# Baha'i Teachings on Economics

*Exported from [Holy-Writings.com](https://www.holy-writings.com/) on 2026-06-19 — 1 clipping.*

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> Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: John Ferraby, Baha'i Teachings on Economics, London: Bahá'ı́ Publishing Trust, bahai-library.com.
> ──────────────────────────────────────────────────────────────────────
> 
> Baha'{ Teachings
> on                  .
> ECONOMICS
> 
> JOHN FERRABY
> 
> BAHA'I PUBLISHING TRUST
> Approved by
> NATIONAL SPIRITUAL ASSEMBLY OF
> THE BAHA'Is OF THE BRITISH ISLES
> 27 RUTLAND GATE
> LONDON, s.w.7
> Baha'i Teachings on
> ECONOMICS
> 
> That the world is sick no one in these
> troubled times would deny. Upon the .
> diagnosis of its sickness, however, there is
> no such agreement. Some would say it
> was caused by bad organisation; human
> á nature is neither better nor worse than it
> always has been; change the organisation,
> they say, and everything will be all right.
> Others regard organisation as unimpor-
> tant; only let men lead better lives, say
> these, and organisation will look after
> itself. Between the two extremes is the
> attitude of the Baha'i teachings.
> These recognise that man's nature has
> progressed through a series of ups and
> downs; sometimes mankind is at a
> spiritual peak, sometimes in a spiritual
> trough, but in the long run development
> is always upwards. Were this not so,
> mankind would still be in the primitive
> state of his forefathers. Increasingly effi-
> cient organisation of material resources is
> not the cause of this spiritual progress;
> progress in both spheres has been a
> consequence of another cause, the educa-
> tion of mankind by God. Just as man's
> body developed from a simple organism,
> so the spirit of man is also developing;
> and its development is guided by. the
> Divine Will. Whenever the spirit of man
> spurts forward, his organisation of material
> things spurts forward too.
> Without progress of the spirit, organisa-
> tion is worthless. No organisation can
> carry men higher than the level their souls
> have reached. Organisation canalises the
> energies of men, prevents waste, breeds
> co-operative action, but it cannot make
> bricks without straw; if men are not
> potentially capable of great things, organ-
> isation cannot change their inner natures.
> But even the best of material needs
> moulding into shape. Law is needed to
> keep the imperfections of man within
> bounds; economic organisation is needed
> to ensure that the material gifts of God
> are properly used. Without organisation
> there would be chaos.
> The Baha'i teachings present a picture
> of mankind, revivified and reborn, achiev-
> ing progress through an organised unity.
> That this is no empty hope is demonstrated
> by the Baha'i commurut1es all over the
> world. In almost every country there will
> be found a group of people doing their
> best to practise the spiritual teachings of
> Baha'u'llah, free from prejudice of race or
> class or creed, anxious to recognise truth
> from whatever quarter it comes, working
> for the peace and well-being of the whole
> of mankind and organised so that a single
> spirit works through them all. The action
> of the Baha'i world is a unified action
> which allows scope for local differences
> and individual initiative. It is a model on
> a small scale of what an organised world
> should be like.
> A keynote of both the Baha'i administra-
> tion and the Baha'i economic teachings is
> adaptability. They contain no rigid eco-
> nomic plan, for different places and differ-
> ent periods of history require different
> forms of economic organisation. Instead
> there are certain broad principles laid
> down to act as a framework within which
> the local government and the world
> government of the future can from time
> to ti~e make their own plans to meet their
> own particular problems.
> 
> A WORLD ECONOMY
> 
> The first of these principles is that there
> must be a world economy. "The earth is
> but one country and mankind its citizens,"
> wrote Baha'u'llah. This implies a wider
> loyalty than the loyalty to national govern-
> ments which leads people to regard the
> sufferings of human beings in other coun-
> tries as no concern of theirs. "Let not a
> man glory in that he loves his country; let
> him rather glory in this, that he loves his
> kind." Not only must individuals look upon
> all men as their brothers, whether or not
> they are of the same race, colour, class or
> creed; governments also must have at heart
> the well-being of the whole. human race.
