of
globalization? Like Sen, Bahá’í scholars Shapour Rassekh,
Arthur Dahl, and Farhad Rassekh are concerned about current
processes of shaping globalization. The view is that the
problem of globalization is due to negative processes adopted
by the policy makers. On the positive side for Sen
globalization has been a blessing, not a curse, to all countries
which have embraced it. He refers to the recent East Asia and
benefits gained through the remarkable reductions in poverty

Shoghi Effendi. World Order, p. 35, and p. 204.
Ibid. p. 204.
The Bahá’í Perspective on Globalization

that have been achieved by countries that have opened up to
global markets and knowledge.

However, according to Sen, the distribution of the benefits of
global relations not only depends on domestic policies but
also on a variety of international social arrangements.
According to Sen these arrangements include:
Trade agreements, patent laws, global health
initiatives, international educational provisions,
facilities for technological dissemination, ecological
and environmental restraint, treatment of accumulated
debts, and the restraining of conflicts and local
wars.126

Such an arrangement becomes possible when, according to
Jeffrey Sache ‘the economic benefits of globalization are
distributed fairly and justly among the citizens of the
world. 127 Thus, morality plays an important role in
establishing a meaningful globalization. Farhad Rassekh and
John Speir specify that ‘Since economic globalization affects
the economic lives of people, it has moral implications that
often take centre stage in any discussion on globalization.’128
Bahá’u’lláh, in the following passage, elucidates the
importance of truthfulness and trustworthiness in trade, he
states, ‘Commerce is as a heaven, whose sun is
trustworthiness and whose moon is truthfulness. The most
precious of all things in the estimation of Him Who is the
Sovereign Truth is trustworthiness.’ 129 Therefore, Bahá’í
Writings strongly encourage Bahá’ís to practise trade with
the highest standard of conduct. As pointed out by Wilkinson
and Pickett ‘we can think of trust as an important marker of
the ways in which greater material equality can help to create

Amartya Sen. The Idea of Justice, p. 409.
Jeffrey Sachs. The End of Poverty, p. 358.
Farhad Rassekh and John Speir. Journal of Global Ethics, p. 27.
Bahá’u’lláh. Trustworthiness, p. 9.
Economics and the Bahá’í Faith

a cohesive co-operative community, to the benefit of all.’130
The difficulty with the current free-market economy is not so
much with the system itself but with the absence of moral
incentives to establish trust. It is noteworthy that Adam
Smith, in 1759 in The Theory of Moral Sentiment established
his model of ‘free-market economy’ on the foundation of a
human code of conduct that consists of benevolence. It seems
that this aspect of Smith’s model is somewhat missing from
the market today. The Bahá’í Writings advocate the
regulation and ‘readjustment of the economic order’ 131 as a
necessary condition for the betterment of the whole society.

6.7.12 An international single currency
In 1936, Shoghi Effendi wrote ‘...a uniform and universal
system of currency...will simplify and facilitate intercourse
and understanding among the nations and races of
mankind.’132 A universal single currency would be much like
an international language, which facilitates and improves
communication around the world, and the international trade.
Hence, the Bahá’í Writings support the notion of having an
international single currency for improving a fairer trade
among nations.

The global financial crisis in 2008 and also the Euro currency
crisis may immediately raise a concern that the idea of
introducing an international single currency may not be as
promising as it appeared to be. By looking at the Euro zone’s
economic condition since 2008, the opponents of a single
currency may argue that the idea of single currency is not
working. The United Kingdom government, for example,
oppose the European single currency on the bas The Bahá’í

Richard Wilkinson and Kate Pickett. The Spirit Level, p. 62.
‘Abdu’l-Bahá, Promulgation of Universal Peace, p. 102.
Shoghi Effendi. World Order, p. 204.
The Bahá’í Perspective on Globalization

Writings advocate the regulation and ‘readjustment of the
economic order’ as a necessary condition for the betterment
of the whole society. is on the separation of monetary133 and
fiscal134 policies. The argument in this section is that the dis-
functioning of a single currency is not due to currency itself
but to the management, administration, control and
organizational skills of those who are operating it. The
proposition is that having an international single currency is
advantageous to a global economy. The current economic
imbalances resulting from currency fluctuations are not
advantageous to any country. Joseph Stiglitz addressed the
issue of global financial imbalances that it ‘simply cannot go
on forever.’135 He, then, argues that ‘Underlying the current
imbalances are fundamental structural problems with the
global reserve system, [here Stiglitz refers to ideas of John
Maynard Keynes of how to reform the global monetary
system] including creating a new reserve system based on a
new international currency, can, with a little work, be adapted
to today’s economy. 136 The problem of the global financial
system, therefore, is systematic and has much to do with the
global reserve system, which improves global stability in the
financial market. Supporting Keynes view about a new
international currency, Stiglitz argues that ‘It would enhance
global stability and global equity.’137

One lesson learned from the current global financial crisis is
that due to increased capital mobility and economic
interdependency, the occurrence of one financial crisis in one
part of the world can have devastating effect on other parts of

Monetary instruments are: interest rate, exchange rate and money supply.
Fiscal policy is government policies on spending and taxation.
Joseph Stiglitz. Cited in Morrison Bonpasse, The Single Global Currency,
Newcastle: Maine, 2006, p. 433.
Ibid.
Ibid. p. 268.
Economics and the Bahá’í Faith

the world. Following the crisis, we see more coordinated
action between Central Banks, and this will increase in the
coming years, the reason of the structure of our economies.
According to international financial economists Charles
Wyplosz and Richard Maldwin in an Optimal Currency Area,
where a group of countries are better off with a common
currency than keeping separate national currencies; and also,
where there is labour and capital mobility, the single currency
takes away the risk of exchange fluctuation and associated
costs. Wyplosz and Maldwin writes:
For the business community and private sector, it is
very advantageous to take the risk our exchange out of
their business cycle equation. It also makes perfectly
sense where economies are converging and there is
increased trading exchange. I would suggest exploring
some history of currency and its development, that in
the past each town and region used to have their own
currency, it was always much more complicated to do
trades. Currency is not the driver of the exchange but
the vehicle to make exchange easier and more
transparent.138

Wyplosz and Maldwin’s idea is appropriate for a global
economy where there is a need for transparency simpler
transaction. There is also unpredictability and volatility of
exchange rates. Favouring an international single currency,
Morrison Bonpasse argues that using a single currency can
eliminated such volatility:
Economists continue to try to understand why, when,
and by how much exchange rates rise and fall and a
substantial portion of the published articles about the
international monetary system is about those exchange
rate fluctuations. However, there will never be totally
satisfactory answer, which is just one reason why the
system needs to be replaced with a Single Global

Charles Wyplosz and Richard Maldwin. The economics of European
Integration, London: McGraw – Hill Education, 2004, p. 16.
The Bahá’í Perspective on Globalization

Currency.139

Agreeing with Bonpasse, Joseph Stiglitz argued that
‘Economists might like to believe that economic forces
underlie all prices, but the prices of national currencies, at
least are determined as much by politics as by economics.’140

The global financial crisis of 2008 was universal and affected
both developed and developing countries. Looking at the
crisis and relating it to the currency situation, Joseph Stiglitz
wrote, ‘There is a remarkably simple solution, one which was
recognized long ago by Keynes: the international community
can provide a new form of fiat money to act as reserves,
(Keynes called his new money ‘bancor’).’ 141 Stiglitz called
them ‘global greenbacks’, which are similar to the Special
Drawing Rights (SDR) 142 of International Monetary Fund
(IMF). He wrote that the concept of global greenbacks,
‘simply extends the concept’ of SDRs, and that global
greenbacks would be issued annually, unlike SDRs which are
issued episodically.’143

Today, there are 143 different currencies in circulation
serving 191-member countries of the United Nations.144 It is
estimated that transaction costs related to currency exchanges
are in the region of billions of dollars annually.145 Of course,
such a transaction method would be beneficial to certain
groups such as banks and other financial institutions, and no
doubt create employment opportunities. Countries are

Morrison Bonpasse. The Single Global Currency, p. 418.
Joseph Stiglitz. Making Globalization work, p. 259.
Ibid. p. 260.
The SDR is an international reserve asset, created by the IMF in 1969 to
supplement its member countries’ official reserves.
Joseph Stiglitz. Making Globalization work, p. 261.
Morrison Bonpasse. The Single Global Currency, p. 483.
Ibid. p. 33.
Economics and the Bahá’í Faith

constantly competing with each other in order to promote
their respective currencies on the global market, and
currencies that become stronger are more valuable, and
consequently in higher demand. Governments at different
times intervene in the money markets, and resort to managed
exchange rate systems, in order to manipulate the exchange
rate so as to gain an advantage over their competitors.
Multinational corporations, invest only in countries whose
currencies are favourable to their operations, otherwise
relocate their businesses elsewhere.

The creation of a universal single currency cannot take place
overnight. Many factors need to be taken into consideration
before one is chosen or created. The success of regional
currencies such as the ‘East Caribbean Dollar – XCD’146 and
‘West African Franc – CFA’ 147 are notable, which have
harmonised the economies of a number of nations. These
represent a positive movement and a promising factor
towards the formation of a universal single currency. These
regional currencies have provided opportunity to further
understand the nature of an international single currency, as a
result, economists are now far better informed of what an
international currency may involve.

A universal single currency operating under a central bank
has certain economic implications and advantages over the
current system of 143 separate currencies in circulation in the
world. Among the factors that facilitate economic
transactions on a global stage is the benefit of rendering a

Eight East Caribbean countries using XCD are: Antigua and Barbuda, St.
Lucia, Dominica, Grenada, St. Kitts and Nevis, Saint Vincent and the Grenadines,
Anguilla, and Montserrat.
Eight West African countries using CFA currency: Benin, Colt d’Ivoire,
Gabon, Guinea-Bissan, Mali, Niger, Senegal and Togo.
The Bahá’í Perspective on Globalization

central bank independency, transparency and accountability.
Commenting on this Artis and Nixson argue that ‘It is
generally reckoned to be in the interests of effective
stabilisation and low inflation to ensure that the central bank
is independent from day-to-day political pressures.’ 148 It is
also important that the institutions concerned to be
accountable and transparent in what it does and how it does
it. Artis and Nixon further argue that by being accountable
and transparent ‘the central bank can enlist the support of the
market rather than working against the grain.’149 Transparent
helps firms and households to compare the prices of goods,
services and resources accurately in the global marketplace.
This is needed because of the distorting effect and the
variability of the exchange rates, which may discourage
trade. From an economic point of view, it is accepted that
prices should act as a signalling function for the optimal
allocation of resources, so as to improve economic
efficiency.150 The chances of this happening across the globe
would be far greater if there existed a universal single
currency.

Another benefit of a universal single currency is associated
with risks that each currency poses to the other. This could be
avoided using a single currency. In a multi-dimensional
currency market, countries are continuously striving to
influence their currency in order to gain a competitive edge,
and as the value of one currency is determined against
another, all currencies are at risk. This can be one of the
reasons for global economic imbalances. Moreover,
multinational companies that have invested heavily in

Mike Artis, and Frederick Nixson. The Economics of the European Union:
Policy and Analysis, 4th ed., Oxford: Oxford University Press, 2007, p. 266.
Ibid. p. 267.
Beardshaw. Economics, p. 47.
Economics and the Bahá’í Faith

different countries are at risk of losing money as a result of
currency fluctuations. In order to avoid such losses, they may
relocate their whole business operation to a country with
more favourable conditions. Transfers of this kind create
serious economic problems for the former host country,
including increased unemployment, decreased revenue, and,
more importantly, a decline in the welfare of the people.
Adoption of a universal single currency would help alleviate
this considerable risk and uncertainty from the economic
equation.

A universal single currency can be a regulating factor for
consumerism. Several factors lead consumers to spend more,
one such factor being the exchange rate. With a highly valued
or strong currency 151 , people are able to purchase foreign
products cheaper. It is for this reason that the rich and
developed countries with stronger currencies are able to
import products more cheaply. The opposite is also true:
countries with weak currencies are unable to import goods
produced by developed economies. A universal single
currency could play an important role in improving this
situation. A single currency, which has the same value in all
markets globally, would give people of different countries the
same purchasing power to trade with each other. Although,
single currency is an important factor for a fair trade,
however, it is not sufficient for improving the standards of
living. Other factors are essential such as the availability of
resources, employment opportunity, the level of education
and training, consumer and producer confidence, and the
price level.

The seven most popular currencies in the world are: US dollar, Euro, British
Pound Sterling, Japanese Yen, Swiss Franc, Canadian dollar, and Australian
dollar.
The Bahá’í Perspective on Globalization

Despite the advantages of a single currency, there are
challenges related to how it is designed, managed and
regulated. Hence, it can be challenged in a number of ways.
Assuming that a universal single currency is operated by a
world central bank, if a single rate of interest is decided based
on the so-called ‘one-size-fits-all’ policy, the interest rate
decided would be applied to all countries equally. There is a
risk then, that an interest rate, which may be appropriate for
one country, may not be appropriate for another. For
example, countries with high inflation may require a higher
level of interest rate, while countries with low level of
economic growth or high unemployment may need a lower
level of interest rate. In an ideal world with a meaningful
globalization and a sustainable development, where countries
operate in a similar economic cycle, having the same interest
rate would not be a problem. Individual governments also can
coordinate their activities with their own fiscal instruments to
avoid any conflict with the policies of World Bank and a
single interest rate.

Another difficulty with a single currency according to John
Sloman is in adjusting to an international shock, which
affects countries differently. He mentions for example a
sudden change in the price of oil would affect an oil
exporting country differently from oil importing one. Sloman
argues that ‘the divergences between economies are often the
result of a lack of harmony between countries in their
demand-management policies.’ 152 The Bahá’í scriptures
advocate a change in lifestyle and the adoption of a demand
management attitude, such as implementing the moral
principle of moderation. Also, according to Sloman ‘many of
the shocks that face economies today are global and have

John Sloman. Economics, p. 713.
Economics and the Bahá’í Faith

similar effects on all countries. Adjustment to such shocks
would often be better with a single coordinated policy.’153

At the regional level, gains from the adoption of Euro
currency came at the cost of abandoning monetary policy as a
stabilisation tool. Two experts in European economy, Mike
Artis and Fredrick Nixson, confirm this. According to them,
‘The monetary union entails the loss of one important tool of
national macroeconomic stabilisation policy which would
need to be compensated by greater reliance on a second such
tool, namely national fiscal policies.’ 154 According to Artis
and Nixson, the assessment of benefits and costs comes down
to a few distinct considerations:
Benefits come from gains for trade and growth and
the elimination of exchange rate risk; cost stem from
the possibility that monetary policy that is right for the
monetary union is wrong for the individual country.
This cost could take the concrete form of greater
volatility of inflation and growth in the absence of a
monetary policy instrument to help absorb
idiosyncratic shocks (shocks to an individual country
that do not affect the currency union as a whole).155

On balance, the success of a single currency, whether at
regional level or at international level depends on whether it
can promote economic justice in the world. It also depends as
to whether in an Optimal Currency Area, it removes the
advantages enjoyed by a few favoured countries, whose
currency is seen as strong as or more secure than that of
others and stops the poor from being affected severely by the
impact of currency fluctuations. In the long run, the adoption
of a universal single currency depends on whether it offsets
the harm that economic globalization may cause at the local

Ibid. p. 714.
Artis and Nixson. The Economics of the European Union, p. 283.
Ibid. p. 394.
The Bahá’í Perspective on Globalization

level, by putting everyone everywhere, on a more level
economic playing field. Hence, this particular teaching may
become controversial if it is not devised and implemented
properly, and if it does not stimulate economic justice. To
avoid confusion, as mentioned previously, the Bahá’í Faith
should be studied as a whole rather than looking at each
principle individually.

6.8 Opportunities and challenges of globalization
There are two paradoxical conditions that are shaping the
current process of globalization. On the one hand, and
positively, the economic performance and the wealth of
nations have increased significantly. On the other hand, the
gap between the poor and the rich has widened, and there is
increasing domination and bargaining power by some nations
and firms over others. Hence, the current globalization has
produced both opportunities and challenges.

