Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: Badi Shams, Economics of the Future Begins Today, New Delhi, India: Bahá'í Publishing Trust, 2016/2019, bahai-library.com.
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Economics of the Future
Begins Today

A Manual for Economics

Badi Shams
© National Spiritual Assembly of the Bahá’ís of India

First Indian Edition: October 2016

ISBN: 978-81-7896-129-3

Bahá’í Publishing Trust
F-3/6, Okhla Industrial Area, Phase-I,
New Delhi – 110 020, India

Printed at:
Dedication

Dedicated to all the poor and underprivileged
people of the world who have been ignored by
our economic system. Their suffering is our failure
to make a change.
Introduction

Contents
Introduction ............................................................... ix
A Brief History of Economics & Some
Economists ................................................................ 1
TYPES OF ECONOMIC SYSTEMS ................................................. 7
STUDY OF ECONOMIC WORKINGS ............................................ 8
ECONOMIC THEORIES ............................................................... 10
HISTORICAL TIMELINE ............................................................. 10
Study of the Bahá’í Writings on Economics ......... 15
DIVINE ECONOMY ...................................................................... 16
BAHÁ’Í ECONOMIC SYSTEM .................................................... 17
THE STATION OF MAN .............................................................. 18
MATERIAL CIVILIZATION AND SPIRITUAL CIVILIZATION .. 19
THE NATURE OF THE ECONOMIC PROBLEM .......................... 20
THE ECONOMIC COST OF WARFARE ....................................... 22
CO-OPERATION VS. COMPETITION .......................................... 23
CAPITALISM ............................................................................... 24
THE GOLDEN RULE ..................................................................... 25
WEALTH ...................................................................................... 27
MODERATION ............................................................................. 29
VOLUNTARY SHARING .............................................................. 29
EQUALITY ................................................................................... 30
WOMEN’S EQUAL RIGHTS ........................................................ 31
BENEVOLENCE ............................................................................ 32
JUSTICE ....................................................................................... 32
AGRICULTURE - THE FARMER .................................................. 33
WORK AND PROFESSION .......................................................... 34
WAGES ......................................................................................... 36
TAXATION .................................................................................. 37
HUQÚQU’LLÁH (RIGHT OF GOD) .............................................. 38
RATE OF INTEREST .................................................................... 39

v
Economics of the Future Begins Today

ECONOMIC RESOURCES ............................................................ 40
ECONOMIC BARRIERS ............................................................... 40
STRIKES ....................................................................................... 41
SCIENCE AND TECHNOLOGY .................................................... 46
THE POOR AND NEEDY .............................................................. 47
WORLD CURRENCY .................................................................... 48
WORLD COMMONWEALTH ...................................................... 49

Practical Economic Suggestions For
Everyday Use ........................................................... 53
Definition of Some Economic Terms ..................... 69
Compilation of the Writings on Economics ......... 99
APPLICATION OF ECONOMIC TEACHINGS TO MODERN
PROBLEMS ............................................................................. 100
BAHÁ’Í WORLD COMMONWEALTH ..................................... 101
BAHÁ’Í ECONOMIC SYSTEM .................................................. 105
DIVINE ECONOMY .................................................................... 107
ECONOMIC RESOURCES .......................................................... 108
TARIFFS AND OTHER ECONOMIC BARRIERS ....................... 109
ECONOMIC ADJUSTMENT ...................................................... 110
WORLD CURRENCY .................................................................. 111
ECONOMIC PROBLEMS ............................................................ 111
ROLE OF GOVERNMENTS IN ECONOMIC AFFAIRS ............... 114
MAN—NOT A MERE FACTOR IN PRODUCTION ................... 117
EQUALITY ................................................................................. 117
DIFFERENT DEGREES AND CAPACITIES OF MAN ................ 119
PROFESSIONS AND CRAFTS ................................................... 122
AGRICULTURE AND THE FARMER ......................................... 125
CAPITALIST AND CAPITALISM .............................................. 126
WORKMEN AND INDUSTRY .................................................... 127
WAGES ...................................................................................... 128
REPRESENTATIVES OF THE WAGE-EARNING CLASSES ...... 129
TRADE UNIONS ........................................................................ 130
RETIREMENT ............................................................................ 130
PENSIONS .................................................................................. 130
STRIKES ..................................................................................... 131
SOCIALIZATION ....................................................................... 136

vi
Contents
Introduction

UNEMPLOYMENT ..................................................................... 136
INDUSTRIAL SLAVERY ............................................................. 136
SCIENCE AND TECHNOLOGY .................................................. 136
USE OF TECHNICAL KNOWLEDGE ......................................... 137
WASTAGE ON WARS ............................................................... 139
STOREHOUSES AND TAXATION ............................................ 141
WEALTH .................................................................................... 149
MODERATION ........................................................................... 152
WELFARE .................................................................................. 152
THE POOR AND NEEDY ............................................................ 153
CHARITY AND ENDOWMENT ................................................. 157
TITHES ....................................................................................... 159
VOLUNTARY SHARING—GREATER THAN EQUALITY ......... 160
DIVINE CIVILIZATION .............................................................. 161
DETACHMENT .......................................................................... 163
JUSTICE ..................................................................................... 164
INHERITANCE ........................................................................... 166
HUQÚQU’LLÁH ......................................................................... 169
THE GREAT FINANCIAL DEPRESSION ................................... 174
COMPETITION .......................................................................... 174
THE WORLD’S EQUILIBRIUM ................................................. 175
Workshop ............................................................... 177
INTRODUCTION ........................................................................ 178
PART ONE .................................................................................. 181
PART TWO ................................................................................ 188
PART THREE .............................................................................. 195
CAPITALISM ......................................................................... 195
AGRICULTURE—THE FARMER ........................................... 195
WORK AND PROFESSION .................................................... 196
WAGES ................................................................................... 197
TAXATION ............................................................................ 198
RETIREMENTAND PENSION ............................................... 199
RATE OF INTEREST ............................................................... 200
ECONOMIC RESOURCES ....................................................... 201
ECONOMIC BARRIERS .......................................................... 202
WORLD CURRENCY .............................................................. 203
PART FOUR ............................................................................... 204
Brief Summary of The Bahá’í Faith ............................. 209

vii
Introduction

Introduction

The present economic system is sick and is dying. It cannot
meet the needs of humanity. The gap between rich and poor is
getting wider and wider, which has increased the suffering of the
masses. The solutions that can heal it have been ignored. It is
time to re-examine the fundamental assumptions that this system
was built on and replace them with humane, moral and spiritual
ones. We need to build an economic system fit to help mankind
to achieve its goal of an ever-advancing civilization, a world
where there is no room for economic injustice and people have
all the necessities of life so they can live peaceful and fulfilling
lives. A shift in thinking is needed. Based on the Bahá’í Teachings,
this book aims to provide some insight and suggestions for
taking steps to lay the foundation for a better economic future.
We have the solutions and the technology to build a new system;
all we need is the resolve and the will. Everyone has an inherent
power to contribute. The time for action is upon us. This is our
eleventh hour.
This manual is intended to be a service and its goal is to
equip the reader with a little knowledge about economics and
to make the subject understandable. The manual will a) briefly
study economics and its history, mentioning some of the
economists that have contributed to the development of the
economic systems, b) provide a study of the Bahá’i Writings on
the subject of economics and their relevance and importance,

ix
Economics of the Future Begins Today

c) suggest practical actions for everyday use which could become
the beginning of a foundation for the future economic system,
and d) define some economic- related terminology.
Included in this manual is my compilation of the Writings of
the central figures of the Faith related to economics. The Writings
have been organized by topic to make it an easy reference for
the reader. It is called “Economics of the Future”. Also a
workshop on Bahá’í Writings on economics has been added for
study purposes.
I have always thought that understanding the Bahá’i Writings
on the subject of economics is important and my intention for
some time has been to help individuals to access the Bahá’i
Writings on this subject and to arm them with a better
understanding. It started in the 1980’s when I compiled
“Economics of the Future” for my economics degree, which
provided a collection of the Writings in one book for ready
access. Later on in 1996 I was asked to put together material
on Bahá’i economics in a workshop style with questions at the
end of every section, with the intention of providing a tool for
individuals or groups to increase their knowledge and
understanding. And more recently, I was asked to give a talk,
explaining some of the Bahá’i Writings on economics in simpler
language. And that’s where the idea for a manual came into
being. Abdu’l-Bahá1 often talked about very complex subjects
but He made them simple and easy to understand and my
personal belief is that economics doesn’t have to be scary or
confusing, especially when it comes to action. The manual is
intended to be clear and straightforward in order to encourage
individuals to participate in economic actions and to remove
Son of Bahá’u’lláh (see Appendix)

x
Introduction

fears the reader may have about this challenging subject. It is
made for everyone, whether or not he or she is knowledgeable
about economics. Hopefully, the reader may find it useful and it
will empower him or her to act and realize what an amazing
power we have as individuals to transform society in every way,
including economic ways.
We do not have a Bahá’i Economic system as yet and
that system would not come into being until the process of
transforming society through the message of Bahá’u’lláh1 has
been firmly established. As we gain a greater appreciation of
the significance of Bahá’u’lláh’s Revelation through our study
and application of the guidance being given to us from the
Universal House of Justice,2 it becomes clear that our
economic lives are not separate from our spiritual lives. Our
spiritual values, when they are reflected in our daily behavior
change us personally and, in turn, change our economic
activities, which lead to a change in society. Human values
such as truthfulness, trustworthiness, and justice are the
bedrock for a foundation upon which the future economic
system can be established.
“Nevertheless, there are certainly practices a Bahá’i would
eschew, such as dishonesty in one’s transactions or the
economic exploitation of others. Faithful adherence to the
divine admonitions demands there be no contradiction
between one’s economic conduct and one’s beliefs as a
Bahá’i. By applying in one’s life those principles of the Faith

The Manifestation of God for this age and Founder of the Bahá’í Faith
(see Appendix)
The supreme administrative body for the Bahá’is of the world (see
Appendix)

xi
Economics of the Future Begins Today

that relate to fairness and equity, a single soul can uphold
a standard far above the low threshold by which the world
measures itself...”
-Ridvan Message 2012

We live in a very confusing time, particularly after the economic
market crash of 2008, which almost destroyed the whole economic
system and forced governments to take desperate measures to
save the system and avoid universal chaos. That was caused by
unchecked greed, which led to a destructiveness that only a lack
of morality can create. People are now more scared and uncertain
about their economic future and wonder what is going to happen,
not realizing how much power they have to change attitudes
regarding the current economic system. It is true that the economic
field can be very confusing; economists themselves are often very
confused. Even President Harry Truman is said to have joked that
he wanted to hire a one-handed economist because it’s customary
for economists to say - on the one hand we have this and on the
other hand we have that. We cannot judge the economists to be
right or wrong; they based their theories on their observations and
made logical assumptions based on those observations. Most
have done their best to improve the economic condition. Yet
confusion increases every day because they did not understand
the station and destiny of the most important factor in the economic
system, man. They did not understand that material and spiritual
civilization go hand in hand and that there needs to be harmony
between science and religion. Nor did they grasp the significance
of the oneness of humanity. They did not make room for humanity’s
spiritual goals and aspirations.
My hope is that this manual will enable you to gain a greater
understanding of economics and will empower you to act and

xii
Introduction

participate in the economic field with confidence and an underlying
belief that together we are learning how to lay the foundation for
global prosperity and the establishment of the world
commonwealth.
Please note that I have chosen to use the generic term
“man” in the handbook to refer to both man and woman, only
for the purpose of clarity.

For those readers who do not know about the Bahá’í Faith,
there is a summary of Its history and teachings, with
emphasis on the significant Individuals Who charted Its
course, in the appendix.

xiii
A Brief History of Economics
&
Some Economists

Economics of the Future Begins Today

The history of economics began in the Stone Age when one
hunter, tired of eating the same kill, exchanged his kill for
another hunter’s and, by doing so, started the barter economy.
Soon after came centuries of an agriculture economy in which
the means of exchange changed and “money” was introduced.
The means of exchange could be anything: coins, pieces of
gold or silver, bones, feathers and many other varieties of
items were used until the use of paper currency was
introduced. Agriculture economies were very simple and there
were not many activities. Nothing of significance changed
until the invention of the steam engine. This led to the
revolution of industries and mass production started which
brought the need for imports and exports to feed the ever
expanding economy. Roads and railways had to be
constructed. At the same time, a banking system was needed
to handle all these new economic activities. Thus began our
modern economic system.
Since then the situation has changed considerably.
Economists devoted their time to keep up with the changes
and helped us to make sense of the material side of life.
They made an impact and contributed to the improvement of
the economic system. We of course cannot study all of them,
so I have chosen a few and outlined their ideas. Our material
life has a great influence on our spiritual life, so it is imperative
that we understand economics and its true purpose. It is not
just about making money but rather creating a very useful
tool to assist us to pursue our spiritual destiny.
First let us start with the definition of economics. There are
so many different definitions, but maybe this one explains it
better.

A Brief History of Economics & Some Economists

Definition of Economics: A social science concerned chiefly
with description and analysis of the production, distribution,
and consumption of goods and services.
- Webster dictionary

In a nutshell economics covers almost all our material human
activities. It is so surprising to see how it covers so much of our
life. It would a good exercise to pick one of your activities and
see if it will turn up to be an economic activity.
Many think that terrorism, conflicts and other forms of
violence are due to differences in religion or ideologies. But if
we dig deeper we may find that the underlying factor in many
cases is a deep sense of resentment from the “have nots” toward
the “haves”. Poverty and powerlessness create resentment since
every human being feels entitled to a bare minimum means of
existence. With their deep resentments terrorists find a cause in
religions and ideologies to justify their actions.
Unfortunately money is a yardstick that we use to measure
poverty, wealth, failure and success. My wish is that as we
spiritually grow and expand our spiritual horizons, we will adopt
a spiritual yardstick to measure our lives. Money cannot and
should not be the only means of measuring our life’s
achievements.
The history of economics has been divided into many
categories for study purposes. Most economists regarded
economics as a branch of science and formulated many
mathematical formulas to create a more efficient economic system.
Man’s role was reduced to being one of the factors of production:
labour. Economic systems concerned themselves with providing
man with more material goods. There was no room for the
moral and spiritual aspects of his life.

Economics of the Future Begins Today

But there were a few who did see the cracks in their
assumptions and they raised the alarm. They have suggested
a Moral Economics. They believe that economic theory
does not address areas such as family, health, love, culture,
spirituality, environment and many others that make life
meaningful and rich. Economic policy should include not only
goods that can be exchanged for money but also values that
have no price tag on them.
Eugen Loebl wrote a book called “Humanomics” in which
he said:
“In my view . . . economics is responsible for our deepening
crisis. I am convinced that we will not be able to solve our
basic problems unless we build a science of economy which
enables us to navigate our ‘spaceship earth’ toward humane
ends; a ‘humanomics.’”
- Humanomics, p.1

“Conventional economics has become, despite its remarkable
degree of sophistication, not only a useless tool, but a
dangerous one. Its deceptive application has created a crisis
which threatens the very foundations of our civilization.”
- Humanomics, p.1

Alvin Toffler was another visionary who perceived the lack
of humanity in our economic system. He looked at economics
from a very different angle.
Toffler explained, “Society needs people who take care
of the elderly and who know how to be compassionate and
honest. Society needs people who work in hospitals. Society
needs all kinds of skills that are not just cognitive; they’re

A Brief History of Economics & Some Economists

emotional, they’re affectional. You can’t run the society on
data and computers alone.
- “Life Matters,” March 5, 1998

Toffler described human economic activities and the history of
economics in three waves:
a) The first wave or Agricultural wave
b) The second wave or Industrial wave
c) The third wave (Toffler wrote a book with the same
name)

· First Wave refers to society after the agricultural revolution
and after hunter-gatherers. “First Wave societies drew their
energy from ‘living batteries’ – human and animal
muscle-power – or from sun, wind, and water. Forests
were cut for cooking and heating. Waterwheels, some of
them using tidal power, turned millstones. Windmills creaked
in the fields. Animals pulled the plow. As late as the French
Revolution, it has been estimated, Europe drew energy
from an estimated 14 million horses and 24 million oxen.
All First Wave societies thus exploited energy sources that
were renewable. Nature could eventually replenish the
forests they cut, the wind that filled their sails, the rivers
that turned their paddle wheels. Even animals and people
were replaceable ‘energy slaves’.
- The Third Wave, p.25

· Second Wave refers to society in the Industrial Revolution
(the late 1600’s to the mid 1900’s). The main features of
Second Wave are the factory-type of education system,
the corporation and the nuclear family. Toffler writes: “The

Economics of the Future Begins Today

Second Wave Society is industrial and based on mass
production, mass distribution, mass consumption, mass
educat io n, mass media, mass recreation, mass
entertainment, and weapons of mass destruction. You
combine those things with standardization, centralization,
concentration, and synchronization, and you wind up with
a style of organization we call bureaucracy.”
- Wikipedia article on Alvin Toffler

“All Second Wave societies . . . began to draw their
energy from coal, gas, and oil – from irreplaceable fossil
fuels. This revolutionary shift, coming after Newcomen
invented a workable steam engine in 1712, meant that
for the first time a civilization was eating into nature’s
capital rather than merely living off the interest it
provided.”
- The Third Wave, p.25

· Third Wave refers to post-industrial society. Toffler
explained that since the 1950s, nations have been shifting
from Second Wave Society to a Third Wave Society,
based on knowledge-based action as the primary
resource. His description of a super-industrial society is
similar to concepts from other theorists (e.g. Information
Age, Global Village, Space Age, Technetronic Age,
Electronic Age, or Scientific-Technological Revolution),
which to some degree forecasted knowledge-based
production, demassification, diversity, and accelerated
change. “The Third Wave shows us . . . new potentials.
It argues that, in the very midst of destruction and decay,
we can now find striking evidences of birth and life. It

A Brief History of Economics & Some Economists

shows clearly and . . . indisputably, that - with
intelligence and a modicum of luck – the emergent
civilization can be made more sane, sensible, and
sustainable, more decent and more democratic than any
we have ever known.”
- The Third Wave, p.3

His idea of the third wave, in my opinion, is close to the
vision of Bahá’u’lláh’s World Commonwealth. He believed
in a very different but yet better future for mankind. In essence
he was talking about and preparing us for the coming of a
New World Order. He explained the characteristics of the
third wave and told us how and why the old industrial
principles and theories will not work at this time, the same
way agricultural principles did not work during the industrial
time. He believed that mankind has entered an era in which
we need a brand new system to fit the needs of man. So
maintaining the old economic system will not solve our ever
- increasing problems.

TYPES OF ECONOMIC SYSTEMS:
There are many economic systems since every country or
community has its own unique situation in terms of cultural,
political and economic resources and economic activities are
different. But generally we can categorize them into four
major systems.
a) Traditional economy:
A family or community-based economic system relying on
ritual and custom to make choices, for example, Amazon
tribes, Aborigines, or any substance Economy.

Economics of the Future Begins Today

b) Market economy:
An individual or consumer-based economic system relying on
consumption choices of the consumer, for example, any
capitalist country. (A pure market economy without government
interference is not in existence.)
c) Command economy:
An economy that is centrally controlled and the government
makes all the decisions, for example, Cuba or China (any
Communist country or dictatorship).
d) Mixed economy:
An economic system that is market-based but with some
governmental involvement, for example, any present
modern economy.

STUDY OF ECONOMIC WORKINGS:
Some study economics by their scope. Some study the
individual behavior of the consumer and make their
conclusions; some study the consumption of the whole
country or community. So we can study economics at the
small level or Micro or at a larger level or Macro.
a) Microeconomics
Microeconomics deals with: single market, consumer and
producer.

· Supply and demand in single markets

· Individual consumer patterns, for example, consumer
choice

· Individual labour markets, for example, wage determination

A Brief History of Economics & Some Economists

· External factors arising from consumption and production

b) Macroeconomics
Macro economics deals with: The whole market, the whole
economy, consumers and producers.

· Fiscal/monetary policy, for example, effect of interest rates
on the economy
· Reasons for unemployment and inflation

· Economic growth
· Globalization and international trade

· Why there are differences in economic growth and living
standards between countries

· Government borrowing
Economic decision making operates in our daily life, whether
we realize it or not. We live a world of infinite resources;
economists must decide how to use these limited inputs to satisfy
our never-ending list of wants and needs.
Economists analyze relationships between the resources –
labor and materials - and the consumption, distribution and
production of the resulting goods. Economists study how
decisions can be made in a business transaction between
individuals on a microeconomic level or decisions considering a
city, state or country on a macroeconomic level. A
microeconomist considers the impact of supply and demand
prices in a factory, for example, how taxes have altered that
factory’s costs over a period of time. On the other hand, a
macroeconomist studies the effect of changes on unemployment
and national income on the gross national product.

Economics of the Future Begins Today

Although both fields operate with different scopes,
macroeconomics and microeconomics share similar
methodologies. They also have in common an assumption of
self-interest which is the basis for modern economic theories.
Adam Smith was the first to use this term to explain the idea
that individuals act willfully to maximize their satisfaction,
given a limited time, resources, information and budgets. But
this assumption has to be explained. The self-interest has
monetary connotations, which means that there must be
something in it for the individual. But the reality is that this is
not always the case. For example, giving to charity or any
similar act, gives people no financial benefit. They do this out
of the goodness of their hearts without considering financial
gains. We cannot build an economic system based on the
assumption that man is always selfish and thinks of only
himself. This assumption is contrary to what religion,
philosophers and great poets have taught us.

ECONOMIC THEORIES:
It is hard to classify different theories but they fall mostly
under one of these classifications:
Classical theories: work done by a group of economists in
the eighteenth and nineteenth centuries. They developed
theories about the way markets and market economies work.
The study was primarily concerned with the dynamics of
economic growth.
Neo-Classical theories: an approach to economics that
relates supply and demand to an individual’s rationality and
his or her ability to maximize utility or profit. Neoclassical

A Brief History of Economics & Some Economists

economics also increased the use of mathematical equations
in the study of various aspects of the economy.
Keynesian theories: an economic theory of total spending
in the economy and its effects on output and inflation.
Keynesian economics was developed by the British economist
John Maynard Keynes during the 1930s in an attempt to
understand the Great Depression.
Monetarist theories: an economic concept which contends
that changes in the money supply are the most significant
determinants of the rate of economic growth and the behavior
of the business cycle.

HISTORICAL TIMELINE:
Economic thought has evolved over hundreds of years. The
following timeline of important economists and dates explains
how the field has developed.

• 200 BC onwards- Romans based much of their society on
the exploitation of slavery. Their economic systems became
heavily dependent on the widespread existence of slave
labour. Slaves laboured in the mines and in the farms. The
state’s public works were largely completed and maintained
by slaves.
• The Manorial System (850-1000 A.D.) was an economic
and social system of medieval Europe under which peasants’
land tenure and production were regulated, and local justice and
taxation were administered. The system was intimately related
to feudalism. The fundamental characteristic of the manorial
system was economic—the peasants held land from the lord of

Economics of the Future Begins Today

an estate in return for fixed dues in kind, money, and services.
The manorial system prevailed in most of Europe and as far
away as India and Japan.

• Adam Smith (1723-1790) is considered the father of
modern economics. His book, “Wealth of Nations”, includes
the term ‘invisible hand ‘to describe the self-regulation of
functioning markets and the idea that self-interest in free-market
economies leads to economic prosperity.

• Thomas Robert Malthus (1766-1843) who studied
populations, was one of the first economists to examine the
relationship between inflation and population growth. He is
known for his work on the relationship between populations
and food supply, as well as economic rent theory. He wrote
the book “An Essay on the Principle of Population”.

• Jeremy Bentham (1748-1832) is associated with the
doctrine of utilitarianism. Being a visionary, he was a staunch
advocator of universal suffrage and is regarded as the father
of welfare economics. He wrote an entertaining “Handbook
of Political Fallacies”.

• David Ricardo (1772 -1823) being inspired by Adam Smith’s
“Wealth of Nations”, proposed the labour theory of value,
which states that labour is the sole factor determining the price
of a commodity. This idea is opposite that of demand, the
foundation of capitalism. He wrote an Essay on the “Influence
of a Low Price of Corn on the Profits of Stock”.

• John Stuart Mill (1806-1873) wrote the book “Principles
of Political Economy”, based on the ideas of Smith and

A Brief History of Economics & Some Economists

Ricardo and it became the main economic text at that time. He
is given credit for the notion of a free market economy, and
advocated strongly for a democratic economy.

• Karl Marx (1818-1883) is famous for advocating
communism and socialism. He is considered by many as the
father of communism. He strongly denounced capitalism. He is
a highly influential economist in economic history. He believed
that in the evolution of society communism would be inevitable.
His major work is “Das Kapital” (“Capital”).

• Alfred Marshall (1842-1924) mainly st udied
microeconomics and he wrote “Principles of Economics”,
one of the most well-known economics textbooks ever written.
Marshall believed that economics was a science requiring less
philosophy and more mathematics.

• Thorstein Veblen (1857-1929) was unconventional in his
personal life as in his academic career and is known for his
book, “The Theory of the Leisure Class” and his approach
of ‘institutional economics’ which explored the effects of
poverty, religion, and political affiliation — on productivity.

• Joseph Schumpeter (1883-1950) is known for his idea of
‘creative destruction’, implying that the economy is a cycle of
productivity and collapse. He also laid the foundation for the
concept of entrepreneurship. He is best known for his
contributions to economic analysis – the theory of business cycles
and development.

• John Maynard Keynes (1883-1946) was the most
revolutionary economist of his time. He was against free market

Economics of the Future Begins Today

principles and felt that aggregate demand - not worker flexibility
- played the most important role in employment. He believed in
fiscal measures to correct recessions and depressions; a good
example of this is the bailouts issued during the 2008 recession.
He wrote “The Economic Consequences of the Peace”.

• Milton Friedman (1912-2006) advocated free markets, and
his philosophies were the basis of the fiscal conservative
movement. He advised President Richard Nixon and he served
as president of the American Economic Association in 1967. He
won the Nobel Memorial Prize in Economic Sciences.

• John Kenneth Galbraith (1908-2006) studied the part of
corporations in the United States economy and in his book,
“American Capitalism: The Concept of Countervailing
Power”, criticized the influence of corporations replacing
smaller firms. He is known for his three books, “American
Capitalism”, “The Affluent Society”, and “The New
Industrial State”.

• Robert Heilbroner (1919-2005) was a socialist and the
author of “The Worldly Philosophers”. He criticized the
study of economics and wanted a renewal of the field. The
author of some twenty books, but mainly known for his
book “The Worldly Philosophers: The Lives, Times and
Ideas of the Great Economic Thinkers”.

Study of the Bahá’í Writings on
Economics

Economics of the Future Begins Today

At the outset it has to be mentioned that, for the sake of
simplicity, we are studying these Bahá’í Writings on economics
briefly without going too deeply into their importance and
implications. Volumes can be written on each of these Writings
and each could be the subject of immense research. As time
goes by we will realize their importance and how they can
and will bring us towards a totally different economic system.
Future economists will write books on how these Sacred
Writings changed our spiritual, social and economic lives. So
please bear in mind that the simplicity of the language and
my feeble attempts to share my understanding of them does
not do them justice. There are many Writings that could be
mentioned here but I chose these on purpose because they
cover many areas related to economics.

DIVINE ECONOMY
What makes the “divine economy” different from all the economic
systems of the world is its approach to the source of the economic
problems and their solutions. In this way it differentiates itself
from all the past and present economic theories and thoughts.
“The secrets of the whole economic question are Divine in
nature, and are concerned with the world of the heart and
spirit. In the Bahá’í Teachings this is most completely
explained, and without the consideration of the Bahá’í
Teachings, it is impossible to bring about a better state.”
- ‘Abdu’l-Bahá, The Bahá’í World, Volume 1V, p.448

“... By the statement ‘the economic solution is Divine in
nature’ is meant that religion alone can, in the last resort,
bring in man’s nature such a fundamental change as to enable

Study of the Bahá’í Writings on Economics

him to adjust the economic relationships of society. It is only
in this way that man can control the economic forces that
threaten to disrupt the foundations of his existence, and thus
assert his mastery over the forces of nature.”
- From a letter written on behalf of Shoghi Effendi to an individual
believer, December 26, 1935, Lights of Guidance, p.551

These Writings clearly explain the difference between the
present economic system and the divine economy which will
characterize the future for mankind. The assumption that the
economists made in the past and are still making is that man
must maximize his satisfaction. That is, he wants the best for
himself and does not care for the interest or welfare of others.
Basically man is depicted as a selfish person and the economic
systems catered to this assumption. It is no surprise that it has
led us to so many crises. But the Bahá’í Writings explain that
the whole question of economics is divine or spiritual in nature
and that is a better foundation than selfishness or greediness.
With this approach, man has a divine destiny and is not ruled
just by man-made laws and regulations. It is fundamentally
different because the Bahá’í economic system is based on
man’s heart; it is founded solidly on the human spirit.

BAHÁ’Í ECONOMIC SYSTEM
“There are practically no technical teachings on economics
in the Cause, such as banking, the price system, and others.
The Cause is not an economic system, nor can its Founders
be considered as having been technical economists. The
contribution of the Faith to this subject is essentially indirect,
as it consists in the application of spiritual principles to our
present-day economic system. Bahá’u’lláh has given us a

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few basic principles which should guide future Bahá’í
economists in establishing such institutions which will adjust
the economic relationships of the world.”
- From a letter written on behalf of Shoghi Effendi to an
individual believer, January 25, 1936, Lights of Guidance, p.551

We do not have a Bahá’í economic system at this time because
we do not have the spiritual requirements for such a system,
a system which would be divine in nature. We do not have the
spiritual maturity to imagine such a system. But there will be
a world commonwealth and we know that future economists
in consultation with the Universal House of Justice will bring
this into being. We can only prepare for this system by
developing our spiritual capacity and contributing by our actions
towards laying a foundation for that system.

THE STATION OF MAN
“Lofty is the station of man, were he to hold fast to
righteousness and truth and to remain firm and steadfast in
the Cause... His is the loftiest station, and his influence
educateth the world of being.”
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.220

“If, on the contrary, the spiritual nature of the soul has
been so strengthened that it holds the material side in
subjection, then does man approach the Divine; his humanity
becomes so glorified that the virtues of the Celestial
Assembly are manifested in him; he radiates the Mercy of
God, he stimulates the spiritual progress of mankind, for he
becomes a lamp to show light on their path.”
- ‘Abdu’l-Bahá, Paris Talks, p.65-66

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God has told us that He created man in His image. Man’s
station is very high and he has a great spiritual destiny. But in
the world of economics this is not recognized. Man is a
labourer, a manager, or a consumer, and his contribution is
limited to that. The system does not recognize that his spiritual
aspirations need to be the goal for an economic system, a
system that enables him and provides him with tools so that he
can work towards his spiritual destiny and spiritual goals, to
become a spiritual being who has a human experience, rather
than a human being who has a spiritual experience.

MATERIAL CIVILIZATION AND SPIRITUAL
CIVILIZATION
“Material civilization has reached an advanced plane but
now there is need of spiritual civilization. Material civilization
alone will not satisfy; it cannot meet the conditions and
requirements of the present age; its benefits are limited to
the world of matter. There is no limitation to the spirit of
man, for spirit in itself is progressive, and if the divine
civilization be established, the spirit of man will advance.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.101

“As heretofore material civilization has been extended,
the divine civilization must now be promulgated. Until the
two agree, real happiness among mankind will be unknown.
By mere intellectual development and power of reason,
man cannot attain to his fullest degree - that is to say, by
means of intellect alone he cannot accomplish the progress
effected by religion.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.170

Economics of the Future Begins Today

The history of mankind has demonstrated that man hasn’t realized
that he has two natures – one is his material nature and the other
is his spiritual nature. History has demonstrated man’s
development in terms of inventions, scientific knowledge, a higher
standard of living and generally material progress. Man is satisfied
that he has made great improvements and he can calculate
yearly his gains. But the sad point is that his spiritual progress
has not kept up with his material progress. Man’s ignorance
about his nature, his spiritual nature, has made him basically
one-sided – all his energies are spent on material gain. He does
not know that he has a spiritual side and that his material progress
depends on his spiritual progress, because all decisions made,
if not made on a spiritual basis, will not be beneficial for his soul
and his being. The perfect harmony is that in which material
civilization and spiritual civilization go hand in hand. At present
there is a great imbalance between the two civilizations.

