# Economics and the Baha'i Faith

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> Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: Hooshmand Badee, Economics and the Baha'i Faith, bahai-library.com.
> ──────────────────────────────────────────────────────────────────────
> 
> Economics
> and
> The Bahá’í Faith
> 
> Hooshmand Badee
> First published in Great Britain in 2018
> Revised edition: 2021
> Second edition: 2023
> Copyright © Hooshmand Badee
> All rights reserved
> Cover design by Sam Goodwin
> Printed in the UK
> ISBN: 978-1-5136-4144-7 (Paperback)
> 
> ii
> Acknowledgement is lovingly given to the Academic Review Panel
> of the National Spiritual Assembly of the Bahá’ís of the United
> Kingdom for reviewing this work.
> 
> iii
> For May,
> 
> and her loving support
> 
> throughout this journey
> 
> v
> Acknowledgements
> The preparation, execution and completion of this work has
> been made possible through the unfaltering support of many
> people to whom I owe a debt of gratitude. Foremost, my
> sincere thanks go to Professor Sebastian Kim and Professor
> Pauline Kollontai, who were a source of inspiration for me
> throughout this intellectual undertaking. I am immensely
> thankful to the University of Leeds and York St John
> University for providing the opportunity to do this research
> on the proposed theme ‘Bahá’í teachings on economics and
> their implications for the Bahá’í community and the wider
> society.’
> 
> Within the Bahá’í community, I received guidance and
> support from the Supreme International Governing Council
> of the Bahá’í Faith, the Universal House of Justice. In
> addition, the Research Department of the Universal House of
> Justice has been very supportive and cooperative in providing
> the original Writings needed and assisted in the translation of
> a number of original quotes from the Persian language into
> English. Also, I have received necessary guidance on a
> number of subjects pertinent to this work from the Office of
> Huqúqu’lláh (the Right of God) and the Office of Social and
> Economic Development. I am immensely thankful to the
> Academic Review Panel of the National Spiritual Assembly
> of the Bahá’ís of the United Kingdom for reviewing this
> work and providing valuable comments. I am appreciative
> and owe profound gratitude to several Bahá’í scholars
> including Dr Shapour Rassekh, Dr Vahid Ra’fati, Mr Mark
> Hellaby, and Professor Farhad Rassekh, for their generosity
> in giving me their time and sharing their valuable knowledge
> and insights.
> vi
> Finally, the greatest source of support during the period of
> doing this work has been my family, whose unwavering
> support have been a part of this work. The love, sacrifice and
> patience of my son, Vesal, showed with technical assistance
> and formatting of this book in addition to his very helpful
> thoughts and ideas, were received with great appreciation.
> Special thanks to my son-in-law, Sam, for his assistance in
> the design and formatting of different parts of this work.
> While carrying out this work, in addition to our three
> amazing children and their spouses, my life was blessed and
> made enjoyable by six grandchildren, Kara, Lana, Lani, Mila,
> Aría and Hooshmand by their charm and fascination and I
> hope in their own good time they will choose the path to
> serve humanity. There are never enough words to express my
> love and gratitude to my wife, May, for her full support. Her
> sacrifices and advice have been outstanding, and it is
> inconceivable how I could have finished this work without
> her support.
> 
> vii
> Introduction
> 
> Table of Contents
> Chapter 1:            Introduction .........................................................5
> 1.1         Background ...................................................................... 5
> 1.2         The organization of this work ................................... 5
> 1.3         The aims and significance of this work .................. 8
> 1.4         Exploring questions ....................................................10
> Chapter 2:            Key Words, Definitions and Concepts ......... 13
> 2.1         Defining economics .....................................................13
> 2.1.1      Is there a Bahá’í economic system? ........................................ 18
> 2.1.2      Bahá’í community ......................................................................... 25
> 2.1.3      Wider society .................................................................................. 28
> 2.1.4      Analogy of human family ........................................................... 29
> 2.1.5      The concept of spirituality .......................................................... 33
> 2.2    A brief account of economic condition of Iran at
> the time of Bahá’u’lláh ..............................................................42
> Chapter 3:            Sustainable Production .................................. 45
> 3.1         Introduction ...................................................................45
> 3.2         A brief historical perspective of work ethics......46
> 3.3         Sustainable production ..............................................52
> 3.4         Bahá’í work ethics .......................................................56
> 3.5         Bahá’í teachings to increase supply of labour ....66
> 3.5.1      Bahá’í view on idleness ............................................................... 67
> 3.5.2      Bahá’í view on begging as a profession................................. 70
> 3.5.3      Gender Equality ............................................................................. 75
> 3.5.4      Importance of education and training ..................................... 80
> 3.5.5      Consultative method of decision-making .............................. 84
> 3.5.6      Employee-employer relationship ............................................. 89
> 3.5.7      Cooperation instead of competition......................................... 91
> 3.6         Chapter conclusion ......................................................96
> Chapter 4:            Distributive Justice .......................................... 98
> 4.1    Introduction ...................................................................98
> 4.2    Significance of distributive justice .........................99
> 4.3    Contemporary theories of distributive justice 105
> 4.4    Bahá’í perspective on importance of wealth ... 110
> 4.5    Bahá’í view on self-interest ................................... 116
> 4.6    Voluntary versus compulsory giving.................. 124
> 4.7    Specific Bahá’í principles on wealth
> redistribution ........................................................................... 130
> 4.7.1      Government participation ........................................................ 130
> 4.7.2      Principle of equity ...................................................................... 134
> Economics and the Bahá’í Faith
> 
> 4.7.3      Principle of profit sharing ........................................................ 135
> 4.7.4      Progressive income tax ............................................................. 140
> 4.7.5      Law of inheritance...................................................................... 144
> 4.7.6      Law of Ḥuqúqu’lláh (the Right of God) ............................ 146
> 4.7.7      Contribution to the Bahá’í Fund ............................................ 152
> 4.8    Application of Bahá’í teachings on wealth
> redistribution .......................................................................... 155
> 4.9    Chapter conclusion .................................................. 157
> Chapter 5:           Sustainable Consumption ........................... 159
> 5.1         Introduction ............................................................... 159
> 5.2         Bahá’í view on sustainable consumption ......... 160
> 5.3         Challenges of consumerism .................................. 169
> 5.4         Importance of consumer education ................... 180
> 5.5         Significance of the principle of moderation .... 186
> 5.6         Human contentment and satisfaction ............... 193
> 5.7         Specific teachings on sustainable consumption
> 5.7.1      Bahá’í law of Fasting ................................................................ 196
> 5.7.2      Bahá’í perspective on food and agriculture ....................... 197
> 5.8         Further analysis of sustainable consumption 206
> 5.9         Chapter conclusion .................................................. 210
> Chapter 6:           The Bahá’í view on Globalization ............. 212
> 6.1    Introduction ............................................................... 212
> 6.2    Unity, a prerequisite for understanding Bahá’í
> globalization ............................................................................. 214
> 6.3    Recognition and application of unity/oneness223
> 6.4    Good life and real happiness ................................ 226
> 6.5    Importance of core values ..................................... 232
> 6.6    Multi-dimensional aspect of an ideal
> globalization ............................................................................. 238
> 6.7    Principles of an ideal globalization .................... 243
> 6.7.1      Universal and compulsory education ................................... 243
> 6.7.2      The view on world citizenship ............................................... 250
> 6.7.3      Institution of the Nineteen-Day Feast .................................. 251
> 6.7.4      Institution of the Bahá’í marriage ......................................... 253
> 6.7.5      Pioneering and travel teachings ............................................. 254
> 6.7.6      Developing capacity to serve humanity .............................. 254
> 6.7.7      Social and economic development projects ....................... 255
> 6.7.8      The Covenant ............................................................................... 256
> 6.7.9      A universal language and script............................................. 257
> 6.7.10        Principle of universal peace .............................................. 259
> 6.7.11        Free and fair international trade ....................................... 264
> 6.7.12        An international single currency...................................... 270
> Introduction
> 
> 6.8         Opportunities and challenges of globalization279
> 6.9         The Bahá’í World Commonwealth ...................... 289
> 6.10        Chapter conclusion ................................................... 292
> Chapter 7:             Bahá’í Development Approach: Theory and
> Practice               295
> 7.1         Introduction ................................................................ 295
> 7.2         Office of Social and Economic Development .... 296
> 7.3         Bahá’í view on development ................................. 297
> 7.4         Features of Bahá’í development .......................... 301
> 7.4.1      Material and spiritual coherence............................................ 302
> 7.4.2      Universality of Bahá’í development .................................... 302
> 7.4.3      Development with the grassroots population .................... 303
> 7.4.4      Education, the focus of Bahá’í development ..................... 304
> 7.4.5      Community building process .................................................. 306
> 7.4.6      Collabouration with organizations of the society ............ 307
> 7.5         Development in practice ........................................ 307
> 7.6         Chapter conclusion ................................................... 309
> Chapter 8:     The Bahá’í Inspired Model of Economic
> Sustainability 311
> 8.1         Introduction ................................................................ 311
> 8.2         The rational for the model ..................................... 313
> 8.3         Illustration of the model ......................................... 317
> 8.3.1      Unity/oneness as the nucleus of the model ........................ 319
> 8.3.2      Spiritual principles of the model ........................................... 321
> 8.4         Human, financial and physical resources ......... 329
> 8.5         Cycle of production ................................................... 331
> 8.5.1      Needs and wants ......................................................................... 331
> 8.5.2      Organizations ............................................................................... 333
> 8.5.3      Sustainable production .............................................................. 336
> 8.5.4      The market .................................................................................... 338
> 8.5.5      Distributive justice ..................................................................... 340
> 8.5.6      Sustainable consumption.......................................................... 341
> 8.6         Analysis of the model ............................................... 343
> 8.7         Chapter conclusion ................................................... 350
> Chapter 9:     Concluding Remarks ................................... 352
> Bibliography ............................................................................. 361
> 
> Economics and the Bahá’í Faith
> 
> Introduction
> 
> Chapter 1: Introduction
> 
> 1.1     Background
> Living amongst both the poorest nations and the wealthiest
> nations of the world for more than four decades, I witnessed
> inequality in standard of living and widening the gap between
> the rich and the poor. It was clear experiences and
> observations that such extremes and their effects on people’s
> lives are of great significance in understanding and redefining
> human well-being. This condition of affairs and living
> disorder need to be addressed, by examining its causes and
> symptoms. The multiple consequences of contemporary
> social and economic problems have affected the whole of
> society, and the Bahá’í community as part of it. I was
> intrigued to learn how the Bahá’í teachings and the Bahá’í
> community would respond to such challenges. Statements
> such as ‘The fundamentals of the whole economic condition
> are divine in nature’ 1 and ‘spiritual solution to economic
> problems’ are repeatedly appears, in one form or another, in
> the Bahá’í scriptures and introductory literatures as one of the
> basic principles to tackle contemporary economic issues. This
> requires an in-depth study of Bahá’í teachings on economics,
> and what the Bahá’í Writings or approach has to offer to have
> an impact on the economic life of Bahá’ís and the wider
> society.
> 
> 1.2   The organization of this work
> The exploration of Bahá’í teachings on economics is carried
> 
> ‘Abdu’l-Bahá. Promulgation of Universal Peace, compiled by Howard MacNutt,
> 2nd ed., Wilmette IL: Bahá’í Publishing Trust, 1982, p. 237.
> Economics and the Bahá’í Faith
> 
> out through four broad categories of sustainable production,
> distributive justice, sustainable consumption, and Bahá’í
> globalization. Also, a Bahá’í inspired model of economic
> sustainability based on moral incentives is developed as a
> theoretical representation of the impact of Bahá’í teachings
> on human conduct in creating a more balanced economy. It is
> vital to note the interconnectedness of these groupings.
> 
> For the principal research organization, the Writings of three
> central figures of the Bahá’í Faith, Bahá’u’lláh, the Báb and
> ‘Abdu’l-Bahá, along with the Writings of the Guardian of the
> Bahá’í Faith, Shoghi Effendi, and the international governing
> body, the Universal House of Justice allow to construct a
> framework for this work. It is the relationship of these
> Writings which I find attractive and which will enable me to
> draw a range of strands in this book into a coherent whole.
> The inspiration for this work is, therefore, a combination of
> observation, theoretical investigation along with positive and
> constructive critical thinking.
> 
> Although, all practice is drawn from a Bahá’í perspective and
> as a consequence analysis is related in a direct way to Bahá’í
> way of thinking with an episcopal structure Bahá’í
> institutions. However, some comparison will be made with
> other schools of economics and the views and Writings of
> non-Bahá’í writers and scholars where similarities and more
> widely applicable understandings of oversight can be
> identified. Extensive numbers of passages from the primary
> and secondary Bahá’í sources on relevant topics are
> incorporated into the main body of this enquiry as the basis
> for the analysis of various subjects linked with economics. To
> assist further, it is necessary to become familiar with specific
> terminologies used. The following guideline from the
> Universal House of Justices is a standard for appropriate
> Introduction
> 
> terminologies that need to be used in any academic
> exploration using Bahá’í Writings:
> The Writings of the Báb and Bahá’u’lláh are Divine
> Revelation, the Word of God, and together with the
> Writings of ‘Abdu’l-Bahá constitute the Sacred
> Scriptures of the Bahá’í Faith. According to Shoghi
> Effendi, the words of ‘Abdu’l-Bahá ‘are not equal in
> rank, though they possess an equal validity with the
> utterances of Bahá’u’lláh.’ As to the Writings of the
> beloved Guardian and the pronouncements of the
> Universal House of Justice, though they are not
> regarded as Sacred Texts nor of the same station as
> the Writings of the Central Figures of the Faith,
> nevertheless, they are authoritative statements of
> guidance and direction for the [Bahá’ís].2
> 
> This approach will be used for the organization of this book
> for the extensive use of Bahá’í Sacred Scriptures or primary
> resources, and the authorised interpretation by ‘Abdu’l-Bahá
> and Shoghi Effendi. The selected passages are then adapted
> to a specific topic, and subsequently, they are explained,
> analysed and compared. The original and primary sources
> have been in Arabic and Persian. It must be noted that the
> primary resources were originally written either in the
> authors’ hand writings or by their secretaries concurrently
> during the revelation and sealed by the author. Shoghi
> Effendi subsequently translated a number of these Writings
> from Persian and Arabic into English. He, during his own
> lifetime, mostly used the English language as a medium for
> correspondence and communication with the Bahá’í world
> community in the West (Europe and America). It should be
> noted that where references have not been provided,
> assertions are the perception and opinion of the author.
> 
> Universal House of Justice. ‘Bahá’í Terminology for Research Purpose,’ 11
> November 2014, electronic correspondence to the author of this book.
> Economics and the Bahá’í Faith
> 
> 1.3     The aims and significance of this work
> The principal purpose of this work is to explore the Bahá’í
> teachings on economics and the way it contributes to the
> academic discourse, and its impact on the members of this
> Faith. Furthermore, knowing and understanding the economic
> principles of the Bahá’í Faith can assist Bahá’ís to work
> towards building a community based on spiritual and material
> foundation, as intended by its Prophet-Founder, Bahá’u’lláh.
> 
> Economics has advanced immensely in last two hundred
> years and since the publication of The Wealth of Nations in
> 1776 by the founder of school of the classical economics and
> the father of modern economics, Adam Smith. Although
> during this period the actual wealth of nations has increased
> substantially, at the same time the gap between high and low
> wage earners has increased dramatically in most of the world,
> particularly since the early 1990s. This is despite strong
> economic growth that created millions of new jobs.
> Therefore, the aim of this work is to demonstrate that
> economics and its relevant models and theories may have the
> ability to deal with many of the contemporary economic
> problems so long as the processes and the end result promote
> the common good and eliminate extremes of wealth and
> poverty.3
> 
> Another significant aim of this undertaking is the proposition
> that moral incentives ought to be one of the pillars of modern
> scientific economics. The perception is not that economics
> and religion are the same, or generate the same outcome, or
> have the same effect on people, but that the effective
> partnership of the two fosters human well-being. It will be
> argued that religion and economics combined are potent
> 
> See: <https://ourworldindata.org/economic-growth>
> Introduction
> 
> forces for resolving socio-politico-economic challenges of
> our time. On one hand, the Bahá’í literatures advocate ending
> discrimination, creating strong families, gender equality,
> poverty alleviation, and exercising moderation, compassion,
> honesty, and good character. On the other hand, economic
> literatures and academic textbooks emphasis the role of
> saving and capital formation, sound use of money and
> banking, the specialisation and trade, entrepreneurship, the
> role of government and legislation, efficient use of resources,
> equilibrium in the price system, and promoting growth and
> development. Consequently, the two disciplines of religion as
> a spiritual realm and economics as a social science, although
> different entities, together would be able to have a great
> impact on people’s well-being. Exploring this view, Bahá’í
> scholar and development expert Haleh Arbab focuses on the
> significance of the role of science and religion:
> Through science we explore the social and physical
> aspects of reality. Through religion we learn about
> spiritual principles that are expressions of the laws of
> material and spiritual existence and are built into the
> very structure of the universe. Religion reveals to us
> principles that are neither invention of the human
> mind nor social conventions but insights into reality.
> Science helps us apply these principles to the social
> reality in which we are immersed.4
> 
> According to this view, religion and economics have
> complementary aims and objectives and together accelerate
> the economic well-being of the whole society.
> 
> Shoghi Effendi, the Guardian of the Bahá’í Faith emphasises
> the significance of the Bahá’í Writings on economics and the
> need ‘to study the economic teachings in the light of modern
> 
> Haleh Arbab. Electronic correspondence with the author, 15 January 2015.
> Economics and the Bahá’í Faith
> 
> problems more thoroughly.’ 5 The discussion of ‘modern
> problems’ is based on my keen awareness and understanding
> of events throughout the world, whether social, political,
> economic, environmental and spiritual. Also, it is based on
> my academic background as an academic economist. Modern
> problems are examined in light of Bahá’í literature. It is
> notable to state that the Bahá’í Faith has appeared in an age
> of socio-politico-economic interdependency and has
> addressed contemporary problems through a great diversity
> of Writings. These contemporary problems will be studied
> and examined throughout this work. Exploring Bahá’í
> teachings while there is not yet a significant research on
> Bahá’í economics makes this work more challenging, and at
> the same time, original and timely to the Bahá’í community
> and to academia.
> 
> 1.4    Exploring questions
> This work explores the role of Bahá’í teachings in economics
> and their implication for the Bahá’í community and the wider
> society. It examines and discusses this topic by raising a
> number of questions:
> I.    Is there a role for morality and spirituality in
> economics? The view expressed is based on the idea
> that if economics creates relationships between people
> through exchange and trade, then moral incentives
> would be a necessary condition for an effective
> relationship. Moral codes of conduct become essential
> for an effective application of supply and demand and
> price mechanism among participants of the market,
> and for successful operation of production,
> distribution and consumption as three basic principles
> of economics, and in the process of attaining a
> 
> Shoghi Effendi. ‘Letter dated 11 January 1933.
> Introduction
> 
> meaningful and enlightened globalization. This work,
> in reference to the Bahá’í Writings, suggests a number
> of moral and spiritual principles for smoother
> operation of economic principles.
> 
> II.   What are some of the distinctive principles
> influencing Bahá’ís to participate in the labour market
> to produce goods and services? This question is in
> reference to Bahá’í work ethics. In the modern
> working environment, the focus is on the role of
> technology and motivating the workforce to produce
> more through monetary incentives. But there is more
> than simply producing more: other factors need to be
> considered, such as producing commodities that
> preserve the environment, allocate resources
> efficiently, and are befitting human dignity. The
> Bahá’í attitude, therefore, is beyond just producing
> more.
> 
> III.   How does the Bahá’í principles more effectively
> influence the elimination of extremes of wealth and
> poverty? This leads to a discussion of how Bahá’ís
> attempt to develop a sustainable life-style. The
> discussion of improving economic performance and
> increasing the total level of output, together with
> wealth redistribution, would be inadequate and
> incomplete if a minority of the world population
> possesses a large proportion of the world’s resources.
> 
> IV.    How does the Bahá’í concept of globalization differ
> from the one currently forming? Today the lives of
> people and organizations are interrelated and
> interdependent in every aspect: economically,
> socially, politically, environmentally, and spiritually.
> Economics and the Bahá’í Faith
> 
> The future life of humanity is global and this is more
> a certainty than an option. The challenge, however, is
> in the process adopted for a meaningful global
> integration.
> 
> V.   To what extent are the Bahá’í principles on
> economics being practiced within the Bahá’í
> community? It will be discussed that the application
> of Bahá’í teachings on economics, at this early period
> of the development of the Bahá’í community, is
> challenging because there is no Bahá’í state or a
> Bahá’í government to fully implement Bahá’í
> principles. Bahá’ís are spread all over the world with
> diversity of cultures, and a part of socio-politico-
> economic system of a country they live.
> 
> Key Words, Definitions and Concepts
> 
> Chapter 2: Key Words, Definitions and Concepts
> 
> The proposed title for this work is ‘Economics and the Bahá’í
> Faith’, which explores the Bahá’í teachings on economics
> and their implications for the Bahá’í community and the
> wider society. A number of direct and indirect keywords are
> relevant to this subject including: Bahá’í, economics, Bahá’í
> community, wider society, and spirituality. These key words
> are discussed in this section.
> 
> 2.1    Defining economics
> The conventional definition of ‘economics’ has some
> relevance to this enquiry. The term ‘economy’ comes from
> Greek oikonomia. The word denoted ‘household
> management’ or a person skilled in this, hence the early sense
> of the adjective in the late 16th century.1 If economy is ‘the
> arrangement…of a general system of organization,’ 2 then
> economics is the study of the economy. In wider society, the
> household can be compared to a government that has
> responsibility for the management of a nation’s resources for
> the benefit of the entire population; in the same way, a
> household ensures the management of the house and the well-
> being of all members. In several of his Writings, ‘Abdu’l-
> Bahá uses this concept when explaining the economic
> arrangement of society. For example, he said, ‘This
> household is not well managed. This household is not living
> 
> Oxford Dictionary of English. Oxford: Oxford University Press, 2nd ed., 2005,
> p. 552.
> Universal House of Justice. Haifa: Bahá’í World Centre, letter dated 4 June
> 2013.
> Economic and the Bahá’í Faith
> 
> under perfect law.’3 He, then, refers to a need for legislation
> to aid the proper functioning of a household, the whole
> community or a nation, he said, ‘a law must be given to this
> family by means of which all the members of this family will
> enjoy equal well-being and happiness.’4 In this passage, using
> the concept of ‘household,’ ‘Abdu’l-Bahá talks about the role
> of government in establishing legislation to ensure that the
> well-being of the whole nation is create.
> 
> Adam Smith defined economics from a mainly political
> perspective associated with increasing the wealth of a nation.
> He considered labour as an economic man. Considering that
> Smith lived in the period of industrial revolution, the issues
> of production, wealth, labour productivity and competition
> were      pertinent   during    this    period. The Industrial
> Revolution was the transition to new manufacturing
> processes in the period from about 1760 to sometime between
> 1820 and 1840. Adam Smith’s The Wealth of Nations was
> published in 1776. However, the conventional definition of
> economics as ‘household management’ and Adam Smith
> viewing labour as ‘economic man’ may not be an adequate
> expression for the new age with a much more complex world
> economy, which has expanded beyond the world known to
> the ancient Greeks or for the period of industrial
> revolution. Perhaps we ought to look at wider definitions.
> The modern definitions of economics are in relation to the
> efficient use of scarce resources and their effects on each
> other. The three main economic resources, land, labour, and
> capital, are known in economic textbooks as factors of
> 
> ‘Abdu’l-Bahá. Foundation of World Unity, compiled by the National Spiritual
> Assembly of the Bahá’ís of United States, Wilmette IL: Bahá’í Publishing Trust,
> 1979, p. 38.
> ‘Abdu’l-Bahá. Foundation, p. 39.
> Key Words, Definitions and Concepts
> 
> production. 5 These resources are, however, inactive by
> themselves, unless a fourth factor, such as the entrepreneur,
> uses them effectively to produce commodities. It is based on
> an interpretation of the definition of modern economics
> where a relationship between human behaviour and economic
> resources is considered. This view is supported by an earlier
> definition by a leading economics figure in British higher
> education Charles Robbins. As early as 1932, Robbins
> defined economics as ‘The science, which studies human
> behaviour as a relationship between ends and scarce means
> which have alternative uses.’ 6 Leading development
> economist Michael Todaro’s definition of economics is also
> relevant to this discussion. For Todaro, ‘Economics is a
> social science. It is concerned with human beings and the
> social systems by activities to satisfy basic material needs and
> non-material wants.’ 7 Another popular definition of
> economics that can be seen in most economic textbooks and
> has relevance to our discussion in this research is from Alfred
> Marshal. He writes: ‘Economics is the study of mankind in
> the ordinary business of life.’8 The ordinary, normal, usual, or
> everyday business of life for most people should include the
> minimum standard of living as human rights including
> sufficient food, cloths, shelter, health and education.
> However, poverty, inequality, increasing the gap between the
> rich and the poor, child labour, consumerism, wastage of the
> Earth’s precious resources and various types of negative
> externalities are examples of abnormality that affects the life
> of humans and the eco-system.
> 
> Paul Krugman, Maurice Obstfeld and Marc Melitz. International Economics:
> Theory and Policy, 9th ed., London: Pearson Education International, 2012, p. 81.
> Charles Robbins. See: Stephen Ison, Economics, 3rd ed., London: Pearson
> Education Limited, 2000, p. 1.
> Michael Todaro. Economic Development in the Third World, 4th ed., London:
> Longman Publication, 1992, p. 26.
> Alfred Marshal. Principles of Economics, p. 1.
> Economic and the Bahá’í Faith
> 
> These concepts and definitions are convenient for this study
> because they draw attention to the unique feature of human
> beings, human society, and our everyday needs as a complex
> pattern of behaviour towards sustainable production (chapter
> 3), distributive justice (chapter 4) sustainable consumption
> (chapter 5), and Bahá’í globalization (chapter 6). Hence,
> there is relevance between conventional and modern
> definitions of economics and the Bahá’í perspective on the
> role of human behaviour in economics. Economics, in this
> study, is viewed as a social science, but also as an ‘art’. ‘Art’,
> in a sense that in using scarce resources, we need to use our
> creativity, ability, talent, sensitivity and understanding, in a
> way that one enjoys and appreciate the finished product or
> service.
> 
> Furthermore, the modern economic discipline is described in
> terms of ‘microeconomics’ and ‘macroeconomics’.
> Economists have been concerned primarily with the problem
> of making the best use of the world’s scarce productive
> resources at a single point in time. Microeconomics studies
> this problem from the perspective of individual firms and
> consumers. 9 Thus, microeconomics is about variables and
> entities, in small scale that can be controlled by households
> and firms. Economic variables such as price, supply and
> demand exist in relation to other variables such as income
> and employment and they act together within a time factor to
> form a system or a model. The results of all these interactions
> of variables lead to developing phenomena such as surpluses
> and shortages of commodities affecting supply and demand
> and relevant prices. People, households, firms, governments
> 
> Paul Krugman and Maurice Obstfeld. International Economics: Theory and
> Policy, 6th ed., London: Pearson Education International, 2003, p. 323.
> Key Words, Definitions and Concepts
> 
> and even countries can be considered economic variables
> interacting with other variables of the same nature. Adam
> Smith and the classical school of economics support this type
> of economics. Macroeconomics, on the other hand, is about
> how large changes affect the system that the variables make
> up. The rules of economics change; and what may be true of
> microeconomics in small-scale is not necessarily true of
> macroeconomics for large-scale phenomena, such as
> unemployment, economic growth, and export and import.
> John Maynard Keynes is the founder of this type of economic
> discipline, which is known as macroeconomics. An
> alternative economic discipline to support this discussion is
> coined by author Marjorie Kelly, the Director of Special
> Projects with the Democracy Collabourative, and is known as
> the ‘Generative Economy.’ Explaining ‘generative economy,’
> Kelley asks, what kind of economy is consistent with living
> inside a living being? This question is being answered in
> experiments across the globe. Generative economy is about a
> life-style that is sustainable. Hence, generative economy is
> defined as ‘a living economy that is designed to generate the
> conditions for life to thrive an economy with a built-in
> tendency to be socially fair and ecologically sustainable.’10
> 
> This notion concerns the structure of the system within which
> economic variables act, and the way the system itself
> operates. The teachings of the Bahá’í Faith, in this analysis,
> are about ‘generative economics.’ They do not deal with the
> way variables interact economically, for example, how much
> a person should be paid, or the way systems behave, or the
> solution for poverty. This would explain why ‘there are
> practically no technical teachings on economics’ 11 stated in
> 
> Marjorie Kelly. Retrieved: <http://www.marjoriekelly.com>.
> Shoghi Effendi. ‘Letter dated 25 January 1936’, American Bahá’í News, no.
> 103, p. 2.
> Economic and the Bahá’í Faith
> 
> the Bahá’í Writings. However, the Bahá’í teachings suggest
> what is morally possible for individuals and firms, such as
> allowing charging a fair interest rate on loans; and that
> economic systems are immoral if there are extremes of
> wealth and poverty, rather than how an extreme might be
> defined. In the proposed model of economic sustainability
> (chapter 8), micro and macroeconomic variables interact with
> each other in close association with spiritual principles to
> influence the participants of the market in making right
> choices and right decisions.
> 
> 2.1.1 Is there a Bahá’í economic system?
> A system comprises multiple components, including
> concepts, rules, principles, analysis, design, structure,
> purpose, behavior, time-based factor, and implementation.
> The economic system is composed of households, firms,
> government, and trading institutions and their relationships to
> resources, such as land, labour and capital. An economic
> system, in more specific, is a mechanism that deals with
> fundamental economic principles of production, distribution,
> consumption of goods and services, and flow of money in a
> particular society. It addresses the problems of economics
> such as limited resources and unlimited wants, and the
> allocation and scarcity of resources. The purpose of an
> economic system is to improve the well-being of the
> generality of population in a society.
> 
> The term ‘system’ comes from the Latin word systēma means
> ‘whole compounded of several parts or members’, literary
> ‘composition’. Most popular dictionaries define system as a
> set of interacting or interdependent component parts that
> forming a complex whole. Merriam Webster, define it as ‘A
> regularly interacting or interdependent group of items
> forming a unified whole.’ Similarly, Oxford Dictionary
> Key Words, Definitions and Concepts
> 
> define system as ‘A set of things working together as parts of
> a mechanism or an interconnecting network; a complex
> whole.’ Therefore, a system is an orderly grouping of
> interdependent components linked together according to a
> plan to achieve a specific unified objective. Based on these
> definitions and other relevant discussions, we can establish a
> number of characteristics for the formation of a system,
> including:
> I.   System is an organized and orderly set of principles.
> It is much easier to see this feature in a more scientific
> structure with formulas and data collected than in a
> social science structure such as economics. A country
> chooses an economic system based on how they
> respond to the three basic economic questions of
> ‘what to produce?’ or consumption (should we
> produce more food stuff or electronic stuff); ‘how to
> produce?’ or production (should we produce using
> more technology or more labour); and ‘for whom to
> produce?’ or distribution (should we produce more for
> rich people or for more people? In a command
> economy (planned economy, Communist system)
> government makes all the decisions. In a free-market
> economy (capitalist system) the actors or different
> agents of the market including consumers and
> producers makes all the decisions. However, in reality
> all systems are a mixture of command economy and
> market intervention. Therefore, all economies
> worldwide are mixed economies. There are a number
> of guidelines in the Bahá’í Writings in relation to the
> three basic questions mentioned above, but not in an
> organized and orderly manner. This will be the task of
> future experts to study Bahá’í Writings in its totality
> for determining the components of a system that will
> be fair, universal, and flexible.
> Economic and the Bahá’í Faith
> 
> II.   It is a functionally group of interaction and
> interrelated principles, with coordinated method and
> unified plan. It refers to the manner in which each
> component functions with other components of the
> system. Studying the totality of Bahá’í Writings,
> Bahá’í teachings on economics will be coordinated
> and linked together based on a given unified plan.
> There are short term plan and long-term plan for
> applying Bahá’í principles. Bahá’u’lláh, has given us
> the long-term plan such as equality of women and
> men, universal and compulsory education, universal
> peace, and many more that are stated in His Writings
> and requires a much longer time to achieve them. The
> Universal House of Justice provides to the Bahá’í
> community the short-term plans, currently known as
> Five Year Plan.
> 
> III.   It is a set of rules that govern and describes structure
> and behavior. In the current system of free-market
> economy, the assumption is that the market is self-
> regulating and can reach equilibrium automatically.
> But the fact that there are numerous problems in the
> economy, it is an indication that the market is not self-
> regulating and does not reach equilibrium
> automatically, and thus there is a need for government
> intervention. It is still too early to imagine different
> components of the structure of an economic system
> for a global society.
> 
> IV.    A system is described by its purpose and objective. A
> system should have a central objective. The objective
> can be divided into several sub-systems or system-
> model to be achieved on a set time-based factor.
> Key Words, Definitions and Concepts
> 
> Having short-term and long-term plan results in a
> smooth process of achieving the central objective. In
> the Bahá’í Faith, economics is a means and the central
> objective is the prosperity of humankind. Without
> discarding the existing economic systems, models and
> theories, the suggestion is that the exploration of
> Bahá’í teachings on economics would be beneficial to
> all.
> 
> V.     Integration of the components. It refers to the
> universality or holistic approach of the system. It is
> concerned with how a system is tied together. The
> current dominant economic systems do not consider
> the well-being of the generality of the population. For
> example, capitalism favours the rich capitalists, and
> communism favours workers. Where is the place of
> more than half of the world's population, farmers, in
> these systems? In any alternative model of future
> economics, agriculture should play a major role.
> 
> Based on the above discussion, the answer to: is there a
> Bahá’í economic system, would be both yes and no. No, in
> the sense that currently, there is no Bahá’í economic system.
> Shoghi Effendi states: ‘Bahá’u’lláh did not bring a complete
> system of economics to the world.’ 12 He also said: ‘The
> Cause is not an economic system, nor its Founders be
> considered technical economists...The contribution of the
> Faith to this subject is essentially indirect, as it consists of the
> application of spiritual principles to our present-day
> economic system.’ Yes, in a sense that there are guidelines in
> the Bahá’í Writings to help future economists and experts to
> establish the Bahá’í economic system of the future as a part
> 
> Shoghi Effendi, Directives from the Guardian, p. 19.
> Economic and the Bahá’í Faith
> 
> of a new World Order created by Bahá’u’lláh. Shoghi Effendi
> states: ‘The International House of Justice will have, in
> consultation with economic experts, to assist in the
> formulation and evolution of the Bahá’í economic system of
> the future.’13 In the Bahá’í Writings, there are references to
> sustainable production, distributive justice, sustainable
> consumption, and flow of money, as well as elements of
> macro-economic such as government participation in the
> economy and the role of Bahá’í institutions. In addition, an
> economy’s moral and spiritual requirements are emphasised.
> The task of an in-depth study of the components of an
> economic system is given to future Bahá’í economists. The
> study of the Bahá’í sacred scriptures and research carried out
> by Bahá’í scholars indicated that the Founders of this Faith
> did not construct a Bahá’í economic system. As a result,
> throughout this study, the assumption is made that the Bahá’í
> Faith is a religion and not an economic system.
> 
> Nevertheless, the Central Figures of the Bahá’í Faith have
> provided several principles that can be used as guidelines to
> help future economists to develop the components of a just,
> universal and flexible economic system. Therefore, in any
> Bahá’í discourse, researchers are using the phrase ‘Bahá’í
> economics’ with much caution, as it is not yet fully
> developed. Hence, at this time, Bahá’ís must take care not to
> create a separate Bahá’í economic system.
> 
> Currently, the Bahá’í community is evolving toward a Bahá’í
> economic system. Bahá’ís are engaged in setting the spiritual
> foundation of economics of the future. Our economic, as well
> as our spiritual life, need to be in balance. Shoghi Effendi
> states the importance of spiritual reflection, ‘The primary
> 
> Shoghi Effendi, letter dated 10 June 1939.
> Key Words, Definitions and Concepts
> 
> consideration is the spirit that has to permeate our economic
> life, and this will gradually crystallize itself into definite
> institutions and principles that will help to bring about an
> ideal condition foretold by Bahá’u’lláh.’ 14 The view that
> economics is a pure technical science is beginning to change.
> In recent times concerns have been raised dealing with
> climate change, consumer citizenship and about a sustainable
> life style. The Universal House of Justice states, ‘The
> solution, then, to prevailing economic difficulties is to be
> sought as much in the application of spiritual principles as in
> the implementation of scientific methods and approaches.’15
> 
> Another factor to be considered is that currently there is no
> Bahá’í state and the Bahá’í population is small and scattered
> all over the world. Hence, it is too early to envisage how
> Bahá’í economic principles will shape and function at a
> larger scale in the future. The main priority at this time is the
> application of moral and spiritual principles within the Bahá’í
> community and to infuse these into the wider society. Bahá’ís
> all around the world enthusiastically join and work closely
> with any group or organisation that promotes values such as
> trustworthiness, truthfulness, justice, kindness, and service to
> humanity. These core values enlighten any economic system,
> now and in the future.
> 
> System-model: It was stated earlier that a system comprises
> multiple views, including concepts, rules, principles, analysis,
> design, structure, purpose, behavior, time-based factor, and
> implementation. A system-model is required to describe and
> represent all these multiple views. One can make simplified
> representations of the system in order to understand it and to
> 
> Shoghi Effendi, Directives, p. 19.
> Universal House of Justice, letter dated 2 April 2010 to the Bahá’ís of Iran.
> Economic and the Bahá’í Faith
> 
> predict or impact its future behavior. For example, ‘the
> Bahá’í inspired model of economic sustainability’ in chapter
> eight is a conceptual and nonphysical entity developed by the
> author of this work. It is also an open system as it has many
> interfaces with its environment. The Bahá’í model of
> economic sustainability is based on moral incentives and is
> developed as a theoretical and simplified representation of
> the impact of Bahá’í teachings on human conduct in creating
> a more balanced economy. It is vital to note the
> interconnectedness of these groupings.
> 
> Divine economy: The phrase ‘divine economy’16 is stated in
> the Writings of Shoghi Effendi and he associates it with the
> World Order of Bahá’u’lláh. The concept has close
> connotation with spirituality and hence to the current work.
> According to the Universal House of Justice, the concept of
> divine economy is not in reference to a particular economic
> system but it is referred to a general system of organisation.
> ‘It appears that the Guardian [Shoghi Effendi] uses the term
> divine economy not as a reference to a specific system of
> economics, but to something broader and more general.’17 In
> this context, the general system of organisation can be
> referred to as a holistic society that all parts of it are
> interrelated and interconnected, and nothing can be
> understood in isolation but as a part of the whole system. In
> this work spirituality and the divine economy is placed in the
> same grouping because as we will see in other chapters many
> features of divine economy are associated with spirituality.
> 
> For ‘Divine Economy’, see: Shoghi Effendi, The World Order of Bahá’u’lláh,
> Wilmette, IL: Bahá’í Publishing Trust, 2000 [1991], pp. 19-20, p. 22, p. 24, and p.
> 61.
> Universal House of Justice, letter dated 4 June 2013.
> Key Words, Definitions and Concepts
> 
> 2.1.2 Bahá’í community
> According to statistics provided by the Bahá’í International
> Community, there are more than 5 million Bahá’ís in the
> world. The Bahá’í Faith is established in virtually every
> country and in many dependent territories and overseas
> departments of countries. Bahá’ís reside in well over 100,000
> localities. About 2,100 indigenous tribes, races, and ethnic
> groups are represented in the Bahá’í community…Of the
> several thousand Bahá’í efforts in social and economic
> development, more than 900 are large-scale, sustained
> projects, including more than 600 schools and over 70
> development agencies…The Bahá’í International Community
> has been registered with the United Nations as a
> nongovernmental organization since 1948. It currently has
> consultative status with the United Nations Economic and
> Social council (ECOSOC) and the United Nations Children's
> Fund (UNICEF), as well as accreditation with the United
> Nations Environmental Program (UNEP) and the United
> Nations Department of Public Information (DPI). The Baha’i
> International Community collaborates with the UN and its
> specialized agencies, as well as member states, inter- and
> non-governmental organizations, academia, and practitioners.
> It has Representative Offices in Addis Ababa, Brussels,
> Geneva, Jakarta, and New York…Bahá’í writings and other
> literature have been translated into more than 800 languages.
> Each year, around one million people visit the Bahá’í Shrine,
> terraces, and gardens on Mount Carmel in Haifa, Israel.18
> 
> Such a diverse and mixture of people makes the worldwide
> Bahá’í community a diverse group. The life of Bahá’ís and
> the Bahá’í community is not isolating itself from rest of the
> wider society. The community as a part of its commitment of
> 
> See: <https://news.bahai.org/media-information/statistics/>
> Economic and the Bahá’í Faith
> 
> service to humanity, sponsors a large number of small-scale,
> grassroots-based social and economic development projects,
> which cater for anyone in need, not only Bahá’ís. The various
> activities of the Bahá’í community and its involvement in
> socio-economic undertakings are discussed throughout this
> book.
> 
> One of the distinguishing features of the Bahá’í Faith is the
> presence of a set of institutions to be in charge of the affairs
> of the Bahá’í community at local, national and international
> level. Hence, a system of priesthood is replaced with a
> system of administrative order. 19 Consequently, after the
> passing of Shoghi Effendi, the Guardian of this Faith, the
> affairs of the Bahá’í community have been managed through
> an administrative order. The system of Bahá’í administration
> is regarded by Bahá’ís as divinely ordained. It is
> distinguished from other religious or secular forms of
> government, as Shoghi Effendi points out:
> Bahá’u’lláh has Himself revealed its principles,
> established its institutions, appointed the person to
> interpret His Word who is ‘Abdu’l-Bahá, and
> conferred the necessary authority on the body
> designed to supplement and apply His legislative
> ordinances, the Universal House of Justice.20
> 
> With electoral and consultative principles, the Bahá’í
> administrative order operates democratically at the local,
> national, and international levels. The election of Bahá’í
> Local Spiritual Assemblies takes place each year on 21st
> April. The Bahá’í election is theoretically and practically
> different from the electoral processes currently practised, in
> 
> For an in-depth study of Bahá’í administration see: Hatcher and Martin, The
> Bahá’í Faith, pp. 143-153; John Ferraby, All Things Made New, pp. 263-266;
> Peter Smith, The Bahá’í Religion, pp. 53-59; Wendi Momen and Moojan Momen,
> Understanding the Bahá’í Faith, pp. 115-120.
> Shoghi Effendi. World Order of Bahá’u’lláh, p. 145.
> Key Words, Definitions and Concepts
> 
> that there is an emphasis on spiritual qualities and service
> orientation, rather than material gain or power. Bahá’ís are
> free to vote for any adult Bahá’í21 who they consider as loyal
> and Faithful. Therefore, there is no nomination or canvassing.
> Shoghi Effendi states:
> The strength and progress of the Bahá’í community
> depends upon the election of pure, Faithful and active
> souls…Canvassing is deprecated...Bahá’í elections of
> the community are…sanctified from all traces of
> canvassing and plotting that characterize the activities
> of the perfidious.22
> 
> The Universal House of Justice is a nine-member body
> elected at five-year intervals by the entire membership of the
> National Spiritual Assemblies. The Universal House of
> Justice consults on issues pertaining to the welfare of the
> whole of humanity as well as the affairs of the Bahá’í
> communities and guides the Bahá’í world within the
> framework of the teachings of Bahá’u’lláh. It was first
> instituted in 1963, and its seat is in Haifa – Israel (Bahá’í
> World Centre). The Universal House of Justice appointed
> ‘Bahá’í International Community’ as representative of the
> Bahá’í community with International agencies.