Currently most developing countries enjoy greater trade in
goods and services, including: transfer of financial capital;
transfer of technology and information, specialization in
production, and greater labour migration; resulting in the
inclusion of more economies in the global trading system
including Central and Eastern European economies, China
and the other so-called ‘emerging economies.’ 156 We are
witnessing encouraging signs of acceleration in the process of
globalization, in particular, with the interest shown to global
economic integration caused by economic liberalisation. The
process of globalization is facilitated through removing trade
barriers, democratisation in many parts of the world and the

Emerging economies are the newly industrialised countries such as Brazil,
Russia, Indonesia, and China (BRIC). Also, it refers to economies in transition
from planned economy to the free-market economy such as the Eastern European
Countries.
Economics and the Bahá’í Faith

activities of the international agencies. The progress of
information technology has enabled the easy and relatively
cheap transfer of information between different agents of the
market at a global level. For example, the Internet has led to
increasing knowledge and information for both consumers to
demand their choice of product and the manufacturers to
produce what consumers demand. Advanced technology and
transportation enable mass production and distribution to
different parts of the world. Moreover, trade is gradually
becoming more liberated as restrictions have been reduced
due to the activities of the World Trade Organization.

The Bahá’í Writings also affirm that important components
of a meaningful globalization are the political, environmental,
social, and moral. Today, we are all speedily and increasingly
live in one world, and all nations are becoming ever more
interdependent. This is an understanding that most would
agree on. This view means that we are now living in a smaller
and better-connected world. ‘Abdu’l-Bahá has identified a
number of necessary elements for globalization, some of
which became available during his own lifetime, including
travelling, availability of information through different
publications, effective communication and exchange of
views. However, the issue of the interdependency of nations,
in its current form, is not without challenges. Two of the most
significant are that the current process of globalization has
created a condition of dependency, and the increasing
domination and bargaining power by some nations over
others. Thus, the challenge is creating and maintaining
interdependency in such a way that its foundation is based on
trust among nations.

Globalization has increased trade among nations and assisted
developing countries in becoming more integrated into the
The Bahá’í Perspective on Globalization

global economy. This has enabled domestic firms to establish
contracts with the international capital markets, thereby
producing more and benefiting from economies of scale.157
Increasing the level of output for a world market creates more
employment in developing countries. ‘Abdu’l-Bahá explains
that trade multiplies output. 158 Hence, principles such as
investment in education, providing opportunity for women,
and removing trade barriers would help to increase the level
of output in the market globally. Many developing countries
have already benefited by applying these principles and have
come out of poverty by earning additional revenue, which is
needed for improving public services such as education,
health and other welfare programs. The multidimensional
approach to poverty measurement has been discussed by a
number of recent writers. Their Writings implicitly accept the
proposition that, because of lack of information and other
market failures, important dimensions of well-being cannot
be purchased in markets with money, and thus require
independent measurement.

A positive occurrence that helps reform the current process of
globalization is the promotion of education among the female
population in some parts of the world. Education, leading to
the emancipation and empowerment of women motivates
them to participate at all levels of society as politicians,
educators, managers and entrepreneurs. Women in South
East Asian countries are now heavily engaged in
advancement of their communities in controlling the growth
of the population, while increasing the total output of the

Economies of scale is a situation where reduction in the cost of production
leads to increasing the level of output. Benefits includes: managerial,
technological, financial, and marketing economies. Economies of scale is a
characteristic of large firms.
For expansion of trade and issues related to free and fair international trade
see: ‘Abdu’l-Bahá, The Secret, pp. 5-36.
Economics and the Bahá’í Faith

economy. These activities not only connect their
communities to the rest of the world, but also have improved
the quality of their own lives, enabling them to better practice
their role as mothers. Women, thus, play an important role in
dealing with challenges such as population explosion, output
shortages, and improving standards of living, which are
important components of a meaningful globalization.

Further improvement is noted in the enrichment of
agriculture. Farmers have been encouraged to embrace new
technology. International agencies have helped to teach them
new techniques in farming and, as a result, there has been a
significant increase in their productive capacity. Adequate
technology is now available for farmers with small areas of
land.

Another area of development is the improvement of the
banking system through adjustment and regulation, and the
provision of funds for start-up businesses. This is particularly
crucial for the developing countries. The Grameen bank in
Bangladesh has made small credit (micro finance) available
to more than seven million women to start up their own
businesses.159 The social function of wealth has been realised
by the modern banking corporation, although much more
needs to be done for the effective implementation of the
social function of wealth.

Through access to information necessary for international
trade, the developing countries would be able to access
different markets around the world and trade their
commodities globally and more favourably. This suggests
that in practice there is no need for the middleman; and

See: Muhammad Yunus. Creating a World Without Poverty,
The Bahá’í Perspective on Globalization

producers in the developing countries are able to sell their
products directly to the final consumers. In particular,
developing countries can have easier access to advanced
technology, which can be obtained from the developed
countries for manufacturing products that are healthier and
more suitable for the local requirements. The vast
improvement in people’s knowledge and information, and the
significant role of pressure groups, animal lovers, and green
campaigners can help increase production of eco-friendly
commodities and more sustainable patterns of consumption.
Consequently, as Stiglitz pointed out, ‘Problem is not with
globalization but with how it has been managed.’160 For Sen
the Universal Declaration of Human Rights in 1948 is a
positive step towards achieving the conditions of a
meaningful globalization. For him, globalization is a
blessing, not a curse. He refers to East Asia and the recent
remarkable reduction in poverty achieved by countries that
opened up to global markets and knowledge. For Shapour
Rassekh the benefits of globalization surpass its cost. He
raised a question that how can we stop the negative attitudes
towards an effective and ideal globalization. He argues that in
last two decades the focus has been mainly on disadvantages
of globalization. He further comments that a meaningful
globalization must focus on humanizing it. Hence, for Sen,
Stiglitz, Sache, Rassekh and many more there is nothing
wrong with the creation and development of globalization,
the problem is the negative processes adopted to achieve it.
One such negative outcome is the creation of inequality in the
society. Quoting the World Commission on Social
Dimensions of Globalization, Joseph Stiglitz found that 59%
of the world’s people were living in countries with growing
inequality, with only 5% in countries with declining

Joseph Stiglitz. Globalism’s Discontents, pp.200-207.
Economics and the Bahá’í Faith

inequality. Even in most of the developed countries, the rich
were getting richer while the poor were often not even
holding their own. In short, globalization may have helped
some countries – GDP may have increased – but it has not
helped most of the people in these countries.

We are still facing many more serious challenges in
establishing a meaningful globalization. These include
elimination of extremes of wealth and poverty, the issue of
consumerism, the effective use of human capital, population
explosion, the preservation and protection of the ecosystem,
the prevention of child labour, and pursuing a fair
international trade. Experts and policy makers are faced with
multiple complex challenges for creating a meaningful
globalization. World Commission on the Social Dimension of
Globalization has condemned the current process of
globalization in a sense that the current process of
globalization is generating unbalanced outcomes, both
between and within countries:
Wealth is being created, but too many countries and
people are not sharing in its benefits. They also have
little or no voice in shaping the process. Seen through
the eyes of the vast majority of women and men,
globalization has not met their simple and legitimate
aspirations for decent jobs and a better future for their
children. Many of them live in the limbo of the
informal economy without formal rights and in a
swathe of poor countries that subsist precariously on
the margins of the global economy. Even in
economically successful countries some workers and
communities have been adversely affected by
globalization. Meanwhile the revolution in global
communications heightens awareness of these
disparities...these global imbalances are morally

The Bahá’í Perspective on Globalization

unacceptable and politically unsustainable.161

There is also the danger of moral crisis associated with the
current form of globalization such as exclusion, population
replacement, and environmental damage. Hence, in the face
of such appalling challenges and staggering inequalities, can
we say that there is a fair distribution of the benefits of
globalization? We are still in the early stages of globalization
and according to Sen ‘The rapidly expanding interest of the
subject has also had an impact on demands of policy
reforms’162 by individual countries.

It was argued that one benefit of globalization is creating
more employment in developing countries. But, this does not
mean that those employed are satisfied with what they are
doing. The following story written by Jeffrey Sachs and it is
about his visit to Bangladesh confirming this claim:
On one visit to Bangladesh, I picked up an English-
language morning newspaper, where I found an
extensive insert of interviews with young women
working in the garment sector. These stories were
poignant, fascinating, and eye-opening. One by one,
they recounted the arduous hours, the lack of labour
rights, and the harassment. What was most striking
and unexpected about the stories was the repeated
affirmation that this work was the greatest opportunity
that these women could ever have imagined, and that
their employment had changed their lives for the
better.163

The self-explanatory character of this story indicates that
although the existence of multinational corporations in

World Commission on the Social Dimension of Globalization. A Fair
Globalization: Creating Opportunities For All, Geneva: International Labour
Office, 2004, p. x.
Amartya Sen. The Idea of Justice, p. 381.
Jeffrey Sachs. The End of Poverty, p. 12.
Economics and the Bahá’í Faith

Bangladesh have changed the material life of these women
and perhaps millions more, but in an exploitive and inhuman
way.

At this early phase of the process of expanding globalization,
both developed and developing countries are affected, and to
some extent benefited. Developed countries have often seen
developing countries as a source of low-cost raw materials
that could be used in manufacturing products. Another
advantage to the developed countries is that the reduction in
the price of manufactured goods has increased the real
income of consumers allowing them to have higher standards
of living. This, however, has led to consumerism. On the
other hand, while the transfer of manufacturing to the
developing world has allowed the developed countries to
enjoy cleaner environments, it has simply moved the negative
effects of manufacturing, such as pollution, to developing
countries.

Hypothetically, globalization is expected to bring
unprecedented benefits to all countries, however as Stiglitz
argues:
[Globalization] has come to be vilified both in the
developed and the developing world. America and
Europe see the threat of outsourcing; the developing
countries see the advanced industrial countries tilting
the global economic regime against them. Those in
both see corporate interests being advanced at the
expense of other values.164

Henceforth, purely national interests often shape debates on
globalization, especially in policy-making circles, whether
social, economic, or political. Therefore, discussions of the
subject should be properly broadened to consider all aspects

Joseph Stiglitz. Making Globalization Work, p. 269.
The Bahá’í Perspective on Globalization

of global life in a changing world. The process of changing
the world is both a reform and a transition. It is useful to
define the terms ‘transition’ and ‘reform’. Transition implies
the shift from one system to another, for example, currently
there is a transition from the ‘command economy’ to ‘free-
market economy’, taking place by the Eastern European
Countries. While, reform implies changes in the existing
system, perhaps a more fundamental one, the Bahá’í Writings
suggest that the remedy to current socio-politico-economic
crisis consists of the removal of the old order and reforming
to a new World Order. Bahá’u’lláh states ‘Soon will the
present day order be rolled up, and a new one be spread out
in its stead.’ 165 The changes shaping human affairs now
indicate that transition into a global society is inevitable.
These changes include international activities and
cooperation among nations, such as holding international
conferences on environment, migration, poverty reduction,
and human trafficking. However, a major challenge in this
transition for reform is creating conditions for socio-politico-
economic fairness among and within the nations of our global
community so that humanity as a whole can benefit.

The question therefore arises as to whether humanity is
capable of facing the challenges of globalization. From the
above discussion, it is evident that the process of
globalization has already begun; however, a central view
discussed and presented in this work is that social structures
are constantly changing and no single economic theory would
be always suitable for the whole world. It is argued that
humanity has reached a level of understanding and accepting
responsibility and is capable of facing the challenges, but a
multi-dimensional solution is required.

Bahá’u’lláh. Tablets, p. 163.
Economics and the Bahá’í Faith

There is also a debate between Bahá’í and non-Bahá’í
scholars whether the Bahá’í Faith qualifies as a global
religion. There is an agreement among Bahá’í scholars that
the Bahá’í Faith is a world religion, a global religion166. Zaid
Lundberg in his paper, ‘Global Claims, Global Aims: An
Analysis of Shoghi Effendi’s the World order of
Bahá’u’lláh’, conveys Shoghi Effendi’s perspective on
globalization and that he defined the Bahá’í Faith as a ‘world
religion.’167 According to Peter Beyer:
There are now Bahá’í communities all over the world
in regions and localities as culturally different as they
could possibly be…the Bahá’í Faith is a global
phenomenon in the process of constructing a global
identity with the aid of universal teachings that apply
to the human condition.168

The Bahá’í Faith as a global religion can also be studied and
examined by working with religious texts and global
principles. There are a number of principles that facilitate the
process of achieving a meaningful globalization. James
Beckford has noted that in some senses the Faith of
Bahá’u’lláh ‘foreshadowed globalization, with its emphasis
on the interdependence of all peoples and the need for
international institutions of peace, justice and good
governance.’169

For an in-depth study of the Bahá’í Faith as a ‘global religion’, see: Seena
Fazel, ‘Is the Bahá’í Faith a World Religion?’ Ottawa: Journal of Bahá’í Studies,
number 6,1994. Also. See: Moojan Momen. Is the Bahá’í Faith a World
Religion?, in Soundings: Essays in Bahá'í Theology, ed. Sen McGlinn (1989).
Zaid Lundberg. ‘Global Claim, Global Aims: An Analysis of Shoghi Effendi’s
World Order’, p. 121.
Peter Beyer. The Religious System of Global Society. A sociological Look at
Contemporary Religions. 1994, Numen 45, vol. 1: 1-29. Also, quoted in Todd
Lawson, Bahá’í globalization, p. 37.
James Beckford, J. ‘Religious movements and Globalization’, in Robin Cohen
and Shirin M. Rai (eds.), Global Social Movements, London: The Athlone Press,
2000, pp. 165-219, at p. 175.
The Bahá’í Perspective on Globalization

6.9 The Bahá’í World Commonwealth
The phrase ‘Bahá’í World Commonwealth’ is plausibly the
closest expression to the concept of ‘globalization’ stated in
the Bahá’í Writings.170 The Bahá’í World Commonwealth can
be described as representing the final stage in the
development of the Bahá’í administrative order and standing
on the threshold of the promised Golden Age. Shoghi Effendi
has described the relationship between the Bahá’í World
Commonwealth and Bahá’í administration in the following
words: ‘It stands in its final form as a worthy and Faithful
exposition of the constitutional basis of Bahá’í communities
in every land, foreshadowing the final emergence of the
world Bahá’í Commonwealth of the future.’ 171 Thus, the
Bahá’í Writings envisage that humanity, and as a subset
within it the Bahá’í community itself, must undergo a process
of development. This comprises both short and long-term
developmental plans and activities to understand and fully
implement Bahá’í teachings. Short-term plans of action are
given to the worldwide Bahá’í community, by the head of the
Bahá’í Faith, the Universal House of Justice, the latter ones
being called the ‘Five Year Plans’. These short-term plans
provide guidelines for the progress of the Bahá’í community
and its future development.

The significance of Bahá’u’lláh’s prescriptions for humanity,
it is anticipated, will be realised only gradually over an

The term ‘Bahá’í World Commonwealth’ has been mentioned in The World
Order of Bahá’u’lláh (p. 40, 98, 146,152, 168, 193, 203, 204); in God Passes By
(p. 26, 316); in Advent of Divine Justice of Divine (p. 12); Bahá’í Administration
(p. 135); Promised Day is Come (p. 122); Bahá’í World (vol. XI, p. 138, p. 26);
and Messages to America (p. 81) where Shoghi Effendi talks about welding the
society into ‘... a single, organically-united, unshatterable world commonwealth
...’. Also, the term is used repeatedly in a letter from the Universal House of
Justice dated 27 April 1995.
Shoghi Effendi. Bahá’í Administration, p. 134.
Economics and the Bahá’í Faith

extensive period. Society as a whole is called upon to share in
establishing the Bahá’í World Commonwealth, for example,
by working towards the unity of all nations; bringing about
the ‘Lesser Peace172, and striving generally to acquire moral
and ethical values. However, it is only during the ‘Golden
Age’173 of the Bahá’í Faith that the world peace in its truest
sense as the ‘Most Great Peace’174 will be established.