THE NATURE OF THE ECONOMIC PROBLEM
“Although the body politic is one family yet because of lack of
harmonious relations some members are comfortable and some
in direst misery, some members are satisfied and some are
hungry, some members are clothed in most costly garments
and some families are in need of food and shelter. Why? Because
this family lacks the necessary reciprocity and symmetry. This
household is not well arranged. This household is not living
under a perfect law. All the laws which are legislated do not
ensure happiness. They do not provide comfort.
- ‘Abdu’l-Bahá, Foundation of World Unity, p.38

“Economic plans of reconstruction have been carefully devised,
and meticulously executed. And yet crisis has succeeded crisis,

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and the rapidity with which a perilously unstable world is
declining has been correspondingly accelerated. A yawning
gulf threatens to involve in one common disaster both the
satisfied and dissatisfied nations, democracies and
dictatorships, capitalists and wage-earners, Europeans and
Asiatic, Jew and Gentile, white and coloured.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.190

Man’s inability to see that we as members of the human race are
family, his dependence on his intellect, and his disregard for the
moral/spiritual laws that must govern life, has led us to this state
of crisis. Man has failed to understand that the welfare of the
whole depends on his welfare and his welfare depends on the
welfare of the whole. This selfish tendency of every man for
himself has created the problems that we have at the moment. It
does not matter how many laws we make, as long as man’s lower
nature is not controlled, there will be chaos. What man needs is
to understand that other human beings are part of him. Humanity
can be compared to the human body. Just as the human body is
connected and what happens to one part of the body affects the
rest, so, too, we cannot ignore one part of humanity because it
affects the whole. There was a time that people did not think
beyond their own backyard. But with the development of technology
and the arrival of the age of information, our backyard has been
extended to the whole world and all of human kind. We cannot be
indifferent and ignore what is going on in other parts of the world
because directly or indirectly our lives are affected. An example
would be stock markets in different parts of the world. If the stock
market in China changes, the stock market in New York also changes.
So we have to recognize that we are all in it together and we need
to help each other in order to have a better spiritual and material life.

Economics of the Future Begins Today

THE ECONOMIC COST OF WARFARE
“Peace is the pretext, and night and day they are all straining
every nerve to pile up more weapons of war, and to pay for
this their wretched people must sacrifice most of whatever
they are able to earn by their sweat and toil. How many
thousands have given up their work in useful industries and
are labouring day and night to produce new and deadlier
weapons which would spill out the blood of the race more
copiously than before.
Each day they invent a new bomb or explosive and then
the governments must abandon their obsolete arms and
begin producing the new, since the old weapons cannot hold
their own against the new...”
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.61

“Observe that if such a happy situation be forthcoming, no
government would need continually to pile up the weapons of
war, nor feel itself obliged to produce ever new military weapons
with which to conquer the human race. A small force for the
purposes of internal security, the correction of criminal and
disorderly elements and the prevention of local disturbances,
would be required - no more. In this way the entire population
would, first of all, be relieved of the crushing burden of
expenditure currently imposed for military purposes, and
secondly, great numbers of people would cease to devote their
time to the continual devising of new weapons of destruction.”
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.65-66

We can readily calculate the allocation of a national budget for
military forces and weapons and, at the same time, calculate

Study of the Bahá’í Writings on Economics

the cost of eradicating malaria, providing clean drinking water
or educating one child. When you compare how much the
money used for warfare could benefit the sick and needy, it is
not difficult to understand how much we have wasted and
continue to waste and how harmful it is. But the statistics do
not tell the picture of the human lives that have been lost
unnecessarily and the human suffering experienced. This suffering
could have been avoided and could still be avoided. Imagine a
world in which there is only one military for the whole world
and one police force to ensure its security, so that costs are
reduced and monies channeled into humanitarian pursuits.

CO-OPERATION VS. COMPETITION
“In the world of nature we behold the living organisms in a
ceaseless struggle for existence. Everywhere we are confronted
by the evidences of the physical survival of the fittest. This
is the very source of error and misapprehension in the opinions
and the theories of man who fail to realize that the world of
nature is inherently defective in cause and outcome and that
the defects therein must be removed by education.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.400

“In nature there is the law of the survival of the fittest. Even
if man be not educated, then according to the natural institutes
this natural law will demand of man supremacy. The purpose
and object of schools, colleges and universities is to educate
man and thereby rescue and redeem him from the exigencies
and defects of nature and to awaken within him the capability
of controlling and appropriating nature’s bounties.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.353

Economics of the Future Begins Today

Man began his existence during the Stone Age and survival of
the fittest was the rule of the land. He had to compete with the
elements and hunt for food for his survival. But unfortunately
as man’s intellect developed and his economic circumstances
improved, he still continued to behave in the same manner.
Now the scenario has changed. Instead of hunting and fighting
for territory, the firms fight and compete. The big fish eats the
small fish and this is considered success. But it is time for the
fish to live together. We have to educate ourselves to get rid
of this remnant of Stone Age behavior which has no place in
a modern society. If we want to compete, it should be in the
spiritual realm; we should strive to be the most generous person,
to be the most kind. That is real competition.

CAPITALISM
There is a strong belief in the world that capitalism is a
solution to all economic problems. But we know that no
system is perfect, whether it be capitalism or communism, if
the foundation is not built on divine principles.
“There is nothing in the teachings against some kind of
capitalism; its present form, though, would require
adjustments to be made.”
- Shoghi Effendi, Directives from the Guardian, p.19

There is a perception that capitalism is based on freedom and
ideally is a perfect system. But the reality is, as the Bahá’í Writings
tell us, it is not divine and it is not founded on divine principles.
In its present form corruption, greed, and selfishness are manifest
and it has led to many economic disasters. Many who dislike a
communist system believe that capitalism is the solution. But this

Study of the Bahá’í Writings on Economics

is not true because no system is perfect if it is not built on divine
principles. So capitalism has many merits but in the present form
it is not going to be the future economic system of the world.

THE GOLDEN RULE
“...‘All economic problems may be solved by the application
of the Science of the Love of God’. That is to say: If the
Rule called golden ... were actually applied to the world’s
economic problems, which if not solved bid fair to destroy
us, and the love of God, the sort of love which makes a
home life happy, were used as a scientific measurement to
regulate our international and national affairs; to settle all
relations between labour and capital, between rich and poor,
to regulate all coinage and commerce, can there be any
doubt that the results would be far more conducive to human
welfare than our present policies have produced?”
- ‘Abdu’l-Bahá, Portals to Freedom, p.156

The cause of most of the problems in the world is a lack of
empathy in that people are unable to put themselves in the place
of others and can’t imagine, for example, how it feels to be
poor or how it feels to be jobless. When we don’t have empathy,
we become numb to the sufferings of others and don’t
understand the implications of our actions and words and their
consequences.
If the owner of a factory would understand the struggles of
the working class, what they experience and how they juggle to
manage their incomes and pay their bills, he would ensure that
they receive fare wages and the workers would know that their
employer understands their situation. In the same way, if the
workers or employees have empathy, they would understand

Economics of the Future Begins Today

what a difficult job it is to run a factory. Both the employer
and employee would be aware of each other’s struggles and
realize that decisions made are for the benefit of both. Then
we wouldn’t experience so many disruptions in economic
activities such as strikes and “work to rule”.
Below are some Writings from different religions on this subject.
After reading them, you may realize that different religions are in
agreement and derive their inspiration from the same Source.
“We are as much alive as we keep the Earth alive.”
- Chief Dan George

“One should treat all creatures in the world as one would
like to be treated.”
- Mahavira, Sutrakritanga (Jainism)

“I am a stranger to no one; and no one is a stranger to me.
Indeed, I am a friend to all.”
- Guru Granth Sahib, p.1299 (Sikhism)

“Regard your neighbor’s gain as your own gain and your
neighbor’s loss as your own loss.”
- T’ai Shang Kan Ying P’ien, 213-218 (Taoism)

“Not one of you truly believes until you wish for others
what you wish for yourself.”
- Muhammad, Hadith (Islam)

“Lay not on any soul a load which ye would not wish to be
laid upon you, and desire not for anyone the things ye would
not desire for yourself.”
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh,
p.128 (Bahá’í Faith)

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“Do not do unto others whatever is injurious to yourself.”
- Shayast-na-Shayast 13.29 (Zoroastrianism)

“Treat not others in ways that you yourself would find hurtful.”
- The Buddha, Udana-Varga 5.18 (Buddhism)

“This is the sum of duty: do not do to others what would
cause pain if done to you . . .
- Mahabharata 5:1517 (Hinduism)

“In everything, do to others as you would have them do to you.”
- Jesus, Matthew 7:12 (Christianity)

“One word which sums up the basis of all good conduct. . .
loving kindness. Do not do to others what you do not want
done to yourself.”
- Confucius, Analects 15.23

“What is hateful to you, do not do to your neighbor. This
is the whole Torah; all the rest is commentary.”
- Hillel, Talmud, Shabbath 31a (Judaism)

WEALTH
“O SON OF BEING!
Busy not thyself with this world, for with fire We test the
gold, and with gold We test Our servants.”
- Bahá’u’lláh, The Hidden Words, Arabic No.55

“ ... Wealth is most commendable, provided the entire
population is wealthy. If, however, a few have inordinate
riches while the rest are impoverished, and no fruit or

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benefit accrues from that wealth, then it is only a liability
to its possessor.”
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.24

“O SON OF MAN!
Thou dost wish for gold and I desire thy freedom from it.
Thou thinkest thyself rich in its possession, and I recognize
thy wealth in thy sanctity therefrom. By My life! This is my
knowledge, and that is thy fancy; how can My way accord
with thine?”
- Bahá’u’lláh, The Hidden Words, Arabic No.56

People tend to believe that wealth is good and always a
relief. The Bahá’í Teachings do not agree. There is nothing
against getting rich as long as we are aware of the dangers
that it can bring. There is no doubt that material possessions
and wealth can be wonderful tools but they can be extremely
harmful too. Studies have shown that quality of life does not
necessarily increase with an increase in wealth. In many cases,
it has been the reverse. Winning a lottery is not necessarily a
blessing if we don’t have the capacity to handle material
wealth. Also, often people who have won a lottery or gained
a fortune find themselves very isolated and lonely because
they cannot trust other people to befriend them just for
themselves; instead people want to be close to them in order
to gain some of their wealth. Many who gain wealth have
more problems than they did before and it often changes their
character. Money is a test and some pass, using it for charity
and good causes but some do not pass, spending it on harmful
and excessive behavior. Money does not guarantee happiness.
We have to possess the spiritual capacity to handle the test.

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MODERATION
“... In all matters moderation is desirable. If a thing is
carried to excess, it will prove a source of evil...”
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.69

“Fear ye God, and take heed not to outstrip the bounds of
moderation, and be numbered among the extravagant.”
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh, p.251

We live in an age of excess and everything seems to be out
of proportion. People don’t seem to understand the concept
of moderation in this materialistic society. The popular belief is
that more is better and bigger is better. Excess causes a lifestyle
of consumerism in which people spend money for things that
they really don’t need while their fellow human beings are
dying of starvation. If people spent some of their money on
the poor instead of engaging in excessive spending, it would
help to lessen the gap between the rich and poor. Materialism
feeds our egos and has therefore caused so much harm to our
souls. Moderation is in itself a blessing if one can practice it.

VOLUNTARY SHARING
“Man reacheth perfection through good deeds, voluntarily
performed, not through good deeds the doing of which was
forced upon him. And sharing is a personally chosen righteous
act: that is, the rich should extend assistance to the 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. For the harvest of force is turmoil and the
ruin of the social order. On the other hand voluntary sharing,

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the freely-chosen expending of one’s substance, leadeth to
society’s comfort and peace.”
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.115

The concept of sharing is quite foreign in modern-day societies
because there is a sense of entitlement – “I’ve earned this. I’ve
got it and it’s mine. Why should I share it?” Many systems have
been introduced, notably communism, which promoted
equality and sharing. But it was a sharing by force, rather than
voluntarily and it didn’t work. But when man reaches a higher
level of spirituality, he will realize the pleasure of sharing
voluntarily. We are only beginning to see glimpses of this in our
society. I believe in the future this will become common as people
discover the pleasure and satisfaction in sharing and being
generous, rather than hoarding something for only their use.

EQUALITY
“Social inequality is the inevitable outcome of the natural
inequality of man. Human beings are different in ability and
should, therefore, be different in their social and economic
standing. Extremes of wealth and poverty should, however,
be abolished.”
- Shoghi Effendi, Directives from the Guardian, p.20

“For the community needs financier, farmer, merchant and
labourer just as an army must be composed of commander,
officers and privates. All cannot be commanders; all cannot
be officers or privates. Each in his station in the social
fabric must be competent - each in his function according
to ability but with justness of opportunity for all.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.216

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Equality does not mean that everybody is paid the same amount
or that everyone does the same thing (as in communism)
because by creation we are not equal. Every person is unique
with his own talents. But extremes of wealth need to be
limited so that everyone is given the opportunity to live a
comfortable life. In society all can not be engineers, all can not
be farmers, all can not be army personnel, all cannot be
teachers. There are different roles for everyone and everyone
is equal in terms of opportunities, not necessarily salaries.

WOMEN’S EQUAL RIGHTS
“... there must be an equality of rights between men and
women. Women shall receive an equal privilege of education.
This will enable them to qualify and progress in all degrees
of occupation and accomplishment. For the world of humanity
possesses two wings: man and woman. If one wing remains
incapable and defective, it will restrict the power of the
other, and full flight will be impossible. Therefore, the
completeness and perfection of the human world is
dependent upon the equal development of these two wings.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.318

It is sad to observe that still mankind is flying with one wing
and great talents and human qualities have deprived the world.
In many societies in the world women are not even allowed to
work so that a section of society is not contributing to the
economy, the welfare, the happiness, and quality of life. A
whole society loses out in this scenario. Imagine when man
and woman are equal in rights and are able to work together
to create prosperity and happiness in the world.

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BENEVOLENCE
“ ... In the Teachings of Bahá’u’lláh benevolence (is enjoined)
and this is greater than equality. Equality is attained through
force, but benevolence is a voluntary act (or is a matter of
choice). Man’s perfection is achieved through good deeds
done voluntarily, not by good deeds done through compulsion,
and benevolence is a good deed performed voluntarily. That
means that the rich should be benevolent towards the
poor - that is, give to the poor, but by their own free will and
desire - not that the poor should compel the rich to do so.
For compulsion breeds discord, and disrupts the order in
human affairs. For benevolence, which is voluntary
benefaction, engenders peacefulness in the world of humanity,
and it brings illumination to the realm of man.”
- ‘Abdu’l-Bahá, World Order Magazine, January 1949

In recent years some multi-billionaires have begun donating most
of their money to charitable organizations. This is benevolence.
This is the sign of the new race of men, defined by man reaching
such a spiritual understanding that he finds pleasure and happiness
in giving away his earnings rather than hoarding them for himself.
This is the stage that mankind has to reach, wherein everyone
realizes that money is a tool, not the goal of his life, and that he
can use this tool to make a difference and to make life easier
for others. That realization is a sign of spiritual maturity.
Benevolence is not just for the rich; it is a sense of giving that
anyone can practice regardless of their material status.

JUSTICE
“We ask God to endow human souls with justice so that
they may be fair, and may strive to provide for the comfort

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of all, that each member of humanity may pass his life in
the utmost comfort and welfare. Then this material world
will become the very paradise of the Kingdom, this elemental
earth will be in a heavenly state and all the servants of God
will live in the utmost joy, happiness and gladness.”
- ‘Abdu’l-Bahá, Foundation of World Unity, p.43

“Among the results of the manifestation of spiritual forces
will be that the human world will adapt itself to a new
social form, the Justice of God will become manifest
throughout human affairs, and human equality will be
universally established.
The essence of the matter is divine justice will become
manifest in human conditions and affairs, and all mankind
will find comfort and enjoyment in life.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132

The kingdom of God on earth will be realized when injustice
has been eradicated. Everyone is at the moment fighting for
some kind of justice, either racial, political, economic or
sexual, and this is the beginning. It will be a long journey for
mankind to reach the point of understanding that justice is
essential for all aspects of life.

AGRICULTURE - THE FARMER
“… we must begin with the farmer, there will we lay a
foundation for system and order because the peasant class
and the agriculture class exceed other classes in the
importance of their service.”
- ‘Abdu’l-Bahá, Foundations of World Unity, p.39

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“The question of economics must commence with the farmer
and then be extended to the other classes, inasmuch as the
number of farmers is greater than all other classes, many
many times greater. Therefore it is fitting that the economic
problem be first solved with the farmer, for the farmer is
the first active agent in the body politic. In brief, from
among the wise men in every village a board should be
organized and the affairs of that village should be under the
control of that board.”
- ‘Abdu’l-Bahá, Extract from a Tablet to an individual believer,
October 4, 1912, translation corrected in the World Centre,
December 1985; cited in Lights of Guidance, p.547

The basis of the economic system of the future will be on a local
level and will start with the farmer. The role of the farmer is
extremely important because the actions of the food industry
at the present time are affecting the health and survival of
mankind. People are questioning the quality of the food we put
in our bodies. The methods of production of vegetables, meat,
grains etc, are questionable to say the least. The greed in this
industry and the short cuts taken in production have been linked
to a higher incidence of life-threatening diseases. New research
is pointing to the importance of organic food and herbs as a
cure for many sicknesses. If the future of medicine is in the
prevention of disease through nutrition, then farmers are vital not
only for providing us with food but also giving us health.

WORK AND PROFESSION
“ ... Every individual, no matter how handicapped and
limited he may be, is under the obligation of engaging in
some work or profession, for work, specially when performed

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in the spirit of service, is according to Bahá’u’lláh a form
of worship. It has not only a utilitarian purpose, but has a
value in itself, because it draws us nearer to God, and
enables us to better grasp His purpose for us in this world.
It is obvious, therefore, that the inheritance of wealth cannot
make anyone immune from daily work.”
- From a letter written on behalf of Shoghi Effendi to the
National Spiritual Assembly of the Bahá’ís of the United States
and Canada, March 22, 1937; cited in Lights of Guidance, p.624

“... Whatever the progress of the machinery may be, man
will have always to toil in order to earn his living. Effort is
an inseparable part of man’s life. It may take different forms
with the changing conditions of the world, but it will be
always present as a necessary element in our earthly
existence. Life is after all a struggle. Progress is attained
through struggle, and without such a struggle life ceases to
have a meaning; it becomes even extinct. The progress of
machinery has not made effort unnecessary. It has given it
a new form, a new outlet.”
- Shoghi Effendi, Letter written to an individual believer, dated
December 26, 1935, Lights of Guidance, p.551

“ ... Share your time with God. Spend half of the day in search
of livelihood, guaranteeing your material life and dignified
appearance, and dedicate the other half in the acquisition of
moral virtues and service at the threshold of God...”
- ‘Abdu’l-Bahá, Áhang-i-Badí’, volume 31, number 339, p.83.
(pilgrim’s note)

Everyone can make a contribution to society through their
work. It doesn’t have to be physical work but there is no

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room for idleness. There’s a satisfaction in working,
especially if you are doing work with a sense of service and
then it becomes our daily worship. And by engaging in work
or a profession, we are contributing to the progress of
society and an ever-advancing civilization. Acquiring virtues
is the goal and earning a livelihood is the means.

WAGES
“… The Master has definitely stated that wages should be
unequal, simply because that men are unequal in their ability,
and hence should receive wages that would correspond to
their varying capacities and resources. This view seems to
contradict the opinion of some modern economists. But the
friends should have full confidence in the words of the Master,
and should give preference to His statements over those
voiced by our so-called modern thinkers.”
- Shoghi Effendi, Lights of Guidance, p.551

“The workers could either be granted a wage that adequately
meets their daily needs, as well as a right to a share in the
revenues of the factory when they are injured, incapacitated,
or unable to work, or else a wage could be set that allows
the workers to both satisfy their daily needs and save a
little for times of weakness and incapacity.”
- ‘Abdu’l-Bahá, Some Answered Questions, revised edtion
(2014), p.317

“Now I want to tell you about the law of God. According
to the Divine law, employees should not be paid merely by
wages. Nay, rather they should be partners in every work.”
- ‘Abdu’l-Bahá, Bahá’u’lláh and New Era, p.160

Study of the Bahá’í Writings on Economics

As we have discussed previously, absolute equality of wages
is impossible because every man has different capacities and
talents. But everyone has to be paid enough to live a comfortable
life, one that is acceptable from all points of view so that a
workman feels that he has been appreciated for his work. His
wages should be enough to cover his expenses, provide for
the education of his children, and to enable him to accumulate
some savings. That is fair wages. Also, if workers are paid a
portion of the profit of a factory or firm, they will have a sense
of ownership and they will work harder because they
understand the benefits. The owners will need to supervise
less because they know that the workers are partners in the
business and they can relax and have peace of mind.

TAXATION
“We see you adding every year unto your expenditures and
laying the burden thereof on the people whom ye rule; this
verily is naught but grievous injustice. Fear the sighs and
tears of this Wronged One, and burden not your peoples
beyond that which they can endure.”
- Bahá’u’lláh, The World Order of Bahá’u’lláh, p.40

“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, man’s
capacity for production 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 equalize or adjust.

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Therefore taxation will be proportionate to capacity and
production, and there will be no poor in the community.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.217

Taxation is one of the fundamental principles of any economic
system. ‘Abdu’l-Bahá has proposed graduated taxes which means
that the more one makes, the more taxes he pays. Taxes have to
be fair and they are levied only after someone has paid all of his
expenses and has money left over. This method doesn’t
compromise with the quality of life of the individual and monies
collected from the taxes are spent on the poor and underprivileged,
reducing the number of those who are in need in the community.

HUQÚQU’LLÁH (RIGHT OF GOD)
“The minimum amount subject to Huqúqu’lláh is reached
when one’s possessions are worth the number of Vahid (19);
that is, whenever one owneth 19 mithqals of gold, or
acquireth possessions attaining this value, after having
deducted therefrom the yearly expenses, the Huqúq
becometh applicable and its payment is obligatory.”
- Bahá’u’lláh, The Compilation of Compilations, Vol. 1, p.493;
Huqúqu’lláh - The Right of God, No.44

In addition to taxation, Bahá’u’lláh has devised another means
to narrow the gap between the rich and the poor. It is the
Right of God which is given voluntarily when an individual
earns more than all his needs. At that point he gives a voluntary
set percentage of his assets. It is important to note that taxes
collected, added to money given to charity, as well as giving
to the Bahá’í fund with money given as the Right of God can
really bridge the gap between the two extremes.

Study of the Bahá’í Writings on Economics

RATE OF INTEREST
“Therefore as a token of favor towards men We have
prescribed that interest on money should be treated like
other business transactions that are current amongst men.
Thus, now that this lucid commandment hath descended
from the heaven of the Will of God, it is lawful and proper
to charge interest on money, that the people of the world
may, in a spirit of amity and fellowship and with joy and
gladness, devotedly engage themselves in magnifying the
Name of Him Who is the Well-Beloved of all mankind. Verily,
He ordaineth according to His Own choosing. He hath now
made interest on money lawful, even as He had made it
unlawful in the past.”
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.133-134

In this quotation “the past” refers to Islam in which interest
was forbidden. It is very difficult to run a banking system
without interest. But in many societies, the rate of interest is
extremely high, on credit cards and student loans, for example.
A high interest on a student loan is unfair because students
charged with this interest do not have jobs to pay the loan or
the interest and need to keep paying it for many years once
they enter the workforce. That puts a heavy burden on the
economic life of the individual which, in turn, diminishes his
quality of life. Bahá’u’lláh emphasized the concept of a good
loan, meaning that the rate of interest had to be such that it did
not burden the borrower and that it benefited everyone. The
person or firm lending the money gets an adequate amount of
interest and the person borrowing is happy because he can
afford to pay it. A good loan is basically a rate of interest that
is fair and reasonable, using the principle of moderation.

Economics of the Future Begins Today

ECONOMIC RESOURCES
“... The economic resources of the world will be organised,
its sources of raw materials will be tapped and fully utilized,
its markets will be coordinated and developed, and the
distribution of its products will be equitably regulated.
... 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...”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.204

The economic resources of the world belong to every human being
on this planet. It does not matter where the oil fields or the uranium
mines are located. Every human being is entitled to them. Once
humanity has reached this spiritual understanding, there will be a
better utilization of resources. They will be distributed in a fair
and just way for the betterment of mankind and the advancement
of science and technology, rather than making them the means
of destruction such as the atom bomb and nuclear weapons.

ECONOMIC BARRIERS
“That a narrow and brutal nationalism, which the postwar
theory of self-determination has served to reinforce, has

Study of the Bahá’í Writings on Economics

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, is a fact
which few would venture to dispute.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.35

“A world community in which all economic barriers will
have been ... demolished ...”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.41

Every economic barrier created by narrow-minded
nationalism is a hindrance toward achieving the oneness of
mankind. When economic barriers such as tariffs, and
import-export taxes are removed, and the employment of
different currencies and weights and measures around the
world unified, we will move closer to a world commonwealth,
a system for all nations.

STRIKES
“You have asked about strikes. Great difficulties have arisen
and will continue to arise from this issue. The origin of
these difficulties is twofold: 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 to address both.
Now, the root cause of these difficulties lies in the
law of nature that governs present-day civilization, for it
results in a handful of people accumulating vast fortunes
that far exceed their needs, while the greater number
remain naked, destitute, and helpless. This is at once
contrary to justice, to humanity, and to fairness; it is the

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very height of inequity and runs counter to the good-
pleasure of the All-Merciful.
This disparity is confined to the human race: Among
other creatures, that is, among the animals, a certain kind
of justice and equality prevails. Thus there is equality within
a shepherd’s flock, or within a herd of deer in the wilderness,
or among the songbirds that dwell in the mountains, plains,
and orchards. The animals of every species enjoy a measure
of equality and do not differ greatly from one another in
their means of existence, and thus they live in perfect peace
and joy.
It is quite otherwise with the human race, where the
greatest oppression and injustice are to be found. Thus you
can observe, on the one hand, a single person who has
amassed a fortune, made an entire country his personal
dominion, acquired immense wealth, and secured an
unceasing flow of gains and profits, and, on the other, a
hundred thousand helpless souls—weak, powerless, and
wanting even a mouthful of bread. There is neither equality
here nor benevolence. Observe how, as a result, general
peace and happiness have become so wanting, and the
welfare of humanity so undermined, that the lives of a vast
multitude have been rendered fruitless! For all the wealth,
power, commerce, and industry are concentrated in the hands
of a few individuals, while all others toil under the burden
of endless hardships and difficulties, are bereft of advantages
and benefits, and remain deprived of comfort and peace.
One must therefore enact such laws and regulations as will
moderate the excessive fortunes of the few and meet the
basic needs of the myriad millions of the poor, that a degree
of moderation may be achieved.

Study of the Bahá’í Writings on Economics

However, absolute equality is just as untenable, for
complete equality in wealth, power, commerce, agriculture,
and industry would result in chaos and disorder, disrupt
livelihoods, provoke universal discontent, and undermine
the orderly conduct of the affairs of the community. For
unjustified equality is also fraught with peril. It is preferable,
then, that some measure of moderation be achieved, and by
moderation is meant the enactment of such laws and
regulations as would prevent the unwarranted concentration
of wealth in the hands of the few and satisfy the essential
needs of the many. For instance, the factory owners reap a
fortune every day, but the wage the poor workers are paid
cannot even meet their daily needs: This is most unfair, and
assuredly no just man can accept it. Therefore, 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 workers equitably share in some other way
in the profits with the owners. For the capital and the
management come from the latter and the toil and labour
from the former. The workers could either be granted a
wage that adequately meets their daily needs, as well as a
right to a share in the revenues of the factory when they are
injured, incapacitated, or unable to work, or else a wage
could be set that allows the workers to both satisfy their
daily needs and save a little for times of weakness and
incapacity.
If matters were so arranged, neither would the factory
owners amass each day a fortune which is absolutely of no
use to them—for should one’s fortune increase beyond
measure, one would come under a most heavy burden,

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become subject to exceeding hardships and troubles, and
find the administration of such an excessive fortune to be
most difficult and to exhaust one’s natural powers—nor
would the workers endure such toil and hardship as to
become incapacitated and to fall victim, at the end of their
lives, to the direst need.
It is therefore clearly established that the appropriation
of excessive wealth by a few individuals, notwithstanding
the needs of the masses, is unfair and unjust, and that,
conversely, absolute equality would also disrupt the
existence, welfare, comfort, peace, and orderly life of the
human race. Such being the case, the best course is
therefore to seek moderation, which is for the wealthy to
recognize the advantages of moderation in the acquisition
of profits and to show regard for the welfare of the poor
and the needy, that is, to fix a daily wage for the workers
and also to allot them a share of the total profits of the
factory.
In brief, insofar as the mutual rights of the factory
owners and the workers are concerned, laws must be
enacted that would enable the former to make reasonable
profits and the latter to be provided with their present
necessities and their future needs, so that if they become
incapacitated, grow old, or die and leave behind small
children, they or their children will not be overcome by dire
poverty but will receive a modest pension from the revenues
of the factory itself.
For their part, the workers should not make excessive
demands, be recalcitrant, ask for more than they deserve,
or go on strike. They should obey and comply and make no
demands for exorbitant wages. Rather, the mutual and

Study of the Bahá’í Writings on Economics

equitable rights of both parties should be officially fixed
and established according to the laws of justice and
compassion, and any party that violates them should be
condemned after a fair hearing and be subject to a definitive
verdict enforced by the executive branch, so that all affairs
may be appropriately ordered and all problems adequately
resolved.
The intervention of the government and the courts in
the problems arising between owners and workers is fully
warranted, since these are not such particular matters as
are ordinary transactions between two individuals, which
do not concern the public and in which the government
should have no right to interfere. For problems between
owners and workers, though they may appear to be a private
matter, are detrimental to the common good, since the
commercial, industrial, and agricultural affairs, and even
the general business of the nation, are all intimately linked
together: An impairment to one is a loss to all. And since
the problems between owners and workers are detrimental
to the common good, the government and the courts have
therefore the right to intervene.
Even in the case of differences that arise between two
individuals with regard to particular rights, a third party,
namely the government, is needed to resolve the dispute.
How, then, can the problem of strikes, which entirely disrupt
the country—whether they arise from the inordinate demands
of the workers or the excessive greed of the factory
owners—remain neglected?
Gracious God! How can one see one’s fellow men
hungry, destitute, and deprived, and yet live in peace and
comfort in one’s splendid mansion? How can one see

Economics of the Future Begins Today

others in the greatest need and yet take delight in one’s
fortune? That is why it has been decreed in the divine
religions that the wealthy should offer up each year a
portion of their wealth for the sustenance of the poor
and the assistance of the needy. This is one of the
foundations of the religion of God and is an injunction
binding upon all. And since in this regard one is not
outwardly compelled or obliged by the government, but
rather aids the poor at the prompting of one’s own heart
and in a spirit of joy and radiance, such a deed is most
commendable, approved, and pleasing.
This is the meaning of the righteous deeds mentioned in
the heavenly Books and Scriptures.”
- ‘Abdu’l-Bahá, Some Answered Questions, p.315-320

“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.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.238

This topic is explained in such detail by ‘Abdu’l-Bahá that any
commentary is unnecessary. Beside the economic loss due to
strikes, there is a spiritual price that it causes. So much disunity
it creates, so much hatred, so much mistrust. Those bad feelings
do far more damage in a society than the economic ones.