> 
> A distinction is made between Bahá’í community, Bahá’í
> civilisation, and Bahá’í commonwealth. The Bahá’í
> community is one that is comprised of registered adult
> Bahá’ís and children. The Bahá’í civilisation refers to a
> future society where Bahá’í principles are applied, such as
> gender equality, universal and compulsory education, and the
> practice of Bahá’í consultative method of decision-making.
> The Bahá’í commonwealth will be the final stage of the
> 
> The age of maturity is 15 for both girls and boys. But, the age of an adult Bahá’í
> for the purpose of Bahá’í election is 21.
> Shoghi Effendi. Quoted in Lights of Guidance, p. 10.
> Economic and the Bahá’í Faith
> 
> Administrative Order leading to the promised Golden Age.
> 
> 2.1.3 Wider society
> The statement of the founder of the Bahá’í Faith which states,
> ‘The earth is but one country and mankind its citizens’23 is
> becoming increasingly clear that the world has reduced to a
> global village24; and in an ideal sense the village represents
> the entire humanity and the Bahá’í community playing its
> parts to promote its advancement. However, to consider the
> whole globe as one home for the entire human family, it
> cannot be achieved in a spiritual vacuum.
> 
> Bahá’ís are instructed to adopt a world-embracing vision.
> Statements such as ‘Be intent on the betterment of the
> world.’25 and ‘The well-being of nations’26 and ‘We desire but
> the good of the world and the happiness of the nations,’ 27
> clearly indicate that the prophet-founder of the Bahá’í Faith is
> concerned about the well-being of the entire society. Hence,
> in any discussion on socio-politico-economic issues, the
> Bahá’í writers and researchers refer to the global features of
> Bahá’í teachings.
> 
> Currently the Bahá’í community associates with the wider
> society in a number of ways. The Bahá’í International
> 
> Bahá’u’lláh. Gleanings from the Writings of Bahá’u’lláh, p. 250.
> Marshall McLuhan came up with the phrase ‘the global village’ as a way to
> describe the effect of radio in the 1920s in bringing us in faster and more intimate
> contact with each other that ever before in human experience. For the full paper
> on the ‘global village’ see Eric McLuhan, an online information resource,
> retrieved at: <http://projects.chass.utoronto.ca/mcluhan-
> studies/v1_iss2/1_2art2.htm>.
> Bahá’u’lláh. Cited in Ebenezer Esslemont, Bahá’u’lláh and the New Era,
> Wilmette IL: Bahá’í Publishing Trust, 1990, p. 133.
> Ibid. Tablets of Bahá’u’lláh: Revealed after the Kitáb-i-Aqdas, translated by
> Habib Taherzadeh, Haifa: Bahá’í World Centre Publications, 1978, p. 174.
> Ibid. Cited in Shoghi Effendi, Advent of Divine Justice, New Delhi: Bahá’í
> Publishing Trust, 1970, p. 31.
> Key Words, Definitions and Concepts
> 
> Community (BIC) is an independent organization which is
> recognised by the UN, and with whom the UN co-operates.
> BIC is a non-governmental organisation registered with the
> UN as an NGO in 1948. BIC affiliates in over 180 countries
> and territories, representing the members of the Bahá’í Faith
> worldwide. One of the aims of the BIC is to seek to promote
> and apply principles derived from the teachings of the Bahá’í
> Faith that contribute to the resolution of the current day
> challenges facing humanity. To achieve its purpose, the BIC
> interacts with the UN and its specialised agencies,
> governments and other NGOs, and has presented papers and
> statements at world conferences and meetings of UN bodies
> and agencies for a number of years. These include
> contributions on such diverse subjects as food, population,
> women, international trade, education, health, and the
> peaceful utilisation of scarce resources and the environment.
> In May 1970, BIC gained consultative status with the United
> Nations Economic and Social Council (ECOSOC); in 1976 at
> the United Nations Children’s Funds (UNICEF), and in 1989,
> developed a working relationship at the World Health
> Organization (WHO).28
> 
> 2.1.4 Analogy of human family
> An important analogy that will be used in a number of topics
> is the concept of human family. The phrase ‘human family’
> in the Bahá’í Writings is used to portray the entire humanity.
> It is stated that ‘The world of humanity has been described as
> a unit, as one family.’29 Also, it is stated ‘we are all inhabiting
> one globe of earth. In reality, we are one family and each one
> of us is a member of this family. We must all be in the
> greatest happiness and comfort.’30 Hence, just as discipline,
> 
> See: <https://www.bic.org/about-us>
> ‘Abdu’l-Bahá. Promulgation, p. 36.
> Ibid. Foundation, p. 41.
> Economic and the Bahá’í Faith
> 
> organization, cooperation, and association are necessary for
> the establishment of family, so should there be similar
> discipline and procedures for the establishment and
> advancement of society.
> 
> But what is a family model? The family model is a small unit.
> Partnership is one of the features of family model. This is an
> approach based upon an explicit model of caring and helping
> process. It demonstrates how a partnership, enable parents
> and children to overcome their difficulties, build strengths
> and resilience and fulfill their goals more effectively.
> 
> Thus, the analogy of family is useful in a number of
> discussions in this book including the view on globalization,
> in clarifying the concept of economic sustainability, and in
> discussing human, capital and financial interdependency. The
> Bahá’í Writings affirm that ‘The family unit offers an ideal
> setting within which can be shaped those moral attributes that
> contribute to an appropriate view of material wealth and its
> utilization.’31 According to Loudon and Bitta ‘The concept of
> family or household life cycle has proven very valuable for
> the marketers, especially for segmentation activities.’32 This
> analogy is useful in discussing distributive justice.
> 
> The use of the analogy of the family in economic activities is
> helpful, given the similarities between the features and
> structure of a family and those of economics. For example,
> partnership is one of the features of family. This is an
> approach based on an explicit concept of a caring and helping
> process. It demonstrates how a partnership enables parents
> 
> Universal House of Justice. ‘Statement addressed to the Bahá’ís of Iran,’ 2
> April 2010, The UK Bahá’í News, May 2010.
> David Loudon, and Albert Della Bitta. Consumer Behaviour: Concepts and
> Applications, 4th ed., London: MaGraw-Hill International Edition, 1993, p. 223.
> Key Words, Definitions and Concepts
> 
> and children to overcome their difficulties, build strengths
> and resilience and fulfill their goals more effectively. The
> success of the family as a socio-economic unit would be
> based on a bond of love and unity and concern for the other;
> so, should be the success of the economic operations in the
> market. The integrity of the family is based on mutual love,
> trust, service to others and sacrifices for one another. These
> qualities are essential for the family to succeed, otherwise the
> family would become dysfunctional and chaotic and will
> break apart. A family that applies the principles of love, trust,
> service and sacrifice can cater for the varied needs of each
> individual in the family, even with limited resources. In the
> family unit, the idea of division of labour applies too, where
> each member has a different but complementary function.
> Thus, the analogy of family is the pivot of all economic re-
> ciprocal relationships leading to activities of production, dis-
> tribution and consumption, be it between the members of the
> same family, between families or between communities,
> local, national and international. This is where we see a
> logical connection between moral principles and economics.
> 
> There are however challenges when discussing the analogy of
> family. According to Wesley Burr, Loren Marks and Randal
> Day:
> Most people do not need to be encouraged to be
> interested in their own welfare. This seems to come
> rather naturally to most humans, whereas being
> concerned about others does not seem to come as
> naturally. The idea that the welfare of others is
> important is acquired only when people learn it as a
> part of their ideology or philosophy of life, and people
> need to be relatively mature to grasp this idea. 33
> 
> Wesley Burr, Loren Marks and Randal Day. Sacred Matters: Religion and
> Spirituality in Families, London: Taylor and Francis group, 2012, p. 112.
> Economic and the Bahá’í Faith
> 
> Most people are altruistic by nature and have a certain level
> of empathy and understanding to help others. To form a
> family, for example, couples enter into an agreement or
> covenant with each other whereby they concentrate on
> helping and supporting each other and their children. The
> same applies to the human family whereby we use all our
> resources to produce goods and services that benefit all its
> members through a justified exchange mechanism, which is
> based on altruistic nature. However, the features and
> functioning of a modern family are complex and it may not
> be so easy to use it as an analogy for contemporary economic
> issues. The application of the analogy would be more
> practical in smaller communities and in small-scale
> operations.
> 
> However, the structure of a modern family is much more
> complex with variety of functions. Apart from financial
> capital as a function of a unit of family, Charles Collier
> identifies three other functions:
> There is more to family wealth than the financial
> dimension. Human capital refers to who individual
> family members are, and what they are called to do;
> intellectual capital refers to how family members
> learn and govern themselves; social capital denotes
> how family members engage with society at large; and
> financial capital stands for the property of the
> family.34
> 
> Therefore, the key to the financial success of the family
> depends on how well the other three functions are performed.
> From a Bahá’í perspective the four functions of a family unit
> are all influenced by one’s moral and spiritual compass.
> Consequently, in this study, spiritual capital is added to the
> above principles suggested by Charles Collier. The idea is
> 
> Charles Collier. Wealth in Families, Harvard University Press, 2006, p. 34.
> Key Words, Definitions and Concepts
> 
> that if the moral and spiritual principles are effectively
> working within the unit of the family, then those values
> become a norm, a cultural phenomenon, and a way of life in
> the entire community.
> 
> Within the Bahá’í community, much importance is placed on
> strengthening the concept of family and its relationship with
> those outside of the family unit. Moral education and better
> understanding of the significance of marriage and family life
> helps pave the way. Morality is an essential part of the
> Bahá’í culture, which defines the relationship between an
> individual and the whole society. Bahá’í parents and the
> Bahá’í community endeavour to teach moral values to
> children. As a result, those values become an intrinsic part of
> the individual and the life of the society. Thus, it becomes
> natural for a Bahá’í to respect and care for fellow human
> beings and the creation of a new generation. The Bahá’í
> community is in a dynamic state of transformation with a
> culture of learning. This approach promotes the positive
> transformation of individuals and families into a new
> generation. However, it depends how this community adjust
> itself with the challenges of the larger society they are living
> in it.
> 
> 2.1.5 The concept of spirituality
> The word ‘spiritual’ or ‘spirituality’ constitutes an important
> and inseparable part of all Faiths including the Bahá’í Faith
> and hence it has much relevance to Bahá’í discourse. In any
> discussion about Bahá’í teachings spirituality plays a central
> role. Nevertheless, the word spiritual has been associated
> with a multitude of meanings, religious and non-religious.
> There is an agreement among all of the major religious
> systems that there is a non-observable spiritual reality above
> and beyond material reality. Bahá’í scholar, philosopher and
> Economic and the Bahá’í Faith
> 
> mathematician, William Hatcher (1935-2005) maintains the
> view that ‘Spiritual dimension of existence is more
> fundamental and more real than the material, and that the
> basic task of human existence lies in learning how to relate
> properly to spiritual reality.’35 Although the terms spirituality
> and religion are commonly used interchangeably, it is
> important to note that the term spirituality refers to the higher
> nature of human beings, which Bahá’ís believe is innate in
> human being, however, it need to be developed.
> 
> There is no precise agreement between theologians and social
> scientists, including economists, about the precise meaning of
> topics that have some relevance to the notion of spirituality,
> such as justice and trustworthiness. Some economists, such as
> Karl Marx, keep their distance from phrases such as ‘divine
> economy,’ ‘spiritual enterprise,’ ‘eco-justice,’ and ‘spiritual
> economics.’ Bahá’í scholar and academic economist Farhad
> Rassekh has made a distinction between ‘anti-religion
> thinkers like Karl Marx and those who do not see a role for
> religion in economics.’ 36 Rassekh argues that there is a
> difference between religion and spirituality:
> It is quite common for a lot of people to consider
> themselves spiritual but have no religious affiliation
> and actually see religion as a negative force. Thus,
> some economists rather keep religion out of their
> work even if they believe in God. As a result, as far as
> their research and Writings are concerned, they can be
> safely placed in the category of secular thinkers.37
> 
> A number of researchers investigating spirituality have found
> that spirituality is broader than the concept of religion.
> Educational psychologist, Douglas McDonald’s investigation
> 
> William Hatcher. Retrieved: <http://william.hatcher.org/license>.
> Farhad Rassekh. Electronic correspondence, 10 May 2013.
> Ibid.
> Key Words, Definitions and Concepts
> 
> of existing literatures has found that spirituality can be
> viewed as a separate and identifiable concept that is broader
> than the notion of religion. He stated that ‘Spirituality is a
> complex yet identifiable construct that includes but extends
> beyond religion.’38 Another educational specialist, Kirsi Tirri
> maintains that ‘spirituality must be seen as a wider concept
> than religion.’ 39 Theologian and senior researcher in
> spirituality David Hay’s view is that ‘Surely the
> unquestionable assumption that spirituality refers only to
> religion cannot be right.’ 40 Hay refers to a new way of
> thinking about spirituality that ‘will help us to get beyond the
> religious/secular or believer/sceptic split.’ 41 Humanistic
> psychologist, Abraham Maslow suggests that it is useful to
> differentiate the subject of ‘spirituality’ from ‘conventional
> and organised religions’ 42 Theologian, Joseph Priestley, has
> identified six factors that characterise spirituality and
> maintains that spirituality is: ‘broader than religion’,
> ‘dynamic’, ‘being and becoming’, ‘other worldly’,
> ‘communal’, and ‘holistic’ in nature. 43 Brendan Hyde
> proposes that ‘spiritualty existed long before the evolution of
> religion.’ 44 Social psychologist, Diarmuid O’Murchu
> illustrates that historically spiritual experiences can be traced
> as far back as 70,000 years ago. In contrast, he argues that
> 
> Douglas McDonald. Spirituality: Description, Measurment, and Relation to the
> Five Factor Model of Personality, 2000, page 192.
> Kirsi Tirri. Cross-cultural study of preadolescents’ moral, religious and spiritual
> questions. British Journal of Religious Education, 2005, 27(3), pp. 207-214,
> David Hay. Something There: The Biology of The Human Spirit, London:
> Darton - Longman, 2006, p. 28.
> Ibid. p. 34.
> Ibid.
> Joseph Priestley. Spirituality, Curriculum and Education. International Journal
> of Children’s Education, 1997, pp. 29-31.
> Brendan Hyde. The plausibility of spiritual intelligence: spiritual experience,
> problem solving and neural sites. International Journal of Children’s Spirituality,
> 2004, 9(1), pp.30-40.
> Economic and the Bahá’í Faith
> 
> most organised religions have only existed for 4500 years.45
> O’Murchu further claims that ‘humans have been exploring
> spiritual meaning from time immemorial, while formal
> religion is a very recent visitor of planet earth.’46 Similarly,
> experts in education and spirituality, Carol Johnson and Chris
> Boyatzis argue that ‘human spiritual activity first appeared in
> human historical record with evidence of ritualised burial
> practices 40,000 years ago.’47 Researchers in spirituality and
> social scientists, Donald Ratcliffe and Rebecca Nye also
> agree that ‘spiritual experiences…exist among all ethnic and
> cultural groups…throughout all of human history.’48 Political
> scientists, Nancy Bancroft insists that spirituality does not
> need to become affiliated to a religion. She offers, for
> example, Marxist version of spirituality, constructing it on
> the basis of Marx’s term ‘species being’ which refers to the
> deepest centre or spirit of humankind as a collective.
> Referring to ‘species being’ she writes:
> The term asserts that there is no division between
> individual and society: human means precisely
> social…we complete our individual and species
> character only by social interaction over time…
> species being in its full sense cannot obtain until we
> have eliminated class and ended every kind of social
> division.49
> 
> These various views of researchers suggest that spirituality
> and religion are separate yet related concepts. The Bahá’í
> 
> O’Murchu, Quantum Theology: Spiritual Implications of the New Physics.
> (ED.), An Introduction to the Study of Education, London: David Fulton
> Publishers, 2004, pp12-13.
> Ibid.
> Carol Johnson, Chris Boyatzis. Cognitive – Cultural Foundation of Spiritual
> Development. The Handbook of Spiritual Development in Childhood and
> Adolescence. California: Sage Publication Inc. 2006, pp. 211-223, at p. 212.
> Donald Ratcliffe, & Rebecca Nye. Childhood Spirituality: Strengthening the
> Research Foundation. The Handbook of Spiritual Development in Childhood and
> Adolescence, pp. 480-481.
> Nancy Bancroft. In David Hay, Something There, P. 29.
> Key Words, Definitions and Concepts
> 
> understanding is that religion is the source of spirituality. The
> Bahá’í view is that religion can play an important role in
> changing human attitudes and behaviour towards the life.
> Religion, the Bahá'í scriptures states, ‘is the source of
> illumination, the cause of development and the animating
> impulse of all human advancement.’50 and ‘has been the basis
> of all civilisation and progress in the history of mankind.’51
> 
> Bahá’í and non-Bahá’í scholars agree with some aspects of
> defining spirituality and have attempted to reconcile the
> opinion differences of theologians and social scientists and
> secular thinkers in understanding the concept of spirituality.
> Hatcher, for example, defines spirituality as: ‘The process of
> the full, adequate, proper, and harmonious development of
> one’s…capacities.’ 52 David Hay argues that ‘whilst pinning
> spirituality down to an agreed definition seemed impossible,
> social scientists are able to recognise it when they come face
> to face with it as a unifying factor.’53 Both Hay and Hatcher
> are referring to the harmonious function and the higher nature
> of human being, which social scientists become aware of
> when they face difficulties. The Bahá’í view is that all
> humans are endowed with a higher nature but it needs to be
> nurtured and developed. For example, ‘Abdu’l-Bahá refers to
> the ‘higher nature of human being [as] all-unifying agency.’54
> It is this ‘all-unifying’ function of spirituality that helps to
> resolve socio-politico-economic problems when we come
> face to face with them. The belief in the ‘higher nature of
> human being’ inspires individuals to act justly towards
> 
> ‘Abdu’l-Bahá, Promulgation, p.361.
> Ibid.
> William Hatcher. ‘The Concept of Spirituality,’ Bahá’í World Journal, vol. 18,
> 1986, 1979-1983, p. 935.
> Ibid. p. 28.
> ‘Abdu’l-Bahá. Tablet to August Forel: For the Good of Mankind, John Paul
> Vader (ed.), Oxford: George Ronald, 1984, p. 73.
> Economic and the Bahá’í Faith
> 
> others. This can have great application in economics in areas
> such as wealth redistribution, poverty reduction, taking care
> of the precious resources, and issues related to the
> environment. The belief in the ‘higher nature of human
> being’ has also close correlation with the purpose of life. The
> purpose of life is not simply satisfaction of one’s own needs
> and enjoyment of material pleasures, but also involves
> service to one’s community and the wider society.
> 
> In order to reconcile the viewpoints of theologians, social
> scientists and secular thinkers, and having been inspired by
> the Bahá’í Writings, I attempted to develop a working
> definition of ‘spirituality’ for use in this book. Although there
> is so much diversity of opinions about the concept of
> spirituality, making a definition is a difficult task, there are
> also a number of commonalities in this vast body of
> scholarship that support the creation of a definition to satisfy
> different groups. This definition not only includes the
> material side of life but also the higher nature of human
> beings represented by qualities such as justice,
> trustworthiness, compassion and honesty. Thus, the following
> definition of the author of this work attempts to resolve
> conflicts and divisions, and is concerned with the ultimate
> purpose of life: Spirituality is defined as the all-unifying
> agency for developing and interconnecting our life with the
> material world, with other people, with our natural
> environment, and with the future generation, beyond our
> human limitations. This working definition of spirituality will
> be used throughout this work. This definition is supported by
> a number of elements suggested by other writers. For
> example, it agrees with David Hay’s interpretation of
> spirituality as a unifying factor. Hence, recognising the
> harmonious function of spirituality, social scientists become
> aware of it when they attempt at resolving conflicts and
> Key Words, Definitions and Concepts
> 
> divisions. A number of researchers have described spirituality
> as ‘relational’ in nature. Transcendence may be characterised
> as one’s relationship with forces outside of self; and hence
> one can discover meaning, purpose and connections with
> other people, nature, and the future generation. The
> application of the concepts of spirituality as ‘unifying’ and
> ‘relational’ factors is applied in the Bahá’í inspired model of
> economic sustainability developed by the author of this work
> (see chapter 8).
> 
> Spirituality, based on suggested working definition is a
> process and requires a person to work towards acquiring it.
> Spiritual development and acquiring spiritual qualities by
> individuals require a life of learning and action and focuses
> on human behaviours. Individuals, then, does actually
> highlight that collectively, they tend to be greater contributors
> to the whole society. The interpretation and understanding of
> spirituality as a relational concept helping Bahá’ís and the
> Bahá’í community in appreciating the principle of ‘work’
> (see chapter 3) and for undertaking social and economic
> development programs in rural areas of developing countries
> (see chapter 7). A Bahá’í, for example, develops spiritually
> through community service, by considering work as worship,
> doing humanitarian activities, and effectively trying one’s
> utmost to be a productive member of society both socially
> and economically. Spirituality is, therefore, concerned with
> some important objective of the life, which requires a
> discussion on the process of how to attain it, otherwise its
> worth and application would be challenged. Based on the
> working definition and its features of unifying and relational,
> then alternative interpretation of spirituality is possible for
> establishing social justice and satisfying social scientists.
> 
> Economic and the Bahá’í Faith
> 
> Hence, terms such as ‘ecosystem’ 55 and ‘ecojustice’ 56 and
> ‘eco-wellbeing’ 57 are suggested as a method of achieving
> socio-politico-economic objectives.
> 
> The suggested definition also helps the process of social
> transformation from individual core values to affect the wider
> society. The acquisition of spiritual qualities and moral
> behaviour is what the Bahá’í Faith has in common with all
> other religions. While this is true, Farzam Arbab has argued
> that in the Bahá’í Faith the goal of religious practice is shifted
> from individual salvation to the collective progress of the
> entire human race, and this is reflected in the Bahá’í
> teachings. The emphasis is on the qualities that must be
> acquired by each Bahá’í. Arbab then discusses a number of
> individual core values that affecting the wider society. For
> example, while charity, so essential to Christian theology is
> still highly praised, justice is given a far more central place.
> In the same way, while tolerance is recommended, those
> attitudes that lead to unity and human solidarity are more
> appreciated. Some other values that affect the wider society
> and are discussed by Arbab include:
> Love includes the abolition of all social prejudices and
> the realisation of the beauty of diversity in the human
> race. Detachment from the world is not taught in a
> way that leads to idleness and to the acceptance of
> oppression; it is acquired to free us from our own
> material interests in order to dictate ourselves to the
> well-being of others. To this expansion of the
> meaning of almost all qualities is also added a
> constant endeavour to acquire social skills, to
> 
> The term ‘ecosystem’ was first used in 1935 in a publication by British
> ecologist Arthur Tansley.
> The term suggested as early as 1970. It is defined as the condition or principle
> of being just or equitable with respect to ecological sustainability and protection
> of the environment, as well as social and economic issues.
> Also, see: < https://www.lexico.com/definition/eco-justice>
> This term is suggested by the author of this work.
> Key Words, Definitions and Concepts
> 
> participate in meetings of consultation, to work in
> groups, to express opinions with fairness and clarity,
> to understand the points of view of others, to reach
> and carry out collective decisions. Thus, the path of
> spiritualisation should not be confused with one that
> defines goodness passively and produce a human
> being whose greatest virtue is not to harm anyone; it is
> a path to create social activities and agents of
> change.58
> 
> Thus, spirituality, based on the suggested definition is a
> process and requires a life of learning and action for a person
> to become a productive member of society. At individual
> level, humans are capable of demonstrating core values.
> According to the Bahá’í view, humans are not only distinct
> from the rest of creation, but at its apex, distinct and
> distinguished from all else, as stated in the Genesis 1,27:
> ‘God hath created all humankind in his own image, and after
> his own likeness.’59 Created in the image and likeness of God
> means that whereas all other created things reflect one or
> more of the signs or qualities of God, the human being is
> empowered and given the capability, opportunity, facility and
> guidance to reflect all the qualities of God. Many of those
> attributes that befit the dignity of God are referred to in the
> Bahá’í Writings, including forbearance, compassion, mercy,
> and loving-kindness towards all the peoples of the world. Re-
> flecting upon the attributes of God means that in our daily
> lives, we can demonstrate and promote praiseworthy acts,
> which are the force behind all advancement and progress in a
> global society.
> 
> Farzam Arbab. ‘The Process of Social Transformation,’ Journal of Baha’i
> Studies Review, pp. 9-20, at p 11, 1987.
> Bahá’u’lláh, quoted in Lights of Guidance, compiled by Helen Hornby, New
> Delhi: Bahá’í Publishing Trust, 1988, p. 612.
> Economic and the Bahá’í Faith
> 
> 2.2      A brief account of economic condition of Iran at
> the time of Bahá’u’lláh
> The founder of the Bahá’í Faith, Mirza Ḥusayn-‘Alí-i-Núrí
> known as Bahá’u’lláh, meaning the ‘Glory of God’ 60 is
> regarded by Bahá’ís as the most recent in the line of
> messengers of God. The word Bahá'í is derived from Arabic,
> it is the name of the religion and refers to followers of
> Bahá’u’lláh. Bahá’u’lláh was born in Persia (Iran) on
> November 12, 1817. He was the son Mirza Buzurg, ‘a
> distinguished nobleman who held a high-ranking position in
> the court of the Persian King.’61 Therefore, Bahá’u’lláh was
> grew up in an affluent and comfortable household and was
> expected to take on the responsibilities of His father as a
> minister after he passed away. This position He declined.
> Along with His family and many of His followers He was
> repeatedly banished within the Ottoman Empire, until finally
> He was sent to the prison city of Acre where he remained
> until His passing on 29 May 1892. He is buried in Bahji in
> Acre and His shrine is considered the most sacred place of
> pilgrimage for Bahá’ís around the world.
> 
> The economic structure of Iran during the Qajar period
> (1785-1925), when Bahá’u’lláh declared His mission was in
> widespread deterioration. The socio-economic condition of
> Iran during this period illustrated the key features of a failing
> economy and was disintegrated under the stress of political
> anarchy. Several decades of external invasions, internal strife,
> and endemic lawlessness had brought widespread decay and
> decline to this country. According to historian Charles Issawi
> in terms of the basic economic structure ‘Persia depicted the
> 
> For an in-depth study of the title Bahá’u’lláh see: Stephen Lambden, ‘The Word
> Bahá: Quintessence of the Greatest Name’, Association for Bahá’í Studies
> English - Speaking Europe, Bahá’í Studies Review, 1993, 3:1.
> Also, see Ruhi book 4.
> Key Words, Definitions and Concepts
> 
> key features of a backward economy.’ 62 Also, historian
> Ervand Abrahamian highlighted three sets of issues as factors
> that contributed to the economic backwardness and disruption
> of economic life of people during Qajar period:
> First the absence of an administrative elite or tradition
> that could help oversee the process of change and
> development; second ‘the strains that were placed on
> the country’s irrigation system when there occurred a
> reduction in the cultivating population of certain
> areas; and finally, the under realization of the
> agricultural potential that emanated from the survival
> of pastoral nomadism over large parts of the country.63
> 
> It was during the early part of the 19th century that
> ‘commercial activity and relative economic prosperity
> returned to Iran.’64
> 
> Abrahamian was the first to examine the appalling social and
> economic condition of Iran during Qajár period. For example,
> in regard to the balance of trade, Abrahamian cites some
> interesting evidence for the period 1830-1880. The figures he
> provides demonstrate a large deficit in Iran. In the analysis of
> socio-economic condition of Iran during the period 1800-
> 1850, Abrahamian writes:
> Such massive and continuing deficits meant, in
> practical terms, a considerable drain of gold and silver
> from the country…Progressive debasement of the
> coinage and other factors led to an inflation rate of
> between 70 and 150 percent in the period from 1843
> to 1861, with some important commodities such as
> wheat and barley tripling in price…Apart from the
> purely economic consequences of the trade with
> Europe, there was also the social disruption caused by
> 
> Charles Issawi. An Economic History of the Middle East and North Africa,
> London, 1982, p. 71.
> Ervand Abrahamian. ‘Oriental Despotism: The Case of Qajar Iran,’ The
> International Journal of Middle East Studies, vol. 5, no. 1, 1974, pp. 3-31, at p. 3.
> Ervand Abrahamian. The International Journal of Middle East Studies, p. 5.
> Economic and the Bahá’í Faith
> 
> the import of European manufactured goods leading
> to the decline and even death of many traditional local
> industries.65
> 
> Consequently, Iran was virtually bankrupt and its central
> government was weak. The acute socio-economic-political
> condition of Iran and the rest of the world during the period
> of Qajar can be perceived from the Bahá’í Writings.
> Bahá’u’lláh states, ‘The winds of despair are, alas, blowing
> from every direction, and the strife that divideth and afflicteth
> the human race is daily increasing.’ 66 ‘Abdu’l-Bahá said,
> ‘Today no state in the world is in a condition of peace or
> tranquillity, for security and trust have vanished from among
> the people. Both the governed and the governors are alike in
> danger.’67 Shoghi Effendi also describes the condition of the
> world as ‘spiritually destitute, morally bankrupt, politically
> disrupted, socially convulsed, economically paralyzed.’ 68
> Bahá’u’lláh, has explored the subject of civilisation in
> reference to the West (Europe and North America). For
> example, He has praised the West in a number of areas such
> as democracy and progress in the scientific fields and has
> criticised it in areas such as manufacturing of armaments,
> consumerism and decline in morality.69
> 
> Moojan Momen. ‘The Social Basis of the Bábi Upheavals in Iran (1848-53): A
> Preliminary Analysis,’ International Journal of Middle East Study, no. 15, 1983,
> pp. 157-183, at 159.
> Bahá’u’lláh. Tablets of Bahá’u’lláh Revealed after the Kitáb-i-Aqdas, translated
> by Habib Taherzadeh, Haifa: Bahá’í World Centre Publications, 1978., p. 171.
> ‘Abdu’l-Bahá. Selections from the Writings of ‘Abdu’l-Bahá, compiled by
> Research Department of the Universal House of Justice, translated by a committee
> at the Bahá’í World Centre and Marzieh Gail, Haifa: Bahá’í World Centre
> Publications, 1987, p. 293.
> Shoghi Effendi. Promised Day is Come, Wilmette IL: Bahá’í Publishing Trust,
> 1980, p. 16.
> Shapoor Rassekh. Dunya Niyazmand-I Yik Tamaddun-I Jahani Ast (Author’s
> own translation from Persian: The world needs a global civilisation). Madrid:
> Foundation Nehal, 2010, p. 169.
> Key Words, Definitions and Concepts
> 
> Chapter 3: Sustainable Production
> 
> O people of Bahá! It is incumbent upon each one
> of you to engage in some occupation - such as a
> craft, a trade or the like. We have exalted your
> engagement in such work to the rank of worship
> of the one true God.1    Bahá’u’lláh
> 
> 3.1     Introduction
> Engagement in ‘Work’ is a fundamental part of human life
> and is the subject of comment in the academy of economics,
> as well as an important Bahá’í teaching and greatly
> emphasised in the Bahá’í literatures. For a Bahá’í, ‘work’
> done in a spirit of service is considered as worship. The
> Bahá’í Writings recognise the essential need for cooperation
> and interdependence between human beings and engaging in
> some kind of work is a means for achieving it. One of the key
> features of Bahá’í teachings on economics is the keen interest
> shown to one’s productive contribution to society in a
> sustainable manner. The concept of Bahá’í work ethics
> includes      obtaining      social   skills     to     become
> reliable and resourceful in the work setting. The purpose of
> this chapter is to explore selected Bahá’í teachings in relation
> to work ethics and how they support and influence increasing
> the supply of the workforce in the labour market. Hence, this
> chapter addresses the question of how the principles of
> 
> Bahá’u’lláh. The Kitáb-i-Aqdas, verse 33. (In The Kitáb-i-Aqdas, the term
> ‘verse’ is referred to the Writings of Bahá’u’lláh only, and the term ‘note’ is
> referred to clarification of certain verses which could be from other sources such
> as from the Writings of ‘Abdu’l-Bahá, Shoghi Effendi or the Universal House of
> Justice.)
> Economics and the Bahá’í Faith
> 
> Bahá’í work ethics influence individuals to become
> productive members of society and develop a sustainable
> lifestyle.
> 
> 3.2    A brief historical perspective of work ethics
> Although the subject of ‘work ethics’, and in particular the
> aspect of ‘work as worship’, is a distinctive principle in
> Bahá’í literature, the concept has been expressed by others
> and stated in various Faiths’ scriptures. However, the
> emphasis here is on the Bahá’í literatures and related
> scholarly materials.
> 
> From a historical perspective, according to specialised in
> technology education Roger Hill:
> work, for much of the ancient history of the human
> race, has been hard and degrading. The cultural norm
> placing a positive moral value on doing a good job
> because work has intrinsic value for its own sake, is a
> relatively recent development.2
> 
> Hill then refers to the significant role of the Protestant in
> accepting physical labour and writes: ‘It was not until the
> Protestant Reformation that physical labour became
> culturally acceptable for all persons, even the wealthy.’ 3
> Attitudes towards work during the classical period were
> degrading too. According to Michael Rose:
> The cultural norms allowed free men to pursue
> warfare, large-scale commerce, and the arts, especially
> architecture. Skilled crafts were accepted and
> recognized as having some social value but were not
> regarded as an appropriate work for slaves. Manual
> labour was for slaves.4
> 
> Roger Hill. ‘The History of Work Ethic,’ retrieved:
> <http://rhill.coe.uga.edu/workethic/hist.htm>.
> Ibid.
> Michael Rose. Reworking the Work Ethic: Economic Values and Socio-Cultural
> Sustainable Production
> 
> For the Romans, work was to be done by slaves and,
> according to Maywood ‘only two occupations were suitable
> for a free man - agriculture and big business. A goal of these
> endeavours was to achieve an honourable retirement into
> rural peace as a country gentleman.’5 Attitudes toward work
> during the Medieval Period began with the fall of the Roman
> Empire. During this time, Christian thought dominated the
> culture of Europe. The attitudes toward work during
> Protestantism, which became a part of the culture during the
> sixteenth century, and the economic value system which they
> nurtured, represented a significant change from medieval and
> classical ways of thinking about work.
> 
> Two key religious leaders who influenced the development of
> western culture and Protestant reformation during the end of
> Medieval Period were Martin Luther (1483 –1546) and John
> Calvin (1509 –1564). Luther believed that people could serve
> God through their work, that the professions were useful, that
> work was the universal base of society and the cause of
> differing social classes. Luther regarded the monastic and
> contemplative life, held up as the ideal during the Middle
> Ages, as an egotistic and unaffectionate exercise on the part
> of the monks, and he accused them of evading their duty to
> their neighbours.6 Calvin taught that all men must work, even
> the rich, because to work was the will of God. The belief was
> that each person should earn an income that would meet his
> basic needs, but to accumulate wealth was sinful. The
> Protestant ethic that gave moral consent to profit making
> 
> Politics, London: Schocken, 1985, p. 18.
> Maywood, A. G. ‘Vocational Education and the Work Ethic,’ Journal of
> Vocational Education and the Work Ethic in a Changing Workplace, no. 78, 1982,
> pp. 7-12, at p. 9.
> For an in-depth discussion of the concept of ‘work’ from Luther and Calvin
> perspective see: Adriano Tilgher. Homo Faber: Work Through the Ages.
> Translated by D. C. Fisher. New York: Harcourt Brace, 1930.
> Economics and the Bahá’í Faith
> 
> through hard work and organization, spread throughout
> Europe and America. This brought the rise of capitalism. In
> the emerging capitalist system, according to Hill, work was
> good. Work satisfied the economic interests of an increasing
> number of small businessmen and it became a social duty and
> a norm.
> 
> In a discussion about changing attitudes toward work,
> Maywood refers to the ‘Protestant work ethic’ as the view
> that humans have a moral duty to work diligently, regardless
> of their station in life, and that by doing so they can reap
> societal regard and the personal reward of knowing that a job
> has been well done. 7 This Protestant work ethic has,
> according to Maywood, reformed the traditional approach of
> work. Max Weber in his The Protestant Ethics and the Spirit
> of Capitalism, written in 1904-05, first coined the term
> ‘Protestant Ethic’. The common notion between the Weber
> and the Bahá’í view is to reconceptualise the worldly work as
> a duty that benefits both the individual and the wider society.
> Therefore, the Bahá’í and Protestant idea of ‘work’ is
> elevated from purely monetary value to manifest signs of
> morality and spirituality.
> 
> Two of the most famous economists in the classical economy
> were Adam Smith, with his free-market economy, and Karl
> Marx, with the notion of socialism. Capitalism came under
> attack by Karl Marx. Marx believed that under the Capitalist
> economic system, workers were dehumanized and exploited.
> He claimed that the new industrial system required workers
> who would accept long hours and poor working conditions.
> He believed that as people laboured for long hours every day,
> 
> Maywood A. G. Journal of Vocational Education and the Work Ethic in a
> Changing Workplace, p. 13.
> Sustainable Production
> 
> they became alienated. Marx distinguishes one class from
> another on the basis of two criteria: ownership of the means
> of production, and control of the labour power, thereby
> believing that society has two distinct classes: I) Capitalists,
> or bourgeoisie, who own the means of production and
> purchase the labour power of others; and II) Workers, who do
> not own any means of production. Hence, for Marx there is a
> conflict between labour and capital.
> 
> The Bahá’í view is that labour and capital are not in conflict,
> rather they are interdependent and complement each other.8
> For example, in the Writings of ‘Abdu’l-Bahá it is stated that
> capitalists may earn much more than labourer, thus
> recommending progressive taxation as a method to moderate
> the inequality.9 Moreover, ‘Abdu’l-Bahá appeals to the self-
> interest of the capitalists and suggests profit sharing as a
> method of enhancing labour productivity.10 It will be to the
> advantage of capitalists to share their profit because workers
> would exert more effort. Hence, workers become partners in
> an industry, and apart from a wage, they receive a portion of
> the profit. 11 These methods eliminate the concept of
> alienation expressed by Marx. ‘Abdu’l-Bahá states, ‘If it be
> right for a capitalist to possess a large fortune, it is equally
> just that his workman should have a sufficient means of
> existence.’12 In addition, the Bahá’í work ethics support the
> economic view that a skill, such as acquisition of useful arts,
> sciences and commerce, are essential for improving
> performance and hence receiving pay according to
> performance. ‘Wage differentials’ and ‘pay according to
> 
> See: Shoghi Effendi, World Order of Bahá’u’lláh, pp. 40-41.
> See: ‘Abdu’l-Bahá. Promulgation of Universal Peace, p. 217.
> See: ‘Abdu’l-Bahá. Some Answered Questions, pp. 315-320.
> Ibid.
> ‘Abdu’l-Bahá. Paris Talks, 12th ed., London: Bahá’í Publishing Trust, 1995, p.
> 156.
> Economics and the Bahá’í Faith
> 
> performance’ and ‘piece work’ are the requirements for
> wealth creation and are features of free-market economy or
> democratic capitalism. The following writings of Shoghi
> Effendi clarifies Bahá’í views on capitalism and the free-
> market economy: The current form of free-market economy
> needs to be ‘controlled, regulated, and even restricted.’ 13
> ‘Bahá’í economic system would…prevents among others the
> gradual control of wealth in the hands of a few and the
> resulting state of both extremes, wealth and poverty.’14 ‘There
> is nothing in the teachings against some kind of capitalism,
> its present form, though, would require adjustments to be
> made.’15 ‘In the Bahá’í economic system of the future, private
> ownership will be retained, but will be controlled, regulated
> and even restricted.’16
> 
> But, is there a realistic and practical alternative to the current
> free-market economy? The answer, according to academic
> economist Richard Lipsey, is both yes and no. No, because
> the modern economy has no practical alternative to reliance
> on market determination for most of its functions; but yes,
> because a market economy cannot deliver all the outcome we
> generally desire without some role for interventions by
> government.17
> 
> Though the ideas of Marx do not seem applicable to modern
> day situations, looking back at Marx’s lifetime, one realises
> that the conditions differed greatly from those of present
> 
> Shoghi Effendi. From a letter dated 25 August 1939 written on behalf of Shoghi
> Effendi as transcribed by the recipient of this letter in a manuscript he prepared, a
> copy of which is held at the Bahá’í World Centre.
> Shoghi Effendi. Letter dated 28 October 1927.
> Shoghi Effendi. Directives from the Guardian, p. 19.
> From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi as
> transcribed by the recipient of this letter in a manuscript he prepared, a copy of
> which is held at the Bahá’í World Centre.
> Richard Lipsey. Economics, Oxford: Oxford University Press, 2007, p. 12.
> Sustainable Production
> 
> time. As Colin Leys, has argued, the change of conditions
> began long before, Leys writes:
> In 1870s two things, had already happened to alter
> Marx’s vision. First, the working class in Western
> Europe was increasingly becoming organist in
> parliamentary political parties and gradually became
> reformist, not transformist; and second, capitalism had
> become a worldwide phenomenon affecting many
> countries in which the working class was still a small
> minority.18
> 
> Moreover, today, the labour market as a part of the free-
> market economy has been regulated and changed
> significantly in favour of workers compared to the time of
> Marx. For example, many governments have passed several
> laws to protect the rights of workers. Also, one of the major
> responsibilities of trade unions is to take care of their
> members, including wage negotiation, providing good
> working conditions, and offering health and safety and
> training programs. Likewise, owners and managers of
> companies demonstrate greater interest in improving the
> working conditions to motivate the workforce. Although, the
> reasons are probably profit driven. The realisation is that such
> improvements increase labour productivity and thus result in
> greater returns for the organization. Therefore, it can be
> argued that a combination of factors, including the effective
> role of government and information and technology, have led
> to a significant transformation in the meaning of the work
> ethic. Jobs provided opportunities for greater self-expression
> by workers and people began to find more self-fulfilment in
> their work.
> 
> Colin Leys. ‘Marxism: Yesterday and Today - The Bahá’í Faith and Marxism,
> Journal of Bahá’í Studies, January 1986, pp. 43-49 at p. 43.
> Economics and the Bahá’í Faith
> 
> 3.3     Sustainable production
> Production plays a major role in all aspects of economic
> activities. For the purpose of this discussion, a working
> definition for sustainable production is developed as follows:
> production is the act of effective utilisation of tangible and
> intangible resources, through an efficient conversion process,
> to produce those goods and services that are befitting human
> nobility, 19 protecting the environment and respecting future
> generations. This definition is in line with Bahá’í
> understanding of sustainable production. Although the phrase
> ‘sustainable production’ does not appear in the primary
> Bahá’í Writings, the requirements for producing commodities
> that are sustainable are mentioned. The first part of the above
> working definition, which is the act of effective utilisation of
> tangible resources, is supported by economic theory; and the
> second part by the Bahá’í Writings. The economic theory, by
> both classical and neo-classical, considers land, labour and
> capital as ‘tangible’ resources. Moral incentives, as
> ‘intangible’ resources are desirable to add value to an
> organization. Both tangible and intangible factors are
> recommended for increasing production in a sustainable way.
> 
> To increase the level of production in a sustainable way, there
> is a need for skilled workers and advanced technology, both
> of which are endorsed in the Bahá’í Writings. The progress of
> advanced technology, however, changes the kinds of skills
> needed, and would not stop people from acquiring knowledge
> and skills. Shoghi Effendi’s view is that, ‘the progress of
> machinery has not made effort unnecessary. It has given it a
> new form, a new outlet.’20 The decision as to what kind of
> 
> Bahá’u’lláh said. ‘Noble have I created thee…’ (Bahá’u’lláh, Arabic Hidden
> Words, no. 22) the word noble in the Bahá’í literatures denotes the quality of
> being noble in character such as honesty, trustworthiness and truthfulness.