An important issue to be borne in mind is that the new World
Order of Bahá’u’lláh is in an embryonic stage and it is as yet
too early to envisage the structure, implications, benefits, and
the character of the Bahá’í World Commonwealth.
Nevertheless, since the Bahá’í administration is a part of it,
we can argue that the process of establishing Bahá’í World
Commonwealth has already begun. The components of
Bahá’í World Commonwealth referred to in the Bahá’í
Writings are summarised by the Bahá’í International
Community as follows:
Recognised and secure borders for all nations;
freedom of movement and thought for all people; a
general disarmament; the establishment of a world

The lesser peace will come about through a binding treaty among the nations
for the political unification of the world. It will involve the boundaries of every
nation being clearly fixed, the size of their armaments strictly limited, the
principles underlying the relationship of governments toward one another
definitely laid down, and all international agreements and obligations ascertained.
See: Peace more than an end to war, Compiled by Terrill, Hayes; Richard, Hill;
Anne, Scheffer; Anne, Atkinson and Betty, Fisher, Wilmette IL: Bahá’í
Publishing Trust, 1986, p. 276.
‘The Golden Age of the [Bahá’í] Faith itself that must witness the unification
of all the peoples and nations of the world, the establishment of the Most Great
Peace, the inauguration of the Kingdom of the Father upon earth, the coming of
age of the entire human race and the birth of a world civilisation, inspired and
directed by the creative energies released by Bahá’u’lláh’s World Order, shining
in its meridian splendour, is still unborn and its glories unsuspected.’ See: Shoghi
Effendi, God Passes By, p. 411.
The Most Great peace will be the practical consequence of the spiritualisation
of the world and the fusion of all its races, creeds, classes, and nations. Such a
peace will rest on the foundation of, and be preserved by, the ordinances of God.
See: Bahá’u’lláh and the New Era, p. 276.
The Bahá’í Perspective on Globalization

federation of nations; the establishment of a world
tribunal for the adjudication of international disputes;
the creation of an international military force capable
of enforcing peace through principles of collective
security; and a commitment to the protection of
cultural diversity.175
These propositions for the Bahá’í World Commonwealth are
good illustrations of essentials of a meaningful globalization
anticipated in the Bahá’í Writings.

The issue of poverty discussed in several sections of this
work. For this part, I will consider briefly how Shoghi
Effendi’s propositions affect reducing poverty. Referring to
the Bahá’í World Commonwealth, he offers a number of
propositions, which are essential in dealing with economic
imbalances. He states:
The resources of the world will be organized, its
sources of raw materials will be tapped and fully
utilised, its markets will be coordinated and
developed, and the distribution of its products will be
equitably regulated...economic barriers and
restrictions will be completely abolished. 176

Let us consider some of the main causes of poverty. One of
the causes of poverty in the world today is the shortage, or
absence, of necessary resources available to the poor. When
the world’s resources are organized and used effectively, and
a greater share is allocated to poor countries, opportunities
will be created for them to improve their living standard.
Lack of coordination of the world’s markets is another cause
of poverty. Usually, poverty exists in areas where wealth is
concentrated in the hands of the few. In this category, must
be included the Multinational Corporations, which originate,
and thus control a considerable proportion of the world’s

Bahá’í International Community. The Bahá’ís, 2005, p. 82.
Shoghi Effendi. World Order, p. 204.
Economics and the Bahá’í Faith

production of goods and services. When markets are
coordinated, and the need for balanced economic growth is
recognised, the poor will be better able to promote their own
economic development. Another cause of poverty is that the
less developed countries have few market opportunities to
sell their products. As economic barriers are removed, market
conditions are developed, and a fairer and freer form of
international trade is practised, poor nations will be able to
market their products globally under much more favourable
conditions. This situation will certainly improve a lot of those
currently deprived of the full benefits of international trade.
And finally, one of the major underlying causes of poverty is
the lack of proper distribution of the world’s resources among
all nations in an equitable manner. The above statement of
Shoghi Effendi suggests under the Bahá’í World
Commonwealth the distribution of products will be equitably
regulated. Therefore, the principle of just distribution of the
world’s resources will be crucial in order to reduce and even
eradicate poverty.

6.10 Chapter conclusion
Globalization is defined as the process by which more people
across nations become interconnected in different ways.
Globalization from an economic perspective is expressed as a
borderless market. The view expressed that creating a global
society is possible at this time because the means of
interconnectedness of people and nations have been created.
These include advanced communication, information
technology, trade liberalisation, and global financial
interdependency. Some popular statements from the Bahá’í
Writings such ‘the well-being of mankind,’177 and ‘betterment

Bahá’u’lláh. Gleanings, p. 286.
The Bahá’í Perspective on Globalization

of the world,’178 and ‘We must all be in the greatest happiness
and comfort’ 179 confirm the Bahá’í vision of globalization.
Addressing Bahá’ís the founder of this Faith instructs them to
‘Let your vision be world-embracing.’180 To establish such a
vision, Bahá’ís not only work to build a community as a
model for a meaningful globalization, but also for the
common good. For example, there are specific guidelines and
instructions for individual Bahá’ís and the Bahá’í
community, such as standards for marriage, elimination of all
kinds of social and economic prejudices, and consultative
methods of decision-making. There are also principles
promoting the betterment of the world, such as universal
peace, gender equality, and the unity of humankind. This
way, Bahá’ís are committed themselves to be a part of the
process of forming a meaningful globalization.

However, the current process of globalization does not march
forward along a smooth path. It is maintained that there is
nothing wrong with the idea or the concept of globalization;
the challenges are in the negative processes adopted. For
example, the development of the current modelling of
globalization has created winners and losers, problems
associated with the eco-system, and unbalance growth and
expansion of organizations. The most worrying consequence
is the widening gap between the rich and the poor. Therefore,
this form of globalization is not in agreement with the Bahá’í
perspective of creating a sensible global society. Both Bahá’í
and non-Bahá’í writers and scholars have suggested that the
benefits of globalization should be distributed fairly and
justly among citizens of the world. It was also suggested that
the current form of globalization needs to be reformed, and

Ibid. Trustworthiness, p. 5.
‘Abdu’l-Bahá. Foundation of World Unity, p. 41.
Bahá’u’lláh. Gleanings, p. 94.
Economics and the Bahá’í Faith

such a reform need to be multi-dimensional. In addition, and
on the positive side, it was argued that humanity today has
the capacity to combat the challenges of globalization.

The process of capacity building and community building
involves a global enterprise of learning. It is a process of
action, evaluation, and adjustment, one in which local
communities gradually improves their abilities to define,
analyse, and meet their own needs. Hence, the process of
attaining a meaningful globalization in the Bahá’í community
is incorporating development strategies through a
combination of bottom-up and top-down planning systems. A
substantial amount of decision-making, planning and
implementation comes from the grassroots population, with
necessary guidelines and technical and financial support from
the Bahá’í institutions, such as the Office of Social and
Economic Development at the Bahá’í World Centre. In the
next chapter, the Bahá’í view on development will be
discussed.

Bahá’í Development Approach – Theory and Practice

Chapter 7: Bahá’í Development Approach:
Theory and Practice

Bahá’í worldwide now generally possess a much
clearer understanding of the unique Bahá’í
approach to development and have gained
invaluable experience in developing the art of
applying spiritual concepts to the practical
challenges of daily life.1
Universal House of Justice

7.1 Introduction
There is a great deal of correlation between globalization and
economic development. The two processes are inextricably
linked. If we consider Michael Todaro’s definition of
development as ‘The process of improving the quality of life
for all’2 then, as Jeffrey Williamson writes, ‘It started about
the same time as globalization, in the early 19th
century.’3 Considering these observations, it can be argued
that globalization and development are mainly 19th and 20th
century phenomenon and go hand in hand. The question of
which one comes first, the response is that globalization
requires the means, and the means are attained through
developments in such things as advancement in
transportation, effective communication, and technological
progress. The degree of development, however, depends on
the resourcefulness of communities, both physical and
intellectual. Development programs are varied from small
scale at local communities, to large scale at global level,
depends on the resources available to a particular community

Universal House of Justice, The Six Year Plan, summary of achievements, p. 72.
Michael Todaro. Economic Development, p. 739.
Jeffrey Williamson. ‘When Did Globalization Begin?’ European Review of
Economic History, vol. 6:01, April 2002, pp. 23-50, at p. 23.
Economics and the Bahá’í Faith

or to an organization to carry out social and economic
development projects. For example, agencies working under
the United Nations, and others such as Canadian International
Development Agency (CIDA) with substantial resources are
able to undertake extensive development projects around the
world.

7.2 Office of Social and Economic Development
The accelerated growth of the Bahá’í community worldwide
in the 1960s-1980s led to the enrolment of a large number of
people in India, Africa, South and Central America. Such
rapid expansion for the Bahá’í communities created
challenges, as the development required induction and
consolidation in the Faith. The process of consolidation
needed cooperation among Bahá’í communities worldwide.
The development projects were therefore started, supported
and reinforced by the Bahá’í communities. Such a process,
pursued most notably through a variety of educational
activities, received considerable impetus in two separate
statements issued by the head of the Bahá’í Faith, the
Universal House of Justice. First, in 1983, the historical
statement of 20th September asked for ‘systematic attention’4
to be given to the above area of activities following the rapid
expansion of the Bahá’í community during the 1970s,5 and
hence the Office of Social and Economic Development
(OSED) was established. Second, a statement issued in
September 1993 entitled ‘Bahá’í Social and Economic
Development: Prospects for the Future.’

The OSED is responsible for coordinating Bahá’í

Universal House of Justice. ‘Message dated 20 October 1983,’ Haifa: Bahá’í
World Centre Publications, 1983.
Holly Hanson Vick. Social and Economic Development: A Bahá’í Approach,
Oxford: George Ronald, 1989, p. 8.
Bahá’í Development Approach – Theory and Practice

development projects and is an agency of the Universal
House of Justice at the Bahá’í World Centre in Haifa, Israel.
Some of the responsibilities of the OSED are to provide
‘support and guidance’6 to Bahá’ís engaged in development
activities by ‘coordinating the flow of human and financial
resources to projects’ 7 and to nurture them by ‘providing
general advice, technical and otherwise, in response to the
questions that naturally arise in carrying on such
endeavours.’ 8 Therefore, the work of OSED according to
Universal House of Justice should be organized around its
primary purpose to ‘facilitate learning about development by
fostering and supporting action, reflection on action, study,
consultation, the gathering and systematisation of experience,
conceptualisation, and training - all carried out in light of the
Teachings of the Faith.’9

7.3 Bahá’í view on development
It is notable that the association of economic viewpoints with
religion and development are not new, nor is it restricted to
scholars of the 21st century. Scottish philosopher and
economist, Adam Smith presented his view of development
in his two major publications, the wealth of nations and the
theory of moral sentiment, arguing that the way to economic
development is increasing production, productivity and the
wealth of a nation. Also, German economist, socialist and
politician Max Weber put forward his now-famous theory of
‘the Protestant ethic and the spirit of capitalism,’ arguing
that economic development in Northern Europe could be
explained by developments associated with the ‘Protestant

Office of Social and Economic Development. Haifa: Bahá’í World Centre
Publications, 1999.
Ibid.
Ibid.
Ibid.
Economics and the Bahá’í Faith

ethics,’ which was interested in savings and entrepreneurial
activity. Hence, economists and philosophers recognise these
factors as necessary components of the theories and models
associated with sustained economic growth and development.

The universality of Bahá’í development is incorporated and is
the basis of Bahá’í inspired social and economic development
projects. This indicates that in our increasingly
interdependent world, Bahá’í development efforts must be
animated by universal values and guided by a vision of the
world community. Projects are thus designed to engage and
benefit all the members of a community and not only Bahá’ís.
This vision is necessary for understanding the concept
meaningful globalization. Collabouration with organizations
and leaders of thought concerned with social, moral and
economic advancement is an important component of Bahá’í
development endeavours. Bahá’u’lláh states ‘All human
beings have been created to carry forward an ever-advancing
civilisation.’10 Consequently, the creation of a prosperous and
peaceful global society that promotes individual and
community wellbeing is central to the Bahá'í vision of the
future, which is incorporated by all economic development
activities. It is based on these principles that the Bahá’í
development approach is the struggle to learn universal
values. This requires engendering a new mind-set in the
Bahá’í community, which is already in place through various
educational programs for all ages. The existence of more than
one thousand social and economic development projects
worldwide, with visions such as unity, world citizenship,
service to humanity, work as worship, consultation, and
putting the grass root population at the centre of activities,

Bahá’u’lláh. Gleanings, p. 215.
Bahá’í Development Approach – Theory and Practice

will have a positive effect on reforming the current
globalization.

According to Bahá’í Writings, religion has been among the
most powerful agents for changing human attitudes and
behaviour towards development. Religion, has traditionally
defined human nature, and our relationship each other and
with respect to the environment. Religion, in the Bahá’í view,
is ‘the cause of development and the animating impulse of all
human advancement’ [and] ‘has been the basis of all
civilisation and progress in the history of mankind.’ 11 In a
number of ways religions are the causes of wealth creation.
For example, it advocates moderation, which reduces wastage
of resources, and adds to wealth and it promotes for all
creatures and plants and the conservation of the earth’s
resources. Religion also encourages sharing and caring and
hence influences wealth redistribution. Many of the important
decisions about family, work and savings have been rooted in
religious beliefs. Religion emphasises the human resource
development that constitutes the ultimate basis for wealth of
nations. Religion is the source of hope for the vast majority
of the planet’s inhabitants. It is, therefore, ‘inconceivable that
a peaceful and prosperous global society, a society which
nourishes a spectacular diversity of cultures and nations, can
be established and sustained without directly and
substantively involving the world’s great religions in its
design and support.’12 Social and economic development has
been an important part of all religions and the Bahá’í Faith is
not an exception. What is significant now is the timing and
geographical implication of Bahá’í development.

‘Abdu’l-Bahá. Promulgation, p. 361.
Bahá’í International Community. ‘Statement on Sustainable Development,’
World Summit on Sustainable Development, Johannesburg, South Africa, August
26, 2002.
Economics and the Bahá’í Faith

It is the right time for the Bahá’í community to be involved in
social and economic development activities on a global scale
because as Holly Hanson puts, of the ‘strong foundation that
has been created over more than half a century of establishing
and building a worldwide Bahá’í community (the statement
was written in 1989).’ 13 The ‘global scale’ and ‘strong
foundation’ can be interpreted as the establishment of
increasing numbers of Local Spiritual Assemblies around the
world, which coordinate and direct the activities of the Bahá’í
community in villages, towns and cities. Also, the ‘global
scale’ does not refer to the size of projects but to the number
of projects. This indicates grassroots involvement in a
coordinated fashion while their activities are linked and
supported by the Bahá’í administrations at local, national and
international levels. The support can be in planning or
offering financial assistance if required. Therefore, the vast
majority of Bahá’í social and economic development projects
are local in nature rather than global. Confirming this the
Bahá’í International Community writes:
Most Bahá’í social and economic development efforts
are fairly simple activities of fixed duration in which
Bahá’ís in villages and towns around the world apply
spiritual principles to the problems and challenges
faced by their localities. These activities either
originate in the Bahá’í communities themselves or are
a response to the invitation of other organizations.14

The development projects consist of academic schools
dealing with literacy and capacity building. Many others
focus on areas such as basic health care, immunisation,
substance abuse, childcare, agriculture, the environment, and
microenterprise. Workshops and seminars on such themes as

Holly Hanson Vick. Social and Economic Development, p. 8.
Bahá’í International Community. ‘Bahá’í Development Projects: A Global
Process of Learning, 1999.
Bahá’í Development Approach – Theory and Practice

race unity and the advancement of women are also organized
for the whole community. The approach to creating and
operating these projects is distinctively Bahá’í. Many of these
programs according to Holly Hanson Vick are ‘fairly simple
activities of fixed duration in which Bahá’ís in villages and
towns around the world apply spiritual principles to the
problems and challenges faced in their localities. 15 The
approach to creating and operating these projects is
distinctively based on Bahá’í teachings. Many projects place
emphasis on raising the status of women, and a number of
projects seek to serve minority populations that have been
discriminated against. Most projects make extensive use of
the principle of consultation in an effort to seek input from,
and empower, those whom the projects attempt to serve.