SCIENCE AND TECHNOLOGY
“Science cannot create amity and fellowship in human
hearts.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.171

Study of the Bahá’í Writings on Economics

“The development and progress of a nation is according
to the measure and degree of that nation’s scientific
attainments. Through this means its greatness is continually
increased, and day by day the welfare and prosperity of its
people are assured.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.49

“A scientific man is a true index and representative of
humanity, for through processes of inductive reasoning and
research he is informed of all that appertains to humanity, its
status, conditions and happenings. He studies the human body
politic, understands social problems and weaves the web and
texture of civilization. In fact, science may be likened to a
mirror wherein the infinite forms and images of existing things
are revealed and reflected. It is the very foundation of all
individual and national development. Without this basis of
investigation, development is impossible.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.50

One of the fundamental principles of the Bahá’í Faith is the
harmony between science and religion. Science is a very
important tool for creating unity. How can mankind achieve
unity in the world without communication devices such as
internet and the telephone? They have an important role but
they are also not the masters of the situation. They are
tools that, used properly, will contribute to the achievement
of world unity. But we also need religion. Science cannot
prove the existence of religion as yet but it doesn’t mean
that it is contrary to religion. As science and technology
develop, they can prove the benefits of religion rather than
overlooking its worth.

Economics of the Future Begins Today

THE POOR AND NEEDY
“Know ye that the poor are the trust of God in your midst.
Watch that ye betray not His trust, that ye deal not unjustly
with them and that ye walk not in the ways of the treacherous.
Ye will most certainly be called upon to answer for His trust
on the day when the Balance of Justice shall be set, the day
when unto every one shall be rendered his due, when the
doings of all men, be they rich or poor, shall be weighed.”
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh, p.251

“O SON OF MAN!
Bestow My wealth upon My poor, that in heaven thou mayest
draw from stores of unfading splendor and treasures of
imperishable glory. But by My life! To offer up thy soul is a
more glorious thing couldst thou but see with Mine eye.”
- Bahá’u’lláh, The Hidden Words, Arabic No.57

“O CHILDREN OF DUST!
Tell the rich of the midnight sighing of the poor, lest
heedlessness lead them into the path of destruction, and
deprive them of the Tree of Wealth. To give and to be
generous are attributes of Mine; well is it with him that
adorneth himself with My virtues.”
- Bahá’u’lláh, The Hidden Words, Persian No.49

“O people of wealth and riches! If you see a poor man
suffering from any calamity, do not run away from him but
sit with him and ask him about the things heaped upon him
from the seas of determination and predestination.”
- ‘Abdu’l-Bahá, The Bahá’í World, Vol. IV, p.453

Study of the Bahá’í Writings on Economics

As we become more spiritually aware, we realize that we
have a very important responsibility and duty to look after
the poor and needy, to make sure that they are cared for and
live happily. This is a God-given duty. They have been
entrusted to us and by caring for them we take a step towards
the unity of mankind and a society in which there are no
poor.

WORLD CURRENCY
“... a uniform and universal system of currency, of weights
and measures, will simplify and facilitate intercourse and
understanding among the nations and races of mankind ...”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

In order to achieve the oneness of mankind, a uniform and
universal currency and means of weights and measures is
necessary. Those who have travelled understand the difficulty
of going from one country to another and having to exchange
currencies and figure out different weights and measures.
Once this uniformity is achieved, travelling to different
countries will be like travelling from one city to another in
one’s own country. So much time and energy will be saved
in a world with one currency and one method of weights and
measures. In Europe some of the countries adopted one
currency (Euro) and although it has had its problems, it
definitely is a step in the right direction.

WORLD COMMONWEALTH
“From every standpoint the world of humanity is
undergoing a reformation ... scientific ideas and theories

Economics of the Future Begins Today

are developing and advancing to meet a new range of
phenomena; invention and discovery are penetrating
hitherto unknown fields, revealing new wonders and hidden
secrets of the material universe; industries have vastly
wider scope and production; everywhere the world of
mankind is in the throes of evolutionary activity indicating
the passing of the old conditions and advent of the new
age of reformation.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.439

“The world’s equilibrium hath been upset through the
vibrating influence of this most great, this new World Order.
Mankind’s ordered life hath been revolutionized through the
agency of this unique, this wondrous System - the like of
which mortal eyes have never witnessed.”
- Bahá’u’lláh, The Kitáb-i-Aqdás, p.85

“It is the superstructure of that self-same Order, attaining
its full stature through the emergence of the Bahá’í World
Commonwealth - the Kingdom of God on earth - which the
Golden Age of that same Dispensation must, in the fullness
of time, ultimately witness.”
- Shoghi Effendi, God Passes By, p.26

“ ... the precautionary and defensive measures to be devised,
coordinated, and carried out to counteract the full force of
the inescapable attacks which the organized efforts of
ecclesiastical organizations of various denominations will
progressively launch and relentlessly pursue; and, last but
not least, the multitudinous issues that must be faced, the
obstacles that must be overcome, and the responsibilities

Study of the Bahá’í Writings on Economics

that must be assumed, to enable a sore-tried Faith to pass
through the successive stages of unmitigated obscurity, of
active repression, and of complete emancipation, leading in
turn to its being acknowledged as an independent Faith,
enjoying the status of full equality with its sister religions,
to be followed by its establishment and recognition as a
State religion, which in turn must give way to its assumption
of the rights and prerogatives associated with the Bahá’í
state, functioning in the plenitude of its powers, a stage
which must ultimately culminate in the emergence of the
world-wide Bahá’í Commonwealth, animated wholly by the
spirit, and operating solely in direct conformity with the
laws and principles of Bahá’u’lláh.”
- Shoghi Effendi, The Advent of Divine Justice, p.14-15

“This commonwealth must, as far as we can visualize it,
consist of a world legislature, whose members will, as the
trustees of the whole of mankind, ultimately control the
entire resources of all the component nations, and will enact
such laws as shall be required to regulate the life, satisfy the
needs and adjust the relationships of all races and peoples.
A world executive, backed by an international Force, will
carry out the decisions arrived at, and apply the laws enacted
by, this world legislature, and will safeguard the organic
unity of the whole commonwealth. A world tribunal will
adjudicate and deliver its compulsory and final verdict in
all and any disputes that may arise between the various
elements constituting this universal system. A mechanism of
world inter-communication will be devised, embracing the
whole planet, freed from national hindrances and restrictions,
and functioning with marvellous swiftness and perfect

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regularity. A world metropolis will act as the nerve center
of a world civilization, the focus towards which the unifying
forces of life will converge and from which its energizing
influences will radiate.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

World unity is the highest aspiration of mankind and a world
commonwealth is a goal for humanity. Once it is established,
for the first time in human history, the whole world will be
one country. We cannot comprehend it but perhaps the future
world can be compared to one country and the provinces or
states of that country will be like the present countries of the
world. Every country will keep its own language and culture,
and, at the same time, be part of the world commonwealth.
The world commonwealth will be a government for the whole
world and there will be a universal language for the whole
world, one currency, one political system, one education
system and one economic system.

Practical Economic Suggestions
For Everyday Use

Economics of the Future Begins Today

It is important to remember that the Bahá’í Economic System
will occur when the transformation of man and society has
been accomplished and with it man’s awareness of his spiritual
station and his destiny. He will have subordinated his animal
nature and will therefore behave less selfishly. At this time it
is almost impossible to imagine a society which has spiritually
grown to that extent. But by introducing more of the spiritual
qualities in our lives we are laying the foundation for such a
society and such an economic system. Some of our goals
may seem idealistic but that is exactly what we are, idealists.
We are dreaming of a better world and are ready to make
sure that Bahá’u’lláh’s World Commonwealth is going to be
established. No great change can take place without a goal
or a dream. Without dreams and dreamers our civilization
would have not progressed from the Stone Age to where we
are now. Before moving on it is fitting to remind ourselves
what ‘Abdu’l-Bahá said:
“The secrets of the whole economic question are Divine in
nature, and are concerned with the world of the heart and
spirit. In the Bahá’í Teachings this is most completely
explained, and without the consideration of the Bahá’í
Teachings, it is impossible to bring about a better state.”
- ‘Abdu’l-Bahá, The Bahá’í World, Volume 1V, p.448

Shoghi Effendi shed more light on this:
“...By the statement ‘the economic solution is Divine in nature’
is meant that religion alone can, in the last resort, bring in
man’s nature such a fundamental change as to enable him to
adjust the economic relationships of society. It is only in this
way that man can control the economic forces that threaten

Practical Economic Suggestions for Everyday Use

to disrupt the foundations of his existence, and thus assert
his mastery over the forces of nature.”
- From a letter written of behalf of Shoghi Effendi to an individual
believer, December 26, 1935, Lights of Guidance, p.551

Since we do not have the Bahá’í Economic system in place as
yet, we may think that we cannot do anything to bring it about
and we must wait for its arrival. But that is not really true.
There is so much we can do as individuals and in our
communities that is economic in nature and we can do it without
realizing that we are participating in economic activity. Our
participation will set the example for the rest of the world and
at the same time prepare the ground for the time when the
World Commonwealth will come into being.
To visit the future, more than your heart and intellect, you
need the power of your imagination, because you are going to
picture yourself in the future. Once you do that and grasp the
beauty of peace, love and harmony and see how the sufferings
and misery have been removed and man no longer has to fight
to survive in his economic life, you will bring yourself back to
the present and hopefully you will start making small changes
in your economic activities that will lead to the fundamental
changes in order to lay the foundation of a new and wonderful
economic behavior based on spirituality and not greed.
The suggestions below may hopefully help to bring about this
fundamental change:
 Focus on the important questions of life. After answering
the questions “Who am I” and “what is the purpose of
my life”, the equally important question of “How much is
enough?” should be answered. One of the biggest problems

Economics of the Future Begins Today

everyone faces is that we do not get a chance to understand
who we are and what constitutes the purpose of our lives.
Also we are so busy that we do not ask how much money
is enough. How much do we need to live a fruitful life?
Practice contentment. Life distracts us from asking ourselves
some fundamental questions. Answering these questions can
guide us to go through tests and difficulties in life.
 Live a simple life, a life like ‘Abdu’l-Bahá. Living a
simple life brings peace of mind and removes some of the
distractions of our life journey. There are many studies that
indicate that simplicity reduces stress in life and creates a
sense of freedom from the burden of material possessions.
There is a movement already in place called “voluntary
simplicity” that encourages people to live a simple life. There
are some benefits in living a simple life. It is a decision made
by many who had too much to handle.

 Change your mindset. You need to believe that you are
essentially a spiritual being and have a spiritual purpose in
your life. You need to realize your spiritual destiny. Once
this is realized, then acting accordingly is much more effective
and easy. This mind set will help you to have a healthy
approach to your material life. Every change begins first in
your mind.
 Pay a fair price. If you feel that the price is too low, pay
more than the asking price. The Báb practiced this when He
worked as a merchant. One of the nicest things related to
economic activities is the commitment of fair-minded people
to disregard existing prices and pay more because they
believe their estimate of the price to be fair.

Practical Economic Suggestions for Everyday Use

 Share the profits with employees. ‘Abdu’l-Bahá taught
us how important it is for the workers to have a share of the
profits. Get medical coverage for employees. Support the
emotional and physical wellbeing of employees. Taking care
of workers is a privilege and an opportunity to be of service
to people. Besides profit-sharing, there are many ways to
helping. Looking for such opportunities is a wonderful act.
 Pay fare wages, not based on what society dictates. We
do not need to follow the minimum wage guidelines. The
Bahá’í Writings provide the guidelines to ensure that we pay
what we feel is fair. Again the wage guidelines should not
prevent us from paying more if we think that is fair.
 Be honest in your dealings. Present it with all the facts
explained. In our society, we tend to misrepresent a product
or share only enough information to present it in the best
possible light. Truthfulness is the foundation of all the virtues.
When selling your car, house or other possessions, clearly
describe the real condition. Mentioning the negative points
about a car or a house is not wrong. Believe me, I have
done it and it did help me to get a good price.
 Provide the best quality of service or the best product
possible and do so in a spirit of service. We are privileged
to have the assurance that by doing our job well we have
actually demonstrated an act of worship. Make customer
satisfaction a goal. There is more to our jobs than just
earning money. How satisfying it is to know that the customer
is happy and we have played a part in it. Being proud of our
work is a blessing millions do not have. They make money
but are not happy and satisfied inside.

Economics of the Future Begins Today

 Look for opportunities to extend to co-workers and
co-operate in the workplace. Most workplaces are very
isolating and individuals work by themselves. To reach out
and extend help and to treat each other fairly creates a
better spirit and working environment. Extend help to others,
even your competitors. Be a cause of unity by seeing them
as you would see your own employees or colleagues and
doing as much as you can to help them.
 Be content with a reasonable margin of profit. There
is no end to greed in our society so being satisfied with
earning a certain profit will create a sense of contentment
and provide an example to others. This is an extension of
how much is enough. There is nothing wrong in being
satisfied and content with a set amount of profit.
 Update yourself with the latest information and study in
your field to provide a better service and to be the leader
in your profession, and be punctual in business and other
meetings. Being on time at work increases the efficiency of
the system and demonstrates respect for others. If time is
money, then one should not waste it.
 Remember that your actions are the best manifestation
of your beliefs and be conscious of them. The cliché is
true that actions speak louder than words. We should be an
example for others since we are the ones to lead society
towards an ever-advancing civilization.
 If you are lending money, ask for a reasonable interest
rate and not the maximum rate. We are told that the rate
of interest has to be fair and reasonable. Bahá’u’lláh has
advised us to do so. Banks should not be the only ones
setting interest rates.

Practical Economic Suggestions for Everyday Use

 Resist the consumer mentality which exists in our
society. As the standard of living rises, consumerism
increases and consuming becomes a bad habit with serious
consequences. Fighting this tendency is very important for
our economic life and our spiritual development.
Consumerism has become a disease that is spreading fast
and its forces are paralyzing the progress of our souls.
 Be knowledgeable about advertising. Advertisements
conceal the information we need to buy a product and
they make false claims, using psychological methods to
make a sale. Advertising covers all areas of our economic
life. One has to be very savvy to navigate through all the
false claims of advertising. Selling has become very
sophisticated and one has to be very smart about it and
read between the lines.
 Spiritually justify every expenditure. With so much
poverty in the world today, we have to answer to our
conscience for any unnecessary spending. We have been
advised to be frugal in our spending. It would be very
useful if we could create in us this “policeman” to check
our spending.
 Avoid wastage in the workplace and suggest ways to cut
down on waste. We can all help in some way to avoid the
loss of resources.
 Protect the environment in your business and personal
life. We owe it to future generations to protect the
environment. What a sad situation it would be if mankind
grows spiritually in the future but the damage is done and
our environment is destroyed.

Economics of the Future Begins Today

 Increase your economic and business knowledge. The
more we know about how economics works, the better we
will be able to forecast the future.
 Volunteer for service whenever possible with the spirit of
service, following ‘Abdu’l-Bahá’s example, Who served
mankind all of His life.
 Give to the Bahá’í Fund and also support worthy
charitable organizations. Every act of giving is a small
step towards reducing the gap between rich and poor.
 Have or adopt a financial goal in life. As we have teaching
plans in the Faith and other goals and plans in our life, it is
important to have an individual financial plan. Goals encourage
discipline. This is very important. It is almost impossible to
have a comfortable financial life without planning.
 Avoid debt as much as possible since too many financial
burdens damage the quality of spiritual and human life.
Investigate the rate of interest on mortgages, loans and
credit to reduce cost. Volumes can be written about this
subject. Debts are one of the most destructive factors
that should be avoided.
 Create a habit of saving. Life is full of uncertainty and
change and having some money for a rainy day creates
peace of mind. Saving should be part of our financial goals.
It is a wonderful habit to have. It is not easy to save with
the pressure of our consumer mentality today but
nevertheless it is very important.
 Spread the word about honest and fair businesses and
professionals. It is like giving them free advertising. They

Practical Economic Suggestions for Everyday Use

need all the help they can get. It has a very enabling
power helping honest people and businesses.
 Don’t buy the latest models if the old ones are in working
order and provide the same service. Having the latest of
everything creates an unnecessary economic burden for an
individual which in turn decreases the quality of life. Be
practical about material possessions. But it is hard not to
want to purchase the latest model of car when everyone
is doing the same.
 Avoid keeping up with the Joneses. That is the worst
kind of spending. It is also a sign of spiritual and emotional
immaturity. And we see it happen every day. It is really
sad that people want the approval of others, while their
spiritual destiny is in jeopardy.
 Support the concept of one world currency. If we have
fewer currencies to exchange, life becomes much easier
and this is a good step in the right direction towards world
unity. And anything that can promote world unity is
extremely important.
 Don’t follow society’s shortcuts with regards to
taxation. There are claims made which can perhaps be
legally justified but are morally wrong.
 Make honest insurance claims.
 Make fair expense claims at work. It has become a
common practice to claim the maximum amount even if it is
not used but we have the duty to be honest about them.
 Do not abuse sick leave.

Economics of the Future Begins Today

 Return to the store when you realize you have been
undercharged or receive too much change for your
purchase. This is practicing the virtue of honesty. Watch
the face of the cashier when you do this. He or she is
probably wondering, “Who are these people?” The
answer is that we are the people from the future, where
honesty is the norm.
 Resist society’s corrupt practices of bribery and
cheating. In some places in the world, giving bribes is a
way of life and that is a test and an opportunity to fight
this bad practice. It is very hard in places like India and
China where I have lived. Refusing to participate in these
practices is very difficult.
 Regard service first and profit second. This seems
idealistic in society but for Bahá’ís it is considered a way of
life. And in the long run, it is the best advertisement one can
buy for free.
 Participate in social and economic projects. We can
help to change the world for the better by getting
involved in these projects. And they are a valuable way
of learning and contributing. We need to gain experience
in social activities so that we can contribute more in the
future.
 Do not support the idea of the end justifying the means
when it comes to promotion at work or getting a contract
or applying for a job. Our goal is to grow spiritually and
these practices do not help us to grow. That is the worst
kind of numbing our conscience.
 Be honest in a job interview. Society has adopted the

Practical Economic Suggestions for Everyday Use

practice of magnifying positive and minimizing or omitting
negative but in reality it is a form of lying. It will feel
strange to us and the interviewer but we have to start
being totally honest.

 Be truthful in filling out forms or tenders. Exaggerating
has become a way of life but it is not the Bahá’í way of life.
It is a very hard thing to do when competing but we can
have the satisfaction that Bahá’u’lláh is happy with us.

 Do not sacrifice your values in order to get a
promotion or contract even though there is nothing wrong
with being ambitious and wanting to progress through the
ranks. Some would do anything to get a promotion but we
cannot follow that practice.

 Use good quality material in production. Do not use
harmful ingredients in production. Be educated about the
ingredients so no harm comes as a result.

 Protect the poor and underprivileged section of our
society in any way you can. It is our spiritual duty and
privilege.

 Give your Huqúqu’lláh (the Right of God), knowing
well that this kind of giving is a privilege and is not a tax.
Give with a sense of sharing rather than a sense of loss.
This is your opportunity to practice generosity. Giving is
the best practical step for bridging the gap between the
rich and poor.

 Create a consciousness that your welfare, wellbeing
and happiness depend on the welfare, wellbeing and

Economics of the Future Begins Today

happiness of every poor, needy and underprivileged
person in the world; that the real meaning of the oneness
of mankind will come into being when we see others as
members of our family. This should be easy for us since
we have heard and said it many times that “we are the
leaves of one branch…”
 Money is a tool and not the goal of your life. The
biggest mistake that most people make is that they forget
that we have not been created to make money. That should
not be our life’s goal. Money should be seen as an effective
tool to serve mankind and to improve the spiritual and
economic life of ourselves and others. This is the key that
can make a person happy or sad at the end of our physical
life. Since we cannot take it with us, then why not spend it
for the good of mankind.
 Spend an equal amount of energy in becoming detached
from material possessions as you spend getting them,
recognizing that they are a test and remembering what
Bahá’u’lláh said:
“Thou dost wish for gold and I desire thy freedom
from it. Thou thinkest thyself rich in its possession,
and I recognize thy wealth in thy sanctity
therefrom…”
- The Hidden Words, Arabic no.56

It is like a spiritual detoxification. There is nothing
inherently wrong with being rich as long as we are fully
aware of its benefits and dangers. Bahá’u’lláh has allowed
us to have all the luxuries we desire, as long as we are
detached from them.

Practical Economic Suggestions for Everyday Use

 Remind yourself of your spiritual destination while
pursuing financial goals, since materialism can slowly take
over your spiritual life. Without constant reminders of our
spiritual destiny, materialism can destroy our spiritual
well-being. We have to have the “big picture” in our view
all the time so that we are not lost.

 Live the Bahá’í Life. In a sense it is a simple statement
to live the Bahá’í life but it requires an understanding of
ourselves and our purpose in life. It is easier said
than done.

 Be considerate to those who rent from you. Be
sensitive to their situation. If they are in trouble, be
flexible with their rent payments. Let them miss a
payment or part of a payment. Besides the spiritual
satisfaction that you feel, you also gain a tenant who cares
for you and your property and will use it as if it’s theirs.
It even makes economic sense since you will probably
lessen the cost of repairs.

 Develop virtues that are common to all religions and
are the foundation for any system’s success. At the present
time, acquiring the virtues seems idealistic but we have to
remember that as we move closer to an ever-advancing
civilization, acquiring these virtues will be commonplace.
They may not seem as if they have anything to do with
economics but they do, as they assist us to gain spiritual
and human qualities which help us to create a better
society. Here is the list of virtues identified by The Virtues
Project:

Economics of the Future Begins Today

assertiveness gentleness peacefulness
caring helpfulness prayerfulness
cleanliness honesty purposefulness
compassion honor reliability
confidence humility respect
consideration idealism responsibility
courage joyfulness reverence
courtesy justice self-discipline
creativity kindness service
detachment love steadfastness
determination loyalty tact
enthusiasm mercy thankfulness
excellence moderation tolerance
faithfulness modesty trust
flexibility obedience trustworthiness
forgiveness orderliness truthfulness
friendliness patience unity
generosity

 Deal with your insistent self or ego, otherwise it can
undo any success or progress if it is not recognized as a
serious threat to our good efforts. History is full of
examples of how egos created destruction throughout the
ages. As a human being our life in this world and our
progress in the next world depend on the decisions we
make. Some say we make our own heaven and hell here
on earth as a result of the choices we make. It is sad if
we do not make the right decision and give our higher

Practical Economic Suggestions for Everyday Use

nature the upper hand. Because we are bombarded by
advertisements and consumerism, nurturing our higher
nature is very difficult and that is why we need to tune
ourselves spiritually in order to make the right choice so
that we get the rewards and benefits of that choice. We
know that reading the Writings has been encouraged in
our Faith and when we read the Holy Writings and
meditate on them, our souls are uplifted and that affects
our decision making. Our souls are tuned by reading the
Writings and bringing ourselves to account each day. It is
like a spiritual balance sheet so that we can perceive the
good and the bad in our ways. This is such an important
factor in our lives and we need to take the opportunity
to fully deal with it.
 Recognize and nurture the four aspects of your being:
a) Spiritual
b) Physical
c) Emotional
d) Intellectual
Most people ignore one aspect for the sake of others but
we need all aspects to have balance in our lives. This
sounds like one of those self-help mantras but awareness
of all aspects of our being is essential to a realistic self-
knowledge which is the first step towards knowing
God.

 Be more vocal in a loving way about what you think
about the changes that are needed for the improvement
of the economic life of individuals and the society in
which you live; in short, without being militant or

Economics of the Future Begins Today

aggressive, express your ideas and vision. We all have a
say in all matters and we can be the catalysts of positive
change. We do not want to be political or militant, but
we cannot forget that our job is providing vision and
direction to a wayward humanity. It is like having the
healing medicine and not giving it to the sick.

This list of suggestions may seem overwhelming and you may
not be able to practice all those that apply to your situation.
But you have to remember that it is not about the results, it
is about sincere and wholehearted efforts. It is the pure
intention that counts.

Definition of Some Economic Terms

Economics of the Future Begins Today

Economics like other sciences and arts has its own language.
Without knowledge of this language it is very difficult to
understand economics. This has stopped many from following
economic developments at the local, national and international
levels. Often when I mention that economics is my field of
interest, it creates a sense of uneasiness, since, unlike politics
and sport where almost everyone has an opinion, no one has
much to say and the conversation quickly changes to other
things. This to me is unfortunate because economics is everywhere
and is one of the most important factors in our lives. It touches
almost every activity we undertake. Even in detective movies
they say “follow the money” when trying to find the murderer.
But also it is very difficult to have an economics dictionary
handy, so I decided to dedicate this chapter to explaining in a
simple way about 200 of the common economic terminologies.
For some, it may be overly simplified and, if that is the case,
they can always refer to the Oxford Dictionary of Economics.

Aggregate demand: the total demand for final goods and
services in an economy at a given time.

Aggregate expenditure: the total amount of expenditure on
goods and services.

Aggregate supply: the total amount of domestic goods and
services supplied by businesses and government, including both
consumer products and capital goods.

Arbitration: a procedure for settling disputes, in which a neutral
third party or arbitrator, after hearing presentations from all
sides in dispute, issues an award binding upon each side.

Definition of Some Economic Terms

Asset: an item or property owned by a person or a business
which has a money value. Assets are of three main types: a)
physical, b) financial and c) intangible.

Average cost: equal to total cost divided by the number of
goods produced

Average propensity to consume (APC): the percentage of
income that is spent on goods and services rather than on savings.

Average propensity to save: the proportion of income that is
saved rather than spent on goods and services.

Average rate of taxation: the total tax paid by an individual
divided by the total income upon which the tax was based.

Average revenue: the total revenue received (price and number
of units sold) divided by the number of units.

Bad debt: an accounting term for money owed which is unlikely
to be paid.

Balanced budget: refers to a budget in which revenues are
equal to expenditures.

Balance of trade: the difference between the value of exports
and value of imports.

Balance sheet: a statement of the assets, liabilities, and capital
of a business or other organization at a particular point in time,
detailing the balance of income and expenditure over the
preceding period.

Economics of the Future Begins Today

Balance of payments: a statement of a country’s trade and
financial transactions with the rest of the world over a period of
time, usually one year.

Bankruptcy or insolvency: a condition under which a person
or firm’s liabilities to creditors exceed assets. The individual or
firm is therefore unable to pay all liabilities from its assets.

Barter: exchange (goods or services) for other goods or services
without using money.

Base rate: the interest rate which is used by commercial banks
to calculate rate of interest to be charged on loans and overdraft
to their customers.

Bear: a market condition in which the prices of securities are
falling, and widespread pessimism causes the negative
sentiment to be self-sustaining. As investors anticipate losses in
a bear market and selling continues, pessimism only grows.

Bearer bonds: a debt security issued by a business entity, such as
a corporation, or by a government. It differs from the more common
types of investment securities in that it is unregistered – no records
are kept of the owner, or the transactions involving ownership.

Bill of exchange: a financial security representing an amount
of credit extended by one business to another for a short
period of time.

Black market: or underground economy is a market in which
goods or services are traded illegally.

Definition of Some Economic Terms

Blue chip: a nationally recognized, well-established and
financially sound company. Blue chips generally sell high-quality,
widely accepted products and services. Blue chip companies
are known to weather downturns and operate profitably in the
face of adverse economic conditions, which help to contribute
to their long record of stable and reliable growth.

Bond: a financial security issued by businesses and by the
government as a means of borrowing long-term funds. Bonds
are typically issued for period of several years; they are
repayable on maturity and bear a fixed interest rate.

Bonus shares: shares issued to existing shareholders without
further payment on their part.

Boom: a phase of the business cycle characterized by full
employment levels of output and some upward move on the
general price level.

Brokerage: a financial institution that facilitates the buying
and selling of financial securities between a buyer and a seller.

Business cycle: the fluctuations in economic activity that an
economy experiences over a period of time. A business cycle is
basically defined in terms of periods of expansion or recession.

Capital: Adam Smith defines capital as “That part of a man’s
stock which he expects to afford him revenue.”

Capital gains: a profit that results from a disposition of a
capital asset, such as stock, bond or real estate, where the
amount realized on the disposition exceeds the purchase price.

Economics of the Future Begins Today

Capital market: financial markets for the buying and selling
of long-term debt or equity-backed securities. These markets
channel the wealth of savers to those who can put it to long-
term productive use, such as companies or governments
making long-term investments.

Carbon tax: a tax levied on the carbon content of fuels. It is
a form of carbon pricing. Carbon is present in every
hydrocarbon fuel (coal, petroleum, and natural gas) and is
released as carbon dioxide when they are burnt.

Cartel: an agreement between competing firms to control prices
or exclude entry of a new competitor in a market. It is a formal
organization of sellers or buyers that agree to fix selling prices,
purchase prices, or reduce production using a variety of tactics.

Cash flow: the movement of money into or out of a business,
project, or financial product. It is usually measured during a
specified, limited period of time.

Cash ratio: the ratio of a company’s total cash and cash
equivalents to its current liabilities.

Central bank, also a reserve bank, or monetary authority: an
institution that manages a state’s currency, money supply, and
interest rates. Central banks also oversee the commercial
banking system of their respective countries.

Classical economics: assert that markets function best without
government interference. It was developed in the late 18th and
early 19th century by Adam Smith, Jean-Baptiste Say, David
Ricardo, Thomas Malthus, and John Stuart Mill.

Definition of Some Economic Terms

Closed economy: an economy in which no activity is
conducted with outside economies. A closed economy is
self-sufficient, meaning that no imports are brought in and no
exports are sent out. The goal is to provide consumers with
everything that they need from within the economy’s borders.

Commercial banks: a type of bank that provides services
such as accepting deposits, making business loans, and offering
basic investment products.

Commodity: a marketable item produced to satisfy wants or
needs. Economic commodities comprise goods and services.

Commodity exchange: an exchange where various
commodities and derivatives products are traded. Most
commodity markets across the world trade in agricultural
products and other raw materials (like wheat, barley, sugar,
maize, cotton, cocoa, coffee, milk products, pork bellies, oil,
metals, etc.) and contracts based on them.

Consumer good: any commodity which is produced and
subsequently consumed by the consumer, to satisfy its current
wants or needs.

Consumer price index: a consumer price index (CPI)
measures changes in the price level of a basket of consumer
goods and services purchased by households.

Convertibility: the quality that allows money or other financial
instruments to be converted into other liquid stores of value.
Convertibility is an important factor in international trade, where

Economics of the Future Begins Today

instruments valued in different currencies must be exchanged.

Cost control: refers to the efforts business restrictions
managers make to monitor, evaluate, and trim expenditures.

Credit: the trust which allows one party to provide money or
resources to another party where that second party does not
reimburse the first party immediately (thereby generating a
debt), but instead arranges either to repay or return those
resources at a later date.

Credit union: a member-owned financial cooperative,
democratically controlled by its members, and operated for the
purpose of promoting thrift, providing credit at competitive
rates, and providing other financial services to its members.

Currency: refers to money in any form when in actual use or
circulation as a medium of exchange, especially circulating
banknotes and coins.

Currency depreciation: the loss of value of a country’s currency
with respect to one or more foreign reference currencies,
typically in a floating exchange rate system.

Debt: refers to money, owed by one party, the borrower or
debtor, to a second party, the lender or creditor. Debt is
generally subject to contractual terms regarding the amount
and timing of repayments of principal and interest.

Deficit: an excess of expenditures over revenue in a given
time period.

Definition of Some Economic Terms

Deflation: a decrease in the general price level of goods
and services.

Demand: a buyer’s willingness and ability to pay a price for a
specific quantity of a good or service. Demand refers to how
much (quantity) of a product or service is desired by buyers at
various prices.

Depreciation: a method of allocating the cost of a tangible
asset over its useful life.