> Shoghi Effendi. Letter dated 26 December 1935.
> Sustainable Production
> 
> technology should be used is often a difficult one,
> particularly in developing countries. It involves careful
> consideration of cost estimates for all the inputs for each
> possible technology. In many instances, the modern
> technology is not the cheapest. New technologies usually
> require attention to human capital as well, for example,
> people may need training or retraining, and the size of the
> workforce may have to be reduced as the skilled labour force
> becomes more efficient, or technology replace with labour.
> Hence, both skilled workers and advanced technology may
> cause redundancies, both of which are issues in the stage of
> production of Bahá’í inspired model in chapter seven.
> Consideration must also be given to ensuring that the costs of
> these new technologies do not outweigh their benefits. A
> practical and sensible recommendation is that advanced
> technology and training of the workforce should go hand in
> hand.
> 
> Furthermore, the economic view expressed in the Bahá’í
> Writings indicates that skills such as useful arts and sciences
> and commerce, are necessities for sustainable production and
> wealth creation. Useful arts are concerned with skills such as
> manufacturing and craftsmanship. Economic theories assume
> that skilled workers with high demand earn more than
> unskilled workers. There are several reasons for this view.
> Principally, this is because the demand for skilled workers is
> higher, and in some occupations, supply of skilled workers is
> limited. Another reason is that the marginal revenue and
> marginal physical product of skilled labour is high, because
> the skills possessed by the workers will lead to higher
> revenue. 21 Also, the supply of skilled labour in many
> 
> Marginal Revenue is the increase in total revenue when output increases by one
> unit. Labour is more demanded when they are able to increase productivity and
> hence increasing sales.
> Economics and the Bahá’í Faith
> 
> developing countries is below that of unskilled workers. In
> some highly-specialised occupations, it is difficult to
> substitute skilled labour with machines. Such attitudes
> towards skill learning increase the wealth of a nation. This
> accords with the guidance of the head of the Bahá’í Faith the
> Universal House of Justice, which said, ‘The Bahá’í
> community will need men and women of many skills and
> qualifications; for, as it grows in size the sphere of its
> activities in the life of society will increase and diversify.’22
> 
> Notably, ‘Abdu’l-Bahá relates the effect of work and the
> acquisition of useful arts, and sciences, to the multiplying of a
> nation’s wealth. He said:
> The acquisition of useful arts and of general
> knowledge, to inform [themselves] as to the truths of
> such physical sciences as are beneficial to man, and to
> widen the scope of industry and increase the products
> of commerce and multiply the nation’s avenues of
> wealth.23
> 
> For example, an increase in investment in useful arts and
> sciences and skills learning, have led to creating
> specialisation, which in turn has a great effect on the national
> income of a country. Specialisation allows a person to
> become skilled and more efficient at a specific task, hence
> producing more, with better quality and less wastage. To
> achieve this level of specialisation, the Bahá’í Writings
> suggest training and skill learning and a fair pay system, such
> as the principle of profit sharing. However, the drawback of
> becoming specialised in a certain occupation is that it may
> become monotonous for some individuals. It may also mean
> that the specialised person would end up with limited skills in
> other things, reducing his or her ability to find other jobs if
> 
> Universal House of Justice. Wellspring of Guidance, Wilmette IL: Bahá’í
> Publishing Trust, 1979, p. 95.
> ‘Abdu’l-Bahá. The Secret of Divine Civilisation, pp. 102-103.
> Sustainable Production
> 
> they wished to. Therefore, in some cases specialisation may
> reduce efficiency and demotivate workers. Consequently, the
> extent to which specialisation motivate workers, or add
> meaning to life, varies in different people.
> 
> In recent time, many organizations have become more
> innovative by putting new ideas and approaches into action to
> create social benefits. Innovation is the development of new
> customer values through techniques that meet new market
> needs in new ways. This is accomplished through different or
> more effective products, processes, services, technologies, or
> ideas that are more readily available to markets,
> governments, and society. Among the benefits of innovation
> are increasing the profit of the organization; product
> diversification; satisfying consumer needs; use of new
> business opportunities; market development; and increasing
> competitive advantage. There are positive externalities24 from
> the use of innovation and new technology that can be used,
> for example in pharmaceutical industry where new drugs
> improve the quality of life, or improvements in car
> manufacturing that reduce the risk of injury from accidents
> and help to diminish environmental damage such as emission
> levels and pollution. The model assumes great responsibility
> for organizations to consider codes of conduct in areas of
> corporate integrity, social obligation, personal uprightness,
> and environmental responsibility. Therefore, those
> individuals and organizations that have the ability, skill and
> knowledge can innovate those essentials of life that not only
> causing wellbeing for the generality of population but also
> promote sustainability.
> 
> Positive externalities are those activities that its social benefits exceed private
> benefits.
> Economics and the Bahá’í Faith
> 
> 3.4    Bahá’í work ethics
> The term ‘work ethic’ refers to the beliefs, values, and
> principles that guide the way individuals understand, value,
> and perform their jobs well. Gene Laczniak defines ethics
> as ‘moral rules or principles of behavior that should guide the
> members of a profession or organization and make them deal
> honestly and fairly with each other and with their
> customers.’ 25 The distinctiveness of ‘Bahá’í work ethics’ is
> that, work done in a spirit of service is elevated to the rank of
> worship. Hence, the expression ‘work as worship’ is a key
> concept for discussing the Bahá’í perspective on work and
> work ethics. The challenge, as Torrington, Hall, and Taylor
> argue, is that ‘ethical standards vary between different
> national cultures, making international standards difficult.’26
> They further write, ‘Ethical codes are only valid if they are
> appreciated and willingly implemented by the great majority
> of those to whom they apply.’27 To make this view effective,
> work ethics should become a culture in an organization and
> perhaps in the wider society.
> 
> From an economic perspective, work is central and a key
> principle. Through work, individuals carry out their
> responsibilities, maintain their livelihoods, and enhance their
> quality of life. Without work, and hence in the absence of
> monetary reward, production, distribution and consumption
> cannot be sustained. From a Bahá’í perspective, work is
> conducive to human upliftment and exaltation. Also, work is
> important for individual identity and self-fulfilment, and as a
> 
> Gene Laczniak. Framework for Analyzing Marketing Ethics, London: Prentice-
> Hall, 1990, p. 18.
> Derek Torrington, Laura Hall and Stephen Taylor. Human Resource
> Management, 7th ed., London: Pearson Education Limited, 2008, p. 756.
> Ibid.
> Sustainable Production
> 
> service for community development. Bahá’u’lláh affirmed
> ‘work is worship’. He also said: ‘It is incumbent upon each
> one of you to engage in some occupation, such as a craft, a
> trade or the like. We have exalted your engagement in such
> work to the rank of worship of the one true God.’28 Hence,
> the emphasis is not only placed on the monetary aspect of
> work but also on its effect on one’s spiritual development,
> which would otherwise be achieved through worship.
> 
> Despite great emphasis on the principle of work as worship,
> the concept of work as spiritual practice could be disputed.
> The concept of spirituality is difficult to grasp in the context
> of a discussion on ‘work’, because of its abstract nature. It is
> difficult to measure spirituality, as people have to think
> beyond monetary gain. It can be argued that work and
> worship are totally different from each other. Worship is in
> the spiritual realm, it is an act of meditation and aims to
> receive the blessings of God. For many it is done in private,
> in a temple or a shrine. However, work is what is done in the
> fields, in a factory, in a hospital, in school, or in an office.
> The purpose of work for many is to earn a living and produce
> a certain amount of output, both of which have a monetary
> value and can be measured.
> 
> In modern working practices, the nature of work has shifted
> from a purely monetary concept to achieving higher values.
> People do not necessarily work only to satisfy their material
> needs, but for other reasons, such as identity, feeling they are
> doing something of value or contributing. The modern
> theories of motivation in the work place developed by clinical
> psychologists, Abraham Maslow’s29 ‘hierarchy of needs’, and
> 
> Bahá’u’lláh. Aqdas, verse 33.
> For Abraham Maslow’s five level of human needs: physiological, security,
> social, esteem, and self- actualization, see: ‘A Theory of Human Motivation,’
> Economics and the Bahá’í Faith
> 
> Fredrick Herzberg’s ‘two factor-theory’30 supports the Bahá’í
> view that higher value of work is as a motivational factor. For
> example, Abraham Maslow in his paper of the ‘theory of
> human needs’, or the ‘hierarchy of needs’, considers social
> factors (including love and belonging), esteem and self-
> actualization as necessary requirements for a worker’s
> motivation, although, the lower nature of ‘work’, such as
> physiological and safety aspects are not overlooked. 31 In
> parallel to Maslow, Herzberg’s two-factor theory of
> motivation states that there are certain factors in the
> workplace that cause motivation, while a separate set of
> factors cause dissatisfaction and they act independently of
> each other. According to Herzberg, individuals are not
> content with the satisfaction of lower-order needs at work.
> Rather, individuals look for the gratification of higher-level
> needs such as achievement, recognition, responsibility, and
> advancement. 32 Others such as Elton Mayo (1880-1949)
> stressed the principles of ‘team working and consultation’33
> as a method for motivating the workforce and increasing the
> level of output, and both of these principles are indicated and
> supported in the Bahá’í literatures.
> 
> Consequently, as modern theories suggest, some people work
> for reasons such as excelling in their skills, talents and
> potential, or following their passions and achieving status.
> The Bahá’í work ethics advocate that work may become a
> path to spiritual development. For example, by referring to
> the purpose of work, Shoghi Effendi said, work ‘has not only
> a utilitarian purpose, but has a value in itself, because it
> 
> Psychological Review, no. 50, 1943, pp. 370-396, at 374. Also see: Gerald Cole.
> Management, Theory and Practice, p. 36.
> For Fredrick Herzberg’s ‘Two Factor Theory,’ see: Cole. p. 37.
> Abraham Maslow. Journal of Psychological Review, p. 375.
> For Herzberg’s Motivation – Hygiene Theory, see: Cole. p. 37.
> For Elton Mayo’s view on team working see: Cole. p. 34.
> Sustainable Production
> 
> draws us nearer to God, and enables us to better grasp his
> purpose for us in this world.’34 The practical implication of
> ‘work as worship’ is that through fulfilling natural duties in
> life honestly and to the best of one’s ability, a person will
> progress spiritually, because work puts a person in a position
> to serve others. It can be argued that some people’s labour is
> exploited and that many do not have the opportunities or
> motivation to work. One way in which work helps change
> behaviours is that through interactions with others, one
> becomes aware of their needs, is less focussed on ‘self’, and
> more focussed on helping others, thereby changing
> behaviour. Hence, work becomes significant when it provides
> service to others. Service and worship become parts of the
> same entity. Thus, the concept of ‘work as worship’ suggests
> that, for a Bahá’í, work or occupation is part of a person’s
> religious duty and spiritual growth, a way of life, and
> fulfilment of responsibilities. Consequently, the central
> figures of the Bahá’í Faith also state the type of occupations
> that would be elevated to the rank of worship. These include
> craft, agriculture, useful arts and sciences, commerce, and
> skills learning. The basic principle, however, is that work
> should be done in a spirit of service, although it may lead to
> material gain and wealth creation.
> 
> But, is wealth creation unethical? The Bahá’í work ethics do
> not condemn wealth creation. In one of His Writings
> Bahá’u’lláh states: ‘Having attained the stage of fulfilment
> and reached his maturity, man standeth in need of wealth, and
> such wealth as he acquireth through crafts or professions is
> commendable and praiseworthy.’ 35 This statement has
> important economic and moral implications. Bahá’u’lláh does
> 
> Shoghi Effendi. Cited in Aqdas, note 56.
> Bahá’u’lláh. Tablets, pp. 34-35.
> Economics and the Bahá’í Faith
> 
> not declare wealth as immoral; he rather accepts the need for
> it when a person reaches the stage of maturity. But, what is a
> stage of maturity? It can be viewed as when an individual has
> developed intellectually and spiritually to a point when he or
> she is able to take on responsibility for himself or herself and
> others, so that the wealth acquired through engaging in some
> sort of crafts or profession can be spent sensibly and
> responsibly. This, however is open to interpretation. There
> are a number of criteria for fulfilling such a claim. In other
> words, the level of maturity influences a person to spend the
> wealth on those goods and services that are befitting human
> dignity. This would then inspire producers to produce those
> products that are demanded by responsible consumers.
> 
> The pursuit of a profession is encouraged in the Bahá’í
> Writings. ‘Abdu’l-Bahá said, ‘Strive as much as possible to
> become proficient in the science of agriculture for in
> accordance with the Divine Teachings, the acquisition of
> science and the perfection of arts is considered as acts of
> worship.’ 36 The pursuit of professions such as agriculture,
> arts, sciences and technology, as well as in the fields of
> education, health and social services, are all relevant
> examples of ‘work is worship’. ‘Abdu’l-Bahá further states:
> ‘If a man engages with all his power in the acquisition of a
> science or in the perfection of an art, it is as if he has been
> worshipping God in the churches and temples.’37 The word
> ‘perfection’ in this passage suggests the modern working
> concept of ‘quality assurance.’ 38 Lawrence Miller further
> 
> ‘Abdu’l-Bahá. Bahá’í World Faith, compiled by the National Spiritual
> Assembly of the Bahá’ís of United States of America, Wilmette IL: Bahá’í
> Publishing Trust, 1976, p. 377.
> Ibid. Selection, pp. 144-145.
> ‘Quality assurance’ is the notion of increasing efficiency, waste reduction and
> improving productivity, all of which would benefit an organization to perform
> better.
> Sustainable Production
> 
> elabourates on this subject by emphasising the importance of
> the right ‘attitude’ to work, he writes:
> The word ‘if’ is very important when discussing
> ‘work is worship’. It does not say that if a person
> simply shows up at work and puts in his time, it is as
> if he were worshiping God. It is only if he is ‘engaged
> with all his power’ and is seeking perfection in that
> work…both mind and spirit must be exercised at work
> and only then, ‘when engaged with all his power’, is it
> an act of worship.39
> 
> Therefore, work is worship when attaining a sense of
> creativity and self-worth from a meaningful work. This
> requires a change in the workers’ attitude towards work, and
> how the workplace is designed to motivate workers. The
> workplace, as suggested by Herzberg and his hygiene factors,
> has a profound impact on the spiritual well-being of human
> resources, including workers and management. In such an
> environment, individuals feel a sense of fulfilment and self-
> esteem, resulting in improving performance and increasing
> output.
> 
> As mentioned earlier, in order to perform one’s job with
> excellence, one needs to be skilled and trained in what he or
> she is doing. The need for education and training for
> attainment of excellence is therefore closely linked with work
> ethics and essential for improving individual and
> organizational performance. In regard to education and
> training of children ‘Abdu’l-Bahá said:
> The education and training of children is among the
> most meritorious acts of humankind and draweth
> down the grace and favour of the All-Merciful, for
> education is the indispensable foundation of all human
> excellence and alloweth man to work his way to the
> 
> Lawrence Miller. Spiritual Enterprise, p. 152.
> Economics and the Bahá’í Faith
> 
> heights of abiding glory.40
> 
> In modern times, working conditions are changing all the
> time and continued professional development and skill
> learning are necessary to adapt to such changes, and maintain
> excellence. Customer trends, the market, and technology are
> changing so rapidly that unless employers take steps to
> constantly update knowledge, skills and technology, workers
> will be less valuable to their current or future employers. A
> number of countries that are able to develop the skills and
> education of their people and to employ them effectively in
> their economy have achieved great success in many aspects
> of development. As economist Tony Thirlwall pointed out
> since 1960’s there has been a new industrial revolution by a
> number of countries so called the ‘Newly Industrialised
> Countries’41 of South-East Asia into a virtually industrialised
> state, and many others into a semi-industrialised state.
> 
> Knowledge has a significant place in the Bahá’í Writings and
> as a result the Bahá’í community observes a culture of
> learning. It is stated that ‘Knowledge is as wings to man’s
> life, and a ladder for his ascent.’42 Hence, a combination of
> mode of learning, intellectual capability, and moral values
> influence a Bahá’í to choose the right skills and the right line
> of work. The dynamics of knowledge, skill learning, and
> excellence in all things equip an employee to work
> adequately and produce goods and services that satisfy the
> customers appropriately. Making customers delighted,
> according to Stanley Brown, is the key factor for total
> customer service and it is a sign of success for
> ‘Abdu’l-Bahá. Selections, pp. 129-130.
> Tony Thirlwall. Economics of Development: Theory and Evidence. 9th ed., New
> York: Palgrave Macmillan, 2011, p. 21. (Newly industrialised economies
> including South Korea, Taiwan, Singapore and Malaysia.)
> Bahá’u’lláh. Tablets, p. 26.
> Sustainable Production
> 
> organizations.43 Delighting customers, however depends what
> commodities are demanded and if products match human
> dignity.
> 
> A Bahá’í view closely linked with ‘work as worship’ is to
> attempt to achieve perfection in one’s profession, which is
> closely related to skill learning discussed earlier. Bahá’u’lláh
> said ‘Strain every nerve to acquire both inner and outer
> perfections, for the fruit of the human tree hath ever been and
> will ever be perfections both within and without.’44 The inner
> and outer perfection can be interpreted as developing both
> spiritually and materially. The impression is that work offers
> the opportunity for self-realization and self-development, in
> addition to the material benefits. ‘Abdu’l-Bahá exhorts
> Bahá’ís in ‘attaining perfection in one’s profession’45 He goes
> further to say ‘Thou must endeavour greatly so that thou
> mayest become unique in thy profession and famous in those
> parts.’ 46 The view of producing products at ‘highest
> perfection’ and other expressions such as ‘outer perfection’,
> ‘highest motives’ 47 and ‘attaining perfection in one’s
> profession’ 48 can be interpreted as resource efficiency and
> sustainability. However, although qualities such as perfection
> and excellence are necessary factors for improving
> performance and increasing level of output, they are not
> sufficient. Commitment from the workforce is required to
> maintain a high level of excellence in the process of
> manufacturing a product.
> 
> Stanley Brown. Strategic Customer Care, Toronto: John Wiley and Sons Ltd.,
> 1999, p. 23.
> Bahá’u’lláh. Quoted in Bahá’í Education, Compiled by National Spiritual
> Assembly of the Bahá’í of United Kingdom, London: Bahá’í Publishing Trust,
> 1987, p. 3.
> ‘Abdu’l-Bahá. Selections, p. 145.
> Ibid., pp. 145-146.
> ‘Abdu’l-Bahá. Paris Talks, p. 189.
> Ibid. Selections, p. 145.
> Economics and the Bahá’í Faith
> 
> An area closely related to the Bahá’í work ethics is that
> Bahá’ís are encouraged to study the type of knowledge and
> engage in a kind of occupation that benefits the entire society.
> In several Writings, the central figures of the Bahá’í Faith
> have encouraged Bahá’ís to engage in such professions that
> will benefit all. For example, Bahá’u’lláh advises his
> followers to ‘occupy yourselves with what will profit you
> and others.’49 He also said ‘Ye are the trees of My garden; ye
> must give forth goodly and wondrous fruits, that ye
> yourselves and others may profit therefrom.’50 He also said
> ‘The best of men are they that earn a livelihood by their
> calling and spend upon themselves and upon their kindred for
> the love of God.’51 Some important objectives of sustainable
> production have been stated in the above passages including:
> productivity, earning a livelihood, service to humanity, and
> sharing. These factors influence a Bahá’í to acquire a kind of
> knowledge and profession that not only benefits his or her
> own life but also benefits others. Many Bahá’ís have
> therefore studied those subjects, and chosen a profession, that
> can be beneficial to their own development and at the same
> time being of benefit to the wider community. This helps to
> achieve a relative equilibrium in the labour market. This may
> also promote undertaking skill-learning or studying the
> subjects that are in high demand in the market. Such efforts
> help to satisfy workers’ needs as well as the needs of the
> market.
> 
> What is the practical application of ‘work as worship’? The
> Bahá’í view is that it is not possible to worship God without
> serving others. Prayers and meditations need to be reflected
> 
> Bahá’u’lláh. Aqdas, verse 33.
> Ibid. Hidden Words (from Persian translation), no. 80.
> Ibid. no. 82.
> Sustainable Production
> 
> in action in order to be effective. ‘Bahá’í House of Worship’
> (Mashriqu’l-Adhkár) is a classic example for the application
> of two ethical principles of ‘worship’ and ‘service’.
> Mashriqu’l-Adhkár is Arabic, meaning ‘the Dawning-Place
> of the Praise of God.’52 Referring to the significance of the
> function of Bahá’í House of Worship, Shoghi Effendi writes:
> Bahá’í worship, however exalted in its conception,
> however passionate in fervour … cannot afford lasting
> satisfaction and benefits to the worshipper himself,
> much less than to humanity in general, unless and
> until translated and transfused into that dynamic and
> disinterested service to the cause of humanity.53
> 
> Consequently, the Houses of Worship incorporates two
> fundamental principles to be included in every Bahá’í
> community; namely worship and building capacity for
> service to humanity. In its 2012 ‘Ridván message’ 54 , the
> Universal House of Justice expound the two important
> functions of ‘worship and service’ offered in the Bahá’í
> Houses of Worship as ‘an educational process that builds
> capacity for service to humanity.’55
> 
> The purpose of the Bahá’í House of Worship is not simply an
> outstanding building with a dome, with beautiful gardens
> around it where people go to worship. It comprises those
> elements that satisfy the social needs of people, through a
> number of dependencies dedicated to activities concerned
> with social, humanitarian, educational, and scientific pursuits.
> Shoghi Effendi envisages that the House of Worship and its
> dependencies ‘shall afford relief to the suffering, sustenance
> 
> Shoghi Effendi. Cited in Aqdas, note 53.
> Ibid. Bahá’í Administration, p. 186.
> Each year during Ridván period, 21 April - 2 May, the Universal House of
> Justice send a message to the Bahá’ís around the world. These messages are
> usually about the development of Bahá’í community worldwide.
> Universal House of Justice. Ridván message, April 2012.
> Economics and the Bahá’í Faith
> 
> to the poor, shelter to the wayfarer, solace to the bereaved,
> and education to the ignorant.’56 It is indicated in the Writings
> that there will be Bahá’í Houses of Worship in every town
> and city in the future.57 As the Bahá’í Houses of Worship are
> not yet built in every community, Bahá’ís organize activities
> at homes, halls and community centres to consult, learn, and
> practice the two principles of worship and service to
> humanity.
> 
> A significant aspect of Bahá’í House of worship is that it is
> the practical demonstration of religious unity. These Houses
> of worship are unique places which welcome members of all
> Faiths ‘to re-unite’ them. A letter written on behalf of Shoghi
> Effendi states, ‘The oneness of mankind implies the
> achievement of a dynamic coherence between the spiritual
> and practical requirements of life on earth. The
> indispensability of this coherence is unmistakably illustrated
> in his ordination of the Mashriqu’l-Adhkár.’58 Hence, Bahá’í
> Houses of Worships are an ideal place to gather people of all
> faiths and no faith.
> 
> 3.5    Bahá’í teachings to increase supply of labour
> The ability of an individual, or group of individuals, to
> become productive members of society, is important for
> one’s own growth and also as a process for community
> building and social development. Studying the Bahá’í
> Writings, a number of distinctive and interrelated teachings
> are found that are effective in enabling such a process. The
> application of these teachings provides employment
> 
> Shoghi Effendi. noted in Aqdas, p.191.
> Currently there are Baha’i Houses of Worship in Chicago-USA; Frankfort-
> Germany; Sydney-Australia; New Delhi-India; Apia-Western Samoa; Panama
> City-Panama; Kampala-Uganda; and Chile.
> Shoghi Effendi. Messages to America, pp. 23-24.
> Sustainable Production
> 
> opportunities and increases the supply of workforce in the
> labour market. There is also a need to Identify labour market
> deficiencies, to ensure provision of training and skills
> learning to fill the gaps, thereby optimising production. This
> subject is further detailed in the following sections using
> principles of Bahá’í work ethics and sustainable production.
> 
> 3.5.1 Bahá’í view on idleness
> Bahá’ís are encouraged to work, to be productive members of
> the society, earn a livelihood, and to serve humanity. Thus,
> idleness is forbidden, whether it is due to lack of skills, lack
> of incentives, or as a result of living from inherited wealth.
> However, opportunity to work must be provided. The
> founder of the Faith states, ‘Waste not your hours in idleness
> and sloth.’ 59 And his successor, ‘Abdu’l-Bahá places
> emphasis on the productive capacity of individuals and
> suggests that ‘all must be producers.’ 60 Shoghi Effendi, in
> reference to a passage from the Writings of Bahá’u’lláh 61 ,
> firmly affirms that ‘Every individual, no matter how
> handicapped and limited he may be, is under the obligation of
> engaging in some work or profession’ 62 and referring, to
> those who have inherited wealth and see no need to work he
> said ‘The inheritance of wealth cannot make anyone immune
> from daily work.’63 These excerpts leave little excuse for any
> Bahá’í to avoid working or being of service for the common
> good.
> 
> Bahá’u’lláh. Aqdas, verse 33.
> ‘Abdu’l-Bahá. Promulgation, p. 217.
> See: Bahá’u’lláh, Gleanings, p. 202. (He said: The poor may exert themselves
> and strive to earn the means of livelihood. This is a duty, which, in this Most
> Great Revelation, hath been prescribed unto every one, and is accounted in the
> sight of God as a goodly deed. Whoso observeth this duty, the help of the
> invisible One shall most certainly aid him.)
> Shoghi Effendi. Directives, p. 74.
> Ibid.
> Economics and the Bahá’í Faith
> 
> The idea that the poor have to do their utmost to be engaged
> in some kind of work is supported by economic policies and
> has significant consequences in the life of the poor, their
> families and the entire economy. At the individual level, it
> causes one to better understand the value and objective of
> life. It helps families to enjoy higher standards of living,
> including better education, improved health and greater
> happiness. Society can also benefit greatly by using resources
> more effectively. For example, by lowering unemployment
> and increasing output, which leads to economic growth and,
> ultimately, more revenue for government to use to improve
> public services. The practicality of these idealistic views in
> Bahá’í Writings and in economic theories in a more
> sustainable social, economic and political environment, need
> to be analysed. The labour market is very complex and
> external shocks, such as a period of recession, bad weather
> conditions, war, and political instability, greatly affect
> employment conditions. Hence, labour market fluctuation
> exists all the time.
> 
> But what constitutes idleness and productivity? It is
> important to consider what we mean by idleness, and the
> productivity of what. This is the dilemma. For example,
> people working in a weapons factory are still considered to
> be ‘productive’ and from an economics perspective,
> measured in terms of Gross Domestic Product, add to the
> average standard of living. However, such activities may not
> be ethical. Alternatively, one may argue that it is far better to
> be ‘idle’ and collect unemployment benefits from the public
> fund than working in an arms industry. Hence, there is much
> more in analysing the concept of ‘idleness’. For example,
> what guarantee is there that jobs would be available for
> everyone? In the free-market economy, it is not possible for
> all to be employed. During a period of full employment,
> Sustainable Production
> 
> some form of unemployment is still unavoidable, such as
> those people affected by structural, frictional, and seasonal
> unemployment. William Phillips64 , for example, shows that
> there exists a ‘natural rate of unemployment’ during a period
> of full employment. The idea is that a certain level of
> unemployment helps balancing inflation and price stability.65
> The level of unemployment varies in different countries and
> depends on a number of factors, including the availability of
> natural resources to produce goods and services, the existence
> of appropriate technology, capital investment, the level of
> education and training in necessary skills, as well as a good
> standard of health.
> 
> What provisions are there for Bahá’ís to ensure there are
> sufficient earnings for living? Bahá’u’lláh, in one of His
> Writings, refers to one of the duties of ‘the House of
> Justice’ 66 as ‘have been charged with the affairs of the
> people.’ 67 In relation to the word ‘affairs’ in this passage,
> Shoghi Effendi identifies a number of provisions to be
> considered by Local Spiritual Assemblies, including ensuring
> shelter for the poor and needy, encouraging and helping
> individuals in acquiring sufficient skills, establishing schools
> for education and training, and ensuring the provision of
> necessary academic equipment. He said:
> It is the duty of those who are in charge of the
> organization of society to give every individual the
> opportunity of acquiring the necessary talent in some
> 
> William Phillips, wrote a paper in 1958 titled ‘The Relation between
> Unemployment and the Rate of Change of Money Wage Rates in the United
> Kingdom, 1861-1957.’ In the paper Phillips describes how he observed an inverse
> relationship between money wage changes and unemployment in the British
> economy over the period examined. See: Krugman, International Economics:
> Theory and Policy, pp. 235-237.
> Christiane Lawrence. Economics, London: Nelson Thornes, 2009, p. 153.
> Universal House of Justice. The Kitáb-i-Aqdas, note 80. (Currently, Local
> House of Justice is known as Local Spiritual Assembly.)
> Bahá’u’lláh. Tablets, p. 26.
> Economics and the Bahá’í Faith
> 
> kind of profession, and also the means of utilising
> such a talent, both for its own sake and for the sake of
> earning the means of his livelihood.68
> 
> Providing opportunities for employment however, does not
> mean that unemployment is unavoidable. Apart from skill
> learning, which was discussed earlier, Assemblies are advised
> to ensure that children from disadvantaged families are taken
> care of and receive academic education.69 However, although
> it is most important for everyone to engage in some form of
> work and service, this does not apply to those who do not
> have the physical or intellectual abilities to do so. These
> individuals would be under the protection of the state or the
> Houses of Justice, to ensure their needs are met, and their
> quality of life is preserved in the best possible way.
> 
> 3.5.2 Bahá’í view on begging as a profession
> Is there a place for begging in the Bahá’í community? Two
> issues are relevant to this discussion. First: at an individual
> level, Bahá’ís are forbidden to beg, the law of The Kitáb-i-
> Aqdas is very clear about this, Bahá’u’lláh states:
> It is unlawful to beg, and it is forbidden to give to him
> who beggeth. All have been enjoined to earn a living,
> and as for those who are incapable of doing so, it is
> incumbent on the Deputies of God 70 and on the
> wealthy to make adequate provision for them.71
> 
> The rationale of the injunction against begging is that it is
> offensive to the dignity of a person. A person who takes
> 
> Shoghi Effendi. Directives, p. 74.
> See: Shoghi Effendi, Quoted in Bahá’í Education, pp. 49-50. (According to him
> ‘Every child without exception must from his earliest years make a thorough
> study of the art of reading and writing … To assist the children of the poor in the
> attainment of these accomplishments, and particularly in learning the basic
> subjects, it is incumbent upon the members of the Spiritual Assemblies.’)
> In this passage, ‘Deputies of God’ refers to members of Local Spiritual
> Assemblies.
> Bahá’u’lláh. Aqdas, verse 147.
> Sustainable Production
> 
> begging as a profession, living off others while contributing
> nothing, is considered a beggar, and should not be
> encouraged. However, a distinction should be made between
> giving to those who beg professionally, and those who are
> poor because they are incapable of working or because their
> earning is not sufficient for an adequate living. This view is
> supported by ‘Abdu’l-Bahá in the following statement:
> Mendicancy is forbidden and that giving charity to
> people who take up begging as their profession is also
> prohibited...The object is to uproot mendicancy
> altogether. However, if a person is incapable of
> earning a living, is stricken by dire poverty or
> becometh helpless, then it is incumbent on the
> wealthy or the Deputies to provide him with a
> monthly allowance for his subsistence.72
> 
> Why is mendicancy so highly disapproved of by Bahá’u’lláh
> while giving to charity is highly encouraged? Can we try to
> form a more precise picture of what Bahá’u’lláh has
> condemned? For example, we are familiar with street
> beggars, adults and children who often appear to be homeless
> and beg for money. Some may suffer from mental or physical
> disabilities. Is that what Bahá’u’lláh has forbidden or
> condemned? The Bahá’í Writings support charity for
> assisting those who are in need. For a person who suffers
> hardship due to circumstances beyond her or his control,
> Bahá’ís are enjoined to show compassion and be charitable.
> Bahá’u’lláh confirms this, saying: ‘Charity is pleasing and
> praiseworthy in the sight of God and is regarded as a prince
> among goodly deeds.’73 Bahá’ís are encouraged to become ‘a
> source of social goods.’ 74 In contrast to beggars, the poor
> have a very special place in the Bahá’í Writings. The rich are
> 
> ‘Abdu’l-Bahá. Cited in Aqdas, note 162.
> Bahá’u’lláh. Tablets, p. 71.
> ‘Abdu’l-Bahá. The Secret, pp. 2-3.
> Economics and the Bahá’í Faith
> 
> told to have the utmost regard for the poor. In numerous
> Writings, the central figures of the Bahá’í Faith encourage
> the wealthy to take care of the poor. Instructing the rich,
> Bahá’u’lláh said ‘O ye rich ones on earth! The poor in your
> midst are My trust, guard ye My trust, and be not intent only
> on your own ease.’75 These passages clearly confirm that the
> Bahá’í Writings consider the rich responsible for alleviating
> poverty and for improving the living standards of the poor.
> However, the nature of giving should not be for the sake of
> receiving public recognition or deriving more benefits. The
> intention of the donors should be sincere altruism. Within
> Bahá’í communities, helping the poor usually comes through
> development projects, and contributing time and funds to
> Bahá’í institutions that carry out these responsibilities. It
> seems that the focus on begging certainly needs to be coupled
> with a focus on the rich and their extravagant practices,
> which may have contributed to the need for begging in the
> first place. Virtues such as generosity, compassion, kindness,
> thoughtfulness and justice, require action, otherwise they do
> not exist or their existence can be challenged. These qualities
> are only there if they are acted upon. The expressions ‘be’
> generous, or ‘be’ compassionate, conveys an action, without
> which it is not there! One cannot be compassionating without
> practicing compassion.
> 
> The Bahá’í writing delegates the rich a great responsibility
> towards the poor. In this passage Bahá’u’lláh states: ‘Great is
> the blessedness awaiting the poor that endure patiently and
> conceal their sufferings, and well is it with the rich who
> bestow their riches on the needy and prefer them before
> themselves.’ 76 In recent time charitable undertakings are
> 
> Bahá’u’lláh. Hidden Words (from Persian translation), no. 54.
> Bahá’u’lláh. Gleanings, p. 202.
> Sustainable Production
> 
> boosted as a means for helping those in needs. The question
> to be considered is that if the poor are hiding their poverty,
> how can it be known to the rich to support them? There is a
> distinction between satisfaction and happiness. The poor are
> satisfied with what they possess because they are not given
> the opportunity to ensure a better life. Being satisfied does
> not mean they are happy. A poor person living in absolute
> poverty may satisfy with one meal per day because he cannot
> get the second. Happiness requires more than the basic needs,
> it requires proper education and health, employment
> opportunity, adequate housing and sanitation, and living in an
> acceptable environment.
> 
> Will there be a need for charity when poverty is eliminated?
> Generosity is an altruistic act of human being and will always
> need to be practiced. It may be argued that one of the reasons
> for eradication of poverty in the future would be continued
> acts of generosity and charitable giving. There will always be
> people who will not have the ability to earn sufficiently to
> live comfortably. Generosity and charitable acts are long
> standing traditions in all cultures, and they will continue to
> exist, with or without religious affiliation.
> 
> The Bahá’í law of prohibiting begging on one hand and the
> need for adequate provision for the poor and needy by Local
> Spiritual Assemblies on the other, makes one wonder if
> individual Bahá’ís asking for help from Assemblies is a form
> of begging? Exploring the Bahá’í Writings, it is notable that
> Bahá’í teachings are interrelated and interconnected and
> should be looked at collectively rather than separately. For
> example, as discussed earlier, compulsory education
> encourages the Bahá’ís to acquire skills that help them
> acquire work, which would benefit themselves and others.
> Furthermore, work being considered as worship encourages
> Economics and the Bahá’í Faith
> 
> Bahá’ís not to remain idle. Also, since giving to the Bahá’í
> Fund is a spiritual obligation, any inappropriate use of this
> Fund would be deemed morally wrong. The establishment of
> the Institution of the House of Worship and its dependent
> agencies provides several opportunities for the deserving
> poor to be engaged in learning necessary talents, which
> would help them to work. It should be noted that according to
> the Bahá’í Writings, the House of Justice would determine
> the details of how the deserving poor will be protected and
> the nature of the help given to them. The emphasis is that the
> type of problems changes at different times and a new
> solution is required. Bahá’u’lláh provides the solution:
> Inasmuch as for each day there is a new problem and
> for every problem an expedient solution, such affairs
> should be referred to the Ministers of the House of
> Justice that they may act accordingly to the needs and
> requirements of the time.77
> 
> At the present time, Local Spiritual Assemblies deal with this
> matter according to the community’s needs and available
> resources.
> 
> Also, as the Bahá’í community evolves and the economic
> principles are applied, absolute poverty shall disappear and
> there will not be any need for one to beg or the possibility for
> individuals to stay idle. However, it is not reasonable to think
> that the individuals’ generosity is the only way of dealing
> with the challenges of begging. The role of government is
> crucial in eradicating begging, through legislation and other
> methods such as social welfare programs. This is practical in
> the more developed countries. Of course, the question will be
> raised if collecting monetary assistance from the welfare
> system is considered as a type of begging. If, despite attempts
> 
> Bahá’u’lláh. Tablets, p. 27.
> Sustainable Production
> 
> for one to engage in some form of work, one still remains in
> need, then it would be the responsibility of the state or the
> assemblies to ensure their well-being. Government should
> provide a variety of benefits for improving the general well-
> being of the population rather than individuals asking for it.
> The provider is the government who distributes necessary
> resources for the well-being of all. Of course, it is vital to
> realise the realities that different countries are politically,
> religiously and economically varied and complex.
> 
> 3.5.3 Gender Equality
> Bahá’ís believe in equality of opportunity for women and
> men in social and economic contribution. This principle has
> an important implication in increasing the supply of the
> workforce and hence the level of production. The Bahá’í
> literatures suggest the active participation of women in all
> aspects of community life. It is stated that ‘Women have
> astonishing capacities.’ 78 The benefits of discovering and
> using the capacity of women are many and affect the whole
> of society. These include increasing economic growth
> worldwide, particularly in developing countries, and a decline
> in the number of people living in poverty. Therefore,
> statements such as ‘womankind may develop equal capacity
> and importance with man in the social and economic
> equation,’79 if applied in practice would significantly enable
> the other half of the human population, women, to engage in
> all levels of social and economic activity, once equal
> opportunity is provided.
> 
> However, according to Arthur Dahl ‘The inequality of
> opportunity to which women are subjected in many cultures
> 
> ‘Abdu’l-Bahá. Quoted in Women, Compiled by the Research Department of the
> Universal House of Justice, Haifa: Bahá’í World Centre, 1986, p. 50.
> Ibid. p. 37.
> Economics and the Bahá’í Faith
> 
> already handicaps [a part of] the human population (emphasis
> added).’ 80 Looking back in history, women were deemed
> incapable - culturally and religiously, and did not have fair
> opportunity to be educated or to participate in the decision
> making of the social and economic life of the family and the
> community, even though they carried a lot of the
> responsibilities. ‘Abdu’l-Bahá confirmed: ‘Woman’s lack of
> progress and proficiency has been due to her need of equal
> education and opportunity. Had she been allowed this
> equality, there is no doubt she would be the counterpart of
> man in ability and capacity.’81
> 
> The global gender gap remains a matter of concern for those
> agencies working for its removal, including the Bahá’í
> International Community, who are working toward ensuring
> the same opportunity for women. It should be noted that
> ‘Abdu’l-Bahá expressed His views on equal opportunity
> more than one hundred years ago, and since then the
> opportunities for women have significantly improved in the
> Bahá’í community, as well as globally. The role of Grameen
> bank in Bangladesh is significant in enabling seven million
> women to participate in economic activities. This
> participation not only has helped improving standards of
> living, but also improving the macroeconomic condition of
> the country by lowering unemployment and increasing
> economic growth. Economic resources are both human and
> physical. Women participation in the economy protects
> economic resources. Economic efficiency compels effective
> allocation of resources, and women, as an economic resource,
> cannot be excluded from this formula. Bahá’í women are
> actively involved in the development of community building.
> 
> Arthur Dahl. The eco, Oxford: George Ronald, 1996, pp. 125-126.
> ‘Abdu’l-Bahá. Promulgation, p.182.
> Sustainable Production
> 
> The fact that both women and men equally participate in the
> consultative process accustoms them to solving problems
> collabouratively. Through this collaboration an appropriate
> attitude is formed in relation to the equal status of women.
> Through membership of the Bahá’í community, men learn
> that, ‘... when women become fully incorporated into the life
> of the community, everyone benefits.’82
> 
> In theory, we may assume that when women, half the
> population of the world, hold the same opportunities as men,
> human capacity and resources increases and production
> multiplies. However, in practice, there are other factors,
> which has contributed in increasing the level of goods and
> service, and food production in particular. The role of
> advanced technology, innovation, know-how, necessary
> capital, good governance, and efficient use of land cannot be
> ignored in relation to food production. The practice of equal
> opportunity for women and men is a significant factor in
> correcting ‘labour market failure’ including the removal of
> barriers to increasing production levels. John Huddleston
> considers equality of opportunity ‘as an essential part of a
> just society.’83 In a study of ‘global gender gap’, the World
> economic forum, 2005, named the following five areas
> necessary for improving the condition of women: economic
> opportunity, economic participation, political empowerment,
> educational attainment, and health and well-being.
> 
> It is important to note that in the more developed countries
> the principle of equal opportunity is practiced more
> effectively. For example, women are relatively more active in
> 
> Bahá’í International Community. Statement on ‘The role of Women in
> Commerce in the Caribbean’, 1988.
> John Huddleston. The Search for a Just Society, Oxford: George Ronald, 1989,
> p. xiv.
> Economics and the Bahá’í Faith
> 
> social, political and economic activities than countries
> without the same privileges. However, it may be difficult for
> all women, including Bahá’ís, to actively participate in social
> and economic development if their government or the law of
> the land does not permit equal opportunity.
> 
> A factor closely related to gender gap, and a barrier to
> increasing the supply of labour, is the existence of
> discrimination, in particular wage discrimination. Wage
> discrimination exists because there are less demands for a
> particular group of people, in this case the women. In relation
> to our current discussion, it is where employers undervalue
> the services of female workers. Discrimination is also
> prevalent in other areas such as race, colour and nationality,
> although, it is illegal in most developed countries.
> Discrimination results in an inefficient allocation of resources
> and inequitable wage differences. One of its costs is that the
> group discriminated against clearly suffers as they find it
> harder to gain employment and are likely to be paid less than
> other workers doing the same work. In addition, some may
> have to settle for jobs that do not utilise their talents and
> skills, may be overlooked for promotion, and may not be
> selected to go on training courses. The economy also suffers,
> as a result of discrimination because it leads to misallocation
> of resources. To avoid misallocation of resources, the factors
> of production such as land, labour, capital and enterprise,
> should be allocated and used in the right proportion to
> maximise output with the available resources. There is
> growing interest in the view that underdevelopment may not
> just be a matter of lack of, or shortage of factors of
> production but also a consequence of discrimination and the
> misuse of, available resources. Tai Hsieh and Peter Klenow
> have argued that ‘misallocation of inputs across firms can
> 
> Sustainable Production
> 
> reduce aggregate total factor productivity in a country.’ 84
> Banerjee and Duflo emphasise the importance of resource
> misallocation in understanding the differences across
> countries of the total level of manufacturing output, and
> based on evidence suggesting that ‘gaps in marginal products
> of capital in India could play a large role in India’s low
> manufacturing relative to that of the United States.’ 85 The
> effective output would be below the potential output which
> could be achieved if groups were not discriminated against in
> terms of employment, pay, promotion and training. The
> experience in countries that have been relatively successful in
> implementing equal opportunity indicates that the role of
> government is a necessary factor.