In spite of considerable progress in the expansion of
development activities in the Bahá’í community, the
following two points are of importance. One is that projects
are aimed to increase people’s self-reliance, communal
cooperation, giving access to knowledge, and where possible,
removing sources of injustice and prejudices. These are
fundamental and necessary for the success of projects in
long-term plans. Also, considering that Bahá’í development
projects are mainly in areas where poverty and social
problems are prevalent, projects that create job opportunities
in a short period of time become favourable.

7.4 Features of Bahá’í development
By studying and observing the pattern of activities of Bahá’í
development projects around the world, it is possible to
identify the following five features.

Holly Hanson Vick. ‘Overview of Bahá’í Social and Economic Development,’
Bahá’í World, Vol. 21, 1992-1993, pp. 229-245, at p. 233.
Economics and the Bahá’í Faith

7.4.1 Material and spiritual coherence
From a Bahá’í perspective, development is an organic
process in which ‘the spiritual is expressed and carried out in
the material.’ 16 Therefore, an important feature of Bahá’í
development is that it must respond to both material and
spiritual needs in a balanced way. The Bahá’í literature
considers human beings essentially as spiritual in nature and
happiness and well-being will be ideally satisfied if the
spiritual aspects of their life is fulfilled and developed
alongside the material. ‘Abdu’l-Bahá said: ‘Although
material civilisation is one of the means for the progress of
the world of mankind, yet until it becomes combined with
divine civilisation, the desired result, which is the felicity of
mankind, will not be attained.’ 17 Hence, Bahá’í inspired
development projects incorporate this basic requirement.

7.4.2 Universality of Bahá’í development
Another feature of Bahá’í development is that in our
increasingly interdependent world, development efforts must
be animated by universal values and guided by a vision of the
world community. Projects are thus designed to engage and
benefit all the members of a community and not only Bahá’ís.
Collabouration with organizations and leaders of thought
concerned with social, moral and economic advancement is
an important component of Bahá’í development endeavours.
Bahá’u’lláh states ‘All human beings have been created to
carry forward an ever-advancing civilisation.’ 18
Consequently, the creation of a prosperous and peaceful
global society that promotes individual and community well-
being is central to the Bahá’í vision of the future, which is

‘Abdu’l-Bahá. Paris Talks, p. 9.
‘Abdu’l-Bahá. Bahá’í World Faith, p. 289.
Bahá’u’lláh. Gleanings, p. 215.
Bahá’í Development Approach – Theory and Practice

incorporated by all economic development activities. It is
based on these principles that the Bahá’í development
approach is the struggle to learn universal values. This
requires engendering a new mind-set in the Bahá’í
community, which is already in place through various
educational programs for all ages.

7.4.3 Development with the grassroots population
The desire for change must come directly from individuals
and communities and cannot be imposed from the outside.
An important aspect of Bahá’í development projects is that
for the most part, these activities are very simple initiatives
that take place at the grassroots level. The activities are used
to unlock the creative capabilities of individuals and
communities. The form of grassroots initiatives carried out by
small groups of individuals in towns and villages has an
important effect in the long run. As these initiatives evolve,
some grow into more substantial programs with permanent
administrative structures. Yet, very few of Bahá’í
development projects can be compared with the kind of
complex development projects sponsored by government
agencies and large multilateral organizations such as
Canadian International Development Agency (CIDA).
Therefore, the most important successes of Bahá’í
development initiatives are qualitative in nature. With an
emphasis on grassroots action and evolutionary growth,
Bahá’í development projects complement the many other
elements of Bahá’í community life. Development activities
are an integral aspect of Bahá’í efforts to create a pattern of
living that releases individual potential and simultaneously
promotes the collective good. Therefore, the Bahá’í
Development approach, is not a product to be delivered by
the ‘developed’ countries to the ‘underdeveloped.’ Rather, it
is a process in which individuals and communities in all parts
Economics and the Bahá’í Faith

of the world, regardless of the degree of their material
prosperity, become the principal actors in defining, analysing
and solving their own problems.

7.4.4 Education, the focus of Bahá’í development
Learning takes place at all levels and involves all the
members of Bahá’í communities, whatever their capacities
and experiences. Development of human resources is closely
related to learning and building of capacity. Training
methods, which foster participation and an open attitude
toward learning, principally involve individuals and groups at
the grassroots, but can also include professionals and students
from other regions and countries. In this way, a worldwide
process of learning is encouraged. The classes, and other
educational activities offered in increasing numbers by
Bahá’í communities around the world, can help to ensure that
children grow strong intellectually, morally, and spiritually.
The view is that increased prosperity in rural areas of
developing countries is mainly possible through the education
of rural children. To contribute to their societies effectively,
these children require not only acquiring knowledge and
skills, but also being acquainted with universal ethical values
to develop capability and proficiency. However, the main
focus of Bahá’í development projects is not only providing
necessary knowledge and education to increase the children’s
ability to earn financial requirements, but also to improve the
quality of life through personality development.

There are numerous examples of Bahá’í inspired social and
economic development projects with a systematic approach.
By investigating these projects around the world, the
indication is that a systematic approach is adopted towards
the application of Bahá’í principles towards development.
This is a key factor for the success of Bahá’í projects to the
Bahá’í Development Approach – Theory and Practice

challenges of social and economic development. According
to the Bahá’í International Community:
Certain Bahá’í development efforts have achieved the
stature of development organizations with relatively
complex programmatic structures and significant
spheres of influence. They systematically train human
resources and manage a number of lines of action to
address problems of local communities and regions in
a coordinated, interdisciplinary manner.19

The components for the application of a systematic approach
towards development stated before. The Ruhi Institute20 is a
good example of a successful Bahá’í Institute Process carried
on in a systematic way. In regard to its aim and function, the
Universal House of Justice stated:
Thousands upon thousands, embracing the diversity of
the entire human family, are engaged in systematic
study of the Creative Word in an environment that is
at once serious and uplifting. As they strive to apply
through a process of action, reflection and
consultation the insights thus gained, they see their
capacity to serve the Cause rise to new levels.21

These activities have understood and demonstrated that a
systematic, deliberate process of study, consultation, action
and reflection are essential to the success of any Bahá’í
enterprise.

The focus of a considerable number of Bahá’í development
projects is closely related to learning and building of
capacity. Training methods, which foster participation and an
Bahá’í International Community. ‘Bahá’í Development Projects: A Global
Process of Learning.’
‘Ruhi institute’ is based on the concept of the ‘training institute’. The Universal
House of Justice in the mid-1990s introduced the ‘training institute.’ Its purpose is
to assist individuals to deepen their understanding of the Bahá’í teachings, and to
gain the spiritual insights and practical skills they need to carry out the work of
the community.
Universal House of Justice. Ridván Message, 21 April 2008.
Economics and the Bahá’í Faith

open attitude toward learning, principally involve individuals
and groups at the grassroots, but can also include
professionals and students from other regions and countries.
In this way, a worldwide process of learning is encouraged.
The classes, and other educational activities offered in
increasing numbers by Bahá’í communities around the world
can help to ensure that children grow strong intellectually,
morally, and spiritually. The view is that increased prosperity
in rural areas of developing countries is mainly possible
through the education of rural children. To contribute to their
societies effectively, these children require not only acquiring
knowledge and skills, but also for personality development,
and to improve the quality of life for themselves, for their
families and the community in which they live.

7.4.5 Community building process
Bahá’u’lláh refers to the human being ‘as a mine rich in gems
of inestimable value’22 and states that the purpose of life and
society is to generate creative processes that serve to release
those ‘gems’ of human potential. As individuals begin to
cultivate their innate capacities, so the community around
them is transformed, and impetus is given to ‘an ever-
advancing civilization.’23 It is therefore the hope of the Bahá’í
community that its current modest efforts in the development
field will serve to promote a model of capacity building and
community building that results in widespread moral and
material advancement. Increased capacity depends on the
degree and dimension of the local contributions and
participation to the project in terms of human resources,
financial aspects and other resources. At this stage of the
development of the Bahá’í communities globally, social and

Bahá’u’lláh. Gleanings, p. 259.
Ibid. p. 215.
Bahá’í Development Approach – Theory and Practice

economic development Projects are not fully self-sufficient,
both financially and in terms of human resources. However,
there is a strong local initiative to support the Project.

7.4.6 Collabouration with organizations of the society
Collabouration with organizations and leaders of thought
concerned with social, moral and economic advancement is
an important component of Bahá’í development endeavours.
The founder of this Faith states ‘All human beings have been
created to carry forward an ever-advancing civilisation.’ 24
Consequently, the creation of a prosperous and peaceful
global society that promotes individual and community
wellbeing is central to the Bahá'í vision of the future, which
is incorporated by all economic development activities. It is
based on these principles that the Bahá’í development
approach is the struggle to learn universal values. This
requires engendering a new mind-set in the Bahá’í
community, which is already in place through various
educational programs for all ages such as ‘the Institute
Process’.

7.5 Development in practice
The importance of work ethics and sustainable production
cannot be appreciated without its practical implications. Here
are some possible practical and real-world observations from
the Bahá’í community offering the grass root population the
means for development and creating a better life for them and
the larger community. A number of Bahá’í social and
economic development projects in developing countries have
incorporated a culture that is explicit about welcoming
constant change. The positive attitude for welcoming change
is a prerequisite for successful adaptation of appropriate

Bahá’u’lláh. Gleanings, p. 215.
Economics and the Bahá’í Faith

technologies. For example, India hosts a number of Bahá’í
inspired socio-economic development projects including
Barli Development Institute for Rural Women (Indore), New
Era Teacher Training Centre and New Era School
(Panchgani, Maharashtra), Rabbani School (Gwalior),
Foundation for Advancement of Science (Lucknow), and
Rahmanian Foundation in Rajshahi - Bangladesh. These
establishments are a few examples that are using small and
medium-sized or intermediate technology and organising
training programmes designed for people at the grassroots
level. They use relatively simple and inexpensive ways to
make better use of available resources. The principal behind
this is that low-cost modern ways of performing tasks are
devised for increasing productivity. The important feature of
intermediate technologies is that they are appropriate to the
local circumstances in which they are used. The emphasis is
on the use of existing skills and resources so that people do
not become over-dependent on others. The economic
perspective in relation to any community that are using local
resources and also appropriate technology and skills learning
create more jobs.

The principles of Bahá’í work ethics discussed in chapter two
enable individuals and business organizations to create
employment opportunity by removing some of the labour
market deficiencies. Such opportunities boost earnings and
favour all participants. Individuals and families benefit from
increased disposable income and hence having a better
standard of living. However, the task is not that easy and
there are unexpected limitations and challenges such as
external shocks that affect the labour force unpleasantly and
Bahá’ís are not excluded. The Bahá’í community is not an
isolated community and what happens to the whole labour
market will affect the Bahá’ís as well, such as suffering from
Bahá’í Development Approach – Theory and Practice

unemployment during a period of recession.

7.6 Chapter conclusion
We need to keep in mind that those development agencies
such as NGOs (non-governmental organizations) and Faith-
based institutions are still in a transition period and there is a
need for shaping the form of partnerships between different
institutions in the future. The issues of religion are of critical
importance in the global agenda and there are many links
between religion and development that are complex and
diverse. There is a need to continue to work on building
stronger partnerships and alliances between development
agencies and Faith-based organizations and better understand
how the two works together.

Also, for a socio-economic development project to become
successful, it must be trusted. The reason many governments
fail to attract funding from International Agencies such as
‘the World Bank’, ‘United Nations’ and ‘Canadian
International Development Agency’ is the lack of trust and
commitment. In looking at overall development assistance for
poor countries, the international community wants to make
sure that funds are spent in areas in which they are needed.
Local governments receiving the funding must show a
genuine commitment to allocate resources to a specific
requirement. The former director of Development Dialogue
on Values and Ethics in the World Bank, Katherine Marshall
thinks that the poor work done by governments in certain
regions indicates or causes high trust levels for Faith
organizations, much higher than for most other institutions
such as police, governments, NGOs and politicians.
Therefore, if the objective is to work with communities, trust
is a critical element, and building on and working with the
trust placed in Faith organizations is very important. The
Economics and the Bahá’í Faith

trustworthiness of Bahá’í projects as Faith-based agencies
puts them in a strong position to be engaged in community
development successfully.

The Bahá’í-Inspired Model of Economic Sustainability

Chapter 8: The Bahá’í Inspired Model of
Economic Sustainability

Sustainable development is development that
meets the needs of the present without
compromising the ability of the future
generations to meet their own needs.1
(World Commission on Environment and Development)

8.1 Introduction
We must make a distinction between a market economy and a
market society. The market economy is a tool to organize
economic activities; however, a market society is where
almost everything is for sale. Both markets have become a
way of life for many where market-thinking dominate every
aspect of life. The missing part of this kind of market and
lifestyle is the absence of moral values, which must become a
part of the process of market thinking.

Therefore, the market is in conflict with itself and with its
participants and stakeholders frequently. Conflict and
inconsistency lead to the market being unbalanced or
reaching a disequilibrium position. Hypothesise of economic
theories is achieving maximum gain. In new-classical
economics, it is assumed that the interests of owners or
shareholders are the most important element. Just as
consumers attempt to maximize utility and workers attempt
to maximize their rewards from working, shareholders will be
motivated solely by maximizing their gain from the company,
suppliers are interested to deal with larger companies, and

Report from the World Commission on Environment and Development
(Brundtland Commission) published in 1987.
Economics and the Bahá’í Faith

government is addicted and dependent on taxes. In all these
instances, conflicts of objectives arise in the market, which
hinder equilibrium. The reason is that each actor or agent in
the market considers one’s own gain, while disregarding the
collective interests of the whole; and as long as ‘the spirit of
unity, of cooperation and of selfless service’2 is absent in the
market, the challenges of the market will not be resolved.
Having identified some of the challenges and inconsistencies
of the market, the proposition of this chapter is introducing a
theoretical description of economic variables as an alternative
approach to balancing the market. Without denouncing the
role of pricing, the proposition in this model is that by
incorporating and embracing moral incentives into the actions
and behaviours of the participants of the market, we can
reach to a more balanced economy. The model is a simplified
representation of the application of Bahá’í teachings on
economics in balancing the market in a sustainable way, the
eco-well-being.

The process of establishing a balanced market, also, can be
challenged. For example, participants in the market represent
their own thinking and behavioural patterns, such as the
motives of profit maximisation, self-interest, and aggressive
competition. The major activities of the market are through
the unit of currency as a medium for transaction. When
money dominates major aspects of a market, inequality
matters a great deal. The marketization of commodities and
psychological and misleading advertisements increases the
inequality of life. The spiritual principles suggested in this

Shoghi Effendi. Letter written on his behalf dated 10 August 1933. He states:
‘You should not attach much importance to your numerical strength, but should
always try to foster among you the spirit of unity, of cooperation and of selfless
service. For these alone constitute the true standard according to which your
activities should be judged and estimated.’
The Bahá’í-Inspired Model of Economic Sustainability

model, when applied, balances the focus on monetary values
and act as guiding principles to promote a fundamental
transformation towards sustainability.

8.2 The rational for the model
The modern market is a complex system of organization. The
proponents of the free-market economy claim that the market
is self-correcting and consumers and producers know best
what to consume and what to produce, and they are behaving
rationally, and the market eventually reach equilibrium.
Others, on the other hand, argue, the fact that there is high
unemployment in some markets, various types of negative
externality, underproduction of public goods, the existence of
poverty and inequality are indications that the market is not
self-correcting. The 2008 global financial crisis led to the
entire economic life to have extreme fluctuation. The
Universal House of Justice sates, ‘if current approaches to
economic life satisfied humanity’s stage of adolescence, they
are certainly inadequate for its dawning age of maturity.
There is no justification for continuing to perpetuate
structures, rules, and systems that manifestly fail to serve the
interests of all peoples.’3

Of course, fluctuation in the business cycle of any market is
normal, but it is possible to eliminate the extremes. Hence,
the argument in this model is that there are growing
challenges and problems in the economy that both the market
and the government have failed to address. Without
denouncing the role of government and the position of the
free-market economy and the pricing system, the Bahá’í
inspired model suggests that spiritual principles and moral
incentives should become a part of the formula for

Universal House of Justice, Economic Life, 1 March 2017.
Economics and the Bahá’í Faith

sustainability and achieving equilibrium. The moral
incentives are vital for the quality of relationship among the
participants of the market.