Depression: a sustained, long-term downturn in economic
activity in one or more economies.

Devaluation: a reduction in the value of a currency with
respect to those goods, services or other monetary units with
which that currency can be exchanged.

Direct costs: refer to materials, labor and expenses related
to the production of a product (such as a particular project,
facility, function or product). Indirect costs may be either fixed
or variable. Indirect costs include administration, personnel
and security costs. These are those costs which are not directly
related to production. Some indirect costs may be overhead.

Disequilibrium: the opposite of equilibrium which is the
condition of a system in which all competing influences are
balanced.

Diversification: means reducing risk by investing in a variety
of assets.

Economics of the Future Begins Today

Dividend: a payment made by a corporation to its shareholders,
usually as a distribution of profits.

Division of labour: the specialization of cooperating
individuals who perform specific tasks and roles.

Dow-Jones industrial average: a stock market index, and
one of several indices created by Wall Street Journal editor
and Dow Jones & Company co-founder Charles Dow.

Dumping: the act of charging a lower price for the like goods in
a foreign market than one charges for the same goods in a domestic
market for consumption in the home market of the exporter.

Durable goods: goods that do not quickly wear out, or more
specifically, ones that yields utility over time rather than being
completely consumed in one use. Items like bricks could be
considered perfectly durable goods, because they should
theoretically never wear out.

Earned income: any income that a person or company receives
for work they have done.

Economic efficiency: an economic state in which every
resource is optimally allocated to serve each person in the best
way while minimizing waste and inefficiency.

Economic good: an economic good is a good or service that
has a benefit (utility) to society.

Economic sanction: domestic penalties applied unilaterally

Definition of Some Economic Terms

by one country (or multilaterally, by a group of countries) on
another country (or group of countries). Economic sanctions
may include various forms of trade barriers and restrictions on
financial transactions.

Economics: the social science that seeks to describe the factors
which determine the production, distribution and consumption
of goods and services.

Entrepreneur: in charge of the process of starting a business,
a startup company or other organization. The entrepreneur
develops a business plan, acquires the human and other required
resources, and is fully responsible for its success or failure.

Equity: the difference between the value of the assets/interest
and the cost of the liabilities of something owned. For example,
if someone owns a car worth $25,000 but owes $10,000 on
that car, the car represents $15,000 equity. Equity can be
negative if liability exceeds assets.

European Economic Community (EEC): an economic union
created by the Treaty of Rome of 1957. Upon the formation
of the European Union (EU) in 1993, the EEC was
incorporated and renamed as the European Community (EC).
In 2009 the EC’s institutions were absorbed into the EU’s
wider framework and the community ceased to exist.

European Currency Unit (ECU): a basket of the currencies
of the European Community member states, used as the unit
of account of the European Community before being replaced
by the euro on 1 January 1999, at parity.

Economics of the Future Begins Today

Exchange rate (also known as a foreign-exchange
rate): the rate at which one currency will be exchanged
for another.

Exports: selling goods and services produced in the home
country to other markets. Export of commercial quantities
of goods normally requires involvement of the customs
authorities in both the country of export and the country of
import.

Face value: the value printed or depicted on a coin, banknote,
postage stamp, ticket, etc., especially when less than the actual
or intrinsic value.

Factors of production: describes the inputs that are used in
the production of goods or services in the attempt to make
an economic profit. The factors of production include land,
labor, capital and entrepreneurship.

Finance: a field that deals with the allocation of assets and
liabilities over time under conditions of certainty and
uncertainty.

Fiscal policy: the means by which a government adjusts its
spending levels and tax rates to monitor and influence a nation’s
economy. It is the sister strategy to monetary policy through
which a central bank influences a nation’s money supply.

Foreign-exchange market: a global market for the trading
of currencies. In terms of volume of trading, it is by far the
largest market in the world.

Definition of Some Economic Terms

Free market: a market economy based on supply and demand
with little or no government control. A completely free market
is an idealized form of a market economy where buyers and
sellers are allowed to transact freely.

Free trade: a policy in international markets in which
governments do not restrict imports or exports. Free trade is
exemplified by the European Union / European Economic Area
and the North American Free Trade Agreement.

Futures: a financial contract obligating the buyer to purchase
an asset (or the seller to sell an asset), such as a physical
commodity or a financial instrument, at a predetermined future
date and price. Futures contracts detail the quality and quantity
of the underlying asset; they are standardized to facilitate
trading on a futures exchange.

Gross national product (GNP): the market value of all the
products and services produced in one year by labour and
property supplied by the citizens of a country.

Government securities: issued by a government authority,
with a promise of repayment upon maturity that is backed by
said government. A government security may be issued by the
government itself or by one of the government agencies. These
securities are considered low-risk, since they are backed by the
taxing power of the government.

Hard currency: a currency, usually from a highly industrialized
country, that is widely accepted around the world as a form of
payment for goods and services.

Economics of the Future Begins Today

Hedge: making an investment to reduce the risk of adverse
price movements in an asset.

Holding company: a company that owns other companies’
outstanding stock. The term usually refers to a company that
does not produce goods or services itself; rather, its purpose
is to own shares of other companies to form a corporate
group.

Hyperinflation: occurs when a country experiences very
high and usually accelerating rates of inflation, rapidly eroding
the real value of the local currency, and causing the population
to minimize their holdings of the local money.

Hypothesis: a supposition or proposed explanation made
on the basis of limited evidence as a starting point for further
investigation.

International Labour Organization (ILO): a United Nations
agency dealing with labour issues, particularly international
labour standards, social protection, and work opportunities
for all.

International Monetary Fund (IMF): an international
organization created for the purpose of:

1. Promoting global monetary and exchange stability.
2. Facilitating the expansion and balanced growth of
international trade.
3. Assisting in the establishment of a multilateral system of
payments for current transactions.

Definition of Some Economic Terms

Import duties: a tax collected on imports by the customs
authorities of a country. This tax is used to raise state
revenue.

Import quota: a limit on the quantity of a good that can be
produced abroad and sold domestically.

Import restrictions: a limit on the quantity of a good that can
be produced abroad and sold domestically. It is a type of
protectionist trade restriction that sets a physical limit on the
quantity of a good that can be imported into a country in a
given period of time.

Income: money received, especially on a regular basis, for
work or through investments.

Income tax: a government levy (tax) imposed on individuals
or entities (taxpayers) that varies with the income or profits
(taxable income) of the taxpayer.

Inflation: a sustained increase in the general price level of
goods and services in an economy over a period of time.

Infrastructure: the basic physical and organizational structures
and facilities (e.g., buildings, roads, and power supplies) needed
for the operation of a society or enterprise.

Insurance: a practice or arrangement by which a company or
government agency provides a guarantee of compensation for
specified loss, damage, illness, or death in return for payment
of a premium.

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Interest: the charge for the privilege of borrowing money,
typically expressed as an annual percentage rate.

Inventories: a complete list of items such as property, goods
in stock, or the contents of a building.

Investment: the purchase of an asset or item with the hope
that it will generate income or appreciate in the future and be
sold at the higher price.

‘Invisible Hand’: a metaphor used by Adam Smith to
describe unintended social benefits resulting from individual
actions. The phrase is employed by Smith with respect to
income distribution and production.

International Trade Commission (ITC): an independent,
bipartisan, quasi-judicial, federal agency of the United States
that provides trade expertise to both the legislative and
executive branches.

Labour: work, especially physical work.

Labour intensive: needing a large workforce or a large
amount of work in relation to output.

‘Laissez-faire’: an economic system in which transactions
between private parties are free from government interference
such as regulations, privileges, tariffs, and subsidies. The phrase
laissez-faire is part of a larger French piece and literally
translates to “let (it/them) do”, but in this context usually means
“let it be”, or “let it go”.

Definition of Some Economic Terms

Land: considered a factor of production, along with labor and
capital. Selling land results in a capital gain or loss.

Lease: a contractual arrangement calling for the lessee (user)
to pay the lessor (owner) for use of an asset. Broadly put, a
lease agreement is a contract between two parties, the lessor
and the lessee.

Linear programming: a method to achieve the best outcome
(such as maximum profit or lowest cost) in a mathematical model
whose requirements are represented by linear relationships.

Liquid: how quickly you can get your hands on your cash. In
simpler terms, liquidity is to get your money whenever you
need it.

Liquidation: the process by which a company (or part of a
company) is brought to an end, and the assets and property of
the company are redistributed.

Lump-sum tax: a fixed amount, no matter the change in
circumstance of the taxed entity.

Macroeconomics: a branch of economics dealing with the
performance, structure, behavior, and decision-making of an
economy as a whole, rather than individual markets. This
includes national, regional, and global economies.

Market: one of the many varieties of systems, institutions,
procedures, social relations and infrastructures whereby parties
engage in exchange.

Economics of the Future Begins Today

Market share: the percentage of an industry or market’s total
sales that is earned by a particular company over a specified
time period. Market share is calculated by taking the company’s
sales over the period and dividing it by the total sales of the
industry over the same period.

Maturity: the date on which the principal amount of a note,
draft, acceptance bond or other debt instrument becomes due
and is repaid to the investor and interest payments stop. It is
also the termination or due date on which an installment loan
must be paid in full.

Microeconomics: a branch of economics that studies the
behavior of individuals and small impacting organizations in
making decisions on the allocation of limited resources.

Mixed economy: an economic system that features
characteristics of both capitalism and socialism. A mixed
economic system allows a level of private economic freedom
in the use of capital, but also allows for governments to interfere
in economic activities in order to achieve social aims.

Monetary policy: authority of a country controlling the supply
of money, often targeting an inflation rate or interest rate to
ensure price stability and general trust in the currency.

Money market: as money became a commodity, the money
market became a component of the financial markets for assets
involved in short-term borrowing, lending, buying and selling
with original maturities of one year or less. Trading in money
markets is done over the counter and is wholesale.

Definition of Some Economic Terms

Money supply: the total amount of monetary assets available
in an economy at a specific time.

Monopoly: a market structure in which there is only one
producer/seller for a product. In other words, the single business
is the industry.

Mortgage: used by individuals and businesses to make large
real estate purchases without paying the entire value of the
purchase up front.

Mutual funds: a type of professionally managed investment
fund that pools money from many investors to purchase
securities.

National debt: the total amount of money that a country’s
government has borrowed, by various means.

National income: the total amount of money earned within a
country.

Net domestic product: equals the gross domestic product
(GDP) minus depreciation on a country’s capital goods.

Net income: calculated by taking revenues and adjusting for
the cost of doing business, depreciation, interest, taxes and
other expenses.

New classical economics: a school of economic thought that
originated in the early 1970s in the work of economists centered
at the Universities of Chicago and Minnesota—particularly,

Economics of the Future Begins Today

Robert Lucas (recipient of the Nobel Prize in 1995), Thomas
Sargent, Neil Wallace, and Edward Prescott (co-recipient of
the Nobel Prize in 2004).

New York Stock Exchange (NYSE): sometimes known as
the “Big Board”, is an American stock exchange located at
11 Wall Street, New York in the United States. It is the world’s
largest stock exchange by market capitalization of its listed
companies.

Net national product (NNP): the total market value of all final
goods and services produced by the factors of production of a
country during a given time period, minus depreciation.

Non-tariff barriers: a form of restrictive trade where barriers
to trade are set up and take a form other than a tariff. Nontariff
barriers include quotas, levies, embargoes, sanctions and other
restrictions, and are frequently used by large and developed
economies.

Open economy: an economy in which there are economic
activities between the domestic community and outside.

Ordinary share: a form of corporate equity ownership, a type
of security. The terms “voting share” or “ordinary share” are
also used frequently in other parts of the world; “common stock”
being primarily used in the United States.

Organization of Petroleum Exporting Countries (OPEC):
a permanent, international organization headquartered in
Vienna, Austria, was established in 1960. Its mandate is to

Definition of Some Economic Terms

coordinate and unify the petroleum policies of its members
and to ensure the stabilization of oil markets in order to
secure an efficient, economic and regular supply of petroleum
to consumers, a steady income to producers, and a fair return
on capital for those investing in the petroleum industry.

Paper profit: unrealized capital gain in an investment. It is
calculated by comparing the market price of a security to the
original purchase price. Gains only become realized when the
security is sold.

Peak pricing: a form of congestion pricing where customers
pay an additional fee during periods of high demand. Peak
pricing is most frequently implemented by utility companies,
who charge higher rates during times of the year when
demand is the highest.

Pension funds: a fund from which pensions are paid,
accumulated from contributions from employers, employees,
or both.

Perfect competition: the opposite of a monopoly, in which
only a single firm supplies a particular good or service, and
that firm can charge whatever price it wants. Here many firms
compete with each other and that lead to lower prices for
consumers.

Planned economy: the economic system in which decisions
regarding production and investment are made by a central
authority, usually by a government agency. Thus it may be
termed a “command economy”.

Economics of the Future Begins Today

Price system: a component of any economic system that
uses prices expressed in any form of money for the valuation
and distribution of goods and services and the factors of
production.

Prime rate: the lowest rate of interest at which money
may be borrowed commercially.

Private sector: that part of the economy, sometimes
referred to as the citizen sector, which is run by private
individuals or groups, usually as a means of enterprise for
profit, and is not controlled by the state (areas of the
economy controlled by the state being referred to as the
public sector).

Profit-sharing: a system in which the people who work
for a company receive a direct share of the profits.

Progressive tax: a tax in which the tax rate increases as the
taxable amount increases. The term “progressive” refers to
the way the tax rate progresses from low to high.

Promissory note: a signed document containing a written
promise to pay a stated sum to a specified person or the
bearer at a specified date or on demand.

Public company: a company with securities (equity and
debt) owned and traded by the general public through the
public capital markets. Shares of a public company are
openly traded and widely distributed.

Definition of Some Economic Terms

Public expenditure: spending made by the government of a
country on collective needs and wants such as pension,
provision, infrastructure, etc. Until the 19th century, public
expenditure was limited as laissez faire philosophies believed
that money left in private hands could bring better returns.

Public finance: the study of the role of the government in
the economy. It is the branch of economics which assesses
the government revenue and government expenditure of the
public authorities and the adjustment of one or the other to
achieve desirable effects and avoid undesirable ones.

Public sector: the public sector is the part of the economy
concerned with providing various government services.

Public utility: an organization that maintains the infrastructure
for a public service (often also providing a service using that
infrastructure). Public utilities are subject to forms of public
control and regulation ranging from local community-based
groups to statewide government monopolies.

Purchase tax: a sales tax on nonessential and luxury goods.

Quotas: a legal quantity restriction placed on an imported good
that is imposed by the domestic government.

Rate of return: a profit on an investment over a period of
time, expressed as a proportion of the original investment. The
time period is typically a year, in which case the rate of return
is referred to as annual return.

Economics of the Future Begins Today

Redeemable securities: a security which can be redeemed at
its face value at a specific date in the future.

Resource allocation: the assignment of available resources
to various uses. In the context of an entire economy, resources
can be allocated by markets, by central planning, or by some
combination of the two.

Resources: a source or supply from which benefit is
produced. Typically resources are materials, energy, services,
staff, knowledge, or other assets that are transformed to
produce benefit and in the process may be consumed or
made unavailable.

Sales tax: a tax paid to for the sales of certain goods and
services. Usually laws allow (or require) the seller to collect
funds for the tax from the consumer at the point of purchase.

Scarcity: the fundamental economic problem of having
seemingly unlimited human wants in a world of limited resources.
It states that society has insufficient productive resources to
fulfill all human wants and needs.

Securities: a financial instrument that represents: an ownership
position in a publicly-traded corporation (stock), a creditor
relationship with governmental body or a corporation (bond), or
rights to ownership as represented by an option.

Services: a service is an intangible commodity such as
accounting, banking, cleaning, consultancy, education,
insurance, expertise, medical treatment.

Definition of Some Economic Terms

Share: the capital of a company is divided into shares. Each
share forms a unit of ownership of a company and is offered
for sale so as to raise capital for the company. Shares can be
broadly divided into two categories - equity and preference
shares.

Social security: any government system that provides
monetary assistance to people with an inadequate or no income.

Social welfare: the provision of a minimal level of well-being
and social support for all citizens, sometimes referred to as
public aid.

Socialism: is a social and economic system characterised by
social ownership of the means of production and co-operative
management of the economy, as well as a political theory and
movement that aims at the establishment of such a system.

Soft currency: a currency which is expected to fluctuate
erratically or depreciate against other currencies. Such softness
is typically the result of political or fiscal instability within the
associated country.

Soft loan: a loan, typically one to a developing country, made
on terms very favorable to the borrower.

Stabilization policy: a package or set of measures introduced
to stabilize a financial system or economy. The term can refer
to policies in two distinct sets of circumstances: business cycle
stabilization and crisis stabilization. In either case, it is a form
of discretionary policy.

Economics of the Future Begins Today

Stagflation: persistent high inflation combined with high
unemployment and stagnant demand in a country’s economy.

Stamp duty: a tax that is levied on documents. Historically,
this included the majority of legal documents such as cheques,
receipts, military commissions, marriage licences and land
transactions.

Standard deviation: the standard deviation (SD)
(represented by the Greek letter sigma, ó) is a measure that
is used to quantify the amount of variation or dispersion of
a set of data values.

Stock: the capital raised by a business or corporation through
the issue and subscription of shares.

Subsidiaries: a company whose voting stock is more than
50% controlled by another company, usually referred to as
the parent company or holding company. A subsidiary is a
company that is partly or completely owned by another
company that holds a controlling interest in the subsidiary
company.

Subsidy: a form of financial aid or support extended to an
economic sector (or institution, business, or individual)
generally with the aim of promoting economic and social
policy.

Supply: the amount of something that firms, consumers,
laborers, providers of financial assets, or other economic
agents are willing to provide to the marketplace.

Definition of Some Economic Terms

Take-over: the purchase of one company (the target) by
another (the acquirer, or bidder).

Tariffs: a tax imposed on imported goods and services.
Tariffs are used to restrict trade, as they increase the price
of imported goods and services, making them more expensive
to consumers.

Taxation: the act of a taxing authority actually levying tax.
Taxation as a term applies to all types of taxes, from income
to gift to estate taxes.

Tenders: an offer to carry out work, supply goods, or buy
land, shares, or another asset at a stated fixed price.

Term loan: term loans can be given on an individual basis
but are often used for small business loans. The ability to
repay over a long period of time is attractive for new or
expanding enterprises, as the assumption is that they will
increase their profit over time.

Transfer costs: total opportunity cost of moving an item
from one place to another, including transport costs, loading
and unloading costs, and administrative costs.

Transfer payments: a transfer payment (or government
transfer or simply transfer) is a redistribution of income in the
market system.

Treasury: the funds or revenue of a government, corporation,
or institution.

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Turnover: in accounting, the number of times an asset is
replaced during a financial period or the number of shares
traded for a period as a percentage of the total shares in a
portfolio or of an exchange.

Underwriting: the practice by which investment bankers
represent corporate and government entities in the initial public
offering of their securities. The investment bankers cover the
risk of selling the securities to the public.

Utilitarianism: a theory suggesting that the moral action is
the one that maximizes utility. Utility is defined in various ways,
including pleasure, economic well-being and the lack of
suffering. The goal of utilitarian ethics is to promote the
greatest happiness for the greatest number.

Utility: a measure of preferences over some set of goods
and services. The concept is an important underpinning of
rational choice theory. Utility is an important concept in
economics, because it represents satisfaction experienced by
the consumer of a good.

Value-added tax (VAT): a type of consumption tax that is
placed on a product whenever value is added at a stage of
production and at final sale.

Variable costs: those costs that vary depending on a company’s
production volume; they rise as production increases and fall as
production decreases. Variable costs differ from fixed costs
such as rent, advertising, insurance and office supplies, which
tend to remain the same regardless of production output.

Definition of Some Economic Terms

Voting shares: shares that give the stockholder the right to
vote on matters of corporate policy making as well as who will
compose the members of the board of directors.

Warrants: a security that entitles the holder to buy the
underlying stock of the issuing company at a fixed price called
exercise price until the expiry date.

Welfare economics: a branch of economics that uses
microeconomic techniques to evaluate well-being (welfare)
at t he aggregate (economy-wide) level. A typical
methodology begins with the derivation (or assumption) of
a social welfare function, which can then be used to rank
economically feasible allocations of resources in terms of
the social welfare they entail.

Window dressing: a strategy used by mutual fund and
portfolio managers near the year or quarter end to improve
the appearance of the portfolio/fund performance before
presenting it to clients or shareholders. To window dress, the
fund manager will sell stocks with large losses and purchase
high flying stocks near the end of the quarter. These securities
are then reported as part of the fund’s holdings.

Withholding tax: the amount of an employee’s pay withheld
by the employer and sent directly to the government as partial
payment of income tax.

Working capital: a financial metric which represents
operating liquidity available to a business, organization or
other entity, including governmental entity. Along with fixed

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assets such as plant and equipment, working capital is
considered a part of operating capital.

World Trade Organization (WTO): an intergovernmental
organization which regulates international trade.

X-efficiency: the difference between efficient behavior of
businesses assumed or implied by economic theory and
their observed behavior in practice. It occurs when technical
efficiency is not being achieved due to a lack of competitive
pressure.

Yield: the income return on an investment. This refers to
the interest or dividends received from a security and is
usually expressed annually as a percentage based on the
investment’s cost, its current market value or its face value.

Compilation of the Writings on Economics
“Economics of the Future”

Economics of the Future Begins Today

APPLICATION OF ECONOMIC TEACHINGS TO
MODERN PROBLEMS
First we have to study the economic teachings in the light of
modern problems more thoroughly so that we may advocate
what the Founders of the Faith say and not what we
conjecture from Their Writings. There is great difference
between sounding a great general principle and finding its
application to actual prevailing conditions.
- Shoghi Effendi, Directives of the Guardian, p.21

For legal standards, political and economic theories are solely
designed to safeguard the interests of humanity as a whole,
and not humanity to be crucified for the preservation of the
integrity of any particular law or doctrine.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.42

… the Teachings of Bahá’u’lláh and ‘Abdu’l-Bahá do not
provide specific and detailed solutions to all such economic
questions which mostly pertain to the domain of technical
economics, and as such do not concern directly the Cause.
True, there are certain guiding principles in Bahá’í Sacred
Writings on the subject of economics, but these do by no
means cover the whole field of theoretical and applied
economics, and are mostly intended to guide further Bahá’í
economic writers and technicians to evolve an economic
system which would function in full conformity with the spirit
and the exact provisions of the Cause on this and similar
subjects. 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.
One thing, however, is certain that the Cause neither accepts

Compilation of the Writings of Economics

the theories of the Capitalistic economics in full, nor can it
agree with the Marxists and Communists in their repudiation
of the principle of private ownership and of the vital sacred
rights of the individual.
- Shoghi Effendi, Lights of Guidance, p.549–550. (From a
letter written on behalf of Shoghi Effendi to an individual
believer, 10 June 1930)

… the Writings are not so rich on this subject and many issues
at present baffling the minds of the world are not even
mentioned. The primary 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 the ideal conditions foretold by Bahá’u’lláh.
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.550. (From a letter written on behalf of Shoghi
Effendi to the National Spiritual Assembly of the United States
and Canada, 20 December 1931: Bahá’í News, No. 90,
March 1935, p.2)

BAHÁ’Í WORLD COMMONWEALTH
… inscrutable wisdom designed ultimately to weld the mutually
antagonistic elements of human society into a single,
organically-united, unshatterable world commonwealth.
- Shoghi Effendi, Messages to America, p.81

… which [state religion] in turn must give way to its assumption
of the rights and prerogatives associated with the Bahá’í state,
functioning in the plenitude of its powers, a stage which must
ultimately culminate in the emergence of the world-wide Bahá’í
Commonwealth, ….
- Shoghi Effendi, The Advent of Divine Justice, p.12

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… the precautionary and defensive measures to be devised,
co-ordinated, and carried out to counteract the full force of
the inescapable attacks which the organized efforts of
ecclesiastical organizations of various denominations will
progressively launch and relentlessly pursue; and, last but
not least, the multitudinous issues that must be faced, the
obstacles that must be overcome, and the responsibilities
that must be assumed, to enable a sore-tried Faith to pass
through the successive stages of unmitigated obscurity, of
active repression, and of complete emancipation, leading in
turn to its being acknowledged as an independent Faith,
enjoying the status of full equality with its sister religions, to
be followed by its establishment and recognition as a State
religion, which in turn must give way to its assumption of the
rights and prerogatives associated with the Bahá’í state,
functioning in the plenitude of its powers, a stage which must
ultimately culminate in the emergence of the world-wide
Bahá’í Commonwealth, animated wholly by the spirit, and
operating solely in direct conformity with the laws and
principles of Bahá’u’lláh.
- Shoghi Effendi, The Advent of Divine Justice, p.14–15

It is the structure of His New World Order, now stirring in the
womb of the administrative institutions He Himself has created,
that will serve both as a pattern and a nucleus of that world
commonwealth which is the sure, the inevitable destiny of the
peoples and nations of the earth.
- Shoghi Effendi, The Promised Day is Come, p.118

It is the superstructure of that self-same Order, attaining its full
stature through the emergence of the Bahá’í World

Compilation of the Writings of Economics

Commonwealth—the Kingdom of God on earth—which the
Golden Age of that same Dispensation must, in the fullness of
time, ultimately witness.
- Shoghi Effendi, God Passes By, p.26

For as the authority with which Bahá’u’lláh has invested the
future Bahá’í Commonwealth becomes more and more
apparent, the fiercer shall be the challenge which from every
quarter will be thrown at the verities it enshrines.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.18

And as the Bahá’í Faith permeates the masses of the peoples
of East and West, and its truth is embraced by the majority of
the peoples of a number of the Sovereign States of the world,
will the Universal House of Justice attain the plenitude of its
power, and exercise, as the supreme organ of the Bahá’í
Commonwealth, all the rights, the duties, and responsibilities
incumbent upon the world’s future super-state.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.7

It [the Monument Gardens—the resting place of the Greatest
Holy Leaf on Mount Carmel] marks, too, a further milestone
in the road leading eventually to the establishment of that
permanent world Administrative Centre of the future Bahá’í
Commonwealth, destined never to be separated from, and to
function in the proximity of, the Spiritual Centre of that Faith, ….
- Shoghi Effendi, God Passes By, p.348

To us, the “generation of the half-light,” living at a time
which may be designated as the period of the incubation of
the World Commonwealth envisaged by Bahá’u’lláh, has
been assigned a task whose high privilege we can never

Economics of the Future Begins Today

sufficiently appreciate, and the arduousness of which we
can as yet but dimly recognize.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.168–69

… the Faith of Bahá’u’lláh is now visibly succeeding in
demonstrating its claim and title to be regarded as a World
Religion, destined to attain, in the fullness of time, the status of
a world-embracing Commonwealth, which would be at once
the instrument and the guardian of the Most Great Peace
announced by its Author.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.196

The process of disintegration must inexorably continue, and its
corrosive influence must penetrate deeper and deeper into the
very core of a crumbling age. Much suffering will still be
required ere the contending nations, creeds, classes and races
of mankind are fused in the crucible of universal affliction, and
are forged by the fires of a fierce ordeal into one organic
commonwealth, one vast, unified, and harmoniously functioning
system. Adversities unimaginably appalling, undreamed of crises
and upheavals, war, famine, and pestilence, might well combine
to engrave in the soul of an unheeding generation those truths
and principles which it has disdained to recognize and follow.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.193

… it [The Declaration of Trust and By-Laws of the National
Spiritual Assembly of the United States] 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.
- Shoghi Effendi, Bahá’í Administration, p.135

Compilation of the Writings of Economics

This final and crowning stage [World Bahá’í Commonwealth]
in the evolution of the plan wrought by God Himself for
humanity will, in turn, prove to be the signal for the birth of
a world civilization, incomparable in its range, its character
and potency, in the history of mankind ….
- Shoghi Effendi, Messages to the Bahá’í World, p.155

BAHÁ’Í ECONOMIC SYSTEM
There are practically no technical teachings on economics in
the Cause, such as banking, the price system, and others.
The Cause is not an economic system, nor its Founders be
considered as having been 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. Bahá’u’lláh has given us a
few basic principles which should guide future Bahá’í
economists in establishing such institutions which will adjust
the economic relationships of the world.
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.551. (From a letter written on behalf of Shoghi
Effendi to an individual believer, 25 January 1936: Bahá’í News,
No. 103, October 1936, p.2)

With regard to your wish for reorganizing your business
along Bahá’í lines, Shoghi Effendi deeply appreciates the
spirit that has permitted you to make such a suggestion. But
he feels nevertheless that the time has not yet come for any
believer to bring about such a fundamental change in the
economic structure of our society, however restricted may
be the field for such an experiment. The economic teachings
of the Cause, though well known in their main outline, have

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not as yet been sufficiently elaborated and systematized to
allow anyone to make an exact and thorough application of
them even on a restricted scale.
- Shoghi Effendi, Directives of the Guardian, p.19–20

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.
- Shoghi Effendi, Lights of Guidance, p.550. (From a letter
written on behalf of Shoghi Effendi to an individual believer,
10 June 1930: Extracts from the Bahá’í Writings on the Subject
of Agriculture and Related Subjects, A Compilation of the
Universal House of Justice)

… the Writings are not so rich on this subject and many issues
at present baffling the minds of the world are not even
mentioned. The primary 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 the ideal condition foretold by Bahá’u’lláh.
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.550. (From a letter written on behalf of Shoghi
Effendi to the National Spiritual Assembly of the United States
and Canada, 20 December 1931: Bahá’í News, No. 90,
March 1935, p.2)

… Bahá’u’lláh did not bring a complete system of economics
to the world. Profit sharing is recommended as a solution to one
form of economic problems.
- Shoghi Effendi, Directives of the Guardian, p.20); and Lights
of Guidance, p.551 (From a letter written on behalf of the
Guardian to an individual believer, 19 November 1945: Bahá’í
News, No. 210, August 1948, p.3

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As regards the activities of the economic committee of the
National Assembly; Shoghi Effendi fully sympathizes with the
desire of some of the members to see the Committee find
ways and means to put into practice the economic teachings
of the Cause, as explained in some of the recorded Writings
and Sayings of Bahá’u’lláh and the Master. But he believes
that the time is not yet ripe for such activities.
- Shoghi Effendi, Directives of the Guardian, p.21

DIVINE ECONOMY
Does not the very operation of the world-unifying forces that
are at work in this age necessitate that He Who is the Bearer
of the Message of God in this day should not only reaffirm that
self-same exalted standard of individual conduct inculcated by
the Prophets gone before Him, but embody in His appeal, to all
governments and peoples, the essentials of that social code, that
Divine Economy, which must guide humanity’s concerted efforts
in establishing that all-embracing federation which is to
signalize the advent of the Kingdom of God on this earth?
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.61

In like manner are the Bahá’í economic principles the
embodiment of the highest aspirations of all wage-earning
classes and of economists of various schools.
- ‘Abdu’l-Bahá, Tablet to August Forel, p.26, Haifa,
21 September 1921

… By the statement ‘the economic solution is divine in nature’
is meant that religion alone can, in the last resort, bring in
man’s nature such a fundamental change as to enable him to
adjust the economic relationships of society. It is only in this

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way that man can control the economic forces that threaten to
disrupt the foundations of his existence, and thus assert his
mastery over the forces of nature.
- Shoghi Effendi, Lights of Guidance, p.551. (From a letter
written on behalf of Shoghi Effendi to an individual believer,
26 December 1935)

ECONOMIC RESOURCES
The economic resources of the world will be organized, its
sources of raw materials will be tapped and fully utilized, its
markets will be coordinated and developed, and the distribution
of its products will be equitably regulated.
… 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.
A world federal system, ruling the whole earth and
exercising unchallengeable authority over its unimaginably vast
resources, blending and embodying the ideals of both the East
and the West, liberated from the curse of war and its miseries,
and bent on the exploitation of all the available sources of
energy on the surface of the planet, a system in which Force
is made the servant of Justice, whose life is sustained by its
universal recognition of one God and by its allegiance to one