> 
> Studies have found that where women’s share of income
> within the home is relatively high and there is less
> discrimination against girls, women are better able to meet
> their own needs as well as those of their children. Supporting
> this point, Todaro and Smith writes:
> When household income is marginal, virtually 100%
> of women’s income is contributed towards household
> nutritional intake. Since this fraction is considerably
> smaller for men, a rise in male earnings leads to a less
> than proportional in the funds available for the
> provision of daily needs. It is thus unsurprising that
> programmes designed to increase nutrition and family
> health are more effective when targeting women than
> when targeting men.86
> 
> Therefore, the persistence of low standards of living among
> Tai Hsieh and Peter Klenow. ‘Misallocation and Manufacturing Total Factor
> Productivity,’ The Quarterly Journal of Economics, Vol. CXXIV, no. 4,
> November 2009, pp. 1403-1448, at p. 1443.
> Abhijit Banerjee and Esther Duflo. ‘Growth Theory through the Lens of
> Development Economics,’ Handbook of Economic Growth, Vol. 1a, Amsterdam:
> Elsevier, 2005, pp. 473-552, at p. 477.
> Michael Todaro and Stephen Smith. Economic Development, 9th ed., London:
> Pearson Education Ltd., 2006, p. 229.
> Economics and the Bahá’í Faith
> 
> women and children is common where the economic status of
> women remains low.
> 
> Todaro and Smith raise a legitimate question: Why is female
> education important? There now exists ample empirical
> evidence that educational discrimination against women not
> only reinforces social inequality but also hinders economic
> development. Investigating this, Todaro and Smith argues
> that closing the educational gender gap by expanding
> educational opportunities for women, is economically
> desirable for a number of reasons: I. It increases their
> productivity on the farm and in the factory and results in
> greater labour force participation. II. It improves child health
> and nutrition, as more educated mothers lead to multiplier
> effects 87 on the quality of a nation’s human resources for
> many generations to come. III. Because women carry a
> disproportionate burden of the poverty, any significant
> improvements in their role and status via education can have
> an important impact on breaking the vicious circle of poverty.
> 
> 3.5.4 Importance of education and training
> There is a close connection between poverty and low
> educational attainment. Many poor countries are not able to
> afford to provide adequate state education. Many families
> cannot afford to send their children to school even if
> education is free. This is because they need children to work,
> either on their farms or as child labourers working for local
> businesses. Only by securing an income from their children
> can these families survive. Moreover, the local economy
> 
> For the concept of ‘multiplier effect’ see: Begg, Fischer and Dornbusch.
> Economics, p. 375. (The concept is developed by Keynes and states that if one of
> the components of aggregate demand such as investment on training and
> education increase, the national income will increase by a multiple of the original
> increase.)
> Sustainable Production
> 
> often cannot provide jobs suitable for reasonably educated
> children. There is then little incentive for families to educate
> their children for the local job market.
> 
> Two strategic solution in dealing with children and in
> particular child labour in less developed countries would be
> the expansion of part-time employment opportunities to avoid
> poverty in the family, and arrangements for an ideal and
> supportive facilities for schooling. The provision of the right
> type of education and training has proved to be the most
> effective way of a prosperous society by revealing the human
> potential, improving the scale of productivity and increasing
> the level of production. Absence or shortage of it, can be a
> major barrier in the supply of necessary workforce in the
> labour market. The Bahá’í principle of universal and
> compulsory education is an effective way of dealing with
> such deficiency.
> 
> Education and training are vital key in increasing production
> level and is conducive to personal growth and transformation
> of society. The Bahá’í Writings indicate that humans have
> great potential that needs to be discovered. Bahá’u’lláh states:
> ‘Man is a supreme talisman. Lack of a proper education hath,
> however, deprived him of that which he doth inherently
> possess...Regard man as a mine rich in gems of inestimable
> value. Education can, alone, cause it to reveal its treasures,
> and enable mankind to benefit therefrom.’ 88 Businesses
> recognise that investing in education and training is necessary
> to reveal the human treasure, which is the human talent,
> potential, and proficiency. The World Bank has done a
> comprehensive study, which shows that investing more on
> education and training has a direct impact on improving
> 
> Bahá’u’lláh. Gleanings, p. 260.
> Economics and the Bahá’í Faith
> 
> economic performance. The findings show that the
> profitability of investment in education is an attractive
> opportunity in the world today.89 Also, A research has been
> done by the Nobel Prize Laureate in economic science, James
> Heckman and his team based on a 40-year empirical study of
> the High/Scope Perry Preschool Program. The authors of the
> research present a careful economic case to justify if there is
> a positive return on the investment in early intervention
> schemes to facilitate social mobility. The authors of the
> research calculate the social rate of return based on
> subsequent differences between the early intervention from
> the High/Scope Perry Preschool Program, that include long
> term costs and benefits of education, crime, earnings, and
> welfare. Their conclusion is that the economic return to
> expanding investment in early intervention for disadvantaged
> children would produce annual social rates of return between
> 7 and 10%, about 2% higher than the equity market between
> the end of World War II and 2008.90 Heckman’s research has
> given policymakers important new insights into such areas as
> education, job-training programs, minimum-wage legislation,
> anti-discrimination law, social supports and civil rights.
> Hence, investment in education has the potential to increase
> the total supply of skilled labour force and improve the
> employment prospects of unemployed workers. Of course,
> the economic returns from extra investment in education can
> vary, according to the stage of economic development that a
> country has achieved and the amount invested in training and
> education, and also the type of education required in the
> labour market.
> 
> See also: George Psacharopoulos. ‘Returns to Investment in Education: A
> Global Update,’ World Development Journal, vol. 22, no. 9, 1994, pp. 1325-l343,
> at p. 1325.
> For James Heckman study see: <https://heckmanequation.org/resource/research-
> summary-perry-preschool-and-character-skill-development/>
> 
> Sustainable Production
> 
> Although the responsibility for the education of children lies
> with both parents, and despite men increasingly taking a
> more active role, the mother still takes on the primary
> responsibility for educating the child from its infancy in the
> majority of cases. This, however, that they might not be able
> to take advantage of equal opportunities. Although in Europe
> and North America most mothers are eager to train their
> children and pay a great deal of attention to this important
> matter. In many other parts of the world, women may not be
> able to do so because of not having the opportunity to receive
> relevant education and training themselves or having access
> to material resources. Clearly, those women who are getting
> financial assistance in the form of loan from the Grameen
> Bank are able to provide better education for their children.91
> The Bahá’í Faith emphasises that all children should be
> educated. However, if in some circumstances parents only
> have the financial ability to educate one child, preference
> must be given to the education of girls because they are the
> future mothers and educators of children. Universal House of
> Justice states:
> The decision-making agencies involved would do well
> to consider giving first priority to the education of
> women and girls, since it is through educated mothers
> that the benefits of knowledge can be most effectively
> and rapidly diffused throughout society.92
> 
> This is significant because through an educated mother, a
> better and healthier environment is created at home for the
> education of children. Commenting on this, Madeline
> Hellaby writes:
> 
> Muhammed Yunus (Banker of the Poor). Creating a World Without Poverty:
> Social Business and the Future of Capitalism, New York: Public Affairs Ltd.,
> 2007, pp. 125-127.
> Universal House of Justice. The Promise of World Peace, Haifa: Bahá’í World
> Centre Publication, 1985, part II.
> Economics and the Bahá’í Faith
> 
> To give preference to girls in families where the
> financial situation is such that choice has to be made
> is quite the opposite of all traditional thinking. To
> most people, even today, this is hard to swallow in
> practice, although they may see the sense of it in
> theory; but anyone who works in the social services
> will know that maternal deprivation is one of the root
> causes of family problems.93
> 
> The view is therefore, that if mothers are educated and
> possess the learning and accomplishments of humankind, her
> children, as ‘Abdu’l-Bahá points out are ‘like unto angels,
> will be fostered in all excellence.’94
> 
> 3.5.5 Consultative method of decision-making
> Leaders and organizations that are using a democratic and
> consultative method of decision-making become more
> successful in achieving objectives and attracting better
> workers to the workplace. According to an investigation by
> Matthew Hind and introducing a new development program
> to help quality professionals with the process of managing
> change within organization. According to him:
> The role of quality managers has changed
> significantly…They are no longer controllers and
> policemen but need to become change agents and
> influencers. The role has become that of an internal
> consultant, aiming to bring about change in a positive
> manner supported by all within the company.95
> 
> Hind then focuses on the benefits of making decisions
> through a consultative method and writes:
> This method is focused on helping quality managers
> to develop the skills and competences necessary to
> 
> Madeline Hellaby. Education in the Bahá’í Family, Oxford: George Ronald,
> 1987, p. 14.
> ‘Abdu’l-Bahá. Quoted in Bahá’í Education, p. 47.
> Matthew Hind. ‘Consulting for Positive Change’, Training for Quality Journal,
> vol. 2, no. 3, 1994, pp. 26-27, at p. 26.
> Sustainable Production
> 
> carry out this role of internal consultant successfully.
> Its key objective is to develop the quality
> professional’s consulting skills to help them in the
> implementation of general change programs and in
> particular, their own organization’s quality
> management…Participation through consultation
> provides an opportunity for employees to think
> constructively about issues that affect them, to
> contribute ideas for improvement, to engage in
> problem solving, and to work as a team in
> implementing good work practices. Morally and
> humanely and perhaps economically, workers are
> entitled to be aware of and be involved in activities
> that affect their lives, within and outside the
> workplace. These are motivational factors that make
> workers productive. Through a consultative method of
> decision-making workers find a sense of belonging to
> the organization, which improves productivity and
> consequently the output. The benefits of such
> involvement are substantial. Employees will value the
> fact that their employer recognizes their needs and
> satisfactorily rewards their efforts. In turn, the
> employer can significantly increase profitability by
> retaining experienced, motivated and productive staff.
> Apart from these ideas and advantages of
> consultation, Hind identifies the following seven
> benefits: clarity and confidence in the product or
> service being provided; trusting and sound
> relationship between client and consultant; shared
> diagnosis of the need to change; shared ownership of
> the design of the program; willingness of both parties
> to adjust and modify plans; avoidance of quick fixes
> by both parties; and finishing the program when the
> organization has stabilized and not before.96
> 
> But, what are the fundamentals of the Bahá’í model of
> decision-making or ‘consultation’? For a collective decision
> making the following two conditions are suggested by
> 
> Ibid. pp. 26-27.
> Economics and the Bahá’í Faith
> 
> ‘Abdu’l-Bahá. ‘The first condition is absolute love and
> harmony amongst the members of the assembly…The second
> condition: They must when coming together turn faces to the
> Kingdom on High and ask from the Realm of Glory.’ 97
> Immediately after the two conditions, He gives five rules of
> procedure for consultation, ‘The must then proceed with
> utmost devotion, courtesy, dignity, care and moderation to
> express their views.’ 98 A fundamental principle of
> consultative process is the creation of strong trust among
> different groups of people in the community, which is ‘a
> prerequisite of any efforts to translate collective decisions
> into collective actions.’ 99 Another feature is that, ‘when an
> idea is put forth it becomes the property of the group.’100 The
> principle of detachment from one’s personal views is another
> feature of Bahá’í consultation. This means, ‘individual
> participants strive to become dispassionate with their
> respective points of view.’101 Bahá’ís consider the notion of
> detachment from one’s personal views as an important
> principle of consultation. For this rule, ‘all ideas cease to be
> the property of any individual, subgroup, or constituency.’102
> Of course, as commented by Bahá’í scholar Michael
> Karlberg, Bahá’ís recognise that the detachment prescribed
> above does not always come easily – even to those who are
> committed to it in theory.103 It is stated in the Bahá’í Writings
> that ‘Consultation is no easy skill to learn’ 104 . But
> commitment to the process, they suggest, results not only in
> ‘Abdu’l-Bahá. Quoted in Bahá’í Administration, p. 22.
> Ibid.
> Bahá’í International Community. ‘Equality in Political Participation’, statement
> presented at the commission on the status of women, New York: United Nations
> Office, 1990.
> Ibid. ‘Statement on Consultation,’ New York: United Nations Office, 1995.
> Ibid. Prosperity of humankind, 1995, p. 15.
> Ibid. ‘Statement of Consultation.’ New York: United Nations Office, 1995.
> Michael Karlberg. Beyond the Culture of Contents, Oxford: George Ronald,
> 2004, p. 140.
> Universal House of Justice. Wellspring of Guidance, p. 96.
> Sustainable Production
> 
> more effective collective decision-making but also in the
> maturation of individual participants, as well as whole
> community. Bahá’ís therefore, view consultation as ‘a
> learning process and they believe that the skills and attitudes
> developed through consultation are as important as the
> specific decisions arrived at.’105 Another principle of Bahá’í
> consultation is exercising care and moderation in one’s
> manner of expression. It is stated that ‘freedom of speech
> must necessarily be disciplined by a profound appreciation of
> both the positive and negative dimensions of freedom, on the
> one hand, and of speech, on the other hand.’ 106 This is
> necessary because it is only ‘within an atmosphere of mutual
> respect, support and encouragement, rather than aggression
> and intimidation, can clarity of thought prevail and the
> perspectives of all people be heard.’107 Another fundamental
> principle of Bahá’í consultation is the requirement that the
> context of decision-making itself be raised to the level of
> principle as distinct from political pragmatism. Commenting
> on the inordinate disparity between the rich and the poor,
> Universal House of Justice in The Promise of the World
> Peace states:
> The solution calls for the combined application of
> spiritual, moral and practical approaches. A fresh look
> at the problem is required, entailing consultation with
> experts from a wide spectrum of disciplines, devoid of
> economic and ideological polemics, and involving the
> people directly affected in the decisions that must
> urgently be made.108
> 
> Underlying all of these principles, according to a statement
> from the Bahá’í International Community, is the principle of
> justice. ‘A concern for justice is the indispensable compass in
> 
> Michael Karlberg. Beyond the Culture of Contents, p. 141.
> Universal House of Justice. ‘Individual Rights and Freedom,’ Para 24.
> Michael Karlberg. Beyond the Culture of Contents, P. 142.
> Universal House of Justice. The Promise of World Peace, part II.
> Economics and the Bahá’í Faith
> 
> collective decision-making, because it is the only means by
> which unity of thought and action can be achieved. Far from
> encouraging the punitive spirit that has often masqueraded
> under its name in past ages, justice is the practical expression
> of awareness that, in the achievement of human progress, the
> interest of the individual and those of society are inextricably
> linked. To the extent that justice becomes a guiding concern
> of human interaction, a consultative climate is encouraged
> that permits options to be examined dispassionately and
> appropriate of action selected. In such a climate the perennial
> tendencies towards manipulation and partisanship are far less
> likely to deflect the decision-making process…in this
> context, justice is a thread that must be woven into the
> consideration of every interaction, whether in the family, the
> neighbourhood, or at the global level.’109 For the practice of
> the method of consultation, Bahá’í International Community
> confirms that while the method is used for guiding the affairs
> of Bahá’í communities on the local, national and international
> levels, it is also used in Bahá’í–initiated social and economic
> development projects, in Bahá’í-operated schools, in Bahá’í–
> owned businesses and in the day-to-day decision making of
> Bahá’í families.
> 
> It can be argued that the application of consultation in the
> ‘new economy,’ in contrast to the ‘old economy,’110 with an
> emphasis on the contribution of innovation and information
> technology in creating e-commerce, makes communication
> and decision-making more effective, particularly among
> internal stakeholders. Internal stakeholders are defined as
> those people whose activities are a part of, or influence, the
> 
> Bahá’í International Community. Turning Point for all Nations, pp12-13.
> Andrew Griffiths and Damian Hine. ‘Sustainability of the new economy,’
> Journal of International Management and Decision Making, vol. 4, no. 2, 2003,
> pp. 230 – 239.
> Sustainable Production
> 
> internal value chain of the firm. 111 In the ‘new economy,’
> though, socially responsible policies ought not to conflict
> with economic goals and should be integrated into the
> decision-making process.
> 
> The principle of consultation has been criticized for resulting
> in slow making, and not being effective during emergency
> time, which require a decision to be made quickly. Also,
> group decision-making, as John Bratton argues ‘might allow
> individual members to escape responsibility and to encourage
> groupthink.’112 However, as consultative methods of decision-
> making become the norm and a part of the culture of an
> organization, all members become accustomed to the
> technique of making decisions collectively. Alternatively,
> leaders may, in the short run, adopt a combination of intuition
> and consultation for making decisions.
> 
> 3.5.6 Employee-employer relationship
> The conventional method used in the past to deal with issues
> related to employer-employee relationships, was through
> trade union negotiations. In the case of a failure to reach a
> particular settlement, such as in wage negotiation, industrial
> action, including strike, was endorsed. The Bahá’í literatures
> support a fair wage system, but using strike action as a means
> of dealing with industrial disputes over wage is not
> supported. For ‘Abdu’l-Bahá there are two possible causes of
> strike. ‘One is the excessive greed and rapacity of the factory
> owners, and the other is the gratuitous demands, the greed,
> and the intransigence of the workers. One must therefore seek
> 
> Jaseem Ahmad, Nicholas O’Regan and Abby Ghobadian. ‘Leadership,
> decision making and internal stakeholder engagement,’ Journal of International
> Management and Decision Making, vol. 6, no. 3, 2005, pp. 345 – 358.
> David Buchanan and Andrzej Huczynski. Organizational Behaviour, 7th ed.,
> Essex: Pearson Education, 2010, p. 416.
> Economics and the Bahá’í Faith
> 
> to address both.’113 According to ‘Abdu’l-Bahá the ‘principle
> cause’ 114 is the current laws, which may ‘Lead to a small
> number of individuals accumulating incomparable fortunes,
> beyond their needs, while the greater number remain
> destitute, stripped and in the greatest misery.’ 115 It is
> therefore reasonable that while the law allows injustices in
> wages and working conditions, the labour force may not have
> any other means of standing up for what may be rightfully
> theirs.
> 
> In some countries, such as the United Kingdom, the
> popularity of union membership, as a proportion of the total
> labour force, has fallen in recent years.116 For further analysis
> it is necessary to look at the main reasons for the formation of
> trade unions, which include: wage negotiation with the owner
> of a factory, improvement of working conditions, provision
> of necessary training, and other activities, such as organising
> of strikes to force the owner of the factory to accept their
> demands. The causes for such a decline in its popularity are
> many. One is that governments have passed new laws for a
> fair pay system, such as ‘national minimum wage
> legislation.’ 117 The policy of establishing regulations to
> increase the earnings of the under-paid is supported by the
> Bahá’í Writings. ‘Abdu’l-Bahá affirms:
> Laws and regulations should be enacted which would
> grant the workers both a daily wage and a share in a
> fourth or fifth of the profits of the factory in
> accordance with its means, or which would have the
> ‘Abdu’l-Bahá. Some Answered Questions, P. 315.
> Ibid.
> Ibid.
> Trade union membership in the Great Britain has declined from 13.5 million in
> 1975 to 7.5 million in 2002.
> John Beardshaw. Economics, A Student Guide, London: Prentice Hall, 2001,
> P. 362. (‘National Minimum Wage’ is a statutory minimum wage introduced to
> boost the earnings of the low paid, such as the one introduced in the United
> Kingdom.)
> Sustainable Production
> 
> workers equitably share in some other way in the
> profits with the owners.118
> 
> In this passage, ‘Abdu’l-Bahá consider a fair wage system
> which is more than just a minimum wage, it is a living-wage.
> In other words, it is the minimum income necessary for a
> worker to meet their needs that are considered to be basic. He
> suggests that workers be paid part of the company’s profits.
> Other factors that reduce the need for Trade Unions are that
> the government and employers support and provide training
> programmes for workers, and a democratic and consultative
> approach to decision-making is adopted by increasing
> number of organizations for negotiations and problem
> solving. The direct participation of workers in the working
> environment creates a sense of belonging. Such an approach
> in dealing with problems in the workplace does not require
> trade union involvement. Globalization can also play an
> important role in the decline of trade union power. If workers
> are not satisfied with the working conditions or wages, they
> have the possibility to move to another company and even to
> another country. Geographical mobility of labour is easier
> now and takes place mainly at the regional level, such as
> within the European Union.
> 
> 3.5.7 Cooperation instead of competition
> In the sphere of private or personal relations, Karlberg argues
> that much of human interaction has been, and continues to be,
> relatively cooperative and mutualistic. According to him ‘the
> historical process of nation building, the emergence of
> democratic systems of government and the establishment of
> the rule of law within these nations all reflect degrees of
> mutualism and cooperation expressed on historically
> 
> ‘Abdu’l-Bahá. Some Answered Questions, p. 317.
> Economics and the Bahá’í Faith
> 
> unprecedented scale.’ 119 Further, he points out that many
> traditional non-western, civilisations have placed a strong
> value on harmony and collective interdependence rather than
> on conflict and competitive individualism. Such cooperative
> and mutualistic attitudes have, in turn, supported the
> development of sophisticated arts, sciences and technologies,
> as well as complex and extensive systems of public
> administration.
> 
> A number of economists and philosophers have shown
> interest in the subject of cooperation. For John Rawls, the
> term cooperation is in relation to fair distributions of primary
> goods – those resources that are necessary for the pursuit of
> one’s rational life plan. The choice and ranking of primary
> goods according to him coop ‘requires a general account of
> rational plans of life – an account that shows our lives
> depends on primary goods for their formation, revision, and
> execution.’120 This view suggests how important cooperation
> is in the fair distribution of resources for tackling problems
> linked with the issue of poverty. One aspect of cooperation in
> Bahá’í literature is therefore in relation to an effort to
> increase the utilisation of resources and their value through
> the coordination and organization of economic activities in
> the market. Shoghi Effendi states that these economic
> resources ‘will be organized, its sources of raw materials will
> be tapped and fully utilised.’121
> 
> In a free-market economy, competition plays an important
> role. Through competition businesses use resources more
> 
> Michael Karlberg. Beyond the Culture of Contents, p. 82.
> John Rawls. ‘Social Unity and Primary Goods’, published in Utilitarianism and
> beyond, eds. Amartya Sen and Bernard Williams, Cambridge: Cambridge
> University Press, 1982, pp. 159-185, p. 160.
> Shoghi Effendi. World Order, p. 204.
> Sustainable Production
> 
> efficiently and, as a result, there is less wastage. Also, with
> competition businesses produce better quality goods and
> services to attract more customers. Thus, in theory,
> consumers benefit from both lower prices and better quality.
> However, in practice, through aggressive or relentless
> competition and an uncontrolled market, small and
> vulnerable businesses are destroyed and eventually exit the
> market. This behaviour in the market leads to the creation of
> monopolies and larger organizations. The result would be
> higher prices, lower quality, waste of resources, fewer
> choices for consumers, and control of the market. More
> seriously, in a global market condition, if one of these large
> companies fails, the entire market could suffer. William
> Hatcher and Douglas Martin explain that ‘One of the main
> causes of economic injustice in the world today is aggressive
> competition, which results in waste of scarce resources…
> This can be done only if cooperation replaces competition’122
> ‘Abdu’l-Bahá explained that even a single enterprise should
> adopt cooperation by reflecting on the essential partnership of
> workers and owners. He specifically mentions that apart from
> the wage, workers must receive a portion of the profit.
> Workers will be much more motivated and cooperative when
> they are partners rather than just wage earners.123
> 
> Relentless competition without government regulation may
> lead to greater organizational domination in the market,
> which, in turn, may lead to the removal of smaller firms,
> causing unemployment. For example, how can small family
> businesses operate and survive when there are large
> multinational companies, with the advantage of lower costs in
> the developing countries from where they operate? Or, how
> 
> William Hatcher and Douglas Martin. The Bahá’í Faith, p. 91.
> See: Abdu’l-Bahá. Some Answered Questions, pp. 315-320.
> Economics and the Bahá’í Faith
> 
> can family businesses with no information technology and
> capital investment, survive while transnational companies are
> equipped with the most advanced operational techniques?
> Small firms and family businesses are an important source of
> employment everywhere and will continue facing enormous
> challenges in competition with multinational corporations,
> unless these small firms can create their own unique markets
> and products that are distinguishable. The Bahá’í principles
> of moderation in all aspects of life, including a
> moderate-sized business, will be of great advantage to small
> businesses. Consumer education also helps to support small
> firms. In 1936 Shoghi Effendi said that the market must be
> regulated. A number of countries, such as the United
> Kingdom and other members of the European Union, have
> formed organizations such as the Competition Commission,
> to regulate the market in favour of consumer benefits and
> protect small businesses. Although it can be argued that these
> regulatory bodies may not be that effective because of
> individual national government agendas.
> 
> The argument in favour of cooperation in the Bahá’í Writings
> goes beyond the scope of the market and the economy. The
> Writings emphasise that cooperation and not competition is
> the cause of social activities just as the life of an organism is
> maintained by cooperation of the various elements of which it
> is composed. ‘Abdu’l-Bahá explains:
> The base of life…is this mutual aid and helpfulness,
> and the cause of destruction and non-existence would
> be the interruption of this mutual assistance. The more
> the world aspires to civilisation the more this
> important matter of cooperation becomes manifest.124
> 
> Farhad Rassekh stresses the moral aspect of cooperation and
> 
> ‘Abdu’l-Bahá. Bahá’í World, vol. 3, p. 154.
> Sustainable Production
> 
> believes that competition, like other aspects of the market,
> may be conducted morally or immorally. He argues that
> competing for ‘customer service, quality improvement and
> innovative products are beneficial, while deceptive and
> restrictive practices are hurtful to society.’125 He, then refers
> to false advertising as an example of ‘deceptive practice and
> lobbying the government to control imports as an example of
> restrictive practice.’126
> 
> In the analysis of the importance of cooperation,
> consideration should be given to the function of science and
> information technology in influencing the practicality of
> cooperation and reducing costs, due to coordinating
> economic activities. The challenge, however, is that in the
> new forms of organizational structure, the workforce must be
> trained to understand the fundamental dynamics of
> cooperation in order to evaluate their industrial relationships.
> Success depends on cooperation and willingness among the
> owners, managers, consumers, suppliers, and the government.
> 
> In spite of the drawbacks of competition, the Bahá’í Writings
> support competition if ‘any benefits arising from
> praiseworthy deeds shall fall to the individuals that compete
> with each other in benevolent works.’127 It can be interpreted
> that competition is therefore acceptable in those activities
> such as education and service to humanity. Bahá’ís are
> counselled to ‘Vie…with each other in the service of God
> and of his Cause.’ 128 Shoghi Effendi was ‘grieved to hear
> 
> Farhad Rassekh. ‘The Bahá’í Faith and the Market Economy’, Journal of
> Bahá’í Studies, Association for Bahá’í Studies for North America, vol.11, p. 3,
> 2001.
> Ibid. p. 4.
> Bahá’u’lláh. Quoted in Huququ’lláh, p. 13.
> Ibid., Quoted in Shoghi Effendi, Advent, p. 83.
> Economics and the Bahá’í Faith
> 
> bitter competition’129 between some Bahá’ís, and he advised
> them ‘to maintain unreservedly the one true standard of
> business conduct inculcated in the teachings [of the Faith]
> (emphasis added).’130
> 
> 3.6     Chapter conclusion
> This chapter has assessed and examined some of the key
> Bahá’í principles related to ‘work ethics’ and ‘sustainable
> production’, and their impact on the economic life of Bahá’ís,
> the Bahá’í community and the wider society. An attempt has
> been made to discuss and define two key expressions of
> ‘work ethics’ and ‘sustainable production’. A distinctive
> principle, and a core Bahá’í belief, discussed in this chapter is
> the concept of ‘work as worship’. It was noted that although
> this concept is a core Bahá’í belief, the idea is not new and
> has been mentioned by others and written in the history of
> work ethics. Bahá’ís hold the view that work is necessary for
> material and spiritual progress. However, work is worship
> when it is performed in the spirit of service. This means that
> even in this age of abundance, (for some people) service to
> others as a moral obligation needs to be stressed. I considered
> several principles under the heading of ‘Bahá’í work ethics’,
> including a consultative or democratic method of decision-
> making, profit sharing, gender equality, and considering work
> as worship. These are few examples needed for accelerating
> the process of increasing the supply of labour in the market.
> Another key Bahá’í view discussed in this chapter is that
> Bahá’ís are obliged to pursue a profession and actively seek
> work. This is a positive attitude that makes a Bahá’í a
> productive contributor to the whole of society. Any Bahá’í
> 
> Shoghi Effendi. Quoted in Trustworthiness, Compiled by the Research
> Department of the Universal House of Justice, Haifa: Bahá’í World Centre
> Publication, 1987, p. 16.
> Ibid.
> Sustainable Production
> 
> discussion on the subject of ‘work’ and occupation cannot
> overlook the importance of agriculture. Although there is
> great emphasis on both manufacturing and agricultures,
> ‘special regard’ is given to the matter of agriculture.
> 
> There are academic debates with regards to integrating work
> with other aspect of life such as the importance of family,
> education, skill learning, opportunity for employment, and
> wage differentials. The aim of this chapter was to provide a
> more clear and conscious interpretation of the concept of
> ‘work as worship’ stated in the Bahá’í primary Writings.
> 
> It is acknowledged that the advancement of technology and
> know-how has created a condition that people now have the
> capacity to produce enough for greater population. The
> challenge, however, is to ensure that this is happening and
> greater number of people can enjoy the outcome. The
> solution is to execute ‘distributive justice’. This aspect will
> be discussed in the next chapter.
> 
> Economics and the Bahá’í Faith
> 
> Chapter 4: Distributive Justice
> 
> If thine eyes be turned towards mercy, forsake the
> things that profit thee and cleave unto that which
> will profit mankind. And if thine eyes be turned
> towards justice, choose thou for thy neighbour
> that which thou choosest for thyself. 1
> Bahá’u’lláh
> 
> 4.1     Introduction
> The United Nations Charter of Human Rights considers
> having access to basic needs as human rights. However, this
> is only in theory because, in the modern times the wealth of
> nations has increased substantially, currently one billion
> people live in absolute poverty.2 The challenge, therefore, is
> not in the level of production and productivity, but in a fair
> and just distribution of the wealth created. Throughout the
> history of economics, the distribution of income and wealth
> among the members of society has been a major concern.
> There has not only been a desire to explain the pattern of
> distribution, but also a belief that basic issues of justice and
> fairness and morality were involved. Consequently, most of
> the theories of economic justice focus on distributive justice.
> Philosophers, historians and economists have been debating the
> concept of economic justice for so long. Although what
> constitutes justice may vary from time to time and from
> culture to culture, or depend on historical context, all forms
> of justice are founded on the basis of ethical assumptions that
> 
> Bahá’u’lláh. Tablets, p. 64.
> World Bank Report 2012.
> Distributive Justice
> 
> include ideas about morality, fairness, and the law. Issues
> related to extremes of wealth and poverty and the justification
> of principles of equity and equality have been raised and
> discussed by contemporary economists such as Amartya Sen,
> Thomas Piketty, John Rawls Michael Sandel, Kate Pickett
> and others. The role of government is also crucial in
> administering distributive justice to balance the economy and
> the Bahá’í literatures support such intervention.
> 
> The key feature of this chapter is to discuss the relationship
> between distributive justice and human well-being. The study
> includes discussing a number of principles that lead to
> prosperity for all members of society, advocated by the
> central figures of the Bahá’í Faith. The meaning and
> significance of wealth will also be explored, hence discussing
> the impact of distributive justice on the Bahá’í community
> and in the wider society.
> 
> The concept of distributive justice can be understood and
> discussed either at a microeconomic level as the moral
> assessment of individual and firms or at a macroeconomic
> level as the moral assessment of collective decisions for the
> whole economy.
> 
> 4.2     Significance of distributive justice
> Academic economist, Thomas Piketty, in his book Capital
> for the 21st Century states: ‘The distribution of wealth is one
> of today’s most widely discussed and controversial issues.’3
> Piketty is concerned about the long-term evolution of wealth.
> He raises questions such as do the dynamics of private capital
> accumulation inevitably lead to the concentration of wealth in
> 
> Thomas Piketty. Capital in the Twenty-First Century, London: The Belknap
> Press of Harvard University, 2014, p. 1.
> Economics and the Bahá’í Faith
> 
> ever fewer hands? This aspect of wealth redistribution and its
> accumulation in the hands of few was what Karl Marx was
> also concerned with in the 19th century. Piketty wondered if
> the balancing forces of growth, competition and
> technological progress would lead to reduced inequality and
> greater harmony among the classes in the latter stages of
> development? This feature of wealth redistribution created
> interest and was discussed by economist Simon Kuznets4 in
> the 20th century.
> 
> According to Bryan Graham ‘The exploration of the Bahá’í
> teachings on economics has occupied an important place in
> the redistribution of income and wealth, which in return has
> an important effect on the Bahá’í community.’5 The Bahá’í
> concept of well-being in relation to distributive justice needs
> to be explored. In the Bahá’í literature, the notion of well-
> being and prosperity has been shifted from individual to
> collective well-being. There are numerous references
> confirming this view. For example, ‘Abdu’l-Bahá states
> ‘prefer the general well-being to your personal well-being.’6
> How challenging is the notion of preferring the well-being of
> others to one’s own comfort and happiness? So far, limited
> research has been done in this regard, but there are numerous
> examples of charitable work and philanthropist activities by
> people, poor and rich, sacrificing their own comfort to bring
> comfort to the lives of others. There is a positive correlation a
> between willingness to sacrifice one’s own material well-
> being and distributive justice. The more people contribute
> 
> Simon Smith Kuznets suggested a measure of income inequality that can be
> derived from the ratio of the incomes received by the top 20% and bottom 40% of
> the population. The ration is used as a measure of the degree of inequality
> between high and low-income group in a country (See: Todaro and Smith, p. 196).
> Bryan Graham. ‘The Bahá’í Faith and Economics: A Review and Synthesis,’
> Bahá’í Studies Review, vol.7, 1997, pp. 1-10, at p. 1.
> ‘Abdu’l-Bahá. Divine Philosophy, p. 111.
> Distributive Justice
> 
> sacrificially, the more effective is distributive justice, and
> hence in the long run there may be less government
> involvement in conducting wealth redistribution. However,
> the subject of distributive justice has been given much
> attention by governments and it is implemented relatively
> better in developed than in developing countries. There are
> several reasons for this difference, for example, more
> availability of resources, higher quantity and quality of
> education, more wealth creation, more opportunities for
> women to participate in economic activities, and more
> emphasis on order and discipline in public institutions. It
> seems the best possible way would be a combination of
> human consciousness and government participation for
> conducting wealth distribution in the society.
> 
> In one of his Writings, Shoghi Effendi interpret the term
> ‘sacrificially’, he writes, ‘For after all it is not so much the
> quantity of one’s offerings that mattes, but rather the measure
> of deprivation that such offerings entail.’ 7 In its simplest
> terms, giving sacrificially means giving so that it hurts.
> Putting another way, if one donates an amount that the person
> does not really miss, it may be giving, but it is not a sacrifice.
> 
> Economics and religion agree that redistribution of income
> and wealth is necessary and desirable. Religion is more a
> general term, but in theory, taking care of the poor is
> encouraged in all Faiths. For example, in the Jewish tradition
> wealth redistribution includes compassion for those who
> could not help themselves, care for the stranger, and charity.8
> 
> Shoghi Effendi. Quoted in Life Blood of the Cause, a Compilation, Haifa: Bahá’í
> World Centre, 1970. p. 10.
> For a discussion of redistribution of wealth in Judaism see: Jill Jacobs and
> Simon Greer. There Shall Be No Needy: Pursuing Social Justice through Jewish
> Law and Traditions, VT: Jewish Lights Publishing, 2009, p. 142.
> Economics and the Bahá’í Faith
> 
> The Christian tradition of redistribution of income and wealth
> dealing with poverty is the parable of the ‘Good Samaritan,’
> which is helping the stranger, sharing of resources, loving the
> enemy, supporting and healing, security for all, getting the
> poor back on his or her feet, and being fully integrated in the
> life of those in need. 9 Similarly, the Islamic tradition of
> dealing with the issue of poverty through income and wealth
> redistribution includes the basic principles of sharing, the law
> of Zakát (Zakáh), sincere spirit of generosity, and Islamic
> finance, which is the rejection of interest on borrowing.10 The
> spirit of the parable of the Good Samaritan in Christianity
> and Zakát in Islam are examples of religious duty with deep
> spiritual implications and is therefore a form of worship. In
> the Bahá’í scriptures the rich are given the responsibility of
> taking care of the poor. Addressing the rich, the founder of
> this Faith states, ‘O ye rich ones on earth! The poor in your
> midst are My trust, guard ye My trust, and be not intent only
> on your own ease.’11 In this passage the rich are directed to
> take care of the poor. It requires a great amount of material
> sacrifice and spiritual enrichment to guard the poor.
> However, directing the wealthy Bahá’ís does not exclude the
> poor from taking responsibility for their own lives. For
> example, Shoghi Effendi states that ‘Every individual, no
> matter how handicapped and limited he may be, is under the
> obligation of engaging in some work or profession.’ 12 The
> term handicapped may raise a question as to how one would
> expect a handicapped person to work and whether this refers
> 
> For an in-depth discussion of redistribution of wealth in Christianity see: Max
> Stackhouse. ‘Economic Justice: Stewardship of Creation in Human Community,’
> On Moral Business, New York: Eerdmans Publication, 1995, pp. 430-434.
> For a discussion of Zakát and redistribution of wealth in Islam see: William
> Shepard, Introducing Islam, London: Routledge Taylor and Francis Group, 2009,
> pp. 90-91. Also see: Saeed Javaid, Islam and Modernisation, London: Westport
> Connectticut, 1994, p. 58 and p. 102.
> Bahá’u’lláh. Hidden Words (from Persian translation), no. 54.
> Shoghi Effend. Directives, p. 47.
> Distributive Justice
> 
> to someone with physical or mental disability. No further
> explanation is found in the Bahá’í Writings of the exact
> nature of the term handicapped. However, it may be argued
> that the effectiveness of the use of a disabled person to work
> depends on the availability of social and medical services
> along with technological advancement to support such people
> to be engaged in some kind of work they can do. In
> developing countries, more attention is paid to ensure people
> with physical and mental disabilities receive appropriate
> support to engage in some form of profession, which
> improves their sense of well-being, as well as allows them to
> be me productive members of the society.
> 
> Andrew Crane and Dirk Matten define justice as ‘The
> simultaneously fair treatment of individuals in a given
> situation with the result that everybody gets what they
> deserve.’13 The crucial ethical issue with this definition is the
> question of what exactly ‘fairness’ means and by what
> standards we can decide what a person might reasonably
> deserve. According to Beauchamp and Bowie, theories of
> justice typically see fairness in two main ways. First, fair
> procedure, which is determined according to whether
> everyone has had an equal opportunity to achieve what is
> needed for a just reward for one’s efforts (procedural justice).
> Second, fair outcomes, which are determined according to
> whether the consequences are distributed in a just manner
> (distributive justice).14
> 
> Bahá’í scholar Udo Schaefer defines distributive justice as a
> pattern that ‘regulates the distribution of goods, benefits and
> 
> Andrew Crane and Dirk Matten. Business ethics, p. 92.
> Beauchamp and Bowie. ‘Ethical theory of Business’, Journal of Business
> Ethics, vol. 7, no. 11, November 1988, pp. 846-860.
> Economics and the Bahá’í Faith
> 
> burdens in the sharing of the common good.’ 15 Existing
> economic systems, such as ‘the free-market economy’ and
> ‘planned economy’, have adopted a different pattern of
> regulating a just distribution of income and wealth in an
> economy. The first one is called ‘commutative justice’ 16 ,
> where it is held that each person should receive income in
> proportion to the value of labour and capital they have
> contributed to the productive process. According to Alan
> Griffiths and Stuart Wall, this view underlies the ideology of
> the free-market economy. The second view is called
> ‘distributive justice’. In this view, it is believed that people
> should receive income according to their need. Given that
> people’s needs are much the same, ‘distributive justice’ 17 ,
> according to Griffiths and Wall, implies approximate equality
> in income distribution. This view underlies the ideology of
> socialism. In the Bahá’í Writings, the advantages of both
> systems are considered for effective wealth redistribution.
> For example, there are references that both private and public
> sectors play an important role in the pattern of regulating an
> economy’s resources. Hence, a distinguishing factor
> separating the two systems of ‘planned’ and ‘free-market
> economy’ is the judgement of government in the distribution
> of resources among its citizens.
> 
> Is social justice about equality or equity? It can be argued that
> the goal of social justice is for people to be equal. Richard
> Wilkinson and Kate Pickett argue that ‘more equal societies
> tend to be more creative.’ 18 For example countries which
> 
> Udo Schaefer. Bahá’í Ethics in Light of Scripture, vol. 2, Oxford: George
> Ronald, p. 418.
> Griffiths and Wall. Applied economics, 9th ed., London: Pearson Education,
> 2001, p. 336.
> Griffiths and Wall. Applied economics, p. 336.
> Richard Wilkinson and Kate Pickett. The Spirit Level: Why Equality is Better
> for Everyone, London: Penguin Books, 2010, p. 225.
> Distributive Justice
> 
> practicing gender equality and religious freedom are more
> creative and economically more advanced. However, from a
> Bahá’í perspective when discussing distributive justice from
> purely monetary standpoint, equity is preferred to equality.
> The Bahá’í Writings suggest equality in opportunity, to
> ensure that prospect of access to material and social resources
> are justly and fairly distributed. Confirming this view Shoghi
> Effendi said, ‘It is the duty of those who are in charge of the
> organization of society to give every individual the
> opportunity of acquiring the necessary talent in some kind of
> profession, and also the means of utilizing such a talent, both
> for its own sake and for the sake of earning the means of his
> livelihood.’19 The view is that each individual’s talents and
> abilities are different and hence their economic contribution
> to society varies, but, opportunity should be there for all.
> However, aside from equality in dignity and worth, human
> beings are not born the same. Therefore, the Bahá’í view is
> that every human is unique, and that human beings are not
> the same.
> 
> 4.3     Contemporary theories of distributive justice
> The problem of just distribution of wealth at different times
> and in different societies has been addressed in various ways
> and has been affected by diverse economic and philosophical
> views. Just distribution generally falls between the two
> extreme views of egalitarianism and non-egalitarianism. The
> egalitarian 20 approach claims that justice is the same as
> equality. The view expresses that burden and rewards should
> be distributed equally. Hence, according to Beauchamp and
> 
> Shoghi Effendi. Directives, p. 74.
> For egalitarian approach, the doctrine that moral and political life should be
> aimed at respecting and advancing the ‘equality of persons,’ See: Joseph Carens.
> Equality, Moral Incentives, and the Market – An Essay in Utopian Politico-
> Economic Theory, Chicago: The University of Chicago Press, 1981, p. 4.
> Economics and the Bahá’í Faith
> 
> Bowie ‘deviation from equality is considered as unjust.’ 21
> According to Peter Lambert’s interpretation, egalitarianism is
> a process of ‘a rich-to-poor income transfers…and a more
> equal subdivision of any fixed cake will be recommended.’22
> For Joseph Carens, however, equal distribution of income or
> ‘egalitarian system’ is combined with economic efficiency,
> freedoms as a private property market system, and moral
> incentives as a major source of motivation for economic
> activities. Consequently, the situation that 80% of the world’s
> resources are owned by 20% of the world population is
> clearly unjust to an egalitarian. On the other hand, non-
> egalitarians claim that justice in an economic system is
> ultimately a product of the fair process of free-markets.