Alternatively, it would be advantageous to examine the
working of the market and to know how it functions under
different conditions and see more clearly what is valuable and
what is not. For example, markets give consumers a choice of
commodities to buy. Clearly this is valuable. However, the
choice of commodities on the market does not necessarily
reflect what people want to buy, or what is good for society.
Market mechanism, according to Joseph Carens ‘is simply a
social device adopted to serve the goals of the community.’4
Hence, the resources such as land, labour, and capital are
justified only if they are beneficial to the community. Also,
resource holders such as entrepreneurs have to act in ways
that are beneficial to the community. Other issues concern
false advertisements, which mislead innocent and more
vulnerable customers into purchasing items that they would
otherwise not buy. This is clearly wasting resources.

In this model, human activities are closely linked to human
values and moral incentives. For example, this model
supports the view that our economy cannot be in isolation
from nature and human values. As stated by Shoghi Effendi
‘We cannot segregate the human heart from the environment
outside us.’ 5 Sustainability therefore requires that the
activities within the market be in harmony with the laws of
nature, otherwise we may face severe consequences. This
view provides the very basis for a vigorous system of global

Joseph Carens. Equality, Moral Incentives, and the Market – An Essay in
Utopian Politico-Economic Theory, The University of Chicago Press, Chicago
and London, 1981, p. 189.
Shoghi Effendi. Conservation, p. iii.
The Bahá’í-Inspired Model of Economic Sustainability

economic system, also suggested by Jeffrey Sachs.
Development ecologist William Rees popularised the concept
of the ‘ecological footprint’, which he defined as ‘the impact
of a person or community on the environment, expressed as
the amount of land required to sustain their use of natural
resources.’6 And the Ecological Footprint indicator attempts
‘to measure the amount of renewable and nonrenewable
ecologically productive land area that is required to support
the resources demands and absorb the waste of a given
population or specific activities.’7 He believes that there is a
need to have a new, global cultural narrative. He writes:
We must learn to override our innate expansionist
tendencies and abandon our perpetual growth myth.
Instead of forcing the environment to conform to our
demands we must learn to adapt our expectations to
ecological reality. A good start would be a new global
cultural narrative that shifts the values of society from
competitive individualism, greed, and narrow self-
interest, towards community, cooperation, and our
collective interest in repairing the earth survival.8

Economic growth for Rees, therefore, is a question of moral
judgement and taking account of moral principles when
making decisions. According to him increasing human
capacity facilitates effective moral decision-making.
Expounding on this Rees writes:
Our most human qualities must prevail – our capacity
for reason, our capacity for forward planning, our
ability to make moral judgements, our compassion for
other people and other species. If we use these
qualities in a great expression of collective
intelligence on both the local and global scales,

William Rees. Cited in Tom Tietenberg. Environmental And Natural Resource
Economics, 9th ed., Pearson Education Inc., 2012, p. 557.
Tom Tietenberg. Environmental And Natural Resource Economics, pp. 557-558.
William Rees. Quoted in Hanley, Eleven, p. 135.
Economics and the Bahá’í Faith

humanity can become sustainable.9

Incorporating Rees’ views with the Bahá’í thinking, it can be
said that in the long run there is a need to limit the growth,
regulate the market, pursue a moderate lifestyle, educate
children, junior youths and youths to know the purpose of
life, and understand the concept of ‘world citizenship’,
creating a culture of moderation in all aspects of life.

How do we get from our present market condition to a more
sensible, equitable and sustainable world? The model argue
that a one-dimensional solution adopted mainly through
monetary instruments would not be effective in dealing with
such market inconsistencies. ‘Abdu’l-Bahá, states, ‘The
trouble with our economics [is that] …its system and
application have been purely material, instead of material and
spiritual.’ 10 Hence, the proposition in this model is to
consider a multi-dimensional approach to the market
equilibrium and sustainability - monetary and non-monetary.
The model suggests a process of ‘adjustment of means of
livelihood in human society,’ 11 which requires a change in
lifestyle for all participants of the market. The model
supports the definition of sustainability and sustainable
development stated by the Brundtland Commission of the
United Nations. The main component of sustainable
development is a development that meets the needs of the
present without compromising the ability of the future
generations to meet their own needs. 12 Preserving and
protecting the eco-system should be added to this definition.

Ibid.
Quoted by Mary Hanford Ford, ‘The Economic Teaching of ‘Abdu’l-Bahá’,
Star of the West, vol. viii: 1, 21 March 1917, p. 5.
‘Abdu’l-Bahá. Promulgation, p. 216.
Report from the World Commission on Environment and Development
(Brundtland Commission),1987.
The Bahá’í-Inspired Model of Economic Sustainability

The future generations have the same right to enjoy the
benefits of the planet earth as we do.

8.3 Illustration of the model
Figure 1 is an image of the free-market economy. This
market is out of balance most of the time. The absence of
market equilibrium means that resources including natural,
physical, and humans are wasted all the time. Some of the
significant problems associated with each part that causing
the market to become out of balance includes greed at the
stage of needs and wants; the main focus on profit
maximization with organizations; some of the products
produced are damaging to the environment; unnecessary for
living; the market function on the basis of relentless and
aggressive competition; distribution is unjust and causing
increasing the gap between the rich and the poor;
consumption stage is unsustainable and has led to
consumerism. The failure of the free-market economy is not
without the cost. The current market economy is based on
self-interest; power distortion and aggressive competition,
and causing negative externalities, increasing the gap
between the rich and the poor and the presence of
disequilibrium most of the time.

Economics and the Bahá’í Faith

Figure 1: Different stages of the cycle of production in a free-market economy

Figure 2 is the Bahá’í inspired model of economic
sustainability. This is an improvement of the different parts
of the cycle of production in a free-market economy based on
an understanding of spiritual and material aspects of the cycle
of production with unity/oneness as the nucleus. The pillars
of the model are the four spiritual principles of moderation,
cooperation, consultation and compassion. These pillars
provide the foundation and support for the proper functioning
of the rest of the model. The next part of the model shows the
resources necessary for the smooth functioning of the cycle
of production. These are human resources, physical
resources, and financial resources. The outer part is the cycle
of production, which includes needs and wants,
organizations, sustainable production, the market, distributive
justice, and sustainable consumption. The close and
inseparable connection between unity, spiritual principles,
efficiency of resources, and cycle of production is at the heart
of this model and captures its meaning and purpose. These

The Bahá’í-Inspired Model of Economic Sustainability

principles are necessary for an effective planning process. For
the model to be effective, the entirety of the model must be
studied and considered. All parts of this model are
complementary and interconnected.

Figure 2: The Bahá’í Inspired Model of Economic Sustainability

8.3.1 Unity/oneness as the nucleus of the model
At the centre of this model is the core principle of
unity/oneness of thoughts and actions for maintaining
reciprocity and acting responsibly by all participants in the
market towards each other. In chapter six section 6.3 a
contrast is made between unity and oneness.

Economics and the Bahá’í Faith

By unity in the context of this model means ‘the spirit of
unity.’ Unity, in a sense that people are concerned,
interconnected and responsible for the needs of each other,
recognise human well-being as a human right, and accept that
the suffering of others will affect their own comfort in the
long run. Thinking of humanity as one entity, whether it is in
a small community or in the wider society, can be effective in
resource efficiency. Unity in a sense that one’s feeling and
thinking is in harmony with one’s action. This way of
thinking by various participants helps the coordination of
various activities in the market and its stability. The success
of many economic models and theories are based on the
principle of unity. Examples include, comparative advantage,
which is two-sided trade and requires harmonious association
between the two parties. The success of a single currency,
whether regional or international, is based on unity among
member countries. The equilibrium between the supply and
demand is best achieved if consumers and producers act
towards each other sensibly and conscientiously. In similar
fashion, we can apply the concept of ‘the spirit of unity’ to
other economic ideas. Unity, therefore, is the nucleus, and a
prerequisite for establishing market equilibrium. It is the core
principle that acts like a catalyst to create a balance in the
market and to maintain it in the long run. Unity acts like a
bridge between microeconomics and macroeconomics when
the attitude is shifted from individual self-interest to the
collective well-being and prosperity of the entire economy.
To practice unity requires universal participation by all
stakeholders in accepting responsibility and creating and
maintaining a balance in using resources. Hence, one of the
applications of the principle of unity is to coordinate human,
financial, and physical resources in favour of all participants
of the market, justly and fairly.

The Bahá’í-Inspired Model of Economic Sustainability

8.3.2 Spiritual principles of the model
The application and understanding of the working definition
of ‘spirituality’ as a ‘unifying agent’ and as a relational
mediator, discussed in chapter one is vital for this model. It is
defined as the process of unifying, developing and
interconnecting our life with the material world, with other
people, with our environment, and with the future
generations, beyond ourselves. This definition is important
for qualitative purposes and also provides measurable
meaning to most parts of the model; hence it would be
valuable and appealing to social scientists, including
economists. A crucial requirement of this model is that it uses
moral incentives as a major source of motivation for
economic activities. Human, physical and financial resources
function more effectively alongside spiritual principles. By
‘moral incentives’ means incentives that is based on the
desire to serve society or to perform one’s duty to society.

The conventional view indicates that human values and
ethical considerations are on a different level from economic
issues of production, distribution and consumption. This view
is particularly dominant in the neoclassical model of
economics. Expounding on this John Wilson writes that the
model of neoclassical ‘portrayed as a purely positive model
of behaviour, independent of any normative considerations. It
argues that the source of human motivation is rational, self-
interest maximisation.’13 The position of sustainability model
is different from the neoclassical model of human behaviour
and morality in economic issues. The Bahá’í inspired model
of economic sustainability integrate human values with

John Wilson. Cited in Frank Ackermann, ed., Human well-being and economic
goals, New York, 1991, p. 23.
Economics and the Bahá’í Faith

economic matters.

The spiritual principles of moderation, compassion,
consultation, cooperation is considered vital for the
application of the ‘unifying factor’, and for the effective
functioning of this model.

8.3.2.1 Moderation
Moderation is a core spiritual principle for this model.
Moderation has important implications in economics through
resource allocation in the market. If sustainability is about
resource efficiency and consideration of other people, the
environment and the future generation, then moderation plays
a vital role in achieving sustainability. Moderation affects all
aspects of the market including lifestyle, the size of business
and its expansion and the environment. One important
economic objective of moderation expressed in this model is
the focus on the elimination of extremes of wealth and
poverty.

The practice of moderation in the wider market requires a
different mind-set to become a norm and a part of the culture,
which must be built on trust. No market can function
effectively without the presence of trust among different
agents. As market is a place that buyers and sellers come into
contact for exchanging commodities, it requires them to be in
association with each other. Effective association is based on
the element of trust; otherwise, it will be difficult to establish
a real connection. But how to build a society based on trust?
The proposition is to start in the family unit. From a Bahá’í
perspective, the family unit offers an ideal setting within
which can be shaped those moral attributes that contribute to
an appropriate view about material wealth and its utilisation.
This view, of course, can be challenged as not all families
The Bahá’í-Inspired Model of Economic Sustainability

provide an ideal setting to demonstrate trust or other family
virtues.

8.3.2.2 Cooperation
The fundamental economic relationship amongst the agents
of the market is one of reciprocal actions, corresponding to
the interdependent nature of human beings. The basis of this
reciprocal action is an honest and sincere commitment to
Faithfully do as has been mutually agreed. The fourth
spiritual principle discussed in this model is the importance
of cooperation, and this is preferred to competition, which is
the current practice in the market. The application of this
principle in the market is advantageous to all parties. In the
Bahá’í Writings, the principle of cooperation and reciprocity
are ‘essential properties which are inherent in the unified
system of the world of existence.’14 The passage shows the
extreme significance of cooperation among all existing
creatures, and not just in the market place.

The application of the principle of cooperation would allow
smaller businesses to enter or to stay in the market without
the fear of bitter and aggressive competition forcing them out
of the market. Cooperation, therefore, stimulates enterprise,
thereby increasing the level of output and consequently
employment, and generating more revenue for government.
Also, a consultative method of decision-making suggests that
employees are participating in making those decisions that
affect their own working life. This system of decision-making
is motivating to the workforce and creates in them a sense of
belonging to the organization. The result is less wastage, less
absenteeism, higher productivity, and more revenue for an
organization, all of which are measurable and help in

‘Abdu’l-Bahá. Huququ’lláh, p. 21.
Economics and the Bahá’í Faith

achieving organizational objectives such as growth and
increased profit. All these factors are quantifiable. Hence, the
model of economic sustainability recommends cooperation in
competition. Quoting Dodinsky ‘Be there for others, but
never leave yourself behind.’ Here, individual freedom is
considered rather than the exclusion of other values.

The argument in favour of cooperation in this model goes
beyond the scope of the market and the economy. The
emphasis is on the moral facet is that cooperation and not
competition is the cause of social activities just as the life of
an organism is maintained by cooperation of the various
elements of which it is composed. The base of life as
‘Abdu’l-Bahá states, is ‘mutual aid and helpfulness, and the
cause of destruction and non-existence would be the
interruption of this mutual assistance. The more the world
aspires to civilisation the more this important matter of
cooperation becomes manifest.’ 15 Farhad Rassekh also
stresses the moral aspect of cooperation and believes that
competition, like other aspects of the market, may be
conducted morally or immorally. He argues that competing
for ‘customer service, quality improvement and innovative
products are beneficial, while deceptive and restrictive
practices are hurtful to society.’ 16 He, then refers to false
advertising as an example of ‘deceptive practice and lobbying
the government to control imports as an example of
restrictive practice.’17

8.3.2.3 Compassion
Another spiritual basis for this model is the principle of
compassion. The use of the analogy of family is particularly

‘Abdu’l-Bahá. Bahá’í World Magazine, vol. 3, p. 154.
Farhad Rassekh. Journal of Bahá’í Studies, vol.11, p. 3, 2001.
Ibid. p. 4.
The Bahá’í-Inspired Model of Economic Sustainability

relevant to elabourate this principle. The family unit lives
within the society and is not isolated. Thus, different families
have relationships with each other. The comfort of the family
unit is dependent on the well-being of the neighbours and
many more families in the community. This is important
because the principle of compassion effectively works within
this unit of society. The family becomes much more sensitive
and understanding of the needs of others when they realise
that their own comfort is dependent on the well-being and
comfort of others. The idea that it is good to be concerned
about the welfare of others has been a central theme in many
religious traditions. The notion of family is considered here
for further analysis of mutual or communal relationship.
When we use to analogy of family life, it yields the principle
that a mutual or communal orientation is helpful in families
and is harmful when interests are dominated by concern for
the welfare of self, only. An empirical study done by Wesley
Burr, Loren Marks and Randal Day shows that when families
show a high interest to the welfare of others, the benefit goes
to the entire community. They write:
This principle has several assertions. It asserts that
when lifestyles emphasis self so much that it interferes
with interest and concern for others, this decreases the
probability that family members will find successes in
their family life. Also, when the primary concerns are
the welfare, goals, and concerns of others, and people
do not focus on their own needs, this too is harmful.
The probability of successes is highest when people
focus primarily on the needs of others but also wisely
attend to their own needs and interests.18

There is a growing scholarly literature that argues for the
validity of the analogy of family. Burr, Marks and Day

Wesley Burr, Loren Marks, Randal Day. Sacred Matters: Religion and
Spirituality in Families, p. 112.
Economics and the Bahá’í Faith

conclude that the data is so persuasive that being responsive
to others in a non-contingent manner promotes the welfare of
others is the most important beneficial process in communal
relationships. Applying the principle of compassion to the
wider community means looking after our own personal and
family comfort and happiness without forgetting the need of
others. This view can be developed further through education
and better understanding of the concept of ‘world
citizenship.’ The notion of compassion, therefore, has close
links with the principle of distributive justice, and sustainable
consumption in the cycle of production. Also, there is a close
association between compassion and the notion of unity.
Compassion and unity are complementary and
interdependent. The coexistence of both helps achieving
equilibrium in the market smoother and more effective. It
helps to overcome all kinds of ‘economic prejudices’19, which
otherwise may cause conflicts between individuals and
business organizations. Unity also motivates us to separate
ourselves from bitter competition, ego, and other forms of
marketing gimmicks, which cause destruction of valuable
resources, allowing us to focus on cooperation and
harmonious activities, which would lead to efficiency.