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common Revelation—such is the goal towards which humanity,
impelled by the unifying forces of life, is moving.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.204

Praise be to God! A wonderful thing is perceived: the lightning
and similar forces are subdued by a conductor, and act by His
Command. Exalted is the mighty One who hath made manifest
that which He desired, through His absolute, invincible command!
O people of Bahá! Each one of the revealed commands is
a strong fortress for the protection of the world. Verily this
oppressed One only wishes your security and elevation.
- Bahá’u’lláh, Bahá’í World Faith, p.183

From every standpoint the world of humanity is undergoing
a reformation. The laws of former governments and civilizations
are in process of revision; scientific ideas and theories are
developing and advancing to meet a new range of phenomena;
invention and discovery are penetrating hitherto unknown
fields, revealing new wonders and hidden secrets of the
material universe; industries have vastly wider scope and
production; everywhere the world of mankind is in the throes
of evolutionary activity indicating the passing of the old
conditions and advent of the new age of reformation.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.439,
New York, 17 November 1912

TARIFFS AND OTHER ECONOMIC BARRIERS
That 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

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the mechanism of international finance, is a fact which few
would venture to dispute.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.35

A world community in which all economic barriers will have
been permanently demolished and the interdependence of
Capital and Labour definitely recognized; ….
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.41

ECONOMIC ADJUSTMENT
The fourth principle or teaching of Bahá’u’lláh is the readjustment
and equalization of the economic standards of mankind. This
deals with the question of human livelihood. It is evident that
under present systems and conditions of government the poor are
subject to the greatest need and distress while others more fortunate
live in luxury and plenty far beyond their actual necessities.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.107,
Pittsburgh, Pennsylvania, 7 May 1912

Through the manifestation of God’s great equity the poor of the
world will be rewarded and assisted fully, and there will be a
readjustment in the economic conditions of mankind so that in the
future there will not be the abnormally rich nor the abject poor.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132,
Jersey City, New Jersey, 19 May 1912

The readjustment of the economic laws for the livelihood of man
must be effected in order that all humanity may live in the greatest
happiness according to their respective degrees.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.170,
New York, 2 June 1912

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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.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace,
p.181-182, Philadelphia, Pennsylvania, 9 June 1912

WORLD CURRENCY
… uniform and universal system of currency, of weights and
measures, will simplify and facilitate intercourse and
understanding among the nations and races of mankind.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

ECONOMIC PROBLEMS
a) The Nature and Causes of Economic Problems
It seems as though all creatures can exist singly and alone.
For example, a tree can exist solitary and alone on a given
prairie or in a valley or on the mountainside. An animal upon
a mountain or a bird soaring in the air might live a solitary
life. They are not in need of cooperation or solidarity. Such
animated beings enjoy the greatest comfort and happiness in
their respective solitary lives.
On the contrary, man cannot live singly and alone. He is
in need of continuous cooperation and mutual help. For
example, a man living alone in the wilderness will eventually
starve. He can never, singly and alone, provide himself with all
the necessities of existence. Therefore, he is in need of
co-operation and reciprocity.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.38

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Although the body politic is one family yet because of lack
of harmonious relations some members are comfortable and
some in direst misery, some members are satisfied and some
are hungry, some members are clothed in most costly garments
and some families are in need of food and shelter. Why?
Because this family lacks the necessary reciprocity and
symmetry. This household is not well arranged. This household
is not living under a perfect law. All the laws which are
legislated do not ensure happiness. They do not provide
comfort. Therefore 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.
Is it possible for one member of a family to be subjected
to the utmost misery and to abject poverty and for the rest of
the family to be comfortable? It is impossible unless those
members of the family be senseless, atrophied, inhospitable,
unkind. Then they would say, “Though these members do
belong to our family—let them alone.
Such utter indifference in the human family is due to
lack of control, to lack of a working law, to lack of kindness
in its midst. If kindness had been shown to the members of
this family surely all the members thereof would have
enjoyed comfort and happiness.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.38

Now the root cause of these difficulties lies in the law of
nature that governs present-day civilization, for it results in
a handful of people accumulating vast fortunes that far
exceed their needs, while the greater number remain
naked, destitute, and helpless.
- ‘Abdu’l-Bahá, Some Answered Questions, p.315

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The body of the human world is sick. Its remedy and healing
will be the oneness of the kingdom of humanity. Its life is the
Most Great Peace. Its illumination and quickening is love.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.19,
New York, 16 April 1912

Economic plans of reconstruction have been carefully
devised, and meticulously executed. And yet crisis has
succeeded crisis, and the rapidity with which a perilously
unstable world is declining has been correspondingly
accelerated. A yawning gulf threatens to involve in one
common disaster both the satisfied and dissatisfied nations,
democracies and dictatorships, capitalists and wage-earners,
Europeans and Asiatics, Jew and Gentile, white and coloured.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.190

b) The Solution to Economic Problems
The fundamentals of the whole economic condition are divine in
nature and are associated with the world of the heart and spirit.
This is fully explained in the Bahá’í teaching, and without
knowledge of its principles no improvement in the economic
state can be realized.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.238,
Boston, Massachusetts, 23 July 1912

The Bahá’í Cause covers all economic and social questions
under the heading and ruling of its laws. The essence of the
Bahá’í spirit is that, in order to establish a better social order
and economic condition, there must be allegiance to the laws
and principles of government.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.238,
Boston, Massachusetts, 23 July 1912

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‘Abdu’l-Bahá … has said: “All economic problems may be
solved by the application of the Science of the Love of
God.” That is to say: if the Rule called golden and treated as
if it were leaden (Worse: for lead has its uses but so far as
one may determine, the Golden Rule has been laid on a shelf
whose dust is seldom disturbed.)—if that Rule were actually
applied to the world’s economic problems, which if not
solved bid fair to destroy us, and the love of God, the sort
of love which makes a home life happy, were used as a
scientific measurement to regulate our international and
national affairs; to settle all relations between labour and
capital, between rich and poor: to regulate all coinage and
commerce, can there be any doubt that the results would be
far more conducive to human welfare than our present
policies have produced?
- Howard Colby Ives, Portals to Freedom, p.156

ROLE OF GOVERNMENTS IN ECONOMIC AFFAIRS
Subject to their approval a place should be fixed where they
would meet. There they should hold fast to the cord of
consultation and adopt and enforce that which is conducive
to the security, prosperity, wealth and tranquillity of the
people.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.92–93

It is incumbent upon the Trustees of the House of Justice to
take counsel together regarding those things which have not
outwardly been revealed in the Book, and to enforce that
which is agreeable to them.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.68; and quoted by
Shoghi Effendi in The World Order of Bahá’u’lláh, p.23

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All the governments of the world must be united and
organize an assembly the members of which should be
elected from the parliaments and the nobles of the nations.
These must plan with utmost wisdom and power so that
neither the capitalist suffer from enormous losses nor the
labourers become needy. In the utmost moderation they
should make the law; then announce to the public that the
rights of the working people are to be strongly preserved.
Also the rights of the capitalists are to be protected. When
such a general plan is adopted by the will of both sides,
should a strike occur, all the governments of the world
collectively should resist it. Otherwise, the labour problem
will lead to much destruction, ….
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

The intervention of the government and the courts in the
problems arising between owners and workers is fully
warranted, since these are not such particular matters as
are ordinary transactions between two individuals, which
do not concern the public and in which the government
should have no right to interfere. For problems between
owners and workers, though they may appear to be a private
matter, are detrimental to the common good, since the
commercial, industrial, and agricultural affairs, and even the
general business of the nation, are all intimately linked
together. An impairment to one is a loss to all. And since
the problems between owners and workers are detrimental
to the common good, the government and the courts have
therefore the right to intervene.
- ‘Abdu’l-Bahá, Some Answered Questions, p.318-319

Economics of the Future Begins Today

A world federal system, ruling the whole earth and exercising
unchallengeable authority over its unimaginably vast resources,
blending and embodying the ideals of both the East and the
West, liberated from the curse of war and its miseries, and
bent on the exploitation of all the available sources of energy
on the surface of the planet, a system in which Force is made
the servant of Justice, whose life is sustained by its universal
recognition of one God and by its allegiance to one common
Revelation—such is the goal towards which humanity, impelled
by the unifying forces of life, is moving.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.204

This commonwealth must, as far as we can visualize it, consist
of a world legislature, whose members will, as the trustees of
the whole of mankind, ultimately control the entire resources of
all the component nations, and will enact such laws as shall be
required to regulate the life, satisfy the needs and adjust the
relationships of all races and peoples. A world executive, backed
by an international Force, will carry out the decisions arrived at,
and apply the laws enacted by, this world legislature, and will
safeguard the organic unity of the whole commonwealth. A world
tribunal will adjudicate and deliver its compulsory and final verdict
in all and any disputes that may arise between the various elements
constituting this universal system. A mechanism of world inter-
communication will be devised, embracing the whole planet,
freed from national hindrances and restrictions, and functioning
with marvellous swiftness and perfect regularity. A world
metropolis will act as the nerve centre of a world civilization, the
focus towards which the unifying forces of life will converge and
from which its energizing influences will radiate.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

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MAN—NOT A MERE FACTOR IN PRODUCTION
Lofty is the station of man, were he to hold fast to
righteousness and truth and to remain firm and steadfast in
the Cause. In the eyes of the All-Merciful a true man
appeareth even as a firmament; its sun and moon are his
sight and hearing, and his shining and resplendent character
its stars. His is the loftiest station, and his influence educateth
the world of being.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.220

Man possesses conscious intelligence and reflection; nature
does not. This is an established fundamental among
philosophers. Man is endowed with volition and memory;
nature has neither. Man can seek out the mysteries latent in
nature, whereas nature is not conscious of her own hidden
phenomena. Man is progressive; nature is stationary, without
the power of progression or retrogression. Man is endowed
with ideal virtues—for example, intellection, volition, faith,
confession and acknowledgement of God—while nature is
devoid of all these. The ideal faculties of man, including the
capacity for scientific acquisition, are beyond nature’s ken.
These are powers whereby man is differentiated and
distinguished from all other forms of life.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.51,
Washington, D.C., 23 April 1912

EQUALITY
O children of men!
Know ye not why We created you all from the same dust? That
no one should exalt himself over the other. Ponder at all times

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in your hearts how ye were created. Since We have created
you all from one same substance it is incumbent on you to 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 and the essence
of detachment may be made manifest. Such is My counsel to
you, O concourse of light! Heed ye this counsel that ye may
obtain the fruit of holiness from the tree of wondrous glory.
- Bahá’u’lláh, The Hidden Words, Arabic No. 68

Likewise with regard to the party of ‘equality’ which seeks
the solution of the economic problems: until now all proposed
solutions have proved impracticable except the economic
proposals in the teachings of Bahá’u’lláh which are practicable
and cause no distress to society.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.305

But in the divine teachings equality is brought about through
a ready willingness to share. It is commanded as regards
wealth that the rich among the people, and the aristocrats
should, by their own free will and for the sake of their own
happiness, concern themselves with and care for the poor.
This equality is the result of the lofty characteristics and
noble attributes of mankind.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.44

Now the remedy [inequality of wealth] must be carefully
undertaken. It cannot be done by bringing to pass absolute
equality between men.
Equality is a chimera! It is entirely impracticable! Even if
equality could be achieved it could not continue—and if its
existence were possible, the whole order of the world would be

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destroyed. The law of order must always obtain in the world of
humanity. Heaven has so decreed in the creation of man.
- ‘Abdu’l-Bahá, Paris Talks, p.151–152

One must therefore enact such laws and regulations as will
moderate the excessive fortunes of the few and meet the
basic needs of the myriad millions of the poor, that a degree
of moderation may be achieved. However, absolute equality
is just as untenable, for complete equality in wealth, power,
commerce, agriculture, and industry would result in chaos
and disorder, disrupt livelihoods, provoke universal discontent,
and undermine the orderly conduct of the affairs of the
community. For unjustified equality is also fraught with peril.
It is preferable, then, that some measure of moderation be
achieved, and by moderation is meant the enactment of such
laws and regulations as would prevent the unwarranted
concentration of wealth in the hands of the few and satisfy
the essential needs of the many. For instance, the factory
owners reap a fortune every day, but the wage the poor
workers are paid cannot even meet their daily needs. This is
most unfair, and assuredly no just man can accept it.
- ‘Abdu’l-Bahá, Some Answered Questions, p.316

DIFFERENT DEGREES AND CAPACITIES OF MAN
Nevertheless, there will be preservation of degree because in
the world of humanity there must needs be degrees. The body
politic may well be likened to an army. In this army there must
be a general, there must be a sergeant, there must be a marshal,
there must be the infantry; but all must enjoy the greatest
comfort and welfare.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.41

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The arrangements of the circumstances of the people must
be such that poverty shall disappear, that everyone, as far as
possible, according to his rank and position, shall share in
comfort and well-being.
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.
- ‘Abdu’l-Bahá, Paris Talks, p.151

Some are full of intelligence, others have an ordinary
amount of it, and others again are devoid of intellect. In these
three classes of men there is order but not equality. How
could it be possible that wisdom and stupidity should be
equal? Humanity, like a great army, requires a general,
captains, under-officers in their degree, and soldiers, each
with their own appointed duties. Degrees are absolutely
necessary to ensure an orderly organization. An army could
not be composed of generals alone, or of captains only, or of
nothing but soldiers without one in authority. The certain result
of such a plan would be that disorder and demoralization
would overtake the whole army.
- ‘Abdu’l-Bahá, Paris Talks, p.152

The essence of the matter is that divine justice will become
manifest in human conditions and affairs, and all mankind will

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find comfort and enjoyment in life. It is not meant that all will
be equal, for inequality in degree and capacity is a property
of nature. Necessarily there will be rich people and also
those who will be in want of their livelihood, but in the
aggregate community there will be equalization and
readjustment of values and interests.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132,
Jersey City, New Jersey, 19 May 1912

For the community needs financier, farmer, merchant and
labourer just as an army must be composed of commander,
officers and privates. All cannot be commanders; all cannot
be officers or privates. Each in his station in the social fabric
must be competent—each in his function according to ability
but with justness of opportunity for all.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.216,
New York, 1 July 1912

When the laws He has instituted are carried out, there will
be no millionaires possible in the community and likewise
no extremely poor. This will be effected and regulated by
adjusting the different degrees of human capacity.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.217,
New York, 1 July 1912

Social inequality is the inevitable outcome of the natural
inequality of man. Human beings are different in ability and
should, therefore, be different in their social and economic
standing. Extremes of wealth and poverty should, however,
be abolished ….
- Shoghi Effendi, Directives of the Guardian, p.20

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PROFESSIONS AND CRAFTS
a) Work and Professions
… Whatever the progress of the machinery may be, man will
have always to toil in order to earn his living. Effort is an
inseparable part of man’s life. It may take different forms with
the changing conditions of the world, but it will be always present
as a necessary element in our earthly existence. Life is after all
a struggle. Progress is attained through struggle, and without
such a struggle life ceases to have a meaning; it becomes even
extinct. The progress of machinery has not made effort
unnecessary. It has given it a new form, a new outlet.
- Shoghi Effendi, Lights of Guidance, p.551. (From a letter written on
behalf of Shoghi Effendi to an individual believer, December 26, 1935)

It is enjoined upon every one of you to engage in some form of
occupation, such as crafts, trades and the like. We have
graciously exalted your engagement in such work to the rank of
worship unto God, the True One. Ponder ye in your hearts the
grace and the blessings of God and render thanks unto Him at
eventide and at dawn. Waste not your time in idleness and sloth.
Occupy yourselves with that which profiteth yourselves and
others. Thus hath it been decreed in this Tablet from whose
horizon the day-star of wisdom and utterance shineth resplendent.
The most despised of men in the sight of God are those
who sit idly and beg. Hold ye fast unto the cord of material
means, placing your whole trust in God, the Provider of all
means. When anyone occupieth himself in a craft or trade,
such occupation itself is regarded in the estimation of God as
an act of worship; and this is naught but a token of His infinite
and all-pervasive bounty.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.26

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With reference to Bahá’u’lláh’s command concerning the
engagement of the believers in some sort of profession; the
teachings are most emphatic on this matter, particularly the
statement in the Aqdas to this effect which makes it quite clear
that idle people who lack the desire to work can have no
place in the new World Order. As a corollary of this principle,
Bahá’u’lláh further states that mendicity should not only be
discouraged but entirely wiped out from the face of society. 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. Every individual, no
matter how handicapped and limited he may be, is under the
obligation of engaging in some work or profession, for work,
especially when performed in the spirit of service, is according
to Bahá’u’lláh, a form of worship. It has not only a utilitarian
purpose, but has a value in itself, because it draws us nearer
to God, and enables us to better grasp His purpose for us in
this world. It is obvious, therefore, that the inheritance of
wealth cannot make anyone immune from daily work.
- Shoghi Effendi, Directives of the Guardian, p.82–83

O MY SERVANTS!
Ye are the trees of My garden; ye must give forth goodly and
wondrous fruits, that ye yourselves and others may profit
therefrom. Thus it is incumbent on every one to engage in crafts
and professions, for therein lies the secret of wealth, O men of
understanding! For results depend upon means, and the grace
of God shall be all-sufficient unto you. Trees that yield no fruit
have been and will ever be for the fire.

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O MY SERVANTS!
The basest of men are they that yield no fruit on earth. Such
men are verily counted as among the dead, nay better are the
dead in the sight of God than those idle and worthless souls.
O MY SERVANT!
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, the Lord of all worlds.
- Bahá’u’lláh, The Hidden Words, Persian Nos. 80–82

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
in the estimation of men of wisdom, and especially in the eyes
of servants who dedicate themselves to the education of the
world and to the edification of its peoples.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.35

b) Arts and Crafts
The people of Bahá should not deny any soul the reward due
to him, should treat craftsmen with deference, and, unlike the
people aforetime, should not defile their tongues with abuse.
In this Day the sun of craftsmanship shineth above the horizon
of the occident and the river of arts is flowing out of the sea of that
region. One must speak with fairness and appreciate such bounty.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.38–39

The third Tajalli [effulgence] is concerning arts, crafts and
sciences. Knowledge is as wings to man’s life, and a ladder for
his ascent. Its acquisition is incumbent upon everyone. The
knowledge of such sciences, however, should be acquired as

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can profit the peoples of the earth, and not those which begin
with words and end with words. Great indeed is the claim of
scientists and craftsmen on the peoples of the world.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.51–52

AGRICULTURE AND THE FARMER
To solve this problem [economics] we must begin with the
farmer; there will we lay a foundation for system and order
because the peasant class and the agricultural class exceed other
classes in the importance of their service.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.39

The question of economics must commence with the farmer
and then be extended to the other classes inasmuch as the
number of farmers is greater than all other classes, many many
times greater. Therefore, it is fitting that the economic problem
be first solved with the farmer, for the farmer is the first active
agent in the body politic. In brief, from among the wise men
in every village a board should be organized and the affairs of
that village should be under the control of that board.
- ‘Abdu’l-Bahá, Lights of Guidance, p.548. (Extract from a
Tablet to an individual believer, 4 October 1912, translation
corrected in the World Centre, December 1985)

Special regard must be paid to agriculture. Although it hath
been mentioned in the fifth place, unquestionably it precedeth
the others.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.90

Of course conditions in the East differ where the Countries are
rarely industrial and mostly agricultural we should have to apply
different laws from the West and that is why the principles of

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the Movement strike at the root which is common to them
both. ‘Abdu’l-Bahá has developed in various of His talks,
which you will find in different compilations, the principles
upon which the Bahá’í economic system would be based.
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.
- Shoghi Effendi, Lights of Guidance, p.549. (From a letter
written on behalf of Shoghi Effendi to an individual believer,
28 October 1927: Extracts from the Bahá’í Writings on the
Subject of Agriculture and Related Subjects, A Compilation of
the Universal House of Justice)

As to your fourth question, Shoghi Effendi believes that it is
preferable not to confuse the methods explained by the Master
with present systems. They may have many resemblances but
also many points of difference. Moreover these general statements
we have in the teachings have to be explained and applied by the
House of Justice before we can really appreciate their significance.
- Shoghi Effendi, Lights of Guidance, p.549. (From a letter
written on behalf of Shoghi Effendi to an individual believer,
21 October 1932: Extracts from the Bahá’í Writings on the
Subject of Agriculture and Related Subjects, A Compilation of
the Universal House of Justice)

CAPITALIST AND CAPITALISM
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.
- ‘Abdu’l-Bahá, Paris Talks, p.153

… the best course is to seek moderation, which is for the
wealthy to recognize the advantages of moderation in the

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acquisition of profits and to show regard for the welfare of the
poor and the needy, that is, to fix a daily wage for the workers
and also to allot them a share of the total profits of the factory
- ‘Abdu’l-Bahá, Some Answered Questions, p.318

There is nothing in the teachings against some kind of capitalism;
its present form, though, would require adjustments to be made.
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.551. (From a letter written on behalf of the
Guardian to an individual believer, 19 November 1945: Bahá’í
News, No. 210, August 1948, p.3)

WORKMEN AND INDUSTRY
a) Factory—Labourers and Workmen
Laws must be made because it is impossible for the labourers
to be satisfied with the present system. They will strike every
month and every year. Finally, the capitalists will lose.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.44

… insofar as the mutual rights of the factory owners and the
workers are concerned, laws must be enacted that would enable
the former to make reasonable profits and the latter to be
provided with their present necessities and their future needs,
- ‘Abdu’l-Bahá, Some Answered Questions, p.318

For their part, the workers should not make excessive demands,
be recalcitrant, ask for more than they deserve, or go on strike.
They should obey and comply and make no demands for
exorbitant wages. Rather, the mutual and equitable rights of
both parties should be officially fixed and established
- ‘Abdu’l-Bahá, Some Answered Questions, p.318

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b) Factory—Shares and Profits
... to fix a daily wage for the workers and also to allot them a
share of the total profits of the factory.
- ‘Abdu’l-Bahá, Some Answered Questions, p.318

Also, every factory that has ten thousand shares will give two
thousand shares of these ten thousand to its employees and
will write the shares in their names, so that they may have
them, and the rest will belong to the capitalists. Then at the
end of the month or year whatever they may earn after the
expenses and wages are paid, according to the number of
shares, should be divided among both.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

WAGES
In brief, insofar as the mutual rights of the factory owners
and the workers are concerned, laws must be enacted that
would enable the former to make reasonable profits and the
latter to be provided with their present necessities and their
future needs, so that if they become incapacitated, grow old,
or die and leave behind small children, they or their children
will not be overcome by dire poverty but will receive a
modest pension from the revenues of the factory itself.
- ‘Abdu’l-Bahá, Some Answered Questions, p 318

For instance, the owners of properties, mines and factories
should share their incomes with their employees and give a
fairly certain percentage of their products to their workingmen
in order that the employees may receive, beside their wages,
some of the general income of the factory so that the employee
may strive with his soul in the work.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

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The Master has definitely stated that wages should be unequal,
simply because that men are unequal in their ability and hence
should receive wages that would correspond to their varying
capacities and resources.
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.551. (From a letter written on behalf of Shoghi
Effendi to an individual believer, 26 December 1935)

This view [refer to previous paragraph] seems to contradict
the opinion of some modern economists. But the friends should
have full confidence in the words of the Master, and should
give preference to His statements over those voiced by our
so-called modern thinkers.
- Shoghi Effendi, Lights of Guidance, p.551. (From a letter
written on behalf of Shoghi Effendi to an individual believer,
26 December 1935)

REPRESENTATIVES OF THE WAGE-EARNING CLASSES
… in the industrial world, where the representatives of the
wage-earning classes, either through violence or persuasion, are
capturing the seats of authority and wielding the sceptre of
power: in the field of religion, where we have lately witnessed
widespread and organized attempts to broaden and simplify the
basis of man’s faith, to achieve unity in Christendom and restore
the regenerating vigour of Islám; in the heart of society itself,
where the ominous signs of increasing extravagance and
profligacy are but lending fresh impetus to the forces of revolt
and reaction that are growing more distinct every day—in these
as in many others we have much cause for alarm, but much to
be hopeful and thankful for also.
- Shoghi Effendi, Bahá’í Administration, p.146

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TRADE UNIONS
Regarding your question about trade unions: The Guardian
considers that this is a matter for each National Spiritual Assembly
to advise the believers on. As long as the trade unions are not
members of any particular political party, there does not seem
to be any objection to the Bahá’ís belonging to them.
- Shoghi Effendi, Lights of Guidance, p.628. (From the Guardian’s
secretary in a letter written on his behalf dated 2 February 1951)

RETIREMENT
As to the question of retirement from work for individuals who
have reached a certain age, this is a matter on which the
International House of Justice will have to legislate as there are
no provisions in the Aqdas concerning it.
- Shoghi Effendi, Directives of the Guardian, p.83; and Lights of
Guidance, p.626. (From a letter written on behalf of the Guardian
to the National Spiritual Assembly of the United States and
Canada, 22 March 1937: Principles of Bahá’í Administration, p.12)

Even though you are 79 years old, that does not seem in your
case to be any handicap; and in this Cause, as the Guardian has
told us there is work for everyone of some sort, of whatever
age he or she may be.
- Shoghi Effendi, Lights of Guidance, p.626, (From a letter written
on behalf of the Guardian to an individual believer, 23 August
1954: cited by the Universal House of Justice, 14 December 1970)

PENSIONS
Therefore, laws and regulations should be enacted which would
grant the workers both a daily wage and a share in a fourth

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or fifth of the profits of the factory in accordance with its
means, or which would have the workers equitably share in
some other way in the profits with the owners. For the capital
and the management come from the latter and the toil and
labour from the former. The workers could either be granted
a wage that adequately meets their daily needs, as well as a
right to a share in the revenues of the factory when they are
injured, incapacitated, or unable to work, or else a wage
could be set that allows the workers to both satisfy their daily
needs and save a little for times of weakness and incapacity.
- ‘Abdu’l-Bahá, Some Answered Questions, p.317

STRIKES
You have asked about strikes. Great difficulties have arisen
and will continue to arise from this issue. The origin of these
difficulties is twofold: 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 to address both.
Now, the root cause of these difficulties lies in the law of
nature that governs present-day civilization, for it results in a
handful of people accumulating vast fortunes that far exceed
their needs, while the greater number remain naked, destitute,
and helpless. This is at once contrary to justice, to humanity,
and to fairness; it is the very height of inequity and runs counter
to the good-pleasure of the All-Merciful.
This disparity is confined to the human race: Among other
creatures, that is, among the animals, a certain kind of justice
and equality prevails. Thus there is equality within a shepherd’s
flock, or within a herd of deer in the wilderness, or among the

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songbirds that dwell in the mountains, plains, and orchards. The
animals of every species enjoy a measure of equality and do not
differ greatly from one another in their means of existence, and
thus they live in perfect peace and joy.
It is quite otherwise with the human race, where the greatest
oppression and injustice are to be found. Thus you can observe,
on the one hand, a single person who has amassed a fortune,
made an entire country his personal dominion, acquired immense
wealth, and secured an unceasing flow of gains and profits, and,
on the other, a hundred thousand helpless souls—weak,
powerless, and wanting even a mouthful of bread. There is
neither equality here nor benevolence. Observe how, as a result,
general peace and happiness have become so wanting, and the
welfare of humanity so undermined, that the lives of a vast
multitude have been rendered fruitless! For all the wealth, power,
commerce, and industry are concentrated in the hands of a few
individuals, while all others toil under the burden of endless
hardships and difficulties, are bereft of advantages and benefits,
and remain deprived of comfort and peace. One must therefore
enact such laws and regulations as will moderate the excessive
fortunes of the few and meet the basic needs of the myriad
millions of the poor, that a degree of moderation may be achieved.
However, absolute equality is just as untenable, for complete
equality in wealth, power, commerce, agriculture, and industry
would result in chaos and disorder, disrupt livelihoods, provoke
universal discontent, and undermine the orderly conduct of the
affairs of the community. For unjustified equality is also fraught
with peril. It is preferable, then, that some measure of moderation
be achieved, and by moderation is meant the enactment of such
laws and regulations as would prevent the unwarranted
concentration of wealth in the hands of the few and satisfy the

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essential needs of the many. For instance, the factory owners
reap a fortune every day, but the wage the poor workers are
paid cannot even meet their daily needs: This is most unfair, and
assuredly no just man can accept it. Therefore, 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 workers equitably share in some other way in the
profits with the owners. For the capital and the management
come from the latter and the toil and labour from the former.
The workers could either be granted a wage that adequately
meets their daily needs, as well as a right to a share in the
revenues of the factory when they are injured, incapacitated, or
unable to work, or else a wage could be set that allows the
workers to both satisfy their daily needs and save a little for
times of weakness and incapacity.
If matters were so arranged, neither would the factory owners
amass each day a fortune which is absolutely of no use to
them—for should one’s fortune increase beyond measure, one
would come under a most heavy burden, become subject to
exceeding hardships and troubles, and find the administration of
such an excessive fortune to be most difficult and to exhaust
one’s natural powers—nor would the workers endure such toil
and hardship as to become incapacitated and to fall victim, at
the end of their lives, to the direst need.
It is therefore clearly established that the appropriation of
excessive wealth by a few individuals, notwithstanding the needs
of the masses, is unfair and unjust, and that, conversely, absolute
equality would also disrupt the existence, welfare, comfort, peace,
and orderly life of the human race. Such being the case, the best
course is therefore to seek moderation, which is for the wealthy

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to recognize the advantages of moderation in the acquisition of
profits and to show regard for the welfare of the poor and the
needy, that is, to fix a daily wage for the workers and also to
allot them a share of the total profits of the factory.
In brief, insofar as the mutual rights of the factory owners
and the workers are concerned, laws must be enacted that
would enable the former to make reasonable profits and the
latter to be provided with their present necessities and their
future needs, so that if they become incapacitated, grow old, or
die and leave behind small children, they or their children will
not be overcome by dire poverty but will receive a modest
pension from the revenues of the factory itself.
For their part, the workers should not make excessive
demands, be recalcitrant, ask for more than they deserve, or go
on strike. They should obey and comply and make no demands
for exorbitant wages. Rather, the mutual and equitable rights of
both parties should be officially fixed and established according
to the laws of justice and compassion, and any party that violates
them should be condemned after a fair hearing and be subject
to a definitive verdict enforced by the executive branch, so that
all affairs may be appropriately ordered and all problems
adequately resolved.
The intervention of the government and the courts in the
problems arising between owners and workers is fully warranted,
since these are not such particular matters as are ordinary
transactions between two individuals, which do not concern the
public and in which the government should have no right to
interfere. For problems between owners and workers, though
they may appear to be a private matter, are detrimental to the
common good, since the commercial, industrial, and agricultural
affairs, and even the general business of the nation, are all

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intimately linked together: An impairment to one is a loss to all.
And since the problems between owners and workers are
detrimental to the common good, the government and the courts
have therefore the right to intervene.
Even in the case of differences that arise between two
individuals with regard to particular rights, a third party, namely
the government, is needed to resolve the dispute. How, then,
can the problem of strikes, which entirely disrupt the country—
whether they arise from the inordinate demands of the workers
or the excessive greed of the factory owners—remain neglected?
Gracious God! How can one see one’s fellow men hungry,
destitute, and deprived, and yet live in peace and comfort in
one’s splendid mansion? How can one see others in the greatest
need and yet take delight in one’s fortune? That is why it has
been decreed in the divine religions that the wealthy should offer
up each year a portion of their wealth for the sustenance of the
poor and the assistance of the needy. This is one of the
foundations of the religion of God and is an injunction binding
upon all. And since in this regard one is not outwardly compelled
or obliged by the government, but rather aids the poor at the
prompting of one’s own heart and in a spirit of joy and radiance,
such a deed is most commendable, approved, and pleasing.
This is the meaning of the righteous deeds mentioned in the
heavenly Books and Scriptures.
- ‘Abdu’l-Bahá, Some Answered Questions, p.315-320

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.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.238,
Boston, Massachusetts, 23 July 1912

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SOCIALIZATION
The question of socialization is very important. It will not be
solved by strikes for wages.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

UNEMPLOYMENT
That inter-governmental debts have imposed a severe strain
on the masses of the people in Europe, have upset the
equilibrium of national budgets, have crippled national
industries, and led to an increase in the number of the
unemployed, is no less apparent to an unprejudiced
observer.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.35

INDUSTRIAL SLAVERY
Between 1860 and 1865 you did a wonderful thing; you
abolished chattel slavery; but today you must do a much more
wonderful thing: you must destroy ‘industrial slavery’ …
- ‘Abdu’l-Bahá, Star of the West, Vol. VII, No. 15, p.147,
Quoted by J. E. Esselmont in Bahá’u’lláh and the New Era,
Industrial Slavery section, p.137

SCIENCE AND TECHNOLOGY
Science cannot create amity and fellowship in human hearts.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.171,
New York, 8 June 1912

The development and progress of a nation is according to the
measure and degree of that nation’s scientific attainments.