> Buyers with certain needs would meet sellers who can
> respond to the needs. If the two parties agree on a transaction,
> then the market forces of supply and demand determine
> justice. This view is popularly associated with the work of
> Adam Smith. Obviously these two extreme answers to the
> question of what exactly justice means in an economic
> context are unsatisfactory. The answer might well lie in
> between the two. A very popular approach to this problem
> has been proposed by John Rawls23 (1971). In his theory, he
> suggests two criteria for achieving justice:
> First, each person is to have an equal right to the most
> extensive total system of basic liberties compatible
> with a similar system of liberal for all. Second, social
> and economic inequalities are to be arranged so that
> they are both: a) the greatest benefit of the least
> 
> Beauchamp and Bowie, Journal of Business Ethics, pp. 846-860, at p. 849.
> Peter Lambert. The Distribution And Redistribution of Income, 2nd ed.,
> Manchester: Manchester University Press, 1993, p. 56.
> John Rawls. His theory of justice as fairness envisions a society of free citizens
> holding equal basic rights cooperating within an egalitarian economic system. His
> Writings on the law of peoples extend these theories to liberal foreign policy, with
> the goal of imagining how a peaceful and tolerant international order might be
> possible. (The Oxford Dictionary of Philosophy, 2nd ed., Oxford University Press,
> 2006, p. 308.)
> Distributive Justice
> 
> advantaged; and b) attached to offices and positions
> open to all under conditions of fair equality of
> opportunity.24
> 
> The first principle states that before allowing for any
> inequalities we should ensure that the basic freedom is
> realised to the same degree for everyone affected by the
> decision. The first condition thus looks to general human
> rights and requires their fulfilment before we would be able
> to proceed to the next step.
> 
> In economics, several reasons have been put forward for a
> just redistribution of wealth and income. In the nineteenth
> century, utilitarian including Jeremy Bentham (1748-1832)
> and John Stuart Mill (1806 - 1873) proposed that as income
> increases, the additional satisfaction from it decreases.25 They
> refer to the application of the law of diminishing marginal
> utility. The law states that as people consume more of a good,
> the utility gained from each successive unit declines. The
> utilitarian, therefore, believes that transferring income and
> wealth from the rich to the poor would increase the total
> human well-being and happiness. This is because the poor
> would get more satisfaction than the rich from each pound
> transferred. Some elements of this theory of redistribution are
> supported in the Bahá’í Writings. However, there are
> disagreement in some areas, for example, ‘Abdu’l-Bahá’s
> view is that wealth is commendable if the whole society
> benefits from it. This view supports the utilitarian view of
> redistribution to increase the total human well-being and
> happiness. However, the nature of human well-being and
> happiness need to be clarified. True happiness in the Bahá’í
> Writings includes both material and spiritual.
> John Rawls. Stanford Encyclopedia of Philosophy, revised edition 2014.
> John S. Mill. Utilitarianism, George Sher (ed.), 2nd ed., Cambridge: Hacket
> Publishing Company, 2001, p. 7.
> Economics and the Bahá’í Faith
> 
> Another view maintains that some people have altruistic
> elements in their nature and behaviour and are willing to
> transfer some of their wealth to those who are worse off than
> themselves. Altruism is said to exist when one individual’s
> well-being contains elements of both the individual’s own
> well-being and that of others. This benevolent act improves
> their standard of living. The fact that there are many charity
> organizations helping to improve the lives of the poor is
> supporting such altruistic redistribution. The view that
> voluntary giving of one’s possession encouraged in the
> Bahá’í Writings supports the notion of altruistic nature of
> human beings.
> 
> Marxists put forward a more left-wing reason for economic
> redistribution. They advocate that the market takes money from the
> poor by market power, and therefore the poor are justified by
> taking the money back by political means and other means such as
> strike.26 The Bahá’í Writings denounce the exploitation of the poor
> and of workers and hence justify government intervention in the
> market, to redress the balance. However, strike is not an option.
> ‘Abdu’l-Bahá states, ‘Today the method of demand is the strike
> and resort to force, which is manifestly wrong and destructive of
> human foundations. Rightful privilege and demand must be set
> forth in laws and regulations.’27
> 
> A more philosophical view of the redistribution of wealth is put
> forward by John Rawls, which is based on justice. According to
> this theory, when thinking about redistribution one should not
> consider where she or he is in the income distribution. Samuel
> 
> For a discussion about strike from a Bahá’í perspective see: ‘Abdu’l-Bahá,
> Some Answered Questions, pp. 315-320.
> ‘Abdu’l-Bahá. Promulgation of Universal Peace, p. 238.
> 
> Distributive Justice
> 
> Freeman discusses the original position of John Rawls’s social
> contract account of justice, ‘justice as fairness,’ set forth in A
> Theory of Justice. According to Freeman:
> It is designed to be a fair and impartial point of view
> that is to be adopted in our reasoning about
> fundamental principles of justice. In taking up this
> point of view, we are to imagine ourselves in the
> position of free and equal persons who jointly agree
> upon and commit themselves to principles of social
> and political justice.28
> 
> Rawls views of ‘justice as fairness’ are compatible with
> Bahá’í understanding of this concept. For example, Rawls
> contends that the most rational choice for the parties in the
> original position are two principles of justice: The first
> guarantees the equal basic rights and liberties needed to
> secure the fundamental interests of free and equal citizens
> and to pursue a wide range of basic needs. The Bahá’í
> Writings advocate the provision of basic needs and social
> welfare program for all citizens, including: providing the
> basic needs for all; providing work for all; providing
> Insurance for all; the establishment of special places for
> needy people; and the establishment of moral and educational
> institutions with special regard to health and safety. The
> second principle provides fair equality of educational and
> employment opportunities enabling all to a fair standard of
> living including income and wealth. Hence, in this category
> wage differential is recognized as being fair. A formula
> closely conveys the Baha’i view of wealth distribution states
> that from each according to one’s ability and to each
> according to one’s productive contribution to society.
> Consequently, wage differential exists which is based on
> one’s level of education, skills, experience, ability and
> 
> Samuel Freeman. Stanford Encyclopedia of Philosophy, 1996.
> Economics and the Bahá’í Faith
> 
> talents.
> 
> Another economic argument in favour of redistribution of
> income and wealth is based on market failure. Market failure
> is the misallocation of resources, or when the economy is not
> balanced. Hence, unemployment and the presence of
> extremes of wealth and poverty is clearly a market failure. To
> avoid the risk of extremes of wealth and poverty and
> maintaining a fair standard of living, government intervention
> is essential and the Bahá’í Writings support such
> intervention. It can be said that if everyone lives in the same
> society with the same income distribution, then the results
> were straightforward: each altruistic individual will benefit
> when any other such individual contributes to the well-being
> of the poor, and so each will have an opportunity to benefit
> from it. However, we are not living in such an environment.
> Therefore, at a governmental level redistribution of income
> and wealth takes place by a number of means. For example,
> taxes are used to pay for public expenditure; the tax system
> can be structured so that richer people pay a higher
> proportion of this expenditure. A substantial part of public
> expenditure consists of benefits to people in need of help
> from the state in the form of subsidies.
> 
> 4.4     Bahá’í perspective on importance of wealth
> The concept of wealth is difficult to define or measure
> because it is mainly a stock of assets such as house, land or
> personal possessions and accumulated money; therefore, it is
> different from income. Income is a flow and wealth are a
> stock. If we define wealth as the abundance of valuable
> possessions and assets, then it is difficult to measure because
> they can be appreciated or depreciated. Commenting on
> Adam Smith’s The Wealth of Nations, and on the difficulty
> with defining certain economic terms, economist Spencer
> Distributive Justice
> 
> Pack writes:
> Many technical economic problems trouble Adam
> Smith, much as they have troubled economists ever
> since. For example, how will one accurately
> measure…the wealth of a nation? And what
> determines the distribution of income [and wealth]
> among the various social classes of modern society?29
> 
> Pack found no evidence of how the level of wealth created in
> a nation via production activities could be measured. This
> suggests that the main concern of Smith was the creation of
> wealth and not how to measure it. Smith also did not pay
> much attention to the distribution of wealth; it was David
> Ricardo 30 , another founder of the school of classical
> economics, who discussed this subject. In the Bahá’í
> Writings the acquisition of wealth is not condemned, but true
> wealth has been interpreted differently. The terminology ‘true
> wealth’ is used here and is interpreted as the coherence
> between material and spiritual well-being. For example,
> detachment from the material world is praised without
> condemning one’s material riches. 31 This may seem
> contradictory as normally material wealth and attachment to
> it go hand-in-hand. The complexity arises when one values
> material richness over and above a balanced life. Bahá’ís are
> directed that they would be happier if the spiritual aspects of
> their lives are fulfilled and developed alongside the material.
> And for the wider society it is stated that ‘only when material
> and spiritual civilization are linked and coordinated will
> 
> Spencer Pack. Capitalism as a Moral System – Adam Smith’s Critique of the
> Free-market Economy, London: Edward Elgar Publishing Company, 1991, p. 11.
> David Ricardo (1772-1823) is a British Economist. He opposed the
> protectionism and arguing for free trade or what today called comparative
> advantage. Ricardo explained that as more land was cultivated, farmers would
> have to start using less productive land.
> ‘Abdu’l-Bahá said: ‘Our greatest efforts must be directed towards detachment
> from the things of the world …’ (Paris Talks, p. 85.)
> Economics and the Bahá’í Faith
> 
> happiness be assured.’32
> 
> Moreover, wealth is appreciated if it is acquired legitimately
> through honest work and is spent sensibly. In the following
> statement Bahá’u’lláh describes the attainment of wealth by
> one’s own efforts and hard work as desirable after reaching
> maturity. As stated in earlier discussion, Bahá’u’lláh said,
> ‘Having attained the stage of fulfilment and reached his
> maturity, man standeth in need of wealth.’ 33 The stage of
> fulfilment and reaching maturity in the light of this discussion
> can be interpreted as attaining a high level of human
> consciousness where the acquisition of wealth becomes
> worthy, if achieved through appropriate means and expended
> for the common good. Similarly, in the following statement
> from ‘Abdu’l-Bahá, he describes how wealth should be
> acquired and how to be spent. He said, ‘Wealth is
> praiseworthy in the highest degree, if it is acquired by an
> individual’s own efforts and the grace of God, in commerce,
> agriculture, art and industry, and if it be expended for
> philanthropic purposes.’34 According to this passage, the first
> condition for acquiring wealth is that it must be earned by
> one’s own efforts. This confirms the need to work and be a
> productive member of the community. The second condition
> is that the income earned be spent on charitable and
> philanthropic activities. This is an indication that the Bahá’í
> community is directed towards attaining a culture of
> philanthropic, humanitarian and benevolent activities.
> 
> For further analysis of wealth creation there is a need to make
> a distinction between ‘means’ and ‘ends’, otherwise what is a
> mere instrument could become the main goal of an individual
> 
> ‘Abdu’l-Bahá. Promulgation, p. 110.
> Bahá'u'lláh. Tablets, p. 34.
> ‘Abdu’l-Bahá. The Secret, p. 4.
> Distributive Justice
> 
> in life. Expounding on this, the Universal House of Justice,
> addressing the Bahá’í community, stresses that the
> acquisition of wealth as a means for achieving higher ends
> such as meeting one’s basic needs, promoting the welfare of
> society, and contributing to the establishment of a world
> civilisation, is praiseworthy. 35 Exploring the concept of
> wealth and the justification for acquiring it, the Universal
> House of Justice states, ‘However constructive and noble the
> goal, however significant to one’s life or to the welfare of
> one’s family [wealth] must not be attained through improper
> means.’ 36 The House of Justice continue by stating that
> ‘Regrettably, a number of today’s leaders - political, social,
> and religious - as well as some of the directors of financial
> markets, executives of multinational corporations, chiefs of
> commerce and industry, and ordinary people who succumb to
> social pressure and ignore the call of their conscience, act
> against this principle; they justify any means in order to
> achieve their goals.’37 Examples of ‘improper means’ in our
> present condition of society can be the use of offshore
> investment to avoid paying taxes. Holding money in an
> offshore company is generally not illegal, although such
> financial arrangements can be used in illegal ways - for
> example, to facilitate tax evasion or money laundering. The
> world’s wealthy and globally active corporations use every
> means available to protect their wealth by hiding them from
> the eyes of revenue authorities. In other words, most of what
> has been happening in recent time is about hiding the true
> owners of money, the origin of the money and avoiding
> paying tax on the money. Other examples of improper means
> include using child labour or paying low wages to increase
> profit; unfair trade through aggressive competition; or any
> 
> Universal House of Justice. Ridván Message, April 2012.
> Ibid.
> Ibid.
> Economics and the Bahá’í Faith
> 
> activities that lead to the destruction of the environment.
> Wealth can be a blessing or a curse, depending on one’s
> attitude towards it.
> 
> Amartya Sen 38 has commented on the two elements of
> ‘means’ and ‘ends’. He is establishing an association between
> ‘means’ and ‘ends’ to commodities and to a level of
> ‘functioning’ in life. He writes:
> The commodities over which a person had command
> were, after all, only a means to an end, and that end
> was a level of functioning in life, being able to live the
> kind of life that one values. This ‘functioning’ was
> subject to objective measurement as well: life
> expectancy, infant mortality, literacy, morbidity,
> political participation and so on.39
> 
> Sen was concerned that the average longevity of a resident of
> a poor neighborhood in New York is less than that of a
> resident of Bangladesh, despite the fact that not only
> incomes, but real incomes, are many times higher in some
> parts of New York than in Dhaka, the capital city of
> Bangladesh. 40 Sen’s view helps to better understand the
> legitimacy of wealth on how it is obtained and how it is spent
> in relation to ‘means’ and ‘ends’.
> 
> The concepts of ‘end’ and ‘means’ are also stated in the
> Writings of Bahá’u’lláh. Addressing Bahá’ís he said, ‘It is
> incumbent upon each one of you to engage in some
> occupation…Hold ye fast unto the cord of means and place
> your trust in God, the Provider of all means.’41 This passage
> 
> Amartya Sen worked on more practical problem of measurement and famine,
> including his study of the 1974 Bangladesh famine that concluded that the root
> cause of famine was political rather than agricultural.
> Amartya Sen. Equality of What, Cambridge University Press, 1980, P. 37.
> Ibid.
> Bahá’u’lláh. Aqdas, verse 33.
> Distributive Justice
> 
> appears to imply that one should work to earn a living and
> that money is a ‘means’, not an ‘end’. The indication is that
> our economic models cannot reduce all values to money or
> what is known as ‘commoditization’ 42 in a competitive
> market. Also, policies, which internalise negative
> externalities, should be carefully evaluated so as not to foster
> attitudes of self-satisfaction and selfishness. ‘Negative
> externalities’ is where the actions of an individual or a firm
> have impacts on others for which they do not pay, such as
> damaging roads and polluting the air by driving a car.
> Internalising negative externality means that in this example
> car drivers are responsible to pay the cost of road
> maintenance and pollution. In a similar fashion it should be
> noted how economic theory with its self-interest
> utilitarianism has reduced everything to commodities. To
> avoid these difficulties, there is much guidance as to how to
> weigh carefully the difference between gaining wealth in
> fields such as agriculture, commerce, the arts and industry,
> and in obtaining it without effort or through improper means.
> 
> Alternatively, Bahá’u’lláh describes the relationship between
> human station and wealth in the following words, ‘I have
> created thee rich and have bountifully shed My favour upon
> thee.’ 43 Also, he said, ‘I created thee rich, why dost thou
> bring thyself down to poverty?’ 44 There can be several
> interpretations of the above two passages, which are very
> similar. For instance, the main facet could be with the moral
> aspect of human beings, but it could also be applied to the
> material characteristics. The concept of ‘rich’ can be
> interpreted as both material and spiritual richness. Patrick
> Barker’s interpretation is in respect of the use of all the
> 
> John Sloman. Economics, 6th ed., London: Pearson Education, 2006, p. 157.
> Bahá’u’lláh. Hidden Words (from Arabic translation), no. 11.
> Ibid. no. 13.
> Economics and the Bahá’í Faith
> 
> bounties created for humans. In his view, ‘we have been
> created to be rich, both materially and spiritually, and are
> endowed with a nobility of the highest order.’ 45 Another
> interpretation of ‘I have created thee rich’ is in reference to
> human potential and not material richness. However,
> changing from a condition of poverty to prosperity, either
> materially or spiritually, requires a transformation. In order to
> achieve human potential, including financial freedom there is
> a need for effort and persistence, and one needs to persevere
> and reprioritise one’s thinking so that prosperity is seen as a
> normal way of life. Bahá’ís are advised to ‘Put away all
> covetousness and seek contentment.’ 46 However, attaining
> happiness and prosperity for one who is without sufficient
> means can become a challenge. In this case for pursuing
> progress; contentment with little or no means is not the way
> forward. With regard to human potential ‘Abdu’l-Bahá states,
> ‘Through the restoring waters of pure intention and unselfish
> effort, the earth of human potentialities will blossom with its
> own latent excellence and flower into praiseworthy
> qualities.’47 Therefore, rather than focusing on one’s material
> advancement only, one should aim to develop the vast
> inherent potentials through unselfish acts and service to
> others. However, individuals must be helped to channel these
> qualities towards their own development as well as for the
> betterment of the wider society.
> 
> 4.5     Bahá’í view on self-interest
> A fundamental premise of Adam Smith’s economic paradigm
> is that we are naturally endowed with a powerful ‘desire of
> bettering our condition, a desire which, though generally
> calm and dispassionate, comes with us from the womb, and
> 
> Patrick Barker. Created Rich, Los Angeles: Naturegraph Publisher, 1995, p. 9.
> Bahá’u’lláh. Hidden Words (from Persian translation), no. 50.
> ‘Abdu’l-Bahá. The Secret, p. 4.
> Distributive Justice
> 
> never leaves us till we go into grave.’ 48 Also his famous
> example of butchering tells us that, ‘It is not from the
> benevolence of the butcher, the brewer, or the baker, that we
> expect our dinner, but from their regard to their own self-
> interest.’ 49 Also, Adam Smith in the Theory of Moral
> Sentiments 50 states: ‘every individual…naturally prefer
> himself to all mankind.’ These are powerful statements
> supporting self-interest from the founder of scientific
> economics, written in 1776.
> 
> For expounding this topic, it would be useful to make a
> distinction between self-interest and selfishness, although
> they are generally used synonymously. The clarification
> depends on how we understand these terms in relation to
> wealth creation and distributive justice. Self-interest is when
> a person is concerned with his own well-being and engages
> activities that benefit himself and fulfil his own desires,
> which could also affect others positively. However, a selfish
> person is excessively and exclusively concerned with
> himself, purely seeking his own wishes and desires, without
> regard for others. According to economist Michael Parkin ‘In
> self-interest a choice has to be made and that choice is the
> best one available for a person. Most people make most of
> their choices in their own self-interest.’51 A Bahá’í view, on
> the other hand, would be making choices that promote social
> interest rather than self-interest. These choices would lead to
> an effective and efficient use of resources and distribute
> goods and services equitably among members of society.
> Now that we have established that self-interest is about
> 
> Adam Smith. The Wealth of Nations, Tom Griffith (ed.), London: Wordsworth,
> 2012, p. 709.
> Ibid. Edwin Cannan (ed.), Chicago: The University of Chicago Press, 1976, pp.
> 26-27.
> Ibid. Theory of Moral Sentiments, p. 83.
> Michael Parkin. Economics, 9th ed., London, Pearson Education, 2001, p. 5.
> Economics and the Bahá’í Faith
> 
> making choices, then why not to make choices that are not
> for the self-interest but for the social interest?
> 
> A person can wisely render many services for the benefit of
> others that are not purely based on self-interest. John Stuart
> Mill, an advocate of utilitarianism, argues that we should
> train individuals to derive the greater utility from doing good,
> and conversely, disutility from doing bad. Consequently,
> utilitarian favours activities with ‘altruistic self-interest’.
> They argue that caring for one’s own well-being will care for
> someone else; or doing things for others, one would receive
> some benefits as well. A commonly used saying ‘you scratch
> my back, and I will scratch yours’ is an example of helping
> others with the expectation of getting some benefits; it is a
> kind of self-interest.
> 
> What an individual considers her or his self-interest depends
> on what values they hold. This can vary from one individual
> to another. Within a given culture, Carens argue ‘it may be
> reasonable to assume that individuals share broadly similar
> notions of self-interest because people within that culture will
> have been inculcated in broadly similar values.’ According to
> Bahá’í Writings, Bahá’ís are encouraged to adopt a culture of
> service to humanity.
> 
> A similar point can be made with respect to the concept of
> altruism. At least when used in contrast to self-interest.
> Explaining the term altruism, Carens write:
> The term seems to imply an element of self-reliance,
> of foregoing something which is in one’s own interest
> (or doing something against one’s interest) for the
> sake of other people. But whether an action is
> altruistic or not depends partly on how one defines
> self-interest. Indeed, some people would claim that all
> human action, even action which is apparently
> Distributive Justice
> 
> altruistic, is ultimately self-interested.52
> 
> The term ‘altruism’ is used here to distinguish certain kinds
> of motivation and behaviours in individuals such as
> preference given to others and the act of service.
> 
> Bahá’ís are encouraged to strive to be free from all the above
> approaches. The Bahá’í view is closer to enlightened self-
> interest, which argues that the nature of human being is
> altruistic and not egoistic. Persons who act to further the
> interests of others ultimately serve their own interests.
> Human beings should strive to reach to this level of
> considerate. Bahá’u’lláh deters his followers from egoistic
> activities and encourages them to pursue behaviours that
> benefit all. He states: ‘Dissipate not the wealth of your
> precious lives in the pursuit of evil and corrupt affection, nor
> let your endeavours be spent in promoting your personal
> interest...cling unto that which profiteth mankind.’53 ‘Abdu’l-
> Bahá also condemns the pursuit of self-interest. He states:
> Today, all the peoples of the world are indulging in
> self-interest and exert the utmost effort and endeavour
> to promote their own material interests. They are
> worshipping themselves and not the divine reality, nor
> the world of mankind. They seek diligently their own
> benefit and not the common weal. This is because
> they are captives of the world of nature and unaware
> of the divine teachings.54
> 
> In this passage ‘Abdu’l-Bahá contrasts seeking self-interest
> over seeking ‘the common weal.’ Is it possible to look at
> ‘Abdu’l-Bahá’s assertion as condemning the excessive
> promotion of self-interest, rather than self-interest itself? In
> weighing self-interest versus the common weal, one’s self-
> 
> Joseph Carens. Equality, Moral Incentives, and the Market, p. 121.
> Bahá’u’lláh. Tablets, p. 138.
> ‘Abdu’l-Bahá. Selections, p. 103.
> Economics and the Bahá’í Faith
> 
> interest is also included in the common weal. If one makes
> efforts so that one’s community is prosperous, it would
> ensure one’s own prosperity. But the challenge with this view
> and this way of thinking is that it is much easier to think of
> what is good for one’s own self than to understand what is
> best globally and what is good for others. One suggestion
> given here is to start with children, raising and educating
> children with moral principles to be considerate,
> thoughtfulness, and caring. These principles then need to be
> practiced by families rather than simply state them.
> 
> A number of Bahá’í scholars have commented on the cause
> and effect of self-interest. For example, Graham’s view is
> that ‘self-interest is the single element most destructive to
> well-being [and] lacking…the moral backbone in society to
> construct, guide and set its parameters.’55 Rassekh goes even
> further considering ‘Self-interest as indifference to the
> welfare of other individuals, [even though he acknowledges
> that] although this attitude may not injure other people, it
> does nothing to alleviate their problems.’ 56 Graham and
> Rassekh’s argument is based on absence of moral backbone
> and altruistic behaviour in the society. However, the
> difficulty is, how can we include altruistic behaviour such as
> fairness and compassion in the economic diagrams? It is
> argued that economics cannot effectively integrate moral
> principles such as equity and justice into its utility curves. An
> influential voice in such an argument was that of William
> Jevons, who in the Theory of Political Economy was moved
> to declare: ‘Economics, if it is to be a science at all, must be a
> mathematical science. 57 However, from a mathematical
> science perspective, moral values are extruded. Galbraith
> 
> Bryan Graham. Bahá’í Studies Review, p. 5.
> Farhad Rassekh. The Journal of Bahá’í Studies, p. 3.
> William S. Jevons. Quoted in Galbraith, A History of Economics, p. 125.
> Distributive Justice
> 
> writes, ‘The detachment and the justifying commitment to
> scientific validity as opposed to social concern are especially
> influential in our own time.’ 58 Hence, when considering
> scientific validity economists are not concerned with justice
> and other moral issues. This leaves no room for actual
> expansion of consciousness and the realizations of other
> forms of being. The Universal House of Justice describe the
> metaphor of ‘body’ used in the Bahá’í Writings; ‘Regard the
> world as the human body’59 as follows:
> In the human body, every cell, every organ, every
> nerve has its part to play. When all do so the body is
> healthy, vigorous, radiant, ready for every call made
> upon it. No cell, however humble, lives apart from
> the body, whether in serving it or receiving from it.
> This is true of the body of mankind.60
> 
> The expansion of consciousness, together with the above
> metaphor of the ‘body’ may point towards creating more
> systemic models rather than ones based on individual
> aggregates.
> 
> A more effective description of self-interest in the Bahá’í
> literatures is in relation to human nature. The Bahá’í
> teachings emphasise the duality of human nature. According
> to ‘Abdu’l-Bahá, humans possess a spiritual or higher nature,
> and a material or lower nature. He said, ‘In one he
> approaches God, in the other he lives for the world alone.’61
> According to him ‘The impulse of self-interest belongs to the
> lower nature of human beings.’62 The virtue of benevolence
> belongs to the higher nature of human beings and is a source
> of human perfection and true happiness. In other words, true
> 
> Galbraith. History of Economics, p. 125.
> Bahá’u’lláh. Gleanings, p. 254.
> Universal House of Justice. Wellspring, p. 38.
> ‘Abdu’l-Bahá. Paris Talks, p. 60.
> Ibid. Quoted in Waging Peace, p. 15.
> Economics and the Bahá’í Faith
> 
> happiness is associated with the higher nature, and material
> or physical happiness is related to the lower nature of human
> being. John Stuart Mill presents similar views. He argues that
> intellectual and moral pleasures (higher pleasures) are
> superior to more physical forms of pleasure (lower
> pleasures).63
> 
> But human beings are able to overcome their own self-desires
> to promote the common good. F. Rassekh argues that such
> pronouncements against the pursuit of self-interest and self-
> love, however, do not constitute a rejection of the market
> economy.64 For example, Bahá’u’lláh allows charging interest
> on financial loans, which is a characteristic of the market
> economy. Also, ‘Abdu’l-Bahá considers commerce to be one
> of the ‘vital agencies which would constitute an immediate
> remedy for society’s chronic ills.’ 65 Moreover, he states,
> ‘Wealth is most commendable, provided the entire population
> is wealthy.’66 Commenting on the Writings of ‘Abdu’l-Bahá,
> Rassekh maintains the view that ‘Indeed by encouraging
> commercial activities, ‘Abdu’l-Bahá endorses a fundamental
> tenet of the market system that commercial pursuits are
> beneficial to society.’67 However, as Shoghi Effendi stated,
> the Bahá’í Faith rejects the doctrine of laissez faire, which is
> the extreme version of a free-market economy. It is stated:
> In the Bahá’í economic system of the future, private
> ownership will be retained, but will be controlled,
> regulated and even restricted. Complete socialization
> is not only impossible but most unjust, and in this the
> Cause is in fundamental disagreement with the
> extreme socialists or communists. It can also not agree
> with the other extreme tendency represented by the
> 
> John Stuart Mill. Utilitarianism, p. 8.
> Farhad Rassekh. Electronic correspondence, 14 January 2015.
> ‘Abdu’l-Bahá. The Secret, p. 39.
> Ibid. p. 24.
> Farhad Rassekh. The Journal of Bahá’í Studies, P. 2.
> Distributive Justice
> 
> ‘laissez faire’ or individualistic school of economics
> which became very popular in the 18th century and
> which is still supported, in certain of its essential
> features, by the so-called democratic countries.68
> 
> Nader Saeidi relates the topic of human nature, self-interest
> and selfishness to the issue of ‘order’, associating it with the
> Writings of the political theorist of the seventeenth century
> Thomas Hobbes (1588-1679). The question posed by Hobbes
> is normally called the Hobbesian problem of ‘order’. In his
> famous book, Leviathan, Hobbes investigated the basis of
> order in society. According to Hobbes, human beings are
> naturally selfish, aggressive, concerned with the pursuit of
> their own interests, and yet rational. Hobbes argued that in
> the state of nature, humans will use any means to get what
> they want, and they will not refrain from stealing or murder.
> This view contradicts earlier notion that humans are
> fundamentally altruistic. It is due to this lower nature that
> according to ‘Abdu’l-Bahá ‘he expresses untruth, cruelty and
> injustice.’ 69 Hobbes’ solution to the problem of order is
> rooted in his definition of human nature. Expounding on
> Hobbes’ view, Saeidi writes:
> By the term rational Hobbes means that people will
> try to maximize their pleasure and minimize their
> costs. In other words, rational people will follow their
> selfish interests efficiently and effectively. Since
> humans are rational, they understand that the state of
> nature is harmful to them and contradicts their
> interests. Therefore, because of their selfishness
> humans decided to engage in a social contract in order
> to create laws and political institutions so that the fear
> of punishment by a strong and dictatorial state would
> prevent selfish individuals from committing criminal
> acts. Order, therefore, is the product of the fear of
> punishment and coercion…Order in other words was
> believed to be based upon a combination of rational
> selfishness of humans and their fear of legal
> punishment. The inadequacy of this rationalistic
> 
> Shoghi Effendi. Letter dated 25 August 1939.
> ‘Abdu’l-Bahá. Waging Peace, p. 15.
> Economics and the Bahá’í Faith
> 
> conception of order became increasingly evident in
> nineteenth-century sociology and political theory.
> Modern social and political theory not only affirmed
> the normative and symbolic character of human action
> and motivation but also reconceptualised the relation
> of individuals in society in terms of new ideas like
> solidarity, common bond, common religion, shared
> values, shared culture, legitimacy, and normative
> integration.70
> Saeidi’s argument in analysing Hobbes’ view is that the
> Hobbesian solution to the problem of order was not sufficient
> and considers the notion of ‘order’ from a Bahá’í perspective,
> he writes:
> Bahá’u’lláh’s concept of order should be understood
> in terms of this theoretical problem. In His Writings,
> Bahá’u’lláh emphasized that a system of reward and
> punishment is a necessary but not sufficient condition
> for the maintenance of order in society. According to
> Bahá’u’lláh, order requires reward and punishment
> but also internalized moral values, religious belief,
> and love of humanity.71
> 
> Therefore, Bahá’u’lláh’s concept of order, according to
> Saeidi, is directly opposed to the western enlightenment’s
> concept of order. For the latter, human reason and selfish
> orientation guarantee social order, and do not consider a need
> for religion and divine guidance in human life. Bahá’u’lláh,
> conversely, regards the question of order as a proof of the
> need for religion and divine revelation in human history.
> 
> 4.6     Voluntary versus compulsory giving
> A Bahá’í moral principle about distributive justice is that of
> voluntary sharing of one’s income and wealth. Bahá’u’lláh
> states, ‘To give and to be generous are attributes of Mine;
> 
> Nader Saeidi. ‘An Introduction to ‘Abdu’l-Bahá’s The Secret of Divine
> Civilisation, Converging Realities,’ Switzerland: Landegg Academy, 2000.
> Ibid.
> Distributive Justice
> 
> well is it with him that adorneth himself with My virtues.’72
> The founder of this Faith has given great responsibility to the
> wealthy to take care of the poor. However, the rich should
> voluntarily carry out such responsibility for human prosperity
> and well-being because they have greater resources. The
> benevolent behaviours of compassion and generosity are
> examples of virtues required for an effective voluntary
> sharing. This approach is considered to be highly effective
> because it is done freely as a matter of choice rather than
> being forced to give. Confirming this, Bahá’u’lláh states ‘The
> beginning of magnanimity is when man expendeth his wealth
> on himself, on his family and on the poor among his brethren
> in the Faith.’ 73 And ‘Abdu’l-Bahá maintains that ‘The
> harvest of force is turmoil and the ruin of the social order.’ 74
> By reflecting upon the above two passages, it would appear
> that the spiritual laws of prosperity not only deal with
> receiving but also with giving. It is stated that ‘It will not be
> possible in the future for men to amass great fortunes by the
> labours of others.’ 75 Whether this is because in the future
> humanity will become morally more conscious or the
> government regulations become more effective for creating
> distributive justice, it is clear that at this time there is greater
> material prosperity in those countries with an effective
> regulation of wealth redistribution.
> 
> On one hand, Bahá’u’lláh has given the responsibility to the
> wealthy to take care of the poor. On the other hand, ‘Abdu’l-
> Bahá comments that the poor should not force the rich people
> to share their wealth. He said, ‘sharing is a personally chosen
> righteous act: That is, the rich should extend assistance to the
> 
> Bahá’u’lláh. Hidden Words, (from Persian translation), no. 49.
> Bahá’u’lláh. Tablets, p. 156.
> ‘Abdu’l-Bahá. Selections, p. 115.
> ‘Abdu’l-Bahá. Cited in Bahá’u’lláh and the New Era, p. 145.
> Economics and the Bahá’í Faith
> 
> poor, they should expend their substance for the poor, but of
> their own free will, and not because the poor have gained this
> end by force.’ 76 Yet this may become a challenge for both
> groups. It can be a challenge for the rich to share a portion of
> their wealth voluntarily with those who are not known to
> them. Also, it is a challenge for the poor not to expect or try
> to gain this by force. The process leading to distributive
> justice morally requires a great deal of Faith and obedience to
> the teachings of the Faith. It is in this way that the Bahá’í
> community can function in a more secure and orderly
> manner. ‘Abdu’l-Bahá clarifies this point by advising Bahá’ís
> that this will be a gradual process in the Bahá’í community.
> He said, ‘[the rich] will come to this gradually, naturally, by
> their own volition.’ 77 There are evidences in the Bahá’í
> community that this gradual process is taking place. For
> example, the entire expenses of the activities of the Bahá’í
> community at a global level are supported and paid for by
> Bahá’ís only. Another condition put forward by ‘Abdu’l-
> Bahá for the rich to share their wealth willingly is for them to
> become more sensitive and show compassion towards others.
> He said: ‘The time will come in the near future when
> humanity will become so much more sensitive than at present
> that the man of great wealth will not enjoy his luxury, in
> comparison with the deploring poverty about him.’78 At the
> same time, voluntary giving in the form of ‘in-kind’ or
> ‘development projects’ is well-known today.
> 
> However, in the analysis of the principle of voluntary giving
> of one’s possession, the system may jeopardize the
> importance of a number of public services such as education
> 
> Ibid.
> Ibid.
> Ibid. Cited in Star of the West, ‘The Economic Teaching of ‘Abdu’l-Bahá,’ vol.
> viii, no. 1, 21 March 1917, p. 6.
> Distributive Justice
> 
> and health and security. This will be too risky. This principle,
> also, can be challenged on the basis of a number of other two
> issues. Voluntary giving may not necessarily eliminate
> poverty. The reason is that such voluntary giving may
> provide a reason for some people never to work and may
> create a culture of dependency. Also, the financial aspects of
> a community, of a nation, and of the world cannot be built on
> a system based only on voluntary giving. No country can plan
> its public finances on such totally unpredictable sources of
> revenue. The shortcomings of a system of ethics based solely
> on voluntary giving of one’s possession may jeopardize the
> importance of a number of public services such as education
> and health and security. This will be too risky.
> 
> Therefore, in the wider society the process adopted through
> taxation is more practical, though it may not be an ideal one.
> As it is commonly practiced in the wider society, the method
> of distributive justice is mainly through government
> intervention through regulatory bodies for using taxation and
> different types of subsidies. The effectiveness, however,
> depends on how the level of corruption and misuse of
> financial resources either in the public or private sectors
> affect a country, or how the distributive justice affects the
> economic growth of a country.
> 
> Another argument against voluntary giving is that humans are
> driven by instincts to survive and satisfy their base desires.
> Hence, there is not a simple correlation between economic
> growth and voluntary giving. For example, if we focus on
> selfishness then the idea of voluntary giving appears as a
> mirage, impractical and unrealistic. Also, voluntary giving in
> the form of charity often targets the symptoms rather than
> cause of a problem and may only remedy problems such as
> the eradication of poverty temporarily. The Bahá'í Writings
> Economics and the Bahá’í Faith
> 
> disagree with the notion that humans only possess the lower
> nature and selfish attitudes; rather it is firmly believed that
> this aspect of human nature can be changed gradually through
> proper education.
> 
> A discussion of the relationship between the voluntary
> distribution of wealth and the main goal of the Bahá’í Faith,
> unity, is worthwhile here. It can be said that there is a direct
> relationship between unity and voluntary giving. As
> discussed earlier, the acquisition of wealth is acceptable to
> the extent that it serves as a means for achieving higher ends.
> The ultimate goal for a Bahá’í is the achievement of unity of
> humankind. For example, how can one enjoy one’s wealth
> while more than a billion people live in absolute poverty? In
> the following statement ‘Abdu’l-Bahá, envisions that in the
> future ‘the rich shall most willingly extend assistance to the
> poor.’ 79 But why is such a benevolent and praiseworthy
> activity envisioned for the future? The presumption is that it
> is a challenge at the present time for the Bahá’í community
> and the wider society. Today many of the rich share their
> wealth by being forced to give through taxes and try to evade
> this as much as they can. However, as observed by ‘Abdu’l-
> Bahá ‘The man of great wealth…will be forced, for his own
> happiness, to expend his wealth to procure better conditions
> for the community in which he lives.’ 80 Hence, this view
> from the Bahá’í Writings indicates that in the future as more
> people advance spiritually and become conscious of the
> needs of others, then ‘the social function of wealth’ 81 is
> understood and benevolent activities are carried out willingly
> and with joy. In addition, in the Bahá’í Writings wealth is
> commendable, provided the entire population is wealthy.
> 
> ‘Abdu’l-Bahá. Promulgation, p. 239.
> Ibid. Star of the West, vol. viii, no. 1, pp. 4-5.
> Shoghi Effendi. Aqdas, note 38.
> Distributive Justice
> 
> Consequently, by considering the above statements together,
> one notes that there is an optimistic view that the wider
> society will benefit from practicing the principle of voluntary
> sharing.
> 
> How is taxation as a compulsory policy different from the
> voluntary sharing of one’s possessions? It is vital to comment
> that all the activities of the Bahá’í community worldwide are
> carried out only through the monetary contribution of
> individual Bahá’ís. This allows the Bahá’í community to be
> financially self-supported and self-sustained. The concept of
> voluntary giving is an indication that a community is
> advancing spiritually. However, on a national scale the
> system of taxation and other government regulations may be
> more practical. This means it is too risky for a government to
> be dependent on voluntary contribution for the funds needed
> to spend on important public services.
> 
> Comparing voluntary contribution with taxation, a number of
> Bahá’í scholars have considered the difference being in the
> presence or absence of the spiritual values of generosity and
> compassion. The indication is that taxation is of lower
> spiritual importance while voluntary contribution of wealth as
> a high spiritual value. For example, John Huddleston writes
> ‘voluntary action in the social interest would be a stronger
> force than the instruction and law of government.’82 Graham
> makes an overall assertion of the effects voluntary giving
> would have on economics and believes that ‘the economic
> effect of voluntary giving, as opposed to involuntary giving
> such as taxation, is profound.83 The distinguishing aspect of
> voluntary giving certainly emphasises an attitude of
> 
> John Huddleston. The Search for a Just Society, p. 241.
> Bryan Graham. Bahá’í Studies Review, vol. 7, 1997, p. 5.
> Economics and the Bahá’í Faith
> 
> generosity, which is in contrast with that of an imposed law
> for the sharing of wealth.
> 
> 4.7    Specific Bahá’í principles on wealth redistribution
> Studying the Bahá’í primary literatures, a number of
> principles are suggested for redistribution of income and
> wealth. Some of these principles directly affect Bahá’ís and
> the Bahá’í community, and some are for the wider society.
> Selected teachings are described and discussed in this part.
> 
> 4.7.1 Government participation
> Alongside the role of individuals in voluntary giving, and the
> role of Bahá’í institutions in coordinating wealth
> redistribution in the community, the Bahá’í literatures
> emphasise the important role of government in distributive
> justice, and in provision of the basic needs for all citizens.
> Adam Smith is often cited as arguing for the free-market
> economy. His basic argument is that firms in the pursuit of
> profits do what is best for themselves, which would also be
> best for the world. In other words, the market is self-
> correcting and not in need of government interference. He
> believed that the market reaches a balanced market or
> ‘equilibrium automatically’ when the opposing forces of
> supply and demand balance each other. In other words, when
> the price balances the purchasing power of buyers and sellers.
> However, since the Smith’s view of a system of ‘free-market
> economy,’ more study has been done about the limitations of
> such an economic system. Critiques of the free-market
> economy argue that the market does not lead to what is the
> best for consumers and producers, suggesting the need for
> participation of government in regulating the market.
> Economist and Nobel Prize laureate in economic science of
> the 2001, has mentioned one specific reason for the need for
> government involvement in the market that concerns the
> Distributive Justice
> 
> issue of negative externalities:
> Whenever there are ‘externalities’ - where the actions
> of an individual have impacts on others for which they
> do not pay, or for which they are not compensated,
> markets will not work well. Some of the important
> instances have long understood environmental
> externalities. Markets, by themselves, produce too
> much pollution. Markets, by themselves, also produce
> too little basic research. The government was
> responsible for financing most of the important
> scientific breakthroughs, including the internet and the
> first telegraph line, and many bio-tech advances. But
> recent research has shown that these externalities are
> pervasive, whenever there is imperfect information or
> imperfect risk markets - that is always. Government
> plays an important role in banking and securities
> regulation, and a host of other areas: some regulation
> is required to make markets work. Government is
> needed, almost all would agree, at a minimum to
> enforce contracts and property rights. The real debate
> today is about finding the right balance between the
> market and government (and the third ‘sector’ –
> governmental non-profit organizations.) Both are
> needed. They can each complement each other. This
> balance differs from time to time and place to place.84
> 
> If we define negative externality such as pollution as the
> third-party effect as a situation where the cost of a firm’s
> action to society exceeds the firm’s private cost, then Stiglitz
> suggests that government intervention is required to
> internalise such a cost. In other words, society should not be
> suffering because of the action of a firm, which is for the
> purpose of profit maximisation. Stiglitz’s main argument here
> is about the effect of negative externalities created by firms,
> the cost of which is transferred to the whole society. These
> costs need to be internalised and be paid for by the firm. This
> is a classic example of market failure, which needs
> Joseph Stiglitz. Making Globalization Work, London: Penguin Books, 2006. p.
> 45.
> Economics and the Bahá’í Faith
> 
> government participation. Other examples of market failure
> include unemployment, monopoly power, negative
> externality, increasing the gap between the rich and the poor,
> and wastage of resources either by consumers or by
> producers. Therefore, the proponents of a free-market
> economy argue that the idea that the market is able to balance
> the economy, has failed.
> 
> Stiglitz’s view agrees with Bahá’í Writings, which support
> government participation for coordinating and regulating
> market activities. Bahá’u’lláh’s pronouncement is that ‘…a
> republican government profits all the people,’85 and ‘Abdu’l-
> Bahá considers the role of government crucial in ensuring the
> happiness and well-being of the citizens of a country through
> ‘establishing just legislation and economics in order that all
> humanity may enjoy a full measure of welfare and privilege;
> but this will always be according to legal protection and
> procedure.’ 86 In 1936 Shoghi Effendi suggested that
> government participation is essential for regulating,
> coordinating and even restricting market activities. 87 Such
> participation would allow the government’s performance in
> relation to distributive justice to be judged not only by
> economic growth rates but also by the effect of policies on
> social welfare, such as protecting the environment, creating
> employment, providing health and education and improving
> transport facilities. This way, the role of government is not
> limited to collecting tax and providing subsidies but extends
> to introducing plans to deliver acceptable living standards for
> all citizens.