> Of the elected representatives of the people
> of a state Baha'u'llah said: "It behoveth
> them ... to be trustworthy among His serv-
> ants, and to regard themselves as the rep-
> resentatives of all that dwell on earth."
> The present Guardian of the Baha'i Faith,
> explaining the teachings of Baha'u'llah,
> said in 1936: "Unification of the whole of
> mankind is the hall-mark of the stage
> which human society is now approaching.
> Unity of family, of tribe, of city-state, and
> nation have been successively attempted
> and fully established. World unity is the
> goal towards which a harrassed humanity
> is striving. Nation-building has come to an
> end. The anarchy inherent in state sover-
> eignty is moving towards a climax. A
> world, growing to maturity, must abandon
> this fetish, recognise the oneness and whole-
> ness of human relationships, and establish
> once for all the machinery that can best in-
> carnate this fundamental principle of its
> life."
> In such a world, economic organisation
> would have as its sole aim the good of
> humanity and not merely the interests of
> some limited group of people such as a
> class or a nation. There would be a world
> currency because it is needed (all objec-
> tions to it are based on a limited nationalist
> outlook); a universal system of weights and
> measures, because there would be no reason
> to forego the convenience of a standardised
> system. Raw materials will be organised
> for the good of the world as a whole and
> markets co-ordinated in the most effective
> way. All the bars to world trade which now
> exist will vanish along with the greatest of
> all economic handicaps, war; for the chief
> cause of war is placing sectional interests
> before the interests of mankind. Along with
> the war of armaments the economic war of
> tariffs and quotas will vanish .too. The
> whole world will become a single state,
> economically as well as politically.
> This is the goal. Until it is achieved,
> whatever promotes the unification of man-
> kind is good. The governments of the
> world must agree as the occasion demands
> how best to apply the principle of a world
> economy, until such time as a central
> body is established to direct development.
> The Economic and Social Council of the
> United Nations Organisation is an impor-
> tant step on the road indicated by
> Baha'u'llah eighty years ago.
> 
> POVERTY AND WEALTH
> Within each group of mankind, at
> present organised in national units, the
> most important cause of economic diffi-
> culties is the extremes of poverty and
> wealth which are so prevalent. Baha'u'llah
> taught that everyone has a right to the
> necessities of life and.a certain amount of
> well-being; on the other hand no one has
> the right to more wealth than he can use.
> Laws should therefore be passed guaran-
> teeing to the poor a minimum standard of
> life and placing a limit on the wealth of any
> one individual.
> Since these teachings were given the
> more advanced nations have progressed a
> considerable way along this path by means
> of unemployment insurance, minimum
> wages, graded income tax and similar
> devices; but in the less advanced countries
> there are still millions who lack the bare
> means of existence; and even where there
> has been progress, present laws are still far
> from ideal. In some countries the vast
> majority of the inhabitants are ill-fed and
> ill-clothed, while a few families control the
> greater part of the wealth of the whole
> country. Such an arrangement destroys the
> advantages of collective living; even the
> wealthy are bowed down by the tremen-
> dous task of administering a colossal for-
> tune; the poor live in an unjust misery. To
> equalise the wealth of the poor and the rich
> would not be desirable, for this would end
> in discouragement and disorganisation;
> the moderate course is to place limits on
> wealth and to allow free variation between
> these limits, so that all have something for
> which to strive but none are in want.
> To establish such a system in the world
> will take some time, and great importance
> is placed on voluntary giving. "O ye rich
> ones on earth," writes Baha'u'llah, "The
> poor in your midst are My trust; guard ye
> My trust, and be not intent only on your
> own ease"; and again, "O ye rich ones of
> the earth! Flee not from the face of the
> poor that lieth in the dust, nay rather be-
> friend him and suffer him to recount the
> tale of the woes with which God's inscrut-
> able Decree hath caused him to be afflic-
> ted."