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Through this means its greatness is continually increased, and
day by day the welfare and prosperity of its people are assured.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.49,
Washington, D.C., 23 April 1912

A scientific man is a true index and representative of humanity,
for through processes of inductive reasoning and research he
is informed of all that appertains to humanity, its status,
conditions and happenings. He studies the human body politic,
understands social problems and weaves the web and texture
of civilization. In fact, science may be likened to a mirror
wherein the infinite forms and images of existing things are
revealed and reflected. It is the very foundation of all individual
and national development. Without this basis of investigation,
development is impossible.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.50,
Washington, D.C., 23 April 1912

USE OF TECHNICAL KNOWLEDGE
According to some accounts, mankind has been directed to
borrow various good qualities and ways from wild animals,
and to learn a lesson from these. Since it is permissible to
imitate virtues of dumb animals, it is certainly far more so to
borrow material sciences and techniques from foreign peoples,
who at least belong to the human race and are distinguished
by judgement and the power of speech. And if it be contended
that such praiseworthy qualities are inborn in animals, by what
proof can they claim that these essential principles of civilization,
this knowledge and these sciences current among other peoples,
are not inborn?
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.30

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It has now been clearly and irrefutably shown that the
importation from foreign countries of the principles and
procedures of civilization, and the acquisition from them of
sciences and techniques—in brief, of whatsoever will contribute
to the general good—is entirely permissible.
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.31–32

Can we maintain that it is contrary to the fundamentals of the
Faith to encourage the acquisition of useful arts and of general
knowledge, to inform oneself 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? Would it conflict with the
worship of God to establish law and order in the cities and
organize the rural districts, to repair the roads and build
railroads and facilitate transportation and travel and thus
increase the people’s well-being? Would it be inconsistent
with the Divine commands and prohibitions if we were to
work the abandoned mines which are the greatest source of
the nation’s wealth, and to build factories, from which come
the entire people’s comfort, security and affluence? Or to
stimulate the creation of new industries and to promote
improvements in our domestic products?
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.101–102

One should regard the other technological advances, sciences,
arts and political formulae of proven usefulness in the same
light—i.e., those procedures which, down the ages, have time
and again been put to the test and whose many uses and
advantages have demonstrably resulted in the glory and greatness
of the state, and the well-being and progress of the people.
Should all these be abandoned, for no valid reason, and other

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methods of reform be attempted, by the time such reforms
might eventuate, and their advantages might be put to proof,
many years would go by, and many lives.
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.113–114

WASTAGE ON WARS
Peace is the pretext, and night and day they are all straining
every nerve to pile up more weapons of war, and to pay for this
their wretched people must sacrifice most of whatever they are
able to earn by their sweat and toil. How many thousands have
given up their work in useful industries and are labouring day
and night to produce new and deadlier weapons which would
spill out the blood of the race more copiously than before.
Each day they invent a new bomb or explosive and then the
governments must abandon their obsolete arms and begin
producing the new, since the old weapons cannot hold their
own against the new.
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.61–62

Observe that if such a happy situation be forthcoming, no
government would need continually to pile up the weapons of
war, nor feel itself obliged to produce ever new military weapons
with which to conquer the human race. A small force for the
purposes of internal security, the correction of criminal and
disorderly elements and the prevention of local disturbances,
would be required—no more. In this way the entire population
would, first of all, be relieved of the crushing burden of
expenditure currently imposed for military purposes, and
secondly, great numbers of people would cease to devote their
time to the continual devising of new weapons of destruction ….
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.65–66

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It is incumbent upon the ministers of the House of Justice to
promote the Lesser Peace so that the people of the earth
may be relieved from the burden of exorbitant expenditures.
This matter is imperative and absolutely essential, inasmuch
as hostilities and conflict lie at the root of affliction and
calamity.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.89

… fathers, mothers, children in grief and lamentation, the
foundations of life overturned, cities laid waste and fertile lands
made desolate by the ravages of war. These conditions are the
outcome of hostility and hatred between nations and peoples of
religion who imitate and adhere to the forms and violate the
spirit and reality of the divine teachings.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.439,
New York, 17 November 1912

If two nations were at war in olden times, ten or twenty thousand
would be sacrificed, but in this century the destruction of one
hundred thousand lives in a day is quite possible. So perfected
has the science of killing become and so efficient the means and
instruments of its accomplishment that a whole nation can be
obliterated in a short time.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace,
p.123-124, New York, 13 May 1912

… the vast and ever-swelling army of the unemployed with its
crushing burden and demoralizing influence on governments
and peoples; the wicked, unbridled race of armaments
swallowing an ever-increasing share of the substance of already
impoverished nations; ….
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.32

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That the spirit of vindictiveness, of suspicion, of fear and
rivalry, engendered by the war, and which the provisions of
the Peace Treaties have served to perpetuate and foster, has
led to an enormous increase of national competitive armaments,
involving during the last year the aggregate expenditure of no
less than a thousand million pounds, which in turn has
accentuated the effects of the world-wide depression, is a
truth that even the most superficial observer will readily admit.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p 35

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.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.204

STOREHOUSES AND TAXATION
a) Village Storehouses
The solution begins with the village, and when the village is
reconstructed, then the cities will be also. The idea is this,
that in each village will be erected a storehouse. In the
language of Religion it is called the House of Finance. That
is a universal storehouse, which is commenced in the village.

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Its administration is through a committee of the wise ones of
the community, and with the approval of that committee all
the affairs are directed.
- ‘Abdu’l-Bahá, Quoted by George Orr Latimer in Light of the
World, 1920, p.47; and The Bahá’í World, Vol. IV, p.450

In brief, from among the wise men in every village a board
should be organized and the affairs of that village should be
under the control of that board.
- ‘Abdu’l-Bahá, Lights of Guidance, p.548. (Extract from a
Tablet to an individual believer, 4 October 1912, translation
corrected in the World Centre, December 1985)

Likewise a general storehouse should be founded with the
appointment of a secretary. At the time of the harvest, with the
approval of the members of that board, a determined percentage
of the entire harvest should be appropriated for the storehouse.
- ‘Abdu’l-Bahá, Lights of Guidance, p.548. (Extract from a
Tablet to an individual believer, 4 October 1912, translation
corrected in the World Centre, December 1985)

The board of the house of finance (storehouse) will direct in every
village the revenues of the house such as tithes, tax on animals,
etc. In every village a storehouse and an officer-in-charge are to
be provided while the notables of the village gather and form a
board and to this board and officer the direction of the affairs
of the village are entrusted. They take charge of all the questions
pertaining to the village and the revenues of the storehouse such
as tithes, tax on animals and other revenues are gathered in it
and are given out for necessary expenditures.
- ‘Abdu’l-Bahá, Extract from a Tablet of ‘Abdu’l-Bahá dated 25
July 1919, to an individual believer, sent by the Universal
House of Justice to the compiler.

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b) City Storehouses
For larger cities, naturally, there will be a system on a larger
scale. Were I to go into that solution the details thereof would
be very lengthy.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.41

c) Storehouse Revenues
The storehouse is to have seven revenues: Tithes, taxes on
animals, wealth without inheritors, all things found whose owners
cannot be discovered, a third of all treasures (money) found in
the earth, a third of the mines, and voluntary contributions.
- ‘Abdu’l-Bahá, Lights of Guidance, p.548. (Extract from a Tablet
to an individual believer, dated 4 October, 1912, translation
corrected in the World Centre, December 1985)

As to the revenues of the storehouse, the House of justice must
strive by every means possible to increase that amount, i.e. by
every just means.
- ‘Abdu’l-Bahá, Extract from a Tablet of ‘Abdu’l-Bahá dated
25 July 1919, to an individual believer, sent by the Universal
House of Justice to the compiler.

First, whatever contributions are necessary, they obtain from the
bank at interest. For instance, they borrow from the bank at three
per cent and loan to the public at four per cent. Any farmer who
is in need of implements, they supply and give him all his necessities.
When the crop is harvested, it will be the first income (of the
store-house). The first revenue is this. But this revenue is not
equally distributed. For instance, a person may have a crop of
one thousand kilos and this is only sufficient for his wants and
living. From him nothing will be taken because he needs it all. If
something is taken from him, he will remain hungry. But again,

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there may be one whose needs require one thousand kilos and
his income is two thousand kilos. From him one-tenth is taken.
Again, one needs two thousand kilos, but his income is ten
thousand kilos. From him two-tenths will be taken. He needs
two thousand kilos. If two thousand are taken from him he still
has six thousand remaining. One has fifty thousand kilos, from him
one-third is taken. One may have ten thousand kilos expenses,
but has one hundred thousand kilos income. One-half is taken.
The greater the income, the greater is the ratio (of taxation).
Second: It is also the same with the cattle. They take
proportionately the revenue from the cattle. For example, if a
man has two cows necessary for his wants, nothing is taken
from him. The more he has, the more is taken from him. This
is the second revenue.
The third revenue of the store-house comes from one who dies
without heirs.
The fourth revenue comes from mines. If a mine is found upon
the land of a person, one-third of it belongs to him and the
remainder to the store-house.
The fifth revenue is hidden treasure. If a person finds a hidden
treasure (in the earth) he takes half of it, and the other half goes
to the store-house.
The sixth revenue. If it (treasure) is found on the way, also half
of it belongs to the store-house.
The seventh revenue is voluntary contributions. Of their own
free will and with the utmost willingness, the people will give.
- ‘Abdu’l-Bahá, Quoted by George Orr Latimer in Light of the
World, 1920, p.47–48; and The Bahá’í World, Vol. IV, p.450

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d) Storehouse Expenditures
On the other hand, there are seven expenditures:
1. General running expenses of the institution—salaries etc.,
and the administration of public safety, including the
department of hygiene.
2. Tithes to the general government (State).
3. Taxes on animals for the State.
4. Support of an orphanage.
5. Support of cripples and the incurable.
6. Support of educational institutions.
7. Supplying any deficiency for the expenses of the poor.

- ‘Abdu’l-Bahá, Lights of Guidance, p.548–549. (Extract from a
Tablet to an individual believer, dated 4 October 1912,
translation corrected in the World Centre, December 1985)

These are the seven revenues, but there are seven fixed
expenditures.
The first expenditure: The store-house ought to give one-
tenth to the Government, to the public treasury for the public
expenses.
The second expenditure is for the poor. The poor who are in
need, those who are exempt, not those who are idle. For
instance, if a person’s crop is burned or he has a loss in his
business, and for this reason has become poor; these poor
people are to be taken care of.
Third: The infirm, who come to want and cannot work.

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Fourth: The orphans. To them also help must be given.
Fifth: The schools. The schools must be organized for the
education of the children.
Sixth: For the deaf and blind.
Seventh: Public health. Whatever is necessary for the public
health must be arranged. Swamps should be filled up, water
should be brought in; whatever is necessary for the public
health.
- ‘Abdu’l-Bahá, Quoted by George Orr Latimer in Light of the
World, 1920, p.48–49; and The Bahá’í World, Vol. IV, p.450-451

e) The National Treasury
If there is something left over (after these expenditures) it should
be given to the Great House of Justice. And thus there will be
no want in the village. The people will not remain hungry, they
will not remain naked. All will be in the utmost welfare and
comfort.
- ‘Abdu’l-Bahá, Quoted by George Orr Latimer in Light of the
World, 1920, p.49

The farmers will be taken care of and if after all these expenses
are defrayed any surplus is found in the storehouse it must be
transferred to the national treasury.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.40

If anything is left in the storehouse, that must be transferred
to the general treasury of the nation for general national
expenses.
- ‘Abdu’l-Bahá, Letter to an individual dated 4 October 1912,
sent by the Universal House of Justice to the compiler

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f) Trustees
Certain trustees will be elected by the people in a given village
to look after these transactions.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.40

g) Trusts
No more trusts will remain in the future. The question of the
trusts will be wiped away entirely.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

h) Taxation
O kings of the earth! We see you increasing every year your
expenditures, and laying the burden thereof on your subjects.
This, verily, is wholly and grossly unjust. Fear the sighs and
tears of this wronged One, and lay not excessive burdens on
your peoples. Do not rob them to rear palaces for yourselves;
nay rather choose for them that which ye choose for yourselves.
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh,
p.253; and The Proclamation of Bahá’u’lláh, p.12

As to the first [revenue], the tenths or tithes: we will consider
a farmer, one of the peasants. We will look into his income.
We will find out, for instance, what is his annual revenue and
also what are his expenditures. Now, if his income be equal
to his expenditures, from such a farmer nothing whatever will
be taken. That is, he will not be subjected to taxation of any
sort, needing as he does all his income. Another farmer may
have expenses running up to one thousand dollars we will
say, and his income is two thousand dollars. From such an
one a tenth will be required, because he has a surplus. But
if his income be ten thousand dollars and his expenses one

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thousand dollars or his income twenty thousand dollars, he
will have to pay as taxes, one-fourth. If his income be one
hundred thousand dollars and his expenses five thousand,
one-third will he have to pay because he has still a surplus
since his expenses are five thousand and his income one
hundred thousand. If he pays, say, thirty-five thousand dollars,
in addition to the expenditure of five thousand he still has
sixty thousand left. But if his expenses be ten thousand and
his income two hundred thousand then he must give an even
half because ninety thousand will be in that case the sum
remaining. Such a scale as this will determine allotment of
taxes. All the income from such revenues will go to this
general storehouse.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.40

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 production 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 equalize or adjust. Therefore, taxation will
be proportionate to capacity and production, and there will be
no poor in the community.
Bahá’u’lláh, likewise, commanded the rich to give freely to
the poor. In the Kitáb-i-Aqdas it is further written by Him that
those who have a certain amount of income must give one-fifth
of it to God, the Creator of heaven and earth.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.217,
New York, 1 July 1912

Compilation of the Writings of Economics

Rate of Interest
Many people stand in need of this. Because if there were no
prospect for gaining interest, the affairs of men would suffer
collapse or dislocation. One can seldom find a person who
would manifest such consideration towards his fellow-man, his
countryman or towards his own brother and would show such
tender solicitude for him as to be well-disposed to grant him
a loan on benevolent terms. [Such loans as bear no interest
and are repayable whenever the borrower pleases].Therefore
as a token of favour towards men We have prescribed that
interest on money should be treated like other business
transactions that are current amongst men. Thus, … it is lawful
and proper to charge interest on money, that the people of the
world may, in a spirit of amity and fellowship and with joy and
gladness, devotedly engage themselves in magnifying the Name
of Him Who is the Well-Beloved of all mankind. … He hath
now made interest on money lawful, even as He had made it
unlawful in the past. ….
… However, this is a matter that should be practised with
moderation and fairness. …
Nevertheless the conduct of these affairs hath been
entrusted to the men of the House of Justice that they may
enforce them according to the exigencies of the time and the
dictates of wisdom.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.133–134

WEALTH
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

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for philanthropic purposes. Above all, if a judicious and
resourceful individual should initiate measures which would
universally enrich the masses of the people, there could be
no undertaking greater than this, and it would rank in the
sight of God as the supreme achievement, for such a
benefactor would supply the needs and insure the comfort
and well-being of a great multitude. Wealth is most
commendable, provided the entire population is wealthy. If,
however, a few have inordinate riches while the rest are
impoverished, and no fruit or benefit accrues from that wealth,
then it is only a liability to its possessor. If, on the other
hand, it is expended for the promotion of knowledge, the
founding of elementary and other schools, the encouragement
of art and industry, the training of orphans and the poor—in
brief, if it is dedicated to the welfare of society—its possessor
will stand out before God and man as the most excellent of
all who live on earth and will be accounted as one of the
people of paradise.
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.24–25

a) The Distribution of Wealth
That the financial obligations contracted in the course of
the war, as well as the imposition of a staggering burden
of reparations upon the vanquished, have, to a very great
extent, been responsible for the mal-distribution and
consequent shortage of the world’s monetary gold supply,
which in turn has, to a very great measure, accentuated
the phenomenal fall in prices and thereby relentlessly
increased the burdens of impoverished countries, no
impartial mind would question.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.35

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b) The Limitation of Wealth
Hearts must be so cemented together, love must become so
dominant that the rich shall most willingly extend assistance
to the poor and take steps to establish these economic
adjustments permanently. If it is accomplished in this way, it
will be most praiseworthy because then it will be for the
sake of God and in the pathway of His service.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.239,
Boston, 23 July 1912

There must be special laws made, dealing with these
extremes of riches and of want. The members of the
Government should consider the laws of God when they are
framing plans for the ruling of the people. The general rights
of mankind must be guarded and preserved.
- ‘Abdu’l-Bahá, Paris Talks, p.153–154

The rich too must be merciful to the poor, contributing from
willing hearts to their needs without being forced or
compelled to do so.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.107,
Pittsburgh, 7 May 1912

The greatest means for prevention is that whereby 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. One of Bahá’u’lláh’s teachings is the adjustment
of means of livelihood in human society. Under this
adjustment there can be no extremes in human conditions
as regards wealth and sustenance.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.216,
New York, 1 July 1912

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Social inequality is the inevitable outcome of the natural
inequality of man. Human beings are different in ability and
should, therefore, be different in their social and economic
standing. Extremes of wealth and poverty should, however,
be abolished ….
- Shoghi Effendi, Directives of the Guardian, p.20; and Lights
of Guidance, p.550. (From a letter written on behalf of Shoghi
Effendi to an individual believer, 26 January 1935)

MODERATION
In all matters moderation is desirable. If a thing is carried to
excess, it will prove a source of evil. Consider the civilization of
the West, how it hath agitated and alarmed the peoples of the
world. An infernal engine hath been devised, and hath proved
so cruel a weapon of destruction that its like none hath ever
witnessed or heard.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.69

Fear ye God, and take heed not to outstrip the bounds of
moderation, and be numbered among the extravagant.
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh, p.251

WELFARE
Regarding reciprocity and cooperation: each member of the
body politic should live in the utmost comfort and welfare
because each individual member of humanity is a member of
the body politic and if one member of the members be in
distress or be afflicted with some disease all the other members
must necessarily suffer.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.38

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The good pleasure of God consists in the welfare of all the
individual members of mankind.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.41

Bahá’u’lláh set forth principles of guidance and teaching for
economic readjustment. Regulations were revealed by Him
which ensure the welfare of the commonwealth.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.181,
Philadelphia, 9 June 1912

Human brotherhood and dependence exist because mutual
helpfulness and cooperation are the two necessary principles
underlying human welfare.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.150,
New York, 28 May 1912

THE POOR AND NEEDY
Thou must show forth that which will ensure the peace and the
well-being of the miserable and the downtrodden.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.84

Know ye that the poor are the trust of God in your midst.
Watch that ye betray not His trust, that ye deal not unjustly
with them and that ye walk not in the ways of the
treacherous. Ye will most certainly be called upon to answer
for His trust on the day when the Balance of Justice shall
be set, the day when unto every one shall be rendered his
due, when the doings of all men, be they rich or poor, shall
be weighed.
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh,
p.251; and The Proclamation of Bahá’u’lláh, p.9

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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 and on the wealthy to make adequate provision for them.
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 147, p.72

O SON OF MAN!
Should prosperity befall thee, rejoice not, and should
abasement come upon thee, grieve not, for both shall pass
away and be no more.
O SON OF BEING!
If poverty overtake thee, be not sad; for in time the Lord of
wealth shall visit thee. Fear not abasement, for glory shall one
day rest on thee.
O SON OF MAN!
Bestow My wealth upon My poor, that in heaven thou mayest
draw from stores of unfading splendour and treasures of
imperishable glory. But by My life! To offer up thy soul is a
more glorious thing couldst thou but see with Mine eye.
- Bahá’u’lláh, The Hidden Words, Arabic Nos. 52, 53 and 57

O CHILDREN OF DUST!
Tell the rich of the midnight sighing of the poor, lest heedlessness
lead them into the path of destruction, and deprive them of the
Tree of Wealth. To give and to be generous are attributes of
Mine; well is it with him that adorneth himself with My virtues.
O SON OF MY HANDMAID!
Be not troubled in poverty nor confident in riches, for poverty is
followed by riches, and riches are followed by poverty. Yet to be
poor in all save God is a wondrous gift, belittle not the value
thereof, for in the end it will make thee rich in God, and thus thou

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shalt know the meaning of the utterance, “In truth ye are the poor,”
and the holy words, “God is the all-possessing,” shall even as the
true morn break forth gloriously resplendent upon the horizon of
the lover’s heart, and abide secure on the throne of wealth.
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.
- Bahá’u’lláh, The Hidden Words, Persian Nos. 49, 51 and 54

O people of wealth and riches! If you see a poor man suffering
from any calamity, do not run away from him but sit with him
and ask him about the things heaped upon him from the seas
of determination and predestination.
- ‘Abdu’l-Bahá, The Bahá’í World, Vol. IV, p.453

Then the orphans will be looked after, all of whose expenses will
be taken care of. The cripples in the village—all their expenses will
be looked after. The poor in the village—their necessary expenses
will be defrayed. And other members who for valid reasons are
incapacitated—the blind, the old, the deaf—their comfort must be
looked after. In the village no one will remain in need or in want.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.40

The rich will enjoy the privilege of this new economic condition
as well as the poor, for owing to certain provisions and
restrictions they will not be able to accumulate so much as to
be burdened by its management, while the poor will be relieved
from the stress of want and misery. The rich will enjoy his
palace, and the poor will have his comfortable cottage.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132,
New Jersey, 19 May 1912

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What could be better before God than thinking of the poor?
For the poor are beloved by our heavenly Father. When
Christ came upon the earth, those who believed in Him and
followed Him were the poor and lowly, showing that the
poor were near to God.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.216,
New York, 1 July 1912

They who are possessed of riches, however, must have the
utmost regard for the poor, for great is the honour destined by
God for those poor who are steadfast in patience. By My life!
There is no honour, except what God may please to bestow,
that can compare to this honour. 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.
Please God, 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. He can enrich, through His grace, whomsoever
He pleaseth. He, verily, hath power over all things ….
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh,
p.202-203

Regarding your question concerning helping the poor: The Bahá’ís
should not go so far as to refrain from extending charity to the
needy, if they are able and willing to do so. However, in this,
as in many other things, they should exert moderation. The
greatest gift that we can give to the poor and the down-trodden
is to aid to build up the divine institutions inaugurated in this day

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by Bahá’u’lláh as these institutions, and this World Order when
established, will eliminate the causes of poverty and the injustices
which afflict the poor. We should, therefore, do both, support
our Bahá’í Fund, and also be kind and generous to the needy.
- Shoghi Effendi, Lights of Guidance, p.124–125. (From a letter
written on his behalf to an individual believer, 11 March 1942)

CHARITY AND ENDOWMENT
This Bahá’í teaching of human fellowship and kindness implies
that we must be always ready to extend every assistance and help
we can to those who are in distress and suffering. Bahá’í charity
is of the very essence of the Teachings, and should therefore be
developed in every Bahá’í community. Charitable institutions such
as orphanages, free schools and hospitals for the poor, constitute
an indispensable part of the Mashriqu’l-Adhkár. It is the
responsibility of every local Bahá’í community to insure the welfare
of its poor and needy members, through whatever means possible.
But, of course, this extension of assistance to the poor, in
whatever form, should under no circumstances be allowed to
seriously interfere with the major collective interests of the Bahá’í
Community, as distinguished from the purely personal interests
of its members. The demands of the Cause transcend those of
the individual, and should therefore be given precedence. But
these two phases of Bahá’í social life, though not of equal
importance, are by no means contradictory. Both of them are
essential, and should be fostered, but each according to its own
degree of importance. It is the responsibility of Bahá’í Assemblies
to decide when individual interests should be subordinated to
those affecting the collective welfare of the community. But, as
already stated, the interest of the individual should always be

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safeguarded within certain limits, and provided they do not
seriously affect the welfare of the group as a whole.
- Shoghi Effendi, Lights of Guidance, p.120–121. (From a letter
written on his behalf to an individual believer, 26 June 1936

Charity is pleasing and praiseworthy in the sight of God and is
regarded as a prince among goodly deeds. Consider ye and call
to mind that which the All-Merciful hath revealed in the Qur’án:
‘They prefer them before themselves, though poverty be their
own lot. And with such as are preserved from their own
covetousness shall it be well.’’ Viewed in this light, the blessed
utterance above is, in truth, the day-star of utterances. Blessed is
he who preferreth his brother before himself. Verily, such a man
is reckoned, by virtue of the Will of God, the All-Knowing, the
All-Wise, with the people of Bahá who dwell in the Crimson Ark.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.71

It is not necessary to undertake special journeys to visit the
resting-places of the dead. If people of substance and affluence
offer the cost of such journeys to the House of Justice, it will
be pleasing and acceptable in the presence of God. Happy are
they that observe His precepts.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.27–28

Everyone, whether man or woman, should hand over to a trusted
person a portion of what he or she earneth through trade,
agriculture or other occupation, for the training and education of
children, to be spent for this purpose with the knowledge of the
Trustees of the House of Justice.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.90

As it is a blessed day [Naw-Rúz] it should not be neglected or

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left without results by making it a day limited to the fruits of mere
pleasure. During such blessed days institutions should be founded
that may be of permanent benefit and value to the people so that
in their conversations and in history it may become widely known
that such a good work was inaugurated on such a feast day.
Therefore, the intelligent must look searchingly into conditions to
find out what important affair, what philanthropic institutions are
most needed, and what foundations should be laid for the
community on that particular day, so that they may be established.
… If the community be in need of spreading sciences and widening
the circle of knowledge, on that day they should proceed in that
direction, that is to say, direct the thoughts of all the people to that
philanthropic cause. If, however, the community is in need of
widening the circle of commerce or industry or agriculture, they
should inaugurate the means of attaining the desired aim. If the
community needs protection, proper support and care of orphans,
they should act upon the welfare of the orphans, and so forth.
Such undertakings as are beneficial to the poor, the weak and the
helpless should be pursued in order that, on that day, through the
unity of all and through great meetings, results may be obtained,
the glory and blessings of that day may be declared and manifest.
- ‘Abdu’l-Bahá, A Blessed Day, A talk published by Dr. Baher
Forghani in Days to Remember, p.26; part in Lights of Guidance,
p.303–304; Star of the West, Vol. IX, No. 1, p.8–9; and cited in a
compilation, prepared by the Office of Social and Economic
Development, entitled Social and Economic Development.