> 
> Whenever there is government participation there is also a
> 
> Bahá’u’lláh. Tablets, p. 28.
> ‘Abdu’l-Bahá. Promulgation, p. 238.
> Shoghi Effendi. World Order, p. 203.
> Distributive Justice
> 
> likelihood of government failure and the subsequent creation
> of negative externality. This, of course, depends on the
> government’s availability of resources to tackle the existing
> challenges in the market. The founder of this Faith considers
> excessive expenditures on armaments as unnecessary and a
> type of government failure. For example, Bahá’u’lláh warned
> the kings and rulers of the world 88 , saying, ‘We see you
> increasing every year your expenditures, and laying the
> burden thereof on your subjects. This, verily, is wholly and
> grossly unjust.’ 89 Conversely, in some cases a government
> may provide too many benefits, which may cause wastage or
> result in a misallocation of resources (for example generous
> welfare programs by some governments). This approach may
> create a culture of dependency in society. According to the
> Bahá’í Writings, on the one hand work is a spiritual
> obligation and Bahá’ís are encouraged to be productive
> members of the society; and on the other hand, the Bahá’í
> institutions and governments are given the responsibility to
> prepare individuals in skills learning in the first instance, and
> to help the poor only when necessary, rather than providing
> ample universal benefits. John Huddleston’s view is that ‘The
> Bahá’í system of government would also be responsible for
> providing other social services (such as social security or
> health services) which would be available equally for all and
> which would therefore contribute to the lessening of
> differences in wealth.’90 On the issue of misusing resources
> Huddleston believes that ‘Bahá’í standards of morality,
> including honesty and the injunction against begging, should
> ensure the ‘abuses’ of social welfare programmes would be
> 
> The chosen kings and rulers of the earth whom Bahá’u’lláh addressed them
> includes: Napoleon III, Queen Victoria, Kaiser Wilhelm I, Tsar Alexander II, the
> Austrian Emperor Franz Josef, the Ottoman Sultan ‘Abdu’l-‘Aziz and the Qajar
> Monarch Násiri’d-Dín Sháh.
> Bahá’u’lláh. Gleanings, p. 253.
> John Huddleston. The Search for a Just Society, p. 439.
> Economics and the Bahá’í Faith
> 
> minimal.’91 Similarly, there will be less need for government
> intervention as the concept of ‘work as worship’ is practiced
> in the wider society, leading to lower levels of
> unemployment, which is one of the government’s
> macroeconomic objectives. Likewise, the concept of
> voluntary sharing would lead to a more equitable distribution
> of income and wealth, hence achieving some of the
> microeconomic objectives of government, such as price
> stability and a welfare program.
> 
> 4.7.2 Principle of equity
> When discussing distributive justice from the Bahá’í
> perspective equity is preferred to equality. It is maintained
> that absolute equality is neither possible, nor practical or
> justified. However, equality of opportunity is suggested, to
> ensure that the opportunity for access to material and social
> resources is justly and fairly distributed. The Bahá’í Writings
> state that ‘It is the duty of those who are in charge of the
> organization of society to give every individual the
> opportunity of acquiring the necessary talent in some kind of
> profession, and also the means of utilizing such a talent, both
> for its own sake and for the sake of earning the means of his
> livelihood.’92 This writing indicates that individual talents and
> abilities are different and hence their economic contribution
> to society varies; however, justness of opportunity should be
> there for all.
> 
> In the field of economics, economic justice is about equity
> rather than equality. The earnings of each person depend on
> one’s productive contribution to society. However, it can be
> argued that the goal of social justice is for people to be equal.
> 
> Ibid.
> Shoghi Effendi. Directives, p. 74.
> Distributive Justice
> 
> The Bahá’í belief is that we are all equal, not because we are
> the same but because we are all created by God. The notion
> of ‘all created in the image of God’ suggests that each person
> has certain rights granted by God. These rights include the
> right to life, liberty, and the pursuit of happiness. The
> application of ‘all created in the image of God’ can be
> interpreted as the recognition of equality in the social and
> economic equation. The Bahá’í writing make it clear that
> each person is unique, but human beings are not the same.
> The hallmark is ‘unity in diversity.’ Hence, equality and
> equity are very different. Equity assumes the diverse, unique
> individuality of each person. While people are different, they
> are to be treated equally before the law. In the Bahá’í view,
> the diversity of people is a cause for celebration. The concept
> of equity indicates that there should be wage differentials. In
> this model, each person receives according to his or her
> economic contribution to society and its needs. This seems to
> be fair because each individual has different talents and
> education and economic capability, and hence the productive
> contribution of each person to society varies. From this
> perspective, each person is different. The model, however,
> recognizes that minimum standards of living must be
> provided for all, ‘Abdu’l-Bahá wrote, ‘The readjustment of
> the economic laws for the livelihood of man…in order that
> all humanity may live in the greatest happiness according to
> their respective degrees.’93 This passage indicates the need
> for active participation of government in the economy.
> 
> 4.7.3 Principle of profit sharing
> For a social enterprise to succeed it will need to have a
> system of incentives to reward desirable behaviour. One such
> system suggested in the Bahá’í Writings is profit sharing.
> 
> ‘Abdu’l-Bahá. Promulgation, p. 170.
> Economics and the Bahá’í Faith
> 
> ‘Abdu’l-Bahá said: ‘According to the divine law, no wages
> should be given to the employee. Nay, rather indeed they are
> partners in every work.’94 This clearly means that employers
> should consider employees as assets to be retained, rather
> than as costs to be reduced. Profit sharing is also supported as
> an effective method for wealth redistribution. ‘Abdu’l-Bahá
> states, ‘Profit sharing is recommended as a solution to one
> form of economic problems.’95 Profit sharing refers to when a
> share of the net profit of the organization is given to workers.
> This share would be separate from the normal wage
> employees receive. In most organizations that apply this
> technique, the amount shared is determined either by an
> established formula or entirely at the discretion of the
> management or owners, based on a set of objectives. The
> percentage of profit shared among the workers should be
> sufficient to reward them, otherwise it may not create
> adequate incentive.
> 
> Material incentives are those that reward desirable behaviour
> with a claim over material goods, or through some form of
> monetary payment. In a competitive market economy,
> material incentives are related to supply and demand.
> Shortage of products leads to an increase in prices; in which
> case producers gain extra monetary benefits. If demand is
> low or there is excess supply, then consumers are in a
> position to benefit from lower prices, which would be an
> incentive for consumers. Stephen Gardner argues that
> systems of material incentives become more complicated in
> the presence of ‘principle-agent relationships.’ 96 This
> requires the most desirable behaviour from the agents to offer
> 
> Abdu’l-Bahá. Cited in the Star of the West, vol. VIII, number 1, p. 7.
> Shoghi Effendi. Directives, p. 19.
> Stephen Gardner. Comparative Economic Systems, 2nd ed., New York: Dryden
> Press, 1998, p. 10.
> Distributive Justice
> 
> an incentive to workers. A system of profit sharing may
> encourage the agents to respond more appropriately to market
> signals for providing additional incentives to workers.
> 
> Profit sharing generates several benefits to an organization,
> including creating opportunities for workers to participate in
> decision-making, improving working conditions, providing
> better prospects for growth and development of the
> organization, and creating in workers a sense of belonging to
> the organization. The anticipation is that such a practice
> would remove the culture of ‘them’ and ‘us’, strengthen
> people’s loyalty to the firm and encourage workers to work
> more effectively by not wasting the resources of the business
> as a result increasing the success of the organization.
> Workers will use their skills and talents to their full potential,
> thereby increasing the level of production. Consequently,
> profit sharing can create an environment in which people will
> enjoy their work.
> 
> Profit sharing has a number of applications. As workers
> receive a portion of the profit, there will not be an incentive
> for strike. An industrial strike would be very costly even for a
> limited number of days. Depending on the nature of the
> demand by the workers, strike may impact heavily on
> customers, workers and the industry. ‘Abdu’l-Bahá suggests
> that the main reasons for strike are the greed and rapacity of
> the factory owners and the intransigence of the workers. 97
> Such extreme greed in manufacturers leads to a small number
> of individuals collecting massive fortunes, while the greater
> number remains deprived. One solution to this problem
> suggested by ‘Abdu’l-Bahá is profit sharing: ‘Laws and
> regulations should be established which would permit the
> 
> ‘Abdu’l-Bahá. Some Answered Questions, p. 315.
> Economics and the Bahá’í Faith
> 
> workmen to receive from the factory owner their wages and a
> share in the fourth or the fifth part of the profits, according to
> the capacity of the factory.’ 98 This percentage seems to be
> high compared to what is customary currently in
> organizations applying this principle. Once profit sharing is
> in operation ‘Abdu’l-Bahá states, ‘The owner of the factory
> will no longer put aside daily a treasure which he has
> absolutely no need of … And the workmen and artisans will
> no longer be in the greatest misery and want; they will no
> longer be submitted to the worst privations at the end of their
> life.’99 Companies with an excessive surplus of revenue can
> redistribute a portion of their accumulated profit in the form
> of profit sharing and a part of it for improving working
> conditions, both of which will assist employees as well as the
> company to operate more effectively.
> 
> The motivation and justification of adopting profit sharing
> varies from the standpoint of the employer and that of the
> employee. The employers would feel that it is their moral
> duty to share their prosperity and wealth with their
> employees, the people who helped them succeed. An
> effective profit sharing requires employers to have good
> intentions and not to expect to be rewarded for sharing the
> profit. Clearly the main rationale for adopting profit sharing
> is its benefits to the whole of the community. The
> justification for implementing profit sharing according to
> ‘Abdu’l-Bahá is that ‘if it be right for a capitalist to possess a
> large fortune, it is equally just that his workman should have
> a sufficient means of existence.’ 100 Consequently, the
> workforce would consider profit sharing as a form of security
> for their livelihood; hence it can be an incentive to work
> 
> Ibid. p. 274.
> Ibid. p. 275.
> ‘Abdu’l-Bahá. Paris Talks, pp. 158-159.
> Distributive Justice
> 
> harder. ‘Abdu’l-Bahá states, ‘laws must be enacted that
> would enable [the factory owners] to make reasonable profits
> and the [workers] to be provided with the present necessities
> and their future needs.’101 Another effect of practicing profit
> sharing is to bring about greater harmony between employers
> and employees. Such harmonious relationships among the
> workforce cause them to apply their abilities and focus their
> thoughts on achieving the objectives of the firm. Another
> justification for a profit-sharing scheme is that distributing a
> portion of the profit generated by the entire workforce would
> act as a positive feedback to them, which would, in turn,
> encourage them to do even better. The argument also can be
> presented that profit sharing is not a gift from employer to
> employees. The employees know that the bonus they receive
> in the form of profit sharing is a payment for a bigger
> responsibility they have accepted. It is because employees
> have added an economic value to the business and created a
> better image for the company and consequently, they are
> entitled to an additional payment. Therefore, employees
> consider profit sharing not as a gift, but the result of a job
> well done. Nevertheless, from a Bahá’í perspective, for a
> Bahá’í, work is considered as worship and must be done well,
> with or without profit sharing.
> 
> Despite the above justification and benefits of profit sharing
> for both employees and employers, the idea is not without
> consequences and can be challenged in a number of ways.
> The effects of profit sharing to motivate workers to increase
> productivity, is more of a short-term phenomenon. In the long
> run, productivity plateaus as workers get used to this extra
> income, unless there is an increase in the level of profit
> sharing. But increasing the level of profit sharing may not be
> 
> Ibid. Some Answered Questions, p. 318.
> Economics and the Bahá’í Faith
> 
> in the interest of the business and it may also cause a negative
> reaction from the shareholders, towards whom the business
> has a responsibility. Another difficulty with profit sharing is
> that it is not fair to pay the same percentage of profit to all
> workers with different talents, qualifications, and skills. In
> other words, it is not fair to pay the same number of bonuses,
> for example, to one who is extremely motivated and
> hardworking and to one whose motivation and work rate is
> comparatively low. The alternative suggestion is to ‘pay
> according to performance’, in the words of ‘Abdu’l-Bahá
> ‘each in his function according to ability but with justness of
> opportunity for all.’ 102 The Bahá’í concept of ‘work as
> worship’ can have a positive impact on workers’
> performance, which may lead to better pay. However, the two
> principles of ‘work as worship’ and ‘profit sharing’ can work
> independently from each other. Both principles affect the
> lives of workers positively, but in a different way. The
> principle of profit sharing is a positive gesture from the
> employer to the workers, giving them a portion of the firm’s
> profit for their loyalty. The great success of profit sharing and
> its increasing acceptance in the modern industrial age is not
> only due to its monetary benefits. The act of profit sharing
> will encourage workers to improve their work, giving them a
> sense of personal investment in their work and allowing them
> to participate in decision-making.
> 
> 4.7.4 Progressive income tax
> The Bahá’í Faith supports the notion of progressive income
> tax as another method of wealth redistribution and a way of
> reducing extremes of wealth and poverty in the wider society.
> Progressive tax is defined as ‘A tax whose average rate with
> 
> ‘Abdu’l-Bahá. Promulgation, p. 216.
> Distributive Justice
> 
> respect to income rises as income rises.’103 In other words, the
> tax rate increases with income; therefore, the higher-income
> group pay a higher proportion of tax than the lower-income
> group. Here, the term progressive income tax rather than
> graduated income tax is used because it is always advancing
> upwards, whereas graduated tax may go up or down. Shoghi
> Effendi writes: ‘the income tax, according to the Bahá’í
> teachings, mounts at quite a steep rate so that great sums of
> money would be very heavily taxed.’ 104 This kind of tax
> system offers one of the most straightforward ways of
> achieving equitable distribution of income and wealth by
> marginally redistributing income from top to bottom. The
> economic rationale for progressive income tax is related to
> the two economic concepts of ‘Marginal Propensity to
> Consume’105, which is ‘the fraction of a change in disposable
> income that is consumed,’ 106 and Marginal Diminishing
> Return, which states the more money a person spends on an
> item, the less satisfaction is obtained from the last unit of the
> money spent. 107 The larger the income earned, the higher the
> tax bill paid. Hence, the justification for this method is that a
> relatively limited level of income should be sufficient to lift
> every one above a convincing poverty line. This type of tax is
> now universally accepted as a fair and justified method of
> taxation and is practised by most governments to raise
> revenue for their expenditures. Ideally, for an effective
> performance, the tax system and good governance should go
> hand in hand.
> 
> John Sloman. Economics, p. 279. (The other two tax systems commonly
> known are: Regressive tax, defined as ‘A tax whose average rate with respect to
> income falls as income rises.’ And proportional tax defined as ‘A tax whose
> average rate with respect to income stays the same as income rises.’)
> Shoghi Effendi. Letter dated11 February 1944.
> Michael Parkin, Melanie Powell, and Kent Matthews. Economics, p. 640.
> Ibid.
> Ibid. p. 641.
> Economics and the Bahá’í Faith
> 
> In the following statement, ‘Abdu’l-Bahá explains the
> working of progressive income tax:
> Each person in the community whose need is equal to
> his individual producing capacity shall be exempt
> from taxation. But if his income is greater than his
> needs, he must pay a tax until an adjustment is
> effected. That is to say, a man’s capacity for pro-
> duction and his needs will be equalized and reconciled
> through taxation. If his production exceeds, he will
> pay a tax; if his necessities exceed his production, he
> shall receive an amount sufficient to equalise or
> adjust. Therefore, taxation will be proportionate to
> capacity and production, and there will be no poor in
> the community.108
> 
> It is clear from this passage that if a person’s income exceeds
> his expenditure, a tax is levied, and the proportion of tax paid
> depends on the level of income. However, a person is
> exempted from paying tax if his expenditure is greater than
> his income, in which case financial assistance will be
> provided. The future institutions and experts in charge of this
> matter will decide how this would be organized.
> 
> The Bahá’í Writings emphasise that accumulating wealth will
> be regulated and controlled by establishing laws. Through
> progressive income tax, help to the poor is ensured, and the
> more highly paid individuals will not accumulate excessive
> riches. Speaking on this subject, the vision of ‘Abdu’l-Bahá
> for an ideal and sensible society in the future is that ‘… the
> laws of the community will be so framed and enacted that it
> will not be possible for a few to be millionaires and many
> destitute.’109 However, a combination of government tax and
> spiritual principles such as justice, honesty, compassion,
> 
> ‘Abdu’l-Bahá. Promulgation, p. 217.
> Ibid. p. 216.
> Distributive Justice
> 
> truthfulness and trustworthiness lead to a more equitable
> distribution of income and wealth, and possibly a more
> balanced life-style in society.
> 
> A classic problem or view for the imposition of any tax is
> that it has a disincentive effect on effort and initiative. But,
> what is the Bahá’í position towards such views? In the
> context of the Bahá’í stand towards paying tax, three basic
> principles should be considered. First, although people have
> the right to accumulate wealth and own property, the Bahá’í
> Writings encourage the rich to care for the poor and needy
> and share their wealth for the betterment of the community. It
> is stated that ‘They who are possessed of riches, however,
> must have the utmost regard for the poor.’ 110 Second, the
> Bahá’í way of life is that able people should become a
> productive unit of society; it is stated that ‘…all must be
> producers.’ 111 So, irrespective of the level of taxation, all
> must be economically active. Third, as is discussed earlier,
> for a Bahá’í, work done in a spirit of service is considered as
> a form of worship. Therefore, the imposition of tax will not
> be a barrier to work and service in the community, nor it will
> create disincentive in a person.
> 
> The intention of progressive income tax is not to achieve
> complete economic equality, but to enable a government to
> provide an adequate welfare program and security and
> moderate comfort for all its citizens. Since the Bahá’í
> Writings consider extremes of wealth and poverty as life-
> threatening and a severe economic problem, the function of
> progressive income tax is to improve the standards of living
> of lower income groups by taxing the top income earners at
> 
> Bahá’u’lláh. Gleanings, p. 202.
> ‘Abdu’l-Bahá. Promulgation, p. 217.
> Economics and the Bahá’í Faith
> 
> higher rates in order to reduce the level of inequality.
> Alternatively, a government may increase economic well-
> being by increasing social welfare spending on programs that
> provide direct services to those who can otherwise not afford
> to fulfil their basic human needs such as food, shelter, and
> medical care. These programs alleviate the suffering of the
> poor and lead to a partial narrowing of the gap between rich
> and poor.
> 
> 4.7.5 Law of inheritance
> The law of inheritance is another Bahá’í principle for
> attaining distributive justice. This is another method by which
> the Bahá’í Writings ensure the prosperity of the community
> and the wider society, rather than a minority group. The
> Bahá’í Writings advocate a tax to be levied on inheritance:
> ‘…the greater the sum inherited, the higher the tax will
> be.’ 112 This may become another source of revenue for
> government spending on the wider society.
> 
> In his Book of Laws, The Kitáb-i-Aqdas, Bahá’u’lláh
> formulates the law of inheritance and divides the inheritance
> into seven categories, if no Will is prepared. ‘We have
> divided inheritance into seven categories: to the children, We
> have allotted nine parts comprising five hundred and forty
> shares; to the wife, eight parts comprising four hundred and
> eighty shares; to the father, seven parts comprising four
> hundred and twenty shares; to the mother, six parts
> comprising three hundred and sixty shares; to the brothers,
> five parts or three hundred shares; to the sisters, four parts or
> two hundred and forty shares; and to the teachers, three parts
> or one hundred and eighty shares.’ 113 Shoghi Effendi has
> 
> Shoghi Effendi. Letter dated 11 February 1944.
> Bahá’u’lláh. Aqdas, verse 20.
> Distributive Justice
> 
> clarified a number of issues concerning the law of
> inheritance:
> In cases where there is no issue [children] the share of
> the children reverts to the House of Justice to be
> expended on orphans and widows and for whatever
> will profit mankind. [And]...Should one leave
> offspring but either part or all of the other categories
> of inheritors be non-existent, two thirds of their shares
> reverts to the offspring and one third to the House of
> Justice.114
> 
> Reflecting on the Bahá’í law of inheritance, a number of
> issues need to be considered. First, it is important to note that
> Bahá’ís are encouraged to write a Will and are free to dispose
> of all their wealth as they wish. Second, female and male
> children get equal shares, but there are differences between
> father and mother, and brother and sister. Third, this law
> considers that the first preference of the deceased would be
> children rather than the spouse. These differences are
> associated with the role of individuals rather than the spirit of
> equality.
> 
> Reflecting on the significance of division of inheritance into
> seven groups, it is noted that this signifies the social function
> of wealth. This is apparent from several Writings of the
> central figures of the Bahá’í Faith. Shoghi Effendi exhorts
> that a Bahá’í should bear in mind the social function of
> wealth, consequently ‘avoiding its over-accumulation and
> concentration in a few individuals or groups of
> individuals.’115 It is obvious from the law of inheritance that
> the wealth of the deceased is not meant to stay with one
> individual, for instance the oldest son, as is customary in
> some societies, but is to be distributed among different
> 
> Shoghi Effendi. Cited in Aqdas, Synopsis and Codification, p. 153.
> Ibid. p. 182.
> Economics and the Bahá’í Faith
> 
> groups of people. Within each of these groups the wealth will
> be further distributed among individuals. In practical terms,
> by following this law the life of many people will improve,
> which will then have an effect on the wider society. Also,
> relating the notion of the social function of wealth to different
> categories of the division of inheritance, it is possible to
> argue that the reason for giving preference to children than to
> spouse is not meant for the spouse to be left without the
> means to live, but that it is expected that the children should
> look after their parents. Another issue of note is that not all
> seven categories are usually present and, consequently, a part
> of the wealth is paid to the Head of the Bahá’í Faith, the
> Universal House of Justice, and is spent on a variety of
> purposes for the benefit of the wider society. It also helps in
> the construction of many Bahá’í Houses of Worship in
> different countries, which will be used for the purpose of
> serving the whole community as well as worship. The last
> category of the division of inheritance signifies the
> importance of education by giving a share of the wealth to
> teachers. Therefore, it seems that the main focus of the
> founder of the Faith in division of inheritance is the
> application of the social function of wealth. However, to a
> great extent the application of this law requires the practice of
> compassion and love within the members of the family.
> 
> 4.7.6 Law of Ḥuqúqu’lláh (the Right of God)
> A unique and revolutionary spiritual principle mentioned in
> the Bahá’í scriptures for the redistribution of income and
> wealth is the law of Ḥuqúqu’lláh. ‘Ḥuqúqu’lláh’ is an Arabic
> word composed of two words, Ḥuqúq, meaning ‘Right’ and
> Allah, meaning ‘God’. Therefore, Ḥuqúqu’lláh means ‘the
> Right of God’. Ḥuqúqu’lláh, although a spiritual law, is
> subject to specific obligations and regulations. The law states
> that 19% of the earnings of a Bahá'í over a certain limit, and
> Distributive Justice
> 
> after all expenses have been paid belongs to God and should
> be paid to the head of the Faith, the Universal House of
> Justice. The importance of this law is stated in the Book of
> the Laws - The Kitáb-i-Aqdas as follows, ‘By this means [the
> Rights of God] He hath desired to purify what ye possess and
> to enable you to draw nigh unto such stations as none can
> comprehend save those whom God hath willed [emphasis
> added].’116 According to Alí Muhammad Varqá, the Trustee
> of Ḥuqúqu’lláh 117 , this law ‘constitutes the bedrock of an
> unprecedented spiritual economy.’118 Although observing ‘the
> Right of God’ is limited to Bahá’ís, and entrusted to the
> Bahá’í institutions, it is ultimately used for the betterment of
> the whole society.
> 
> The application of the law of Ḥuqúqu’lláh is to ensure the
> economic well-being of the whole society. Bahá’u’lláh states,
> ‘the payment of the Right of God is conducive to prosperity,
> to blessing, and to honour and divine protection.’ 119
> Therefore, if the payment of Ḥuqúqu’lláh brings prosperity
> and blessings, then Bahá’ís would try harder to fulfil those
> criteria. Also, the rationale is that no one accumulates wealth
> without paying one’s dues to society. According to Alí
> Nakhjavání 120 all the wealth belongs to God. Hence, when
> one works for acquiring wealth, one must pay a portion of it
> to God, in this case 19% of the surplus wealth, to be used for
> the benefit of all. According to Varqá, the rationale of the law
> is the inception of an evolutionary process, which, in the
> 
> Bahá’u’lláh. Aqdas, verse 97.
> The operation of the institution of ‘Ḥuqúqu’lláh’ is under the Board of Trustees
> and the head office is in Haifa, Israel. There are representatives of Huqúqu’lláh in
> each country to administer the affairs of this law.
> Alí Muhammad Varqá. Ḥuqúqu’lláh Newsletter, no. 2, p. 2.
> Bahá’u’lláh. Quoted in Compilation of Compilations, Compiled by Research
> Department of the Universal House of Justice, Haifa: Bahá’í World Centre
> Publication, 2000, no. 1104.
> Alí Nakhjavání. Ḥuqúqu’lláh, Bahá’í Summer School, Germany, 2005.
> Economics and the Bahá’í Faith
> 
> course of ages and centuries to come, assists everyone in
> adopting a moderate way of living. He points out that the law
> ‘contributes to the establishment of an equilibrium in the
> socio-economic life of those who dwell on earth, thereby
> eliminating extreme wealth and poverty.’ 121 Consequently,
> the rationale of the law of Ḥuqúqu’lláh is in its altruistic
> nature towards the wider society.
> 
> Calculating the payment of Ḥuqúqu’lláh , the law states that
> ‘Should anyone acquire one hundred mithqáls of gold,
> nineteen mithqáls thereof are God’s and to be rendered unto
> Him.’ 122 The following explanation is necessary to clarify
> how much of net income should be paid as Ḥuqúqu’lláh. In
> this calculation, Mithqál is used as a unit of mass:
> The basic sum on which Ḥuqúqu’lláh is payable is
> nineteen mithqáls of gold. In other words, when
> money to the value of this sum hath been acquired, a
> payment of Ḥuqúq falleth due. Likewise, Huqúq is
> payable when the value, not the number, of other
> forms of property reacheth the prescribed amount.
> Huqúqu’lláh is payable no more than once. A person,
> for instance, who acquireth a thousand mithqáls of
> gold, and payeth the Ḥuqúq, is not liable to make a
> further such payment on this sum, but only on what
> accrueth to it through commerce, business and the
> like. When this increase, namely the profit realized,
> reacheth the prescribed sum, one must carry out what
> God hath decreed. Only when the principal changeth
> hands is it once more subject to payment of Huqúq, as
> it was the first time. The Primal Point hath directed
> that Ḥuqúqu’lláh must be paid on the value of
> whatsoever one possesseth; yet, in this Most Mighty
> Dispensation, We have exempted the household
> furnishings, that is such furnishings as are needed, and
> 
> Alí Muhammad Varqá. Ḥuqúqu’lláh Newsletter, no. 2, 1997, p.2.
> Bahá’u’lláh. Aqdas, verse 97.
> Distributive Justice
> 
> the residence itself.123
> 
> It is possible to identify a number of economic benefits that
> individual Bahá’ís and the whole society may receive through
> the application of Ḥuqúqu’lláh . The most important one is
> that Bahá’u’lláh has established a permanent and self-
> regulating source of income for the Bahá’í institutions but has
> based it on the spiritual maturity of his followers. Through
> Ḥuqúqu’lláh, the institutions can carry out their
> responsibilities and activities, whether these are looking after
> the poor, the orphans, the Bahá’í holy places, carrying out
> humanitarian work during disasters, or organising and
> coordinating different developmental projects for the benefit
> of the whole society. All these activities increase the wealth
> of the society. Therefore, there would be greater possibilities
> for community development, social welfare and the
> improvement and maintenance of the infrastructure, which in
> turn will affect the wider society. Likewise, the law assists
> individuals in learning how to budget and control their
> income and expenditure, and in considering the altruistic
> nature of the law of Ḥuqúqu’lláh rather than self-interest.
> Commenting on this, Bahá’í scholar Ramin Khadem
> describes the unique role of the law of Huqúqu’lláh as ‘a
> model for the transformation of a society centred on self to
> one focused on the well-being of humanity.’124 In a similar
> statement Alí Nakhjavání maintains that the law is
> ‘established to facilitate cooperation and reciprocity among
> human beings.’125
> 
> In addition to its economic implications, the law of
> Ḥuqúqu’lláh provides a number of spiritual incentives to
> 
> Bahá’u’lláh. Aqdas, note 78.
> Ramin Khadem. Huqúqu’lláh Newsletter, no. 2, 1997, p. 3.
> Alí Nakhjavání. Bahá’í Summer School, Germany, 2005.
> Economics and the Bahá’í Faith
> 
> Bahá’ís. For example, it allows Bahá’ís to learn about moral
> virtues such as generosity, truthfulness, detachment, sacrifice
> and compassion. In practising this law, individuals would be
> their own trustees, as they are not individually asked to pay
> Ḥuqúqu’lláh and it is their own responsibility to do so.
> Observing this law in order to purify one’s personal wealth
> would also have a positive impact on future generations and
> one’s offspring. Therefore, although, Ḥuqúqu’lláh is a ‘law’,
> the spiritual aspect of this law surpasses the material aspect.
> 
> Despite the spiritual and economic benefits, the law of
> Huqúqu’lláh may be questioned or challenged. For example,
> those Bahá’ís whose income does not reach the level to be
> qualified to pay the Right of God, would be deprived of
> receiving blessings and divine protection, and this would not
> be fair, particularly as they may never have the opportunity to
> reach to such a level of income. In response to this query, I
> will consider the following justifications. First and the
> foremost is that this law, according to Bahá’u’lláh, is ‘to
> purify one’s riches and earthly possessions.’126 Therefore, it
> can be argued that those who do not have riches, do not need
> to purify them. Second, this law is indeed kindness from God,
> as the money will be used to help the very people who are
> incapable of paying the Ḥuqúq. Bahá’u’lláh, denounces any
> perceived lack of love for the poor: ‘say: I swear by God! No
> one is despised in the sight of the Almighty for being poor.
> Rather he is exalted, if he is found to be one of them who are
> patient.’ 127 Third, if there were still any doubts about the
> position of the poor in this regard, Bahá’u’lláh further affirms
> that ‘those that are unable to pay will be invested with the
> ornament of His forgiveness.’ 128 ‘Abdu’l-Bahá further
> 
> Bahá’u’lláh. Quoted in Huqúqu’lláh, p. 3.
> Ibid. p. 7.
> Ibid. p. 10.
> Distributive Justice
> 
> clarifies:
> Know thou, moreover, that those who Faithfully serve
> the All-Merciful will be enriched by Him out of His
> heavenly treasury, and that the Ḥuqúq offering is but a
> test applied by Him unto His servants and
> maidservants. Thus, every true and sincere believer
> will offer Ḥuqúq to be expended for the relief of the
> poor, the disabled, the needy, and the orphans, and for
> other vital needs of the Cause of God, even as Christ
> did establish a Fund for benevolent purposes.129
> 
> It must be noted that according to Varqá and Nakhjavání the
> concept of Ḥuqúqu’lláh is not the same as a system of
> taxation. Although this law is obligatory on those whose
> savings exceed a minimum amount, it is only acceptable if it
> is given in a spirit of joy and radiance. Although a spiritual
> obligation, this law’s effectiveness depends on the spiritual
> maturity of the individual. In contrast, taxation is compulsory
> in nature, and is imposed on individuals. Thus, ‘the Right of
> God’ cannot be considered the same as taxation. Also, the
> Right of God is different from other forms of donations such
> as ‘earmark’ or ‘general contributions’ practiced in the
> Bahá’í community. The Trustee of Huqúqu’lláh has clarified
> this aspect of the law and explained the differences:
> The payment of Ḥuqúqu’lláh            is based on
> calculations on one’s income, whereas contribution to
> the Bahá’í funds is left to the free wish and eagerness
> of the believers. The Right of God cannot be
> earmarked for some specific purpose. It is entirely at
> the disposal of Marjá-i-Amr, or the focal point of
> authority 130 , to which all must turn, while other
> contributions could be earmarked for other purposes,
> according to the wish of the contributor.131
> 
> ‘Abdu’l-Bahá. Quoted Huqúqu’lláh, p. 15.
> Marjá-i-Amr, or the focal point of authority in this statement refers to the
> Universal House of Justice.
> Alí Muhammad Varqá. Huqúqu’lláh News Letter, no 2, 1997, p. 2.
> Economics and the Bahá’í Faith
> 
> Bahá’u’lláh proclaimed the application of this law in The
> Kitáb-i-Aqdas in 1873, and the House of Justice announced
> its worldwide application in 1992. Those who observe this
> law must have Faith in Bahá’u’lláh. Therefore, observing the
> Right of God is limited to Bahá’ís only. The education and
> understanding of the law and its application is a gradual
> process for the Bahá’í communities throughout the world.
> One of the responsibilities of the ‘institution of Ḥuqúqu’lláh’
> is the education of Bahá’ís to better understand this law.
> However, even in this early period of the development of the
> Bahá’í community, Khadem maintains that ‘the practice of
> the law, however small in scale, is already working in the
> Bahá’í community.’132
> 
> 4.7.7 Contribution to the Bahá’í Fund
> The concept of ‘contribution’ is introduced in the Bahá’í
> Writings as a means of financing Bahá’í activities, as an
> alternative way for channelling the redistribution of income
> and wealth, and to balance standards of living in a
> community. Addressing Bahá’ís, Shoghi Effendi writes: ‘ our
> contributions to the Faith are the surest way of lifting once
> and for all time the burden of hunger and misery from
> mankind.’ 133 Also, like any other organization, the Bahá’í
> community has expenditures and requires material means to
> carry out its activities. These are paid only by general
> participation and support of Bahá’ís. The term ‘Bahá’í Fund’
> is used in relation to the income and expenditures of Bahá’í
> institutions.
> 
> There are three major Funds in the Bahá'í Faith. The local
> Fund supports the teaching activities, consolidation and
> administrative work of each local Bahá'í community. Local
> Ramin Khadem. Huqúqu'lláh News Letter, no. 4, 1996, p. 3.
> Shoghi Effendi. Letter dated 8 December 1947.
> Distributive Justice
> 
> Funds also provide support to the National and International
> Funds when capable of doing so. The national Fund supports
> the Bahá’í National Spiritual Assembly to direct, stimulate
> and coordinate its activities throughout the country. This
> Fund is a major support to the Bahá'í International Fund as
> well as offering assistance in the fulfilment of overseas goals
> assigned by the Universal House of Justice to each country.
> When needed, the national Fund also provides assistance to
> local funds. The International Fund supports many activities
> throughout the Bahá'í world. Some National Spiritual
> Assemblies depend upon its support. The ‘Holy Shrines,’134
> the ‘Arc Buildings,’ 135 and other properties at the Bahá’í
> World Centre, as well as all the administrative activities of
> the Bahá’í World Centre, receive assistance from this fund.
> 
> According to Shoghi Effendi, a very important part of the
> Bahá’í administration, which he refers to as ‘The Life Blood
> of the Cause of God’136, is ‘the Bahá’í Fund’. It combines the
> spiritual and material strengths of individual Bahá’ís and tests
> their loyalty when it comes to parting with their money in
> order to advance the community. Therefore, the Bahá’í Fund
> can be considered as the bedrock of the administrative order.
> One of the distinguishing features of the Bahá’í Faith, as
> described by the Universal House of Justice, is its principle of
> non-acceptance of financial contributions for its own
> purposes and activities from non-Bahá’ís. Shoghi Effendi
> says that the Bahá’í institutions can best function and be
> maintained ‘by the support of those who are fully conscious
> of, and are unreservedly submissive to, the claims inherent in
> 
> The Holy Shrines are the Shrine of Bahá’u’lláh in Akka, and Shrines of the
> Báb and ‘Abdu’l-Bahá in Haifa, Israel.
> The ‘Arc Buildings’ are located at the Bahá’í World Centre in Haifa and
> includes: the seat of the Universal House of Justice, The International Teaching
> Centre, The Bahá’í International Archive, and The International Research Centre.
> Shoghi Effendi. Bahá’í Administration, p. 198.
> Economics and the Bahá’í Faith
> 
> the Revelation of Bahá’u’lláh.’ 137 However, Shoghi Effendi
> explains that when non-Bahá’ís are eager to contribute to the
> Bahá’í Fund, those donations can be accepted for
> philanthropic and charitable purposes, such as spending on
> social and economic development programs that benefit the
> wider society.
> 
> Another important feature of the Bahá’í Fund is that the
> contribution is voluntary and there is a sacred obligation for
> every Bahá’í to consciously give to the Fund. The amount
> contributed, however, is immaterial, purely private and
> confidential and there should not be any kind of compulsion
> attached. Shoghi Effendi particularly stresses the strict
> voluntary nature of contributions to the Fund, to a point that
> he considers the slightest, even indirect form of compulsion
> ‘strikes at the very root of the principle underlying the
> formation of the Fund ever since its inception.’ 138 He also
> stated, ‘it is the sacred obligation of every conscious and
> Faithful servant of Bahá’u’lláh who desires to see his Cause
> advance, to contribute freely and generously.’ 139 Thus, it is
> clear that the amount paid is not as significant as the spirit of
> giving. In this passage, the word ‘freely’ needs to be
> emphasised, as all eligible members of the Bahá’í community
> must contribute by their own free will and not through
> coercion. The contribution to the Bahá’í Fund should be
> according to one’s ability and means.
> 
> Bahá’u’lláh has accepted the Islamic law of Zakát as another
> source for wealth redistribution. The word Zakát means both
> purification and growth. This is one of the basic principles of
> Islam and the idea is that wealthy Muslims should put aside
> 
> Shoghi Effendi. Quoted in The Life Blood of the Cause, pp. 2-3.
> Shoghi Effendi. Bahá'í Administration, p. 101.
> Ibid. pp. 41-42.
> Distributive Justice
> 
> 2.5% of their wealth for helping the poor and needy. The
> Islamic belief is that the act of giving Zakát purifies one’s
> wealth to gain God’s blessing and to make it grow in
> goodness. The principle states that all things belong to God,
> and wealth is therefore, held by human beings in trust. The
> Holy Qur’an states, ‘That I shall ordain for those who have
> God-consciousness and give their Zakát and those who
> believe in Our Signs.’ 140 But what is the application of the
> law of Zakát in the Bahá’í community? Nakhjavání’s view is
> that ‘at this stage of the development of the Bahá’í
> community the law of Zakát, and the principle of contribution
> to the Bahá’í Fund are merged until the Universal House of
> Justice in the future make alternate decision about its
> application.’141
> 
> 4.8     Application of Bahá’í teachings on wealth
> redistribution
> A number of Bahá’í scholars have expressed their views
> concerning the application of Bahá’í teachings on wealth
> accumulation and redistribution. Bryan Graham’s view is that
> any discussion of the application of Bahá’í teachings on
> economics would best occurs within the context of a Bahá’í
> commonwealth (see chapter 5, section 5).142 John Huddleston
> makes a similar argument that the Bahá’í views on economics
> acquire real meaning only when considered in the context of
> a Bahá’í civilisation. 143 The principle of ‘progressive
> taxation,’ which is accepted in the Bahá’í literatures as a
> suitable method for wealth redistribution, is now widely
> established and put into practice by most governments in the
> 
> Prophet Muhammad. Qur’an, Soltani (ed.), Alámieh Islamieh Publication,
> Tehran, 1957. Surah Al-A`raf 7:155.
> Alí Nakhjavání. Huqúqu’lláh, Bahá’í Summer School, Germany, 2005.
> See: Bryan Graham. Bahá’í Studies Review, p. 2.
> See: John Huddleston. Search for a Just Society, p. 5.
> Economics and the Bahá’í Faith
> 
> world. The principle of ‘profit sharing’ is growing in
> recognition and is practised by a number of organizations.
> Many of the Bahá’í spiritual teachings on wealth
> redistribution are currently practised within the Bahá’í
> community. However, no data is available concerning the
> extent to which each one is practised. The important role of
> Bahá’í institutions in the process of educating the community
> towards better understanding of the meaning of wealth and
> the significance of spiritual principles on distributive justice
> cannot be overlooked. The institutions play an important part
> in channelling the application of Bahá’í teachings on wealth
> redistribution and understanding the concept of wealth in
> relation to purpose of life for a Bahá’í.
> 
> The responsibility for promoting and establishing economic
> justice    belongs     to    both    individual      and     the
> society. Individuals have the responsibility to do their part by
> making ethical decisions, such as having a moderate lifestyle
> or living a simpler life. At the same time, governments also
> have a responsibility to devise policies to ensure that all
> people have the adequate education and training to earn a
> living and that there are suitable employments and
> opportunities for them. The Bahá’í Writings state:
> It is the duty of those who are in charge of the
> organization of society to give every individual the
> opportunity of acquiring the necessary talent in some
> kind of profession, and also the means of utilizing
> such a talent, both for its own sake and for the sake of
> earning the means of his livelihood.144
> 
> Although the laws on the redistribution of wealth are not
> enforced on individual members of the Bahá’í community,
> their impact on raising the necessary funds for improving the
> well-being of the Bahá’í community and the wider society
> Shoghi Effendi. Directives, p. 74.
> Distributive Justice
> 
> cannot be underestimated. Emphasising the practicality of
> these laws, Ramin Khadem refers to the law of Ḥuqúq’u’lláh
> and maintains that ‘however small the scale of these
> teachings, the practice of these laws by the adherents of the
> Bahá’í Faith has already amply demonstrated that this model
> works.’145 The fact that the Bahá’í community worldwide is
> self-supported financially and no funds are accepted from
> non-Bahá’ís 146 , including individuals, organizations, and
> governments, shows that the law of Huqúqu’lláh and
> principles of contribution to the Bahá’í fund are working
> within the Bahá’í community in a global scale.
> 
> 4.9     Chapter conclusion
> This chapter explored the two foremost and interrelated
> factors of an unstable economy, which according to Bahá’í
> Writings are economic injustice and extremes of wealth and
> poverty. This chapter, also, examined the relationship
> between wealth redistribution and well-being as a
> fundamental requirement for establishing order in society.
> Distinctions were made between views on self-interest and
> selfishness. The Bahá’í literatures dismiss both views. A
> person with an attitude of self-interest does not like to share
> resources with others. Self-interest may lead to the
> accumulation of wealth, which is against the spirit of
> distributive justice and the growth and prosperity of the entire
> community. A number of principles dealing with distributive
> justice were identified and discussed, including ‘the law of
> inheritance’ and ‘the law of Huqúqu’lláh’ and the concept of
> ‘voluntary sharing’ and ‘contribution’ to the Bahá’í fund. The
> 
> Ramin Khadem. Huqúqu’lláh News Letter, no. 4, 1996, p. 3.
> There are several reasons for not accepting financial assistance from non-
> Bahá’ís. A person who is contributing to the Bahá’í fund must be a believer and
> contributing with genuine intention. Also, such assistance may create dependency
> issue, which may be political, and in this case Bahá’ís get distance from any
> activities associated with political affairs.
> Economics and the Bahá’í Faith
> 
> role of government is also crucial in distributive justice and
> the Bahá’í literatures support activities that are mainly
> administered by the state, such as ‘progressive taxation’, and
> the promotion of ‘profit sharing’. The Bahá’í view is that
> acquiring wealth is not immoral. Wealth is praiseworthy if it
> is earned honestly and spent sensibly in a way that benefits
> the common good. However, the concept of distributive
> justice advocates equity and not equality.
> 
> The theme of distributive justice has a direct impact on the
> purchasing power of individuals and families to buy goods
> and services. This requires a discussion of the pattern of
> consumption by people. The Bahá’í Writings encourage
> Bahá’ís to adopt a more sustainable pattern of living. Given
> the importance of consumer support for the survival and on-
> going success of organization, it is crucial that being ethical
> and sustainable towards consumer’s demand is regarded as
> one of the most important areas of business ethics. This
> subject will be considered in the next chapter under the theme
> sustainable consumption.