> 
> INDUSTRIAL ORGANISATION
> In spite of industry's immense develop-
> ment in the last hundred years, the Baha'i
> teaching points out the obvious but often
> forgotten truth that agriculture is the most
> important industry. By far the greater part
> of the inhabitants of the world earn their
> livelihood through agriculture and all de-
> pend upon it to keep alive. Many of the
> Baha'i teachings concerning economic
> organisation are therefore given in accord-
> ance with the needs of an agricultural
> community; it will be for the governments
> of the future to apply the principles em-
> bodied in these teachings to the varying
> needs of different types of industrial town.
> Each village should have a storehouse or
> "House of Finance," to be controlled by
> wise men appointed by the democratically
> elected local governing body. Contribu-
> tions to this central store will depend on
> wealth and on fortune in the year's work.
> From it, help will be given to those in need
> and to those who have suffered misfortune
> during the year. For example, orphans,
> cripples and the aged will be kept in
> comfort and if a farmer with heavy com-
> mitments has a bad year for some reason,
> he would also be helped. 'Abdu'l-Baha
> says "the result of this system will be that
> each individual member of the body politic
> will live most comfortably and happily
> under obligation to no one. Nevertheless,
> there will be preservation of degrees be-
> cause in the world of humanity there must
> needs be degrees."
> In larger cities there should be a system
> on a larger scale, but the principles, such
> as graduated taxation and the taking into
> account of commitments, as well as
> income, would also apply. Certain addi-
> tional principles are needed for industry,
> since the majority of people are employed
> by others. On the question of nationalisa-
> tion of industry no definite rule is given, for
> the same considerations do not apply at all
> times and places. The chief principle which
> Baha'u'llah lays down is that employees
> should be given as well as their wages, a
> share in the profits of their employers. In
> this way they are given an interest in their
> work, besides a share in the proceeds of
> their labours. Even the most advanced
> countries are still far from the ideal given
> by Baha'u'llah for industrial organisation.
> 
> CAPITAL AND LABOUR
> The biggest of all the problems of
> industry is the relation between capital and
> labour. Each is liable to feel that the other
> is getting too big a share of the income
> arising from the sale of goods whose pro-
> duction requires both labour and capital.
> The workmen demand a bigger share, the
> employers say higher wages will leave them
> no profit at all, and a state is reached in
> IO
> which the whole industry is paralysed by a
> strike or lock-out to the detriment of both
> capital and labour. Since there is no rule
> by which to determine what share each
> should have, the tendency has been for
> both to try to get as much as they could,
> and for the division to reflect the relative
> strength of employers and employed rather
> than any just solution of the problem.
> Baha'u'llah knew this situation would
> arise. Explaining His teachings, 'Abdu'l-
> Baha said: "The solution of the economic
> questions will not be brought about by
> array of capital against labour and labour
> against capital in strife and conflict, but
> by the voluntary attitude of goodwill on
> both sides." \..Yithout goodwill, strike must
> follow strike until the whole economic
> system is dislocated.
> In a world organised according to the
> laws of Baha'u'llah there would be no
> strikes. Maximum and minimum incomes
> having been fixed and a profit-sharing
> system of payment established, the basis
> for justice will be present. Administrative
> channels will be provided through which
> all disagreements could be peacefully
> settled. Should goodwill be lacking on one
> side or the other, force would be applied
> not through one-sided strike action, but by
> law. Strikes will become illegal, since there
> will be no need for them, and "strikes are
> conducive to destruction and laws are the
> cause of life." But this state of things still
> lies in the future. Speaking in America in
> 1912 'Abdu'l-Baha said: "In reality, so far,
> great injustice has befallen the common
> people. Laws must be made because it is
> impossible for the labourers to be satisfied
> with the present system."                      á
> 
> ADMINISTRATION
> In a pamphlet on economics, little can
> be said about the administrative system of
> the Baha'i Faith, which is unique in the
> history of the world. It combines the
> advantages of democracy, monarchy and
> oligarchy, without being subject to their
> disadvantages. Its effect is to place govern-
> ment in the hands of disinterested men and
> women whose sole object is to carry out the
> will of God in accordance with the guid-
> ance given by Baha'u'lla.h. Such persons
> will not be swayed by partisan interests, but
> will have at heart the good of all mankind.