8.3.2.4 Consultation
Consultation is another spiritual principle for effective
operation of the model. One of the problems related to
sustainable development is the inability of some participants
in the market to take a shared view of social, economic,
environmental and spiritual factors, and use a collective
decision-making process. With the main goal being unity and

Regarding the economic prejudice, it is apparent that whenever the ties between
nations become strengthened and the exchange of commodities accelerated, and
any economic principle is established in one country, it will ultimately affect the
other countries and universal benefits will result. Then why this prejudice? See:
‘Abdu’l-Bahá. Tablet to the Hague, p. 6.
The Bahá’í-Inspired Model of Economic Sustainability

coordination of activities in the face of increasingly
interdependent and complex socio-economic and
environmental challenges, this model stresses that more
mature methods of collective decision-making are now
imperative. The proposition is that a consultative method of
decision-making helps producers and consumers and other
stakeholders of the market carry out an effective planning
process. A collective method of decision-making influences
all aspects of resource allocation and different stages of the
cycle of production in designing, implementing and
coordinating the programs that affect all participants.
Increasingly, more organizations are learning that by
exercising the method of collective decision-making through
consultation, and by involving and empowering the workers
in the process, the company saves resources. When applied,
this method provides an opportunity for each person to
contribute to the process of achieving the goals. This in turn
influences the relationships and subsequently improves the
behaviour of individual members of an organization
focussing on environmentally friendly products.
Sustainability requires the principle of consultation to be
applied not only for creating better working conditions and
improving the input-output process, but also indirectly to
preserve the ecosystem. Challenges such as environmental
issues require global solutions and collective actions, which
will be more effective through the application of effective
consultation among policy makers. However, there are
challenges in the application of effective consultation.
People, applying this method must be familiar with the
features of an effective method of consulting together.

The principle of cooperation indicates that the fundamental
economic relationship amongst the agents of the market is
one of reciprocal actions, and the interdependent nature of
Economics and the Bahá’í Faith

human beings. The basis of this reciprocal action is an honest
and sincere commitment to faithfully do as has been mutually
agreed. In this model, cooperation is preferred to competition,
which is the current practice in the market. The application of
this principle in the market is advantageous for all
participants. The argument in favour of cooperation in this
model goes beyond the scope of the market and the economy.
Its essential properties are ‘inherent in the unified system of
the world of existence.’20 The emphasis is on the moral facet
that cooperation and not competition is the cause of social
activities just as the life of an organism is maintained by
cooperation of the various elements of which it is composed.
The basis of life is ‘mutual aid and helpfulness, and the cause
of destruction and non-existence would be the interruption of
this mutual assistance. The more the world aspires to
civilisation the more this important matter of cooperation
becomes manifest.’21

The recognition of the unit of family as the foundation of a
greater society means that changes in the family through
consultative method of decision-making could be applied to
the wider community. Of course, not all families are well
informed about the skill of consultation, and not all
organizations are familiar with its components for an
effective communication. The nonattendance of practicing
consultation, however, does not necessarily discard the
benefits attached to a democratic and consultative method of
decision-making essential for improving the level of
communication. When applied, this method provides an
opportunity for each person to contribute to the process of
achieving the goals. This in turn influences the relationships

‘Abdu’l-Bahá. Huququ’lláh, p. 21.
‘Abdu’l-Bahá. Bahá’í World Magazine, vol. 3, p. 154.
The Bahá’í-Inspired Model of Economic Sustainability

and subsequently improves the behaviour of individual
members of an organization.

To summarise, these principles constitute the spiritual
foundation of the model. Sustainability requires the exercise
of moderation, with consideration and compassion, through
the art of consultation, and effective cooperation in all parts
of the market. Putting these four spiritual principles together
helps to attain an effective planning process for all
participants of the market, which is essential to accomplish
equilibrium in the cycle of production and achieve
sustainability.

The moral aspect of calculation helps the application of
spiritual principles. By bringing ourselves to account each
day. In a business environment, people’s intellectual capacity
to dispassionately calculate the value of commodities is an
important part of the development of a meaningful price
system. Prices, far from being arbitrary numbers displayed on
products, are a critical channel of communication system
that guide the creation and allocation of complex production,
distribution, and consumption functions. Currently, self-
interest is a necessary part of economic calculation. However,
situations such as collusion by firms through a number of
pricing strategies such as price fixing. A situation that the
business lowers the price so much to put competitors of the
market, are damaging to a sustainable market mechanism or
to exclude other from the market.

8.4 Human, financial and physical resources
The optimal allocation of resources is essential for the market
and the whole economy when considering what to produce,
how to produce and for whom to produce. The three major
resources are human, financial and physical with great
Economics and the Bahá’í Faith

interdependency between them. Obviously, the combination
of the use of various groups of resources depends on the
nature and complexity of the business and the whole market.

There is a growing recognition that investment in people is
the key to development. Torrington, Hall and Taylor maintain
that ‘There is a move towards redressing that balance in
search for an equilibrium between needs for financial
viability and success in the marketplace on the one hand and
the need to maximize human capital on the other.’22 In any
line of work it is essential to adopt a program of continued
training and professional development. This feature is highly
valued and encouraged in this model. Companies and the
whole market should be concerned with the health and
education of the workforce. Thus, the heart of the issue with
human resources is the skills-base of the business. Human
capital plays a critical role in today’s knowledge-based
economy and is hence considered as the most valuable
resource of a company. To have a viable business the
employer obviously requires those who do the work to
produce an appropriate and effective performance and the
performance, in great part, come from employees. According
to Torrington, Hall and Taylor ‘it is the efforts and activities
of employees which are the basis of competitive advantage
for a business.’ 23 We may argue that factors of production
such as capital and natural resources are inactive; this means
if they are left to themselves, nothing would happen. Human
resources are the active elements that gather capital, exploit
natural resources, establish social and political organizations,
produce goods and services, and carry out innovations and
other development activities.

Torrington, Hall and Taylor. Human Resource Management, p. 5.
Ibid. p. 6.
The Bahá’í-Inspired Model of Economic Sustainability

Financial resources are concerned with the ability of the
business to finance its chosen strategies for investment in
new products, distribution channels, and production capacity,
which place great strain on the business finances. Such a
strategy needs to be very carefully managed from a financial
perspective. Issues that would have financial implications for
budgets and cash flow or that are related to the essential plant
or machinery required to manufacture products, or processes
in need of finance, need to be considered. The financial needs
also depend on whether these are very specialised, or are
required for short or long term.

8.5 Cycle of production
Using four keys of spiritual principles as the foundation of
the model, and three types of resources, we are in a position
to construct the rest of the model. The failure of the market
could be either because of lack of resources or is associated
with problems in different phases of the cycle of production.
The understanding and application of spiritual principles
provide the much-needed balance between the monetary and
non-monetary aspects of the cycle of production.

8.5.1 Needs and wants
Needs and wants are the beginning of most economic
activities. What motivates people and can lead to a change of
behaviour are their needs and wants, which are determined by
the individual and the wider social factors. Once the
necessities are identified, then a behaviour pattern will
emerge to gratify them. When conflict arises between needs
and wants, one’s behaviour is affected. However, it should be
noted that needs and wants vary at different times in a
person’s life. Not all needs and wants are important for a
person at any one time. People perceive necessities and
Economics and the Bahá’í Faith

luxuries differently at different times in their lives. These also
depend on one’s personality, the level of income, the type of
employment, one’s social environment and one’s life-style.
Essential commodities such as food, clothes and housing, and
certain types of services such as health and education that
provide for physical, intellectual and spiritual health and
development, are basic human rights and most fundamental.
Economics is concerned with satisfying needs and wants, but
wants are created by society. By changing the value system
of society, ‘wants’ could be modified and the economic
system transformed. The aim of this phase of economic
sustainability is to attain the greatest satisfaction of needs and
wants within the limits of moderation.

There is no set formula for human needs and wants in the
Bahá’í Writings and hence for this model. Needs and wants
can be divided into essential and non-essential commodities.
Essential commodities such as food, clothes and housing, and
certain types of services such as health and education that
provide for physical, intellectual and spiritual health and
development are basic human rights and most fundamental.
One of the most basic human needs is food, which in a
number of cases is exploited by some food manufacturers
who may not be concerned with nourishing people, but with
the objective of increasing profit. Shortage of sufficient food
leads to malnutrition. At the same time, the use of over-
consumption of foodstuff leads to serious problems such as
addiction or obesity.

The success of an organization is in producing commodities
that are demanded by consciousness consumers, at the same
time contemplating on effective and efficient use of
resources. The implementation of spiritual principles of this
model inspires consumers and producers to attain the
The Bahá’í-Inspired Model of Economic Sustainability

objectives of sustainability. For ‘needs’, which are essential
for living, the principles of equity and cooperation are
helpful. For ‘wants’, which are non-essential, the principles
of moderation and consultation are useful. The primary
responsibility of producers is to establish a sustainable input-
output process. This indicates that the degree of success and
optimum level of sustainability depends on all stages of
production, including the extraction of raw materials,
conversion processes and the quality of the finished product,
and the supply chain.

A number of Bahá’í principles are incorporated in this model
to benefit consumers to make informed choices, including:
universal and compulsory education, harmony of science and
religion, removal of economic prejudices, oneness of the
human race, a consultative method of decision-making, and
considering moderation. Other factors influencing consumer
choice are discussed in chapter four. Contemplation upon
these factors can elevate the consciousness of individuals to a
higher level and help them become more considerate in using
the valuable resources available to them, and at the same time
use money more sensibly. Thus, the aim of this phase of
economic sustainability is to attain the greatest satisfaction of
needs and wants within the limits of moderation. In such an
environment, consumer sovereignty is controlled and utility
maximisation is adjusted through making the right choices.

8.5.2 Organizations
In the next phase, organizations with different scales of
capacity, and at different levels (local, national and
international, or private and public), are created, aiming to
satisfy consumers’ needs and wants. Organizations, to a great
extent, respond to consumer demand. At the same time, using
their own innovative ideas, with or without consideration of
Economics and the Bahá’í Faith

consumers’ actual needs and wants, they create incentives for
consumers to buy what is produced or invented. The
effectiveness of demand and supply depends on the
application of spiritual principles along with consumer
education and organizational behaviour. Organizational
values are generally associated with areas such as the
operation management, human resources, working
environment, the culture, the marketing, the financial aspect,
and the supply chain. One factor that has contributed to
unsustainability of the market is unlimited growth in the size
of organizations. Disproportionate expansion of the scale of
an organization may become a problem for the market, for
the environment, and even a disadvantage to the organization
itself. The proposition in this model is that the practice of
moderation would limit unlimited expansion of businesses,
hence allowing small and medium size businesses to survive.
Of course, some types of growth can be limitless and indeed
is commendable. For example, the model supports the growth
and development of arts, training and education, service to
humanity, philanthropic activities, charity and acquiring
morality. The reason for approving this type of growth and
creating competitiveness is because they are assisting to
improve human capability. Also, they are methods and
processes of serving humanity, and they are important factors
for economic development.

In this model, the important aspect of an organization is its
values. Organizational values are attached to areas such as
the operation management, human resource, working
environment, the culture, the marketing, the financial aspect,
and the supply chain. On the positive side organizations,
today, use social and ethical responsibility as a tool for
competitiveness and expansion. Rosser Reeves called to this
aspect of organizational activity as ‘unique selling point’.
The Bahá’í-Inspired Model of Economic Sustainability

This is a part of an organization with specific strength. Being
ethical or socially responsible can become the strength of an
organization. However, the critical point is if such activities
are genuine or it is done by force through influence of
pressure groups and the government.

Among organizations that are crucial for the market
development and sustainability are the banking system and
insurance companies. These profit driven organizations
disproportionately harm the poor and the lower income
group. The view here is that the banking system is able to
influence the market and maintain a balanced economy by
supporting small and medium size enterprise. Banks, as the
storage of the fund should provide necessary credit to lower
income group to start small businesses, such as ‘micro credit’
programme introduced by the Grameen bank in Bangladesh.
The micro credit programme has benefited millions of people
and in particular women and their families in the rural areas.
The economic empowerment of women can play a key role in
the development of an economy and be allowing a country to
become an active part of the global economic enterprise. The
view, therefore, is that the banks should focus on the social
function of money. The model recommends that the banking
system should mobilise savings, encourage investment, and
act as suppliers of credit and a catalyst to increase output
through capital formation. An important aspect of the
banking system to become socially responsible is that it
should engage in act of service to the community and
participates in various poverty alleviation programmes and
developmental activities. To facilitate this process of serving
the community, and for proper functioning of the market,
Bahá’u’lláh has allowed a just and moderate interest rate. He
said, ‘as a token of favour towards men We have prescribed that
interest on money should be treated like other business transactions
Economics and the Bahá’í Faith

that are current amongst men.’24 needs to be applied in financial
transactions. Such a policy creates opportunities where there
would be room for entry of small and medium size enterprise.
This helps economic growth to boost confidence in the
market, and encourages investments. However, the solution
to the banking crises is the restoration of trust and confidence
among various groups in the market.

8.5.3 Sustainable production
The production stage is a process of transforming resources
into valuable output. Two issues are significant when
discussing sustainable production. First, the model considers
the fundamental purpose as safeguarding the collective
interest. Relating this view to production, one can envisage a
world where the products can be shared and distributed more
evenly among its citizens. Second is the concept of unity
among participants of a market, which, along with four
fundamentals spiritual principles, are the operating principles
and practical requirements for well-being in the market. This
suggests the achievement of a dynamic coherence between
the spiritual and practical requirements of life. Therefore,
success and effectiveness of an organization is producing
commodities that are demanded by conscientious consumers
and at the same time contemplating on the effective and
efficient use of resources. This requires establishing a
sustainable input-output process. This indicates that
sustainability would depend on all stages of production,
including the extraction of raw materials, conversion
processes, the quality of the finished product, and the supply
chain. The quality of commodities not only depends on the
available resources, including human, financial and physical
resources, but also the quality of organizational leadership.

Bahá’u’lláh. Tablets, p.133.
The Bahá’í-Inspired Model of Economic Sustainability

The emphasis of the model in this stage is on the term
‘valuable’ commodities. This refers to those products that are
in line with human dignity. However, some of the profit
driven organizations intend to produce commodities that are
not sustainable. Such products are damaging to the
environment, and destructive to rare earth resources.
According to Bahá’í International Community:
The questions of what is natural and just will
need to be critically re-examined…The question
of human nature has an important place in the
discourse on sustainable consumption and
production as it prompts us to re-examine, at the
deepest levels, who we are and what our purpose
is in life.25

According to John Young and Aaron Sachs sustainability
requires ‘a shift from today’s throw-away culture of
convenience and planned obsolescence to an approach that
designs products to reduce material use and seeks value in
reusable goods.’26 To create demand and stimulate consumers
to purchase such products, misleading marketing in planned
and false advertisements is imposed on consumers, in
particular the more vulnerable ones. The model, therefore,
recommends restructuring of organizations by accepting
moral leadership while educating the consumer to determine
the nature and usefulness of a product.

The quality of commodities not only depends on the available
resources, including technology and skilled labour and the

Bahá'í International Community. Contribution to the 18th Session of the United
Nations Commission on Sustainable Development, New York, 3 May 2010.
John Youn, Aaron Sachs. ‘Creating a Sustainable Material Economy’, State of
the World, 1995, p. 77.
Economics and the Bahá’í Faith

quality of organizational leadership, but also on the attitude
of employees towards work. The model emphasises that
‘Work done in the spirit of service is the highest form of
worship.’ This will ensure that everyone performs work with
excellence in all stages of production from stage of research
and development to the finished product. The term excellence
signifies that products are: environmentally welcoming,
socially dynamic, economically profitable, and spiritually
befitting human dignity. Assuming that consumers are
conscientious and, producers are responsible, then such an
attitude towards work and the level of production moves the
market towards equilibrium. The alternative would be
impeding economic sustainability.