> 
> Sustainable Consumption
> 
> Chapter 5: Sustainable Consumption
> 
> The transition to sustainable consumption and
> production is part of a global enterprise which
> enables all individuals to fulfil their dual purpose,
> namely to develop their inherent potentialities
> and to contribute to the betterment of the wider
> community.1
> The Bahá’í International Community
> 
> 5.1     Introduction
> Classical economists recognized that the production of goods
> and services was not an end in itself, thus Adam Smith wrote:
> Consumption is the sole end and purpose of all
> production; and the interest of the producer ought
> to be attended to only so far as it may be
> necessary for promoting that of the consumer.
> The maxim is so perfectly self-evident that it
> would be absurd to attempt to prove it. But in the
> mercantile system the interest of the consumer is
> almost constantly sacrificed to that of the
> producer; and it seems to consider production,
> and not consumption, as the ultimate end and
> object of all industry and commerce.2
> 
> The relationship between production and distribution is
> essential to understanding consumption pattern. Experts in
> sustainable consumption, Mark Bevir and Frank Trentmann
> 
> Bahá’í International Community, Rethinking prosperity: Forging Alternatives to
> a culture of consumerism, 18th Session of the United Nations Commission on
> Sustainable Development.15 March 2010.
> Adam Smith. The Wealth of Nations, p. 877.
> Economics and the Bahá’í Faith
> 
> argue that ‘Mundane Consumption is a necessary and routine
> part of people’s lives, as is the exercise of choice in respect of
> a variety of relatively inconspicuous or ordinary products and
> service intrinsic to the maintenance of everyday life.’3 What
> is important about the consumption pattern in modern times
> is the complexity of the integration of people and nations
> trading in a global borderless market. The new consumer has
> access to different facilities such as the Internet for
> researching and purchasing products of one’s own choice
> from different sources and from every corner of this planet. A
> recent world population projection by the United Nations,
> from 1990 to 2150, indicates that with the increasing level of
> world population, the relationship between consumption and
> sustainability is becoming critical. Consumption consists of
> normative choices and a matter of value judgement. Value
> principles such as fairness, caring and compassion play an
> important part when consumers associate with others in an
> integrated market. 4 Moral principles are also important in
> making final decisions about choices. The main task of this
> chapter, therefore, is to discuss the role of moral incentives in
> sustainable consumption and to explore selected Bahá’í
> principles and their application to the Bahá’í lifestyle and,
> perhaps, as a model for study in the wider society.
> 
> 5.2     Bahá’í view on sustainable consumption
> How do we get from our present world condition to a more
> sensible, equitable, sustainable and prosperous world? This
> can be done through either ‘adjustment of means of
> livelihood in human society.’5 This requires a change in life
> 
> Mark Bevir, and Frank Trentmann. ‘Civic choices: Retrieving Perspectives on
> Rationality, Consumption, and Citizenship,’ 2008, in K. Soper and F. Trentmann
> (ed.), Citizenship and Consumption. Basingstoke: Palgrave, pp. 19-33, at 23.
> Neva Goodwin. ‘Consumption, Population, and Sustainability: Perspective from
> Science and Religion,’ The Transition to a Transition, pp. 245-265, at p. 260.
> ‘Abdu’l-Bahá, Promulgation, p. 216.
> Sustainable Consumption
> 
> style for both the poor and the rich. Or through ‘the
> readjustment of the economic laws for the livelihood of man
> …in order that all humanity may live in the greatest
> happiness according to their respective degrees.’ 6 Long
> before the Universal Declaration of Human Rights (1948)
> was made, the Bahá’í Writings emphasised on various
> aspects of human rights. The human rights are including
> living in dignity, free from needs, rights that are universal,
> indivisible, interconnected and interdependent, also the
> realization of the human rights of other people. The human
> rights to be free from poverty includes the right to an
> adequate standard of living, the right to work and receive
> wages that contribute to an adequate standard of living, the
> right to a healthy and safe environment, the right to live in
> adequate housing, the right to be free from hunger, the right
> to safe drinking water, the right to primary health care and
> medical attention in case of illness, and the human right to
> education for girls and boys. ‘Abdu’l-Bahá stated:
> Every human being has the right to live; they have a
> right to rest, and to a certain amount of well-being. As
> a rich man is able to live in his palace surrounded by
> luxury and the greatest comfort, so should a poor man
> be able to have the necessaries of life. Nobody should
> die of hunger...Let us try with all the strength we have
> to bring about happier conditions, so that no single
> soul may be destitute.7
> 
> The Bahá’í Writings provide a number of principles that,
> taken together with a basic spiritual transformation in society,
> show the pathway towards prosperity. A current economic
> assumption is that human happiness can be attained by
> increasing the wealth of the individual members of the
> society, which leads to maximising happiness and reducing
> 
> ‘Abdu’l-Bahá. Promulgation, p. 170.
> Ibid. Paris Talks, p. 134-135.
> Economics and the Bahá’í Faith
> 
> suffering. Hence, the root idea flowing from self-interest is
> consumer sovereignty and utility maximisation. 8 For many,
> prosperity lies in increasing consumption and each consumer
> according to utility theory will pursue his or her opportunities
> until the marginal cost of a transaction exceeds the benefits of
> it. Each person maximises utility or happiness subject to a
> number of constraints, including income. Thus, the economic
> theory for the free-market economy considers mainly
> monetary aspects of life and ignores other factors, such as
> those values that are essential for creating relationships
> among people, and those protecting the environment.
> 
> Hence, the root idea flowing from self-interest is consumer
> sovereignty and utility maximisation. It was argued earlier
> that self-interest belongs to the lower nature of human beings,
> ‘Abdu’l-Bahá states, ‘Its custodians should continually purge
> themselves of every trace of personal desire of interest and
> become wholly imbued with the spirit of love, of cooperation
> and genuine self-sacrifice.’9 The rationale, in the market, is
> that consumers know their interests best and can act to
> advance them through exchange. For many, prosperity lies in
> increasing consumption and each consumer according to
> utility theory will pursue his or her opportunities until the
> marginal cost of a transaction exceeds the benefits of it. Each
> person maximises utility or happiness subject to a number of
> constraints, including income. Thus, the economic theory for
> the free-market economy considers mainly monetary aspects
> of life and ignores other factors, such as those values that are
> essential for creating relationships among people, and those
> protecting the environment.
> 
> The notion is supported by the theory of utility maximisation, a view advocated
> by Jeremy Bentham and John Stuart Mill. Sinnott - Armstrong, Stanford
> Encyclopaedia of Philosophy, Edvard N. Zalta (ed.), Winter 2012 edition.
> ‘Abdu’l-Bahá, cited in Lights of Guidance, p. 35.
> Sustainable Consumption
> 
> On the one hand, consumption can be considered the
> destroyer of the product but on the other hand, it can mean
> sensible use of the product. It is the latter part that will be
> used in the context of this subject. Sustainable development
> is a condition that encourages people to use resources with
> consideration for the needs of others, preserving the
> environment, the well-being of animals, and protecting the
> rights of future generations. Hence, the notion of sustainable
> consumption is closely linked with the concept of sustainable
> living and sustainable development and can be conceptually
> divided into four components or four pillars of sustainability:
> ecological, sociological, economic, and spiritual. My working
> definition of sustainable living inspired by the Bahá’í
> scriptures is suggested as: the process of wise and just use of
> resources for producing goods and services that consider the
> basic human needs, while safeguarding nature for future
> generations. This definition considers a number of features
> and to a certain extent has built into it the characteristics of
> sustainable development, which encompasses both
> sustainable production and sustainable consumption. The
> most important aspect is the avoidance of wastages
> associated with the activities of production, distribution and
> consumption. Such assumption rules out the one sidedness of
> materialism as a necessary condition for well-being and
> prosperity. Eco-justice is suggested here as a method of
> achieving well-being and preventing wastage. It refers to
> observing eco-well-being for humans and for nature. In the
> broadest sense, prosperity is attained through eco-well-being.
> The definition also supports a number of Bahá’í Writings,
> including the followings: ‘We see you increasing every year
> your expenditures, and laying the burden thereof on your
> 
> Economics and the Bahá’í Faith
> 
> subjects;’10 ‘the preservation of the world of being;’11 ‘Verily
> the most necessary thing is contentment under all
> circumstances;’ 12 and ‘the consciousness of world
> citizenship.’13
> 
> Sustainable development ensures quality of life that compels
> wise use of resources, prevention of waste, effective use of
> renewable resources within their capacity for renewal and
> global equity, and justice in our actions in maintaining
> responsibilities towards others and the environment. This
> definition, along with government intervention, maintains a
> balance in lifestyle, which is the basis for sustainable living.
> This corresponds with the Bahá’í view that ‘Only when
> material and spiritual civilisation are linked and coordinated
> will happiness be assured.’ 14 The divers balancing acts in
> lifestyle according to David Crocker, expert in public policy
> and international development ‘depends on a person’s
> specific abilities, opportunities, and choices. What promotes
> and maintains balances often vary from person to person as
> well as from society to society.’15 The level of consumption,
> therefore, varies not only among different individuals and
> families, but also changes from place to place. The concept of
> sustainable consumption, thus, has a strong ethical
> component. This involves the exercise of justice and
> compassion in the sharing of resources between current and
> future generations. The definition also supports the view
> expressed by the Organization for Economic Cooperation and
> Development (OECD) stated in 2002:
> 
> Bahá’u’lláh. Gleanings, p. 253.
> Ibid. Tablets, p. 69.
> Ibid. Quoted in Bahá’u’lláh and the New Era, p. 108.
> Shoghi Effendi. World Order, p. 202.
> ‘Abdu’l-Bahá. Promulgation, p. 109.
> David Crocker. Quoted in Neva Goodwin, ‘Consumption and Well-being,’ The
> Transition to a Transition, pp. 207-219, at p. 214.
> Sustainable Consumption
> 
> Sustainable consumption is the use of goods and
> services that respond to basic needs and bring a better
> quality of life, while minimising the use of natural
> resources, toxic materials and emissions of waste and
> pollutants over the life-cycle, so as not to jeopardise
> the needs of future generations.16
> 
> Consumers are obviously one of the most important
> stakeholders for any organization, because without the
> support of customers or a demand for commodities,
> organizations would be unlikely to survive. Customers are
> not just those who buy finished products, but also all
> organizations and manufacturers that purchase resources and
> necessary equipment for the provision of goods and service.
> 
> An examination of the terms ‘needs’ and ‘wants’ would be
> useful for this discussion. Traditionally, scarcity of resources
> is considered as a fundamental economic problem. As
> resources are scarce, consumers have to make choices. For
> consumers, these choices are in terms of what to consume,
> and how much to consume. Needs are essential and must be
> provided at all times. However, it is not possible to satisfy all
> human wants at all times, because as one is satisfied another
> appears. This is particularly obvious in markets for
> innovative products such as TVs, mobile phones, computers
> and children’s toys. Therefore, although it is possible to
> satisfy human needs, it may not be possible to satisfy all
> human wants due to finite resources and infinite wants.
> Economists consider this phenomenon as ‘the insatiability of
> human wants.’ 17 In this sense, the economic problem is
> insoluble. The problem of insatiability of human wants has
> been the subject of much discussion in economics. For
> example, Thorstein Veblen used the term ‘conspicuous
> 
> OECD, retrieved: <http://www.gdrc.org/sustdev/concepts/22-s-consume.html>.
> See: Beardshaw. Economics, p. 29.
> Economics and the Bahá’í Faith
> 
> consumption.’ The term refers to the tendency of people who
> want above the subsistence level, which he calls the ‘leisure
> class’. In more recent time Galbraith has pointed out that in
> most advanced industrial economies most people have gone
> beyond the level of physical necessity. According to
> Galbraith consumption had been the highest purpose of
> classical economic life, ‘the supreme source of Bentham’s
> happiness, the ultimate justification of all its effort and toil.
> With Veblen, it became in its fullest development a vacuous
> thing, a service to puerile personal aggrandizement.’ 18
> Galbraith, then, raises the question, which is the focus in the
> Bahá’í Writings, as well: ‘Is consumption the highest purpose
> of what the economic system is really about?’19 According to
> Arthur Dahl, the issue of consumption to a Bahá’í ‘comes
> down to each person’s definition of his or her purpose in life.
> If it is material, then material consumption becomes an
> important factor.’ 20 It is here that the purpose of life for a
> Bahá’í in relation to consumption of goods and services
> needs to be examined. The founder of this Faith made the
> purpose of life for Bahá’ís clear: He states, ‘One indeed is a
> man who, today, dedicateth himself to the service of the
> entire human race.’21 Esslemont writes, ‘When asked on one
> occasion: What is a Bahá’í? ‘Abdu’l-Bahá replied: To be a
> Bahá’í simply means to love all the world; to love humanity
> and try to serve it.’22 Based on these passages, if the purpose
> of life for a Bahá’í is such values as service to humanity and
> awareness of the needs of others, then the whole perspective
> changes. With such an attitude, everyone is mindful of others,
> 
> Galbraith. A History of Economics, p. 176.
> Ibid.
> Arthur Dahl. ‘Sustainable consumption and human prosperity,’ 2nd
> International Conference of the Environment Forum, 6-8 November 1998, De
> Poort, The Netherlands.
> Bahá’u’lláh. Gleanings, p. 248.
> Esslemont. Quoted in Bahá’u’lláh and the New Era, p. 71.
> Sustainable Consumption
> 
> and tries to serve others even if they are in one’s view,
> heedless. This leads to ensuring the preservation and
> availability of resources for a wider society, now and the
> future.
> 
> Arthur Dahl holds a visionary and creative view that in an
> ideal world those goods and services that are damaging to the
> ecosystem, and do not possess the features of sustainability,
> and are not in line with human dignity will be removed from
> the market. For Dahl, the list of such unnecessary and
> damaging commodities includes:
> Most military establishments and arms manufacture,
> industries supporting conspicuous consumption and
> luxury goods, the use of planned obsolescence as a
> tool to maintain sales, most advertising and excessive
> ‘brand’ competition and marketing gimmicks,
> commercial sports and some forms of entertainment,
> and such harmful products as pornography, drugs,
> gambling, alcoholic beverages, tobacco and possibly
> even meat. [Hence, he is raising a reasonable
> question] How much of the present economy would
> be lost if damaging, destructive or useless kinds of
> consumption were eliminated.23
> 
> But what will be the replacement suggested by Dahl for the
> economic losses of eliminating those commodities that are
> unnecessary or damaging to the environment? Examining
> some of the guiding principles of the founder of this Faith
> such as ‘to carry forward an ever advancing civilisation’24 ,
> and ‘human nobility’25, it is possible to argue that in an ideal,
> sensible and dynamic society, in the absence of unnecessary
> goods and services there will be opportunities for creating
> alternative products and services more valuable, beneficial
> 
> Arthur Dahl. ‘Sustainable consumption and human prosperity.’
> Bahá’u’lláh. Gleanings, p. 215.
> Ibid. Tablets, p. 173.
> Economics and the Bahá’í Faith
> 
> and befitting of human dignity such as additional social
> services, teaching opportunities, increasing the possibility of
> research and development and innovation in areas such as
> food and agriculture.
> 
> In a dynamic human society, Arthur Dahl believes that
> ‘sustainability is fundamentally a question of balance
> maintained over time. It is, thus, something that cannot
> easily be scaled and measured, since it is a quality of motion
> rather than a fixed point.’26 Hence, sustainability would be
> achieved when there are no forces to upset supply and
> demand and hence maintaining equilibrium condition through
> moral incentives. Dahl refers to examples such as ‘the limited
> size of a resource, inadequate supply inputs or excessive
> demand for outputs, damaging pressures such as
> pollution.’ 27    Consequently, most factors that cause
> unsustainability led to market imbalances. Dahl’s argument
> agrees with the Bahá’í Writings that the current socio-
> politico-economic and environmental problems are due to
> imbalances that exist between the material and spiritual
> aspects of life, and until material civilisation ‘becomes
> combined with divine civilisation, the desired result, which is
> the felicity of mankind, will not be attained.’28 Sustainability
> is, therefore, an attempt to take good care of the earth’s
> resources. It aims to meet the needs of this generation while
> protecting resources for future generations and at the same
> time, preserving and respecting the environment.
> Sustainability is a dynamic process, which affects us and is
> affected by us, thereby needing close attention and great care
> 
> Arthur Dahl. ‘Towards Indicators of Sustainable Development’, United Nations
> Environment Programme, 1995, retrieved:
> <http://www.un.org/earthwatch/about/docs/inddahl.htm >.
> Ibid.
> ‘Abdu’l-Bahá. Bahá’í World Faith, p. 116.
> Sustainable Consumption
> 
> in order for us to meet our own needs without upsetting
> others. It involves responsible use of finite resources.
> 
> Just as there is rapid and continuous economic growth and
> higher standards of living alongside increasing levels of
> income and capital investment that are rapidly growing and
> maximizing the returns to their owners, there is also rapid
> technological advancement overwhelmingly affecting world-
> trading relationships. One of the obvious examples of the
> impact of increasing know-how and technological
> development is mass production and consequently over-
> consumption by consumers as a symptom of the crisis of
> materialism, leading to unsustainability and accompanying
> challenges of consumerism. Globally, consumers are exposed
> differently with the experience of consumerism.
> 
> According to influential economist of 20th century Paul
> Krugman, the continual application of economies of scale by
> global producers using new technology means that many
> countries, including China, can produce very cheaply, and
> export surpluses. This, along with an insatiable demand for
> choice and variety, means that countries typically produce a
> variety of products for the global market, rather than
> specialize in a narrow range of products, rendering the
> traditional theory of comparative advantage almost obsolete.
> 
> 5.3    Challenges of consumerism
> The concept of the consumer and consumer society or
> consumerism sits at the centre of numerous current debates
> among     policy-makers,    marketers,   politicians, and
> environmentalists. Consumerism is representing by Gabriel
> and Lang as ‘a moral doctrine in developed countries; the
> ideology of conspicuous consumption; an economic ideology
> for global development; a political ideology; and a social
> Economics and the Bahá’í Faith
> 
> movement promoting and protecting consumer rights.’29 The
> culture of consumerism has created a competitive market, and
> misguiding consumers through manipulation of the market.
> This requires especial attention.
> 
> In recent times, a growing number of people have been
> enjoying higher standards of living, which led to the creation
> of ‘consumer society.’ In particular, in the periods between
> 1996 and 2011, forty countries moved from the lower income
> to the high-income categories. This is about 20% of the world
> population that moved from a ‘developing economy’ status in
> 1996 to Upper Middle/High Income status by 2011. In 1996,
> the World Bank classified about 58% of the world’s
> economies as low-income or developing, and by 2011 that
> percentage had fallen to only 39%. This signifies that
> millions of people have come out of absolute poverty and are
> now enjoying a better quality of life, particularly in China.
> David Dollar, who worked for five years as the World Bank’s
> Country Director for China and Mongolia in the East Asia
> and Pacific Region, states: ‘Poverty, inequality and social
> disparities during China’s economic reform declined’.
> Between 1981 and 2005 it is estimated that the poverty rate
> fell from 85% to 15%, roughly 600 million people relieved
> from poverty. 30 This pattern of change in employment and
> income earning is a factor, which led to consumerism. A
> major issue in consumerism is in relation to sustainability and
> the excessive level of consumption in developed countries,
> both at the individual level and collectively. This can become
> a bigger problem as the developing countries are progressing
> and joining the ranks of other consumer countries. Some
> 
> Yiannis Gabriel and Tim Lang. The Unmanageable Consumer, 2nd ed., London:
> Sage, 2006, pp. 85-86.
> See: David Dollar. Retrieved: <http://data.worldbank.org/topic/poverty >,
> [accessed: 12 December 2014].
> Sustainable Consumption
> 
> people in such countries will not be ready to give up the
> newly acquired benefits of economic growth in the name of
> justifying, for example, the climate change. Followings are
> some examples of consumerism and relevant issues gathered
> by Bahá’í expert in agriculture and sustainable consumption,
> Paul Hanley:
> Mass consumption of fast food unleashes a kind of
> trophic cascade of health, social, and ecological
> impacts. It is well established that the highly refined,
> high – carb western diet typified by fast food is a key
> driver of rapidly escalating health care cost.31
> 
> Hanley believes that mass consumption of fast food releases a
> kind of trophic cascade of health, social, and ecological
> impacts. According to him, while wealthy consumer societies
> rightly boast high longevity, the other side of that coin is the
> rise of chronic illnesses, with more than nine million
> Canadians – a quarter of the population – suffering from
> heart disease, diabetes, and cancer. Economists are relating
> these complications with the concept of marketing and its
> effects on consumers. Given these current issues, it is
> worthwhile re-examining the ethical basis for the consumer
> society and the marketing techniques and their effects on
> sustainability. It would also be important to include the
> science of climate change.
> 
> A definition of consumerism is useful to discuss the
> challenges of the term. With the advent of mass production
> and cost-effective channels of distribution, which are now
> possible through technological advancement and effective
> communication, the average person is immersed in the
> generation of income to purchase items in excess of basic
> needs. In some societies, this overall pattern of living has led
> 
> Paul Hanley. Eleven, Victoria BC: Friesen Press, 2014, p. 18.
> Economics and the Bahá’í Faith
> 
> to consumerism. Other similar terms used are ‘over-
> consumption’ and ‘consumer society.’ Consumerism
> increasingly dominates other aspects of life such as politics,
> education, health, and personal relations.
> 
> According to Matthew Hilton, specialist in social history,
> consumerism is ‘the absorption of social life into the world of
> commodities.’32 It is the full participation in modern society,
> or as a negative expression, such as stated in Vance Packard’s
> The Waste Makers where it was equated with ‘excessive
> materialism.’33 Ralph Nader in 1968 wrote in the New York
> Review of Books:
> Consumerism is a term given vogue recently by
> business spokesmen to describe what they believe is a
> concerted, disruptive ideology concocted by self-
> appointed bleeding hearts and politicians who find it
> pays off to attack the corporations. Consumerism,
> they say, undermine public confidence in the business
> system [and] deprives the consumer of freedom of
> choice.34
> 
> As Hilton points out ‘Subsequently, the term came to be used
> more positively, by the consumer movement itself, at it began
> to notice a series of campaigning successes in the early
> 1970s.’35 For Roger Mason ‘consuming for status has, in fact,
> become a defining element of the new consumer societies.’36
> 
> Ecological economist, Tim Jackson argues that consumer
> goods – from packaged foods and cars to electronics – have
> come to play a role in our daily lives that goes well beyond
> 
> Matthew Hilton. Consumerism in the 20th Century Britain, Cambridge:
> Cambridge University Press, 2003, p. 4.
> Vance Packard. The Waste Makers, New York, 1960, p. iii.
> Ralph Nader. Quoted in Hilton, Consumerism in the 20th Century Britain, p. 5.
> Matthew Hilton. Consumerism in the 20th Century Britain, p. 5.
> Roger Mason. The Economics of Conspicuous Consumption, p. vii.
> Sustainable Consumption
> 
> material functionality.37 Similarly, Philip Cushman refers to
> the extended ‘self’, which is ultimately an ‘empty self’ that
> stands in continual need of being filled up with food,
> stimulants, and consumer products. He argues that people are
> strongly influenced by social comparisons, thus the empty
> self is prey to powerful social forces and specific institutions
> over to the pursuit of consumerism. According to Cushman:
> Perhaps the most telling point of all is the rather too
> perfect fit between the continual consumption of
> novelty by households and the continuous production
> of novelty in firms. The restless desire of the empty
> self is the perfect complement for the restless
> innovation of the entrepreneur. The production of
> novelty through creative destruction drives and is
> driven by appetite for novelty in consumers.38
> 
> On the other hand, although the advent of globalization has
> benefited both the poor and the rich, the rapid and continuous
> economic growth has led to increasing the gap between the
> rich and the poor. This means that the wealth and prosperity
> of the rich has grown much faster than that of the poor.
> Economist Herman Daly has argued that consumerism and
> the consumer economy are founded on a philosophy of
> continuous economic growth, which he considered as
> uneconomic growth. Therefore, he supports a qualitative
> economic growth:
> Even though economies are still growing, and still put
> growth in first place, it is no longer economic growth,
> at least in wealthy countries, but has become
> uneconomic growth…the environment and social
> costs on increased production are growing faster than
> the benefits…The major job…is to overcome this
> denial and shift the path of progress from quantitative
> growth to qualitative development, from bigger to
> 
> Tim Jackson. Prosperity Without Growth, London: Earthscan, 2009, pp. 98-
> 102.
> Philip Cushman. Cited in Hanley, Eleven, pp. 26-27.
> Economics and the Bahá’í Faith
> 
> better.39
> 
> As Daly states, the rapid and unlimited economic growth that
> is taking place today in industrialised nations and in emerging
> economies, has led to a deluded consumer society. He argues
> that policies are needed to guide society towards a balanced
> material standard of living, and a more equitable distribution
> of wealth.
> 
> Within the current economic system of rapid economic
> growth, there is a risk of being locked into a form of
> development that is damaging to the environment in the long
> run. Commenting on this Wilkinson and Pickett argue that ‘as
> the rich countries reach the end of the real benefits of
> economic growth, we have also had to recognise the
> problems of global warming and the environmental limits of
> growth.’ 40 If consumerism continues in its current
> unsustainable state, it will require more resources to increase
> the level of output in order to meet related demands, leading
> to further environmental damage. Also, in causing high
> demand, consumerism can cause an increase in prices,
> leading to global inflation which will be added to the
> suffering of the poor.41 This, in turn, would cause additional
> suffering to the poor and widen the gap between the rich and
> 
> Herman Daly. ‘Rio plus 20 needs to address the downsides of growth,’ Natural
> Resources Forum, vol. 35, no. 4. P. 15.
> Richard Wilkinson and Kate Pickett. The Spirit Level, p. 11.
> As a result of consumerism and global inflation, the measurement of poverty
> based on $1 a day has increased to $1.90 a day. Poverty is measured using the
> international poverty line, which is a universal standard. It indicates the amount of
> income required to provide essential resources for survival. Since 2015, the World
> Bank’s new international poverty line was set at $1.90. The UN states that while
> global poverty rates have been cut by more than half since 2000, one in ten people
> in developing regions still lives on less than $1.90.
> Retrieved on 12 April 2021: < https://www.concern.org.uk/poverty-definition-
> statistics-and-causes?gclid=Cj0KCQjw38-
> DBhDpARIsADJ3kjljbQCVJ0oqx2FKXigdfl0Iqk2E3GuWtryYYB7LIz4jW1Vo
> CYjQeoUaAgRpEALw_wcB>
> Sustainable Consumption
> 
> the poor in both developed and developing countries.
> 
> Also, if we look at the massive rise in living standards and
> material wealth that accompanied economic growth in the
> developed world in the twentieth century, one of the key
> mechanisms involved was the strong association between
> those that produced and those that consumed. This led to
> employing increasing numbers of workers in factories and
> other production units, paying them a decent wage for a
> decent life and thus fuelling rising demand for more products
> as those workers become better off. Globalization has
> strengthened this process by creating a mechanism to link
> production and consumption, through outsourcing the
> production of Western consumer goods to companies in less
> developed countries. For example, workers in many less
> developed countries now primarily carry out the production
> of clothing and footwear for consumers in the developed
> world.
> 
> According to Barry Smart, with the exception of the last
> category all of the distinct uses listed are closely interrelated
> aspects of an ethos of consumerism that gathered momentum
> throughout the twentieth century with the accelerating global
> diffusion of the economic logic of modern capitalism in the
> West. Considering the modern life-style in the West and
> other developed countries, consumerism is represented by
> Gabriel and Lang with five characteristics, as: ‘a moral
> doctrine in developed countries; the ideology of conspicuous
> consumption; an economic ideology for global development;
> a political ideology; and a social movement promoting and
> protecting consumer rights.’42
> 
> Gabriel and Lang. The Unmanageable Consumer, 2006.
> Economics and the Bahá’í Faith
> 
> The Bahá’í Writings warned about consequences of the
> excess of consumer society and material civilisation and how
> it would lead society into crisis. Bahá’u’lláh said ‘If
> [materialism] carried to excess civilisation will prove as
> prolific a source of evil.’43 Some of the characteristics of the
> present materialistic civilisation would seem to fit this insight
> from the Universal House of Justice:
> Today the world is assailed by an array of destructive
> forces. Materialism, rooted in the West, has now
> spread to every corner of the planet, breeding, in the
> name of a strong global economy and human welfare,
> a culture of consumerism.44
> 
> Materialism, therefore, is the root cause of many social
> illnesses, consumerism being one. Hanley has explored this
> subject and noted numerous worrying examples of the
> present condition of the world associated with materialism.45
> Smart argues that global brands, developed mainly in the
> West, have successfully penetrated local cultures and
> attracted people around the world to consume this or that
> commodity by generating persuasive and appealing
> promotional lines and marketing messages. For example, ‘It’s
> the real thing’ (Coca-Cola), ‘Just do it’ (Nike), Impossible is
> nothing’ (Adidas), or the zeitgeist defining, ‘because you’re
> worth it’ (L’Oréal), which effectively exemplifies the egoistic
> individualism central to late-modern, materially acquisitive
> consumer culture.
> 
> It is fair to state that marketing has been praised in a number
> of ways. Through information, marketing provides customers
> can make more knowledgeable decisions than their
> predecessors about which products they want to meet their
> 
> Bahá’u’lláh. Gleanings, p. 342.
> Universal House of Justice. 2 April 2010.
> Paul Hanley. Eleven, pp. 8-9.
> Sustainable Consumption
> 
> needs and desires. Marketing is also praised for contributing
> to the economics of developing nations. It brings them goods,
> services, and knowledge of products that they would
> otherwise not have. Marketing, particularly as a social
> marketing has been praised. Marketing techniques, when
> used by social marketers, have addressed social concerns,
> such as leprosy, DIDS, and forest fire. The results have been
> rather dramatic in some areas. Consequently, according to
> Brenkert ‘social marketers require a theory of individual and
> social welfare according to which they may justifiably act on
> behalf of the individuals they seek to benefit. 46 However,
> currently, social marketing lacks such a theory.
> 
> Advertising is about providing information, and according to
> Richard Pollay, the communication of values must be at the
> heart of advertising. Pollay considers that the saturation of
> everyday life with increased marketing communications, has
> generated an ideology of materialism in society to ‘institute
> in our culture an identification of consumption with
> happiness.’ 47 Values influences thoughts, feelings, and
> behaviour of people in different ways. Commenting on the
> role of value in marketing and advertisement Pollay writes:
> Values are desirable, by all definitions. Popular use of
> values is often loose, as though some people have
> values and others do not. Values should refer to those
> criteria and standards of judgment that govern both
> goals and behavior. We all have values, just as we all
> have motives, needs, or personality traits. We can be
> described or measured along common dimensions.
> Values are deemed among the dimensions of the deep
> structure of personality, influencing perceptions,
> attitudes, emotions, and behaviors. Specific value
> 
> George Brenkert. Marketing, Ethics, and Morality, California: Blackwell
> Publishing Ltd., 2008, p. 214.
> Richard Pollay. Journal of marketing, vol. 51, no. 3, July 1987, pp. 104-109, at
> p. 108.
> Economics and the Bahá’í Faith
> 
> dimensions, such as maturity, practicality, modesty,
> courtesy, dignity, health, popularity, freedom, pride,
> and security, are often ‘motherhood’ criteria endorsed
> by most people. Cultural values are inevitably largely
> shared values. What distinguishes individuals, then, is
> not the list of values they endorse, but the relative
> importance of those values. This value hierarchy
> influences thoughts, feelings, and behaviour when
> competing value considerations conflict, as they do in
> all but trivial decision situations.48
> 
> Therefore, value hierarchy is able to play important role in
> influencing consumer decision-making in expansion of
> marketing and global communications technologies that has
> led to an increase in demand for products such as satellite TV
> and the Internet. Such developments have initiated the
> promotion of a consumerist lifestyle and the vision of better
> standards of living, not just within national borders but also
> on a global scale. The promotion of a consumerist lifestyle
> has contributed to increasing demand not only by consumers
> but also by the private sector and government. These
> economic activities, according to Keynes, lead to increasing
> aggregate demand and hence the economic growth of a
> country. But to what extent will such a relationship between
> consumption and growth continue to exist in a global market.
> Expounding on this view, Andrew Crane and Dirk Matten
> write:
> Materialism and consumerism were often justified on
> the economic argument that increasing demand would
> lead to economic growth, which ultimately benefits
> all. In the global marketplace, however, even this
> basic relationship between consumption and growth
> appears to be under threat. This is due to the
> increasing dislocation of production and consumption
> 
> Ibid. p. 106.
> Sustainable Consumption
> 
> occurring under globalization.49
> 
> As pointed out by Arthur Dahl, one of the consequences of a
> consumer society is that the market produces a substantial
> number of products that are unnecessary or are in low
> demand. Similarly, consumer knowledge and information
> may not be at a level to realise the consequence of
> disadvantage goods and services, not making the right
> choices as a result. For instance, lack of education and in
> sufficient information about health makes people illiterate
> and poor in health. This manifest itself in an unsustainable
> lifestyle, which is detrimental to human life and to the
> environment. This, according to Dahl and Galbraith leads to
> serious disequilibrium or disparity in the market. Galbraith
> argues that:
> This disparity carries to the point where it is a cause
> of social discomfort and social unhealthy. The line,
> which divides our area of wealth from our area of
> poverty, is roughly, that which divides privately
> produced and marketed goods and services from
> publicly rendered services. Our wealth in the first is
> not only in startling contrast with the meagreness of
> the latter, but our wealth in privately produced goods
> is, to marked degree, the cause of crisis in the supply
> of public services.50
> 
> The assumption is that policy makers have failed to recognise
> the challenges of the market and of the consumerism
> Galbraith is talking about. Some of these challenges are:
> environmental risks, the misuse of the power of the
> multinational corporations, and lack of sufficient moral
> leadership. A particular challenge is misleading marketing.
> George Brenkert argue that ‘Marketing has been criticised
> 
> Crane and Matten. Business Ethics, Oxford, Oxford University Press, 2004, pp.
> 284-285.
> Galbraith. The affluent society, p. 186.
> Economics and the Bahá’í Faith
> 
> more generally as simply being wasteful, expending billions
> of pounds to persuade people to buy products they don’t
> need. It is accused of bringing about the commercialisation
> of society and human relations. It is reproached for
> promoting both materialism and consumerism.’ 51 Research
> done by Brenkert indicates that the problem of obesity is
> attributed, at least in part, to the marketing practices of fast-
> food producers and advertisers. This is due to unregulated
> capitalism and its offshoot, the free-market economy.
> Galbraith also believes that policy makers have failed to see
> the importance, and indeed the urgent need, of maintaining a
> balance between the two [control and coordination of the
> market].’52 A number of countries have already adopted the
> policy of regulating the market, such as the Competition
> Commission in the United Kingdom and the European Union.
> 
> The Bahá’í Writings provide a number of principles that,
> taken together with a basic spiritual transformation in society,
> show the pathway for sustainable living and guide
> communities towards a more sustainable future. One such
> belief is an understanding of human nature, which encourages
> us to re-examine who we are and what our purpose in life is?
> Universal and compulsory education, and the spiritual
> principle of moderation are strongly suggested in the Bahá’í
> Writings as a solution to the problem of materialism and
> consumerism.
> 
> 5.4     Importance of consumer education
> The two Bahá’í principles of harmonisation of science and
> religion and independent investigation of truth form the basis
> for inspiring Bahá’ís to make appropriate decisions about
> their choices of goods and services. Consumer education can
> George Brenkert. Marketing, Ethics, and Morality, p. 2.
> Galbraith. The affluent society, p. 186.
> Sustainable Consumption
> 
> provide people with the knowledge to consider the
> advantages and disadvantages of goods and services, or to
> distinguish between true and untrue advertisements.
> Knowledge and information are critical determinants of
> market efficiency. Therefore, the quality of information
> directly affects the ability of the market to meet society’s
> collective material needs.
> 
> The consumer determines the success and failure of every
> business organization. Consumers are the reason for
> continued production of a product and hence for a business to
> be sustained. The success of every marketing plan must begin
> with the consumer and depends on whether the marketing
> plan has considered consumer behavior. Without such
> consideration, the marketing plan would be a failure.
> Similarly, the success of all aspects of a product, including its
> price, quality, shape, color, size, taste, and distribution
> channel, depends on the satisfaction of consumers.
> Ultimately,     consumers       can     influence     producers,
> manufacturers, suppliers, and the middlemen to deliver goods
> and services according to consumer choice. Therefore,
> ‘consumer sovereignty’ is an expression that signifies the
> power of consumers to determine what goods and services
> need to be available in the market. In other words, it is mostly
> consumers who can determine the way in which resources are
> allocated. Keeping in mind that effective allocation of
> resources is one of the fundamental principles of economics,
> consumer education helps to allocate resources more
> effectively and efficiently. Under this condition, consumers
> become more responsible and vigilance towards resources
> and also people’s needs. Such an education is necessary
> because of the vulnerability factor of certain consumers such
> as income, age, education and health. Consumer education is
> also helpful when dealing with the issue of consumer
> Economics and the Bahá’í Faith
> 
> capability, for example freedom from limitation and rational
> decision-making. It also helps with comparability and the
> complexity of information that comes with the variety of
> marketing techniques. As the market becomes more
> competitive, there is also the issue of differentiating between
> products, which requires a certain level of knowledge and
> information to enable consumers to make a distinction
> between them. The authorities in the UK have taken a
> number of steps to assist ‘consumer education’ and thus
> influencing sustainable consumption.
> 
> Loudon and Bitta examining the impact of consumer
> education and write:
> Consumers stand to benefit directly from orderly
> investigations of their own behaviour. This can occur
> on an individual basis or as part of more formal
> educational programs. As we study what has been
> discovered about the behaviour of others, we can gain
> insight into our own interactions with the marketplace.
> For example, when we learn that a large proportion of
> the billions spent annually on grocery products is used
> for impulse purchase, and not spent according to pre-
> planned shopping lists, we may be more willing to
> plan our purchases in an effort to save money. In
> general, as we discover the many variables that can
> influence consumers’ purchases, we have the
> opportunity to understand better how they affect our
> own behaviour.53
> 
> What is learned from the above statement is that consumer
> behaviour can directly benefit consumers in a more formal
> sense. The knowledge acquired can serve as data and
> information for the development of educational programs
> designed to improve consumers’ decision-making regarding
> 
> Loudon, D. L. and Bitta, A. J. Consumer Behaviour – Concepts and
> Applications, pp. 19-20.
> Sustainable Consumption
> 
> products and services. As consumers become better informed
> about a sustainable lifestyle, they are inclined to demand
> products that are not exploitative. Consequently, successful
> organizations would be those that respond positively to
> demands. In an age of a materialistic attitudes and market
> complexity, consumer education is vital in improving
> decision-making. One advantage of the ability approach is
> that it recognises individual as well as social variation in the
> level of consumption needed to achieve a sustainable
> lifestyle.
> 
> In spite of the effectiveness of consumer education and the
> way it can influence firms to produce goods and services that
> are sensitive and sustainable, producers have the power to
> influence consumers through marketing techniques. In
> reference to private ownership which is a feature of the
> market economy Shoghi Effendi states, ‘In the Bahá’í
> economic system of the future, private ownership will be
> retained, but will be controlled, regulated and even
> restricted.’ 54 Therefore, the remedy suggested is through
> legislation and regulating the market, which can run
> alongside consumer education. In practice consumer
> protection laws are established in most countries under the
> banner of ‘consumer rights.’ In terms of an ethical
> consideration, we can define rights in relation to natural
> rights, which are those basic, important, undeniable, befitting
> entitlements that should be respected and protected at all
> times. The concept of rights was introduced and led to the
> United Nations Charter of Human Rights, issued in 1948.
> This has been a powerful standard for worldwide
> enforcement of various basic rights. The most recent
> manifestation of this is the Charter of Fundamental Human
> 
> From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi.
> Economics and the Bahá’í Faith
> 
> Rights for the European Union agreed in the Nice Treaty in
> 2000. In the United Kingdom Consumer Protection Law
> under the supervision of the Competition Commission and
> the Office of Fair Trade also protects consumers.
> 
> Consumer education, although necessary to achieve
> sustainability, is not sufficient. There are other areas that
> need to be considered. The issue is not about what product or
> how much of what product, but the question of why a
> product? Hence, the focus would be on why a product is
> needed, rather than what is needed. Increasing consumer and
> producer knowledge and responsibility greatly influence why
> a product is needed. For the consideration of the ‘why’
> question, the model of economic sustainability in chapter 7
> incorporates principles such as cooperation, moderation, and
> consultation.
> 
> In many instances, the lack of sufficient consumer knowledge
> and information leads to under-consumption of merit goods,
> and over-consumption of demerit goods. Merit goods55 with
> positive externality by definition are those goods and services
> that are valuable to an individual and valuable to the whole
> society, such as education and vaccination. In other words,
> the benefits to society exceed the private benefits. Demerit
> goods with negative externality are those that are unsafe to
> the individual and the whole society, such as the use of hard
> drugs and gambling. Similarly, there will be under-
> production and over-production, which consequently lead to
> shortages and surpluses of output. The consumers’ actions
> and producers’ reactions lead to a waste of resources, both
> human and physical. Consumer education, in this way, can
> greatly influence the market to allocate resources effectively,
> 
> John Sloman. Economics, p. 306.
> Sustainable Consumption
> 
> or in economic terms, achieve equilibrium. Consumers, if
> well informed, can shape the social impact of corporations,
> and even their size, through their expenditure decisions.
> Moral leadership is also needed in addition to consumer
> education for a sustainable mode of production. On a
> practical level, sustainability requires maintenance and social
> responsibility at both the individual and corporation level.
> Thus, consumer education, corporate social responsibility and
> sustainability go hand in hand.
> 
> A number of guiding principles influence Bahá’ís, as
> producers and consumers, to make right decisions about what
> to produce and what to consume. For example, the principle
> of universal and compulsory education assists Bahá’ís in
> making a distinction between merit goods and demerit goods.
> The principle of harmony between science and religion helps
> a Bahá’í to become conscious of the benefits a product offers
> not only to consumers but also its effects on the environment.
> The consciousness and realisation of the principle of oneness
> of humankind makes it possible to adopt a more sustainable
> lifestyle and save resources for the benefits of those in need,
> and a personal commitment and a wider loyalty to the whole
> of the human race. Such an attitude will effectively influence
> sustainable living. The theme of service is obviously crucial
> to the Bahá’í understanding of sustainable consumption.
> Service to humanity is closely associated with the ethical
> concept of compassion and caring. Compassionate people
> have deep awareness of the suffering of others. The Bahá’í
> model of consultation helps Bahá’ís, individually and
> collectively, to make well-informed decisions to live a well-
> balanced life. The Bahá’í Writings emphasises on the
> importance of the principle of moderation.
> 
> Economics and the Bahá’í Faith
> 
> 5.5     Significance of the principle of moderation
> Materialistic ideologies, including unregulated capitalism and
> ego-centred values, underpin the economic problems
> associated with over-consumption and consumerism. For
> example, economic growth, according to Keynes, relies on
> ever-increasing consumption as one of the components of
> ‘aggregate demand.’ 56 For genuine and effective action to
> tackle the problem of consumerism, therefore, economic
> theories such as the theory of demand in microeconomics
> (classical), and aggregate demand in macroeconomics (new-
> classical), and utilitarian theory, 57 which are money-
> orientated, would not be appropriate. These theories are
> inadequate to deal with the challenges of consumerism and
> establishing sustainable consumption.
