Baha'i Teachings on Economics
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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.
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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)