8.5.4 The market
The product produced by organizations then enters the
market. The model promotes sustainable trade as an effective
method for doing business. The benefits are numerous if the
markets are developed, organized, managed, and regulated
properly. With satisfactory arrangements and adequate
structures in place, the market can generate more cooperation
among its participants, with greater opportunity for those
vulnerable firms entering the market to trade their products in
a fair environment. The main economic implication of
globalization is that economic activities in different markets
around the world have become interrelated and
interdependent. Hence, an important aspect of the Bahá’í
inspired model of economic sustainability is the
interdependency and interconnectedness of the cycle of
production to the economic resources by means of spiritual
principles and with the aim of uniting humanity. The model
suggests several factors necessary for an effective functioning
and fair trade in the market. The guiding principles include:
removal or reduction of the middleman; a just and moderate
The Bahá’í-Inspired Model of Economic Sustainability

rate of interest to facilitate the growth of small businesses;
and a progressive income tax to make wealth and income
distribution more effective. Also, a profit-sharing scheme to
consider workers as partners rather than just wage earners.
Profit sharing may remove the damaging effect that the wage
system produces in the market, in particular where the wage
is below the market equilibrium wage level.

There are, however, different views as to which group is the
main cause of consumer society: consumers or producers?
Alan Durning, for example, sees the resolution of the
problem of consumer society as a cultural issue. He states
that ‘the challenge before humanity is to bring environmental
matters under cultural controls.’ 27 Allan Schnaiberg, on the
other hand, finds a different approach to this question.
Reflecting on whether the creation of the consumer society is
driven by consumers or by producers, he comes down
strongly on the latter one. According to him, the central fact
of a modern industrialised society is that, ‘consumption in the
aggregate must be kept high to maintain the economic
structure.’28 In his view: American products are designed to
accommodate, not the consumer, but the methods of
production and distribution and the profit maximisation and
market positioning of the producers. The producers have the
power to limit consumer sovereignty by creating and
directing a culture of wants. According to this view, the
solution to the problem of consumer society, therefore, must
be found on the production side. A market based on Bahá’í
teachings, however, suggests a number of laws and
prohibitions that encourage Bahá’ís, consumers and

Alan Durning. ‘Asking How Much Is Enough’, State of the World, New York,
1991, p. 167.
Allan Schnaiberg. ‘The Expansion of Consumption’, The Environment: From
Surplus to Scarcity, Oxford University Press, 1980, p. 167.
Economics and the Bahá’í Faith

producers, to use and allocate resources more effectively. For
example, banning the production and consumption of those
commodities that are harmful to Bahá’ís such as hard drugs
and gambling. These items expend a substantial amount of
valuable resources that may have alternative usage. Hence, in
this model of economic sustainability the responsibility of
creating a sustainable market is with both consumers and
producers.

8.5.5 Distributive justice
The next phase of the model is the recognition of the need for
distributive justice as an effective way for allocation of
resources, rather than the one currently used in the market
with its consequence of increasing the gap between the rich
and the poor. Fairness provides an opportunity for all to enjoy
the benefits that are created in the market. The key feature
here is to create a positive relationship between distributive
justice and human well-being. Though efficiency is
important, it is not the only economic goal of the market.
Economic efficiency and fairness should go hand in hand.
Thus, the challenge of sustainability is not only consumer
education in productivity and market efficiency, but also in
the effective distribution of the income and wealth that are
created. This model supports the progressive income tax
currently practiced in most markets as a method of balancing
extremes of wealth and poverty. This involves active
participation of government in advancing a more equitable
society, which in turn benefits the market. Government
intervention is needed to establish legislation for
redistribution of income and wealth, for wage determination
and the transfer of monetary resources from the rich to the
poor. However, the model suggests a combination of
legislation and voluntary contribution as methods of eco-
justice for the market.
The Bahá’í-Inspired Model of Economic Sustainability

The existing models such as ‘the free-market economy’ and
‘planned economy’ have adopted a different pattern of
regulating wealth distribution of income and wealth. In a free-
market economy, each person receives income in proportion
to his or her productive contribution to the economy. In a
planned economy, each person receive income according to
needs. The Bahá’í view directs for each person to receive
income in proportion to his or her productive contribution to
the economy as well as their needs. Thus, the distinguishing
factor separating the two systems of ‘planned’ and ‘free-
market economy’ is the judgement of government in the
distribution of resources among members of the society.

8.5.6 Sustainable consumption
The final phase of the cycle of production is sustainable
consumption. The relationship between consumption and
production is complex and varied, and has changed over time
and certainly will continue to do so in the future.
Consumption is a necessary aspect of human being, a practice
that has constituted an important part of human existence and
social life in all societies throughout human history. The
advancement in knowledge and technology, and the
globalization of affairs, has led to the speed of trade and,
hence to a substantial increase in level of output. Such an
increase in the level of commodities requires large markets to
disperse the products. The Bahá'í International Community
considers the transition to sustainable consumption and
production as part of a global enterprise which enables all
individuals to fulfil their dual purpose, namely to develop
their inherent potentialities and to contribute to the
betterment of the wider community. In the model of
economic sustainability, therefore, the main focus is on
sustainability of both production and consumption. The
Economics and the Bahá’í Faith

rationale in this phase is that the act of consumption should
be associated with using products more sensibly, and hence,
the cycle of production would repeat itself more safely and in
a sustainable way. Since the cycle of production is going to
be repeated, acceptable choices become essential for
purchasing commodities by those participating in the market.
This ensures that sustainable products are entering to the
market in the new cycle. Thus, careful planning is necessary
at all levels. The consumption expenditure is the largest part
in aggregate expenditure in a market. Any change in the
pattern of consumption will have important effects on the
aggregate demand and supply in the whole market. The
components of aggregate demand are factors such as
consumer spending, investment, government spending, and
international trade, including export and import. Human,
financial, and physical resources, on the other hand, will
affect aggregate supply in an entire market. Responsible and
educated consumers who are practicing moderation affect the
aggregate demand. Committed suppliers, who apply
trustworthiness and fairness in the working environment, on
the other hand, affect the aggregate supply. The application
of the spiritual principles of this model influence the effective
operation of aggregate demand and aggregate supply. To
have an impact on consumer choice, emphasis in this model
is on creating a culture of moderation and compassion. The
issues of consumerism, consumer society and unsustainable
life style could be remedied if participants of the market in
general and consumers in particular exercise moderation.

The Consumption expenditure is the largest part in aggregate
expenditure in a market. Any change in the pattern of
consumption will have important effects on the overall level
of demand and supply in a market. The model considers
factors such as income and wealth, interest rate, savings, fair
The Bahá’í-Inspired Model of Economic Sustainability

access to loan and credit, and price level as important
components of spending power. However, according to this
model, the spiritual principles have great effect in making the
right choices. Hence, the model considers both monetary and
non-monetary factors as important elements for achieving
sustainable consumption in the market.

This model supports the view that consumers’ choices and
preferences can have a great effect in the marketing of
commodities. It is the level of consumer education that would
have an effect on aggregate consumption. Consciousness
consumers are able to make right choices for utility
maximisation within a limit. Consumer behaviour needs to be
channelled either through moral acts, or through legislation.

8.6 Analysis of the model
The spiritual principles, although not sufficient by
themselves, are necessary for establishing sustainability.
Each of these spiritual principles must become so embedded
in the individuals’ lives, and in society, that applying them
would be a norm, a culture, and a way of life. Households in
particular, although small in size, can have a large-scale
effect on the market. For example, decisions made by a
family as to the type of food, the kind of clothes, or the
housing condition not only influence production, but also can
affect the environment. By being conscientious consumers
and producers, even about seemingly insignificant issues, one
can facilitate sustainability.

However, the model of economic sustainability may be
challenged on a number of areas. For example, the core
principle of unity can be challenged because currently there
are many obstacles for the transformation of consciousness,
such as doubts, misconceptions, prejudices, suspicions and
Economics and the Bahá’í Faith

narrow self-interest. Such challenges require the society to
‘change its attitudes before a solution to social problems can
be found.’29 Hence, based on the practicality of the concept of
‘the spirit of unity’ for a market, the model is more suitable
for smaller communities with specific features asked by the
model. In other words, the challenge for the Bahá’í
community is that Bahá’ís live in a world where not
everybody shares their moral and spiritual principles.
Bahá’ís, as part of larger society, face the challenges of
attaining a sustainable life-style where there exists an unfair
redistribution of wealth and income.

The analogy of family used in this model also requires further
consideration. The challenge is that the analogy of family
may be too simplistic for the kind of complex markets we are
witnessing. The critics of this model may not consider the
market as a family unit, as families are more concerned with
their own ‘flesh and blood’ rather than other people’s needs
and welfare. Therefore, as much as there may be elements of
sacrifice, compassion and cooperation within a family, these
are not necessarily reflected in the life of the community.
However, researchers consider the model of family as the
backbone of the society and as a small unit representing the
larger society. There also are a number of scholars who have
developed rational arguments for the idea that it is helpful for
families to have high interest in the welfare of self and others.
Burr, Marks and Day further observe that the principle of
family has several assertions. It asserts that when lifestyles
emphasis self so much that it interferes with interest and
concern for others, this decreases the probability that family
members will find successes in their family life. Also, when
the primary concerns are the welfare, goals, and concerns of

Universal House of Justice. Statement dated 27 April 1988.
The Bahá’í-Inspired Model of Economic Sustainability

others, and people do not focus on their own needs, this too is
harmful. The probability of successes is highest when people
focus primarily on the needs of others but also wisely attend
to their own needs and interests.30

The model considers consumer education necessary for
achieving sustainable consumption in the market, although it
is not sufficient in itself. There are other areas that need to be
carefully considered. For example, consumer education and
the free will for making choice become irrelevant if there is
monopoly power in the market, limiting consumer choices.
Consumer education becomes irrelevant if the objective is
how much to produce without attention to the underlying
reason for production. The question the market should
consider in the first instance is what to produce rather than
how much to produce, as sustainable consumption and
sustainable production are complementary. Both groups must
be mindful of the effects of their decisions and actions for the
present and future generations, and for the environment. The
Bahá’í Writings advise Bahá’ís to ‘Bring thyself to account
each day, ere thou art summoned to a reckoning.’ All
participants in the market need to check the consequences of
their actions. Therefore, being discerning consumers and
responsible producers can facilitate and ensure sustainability.
Considering the ‘why’ question principle of economics, the
key spiritual principles are beneficial and lead to
conscientious consumption and production. The realisation
that the material world reflects the spiritual world promotes
various components of goods and services that are befitting
human dignity. The Universal House of Justice addressing
Bahá’ís to make economic decisions that are in accordance
with lofty ideals, ‘If a new model of community life,

Burr, Marks, Day. Sacred Matters: religion and spirituality in families, p. 112.
Economics and the Bahá’í Faith

patterned on the teachings, is to emerge, must not the
company of the faithful demonstrate in their own lives the
rectitude of conduct that is one of its most distinguishing
features? Every choice a Bahá’í makes, as employee or
employer, producer or consumer, borrower or lender,
benefactor or beneficiary, leaves a trace, and the moral duty
to lead a coherent life demands that one’s economic decisions
be in accordance with lofty ideals, that the purity of one’s
aims be matched by the purity of one’s actions to fulfil those
aims.’31

Reliance on moral incentives has been an important element
in many models of ideal socio-politico-economic systems.
According to specialist in social policy, Peter Lambert
‘Contemporary Western social scientists frequently suggest,
however, that moral incentives could not be an effective
source of motivation for economic activities in large,
complex, politico-economic systems, at least in the long
run.’32 Based on this view, the judgement is that reliance on
income incentives is inevitable for any large, complex
system, which seeks to persuade a consistently high level of
effort from its members. Examples include the operation of
industries such as railways, water, and electricity, which
necessitates being large in scale or what is known as natural
monopolies. Thus, according to Lambert ‘one crucial task for
the analysis is to show how moral incentives, in a socio-
politico-economic system which relies heavily on the market,
could theoretically substitute for income incentives without
destroying the ability of the market to function.’33 Political
theorist, Joseph Carens argues that ‘The term “moral
incentives” may suggest a type of motivation which is

Universal House of Justice, statement of 1 March 2017.
Peter Lambert. The Distribution And Redistribution of Income, p. 15.
Ibid.
The Bahá’í-Inspired Model of Economic Sustainability

essentially altruistic. By contrast, income incentives in a
market system are often regarded as the archetype of
motivation through appeal to self-interest.’ 34 The Bahá’í
inspired model, however includes moral incentive and
material incentive as essential part of the market to function
effectively.

Also, the model is more suitable and sustainable in the long
run. The spiritual principles need to become a belief system,
a way of life, and a part of the culture. Creating a culture in
the market requires a long time. In the short run, given the
powerful role of demand characteristics that can occur in a
market, the ethical model of sustainability does not have
legitimate power to control and regulated the existing market.

Furthermore, the model suggests the need for a combination
of quantitative and qualitative factors to achieve
sustainability. However, the scales for social desirability and
more implicit measurements for ethical and spiritual
achievements are not created yet. For instance, in spite of the
important role of cooperation in the market, competition
plays an important role. Also, the argument can be presented
that the market does not support spiritual principles and
moral incentives because they are difficult to grasp and
cannot be positioned in mathematical diagrams, or it cannot
be measured, as people have to think beyond monetary gain.
However, my working definition of spirituality is not only
important for qualitative purpose, but it also provides
measurable meaning to most parts of an economy, and hence
would be valuable and appealing to social scientists including
economists. The definition contains some elements of
measurability. For example, the spiritual principles of

Joseph Carens. Equality, Moral Incentives, and the Market, p. 120.
Economics and the Bahá’í Faith

compassion, cooperation, consultation, moderation, justice
and fairness play vital role for the application of the ‘unifying
and relational factor’, and for the effective functioning of the
economy. These principles, although qualitative, can lead to
measurable outcomes. Moderation, for example, has
important implication in economics through resource
allocation. Moderation affects all aspects of the economy in
regards to poverty reduction, a limit to growth, waste
reduction, budgetary control, cost efficiency, and effective
income distribution, all of which are quantitative and
measurable. The outcome of these spiritual principles is the
effective allocation of resources, so vital for economists and
other fields in science. In this sense, spirituality leads to
improve the monetary performance, it measures and assesses
output, and it becomes the mathematics device of social
sciences. As john Maynard Keynes argues: ‘…economics is a
moral science…It deals with introspection and with values.’35
The Universal House of Justice refers to the practicality and
measurability of spiritual principles:
The essential merit of spiritual principle is that it not
only presents a perspective which harmonizes with
that which is immanent in human nature, it also
induces an attitude, a dynamic, a will, an aspiration,
which facilitate the discovery and implementation of
practical measures.36

The critics may argue that we need to develop better models,
which more accurately represent reality of our world. The
response will be that our world today is not found based on
the reality of humans. Poverty, aggressiveness, and all kinds
of injustices are not supposed to be the reality of human
beings. The reality of humans living together in a society
should be constructed on principles that harmonize the
John Maynard Keynes. The General Theory, part II, London: Macmillan, 1938.
Universal House of Justice. The Promise of World Peace, part II.
The Bahá’í-Inspired Model of Economic Sustainability

activities and relationship based on human consciousness by
compassion, cooperation, consultation, and moderation to
allow happiness and prosperity for all. The level of
consciousness and the deep spirit of service and
collabouration required transforming individual behaviours
and institutional forces in the direction of sustainability will
require a transformation of educational processes which
involves ‘profound changes in the individual as well as
‘systematic re-creation of social structures.’