TITHES
Bahá’u’lláh states that the Bahá’í law of Zakát [Tithes] follows
“what hath been revealed in the Qur’án” (Q and A 107).
- Bahá’u’lláh, The Kitáb-i-Aqdas, Questions and Answers
section, No. 107, p.140

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Since such issues as the limits for exemption, the categories of
income concerned, the frequency of payments, and the scale
of rates for the various categories of Zakát are not mentioned
in the Qur’án, these matters will have to be set forth in the
future by the Universal House of Justice. Shoghi Effendi has
indicated that pending such legislation the believers should,
according to their means and possibilities, make regular
contributions to the Bahá’í Fund.
- Bahá’u’lláh, The Kitáb-i-Aqdas, Notes No. 161, p.235

VOLUNTARY SHARING—GREATER THAN EQUALITY
To state the matter briefly, the Teachings of Bahá’u’lláh
advocate voluntary sharing, and this is a greater thing than the
equalization of wealth. For equalization must be imposed from
without, while sharing is a matter of free choice.
Man reacheth perfection through good deeds, voluntarily
performed, not through good deeds the doing of which was
forced upon him. And sharing is a personally chosen righteous
act: that is, the rich should extend assistance to the 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. For the harvest of force is turmoil and the ruin of the
social order. On the other hand voluntary sharing, the freely-
chosen expending of one’s substance, leadeth to society’s
comfort and peace.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.115

And among the teachings of Bahá’u’lláh is voluntary sharing of
one’s property with others among mankind. This voluntary sharing
is greater than equality, and consists in this, that man should not

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prefer himself to others, but rather should sacrifice his life
and property for others. But this should not be introduced by
coercion so that it becomes a law and man is compelled to
follow it. Nay, rather, man should voluntarily and of his own
choice sacrifice his property and life for others, and spend
willingly for the poor, just as is done in Persia among the Bahá’ís.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.302

In the Bolshevistic principles equality is effected through
force. The masses who are opposed to the people of rank and
to the wealthy class desire to partake of their advantages.
But in the divine teachings equality is brought about
through a ready willingness to share. It is commanded as
regards wealth that the rich among the people, and the
aristocrats should, by their own free will and for the sake of
their own happiness, concern themselves with and care for
the poor. This equality is the result of the lofty characteristics
and noble attributes of mankind.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.44

DIVINE CIVILIZATION
Material civilization has reached an advanced plane, but now
there is need of spiritual civilization. Material civilization alone
will not satisfy; it cannot meet the conditions and requirements
of the present age; its benefits are limited to the world of
matter. There is no limitation to the spirit of man, for spirit in
itself is progressive, and if the divine civilization be established,
the spirit of man will advance.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.101,
Cleveland, Ohio, 6 May 1912

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Every developed susceptibility will increase the effectiveness
of man. Discoveries of the real will become more and more
possible, and the influence of divine guidance will be
increasingly recognized. All this is conducive to the divine
form of civilization. … The world shall at last find peace, and
the equalities and rights of men shall be established. The
capacity of humankind will be tested, and a degree shall be
attained where equality is a reality.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.101-102

As heretofore material civilization has been extended, the
divine civilization must now be promulgated. Until the two agree,
real happiness among mankind will be unknown. By mere
intellectual development and power of reason, man cannot
attain to his fullest degree—that is to say, by means of intellect
alone he cannot accomplish the progress effected by religion.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.170,
New York, 2 June 1912

While it is true that its people have attained a marvellous
material civilization, I hope that spiritual forces may animate
this great body and a corresponding spiritual civilization be
established.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.19-20,
New York, 16 April 1912

And among the teachings of Bahá’u’lláh is that although material
civilization is one of the means for the progress of the world
of mankind, yet until it becomes combined with Divine
civilization, the desired result, which is the felicity of mankind,
will not be attained.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.303

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Material civilization is like a lamp-glass. Divine civilization
is the lamp itself and the glass without the light is dark.
Material civilization is like the body. No matter how infinitely
graceful, elegant and beautiful it may be, it is dead. Divine
civilization is like the spirit, and the body gets its life from
the spirit, otherwise it becomes a corpse. It has thus been
made evident that the world of mankind is in need of the
breaths of the Holy Spirit.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.303

DETACHMENT
Cast away that which ye possess, and, on the wings of
detachment, soar beyond all created things. Thus biddeth you
the Lord of creation, the movement of Whose Pen hath
revolutionized the soul of mankind.
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 54, p.39; Gleanings
from the Writings of Bahá’u’lláh, p.139; and The Proclamation
of Bahá’u’lláh, p.117

What advantage is there in the earthly things which men possess?
That which shall profit them, they have utterly neglected.
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 40, p.34; Gleanings from
the Writings of Bahá’u’lláh, p.138

O MY SERVANT!
Free thyself from the fetters of this world, and loose thy soul
from the prison of self. Seize thy chance, for it will come to
thee no more.
- Bahá’u’lláh, The Hidden Words, Persian No. 40

O SON OF PASSION!
Cleanse thyself from the defilement of riches and in perfect

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peace advance into the realm of poverty; that from the
well-spring of detachment thou mayest quaff the wine of
immortal life.
- Bahá’u’lláh, The Hidden Words, Persian No. 55

Earthly treasures We have not bequeathed, nor have We
added such cares as they entail. By God! In earthly riches
fear is hidden and peril is concealed. Consider ye and call to
mind that which the All-Merciful hath revealed in the Qur’án:
‘Woe betide every slanderer and defamer, him that layeth up
riches and counteth them.’ (Qur’án 104:1–2)
Fleeting are the riches of the world; all that perisheth and
changeth is not, and hath never been, worthy of attention,
except to a recognized measure.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.219. (Kitáb-i-‘Ahd, the
Book of the Covenant)

JUSTICE
O SON OF SPIRIT!
The best beloved of all things in My sight is Justice; turn not
away therefrom if thou desirest Me, and neglect it not that
I may confide in thee. By its aid thou shalt see with thine own
eyes and not through the eyes of others, and shalt know of
thine own knowledge and not through the knowledge of thy
neighbour. Ponder this in thy heart; how it behooveth thee to
be. Verily justice is My gift to thee and the sign of My
loving-kindness. Set it then before thine eyes.
- Bahá’u’lláh, The Hidden Words, Arabic No. 2

They that are just and fair-minded in their judgement occupy
a sublime station and hold an exalted rank. The light of

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piety and uprightness shineth resplendent from these souls.
We earnestly hope that the peoples and countries of the
world may not be deprived of the splendours of these two
luminaries.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.37

The light of men is Justice. Quench it not with the contrary
winds of oppression and tyranny. The purpose of justice is
the appearance of unity among men. The ocean of divine
wisdom surgeth within this exalted word, while the books of
the world cannot contain its inner significance. Were mankind
to be adorned with this raiment, they would behold the
day-star of the utterance, ‘On that day God will satisfy
everyone out of His abundance, (Qur’án 4:129) shining
resplendent above the horizon of the world. Appreciate ye
the value of this utterance; it is a noble fruit that the Tree of
the Pen of Glory hath yielded.
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.66–67

And among the teachings of Bahá’u’lláh are justice and right.
Until these are realized on the plane of existence, all things
shall be in disorder and remain imperfect.
- ‘Abdu’l-Bahá, Selections from the Writings of ‘Abdu’l-Bahá, p.304

We ask God to endow human souls with justice so that they
may be fair, and may strive to provide for the comfort of all,
that each member of humanity may pass his life in the utmost
comfort and welfare. Then this material world will become the
very paradise of the Kingdom, this elemental earth will be in
a heavenly state and all the servants of God will live in the
utmost joy, happiness and gladness.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43

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In reality, so far great injustice has befallen the common
people.
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43–44

The government of the countries should conform to the Divine
Law which gives equal justice to all. This is the only way in
which the deplorable superfluity of great wealth and miserable,
demoralizing, degrading poverty can be abolished. Not until
this is done will the Law of God be obeyed.
- ‘Abdu’l-Bahá, Paris Talks, p.154

Among the results of the manifestation of spiritual forces will be
that the human world will adapt itself to a new social form, the
justice of God will become manifest throughout human affairs,
and human equality will be universally established. …
The essence of the matter is that divine justice will become
manifest in human conditions and affairs, and all mankind will
find comfort and enjoyment in life.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132,
New Jersey, 19 May 1912

INHERITANCE
a. Inheritance falls into the following categories.
1. children 1,080 out of 2,520 shares
2. husband or wife 390 “ 2,520 “
3. father 330 “ 2,520 “
4. mother 270 “ 2,520 “
5. brother 210 “ 2,520 “
6. sister 150 “ 2,520 “
7. teacher 90 “ 2,520 “
…

Compilation of the Writings of Economics

c. i. In cases where there is no issue the share of the
children reverts to the House of Justice to be expended on
orphans and widows and for whatever will profit mankind.
ii. If the son of the deceased be dead and leave issue,
these will inherit the share of their father. If the daughter of
the deceased be dead and leave issue, her share will have to
be divided into the seven categories specified in the Most
Holy Book.
d. 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.
e. Should none of the specified beneficiaries exist, two
thirds of the inheritance reverts to the nephews and nieces
of the deceased. If these do not exist, the same share reverts
to the aunts and uncles; lacking these, to their sons and
daughters. In any case the remaining third reverts to the
House of Justice.

f. Should one leave none of the aforementioned heirs, the
entire inheritance reverts to the House of Justice.
g. The residence and the personal clothing of the deceased
father pass to the male not to the female offspring. If there be
several residences the principal and most important one
passes to the male offspring. The remaining residences will
together with the other possessions of the deceased have to
be divided among the heirs. If there be no male offspring two
thirds of the principal residence and the personal clothing of
the deceased father will revert to the female issue and one

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third to the House of Justice. In the case of the deceased
mother all her used clothing is to be equally divided amongst
her daughters. Her unworn clothing, jewels and property
must be divided among her heirs, as well as her used clothing
if she leaves no daughter.
h. Should the children of the deceased be minors their
share should either be entrusted to a reliable person or to
a company for purposes of investment, until they attain the
age of maturity. A share of the interest accrued should be
assigned to the trustee.
i. The inheritance should not be divided until after the payment
of the Huqúqu’lláh (The Right of God), of any debts contracted
by the deceased and of any expenses incurred for a befitting
funeral and burial.
j. If the brother of the deceased is from the same father he
will inherit his full allotted share. If he is from another father he
will inherit only two thirds of his share, the remaining one third
reverting to the House of Justice. The same law is applicable
to the sister of the deceased.
k. In case there are full brothers or full sisters, brothers and
sisters from the mother’s side do not inherit.
l. A non-Bahá’í teacher does not inherit. If there should be
more than one teacher, the share allotted to the teacher is to be
equally divided among them.
m. Non-Bahá’í heirs do not inherit.
n. Aside from the wife’s used clothing and gifts of jewellery
or otherwise which have been proven to have been given her

Compilation of the Writings of Economics

by her husband, whatever the husband has purchased for his
wife are to be considered as the husband’s possessions to be
divided among his heirs.
o. Any person is at liberty to will his possessions as he sees
fit provided he makes provisions for the payment of
Huqúqu’lláh and the discharge of his debts.
- Bahá’u’lláh, The Kitáb-i-Aqdas, Other Sections, p.153–156

In future, a manufacturer will not be allowed to leave all his
property to his own family. A law will be made something like
this—that he must leave one-quarter only of his property to his
family, and the other three-quarters must go to the factory
workers who have created his wealth.
- ‘Abdu’l-Bahá, Star of the West, Vol. VIII:1, p.11

HUQÚQU’LLÁH
Readers are advised to read the compilation on
Huqúqu’lláh - The Right of God by the Research
Department of the Universal House of Justice for a detailed
study of this subject.
Nothing that existeth in the world of being hath ever
been or ever will be worthy of mention. However, if a
person be graciously favoured to offer a penny-worth—nay
even less—in the path of God, this would in His sight be
preferable and superior to all the treasures of the earth. It
is for this reason that the one true God—exalted be His
glory—hath in all His heavenly Scriptures praised those
who observe His precepts and bestow their wealth for His
sake. Beseech ye God that He may enable everyone to

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discharge the obligation of Huqúq, inasmuch as the progress
and promotion of the Cause of God depend on material
means. If His faithful servants could realize how meritorious
are benevolent deeds in these days, they would all arise to
do that which is meet and seemly.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.489; Huqúqu’lláh - The Right of God, 2007, No.4

It is incumbent upon everyone to discharge the obligation of
Huqúq. The advantages gained from this deed revert to the
persons themselves. However, the acceptance of the offerings
dependeth on the spirit of joy, fellowship and contentment
that the righteous souls who fulfil this injunction will manifest.
If such is the attitude acceptance is permissible, and not
otherwise.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.490; Huqúqu’lláh - The Right of God, No.11

Huqúqu’lláh is indeed a great law. It is incumbent upon all to
make this offering, because it is the source of grace, abundance,
and of all good. It is a bounty which shall remain with every soul
in every world of the worlds of God, the All-Possessing, the
All-Bountiful.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.490; Huqúqu’lláh - The Right of God, No.13

Fix thy gaze upon the glory of the Cause. Speak forth that
which will attract the hearts and the minds. To demand the
Huqúq is in no wise permissible. This command was revealed
in the Book of God for various necessary matters ordained by
God to be dependent upon material means. Therefore, if
someone, with utmost pleasure and gladness, nay with insistence,

Compilation of the Writings of Economics

wisheth to partake of this blessing, thou mayest accept.
Otherwise, acceptance is not permissible.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.491; Huqúqu’lláh - The Right of God, No.84

Question: In the holy Tablets it hath been revealed that when
someone acquireth the equivalent of nineteen mithqáls of gold,
he should pay the Right of God on that sum. Might it be
explained how much of this nineteen should be paid?
Answer: Nineteen out of one hundred is established by the
ordinance of God. Computation should be made on this
basis. It may then be ascertained what amount is due on
nineteen.
- Bahá’u’lláh, The Kitáb-i-Aqdas, Questions and Answers,
No. 89, p.132-133

The minimum amount subject to Huqúqu’lláh is reached when
one’s possessions are worth the number of Váhid (19); that
is, whenever one owneth 19 mithqáls of gold, or acquireth
possessions attaining this value, after having deducted
therefrom the yearly expenses, the Huqúq becometh applicable
and its payment is obligatory.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.493; Huqúqu’lláh - The Right of God, No.44

There is a prescribed ruling for the Huqúqu’lláh. After the House
of Justice hath come into being, the law thereof will be made
manifest, in conformity with the Will of God
- Bahá’u’lláh; Huqúqu’lláh - The Right of God, No.20

Thine intention to pay a visit to the blessed House is acceptable
and well-pleasing in the sight of this Wronged One, provided it

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is accomplished in a spirit of joy and radiance and would not
prove contrary to the dictates of wisdom.
Say: O people, the first duty is to recognize the one true
God—magnified be His glory—the second is to show forth
constancy in His Cause and, after these, one’s duty is to purify
one’s riches and earthly possessions according to that which
is prescribed by God. Therefore it beseemeth thee to meet
thine obligation to the Right of God first, then to direct thy
steps toward His blessed House. This hath been brought to
thine attention as a sign of favour.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.499; Huqúqu’lláh - The Right of God, No.2

Payments for the Huqúqu’lláh cannot be handed over to every
person. These words have been uttered by Him Who is the
sovereign Truth. The Huqúqu’lláh should be kept in the custody
of trusted individuals and forwarded to His holy court through
the Trustees of God.
- Bahá’u’lláh, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.508; Huqúqu’lláh - The Right of God, No.88

Thou hast enquired about the Huqúq. From one’s annual
income, all expenses during the year are deductible, and on
what is left 19% is payable to the Huqúq. Thus, a person hath
earned £1,000 income out of his business. After deducting his
annual expenses of say £600, he would have a surplus of
£400 on which Huqúq is payable at the rate of 19%. This
would amount to £76 to be offered for charitable purposes to
the Huqúq.
The Huqúq is not levied on one’s entire possessions each
year. A person’s wealth may be worth £100,000. How can he

Compilation of the Writings of Economics

be expected to pay Huqúq on this property every year? For
instance, whatever income thou hast earned in a particular
year, you should deduct from it your expenses during that
year. The Huqúq will then be payable on the remainder.
Possessions on which Huqúq was paid the previous year will
be exempt from further payment.
- ‘Abdu’l-Bahá, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.511–512; Huqúqu’lláh - The Right of
God, No.46

Huqúq is applied on everything one possesseth. However, if
a person hath paid the Huqúq on a certain property, and the
income from that property is equal to his needs, no Huqúq
is payable by that person.
Huqúq is not payable on agricultural tools and equipment,
and on animals used in ploughing the land, to the extent that
these are necessary.
- ‘Abdu’l-Bahá, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.512; and Lights of Guidance, p.308;
Huqúqu’lláh - The Right of God, No.48

Regarding the Huqúqu’lláh … this is applied to one’s
merchandise, property and income. After deducting the necessary
expenses, whatever is left as profit, and is an addition to one’s
capital, such a sum is subject to Huqúq. When one has paid
Huqúq once on a particular sum, that sum is no longer subject
to Huqúq, unless it should pass from one person to another.
One’s residence, and the household furnishings are exempt from
Huqúq … Huqúqu’lláh is paid to the Centre of the Cause.
- Shoghi Effendi, The Compilation of Compilations, Vol. I
(Huqúqu’lláh), p.515. (4 April–3 May 1927—translated from the
Persian); Huqúqu’lláh - The Right of God, No.51

Economics of the Future Begins Today

THE GREAT FINANCIAL DEPRESSION
The Great Depression, the aftermath of the severest ordeals
humanity had ever experienced, the disintegration of the
Versailles system, the recrudescence of militarism in its most
menacing aspects, the failure of vast experiments and new-
born institutions to safeguard the peace and tranquillity of
peoples, classes and nations, have bitterly disillusioned
humanity and prostrated its spirits.
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.188

COMPETITION
In the world of nature we behold the living organisms in a
ceaseless struggle for existence. Everywhere we are confronted
by evidences of the physical survival of the fittest. This is the
very source of error and misapprehension in the opinions and
theories of men who fail to realize that the world of nature is
inherently defective in cause and outcome and that the defects
therein must be removed by education.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.400,
Washington, D.C., 7 November 1912

In nature there is the law of the survival of the fittest. Even if
man be not educated, then according to the natural institutes
this natural law will demand of man supremacy. The purpose
and object of schools, colleges and universities is to educate
man and thereby rescue and redeem him from the exigencies
and defects of nature and to awaken within him the capability
of controlling and appropriating nature’s bounties.
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.353,
Palo Alto, California, 8 October 1912

Compilation of the Writings of Economics

Shall he, then, remain its captive, even failing to qualify under
the natural law which commands the survival of the fittest?
That is to say, shall he continue to live upon the level of the
animal kingdom without distinction between them and himself
in natural impulses and ferocious instincts?
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.353,
Palo Alto, California, 8 October 1912

THE WORLD’S EQUILIBRIUM
The world’s equilibrium hath been upset through the vibrating
influence of this most great, this new World Order. Mankind’s
ordered life hath been revolutionized through the agency of
this unique, this wondrous System - the like of which mortal
eyes have never witnessed.
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 181, p.85; Gleanings
from the Writings of Bahá’u’lláh, Chapter LXX, p.136; and The
Proclamation of Bahá’u’lláh, p.118

Say: This is the infallible Balance which the Hand of God is
holding, in which all who are in the heavens and all who are
on the earth are weighed, and their fate determined, if ye be
of them that believe and recognize this truth.
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 183, p.86; Gleanings
from the Writings of Bahá’u’lláh, p.136–137; and The
Proclamation of Bahá’u’lláh, p.119

Economy is the foundation of human prosperity. The
spendthrift is always in trouble. Prodigality on the part of any
person is an unpardonable sin. We must never live on others
like a parasitic plant. Every person must have a profession,
whether it be literary or manual, and must live a clean, manly,

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honest life, an example of purity to be imitated by others. It
is more kingly to be satisfied with a crust of stale bread
than to enjoy a sumptuous dinner of many courses, the
money for which comes out of the pockets of others. The
mind of a contented person is always peaceful and his heart
at rest.
- ‘Abdu’l-Bahá, Quoted by J. E. Esselmont in Bahá’u’lláh and
the New Era, Simple Life section, p.98

Workshop

Economics of the Future Begins Today

INTRODUCTION
There is no doubt that the subject of Economics is one of the
most important and overwhelming questions of our time.
Whether at the individual level or at the national level,
everyone is trying to solve their economic problems. The
economic situation of the world at present is in a state of
confusion and mankind is looking for a solution. However,
there does not seem to be a solution in sight except in
re-examining the fundamental values and standards of the
present economic system and replacing them. We have to
keep in mind that the present economic system is a by-product
of the old order that is dying out. It is dying because of the
separation of economic advancement from spiritual
advancement and because of the exclusion of spiritual and
human values in the formulation of economic theories. The
present economic system is a system without life and spirit.
In spite of economies becoming more interdependent due to
technological advancements and the flow of information, the
hearts of people are far apart.
As Bahá’ís we are assured that the World Order of
Bahá’u’lláh will bring with it a new economic system with its
foundation in the hearts of people. However, until then, it is
essential for us to increase our understanding and knowledge
of the Writings on the subject. We know that there is no
“Bahá’í economic system” at this time but there are guidelines
within the Writings for future economists and the Universal
House of Justice to formulate one. In the meantime, we need
to examine the present economic system in the light of these
guidelines. Great care should be taken, while doing so, not
to get lost in discussing the details and the technicalities of

Workshop

economic systems. We have to keep our focus on the big
picture. The economic field is vast and traditionally a setting
for long and argumentative discussions with no definite
conclusions. Avoiding this pitfall is important.
It should be made clear that the aim of this material is not
to discredit the economic thoughts or the economists of the
past and present. Instead, we can appreciate their hard work
in formulating economic theories that have led to the present
system. To the best of their abilities, they have tried to solve
the problems of an ever-changing world. Their failure to do
so is humanity’s failure to recognize the spiritual needs and
destiny of man. Their solutions to economic problems lacked
divine guidance and hence were doomed to fail.

Economics of the Future Begins Today

The material is divided into four parts:

Part one: Deals with the study of the Writings on the
nature of economic problems and their solutions. This study
should help to create a framework to guide us through the rest
of the material.

Part two: Emphasizes the spiritual values that are essential
to visualize a “Divine Economy”.

Part three: Concentrates on specific economic principles
in the Writings.

Part four: Focuses on Bahá’u’lláh’s vision of a World
Commonwealth.

Workshop - Part One

PART ONE
‘Abdu’l-Bahá summarizes the state of our world’s affairs and
explains the nature of the problems:
“Although the body politic is one family yet because of lack of
harmonious relations some members are comfortable and some
in direst misery, some members are satisfied and some are
hungry, some members are clothed in most costly garments
and some members are in need of food and shelter. Why?
Because this family lacks the necessary reciprocity and
symmetry. This household is not well arranged. This household
is not living under a perfect law. All the laws which are legislated
do not ensure happiness. They do not provide comfort.”
- ‘Abdu’l-Bahá, Foundations of World Unity, p.38; and Star of
the West, Vol. XIII, p.227–228

Questions:
1. What is the result of lack of harmonious relations?
2. What does the human family lack?
3. Why is this household not well arranged?
4. Do legislated laws alone ensure happiness?
“Economic plans of reconstruction have been carefully devised,
and meticulously executed. And yet crisis has succeeded crisis,
and the rapidity with which a perilously unstable world is
declining has been correspondingly accelerated. A yawning
gulf threatens to involve in one common disaster both the
satisfied and dissatisfied nations, democracies and
dictatorships, capitalists and wage-earners, Europeans and
Asiatics, Jew and Gentile, white and coloured.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.190

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Questions:
1. What has happened in spite of carefully devised and
meticulously executed economic plans?
2. Who will be involved in one common disaster?
3. What threatens to involve people in one common
disaster?
4. Can you think of any economic plan that was devised but
failed?
5. Name a few economic crises of our century.
6. Do you think economic problems can only be found in
developing countries?
7. Can you name a few economic problems that industrial
countries face or have faced?

‘Abdu’l-Bahá explains one of the problems that has had
great economic consequences on the world’s nations:

“Peace is the pretext, and night and day they are all straining
every nerve to pile up more weapons of war, and to pay for
this their wretched people must sacrifice most of whatever
they are able to earn by their sweat and toil. How many
thousands have given up their work in useful industries and
are labouring day and night to produce new and deadlier
weapons which would spill out the blood of the race more
copiously than before.
Each day they invent a new bomb or explosive and then
the governments must abandon their obsolete arms and
begin producing the new, since the old weapons cannot hold
their own against the new.”
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.61

Workshop - Part One

Questions:
1. Why do people have to sacrifice most of whatever they are
able to earn?
2. Why have thousands given up their work in useful industries?
3. What happens to old weapons once new ones are devised?
Now let us examine ‘Abdu’l-Bahá’s vision of a world
without war:
“Observe that if such a happy situation be forthcoming, no
government would need continually to pile up the weapons of
war, nor feel itself obliged to produce ever new military weapons
with which to conquer the human race. A small force for the
purposes of internal security, the correction of criminal and
disorderly elements and the prevention of local disturbances,
would be required — no more. In this way the entire population
would, first of all, be relieved of the crushing burden of
expenditure currently imposed for military purposes, and
secondly, great numbers of people would cease to devote their
time to the continual devising of new weapons of destruction...”
- ‘Abdu’l-Bahá, The Secret of Divine Civilization, p.65–66

Questions:
1. What is the “happy situation” that ‘Abdu’l-Bahá refers to?
2. What is the alternative to the piling up of weapons of war
and the continuing production of new military weapons?
3. What changes would the entire population experience?
4. What would be the size of a military force of the future and
what would be its function?
5. How would people spend their time if they were not
producing weapons of destruction?

Economics of the Future Begins Today

6. Suggest ways of using money saved by reducing military
expenditures.
Another problem, that of the survival of the fittest, which
originates in human nature, has been man’s legacy from the
days when he lived a primitive life in the jungles to the present
time. Today it is called competition.
“In the world of nature we behold the living organisms in a
ceaseless struggle for existence. Everywhere we are
confronted by evidences of the physical survival of the fittest.
This is the very source of error and misapprehension in the
opinions and theories of men who fail to realize that the
world of nature is inherently defective in cause and outcome
and that the ….”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.400.
(Talk dated 7 November 1912 in Washington, D.C.)

Questions:
1. How is the law of the survival of the fittest the origin of all
difficulties?
2. Is survival of the fittest the cause of economic problems?
The following are ‘Abdu’l-Bahá’s directives to overcome this
problem:
“This [survival of the fittest] is the very source of error and
misapprehension in the opinions and theories of men who
fail to realize that the world of nature is inherently defective
in cause and outcome ….and that the defects therein must
be removed by education.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.400.
(Talk dated 7 November 1912 in Washington, D.C.)

Workshop - Part One

“In nature there is the law of the survival of the fittest.
Even if man be not educated, then according to the natural
institutes this natural law will demand of man supremacy.
The purpose and object of schools, colleges and universities
is to educate man and thereby rescue and redeem him
from the exigencies and defects of nature and to awaken
within him the capability of controlling and appropriating
nature’s bounties.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.353

Questions:
1. What remedies have been offered to solve this problem?
2. What is the purpose and object of schools?
3. Does man have the capability of controlling and
appropriating nature’s bounties?
4. Do you think that the economic systems of the world work
on the basis of survival of the fittest?
5. What is the opposite of survival of the fittest?

What makes the “divine economy” different from all the
economic systems of the world is its approach to the source
of the economic problems and their solutions. In this way it
differentiates itself from all the past and present economic
theories and thoughts. ‘Abdu’l-Bahá states:

“The fundamentals of the whole economic condition are
divine in nature and are associated with the world of the
heart and spirit. This is fully explained in the Bahá’í
teaching, and without knowledge of its principles no
improvement in the economic state can be realized. The
Bahá’ís will bring about this improvement and betterment

Economics of the Future Begins Today

but not through sedition and appeal to physical force—
not through warfare, but welfare.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.238-239

Shoghi Effendi further explains the above statement:
“… By the statement ‘the economic solution is divine in
nature’ is meant that religion alone can, in the last resort,
bring in man’s nature such a fundamental change as to
enable him to adjust the economic relationships of society.
It is only in this way that man can control the economic
forces that threaten to disrupt the foundations of his
existence, and thus assert his mastery over the forces of
nature.”
- Shoghi Effendi, Lights of Guidance, p.551. (From a letter
written of behalf of Shoghi Effendi to an individual believer,
26 December 1935)

Questions:
1. What is the secret of the whole economic question?
2. How can we control economic forces?
3. Is there any way other than the Bahá’í Teachings to solve
the economic situation of the world?
‘Abdu’l-Bahá … has said:
“All economic problems may be solved by the application
of the Science of the Love of God.’ That is to say: If the
Rule called golden … were actually applied to the world’s
economic problems, which if not solved bid fair to destroy
us, and the love of God, the sort of love which makes a
home life happy, were used as a scientific measurement to
regulate our international and national affairs; to settle all

Workshop - Part One

relations between labour and capital, between rich and poor:
to regulate all coinage and commerce, can there be any
doubt that the results would be far more conducive to human
welfare than our present policies have produced?”
- Howard Colby Ives, Portals to Freedom, p.156

Bahá’u’lláh has explained the Golden Rule:

“O son of being!
“Ascribe not to any soul that which thou wouldst not have
ascribed to thee, and say not that which thou doest not.
This is My command unto thee, do thou observe it.”
- Bahá’u’lláh, The Hidden Words, Arabic No. 29

Questions:
1. What is the Golden Rule?
2. Is the Golden Rule applied today?
3. How can the Golden Rule lessen the gap between the poor
and the rich?

Economics of the Future Begins Today

PART TWO
In this section we will study Writings that are a foundation for
a divine economy.
A key feature of the divine economy that differs
fundamentally from current economic theories is the recognition
of the importance of the spiritual advancement of man, along
with his material advancement.
“Material civilization has reached an advanced plane, but
now there is need of spiritual civilization. Material civilization
alone will not satisfy; it cannot meet the conditions and
requirements of the present age; its benefits are limited to
the world of matter. There is no limitation to the spirit of
man, for spirit in itself is progressive and if the divine
civilization be established, the spirit of man will advance.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.101

“As heretofore material civilization has been extended, the
divine civilization must now be promulgated. Until the two
agree, real happiness among mankind will be unknown. By
mere intellectual development and power of reason, man
cannot attain to his fullest degree—that is to say, by means
of intellect alone he cannot accomplish the progress effected
by religion.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.170

Questions:
1. What are the limits of a material civilization?
2. How will the establishment of a divine civilization affect
man?

Workshop - Part Two

3. Is spiritual civilization in balance with material civilization in
the world today?
4. Has material advancement brought happiness to mankind?
Unlike the popular belief today that material advancement brings
happiness, Bahá’u’lláh reminds us:

“O son of being!
“Busy not thyself with this world, for with fire We test the
gold, and with gold We test our servants.”
- Bahá’u’lláh, The Hidden Words, Arabic No. 55

“O son of man!
“Thou dost wish for gold and I desire thy freedom from it.
Thou thinkest thyself rich in its possession, and I recognize
thy wealth in thy sanctity therefrom. By My life! This is My
knowledge, and that is thy fancy; how can My way accord
with thine?”
- Bahá’u’lláh, The Hidden Words, Arabic No. 56

Questions:
1. Why does Bahá’u’lláh want us to be detached from the
material world?
2. What is real richness?
“...In all matters moderation is desirable. If a thing is
carried to excess, it will prove a source of evil.”
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.69

“Fear ye God, and take heed not to outstrip the bounds of
moderation, and be numbered among the extravagant.”
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh, p.251

Economics of the Future Begins Today

Questions:
1. In what matters is moderation desirable?
2. Why does moderation have to be observed in all matters?
3. Is moderation a popular idea among people?
The most crucial mistake that the economists have made is
their failure to recognize man’s high station. Hence, it is not
surprising to see man being reduced to one of the factors in
production (labour), along with land and capital. Their theories
have used a very limited definition of man. He has been
depicted most of the time as a selfish and greedy being who
has no other goal except to satisfy his own needs (consumer)
without regard for the welfare of others. This view is far
removed from what God has ordained for man. Bahá’u’lláh
explains:
“Lofty is the station of man, were he to hold fast to
righteousness and truth and to remain firm and steadfast in
the Cause. … His is the loftiest station, and his influence
educateth the world of being.”
- Bahá’u’lláh, Tablets of Bahá’u’lláh, p.220

‘Abdu’l-Bahá adds:
“If … the spiritual nature of the soul has been so strengthened
that it holds the material side in subjection, then does man
approach the Divine; his humanity becomes so glorified
that the virtues of the Celestial Assembly are manifested in
him; he radiates the Mercy of God, he stimulates the spiritual
progress of mankind, for he becomes a lamp to show light
on their path.”
- ‘Abdu’l-Bahá, Paris Talks, p.97–98

Workshop - Part Two

Questions:
1. How can man attain a great station?
2. Describe the potential of man once his spiritual nature has
been strengthened.
3. Is man’s true potential recognized in the present economic
system?
This is ‘Abdu’l-Bahá’s guidance to assist man to achieve his
true station by balancing his spiritual and material efforts.
“ ... Share your time with God. … Spend half of the day
in search of livelihood, guaranteeing your material life
and dignified appearance, and dedicate the other half in
the acquisition of moral virtues and service at the threshold
of God...”
- ‘Abdu’l-Bahá, Áhang-i-Badí’, volume 31, number 339, p.83
(pilgrim’s note)
Questions:
1. What areas should be the focus of our lives?
2. Do you think that we are responsible for earning our livelihood
or is it the role of the government to provide it for us?
Many economic systems have laid great emphasis on equality without
recognizing the inherent inequalities in the abilities of man, and in
emphasizing absolute equality rather than equality in opportunities.
“Social inequality is the inevitable outcome of the
natural inequality of man. Human beings are different
in ability and should, therefore, be different in their
social and economic standing. Extremes of wealth and
poverty should, however, be abolished...”
- Shoghi Effendi, Directives of the Guardian, p.20

Economics of the Future Begins Today

“For the community needs financier, farmer, merchant and
labourer just as an army must be composed of commander,
officers and privates. All cannot be commanders; all cannot
be officers or privates. Each in his station in the social
fabric must be competent—each in his function according
to ability but with justice of opportunity for all.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.216

Questions:
1. Why are people not equal?
2. In your opinion, should people with lesser abilities have a
lower quality of life?
3. Can differences in functions and economic status be used as
spiritual criteria?
Although there has been some recognition of the role of
women and the contributions they have made to the
advancement of our civilization, their real potential has not
been recognized nor utilized.
“… there must be an equality of rights between men and
women. Women shall receive an equal privilege of education.
This will enable them to qualify and progress in all degrees
of occupation and accomplishment. For the world of
humanity possesses two wings: man and woman. If one
wing remains incapable and defective, it will restrict the
power of the other, and full flight will be impossible.
Therefore, the completeness and perfection of the human
world are dependent upon the equal development of these
two wings.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.318

Workshop - Part Two

Questions:
1. Do women presently have an equal opportunity of
education everywhere in the world?
2. Are women prominent in all spheres of human affairs?
3. What do you suggest will improve the role of women in
society?
The idea of the equality of men and women has been
included in some economic theories, but as we can see in
our world today, they have failed to achieve it. The Bahá’í
Faith not only stresses the importance of equal opportunities
but encourages mankind to go one step further:
“… the Teachings of Bahá’u’lláh advocate voluntary
sharing, and this is a greater thing than the equalization of
wealth. For equalization must be imposed from without,
while sharing is a matter of free choice.
Man reacheth perfection through good deeds,
voluntarily performed, not through good deeds the doing
of which was forced upon him. And sharing is a personally
chosen righteous act: that is, the rich should extend
assistance to the 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. For the harvest of
force is turmoil and the ruin of the social order. On the
other hand voluntary sharing, the freely-chosen expending
of one’s substance, leadeth to society’s comfort and peace.
It lighteth up the world; it bestoweth honour upon
humankind.”
- ‘Abdu’l-Bahá, Selections from the Writings of
‘Abdu’l-Bahá, p.115

Economics of the Future Begins Today

Questions:
1. Why is voluntary sharing greater than equality?
2. How will voluntary sharing change human affairs?
3. Does the present economic system encourage voluntary
sharing?
No vision of a divine economy is complete without a
foundation of justice.
“We ask God to endow human souls with justice so that
they may be fair, and may strive to provide for the comfort
of all, that each member of humanity may pass his life in
the utmost comfort and welfare. Then this material world
will become the very paradise of the Kingdom, this elemental
earth will be in a heavenly state and all the servants of God
will live in the utmost joy, happiness and gladness.”
- ‘Abdu’l-Bahá, Foundations of World Unity, p.43; and Star of
the West, p.230

“Among the results of the manifestation of spiritual forces
will be that the human world will adapt itself to a new
social form, the justice of God will become manifest
throughout human affairs, and human equality will be
universally established. …
The essence of the matter is that divine justice will
become manifest in human conditions and affairs, and all
mankind will find comfort and enjoyment in life.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.132

Questions:
1. What are the effects of justice on human souls?
2. How can justice provide comfort for all?