> It is they who will apply the laws of Baha'-
> u'llah to the needs of different places and
> times and will be responsible for seeing that
> justice is obtained by all, rich and poor
> alike.
> There will be some decentralisation, but
> final authority will be centralised. With
> regard to administrative matters, it will re-
> pose in an elected world parliament; with
> regard to interpretation of Baha'i Scrip-
> ture, in the hands of a Guardian, appoin-
> ted in a manner laid down in the Baha'i
> scriptural writings themselves. Local auth-
> orities will have more power than now,
> national authorities less as part of their
> present authority will be exercised by the
> world parliament. Every provision will be
> made for preserving local and national
> characteristics where these are desirable,
> but they will be co-ordinated into a unified
> whole, and provision made for treating
> world problems on a world scale. Nations
> have as yet made little progress towards
> such a form of administration.
> 
> THE INDIVIDUAL
> It is upon the behaviour of individuals
> that the success of any economic system
> depends. Consequently all religious teach-
> ings addressed to the individual are rele-
> vant to economics. Baha'u'llah, however,
> has given certain individual teachings
> which are specially relevant.
> Many of these are concerned with .the
> attitude to work. To Baha'is, work is
> obligatory both for the rich and for the
> poor; begging and living in idleness are
> both forbidden. "The basest of men,"
> writes Baha'u'llah, "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"; and again, "The most
> despised of men before God is he who sits
> and begs." This work should be treated as
> a service to humanity, as well as a means of
> livelihood; "Occupy yourselves with that
> which will profit yourselves and others
> besides yourselves." The spirit in which
> work is approached should be that of a
> craftsman producing the best work he can
> in order to serve God and his fellow men.
> Work done in this spirit is deemed in the
> Baha'i Faith equivaleill to worship. "The
> man who makes a piece of notepaper to the
> best of his ability, conscientiously, con-
> centrating all his forces on perfecting it, is
> giving praise to God."
> Another individual teaching which is
> specially relevant to economics concerns
> the making of wills. Everyone should make
> a will and is free to leave his property to
> whom he wishes. Baha'u'llah has indicated,
> however, the way in which it is best to
> divide property. Children, wife; parents,
> brothers and sisters, and also teachers
> get a share, the biggest shares going to
> the closest relatives. Should anyone die
> intestate, this method of division would
> be imposed. Such a method would help
> to achieve a more equitable distribution
> of wealth and to reduce inequalities.
> The more general teachings of
> Baha'u'llah also have a profound economic
> influence, but these are common to -all
> religions and can only be summarised here.
> Like the Founders of other great religions,
> Baha'u'llah taught that true wealth con-
> sists of spiritual, not á material riches.
> Material riches are a severe test to the
> spirit of man; poverty may be a hidden
> blessing. Thus He sa.,ys: "Be not troubled
> iu poverly 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.'' Detachment from
> the things of the world is enjoined, but
> detachment does not mean renunciation.
> "Should a man wish to adorn himself with
> the ornaments of the earth, to wear its
> apparels, or partake of the benefits it can
> bestow, no harm can befall him, if he
> alloweth nothing whatever to intervene
> between him and God, for God hath
> ordained every good thing, whether crea-
> ted in the heavens or in the earth, for such
> of his servants as truly believe in Him."
> The important thing is not to become
> attached to possessions and worldly in-
> terests.
> Moderation in all things is enjoined,
> both for individuals and for governments.
> Justice is particularly stressed, as well as
> love and service. Deeds rather than words
> are recognised as the hallmarks of faith.
> Trustworthiness is given great importance
> and, of course, honesty. These teachings,
> are set out in other book~ which are
> available to all.
>
> — *Baha'i Teachings on Economics (Used by permission of the curator)*