Adjusted economic indicators such as the ‘Index of
Sustainable Economic Welfare’37 (ISEW) are now available
for assessing a country’s success in achieving sustainable
economic development. ISEW is intended to replace GDP.
Gross Domestic Product (GDP) is a measure of economic
growth and considers only money value of producing goods
and services in a specific period of time. Hence, it is
misleading indicator. Adjusted economic indicators are more
comprehensive. They are useful because they measure things
that raise the quality of life and deduct things that reduce the
quality of life such as: environmental damage; defensive
expenditures; income inequality; depreciation of natural
capital; and value of domestic labour. The fact that indicators
are known and sustainability problems are also known, then
there is a need for both consumers and producers to make
right choices to achieve sustainability. The proposition in this
model is that by implementing the spiritual principles of
cooperation, compassion, consultation, and moderation, in
the entire cycle of production, sustainability will be achieved
more smoothly. These adjusted indicators are useful because
The ISEW was originally developed in 1989 by Herman Daly and John Cobb.
According to Cobb and Daly’s calculations the external effects of production and
the inequity of income distribution are the main reasons for this development in
which an increase in production does not necessarily lead to an increase in
welfare.
Economics and the Bahá’í Faith

they are more comprehensive measures than for example
GDP. This helps governments to determine the best policies
to pursue to achieve sustainability in the field of economic,
social and environmental outcomes of growth to be explicitly
measured. For example, higher GDP, which results in
pollution and a loss of biodiversity, does not raise economic
well-being even though it raises economic activity unless the
government introduces a policy to internalize the negative
externality. However, adjusted economic indicators are not
without problems. The most significant one is regarding
difficulties of placing monetary values on for example costs
of environmental degradation.

8.7 Chapter conclusion
The development of this model with its suggested
components for the cycle of production shown in figure two
suggests a smooth process in the creation of a sustainable
market. It should, however, be noted that some of the
principles of this model are meant for the distant future. The
immediate plan, however, should be the education of
individuals or groups of individuals that directly or indirectly
influence the scale and effectiveness of the market. For
example, all professions in the market including: journalism,
advertising, insurances, banks, financers and investors must
have a clear, professional and ethical code of conduct that its
members are required to observe. It is now the time that the
system of free-market economy becomes controlled,
regulated and even restricted. It is a window of opportunity
for the governments, the banking system, the insurance
industry and Faith organizations to put the economy back into
working order by re-establishing a code of honour in the
market. The ideas of this model are available for those who
wish to construct, as Stiglitz puts ‘a more stable, prosperous,

The Bahá’í-Inspired Model of Economic Sustainability

and equitable economy.’38 This model, therefore, is a means
to an end rather than an end in itself. The limitation of the
model, however, does not mean that it is not effective for
creating a balanced market but it provides an opportunity for
others to pursue to improve it.

Joseph Stiglitz. Freefall, p. 274.
Economics and the Bahá’í Faith

Chapter 9: Concluding Remarks

This work attempted to ascertain the relationship between the
spirituality, morality and economic teachings of the Bahá’í
Faith. The proposition is, that despite the conventional and
contemporary economic thinking that economic problems
could be resolved through purely economic policies, the
current study emphasise the need for spirituality as part of the
solution.

The exploration of the Bahá’í sacred scriptures and the
research carried out by Bahá’í scholars indicated that the
Founders of this Faith did not construct a Bahá’í economic
system. As a result, throughout this book the assumption is
made that the Bahá’í Faith is a religion and not an economic
enterprise. Nevertheless, the central figures of the Bahá’í
Faith have provided a number of principles that can be used
as guidelines to help future economists to develop the
components of a just, universal and flexible economic
system. Therefore, in any Bahá’í discourse, researchers
should use the phrase ‘Bahá’í economics’ with much caution,
as it is not yet fully developed.

The investigation and exploration of the Bahá’í Writings and
the role of the Bahá’í Faith in economic behaviour for this
work was carried out with a number of prerequisites and
assumptions as follows: Religious beliefs are likely to
influence the actions and lifestyle of Bahá’ís; this was
explored in relation to individuals, the institutions and the
community. The contribution of the Bahá’í Faith to the
subject of economics is essentially indirect and is mainly

Concluding Remarks

directed to the spiritual solution of economic problems.
Economics is considered a means to achieve the end, which is
promoting unity of humankind. There is coherence between
material and spiritual aspects of life, which suggests that the
global economic condition would be more sustainable when
these two components are balanced. The Bahá’í teachings
should be seen ‘as an organic, logically coherent whole,’ 1
which suggests that Bahá’í teachings are complementary in
nature and any Bahá’í discourse should consider the entirety
of Bahá’í Writings rather than individual teachings in
isolation. Consideration of interdependency of the behaviour
of nations from every aspect: social, political, environmental,
economic, moral and spiritual, which indicates that nations
cannot be self-sufficient completely. The universality of
Bahá’í principles on economics helps to resolve the economic
issues, like all other major difficulties facing humanity today,
on a world-encompassing scale to safeguard the interests of
humanity as a whole. Spirituality is understood and
interpreted as ‘all-unifying agency,’ which is central standard
for an effective relationship, however, with different
methodology and approaches.

A growing number of economists, philosophers, writers and
experts now support the view that moral and spiritual
incentives should be part of modern scientific economics. It
is maintained that economics, as a social science, and religion
are not the same. In other words, they do not generate the
same outcome, or have the same effect on people, but the
effective partnership of the two entities fosters human well-
being. It was argued that religion and economics combined
are potent forces for resolving socio-politico-economic

Universal House of Justice. ‘Issues Related to Study Compilation’, Compiled by
the Research Department of the Universal House of Justice. Haifa: Bahá’í World
Centre Publication, 1992.
Economics and the Bahá’í Faith

problems. On one hand, the Bahá’í literatures advocate
gender equality to alleviate poverty and inequality, ending
discrimination, creating strong families, and exercising
moderation, compassion, honesty, and good character. On the
other hand, economic literatures and academic textbooks
emphasis the role of saving and capital formation, sound use
of money and banking, the specialisation and trade,
entrepreneurship, the role of government and legislation,
efficient use of resources, equilibrium in price system, and
promoting growth. Consequently, the two disciplines of
religion and economics together would be able to have
greater impact on resolving social, and economic issues.

The findings of this work indicate that although a number of
Bahá’í teachings are currently practised at various levels,
however, bringing a fundamental change to the life of
individuals and the wider society would not be an easy task.
To facilitate the process of change and make it more effective
and functional, there is a need for a fundamental change in
human attitudes towards management of life-style for both
poor and rich people including new models of community
life. Also, recommendations were made for better
understanding of the meaning of prosperity, the significance
of wealth, the meaning of happiness, the concept of work and
service, and how Faith organizations can contribute to the
development of communities. At this point of the
development of the Bahá’í community there is a need to
initiate a process of moral and spiritual education as a
necessary step for familiarising Bahá’ís with the
fundamentals and components of future economic system.
Hence, by identifying a number of distinctive Bahá’í
principles on economics, this work, hopefully, would be of
great assistance to the Bahá’í community.

Concluding Remarks

There are still many challenges that the future researchers
need to continue this venture. Shoghi Effendi has identified a
number of challenges which human society is facing:
The recrudescence religious intolerance, of racial
animosity, and of patriotic arrogance; the increasing
evidences of selfishness, of suspicion, of fear and of
fraud; the spread of terrorism, of lawlessness, of
drunkenness and of crime; the unquenchable thirst for,
and the feverish pursuit after, earthly vanities, riches
and pleasures; the weakening of family solidarity; the
laxity in parental control; the lapse into luxurious
indulgence; the irresponsible attitude towards
marriage and the consequent rising tide of divorce; the
degeneracy of art and music, the infection of
literature, and the corruption of the press.2

Shoghi Effendi considers these challenges as serious threats
to humanity, hence suggesting a ‘fundamental reconstruction
of human society.’3 The Universal House of Justice inspiring
Bahá’ís: ‘we look to you to foster communities whose ways
will give hope to the world.’4

‘Abdu’l-Bahá, recommended that the extremes of wealth and
poverty needs to be remedied. In 1912 in Paris, he delivered
the following talk:
We see amongst us men who are overburdened with
riches on the one hand, and on the other those
unfortunate ones who starve with nothing; those who
possess several stately palaces, and those who have
not where to lay their head. Some we find with
numerous courses of costly and dainty food; whilst
others can scarce find sufficient crusts to keep them
alive. Whilst some are clothed in velvets, furs and fine
linen, others have insufficient, poor and thin garments
with which to protect them from the cold. 5

Shoghi Effendi. World Order, pp. 187-188.
Ibid. p. 186.
Universal House of Justice. Ridván Message, 2012.
‘Abdu’l-Bahá, Paris Talks, p. 151.
Economics and the Bahá’í Faith

Hence, for ‘Abdu’l-Bahá ‘This condition of affairs is wrong,
and must be remedied.’6 ‘Abdu’l-Bahá asserts that there is a
need for ‘an equilibrium of interests’ 7 which requires ‘
readjustment of the social economy…to ensure the stability
of the world of humanity.’8 The Bahá’í Writings indicate that
the remedy to social and economic crisis consists of the
removal of the Old Order and reconstruction of the new
World Order. ‘Soon,’ Bahá’u’lláh’s own words proclaim,
‘will the present day Order be rolled up, and a new one be
spread out in its stead.’9 The new spirit infused into the whole
creation makes the new World Order possible. Furthermore,
Shoghi Effendi, in the following statement calls for a
fundamental reconstruction of the whole of human society
based on unity of humankind:
The principle of the Oneness of Mankind, the pivot
round which all the teachings of Bahá’u’lláh revolve,
is no mere outburst of ignorant emotionalism or an
expression of vague and pious hope. Its appeal is not
to be merely identified with a reawakening of the
spirit of brotherhood and goodwill among men, nor
does it aim solely at the fostering of harmonious
cooperation among individual peoples and nations. Its
implications are deeper, its claim greater than any
which the Prophets of old were allowed to advance.
Its message is applicable not only to the individual but
concerns itself primarily with the nature of those
essential relationships that must bind all the states and
nations as members of one human family. It does not
constitute merely the enunciation of an ideal but
stands inseparably associated with an institution
adequate to embody its truth, demonstrate its validity,
and perpetuate its influence. It implies an organic
change in the structure of present - day society, a
change such as the world has not yet experienced. It

Ibid. pp. 156-159.
Ibid. Promulgation, p. 132.
Ibid. p. 182.
Bahá’u’lláh. Gleanings, p. 7.
Concluding Remarks

constitutes a challenge, at once bold and universal, to
outworn shibboleths of national creeds - creeds that
have had their day and which must, in the ordinary
course of events as shaped and controlled by
Providence, give way to a new gospel, fundamentally
different from, and infinitely superior to, what the
world has already conceived. It calls for no less than
the reconstruction and the demilitarization of the
whole civilized world, a world organically unified in
all the essential aspects of its life, its political
machinery, its spiritual aspiration, its trade and
finance, its script and language, and yet infinite in the
diversity of the national characteristics of its federated
units.

It represents the consummation of human evolution -
an evolution that has had its earliest beginnings in the
birth of family life, its subsequent development in the
achievement of tribal solidarity, leading in turn to the
constitution of the city-state, and expanding later into
the institution of independent and sovereign nations.

The principle of the Oneness of Mankind, as
proclaimed by Bahá’u’lláh, carries with it no more
and no less than a solemn assertion that attainment to
this final stage in this stupendous evolution is not only
necessary but inevitable, that its realization is fast
approaching, and that nothing short of a power that is
born of God can succeed in establishing it.10

Although there are challenges, the Bahá’í community is in a
dynamic state of transformation with a culture of learning and
with confident facing challenges. This approach promotes the
positive transformation of individuals and families into a new
generation. However, it depends how this community adjust
itself with the challenges of the larger society they are living
in it. Therefore, within the Bahá’í community, much
importance is placed on strengthening the concept of family

Shoghi Effendi. World Order, pp. 42-43
Economics and the Bahá’í Faith

and its relationship with those outside of the family unit. A
better understanding of the significance of marriage and
family life helps pave the way. Bahá’í parents and the Bahá’í
community endeavour to teach moral values to children. As a
result, those values become an intrinsic part of the individual
and the life of the society. Thus, it becomes natural for a
Bahá’í to respect and care for fellow human beings.

My final thought and reflection are that although a number of
Bahá’í teachings on economics are working within this
community and to some extents have already influenced the
wider society, the Bahá’í Faith is not yet in a position to fully
implement its principles on a large scale. Currently there is
no Bahá’í state and the Bahá’í population is small and
scattered all over the world. Hence, it is too early to envisage
how Bahá’í economic principles will shape and function at a
larger scale in the future. The main priority at this time is the
application of moral and spiritual principles within the Bahá’í
community and to infuse these into the wider society. Bahá’ís
all around the world enthusiastically join and work closely
with any group or organization that promotes values such as
trustworthiness, truthfulness, justice, kindness, and service to
humanity. These core values enlighten any economic system,
now and in the future.

The increasing complexity of the debate in the fields of
economics and religion, however, requires scholarly attempts
to create a systematic framework. It is hoped that by
arranging and exploring the Bahá’í teachings on economics,
this work will contribute to the on-going discussions and
research in the Bahá’í community and the academic
institutions.

Concluding Remarks

Suggested microeconomic and macroeconomic teachings of
the Bahá’í Faith.

Microeconomic teachings of the Bahá’í Faith

At the individual level:
• Work as worship
• Farmers first
• No begging
• No gambling
• The Law of Inheritance
• Education and professional training
• Moderation
At the organizational level:
• Profit sharing
• No strike
• A consultative method of decision making
• Employee-employer relationship
• Wage differential
• Employee’s consideration

Macroeconomic teachings of the Bahá’í Faith
At the national level:
• The importance of agriculture
• Control of individual ownership
• Reducing the gap between the rich and the
poor
• Progressive income tax
• Welfare economics
• Supporting the minorities (human rights)
Economics and the Bahá’í Faith

• A justified interest rates
• Laws related to inheritance
• Equality of women and men
• Women empowerment
• Storage of food by local councils
• Universal and compulsory education and
training
• The role of government in controlling and
organising economic activities
At the international level:
• A world federal system
• A world tribunal
• A world inter-communication system
• A world metropolis
• A world language and script
• A universal system of currency
• A universal system of weight and measure
• Disarmament
• Proper distribution of the earth’s resources
• Removal of barriers to international trade
• Environmental consideration11

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Abbreviations
Gleanings = Gleanings from the Writings of Bahá’u’lláh
Tablets = Tablets of Bahá’u’lláh
Aqdas = The Kitáb-i-Aqdas
Foundation = Foundation of World Unity
Promulgation = Promulgation of Universal Peace
Selections = Selections from the Writings of ‘Abdu’l-Bahá
Some = Some Answered Questions
The Secret = The Secret of Divine Civilisation
Advent = Advent of Divine Justice
Directives = Directives from the Guardian
Promised = Promised Day is Come
World Order = World Order of Bahá’u’lláh

Economics and the Bahá’í Faith

About the author

Hooshmand Badee is an academic economist. He got his PhD
from the University of Leeds and York Saint John University
in the UK. His Doctorate research title is ‘The Bahá’í
teachings on economics and their implications for the Bahá’í
community and the wider society.’

He has published several books including The True
Foundation of All Economics, a compilation from the
Writings of the Bahá’í Faith on economics and related
subjects, The Spiritual Solution to Economic
Problems, which explains some of the direct and indirect
teachings of the Bahá’í Faith on economics, and the
Principles of Spiritual Economics, in e-book format. He has
delivered talks and presented papers on economics and
related subjects in numerous international academic
conferences. His idea of ‘Bahá’í inspired model of economic
sustainability has become attractive to academic institutions.

Hooshmand Badee worked as a lecturer of economics for
over twenty-five years. He was also one of the founders of
Carmel High School, a Bahá’í inspired school in St. Vincent
in West Indies where he served as its principal for five years.
He is currently a faculty member of Wilmette Institute in the
USA for an online academic course ‘Economics and the
Bahá’í Faith’, and an academic member of an open university
in Iran, the Bahá’í Institute for Higher Education (BIHE).

Inspired by the message of the Universal House of Justice in
1983, he got involved in Bahá’í social and economic
development projects in Bangladesh as well as later on in

About the Author

Saint Vincent and the Grenadines in the West Indies with the
aim of putting the grassroots population at the centre of
activities.

He married in 1975 with May Derakhshani and together
have three children and six grandchildren. He left Iran in
1975 and lived in Bangladesh (1975-1984), Canada (1984-
1992), the Island of Saint Vincent and the Grenadines (1992-
2001), and the United Kingdom (2001-present).