Workshop - Part Three

PART THREE
In this section, Writings on some specific economic topics
will be presented:

CAPITALISM
There is a strong belief in the world that capitalism is a solution
to all economic problems. However, we know that no system
is perfect, whether it be capitalism or communism, if the
foundation is not built on divine principles.
“There is nothing in the teachings against some kind of
capitalism; its present form, though, would require
adjustments to be made.”
- Shoghi Effendi, Directives of the Guardian, p.20

Questions:
1. Is the present form of capitalism perfect?
2. What adjustments have to be made to capitalism?

AGRICULTURE—THE FARMER
“To solve this problem [welfare and well-being] we must begin
with the farmer; there will we lay a foundation for system
and order because the peasant class and the agricultural
class exceed other classes in the importance of their service.”
- ‘Abdu’l-Bahá, Foundations of World Unity, p.39

“The question of economics must commence with the farmer
and then be extended to the other classes inasmuch as the
number of farmers is greater than all the classes, many
many times greater. Therefore, it is fitting that the economic

Economics of the Future Begins Today

problem be first solved with the farmer, for the farmer is
the first active agent in the body politic.”
- ‘Abdu’l-Bahá, Lights of Guidance, p.548. (Extract from a
Tablet to an individual believer, 4 October 1912, translation
corrected in the World Centre, December 1985)

Questions:
1. Why are the farmer’s services more important than the
services of other classes of workers?
2. Why should we start with the farmer?

WORK AND PROFESSION
“Every individual, no matter how handicapped and limited
he may be, is under the obligation of engaging in some
work or profession, for work, especially when performed in
the spirit of service, is according to Bahá’u’lláh, a form of
worship. It has not only a utilitarian purpose, but has a
value in itself, because it draws us nearer to God, and
enables us to better grasp His purpose for us in this world.
It is obvious, therefore, that the inheritance of wealth cannot
make anyone immune from daily work.”
- Shoghi Effendi, Directives of the Guardian, p.83. (Letter written
on behalf of the Guardian to the National Spiritual Assembly of
the Bahá’ís of USA and Canada, dated 22 March 1937)

“… Whatever the progress of the machinery may be, man
will have always to toil in order to earn his living. Effort is
an inseparable part of man’s life. It may take different forms
with the changing conditions of the world, but it will be
always present as a necessary element in our earthly
existence. Life is after all a struggle. Progress is attained

Workshop - Part Three

through struggle, and without such a struggle life ceases to
have a meaning; it becomes even extinct. The progress of
machinery has not made effort unnecessary. It has given it
a new form, a new outlet.”
- Shoghi Effendi, Lights of Guidance, p.551. (Letter written
on behalf of the Guardian to an individual believer,
dated 26 December 1935)

Questions:
1. What purpose does work serve besides earning a livelihood?
2. Are rich people exempt from working?
3. How can work be a form of worship?
4. How can work bring us closer to God?

WAGES
“… The Master has definitely stated that wages should be
unequal, simply because that men are unequal in their ability,
and hence should receive wages that would correspond to
their varying capacities and resources. This view seems to
contradict the opinion of some modern economists. But the
friends should have full confidence in the words of the Master,
and should give preference to His statements over those
voiced by our so-called modern thinkers.”
- Shoghi Effendi, Lights of Guidance, p.551. (Letter written on
behalf of the Guardian to an individual believer, dated
26 December 1935)

“…The workers could either be granted a wage that
adequately meets their daily needs, as well as a right to a
share in the revenues of the factory when they are injured,
incapacitated, or unable to work, or else a wage could be

Economics of the Future Begins Today

set that allows the workers to both satisfy their daily needs
and save a little for times of weakness and incapacity”
- ‘Abdu’l-Bahá, Some Answered Questions, p.317

“Now I want to tell you about the law of God. According
to the Divine law, employees should not be paid merely by
wages. Nay, rather they should be partners in every work.”
- ‘Abdu’l-Bahá, The Bahá’í World, Vol. IV, p.454

Questions:
1. Should wages be equal?
2. Will people earning less be deprived of opportunities?
3. Can workers be partners with their employers?

TAXATION
Once work is done and money is earned, then the question of
taxation arises.
“We see you increasing every year your expenditures, and
laying the burden thereof on your subjects. This, verily, is
wholly and grossly unjust. Fear the sighs and tears of this
Wronged One, and lay not excessive burdens on your peoples.”
- Bahá’u’lláh, Gleanings from the Writings of Bahá’u’lláh,
p.253; and The Proclamation of Bahá’u’lláh, p.12

“Each person in the community whose need is equal to his
individual producing capacity shall be exempt from taxation.
But if the 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 production and his needs will be equalized and
reconciled through taxation. If his production exceeds, he

Workshop - Part Three

will pay a tax; if his necessities exceed his production, he
shall receive an amount sufficient to equalize or adjust.
Therefore, taxation will be proportionate to capacity and
production, and there will be no poor in the community.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.217

Questions:
1. Should people be taxed equally?
2. Can graduated taxes help the poor?
3. Is it possible that some people will not pay tax in a divine
economy?

RETIREMENT AND PENSION
“As to the question of retirement from work for individuals
who have reached a certain age, this is a matter on which
the International House of Justice will have to legislate as
there are no provisions in the Aqdas concerning it.”
- Shoghi Effendi, Directives of the Guardian, p.83; Lights of
Guidance, p.626; and Principles of Bahá’í Administration, p.12.
(From a letter written on behalf of the Guardian to the National
Spiritual Assembly of the United States and Canada,
22 March 1937)

“Even though you are 79 years old, that does not seem in
your case to be any handicap; and in this Cause, as the
Guardian has told us there is work for everyone of some
sort, of whatever age he or she may be.”
- Shoghi Effendi, Lights of Guidance, p.626. (From a letter
written on behalf of the Guardian to an individual believer,
23 August 1954, Cited by the Universal House of Justice,
14 December 1970)

Economics of the Future Begins Today

“The workers could either be granted a wage that adequately
meets their daily needs, as well as a right to a share in the
revenues of the factory when they are injured, incapacitated,
or unable to work, or else a wage could be set that allows
the workers to both satisfy their daily needs and save a
little for times of weakness and incapacity.”
- ‘Abdu’l-Bahá, Some Answered Questions, p.317

Questions:
1. How can workers get support when they become feeble or
helpless?

RATE OF INTEREST
Presently, governments and economists use interest rates as an
important tool to regulate economic activities. However, there
are economies in the world that do not agree with the idea of
any interest (e.g. some Islamic countries).
“Most of the people are found to be in need of this matter;
for if no interest be allowed, affairs (business) will be
trammelled and obstructed. … A person is rarely found who
would lend money to anyone upon the principle of
‘Qar-i-hasan’ (literally ‘good loan’, i.e. money advanced
without interest and repaid at the pleasure of the borrower).
Consequently, out of favour to the servants, We have
appointed ‘profit on money’ to be current, among other
business transactions which are in force among people. That
is … it is allowable, lawful and pure to charge interest on
money … but this matter must be conducted with moderation
and justice. The Pen of Glory has withheld itself from laying
down its limits, as a Wisdom from His Presence and as a

Workshop - Part Three

convenience for His servants. We exhort the friends of God
to act with fairness and justice, and in such a way that the
mercy of His beloved ones, and their compassion, may be
manifested toward each other. …
The execution of these matters has been placed in charge
of the men of the House of Justice, in order that they may act
in accordance with the exigencies of the time and with wisdom.”
- Bahá’u’lláh, Quoted by J. E. Esselmont in Bahá’u’lláh and the
New Era, The Ethics of Wealth section, p.136–137

Questions:
1. What is a good loan?
2. What is the importance of interest rates?
3. Are you paying any interest? If yes, do you think the rate
is fair?

ECONOMIC RESOURCES
“The economic resources of the world will be organized, its
sources of raw materials will be tapped and fully utilized, its
markets will be coordinated and developed, and the
distribution of its products will be equitably regulated.
… 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

Economics of the Future Begins Today

of any other agency that can stimulate the intellectual, the
moral, and spiritual life of the entire human race.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.204

Questions:
1. How can economic resources be used for the improvement
of human life?
2. To whom do the economic resources of the world belong?
3. Can economic resources be used to assist in the prolongation
of human life?

ECONOMIC BARRIERS
“That 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, is a fact
which few would venture to dispute.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.35

“A world community in which all economic barriers will
have been permanently demolished and the interdependence
of Capital and Labour definitely recognized; …”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.41

Questions:
1. Do tariffs harm economic development?
2. Why are tariffs imposed?
3. Can you think of any country that is removing its economic
barriers?

Workshop - Part Three

WORLD CURRENCY
“… a uniform and universal system of currency, of
weights and measures, will simplify and facilitate
intercourse and understanding among the nations and
races of mankind.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

Questions:
1. How can a universal system of currency, weights and
measurements help mankind?

Economics of the Future Begins Today

PART FOUR
In the light of the Writings we have studied, it will now be
easier to understand the vision of Bahá’u’lláh’s world
commonwealth.
“From every standpoint the world of humanity is
undergoing a reformation. ... scientific ideas and theories
are developing and advancing to meet a new range of
phenomena; invention and discovery are penetrating
hitherto unknown fields, revealing new wonders and hidden
secrets of the material universe; industries have vastly
wider scope and production; everywhere the world of
mankind is in the throes of evolutionary activity indicating
the passing of the old conditions and advent of the new
age of reformation.”
- ‘Abdu’l-Bahá, The Promulgation of Universal Peace, p.439

“The world’s equilibrium hath been upset through the
vibrating influence of this most great, this new World Order.
Mankind’s ordered life hath been revolutionized through the
agency of this unique, this wondrous System—the like of
which mortal eyes have never witnessed.”
- Bahá’u’lláh, The Kitáb-i-Aqdas, para. 181, p.85

“It is the superstructure of that self-same Order, attaining
its full stature through the emergence of the Bahá’í World
Commonwealth—the Kingdom of God on earth—which the
Golden Age of that same Dispensation [Bahá’í] must, in
the fullness of time, ultimately witness.”
- Shoghi Effendi, God Passes By, p.26

Workshop - Part Four

Questions:
1. What re-formation is the world of humanity undergoing?
2. What has upset the world’s equilibrium?
3. How will the new World Order revolutionize mankind?
4. Can you define the Bahá’í World Commonwealth.
We have been assured that the advent of the Bahá’í World
Commonwealth is inevitable. However, it is essential that
mankind knows the stages of the process that he must pass
through to reach that goal. Shoghi Effendi clearly explains:
“ … the precautionary and defensive measures to be devised,
co-ordinated, and carried out to counteract the full force of
the inescapable attacks which the organized efforts of
ecclesiastical organizations of various denominations will
progressively launch and relentlessly pursue; and, last but
not least, the multitudinous issues that must be faced, the
obstacles that must be overcome, and the responsibilities
that must be assumed, to enable a sore-tried Faith to pass
through the successive stages of unmitigated obscurity, of
active repression, and of complete emancipation, leading in
turn to its being acknowledged as an independent Faith,
enjoying the status of full equality with its sister religions,
to be followed by its establishment and recognition as a
State religion, which in turn must give way to its assumption
of the rights and prerogatives associated with the Bahá’í
state, functioning in the plenitude of its powers, a stage
which must ultimately culminate in the emergence of the
world-wide Bahá’í Commonwealth, animated wholly by the
spirit, and operating solely in direct conformity with the
laws and principles of Bahá’u’lláh.”
- Shoghi Effendi, The Advent of Divine Justice, p.14-15

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“This commonwealth must, as far as we can visualize it,
consist of a world legislature, whose members will, as the
trustees of the whole of mankind, ultimately control the
entire resources of all the component nations, and will
enact such laws as shall be required to regulate the life,
satisfy the needs and adjust the relationships of all races
and peoples. A world executive, backed by an international
Force, will carry out the decisions arrived at, and apply
the laws enacted by, this world legislature, and will
safeguard the organic unity of the whole commonwealth.
A world tribunal will adjudicate and deliver its compulsory
and final verdict in all and any disputes that may arise
between the various elements constituting this universal
system. A mechanism of world inter-communication will
be devised, embracing the whole planet, freed from national
hindrances and restrictions, and f unctioning with
marvellous swiftness and perfect regularity. A world
metropolis will act as the nerve centre of a world
civilization, the focus towards which the unifying forces of
life will converge and from which its energizing influences
will radiate.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.203

Questions:
1. What p o wer will animat e t he Bahá’í Wo r ld
Commonwealth?
2. What will be the responsibility of the members of the
World Legislature?
3. What body will have the final verdict in all disputes?
4. What will act as the nerve centre of the world
civilization?

Workshop - Part Four

“And as the Bahá’í Faith permeates the masses of the
peoples of East and West, and its truth is embraced by the
majority of the peoples of a number of the Sovereign States
of the world, will the Universal House of Justice attain the
plenitude of its power, and exercise, as the supreme organ
of the Bahá’í Commonwealth, all the rights, the duties, and
responsibilities incumbent upon the world’s future
super-state.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.7

“The Declaration of Trust [and By-Laws of the National
Spiritual Assembly of the United States,] … stands in its
final form as a worthy and faithful exposition of the
constitutional basis of the Bahá’í communities in every land,
foreshadowing the final emergence of the world Bahá’í
Commonwealth of the future.”
- Shoghi Effendi, Bahá’í Administration, p.134–135

Haifa, Israel, the “… permanent world Administrative Centre
of the future Bahá’í Commonwealth, destined never to be
separated from, and to function in proximity of, the Spiritual
Centre of that Faith [Bahá’í] ….”
- Shoghi Effendi, God Passes By, p.348

Questions:
1. When will the Universal House of Justice attain the plenitude
of its power?
2. What will act as the constitutional basis for the Bahá’í
communities of the world?
3. Where will the permanent world Administrative and Spiritual
Centre of the Bahá’í Commonwealth be?

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The last question! Who has the bounty of assisting the
establishment of Bahá’u’lláh’s World Commonwealth?
Shoghi Effendi gave us this answer:
“To us, the ‘generation of the half-light’, living at a time
which may be designated as the period of the incubation of
the World Commonwealth envisaged by Bahá’u’lláh, has
been assigned a task whose high privilege we can never
sufficiently appreciate, and the arduousness of which we
can as yet but dimly recognize.”
- Shoghi Effendi, The World Order of Bahá’u’lláh, p.168–169

Brief Summary of
The Bahá’í Faith

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The Bahá’í Faith is a world religion which began in 1844.
Bahá’ís follow the teachings of Bahá’u’lláh (a title meaning
the Glory of God), Whom they recognize as a Messenger
from God. Bahá’u’lláh taught us that the God we all worship
is the same God, though we may use different names - Alláh,
Jehovah, the Creator, or Higher Power. We cannot know
God because He is far above our ability to understand His
Essence. The only way that we can attempt to perceive His
Greatness and to feel His Love for us is through His
Messengers. Bahá’ís also believe that over the course of
thousands of years, from time to time and in different parts
of the world, a small number of these Enlightened Ones have
appeared. Bahá’ís believe that Bahá’u’lláh was the most
recent of these Teachers. The Bahá’í Faith does not attempt
to undermine any religion. Instead, it recognizes the missions
of the great religions of the world as stages in the evolution
of the spiritual life of humankind. When each one is carefully
examined and stripped of the rituals that its followers have
implemented, it becomes clear that they have brought the
same spiritual teachings of love and goodwill to all humanity,
changing hearts and bringing new life to the world. The only
differences between them are the social teachings, teachings
that differ because God’s Messengers come into the world
at different times and their teachings serve the needs of the
age in which they live. Krishna, Buddha, Zoroaster, Abraham,
Moses, Jesus and Muhammad are all Messengers of God
who appeared at different times in history and each changed
the course of history. Krishna’s Teachings brought civilization
to India and neighbouring countries. Moses also founded a
great civilization after rescuing his people from bondage.
Buddha brought light to the Asian peoples. Zoroaster’s

Brief Summary of the Bahá’í Faith

Teachings changed a culture steeped in superstition in Persia.
Jesus altered the course of the Western world. Muhammad
uplifted and unified uneducated and disunited people to
become a nation. Each fulfilled the prophecies of the last
Messenger and promised the renewal of religion in the future.
The pivotal point of the Bahá’í Teachings is the unity of the
human race as one family, erasing all traces of enmity and
prejudice from the hearts of men. Through science and
technology, we can travel to any corner of the globe in a day
and communicate with each other instantly. Nations depend on
each other’s cooperation and the need for understanding and
assistance among all nations has generally become accepted.
It is therefore possible for mankind to conceive of the idea of
uniting the planet. And it is only through unity that we will be
able to solve the problems the world is experiencing today.
The purpose of the Bahá’í Faith is to erase every trace of
enmity and hatred from men’s hearts and unite the entire world
as one family. The Bahá’í Writings provide the outline of
institutions necessary for the establishment of a peaceful society.
These include a world federation or commonwealth that would
preserve the independence of all nations with a world parliament
in which all governments are represented, a world executive to
administer laws, and a world tribunal to settle disputes. A
world economy, a universal system of weights, measures and
currency, as well as the adoption of a universal auxiliary language
and script would also be features of the world commonwealth.
The planet’s resources would be safeguarded for the benefit
of all. Humanity, free from war and strife, would then be able
to work towards such things as raising living standards,
advancing education, eliminating disease, developing the arts
and sciences, and cultivating its spiritual life.

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Another important Teaching is the independent investigation
of truth. We must search out the truth for ourselves and not
follow blindly the ways of others or customs and traditions of
the past. Science and religion must also go hand in hand.
Religion that depends on blind faith rather than reason is
superstition and can lead to fanaticism. We have been given an
intellect to investigate all truth, including religious truth. Universal
education, another Bahá’í Teaching, provides the framework
for all to have equal opportunities so that men and women can
advance equally and women throughout the world can take
their rightful place beside men in working for the peace and
prosperity of humankind. Bahá’u’lláh advocates the elimination
of the extremes of wealth and poverty and the abandonment
of all forms of prejudice. The Bahá’í Writings provide guidance
that helps an individual develop the spiritual and intellectual
qualities lying at the core of his nature and therefore contribute
to an ever-advancing civilization. In addition to prayer to assist
us to become spiritual beings, work done in the spirit of service
is also considered worship for Bahá’ís and service to humanity
is the most worthy endeavor.
There are two Messengers who brought the Teachings of
God to the world today. Both came from Iran, formerly Persia.
The first was given the title of The Báb or the Gate, to signify
that He was the forerunner of another. As a child, the Báb was
described as being pure, tender-hearted, mild-mannered, and
meek. His wisdom, knowledge, and ability to grasp things of
an adult nature astonished everyone. When He grew up, He
worked as a merchant and earned great respect because of
His truthfulness and sense of justice. Once a man bought
something on his behalf and paid too much. The Báb told him
to return the item and get his money back, proclaiming that He

Brief Summary of the Bahá’í Faith

would not tolerate cheating or encourage someone to be
dishonest. At another time, The Báb paid more than market
value to someone selling an item to Him because He thought
it was worth more than what the man had asked. At this time,
there were some awakened souls who had foretold of a new
Messenger of God and urged their disciples to go out and find
Him. Eighteen disciples unaided found the Báb and He then
sent them out to spread His new Teachings of justice, mercy
and love. The Prime Minister and religious leaders were
threatened by the Báb’s influence as the number of His followers
increased and they banished Him to a remote fortress. But He
won the respect and admiration of the officials in charge and
the people in the area came to Him for their daily blessings or
to settle disputes. While there, The Báb revealed His most
important book and foretold another Revelation greater than
His own. The Báb was banished once more but the authorities
agreed that His influence could only be stopped through His
death. His life was ended at the tender age of 31 in front of
a firing squad. In his short ministry of six years he had brought
many to His Cause and twenty thousand of His followers
sacrificed their lives rather than deny their beliefs. After His
death, there was a smaller band of followers who were now
crushed and bereft of Guidance. This new Faith could have
been extinguished, but it was not the will of God. A few
misguided followers foolishly and ineptly tried to shoot the
Sháh. And it was a young nobleman, a follower of the Báb,
Who was one of the prisoners blamed for the attempted shooting
and Who was thrown into a dungeon. It was there, like every
Messenger of God, that He received the first intimations of
His station and He became known as Bahá’u’lláh, a title
meaning the Glory of God.

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Bahá’u’lláh was born into a rich family and His father was
a nobleman. From childhood, He seemed to possess remarkable
power and he was extremely kind and generous. He did not
need formal schooling, having innate knowledge, as had the Báb
and all the previous Messengers of God. His intelligence and
spiritual capacity were recognized and people would bring their
problems to Him. When His father died, He was offered a
position in the court, but He refused because He had no interest
in titles or ceremonies. Instead He wanted to defend the
oppressed and be a refuge for the poor and needy.
After the Báb had declared His mission, He had sent one
of His disciples with some of His Writings to find the One
destined to receive it, namely Bahá’u’lláh. Bahá’u’lláh had
recognized these Writings to be the truth and had arisen to
spread them.
Bahá’u’lláh was exiled to Baghdad after being released from
the dungeon prison. He began to revive the depleted spirits of
the Báb’s followers, who had arrived there before Him, and to
guide them back to a spiritual path. His influence spread and
transformed even officials and religious leaders so that the
government and clergy were again forced to exile Him, at first
to Constantinople (now Istanbul) and then Adrianople (now
Edirne) in the Ottoman Empire. Before His exile to Turkey, He
revealed His station to the believers.
Once more, His influence on all those around Him forced
the authorities to exile Him, this time to Akka, now part of
Israel, and at that time, a place of stench and filth where those
committing the worst crimes were banished. In time, the
conditions of imprisonment were eased, in large part due to the
influence of ‘Abdu’l-Bahá, Bahá’u’lláh’s eldest son, who had
gained the respect and admiration of the people. ‘Abdu’l-Bahá

Brief Summary of the Bahá’í Faith

had recognized His Father’s Station as a child; He had endured
poverty and cruelty when His Father had been imprisoned as a
heretic after the attempt on the Sháh’s life; He had experienced
the deprivation and calamities of being exiled from place to
place. As He grew up, He began to embody all the virtues: of
gentleness, courtesy, generosity, courage, wisdom, and humility.
He exemplified love for God and mankind and He spent every
day of His life serving others and bringing joy into their lives,
particularly the poor, the sick and the orphaned. As a young
man, He became Bahá’u’lláh’s secretary, as many volumes of
Writings streamed from Bahá’u’lláh’s Mighty Pen. He was His
Father’s closest companion and He took care of all His business
affairs and chores, negotiating with officials on His behalf and
dealing with the problems of His followers, so that Bahá’u’lláh
could concentrate on the all-important work of revealing the
tenets of His Faith.
Bahá’u’lláh eventually left the city and spent His remaining
years in a home in the countryside. When He died, He was
buried beside His home. This Shrine is a place of pilgrimage for
the Bahá’ís.
Abdu’l-Bahá was appointed in Bahá’u’lláh’s Will and
Testament as the Head of the Faith, as Bahá’u’lláh’s heir to
interpret His Writings and to be the Exemplar of His Teachings.
He was conferred divine authority to provide continued guidance
to the Bahá’ís. Although they had lost Bahá’u’lláh, His purpose
and plan were continued through ‘Abdu’l-Bahá.
As a small child, ‘Abdu’l-Bahá was different from other
children. Born on the same night that the Báb declared His
Mission, He had recognized His Father’s station when He was
young and He wanted to lay down His life for Bahá’u’lláh’s
sake. After the death of His beloved Father, He worked tirelessly,

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writing volumes to the Bahá’ís, including many interpretations of
the Writings of Bahá’u’lláh. He was in constant touch with the
Bahá’ís, answering their questions, guiding their activities,
encouraging them, and uplifting their spirits. His work was to
continue His Father’s work, but not to begin anything not already
willed by God and His Messenger.
Abdu’l-Bahá lived a life of simplicity. He wore one coat
until it became worn out. He also ate sparsely, a little goat
cheese and bread with tea for breakfast and sometimes He
had only one meal in a day. When He heard someone was
deprived of food, He would pack up the supper and send it
to the needy individual. Even ‘Abdu’l-Bahá’s way of conversing
was marked by simplicity. He often began with a reference to
some simple thing from nature and then wove His teaching
message into clear, straightforward phrases.
At the age of 70, with ill-health from His years of
imprisonment, ‘Abdu’l-Bahá set out on a journey to visit the
Bahá’ís of the West and to teach His beloved Faith. He first
visited London and Paris. He then sailed to North America.
After eight months there, He visited a few more cities in Europe
and then returned home. He gave public addresses to religious
audiences, scientists, university students, women’s clubs and
the poor, relating Bahá’í Teachings to the specific interests and
capacities of His audiences. Many of His talks were reported
in the newspapers. He uplifted and inspired them and many
were astounded that He could understand world affairs after
living a life of exile and imprisonment. He went from dawn to
dusk, giving interviews and delivering speeches. And He still
found time to give generously to the poor, as He did regularly
when at home. He was knighted for His selfless acts of service
to the people of Haifa.

Brief Summary of the Bahá’í Faith

When ‘Abdu’l-Bahá died in 1921, representatives of
Muslim, Christian and Jewish Faiths gave eulogies and crowds
of people from all walks of life attended. In His Will and
Testament, ‘Abdu’l-Bahá named His grandson, Shoghi Effendi,
as His successor and Guardian of the Bahá’í Faith. In His
Will, ‘Abdu’l-Bahá delineated an administrative system that
Shoghi Effendi was empowered to develop. And of course,
the Guardian’s task was to ensure the continuity of the Faith
without any divisions into sects.
Shoghi Effendi was a descendant of Bahá’u’lláh on his
mother’s side and of the Báb on his father’s side. He grew
up in ‘Abdu’l-Bahá’s home in Akka, and when not away at
school, he spent as much time as possible with ‘Abdu’l-
Bahá. He longed to serve Him and dedicated himself to this
work. He studied English at Oxford University to prepare
himself to serve as his Grandfather’s secretary and translator
of the Bahá’í Writings into English. He became a scholar in
English and could write with more eloquence, clarity,
precision and depth than native speakers. He was only 24
years old and still at Oxford, when ‘Abdu’l-Bahá passed
away. Reeling from the death of His Beloved Grandfather,
he took some time to grieve and prepare himself for the
responsibilities ahead. One of his first duties was to ensure
that the Bahá’í Faith was considered an independent world
religion and to have the existing government recognize Israel
as the World Centre of the Bahá’í Faith with the same
status as other religions, such as Judaism, Christianity and
Islam. He completed the Shrine of the Báb in Haifa. (The
Báb’s precious remains had been sent from place to place
and kept in hiding until it was possible to send them to
Israel, where ‘Abdu’l-Bahá had the bounty of interring them).

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Shoghi Effendi designed the gardens around the Shrine and
acquired land for more gardens, which he also designed
throughout his life.
Shoghi Effendi translated many of Bahá’u’lláh’s and
‘Abdu’l-Bahá’s Writings into English, ensuring that the Bahá’ís
would be unified in their understanding of the Writings of the
Faith. He wrote a history of the first hundred years of the
Bahá’í Faith. He translated five volumes of the Faith into
English. He wrote thousands of letters to individuals and
Bahá’í communities all over the world to explain and clarify
Bahá’í Writings, in his role as interpreter. He had a personal
relationship with each community and also maintained
correspondence with many individuals of prominence; with
royalty, with statesmen, with university professors and
educators.
During ‘Abdu’l-Bahá’s ministry, there were few local
assemblies and no national assemblies. Shoghi Effendi
delineated the principles to govern the Administrative Order
during the first year of his ministry. Bahá’u’lláh ordained that
there be no priests or clergy in the Bahá’í Faith. In every
community where nine or more Bahá’ís reside, a Local
Spiritual Assembly is elected to oversee the affairs of the
Bahá’í community. The Assembly is not responsible to the
electors; it consults continually with the community but is
responsible to the Teachings of the Faith as revealed by
Bahá’u’lláh. Authority in the Bahá’í administration is not given
to enhance an individual’s prestige. Instead, it is measured
by humility, self-sacrifice and service. Individuals must consult
in their meetings frankly and lovingly in an atmosphere of
respect, prayerfulness, courtesy and dignity so that rules and
regulations do not override the spiritual nature of meetings.

Brief Summary of the Bahá’í Faith

Shoghi Effendi devoted 16 years to lay down a firm foundation
and erect a pattern for all Bahá’í administrative institutions.
He helped to build strong national institutions and created
the International Bahá’í Council, the precursor of the Universal
House of Justice, the supreme institution directing the Bahá’ís
all over the world in their endeavors.
What was Shoghi Effendi like as an individual? He was
described as methodical, thorough, with a sense of perfection
and attention to detail. But he was also humble and self-
effacing, brushing aside any adulation and praise. He didn’t
want photographs to be taken of him, or his birthday to be
celebrated. He has also been described as dynamic, restless
and intense, with incredible powers of concentration and
accomplishment. He was shrewd and economical, a
determined bargainer, making it possible to save the Bahá’í
Faith large sums of money and then using the money saved
to engage in new enterprises. But he was also generous in his
contributions to the needy and to the Bahá’ís to further their
aims. He assisted financially with the translation and publication
of Bahá’í literature. (The Bahá’í Faith is supported exclusively
by voluntary contributions made by Bahá’ís). Shoghi Effendi
was not intimidated by the magnitude of work on his
shoulders. He toiled for thirty-six years, devoting time to
miniscule details and encompassing the whole planet with
detailed plans, instructions, and guidance. He alone ensured
the establishment of the Faith throughout the world and laid
the foundations of the Administrative Order. He died at the
age of 60 in London.
When Shoghi Effendi died, it was found that he had not
written a Will; there was no heir or Bahá’í relative able to fit
the requirements laid down by ‘Abdu’l-Bahá for a successor

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to the Guardian. The destiny of the Faith was now in the
care of the Hands of the Cause of God, an institution originally
brought into being by Bahá’u’lláh in His lifetime to aid in the
development of the Faith. These learned individuals acted as
advisors and protectors of the Faith. Hands of the Cause
representing all the continents came together to determine
their next steps. Nine of them were chosen to serve at the
World Centre and work for the protection and promotion of
the Faith, following the instructions of Shoghi Effendi. Under
their care and protection, the Universal House of Justice was
elected in 1963.
Through a unique system of governance, The Universal
House of Justice is elected by all National Spiritual Assemblies
in the world. This body legislates on matters not expressly
recorded in the Writings of Bahá’u’lláh. It guides, organizes and
unifies the affairs of the Bahá’ís throughout the world. It gives
spiritual guidance to the worldwide Bahá’í community and directs
its administrative activities. The Universal House of Justice is
elected every five years in a free, democratic election by secret
ballot. No nominations or electioneering is permitted in Bahá’í
elections. The nine elected members come from different
countries and backgrounds, but work as one for the unification
of the world, according to the Teachings of Bahá’u’lláh. The
Universal House of Justice is considered to be an infallible source
under the care and protection of Bahá’u’lláh and His guidance
and inspiration.

اختر نصًّا ثانيًا لقراءته بالتوازي — ترجمةً، أو أيّ نصٍّ آخر.