> 
> Moderation is an economic sustainability that requires
> creating a balance between the lowest and the highest
> standards of living. One extreme is when ‘the rich enjoy the
> greatest luxury and comfort’58 and the other extreme is when
> ‘the poor are...in the state of abject need.’ 59 Therefore,
> moderation is a condition when ‘there will not be the
> abnormally rich nor the abject poor. The rich will enjoy the
> privilege of this new economic condition as well as the
> 
> For John Maynard Keynes, the components of ‘aggregate demand’ include:
> consumption, investment, government expenditure, and export minus import
> (AD=C+I+G+X-M). Increasing aggregate demand cause Gross Domestic Product
> (GDP) and hence the national income to rise. GDP is a measure of economic.
> Utilitarian also expressed the idea that we all should be in greatest happiness.
> The most eminent thinkers for this view are Jeremy Bentham, and John Stuart
> Mill. Utilitarian argued that to achieve ‘the greatest happiness for the greatest
> number of people’ income must be transferred from the rich to the poor up to the
> point of complete equality, to the point at which there are no rich and no poor.
> The reasoning according to utilitarian is that everyone has the same needs, and
> everyone has the same capacity to enjoy life. See: The Oxford Dictionary of
> Philosophy, p. 377.
> ‘Abdu’l-Bahá. Promulgation, p.132.
> Ibid..
> Sustainable Consumption
> 
> poor.’ 60 Hence, the economic description of moderation in
> this model is expressed as eliminating extremes of wealth and
> poverty.
> 
> For the purpose of this topic, we have to make a distinction
> between consumerism and living well. The Bahá’í Writings
> maintain the view that sustainability is associated with living
> well but requires living in ‘moderation’. There is a
> correlation between moderation and sustainable living;
> sustainable living is a life-style when one enjoys resources
> with consideration for other people, the environment and the
> future generation. The Bahá’í Writings suggest a life-style
> with moderation.
> 
> The word moderation can be defined as the action or an act of
> moderating; limitation; restriction; and a fixed limit. It is also
> described as the quality of being moderate in various senses,
> in reference to conduct, opinions, demands, and desires or
> their indulgence.61 Alternatively, moderation is avoidance of
> extremes, especially in one’s behavior. 62 Moderation at
> societal level is ‘avoidance of extremes,’ or more
> specifically, elimination of ‘ extremes of wealth and
> poverty.’ 63 In our day-to-day living, the application of
> moderation in relation to food is seen as eat simple,
> enjoyable, healthy, sustainable, lawful, and being thoughtful.
> Shoghi Effendi, referring to the Bahá’í economic system of
> the future, states that it is ‘A system that prevents among
> others the gradual control of wealth in the hands of a few and
> the resulting state of both extremes, wealth and poverty.’64
> 
> Ibid..
> See: Oxford English Dictionary. 2nd ed., p. 946.
> Ibid.
> Shoghi Effendi. Promised Day is Come, p. v.
> Ibid. Letter dated 28 October 1927.
> Economics and the Bahá’í Faith
> 
> The Bahá’í distributive justice is intended to control the
> excessive accumulation of wealth in the hands of few. A part
> of the total wealth will be distributed among the poor.
> However, this will be a gradual process. But will the
> principle of moderation help to eliminate the gap between the
> rich and the poor? An example would be that when people
> use all the good things that are created in abundance
> effectively, there will be no need for the production of
> unnecessary, damaging, and destructive products discussed
> earlier. In this way resources will be saved for improving the
> lives of the poor.
> 
> Moderation, if practised, can maintain a balance in the
> material and spiritual life of individuals, and at the same time
> it can be a solution to the societal problems associated with
> extremes. Moderation and lack of it can impact on all aspects
> of a society’s lifestyle, economics, environment and culture.
> For example, regarding the effect of moderation on the
> environment Arthur Dahl writes, ‘Moderation in consumption
> is necessary to stay within environmental limits.’65 To attain
> this balance, Bahá’ís are counselled that ‘In all matters
> moderation is desirable.’66 One may wonder if we spend and
> consume sensibly because of the economic conditions or
> because by doing so we acquire virtues. It is possible that we
> may be spending sensibly and practising moderation due to
> economic conditions; nevertheless, by exercising this
> principle, we acquire virtues. The moral implication is that
> one should be kind and compassionate and share with those
> in need and have empathy and understanding for those with
> inadequate living. It also requires protecting the environment
> 
> Arthur Dahl. ‘Science and Values as complementary foundations for consumer
> citizenship’, First International Conference of the Consumer Citizenship Network,
> UNESCO, Paris, 1-2 March 2004.
> Bahá’u’lláh. Tablets, p. 69.
> Sustainable Consumption
> 
> and respecting the future generation. All of these are virtuous
> qualities that one is require to apply in relation to others.
> Moderation necessitates control of one’s selfish desires and
> refraining from greed and self-indulgence. If we define the
> purpose of economics as an art of effective and efficient use
> of resources, then moderation and greed would be at the
> opposite poles. Greed leads to wastage of resources, while the
> aim of economics is the reduction and prevention of wastage.
> 
> Moderation also has important implications in economics
> through resource allocation. The exercise of moderation is
> commendable in all things including in trade. The lack of
> control on the growth and enlargement of organizations may
> lead to the creation of monopolies. The out-of-proportion
> expansion can be challenging for the economy and a
> disadvantage to the organization. One of the difficulties of
> such out-of-proportion expansion is the creation of monopoly
> power and its undesirable and harmful consequences which
> includes: wastage or lack of appropriate control over
> resources, problems of coordination and cooperation among
> various departments, and as a barrier to desirable
> competition. By desirable competition, I mean activities that
> are morally right and serve for the advancement of wider
> society. Since large companies hold a great share of the
> market, if they fail, the entire market would face crisis. Thus,
> a moderate expansion of trade appears to be safer for
> organizations and for the entire market.
> 
> The argument presented here is that moderation requires a
> limit to economic growth. However, the extent to which
> moderation is required for the progress of a country varies
> from one economy to another. In the initial stage, for
> example, an economy requires a faster and higher degree of
> economic growth to achieve reasonable take-off. Expert in
> Economics and the Bahá’í Faith
> 
> economic growth and development Walt Rostow considers
> five stages for economic growth. 67 Among them the stage of
> take-off is an important aspect of economic growth. This
> stage requires a substantial volume of resources of all kinds,
> including human, physical, and capital resources; plus,
> adequate saving and investment. Hence, the exercise of
> moderation may not be very helpful at this stage, particularly
> for less developed countries. Also, from an economic
> perspective, certain industries must remain large, called
> ‘natural monopolies’ 68 otherwise they will suffer from
> diseconomies of scale that is not beneficial to consumers and
> the wider society, such as water, gas and electricity
> companies.
> 
> The exercise of moderation varies among people and depends
> largely on individual and family circumstances such as the
> size of the family, employment, the level of earnings, and the
> pattern of individual and family life-style. What kind of
> moderation is suggested for those who are in absolute
> poverty? Once one crosses the boundaries of moderation,
> Bahá’u’lláh confirms ‘it will prove a source of evil.’ 69
> Economically, one can consider the term ‘evil’ in this
> passage as the production and consumption of those products
> that are unsustainable and bring about the wastage of rare
> 
> Michael Todaro. Economic Development, pp. 79-80. (Rostow wrote in the
> opening chapter of the stages of economic growth: the traditional society, the pre-
> conditions for take-off into self-sustaining growth, the take-off, the drive to
> maturity, and the age of the mass consumption.)
> Massimo Motta. Competition Policy: Theory and Practice, Cambridge:
> Cambridge University Press, 2004, pp. 12-13. (In some countries like UK
> monopolies are regulated and monitored under Competition Commission (CC).
> Monopoly is defined as a firm having more than 25% market share. CC also make
> recommendations such as seeking changes in the firms’ business practices,
> imposing price controls and even divestment. This introduces the possibility of
> structural interventions, which is more typical of regulatory regimes than
> competition policy.)
> Bahá’u’lláh. Tablets, p. 69.
> Sustainable Consumption
> 
> earth   resources,     environmental  degradation, and
> consumerism. Hence, even during a period of abundance,
> moderation is appreciated and recommended.
> 
> We should also make a distinction between a moderate way
> of life, simple living, and asceticism. Voluntary simplicity or
> simple living can be described as when individuals or
> families, by their own choice, reduce the consumption of
> goods and services to their basic needs, or avoid
> accumulation of wealth. Voluntary simplicity is different
> from a situation where individuals are poor and are forced to
> spend less, or have a simple life because, for example, they
> are unemployed. Simplicity, however, may not be
> constructive for economic reasons. For example, it may cause
> unemployment, slow economic growth, and less government
> revenue and its consequences on public services. However,
> voluntary simplicity adopted as an alternative way of life is
> very different from simplicity that is forced on people by
> poverty. This discussion focuses mainly on the voluntary
> choices available to those living in relative abundance, in part
> because much of the solution to poverty lies in the choices
> made by those who are not poor. It may be argued that lower
> consumption or simplicity may lead to high unemployment.
> However, the world is full of purposeful, productive and
> satisfying jobs waiting to be done in areas such as education,
> urban renewal, environmental restoration, childcare, and
> health care. In Bahá’í view a simple needs-orientated
> economy with the concept of moderation will be better able
> to address these urgent concerns.
> 
> A person may choose simple living for different personal
> reasons, such as health, an increase in quality time with
> family and friends, stress reduction, personal taste, a reaction
> to materialism and to support an anti-consumerist movement.
> Economics and the Bahá’í Faith
> 
> Simple living is not ‘living in seclusion or practicing
> asceticism.’ 70 Asceticism is not encouraged in the Bahá’í
> Writings. Obviously, most human beings, to some degree,
> experience physical suffering throughout their lives;
> however, it should not be invited or made into a way of life.
> The Bahá’í Writings discourage practicing asceticism, which
> is characterised by abstinence from worldly pleasures as a
> lifestyle. The concept of detachment is interpreted by
> ‘Abdu’l-Bahá as:
> Detachment does not consist in setting fire to one’s
> house, or becoming bankrupt or throwing one’s
> fortune out of the window, or even giving away all of
> one’s possessions. Detachment consists in refraining
> from letting our possessions possess us.71
> 
> ‘Abdu’l-Bahá, then, clarifies his interpretation of detachment
> by stating examples including ‘A prosperous merchant who is
> not absorbed in his business knows severance. A banker
> whose occupation does not prevent him from serving
> humanity is severed. A poor man can be attached to a small
> thing.’ 72 Explaining the two concepts of detachment and
> asceticism and their worldly benefits Shoghi Effendi writes:
> The standard inculcated by Bahá’u’lláh seeks, under
> no circumstances, to deny anyone the legitimate right
> and privilege to derive the fullest advantage and
> benefit from the manifold joys, beauties, and
> pleasures with which the world has been so plentifully
> enriched by an All-Loving Creator. "Should a man,"
> Bahá’u’lláh Himself reassures us, "wish to adorn
> himself with the ornaments of the earth, to wear its
> apparels, or partake of the benefits it can bestow, no
> harm can befall him, if he alloweth nothing whatever
> to intervene between him and God, for God hath
> ordained every good thing, whether created in the
> heavens or in the earth, for such of His servants as
> Ibid. p. 71.
> ‘Abdu’l-Bahá. Divine Philosophy, p. 135.
> Ibid.
> Sustainable Consumption
> 
> truly believe in Him. Eat ye, O people, of the good
> things which God hath allowed you, and deprive not
> yourselves from His wondrous bounties. Render
> thanks and praise unto Him, and be of them that are
> truly thankful.73
> 
> The legitimate privilege to derive the fullest advantage and
> benefit from the manifold joys, beauties, and pleasures of this
> world, according to Shoghi Effendi requires ‘the maintenance
> of…a high standard of moral conduct.’74 Maintaining such a
> high standard of moral conduct in all aspects of life, then it is
> left to the discretion of individuals to decide their degree of
> moderation, as this may vary from person to person.
> 
> 5.6     Human contentment and satisfaction
> It is contentment and not complacency that the Bahá’í
> Writings promote. The former is a virtue that harmonises the
> distributive function, while the latter may even impede the
> productive function and progress. Complacency is the
> expression of the lack of motivation to acquire and
> accumulate. The Bahá’í view is that society should be rich
> and not a minority of population. Society is more than just
> individuals. Materially, society consists of schools, hospitals,
> roads, and other infrastructures and services. At the societal
> level, the emphasis is ‘to ensure the welfare of the
> commonwealth’75 and at the individual level a Bahá’í should
> be content ‘with but little of this world’s goods.’ 76 The
> challenge, however, is how to be content with little of this
> world while considering wealth commendable. Do these
> contradict each other? It is argued here that the spirit of both
> concepts conveys the same meaning and that is a sustainable
> lifestyle.
> Shoghi Effendi. Advent, p. 44.
> Ibid.
> ‘Abdu’l-Bahá. Promulgation, p.181.
> Ibid. Bahá’í World Faith, p. 375.
> Economics and the Bahá’í Faith
> 
> What is the economic significance of being content with
> little? Viewed only from an economic perspective reducing
> consumption leads to a reduction in demand and hence in
> production. This has serious implications for employment,
> income, investment, and other aspects crucial to economic
> well-being and growth. Reducing consumption by developed
> nations means less export by developing countries. This is
> not adding to the economy of less developed countries, but
> makes it more fragile. Many multinational companies operate
> in those countries. Developed countries provide an important
> market for imported products from developing economies
> and reduced expenditure by developed nations will have
> serious implications on export in developing countries. To a
> great extent, consumer spending is an important means to
> bring an economy out of a slow economic activity, although
> the very expression ‘consumer society’ suggests
> disequilibrium and global market distortion. However, we
> can also argue that the Bahá’í view of being content with
> little and sharing the extra with the low-income group does
> not actually reduce economic activity because the increase in
> the economy caused by growth in the lower income group is
> more than the decrease in the economy caused by reducing
> consumption in the high-income group. This is true since the
> majority of the world’s population live in developing
> countries and are considered the lower income group.
> Therefore, there is a need for a new mind-set for both the
> lower and higher income groups for adopting a sustainable
> life style. However, there would be some economic
> implications when the lower-income group moves to the
> middle-income group as noted in recent years. These include
> increasing global inflation, shortage of resources, problems
> associated with consumerism, and market disequilibrium,
> which would have an undesirable impact on sustainability.
> Sustainable Consumption
> 
> Commitment to sustainable development necessitates a
> gradual and high degree of responsibility and moral
> obligation by people towards the essentials of sustainability.
> Within the Bahá’í community this is attained mainly through
> education. For moderation, contentment, and satisfaction with
> basic human needs to become feasible, these moral principles
> must be inculcated from a young age. The Bahá’í community
> considers the education of children as an important part of
> this process. The Universal House of Justice encourages
> Bahá’í parents ‘to rear children that see their own welfare as
> inseparable from the welfare of others.’77 A fundamental shift
> in perspective is needed, one that changes the way in which
> certain essential concepts are viewed: for example, the
> meaning of true happiness and prosperity, the true purpose of
> life, and the place that material pursuits should assume in
> one’s individual and family life. Bahá’í view is that the
> family unit offers an ideal setting where those moral qualities
> that contribute to a proper view of material wealth and its
> utilisation can be shaped.78 In this light, children should be
> raised in a culture of praising and practising moderation so
> that it becomes a part of their belief system. This would then
> turn into a cultural phenomenon, which in the long run would
> become natural and easy to employ.
> 
> Prosperity is a relative concept and has a cultural element. It
> may be argued that the first thing that comes to mind is
> having an adequate amount of income and wealth to become
> prosperous. However, perception of wealth is relative. For
> Arthur Dahl ‘there is an important cultural dimension to
> prosperity and the kinds of consumption used to signal
> 
> Universal House of Justice. 2 April 2010.
> See: the statement of the Universal House of Justice dated 2 April 2010.
> Economics and the Bahá’í Faith
> 
> prosperity.’ 79 He points out that for some with a lower
> income, food would be a preferred medium of expression; for
> others with a higher income, an automobile; and for some
> rural villagers, a school, a clinic or a church. Hence,
> prosperity can be expressed through personal consumption or
> at a community level through the provision of joint services.
> Either option can increase prosperity and happiness.
> 
> 5.7     Specific teachings on sustainable consumption
> All Faiths including the Bahá’í Faith have laws on the
> consumption of goods and services. There are a number of
> guiding principles available in the Bahá’í Writings for
> managing a sustainable consumption; these are discussed in
> the following section:
> 
> 5.7.1 Bahá’í law of Fasting
> Fasting is a teaching given by all major religions. Along with
> obligatory prayer, fasting is one of the greatest obligations of
> a Bahá’í. The Bahá’í fasting is the complete abstinence from
> both food and drink from sunrise to sunset during the Bahá'í
> month of ‘Loftiness’ for the period of 2-20 of March
> inclusive.
> 
> Fasting is symbolic. The basis for fasting is to obey the law
> and to remember the conditions of those who are suffering, as
> well as abstention from one’s worldly desires. Shoghi Effendi
> describes a number of features of Bahá’í fasting: ‘It is
> essentially a period of meditation and prayer, of spiritual
> recuperation.’ 80; this is a period that a Bahá’í ‘must strive to
> make the necessary readjustments in his inner life.’81 Thus, its
> significance and purpose are fundamentally spiritual in
> 
> Arthur Dahl. ‘Sustainable Consumption and True Prosperity’.
> Shoghi Effendi. Directives, p. 28.
> Ibid.
> Sustainable Consumption
> 
> character. ‘Fasting is symbolic, and a reminder of abstinence
> from selfish and carnal desires.’ 82 Through fasting, as a
> symbolic phenomenon, people learn to develop powers of
> self-control and self-restraint and resist any wrongdoing to
> bring about self-improvement. The deprivation brought about
> by fasting makes one sympathise with the suffering of others.
> It also makes people remember the blessings of life that they
> normally take for granted. Hence, the fast is not merely
> related to the body, but the spirit as well. According to John
> Esslemont the reality of the Bahá’í fast is not in abstaining
> from consumption of food ‘but in the abstention from the
> desires and lusts of the flesh, and in severance from all save
> God.’83
> 
> The economic significance of fasting is that it helps Bahá’ís
> reflect on their own consumption and the problems associated
> with over-consumption; practising moderation and perhaps
> being content with little. Also, it can help improve self-care
> and preservation of health. The Bahá’í teaching on fasting
> therefore helps believers to reflect and change their attitude
> towards their lifestyle and allows individuals to take an
> objective view of their habits and become aware of the needs
> of others. Charity and generosity are especially urged during
> the period of fasting.
> 
> 5.7.2 Bahá’í perspective on food and agriculture
> The Bahá’í Writings consider agriculture as a ‘vital and
> important matter.’84 The commitment of the central figures of
> the Bahá’í Faith to agriculture is evident from their ‘own
> agricultural endeavours and extensive discourse on the
> 
> Ibid.
> John Esslemont. Bahá’u’lláh and the New Era, p. 184.
> Bahá’u’lláh. Tablets, p. 90.
> Economics and the Bahá’í Faith
> 
> topic.’85 In one of His Writings Bahá’u’lláh has paid ‘special
> regard’ 86 to the matter of agriculture, acknowledging that
> agriculture ‘unquestionably precedeth’ 87 in importance to
> some other Bahá’í principles, referring to ‘peace’, ‘one
> common language’, ‘unity’, and ‘education’. 88 Similar
> statements about the importance of agriculture are seen in the
> Writings of ‘Abdu’l-Bahá. For example, He refers to
> agriculture as ‘the fundamental basis of the community,’ 89
> and a noble science,’ 90 the practice of which is an ‘act of
> worship,’ 91 and he encourages Bahá’ís to engage in
> ‘agricultural sciences.’ 92 He indicates that should an
> individual ‘become proficient in this field, he will become a
> means of providing for the comfort of untold numbers of
> people.’93
> 
> Paul Hanley raises some legitimate questions: ‘Why this
> ‘special regard’ for agriculture? Why should it take
> precedence over other principles such as the promotion of
> international peace or education?’94 One comment by Hanley
> is that ‘food is the prerequisite of human development.’ 95
> Without adequate food, nothing can be accomplished. Food is
> a requirement for human intellectual and physical
> development. It would be difficult to accomplish peace and
> security or even fellowship while masses of people starve.
> Paul Hanley. The Spirit of Agriculture, Oxford, George Ronald Publisher, 2005,
> p. vii.
> Bahá’u’lláh states: ‘Special regards must be paid to agriculture.’ Tablets, p. 90.
> Bahá’u’lláh. Tablets, p. 90.
> For the full Tablet of Bahá’u’lláh, see: Tablets, p. 89.
> ‘Abdu’l-Bahá. Quoted in Conservation of the Earth’s Resources, Compiled by
> the Research Department of the Universal House of Justic, Haifa: Bahá’í World
> Centre Publications, 1990, p. 12.
> Ibid.
> Ibid. Selections, p. 145.
> Ibid. Promulgation, p. 283.
> Ibid. Conservation, p. 12.
> Paul Hanley. The Spirit of Agriculture, p. vii.
> Ibid.
> Sustainable Consumption
> 
> Education is hardly possible when children are malnourished,
> and economic stability will not be attained if there is the
> frustration of hunger among multitudes of people. In all these
> circumstances lack of food is a major factor; hence, it must
> be provided.
> 
> The products of the land, however, has evolved from one
> stage to another, and from one place to another, depending on
> the demand for the product, the type of knowledge and
> technology used, the increase in population, and the
> ecosystem. Hence, it will be difficult to see any resemblance
> between agriculture in the time of Bahá’u’lláh in the 19th
> century and that of today and that in the future. However,
> from a Bahá’í perspective, whatever the changes, agriculture
> will remain as the basis of human society and of the whole
> economy.
> 
> When considering agriculture, there are still challenges that
> need to be faced and tackled. One such challenge is in
> countries with small pieces of land, such as Swaziland; others
> with heavy floods and an increasing population like
> Bangladesh; and some with poor quality of land or scarce
> resources such as Ethiopia and Sudan. Responding to these
> challenges, the Bahá’í Writings advocate a multi-dimensional
> approach. ‘Abdu’l-Bahá suggests using a combination of
> agriculture and other sciences such as manufacturing and
> technology, and the Universal House of Justice recommends
> to ‘promote the standard of agriculture and other skills in the
> life of the people.’ 96 The success of the role of modern
> technology and advanced transportation systems cannot be
> disregarded when discussing agriculture and food production
> and distribution.
> 
> Universal House of Justice. Letter dated 27 July 1976.
> Economics and the Bahá’í Faith
> 
> While there is great success in the modernisation of
> agriculture and food production in recent times, there are also
> tragic failures and challenges. Paul Hanley believes that the
> world’s food and agriculture system is the greatest
> achievement of civilisation. Stanley Wood writes ‘Today,
> agriculture provides more than 94% of the protein and 99%
> of the calories for 6 billion people.’ 97 Most of the human
> population explosion has occurred in the past one hundred
> years. Population has almost quadrupled since 1900, when
> there were 1.6 billion people. Since 1960 it has [more than]
> doubled, from 3 billion to 7 billion. Yet agriculture has more
> than kept pace. On average, food supplies are 24% higher per
> person today than in 1961 and real prices are 40% lower.
> Despite this success, extreme food deprivation is widespread.
> According to the Food and Agricultural Organization of the
> United Nations ‘Extreme food deprivation and plentiful food
> supplies in the world with excellent means of
> communications and transport, can only suggest that there are
> fundamental flaws in the way in which nations are
> functioning and the relationship between them are governed
> and managed.’ 98 A related challenge is food inflation, which
> is a significant negative feature of today’s economic
> environment. Food inflation has a great impact on quality of
> life, as people struggle to maintain nutritional standards that
> they had previously achieved, or give up some other forms of
> consumption so as to keep themselves well-fed.
> 
> Food plays a vital role not only in physical and intellectual
> development, but also in maintaining good health. ‘Abdu’l-
> 
> Stanley Wood. Quoted in Hanley, The Spirit of Agriculture, p. ix.
> Food and Agricultural Organization of the United Nations, ‘Fostering the
> Political Will to Fight Hunger’, Committee on World Food Security, Twenty-
> Seventh Session, Rome, 28 May -1 June 2001.
> Sustainable Consumption
> 
> Bahá explains the reason for having good health, He said:
> Looking after one’s health is done with two
> intentions. Man may take good care of his body for
> the purpose of satisfying his personal wishes. Or, he
> may look after his health with the good intention of
> serving humanity and of living long enough to
> perform his duty toward mankind. The latter is most
> commendable.99
> 
> However, dietary codes are not prominent in the Bahá’í
> sacred Writings. Bahá’u’lláh recommends: ‘Eat ye, O people,
> of the good things which God hath allowed you, and deprive
> not yourselves from His wondrous bounties.’ 100 In this
> passage Bahá’u’lláh not only encourages people to eat ‘good
> things’, he also reminds them that these are bounties from
> God and one need not deprive oneself of them. Rather than
> setting out detailed rules, the Bahá’í Writings have provided
> guidance and stress the responsibility of individuals to live a
> virtuous life. Emphasising on the principle of the harmony of
> science and religion, we may consider a kind of food that
> invokes the virtues of naturalness, simplicity, moderation,
> compassion and justice. Attention should be paid to
> moderation in order to help maintain a relatively healthy
> physical and mental state. Bahá’u’lláh affirms:
> In all circumstances, they should conduct themselves
> with moderation; if the meal be only one course this is
> more pleasing in the sight of God; however, according
> to their means, they should seek to have this single
> dish be of good quality.101
> 
> Of course, the concept of a one-course meal and a ‘single
> dish’ may have different interpretations depending on the
> country, culture or particular circumstance or occasion. What
> 
> ‘Abdu’l-Bahá. Star of the West, Vol. VIII, No. 18, p. 230.
> Bahá’u’lláh. Gleanings, p. 275.
> Bahá’u’lláh. Quoted in Lights of Guidance, p. 294.
> Economics and the Bahá’í Faith
> 
> is important is the consideration of moderation. Such an
> attitude towards food can have great economic implications.
> 
> Another significant economic implication related to food is
> the guidance of Bahá’u’lláh ‘…do not eat except when you
> are hungry.’102 This not only can have a significant impact on
> one’s physical well-being but also prevents obesity and the
> different illnesses and disorders which may result from it,
> such as hypertension, coronary heart disease, high cholesterol
> and diabetes. Therefore, the two principles in relation to food
> and physical well-being are (a) moderation, which signifies
> the amount of food one eats, and (b) the timing of having
> food, which is to eat when one is hungry. The practice of
> these principles will also lead to a reduction of wasted
> resources.
> 
> Having discussed the amount and timing of eating, the
> sustainability of the production process also plays an
> important role in economic well-being. However, it may be
> difficult to argue that consumers have an ethical
> responsibility to purchase sustainable products, for example
> when the cost difference between organic and non-organic
> food is substantial. Many consumers are simply unable to
> afford the high prices of organically farmed products. In
> practice, farmers will make decisions based upon the
> potential costs and benefits, while being mindful that
> consumers are now well informed and mostly capable of right
> purchase. Increasing pressure from the media, the
> government, the public and pressure groups, is resulting in
> changes in farming practices that may eventually ensure that
> all products are environmentally sustainable. It is worth
> mentioning that although in the Bahá’í Faith eating meat is
> Bahá’u’lláh. Quoted in Star of the West, vol. 13, no. 9, December 1922, p. 252.
> Tablet to Physician (Lawh-i-Tibb)
> Sustainable Consumption
> 
> not prohibited, and there are no directives to Bahá’ís to
> become vegetarian, Bahá’ís are advised that the natural
> human diet consists of grains, fruits and vegetables. 103
> ‘Abdu’l-Bahá confirms: ‘the time will come when meat will
> no longer be eaten…the people will gradually develop up to
> the condition of this natural food.’ 104 Elsewhere, ‘Abdu’l-
> Bahá explains the eating of meat will gradually ceased. He
> said:
> As humanity progresses, meat will be used less and
> less, for the teeth of man are not carnivorous. For
> example, the lion is endowed with carnivorous teeth,
> which are intended for meat, and if meat be not found,
> the lion starves. The lion cannot graze; its teeth are of
> different shape. The digestive system of the lion is
> such that it cannot receive nourishment save through
> meat. The eagle has a crooked beak, the lower part
> shorter than the upper. It cannot pick up grain; it
> cannot graze; therefore, it is compelled to partake of
> meat. The domestic animals have herbivorous teeth
> formed to cut grass, which is their fodder. The human
> teeth, the molars, are formed to grind grain. The front
> teeth, the incisors, are for fruits, etc. It is, therefore,
> quite apparent according to the implements for eating
> that man's food is intended to be grain and not meat.
> When mankind is more fully developed, the eating of
> meat will gradually cease.105
> 
> The intention here is not to argue directly either for or against
> eating meat or being vegetarian, rather, it is to examine the
> Bahá’í view about food and the associated moral
> consideration. However, there is no doubt that when less
> meat is produced and used, it will have an impact on the
> environment as well as our physical health.
> 
> ‘Abdu’l-Bahá. Quoted in Lights of Guidance, no. 1006 and 1007.
> Ibid. Quoted in Bahá’u’lláh and the New Era, p. 102.
> ‘Abdu’l-Bahá. Promulgation, p. 170.
> Economics and the Bahá’í Faith
> 
> Bahá’í scholars studied the subject of food and agriculture
> from different perspectives. The concern of Arthur Dahl is
> on the preservation of the eco-system. He provides an
> optimistic view that humanity is mature enough to take
> responsibility for protecting the planet. He believes that
> agriculture fits well with the importance of renewable
> resources for any kind of sustainable civilisation. In regard
> to agriculture in the future he writes:
> However, there is nothing to suggest that agriculture
> in the future will resemble that practised today. The
> emphasis in both the Bahá’í Writings and the science
> of ecology on the importance of diversity suggests
> that new approaches to agriculture may involve
> diverse species maintained in harmony. We may
> evolve complex and efficient ecosystems with local
> communities as an integral part of human
> development.106
> 
> This is an optimistic view by Dahl and it is in line with
> Bahá’í thinking of engaging local communities.
> 
> Bahá’í scholar and development expert Farzam Arbab
> studied the role of agriculture in poverty alleviation. Since
> the majority of poor people in the world live in rural areas,
> an analysis of reducing the poverty of villagers and helping
> them to grow agricultural products and having a welfare
> program at the village level is most appropriate. To achieve
> these, Arbab suggests a ‘new village economy’. Outlining
> his thoughts, he writes:
> The best option for the villagers is indeed to
> understand the strengths and weaknesses of their
> own past and present economic system and then
> move forward and build on their own strengths.
> 
> Arthur Dahl. ‘Living within Environmental Limits: Implications of Bahá’í
> Principles for Sustainable Development’, 3rd conference of the International
> Environment Forum Sidcot, UK, 15-18 August 1999.
> Sustainable Consumption
> 
> In doing so, they would incorporate into their
> schemes certain structures such as the village
> store with its unique functions in the abolition of
> extremes of wealth and poverty, as described in
> the Writings of the Bahá'í Faith.107
> 
> The concept of a village economy may seem idealistic and
> too simple to apply to the complex issues of a global society.
> The problem is that the largest proportion of people are
> currently living and predicted to be living in urban areas.
> Nevertheless, the new village economy can work along with
> a number of interrelated principles such as: providing
> education; creating equal opportunity for both women and
> men; just and effective wealth distribution of the earth’s
> resources; and willingness to adopt a more moderate lifestyle.
> The Bahá’í Writings advocate structures such as a village
> store 108 for the economy of a village. However, the global
> economy is much more complex than a village economy.
> Recognising this point, Arbab further clarifies that the new
> village economy should be seen in the light of its contribution
> to a world economy.109 There is still a need for further study
> in identifying different elements of a new village economy as
> suggested by Arbab. The view presented here is that in any
> alternative model of economics for the future, agriculture
> should play a major role, which has been ignored mostly by
> the current dominant economic systems such as the
> ‘command economy’110 and the ‘free-market economy.’111
> 
> Farzam Arbab. Bahá’í Studies Review, 1987, pp. 9-20, at p. 19.
> ‘Abdu’l-Bahá in his Writings refers to seven sources of revenue and seven
> sources of expenditures, see: ‘Abdu’l-Bahá, Bahá’í World, vol. iv, pp. 450-451.
> Farzam Arbab. Bahá’í Studies Review, 1987, p. 19.
> A ‘command economy’ or planned economy is one that all economic decisions
> are taken by the government. See: John Sloman, Economics, 6th ed., p. 16.
> A ‘free-market economy’ is an economy where all economic decisions are
> taken by individual households and firms and with no government intervention.
> See: John Sloman, p. 16.
> Economics and the Bahá’í Faith
> 
> 5.8     Further analysis of sustainable consumption
> Consumer sovereignty in a free-market economy suggests
> that under perfect competition, consumers drive the market;
> they express their needs and desires as a demand, to which
> firms subsequently respond to by supplying them with the
> goods and services that they require. This gives rise to the
> idea that consumers are sovereign in the market. Traditionally
> customers were responsible for their own purchasing with
> little influence from advertisements. However, today,
> producers may target vulnerable consumers, who may not
> have sufficient information and knowledge of commodities.
> Also, if the customer were really the king, businesses would
> be developing, reinventing, and restructuring around the
> customer. However, this is not happening. The fact that there
> are ‘consumer protection laws’ indicates that consumer
> sovereignty has limitation and they may not necessarily be
> treated any more as sovereign.
> 
> Therefore, consumer sovereignty needs to be re-examined in
> connection with the application of commodities. Economic
> thinking has conventionally distinguished between public and
> private goods. However, the new concept of merit goods has
> been introduced to the economic discipline. The term ‘merit
> goods’ implies that the social benefits of consuming a
> product or a service are more than the private benefits.
> Economics has generally challenged this new concept
> because it interferes with consumer preference. The
> economic assumption of consumer sovereignty states that
> consumers have the autonomy and power to make choices. In
> the absence of consumer education, both moral and
> intellectual, consumer sovereignty may lead to the
> consumption of demerit goods and services. However, a
> study of the Writings of Bahá’í and non-Bahá’í authors
> indicates that the application of the concept of merit goods,
> Sustainable Consumption
> 
> with positive externality in the economy, is unavoidable.
> 
> Economist James Buchanan, known for his ‘Public Choice
> Theory’, in his paper entitled ‘Fairness, Hope, and Justice’
> argues that economic justice is derived from a sense of
> fairness. To influence this fairness, he focuses on the
> distribution of rights and claims112 prior to the market process
> itself, rather than on some final distribution of the product.113
> Buchanan is aware of consumers being handicapped due to
> their vulnerability and self-interest. Thus, he proposes
> intervention by government prior to the market process. For
> example, he advocates the use of taxation for public
> financing of compulsory education.114 This view supports the
> Bahá’í notion of universal and compulsory education.
> 
> Examples of merit goods are not limited to only economic
> issues. Moral philosopher Annette Baier argues the
> weaknesses of a system of ethics based on the principle of
> justice.115 The answer, according to Baier, is the use of the
> principle of ‘care’ as an alternative for justice. For example,
> she argues that women are more likely to have feelings of
> care, while men generally claim to take the justice
> standpoint.116 According to her, there is a need to ensure that
> education will prepare a person to be capable of conforming
> to ethics of care and responsibility. 117 While Baier’s
> reasoning is not directly economic, she is suggesting a
> normative framework of care that essentially influences the
> 
> James Buchanan. New Directions in Economic Justice, Roger Skurski (ed.),
> Indiana: University of Notre Dame Press, 1983, pp. 53-89, at p. 53.
> Ibid.
> Ibid. pp. 63-64.
> Annette Baier. ‘The Need for More than Justice,’ Moral Prejudices: Essays on
> Ethics, Cambridge: Harvard University Press, 1994, pp. 19-32, at p. 19.
> Ibid. pp. 20-23.
> Annette Baier. ‘The Need for More than Justice,’ Moral Prejudices: Essays on
> Ethics, p. 29.
> Economics and the Bahá’í Faith
> 
> individual’s preferences. Therefore, according to Baier,
> morality must be for all people regardless of choice.118 Hence,
> the issue of care as a merit good must become a part of the
> market economy. The principle of ‘care’ has been discussed
> in the Bahá’í Writings as well and constitutes an important
> component for the application of the principle of ‘world
> citizenship’. According to ‘Abdu’l-Bahá:
> If man were to care for himself only, he would be
> nothing but an animal for only the animals are thus
> egoistic…Nay, rather, man should be willing to accept
> hardships for himself in order that others may enjoy
> wealth; he should enjoy trouble for himself that others
> may enjoy happiness and well-being.119
> 
> Another argument for merit goods stated by the
> contemporary economist and philosopher Amartya Sen is
> empowering women and their role in advancing the economy.
> Sen describes the underdeveloped situation of women in
> South Asia, West Asia, and China as unacceptable.120 Sen’s
> explanation is that women are viewed as inferior due to their
> lack of productivity, useful employment or lack of
> education. 121 The remedy he suggests is to endorse state
> funding of public education and public policy that can work
> to improve the status of women in the economy.122 Sen does
> not want to leave this situation to market mechanisms
> because the market may fail to rectify effectively. Therefore,
> he prescribes the interference of government to support the
> right of education for women. For Sen, therefore, education
> and particularly the education of women, is considered as a
> merit good with positive externalities, which at first does not
> 
> Ibid. p. 31.
> ‘Abdu’l-Bahá. Quoted in Star of the West, vol. viii, no. 1, p. 231.
> Amartya Sen. ‘One Hundred Million Women Are Missing,’ New York Review
> of Books, 20 December 1990, p. 60-66, at p. 61.
> Ibid. p. 64.
> Ibid. p. 66.
> Sustainable Consumption
> 
> appear to have anything to do with economics, but on further
> review, one notes that it has an indirect but significant role in
> economic development. The Bahá’í scriptures suggest that
> the inferior condition of women is because of the lack of
> opportunity for women to acquire education and other
> necessary qualifications. ‘Abdu’l-Bahá states:
> Until the reality of equality between man and woman
> is fully established and attained, the highest social
> development of mankind is not possible. Even granted
> that woman is inferior to man in some degree of
> capacity or accomplishment, this or any other
> distinction would continue to be productive of discord
> and trouble. The only remedy is education,
> opportunity;      for     equality     means     equal
> qualification…And let it be known once more that
> until woman and man recognize and realize equality,
> social and political progress here or anywhere will not
> be possible.123
> 
> In this passage, equal opportunity and women empowerment
> is considered by ‘Abdu’l-Bahá as a merit phenomenon with
> positive externality. Economist, Joseph Stiglitz, also
> supported merit goods. He demonstrates the failure of market
> reforms in Russia. He argues that the transition to a market
> economy lacked the institutional and legal infrastructure that
> it needed to take firm root in Russian society. 124 This
> argument is important because it shows a clear departure
> from classical economics. According to Adam Smith, the
> market automatically reaches equilibrium and there is no
> need of government intervention. However, Stiglitz
> challenges this view and by referring to the failure of market
> reform in Russia argues that there is a need for government
> intervention and support from its financial, social, and
> 
> ‘Abdu’l-Bahá. Promulgation, pp. 76-77.
> Joseph Stiglitz. ‘Whither Reform? Ten Years of the Transition,’ World Bank
> Annual Conference on Development Economics. Washington, DC. 28-30 April
> 1999, p. 5.
> Economics and the Bahá’í Faith
> 
> organizational institutions. In other words, the free-market
> system cannot function alone on the basis of self-interest.
> Therefore, to complement market mechanisms it must be
> regulated. Hence, according to Stiglitz the provision of the
> institutional framework for a market economy is considered
> as merit goods.
> 
> 5.9     Chapter conclusion
> This chapter has attempted to do a survey of Bahá’í Writings
> in understanding the notion of sustainable consumption. The
> issue was presented that to achieve sustainable consumption,
> it is not enough to develop values, they must also be
> implemented. This requires effective action by individuals,
> families, organizations, and the government. This is
> necessary because the market alone fails to achieve and
> maintain sustainable consumption. The agents in a free-
> market economy have the goal of maximising profit, and
> consumers are looking at their own self-interest. In such an
> environment, there will be under-consumption of merit goods
> and over-consumption of demerit goods, leading to
> misallocation of resources. In self-interest, a choice has to be
> made that would be the best one available for the person. A
> Bahá’í view would be to make choices that promote social
> interest rather than self-interest, choices that lead to an
> outcome that is the best for the wider society. In this case
> making choices leads to an effective and efficient use of
> resources, and distributes goods and services fairly,
> equitably, sensibly, and in a sustainable way among members
> of society. It is therefore argued that consumer education will
> greatly help consumers to make right choices. To achieve
> sustainable consumption there is a need to influence supply
> and demand. Consumer education on one hand, and acquiring
> and applying value principles on the other, will enable a
> successful process. Hence, willingness to change life style,
> Sustainable Consumption
> 
> and to control and modify excessive consumption is
> recommended. I have upheld the view that the Bahá’í
> principle of moderation maintains a balance in the material
> and spiritual life of individuals and is a solution to the
> societal problem of poverty. Furthermore, I considered
> consumer education as an important factor influencing firms
> to produce goods and services that are sustainable and in
> accordance with human dignity. On the practical side, the
> Bahá’í community can have an impact on consumption, not
> only at individual and community level but also indirectly
> towards the wider society. For example, it was argued that
> achieving sustainability depends largely on consumer
> education and in particular moral education. Consumer
> education enriches sustainable living. Bahá’í parents are
> urged to instil moral values in children and prepare them for
> attaining a sustainable life style by knowing the purpose of
> life.
> 
> With this chapter, the microeconomic aspect of the study and
> analysis of Bahá’í teachings on economics is concluded. In
> the next chapter, the macroeconomic part of Bahá’í teachings
> will be discussed under the main heading of ‘globalization
> from a Bahá’í perspective.’
> 
> Economics and the Bahá’í Faith
> 
> Chapter 6: The Bahá’í view on Globalization
> 
> The earth is but one country, and mankind its
> citizens.1 Bahá’u’lláh
> 
> 6.1    Introduction
> We are living in an extraordinary time. Change is taking
> place all the time. Internet has revolutionised our lives and
> globalization is a part of this change and it is real and is
> taking place. It is taking place, because we have the tools to
> achieve it. Information technology, cheap and advanced
> transport, effective communication, global financial
> interdependency, trade liberalization, the role of
> multinational corporations and emerging economies, all have
> channelled the process of globalization.
> 
> With the previous three chapters focusing mainly on the
> Bahá’í perspective on microeconomic discussion, this chapter
> is aimed at the Bahá’í view on macroeconomic teachings,
> primarily on globalization and development. In this chapter,
> an interpretation of the concept of ‘meaningful and
> enlightened globalization’ will be provided. The study of
> primary Bahá’í Writings indicates a positive outlook towards
> a meaningful globalization. The aim is to explore the concept
> of globalization from a Bahá’í perspective as well as from a
> contemporary economic view. It will be argued that
> government policies alone are not sufficient, that there is a
> need for emerging values to shape and reform the process of
> current globalization. The view that the current process of
> globalization has generated unbalanced outcomes, both
> 
> Bahá’u’lláh. Gleanings, p. 250.
> The Bahá’í Perspective on Globalization
> 
> between and within countries, will be explored. It will be
> argued that problems associated with the current form of
> globalization are due to the negative methods and processes
> adopted. It will be stated that there are challenges and
> inconsistencies in human affairs in the current process of
> globalization, and hence, how does the Bahá’í view on
> globalization differ from the one currently emerging?
> 
> The subject of globalization has expanded considerably in
> 20th century and it now covers a wide range of topics. The
> process of the globalization of the Bahá’í community started
> at its inception, and with the Writings of the founder of this
> Faith, Bahá’u’lláh. The phrases closely associated with the
> concept of globalization, which signify a holistic view of
> humanity and organization of human society, have been used
> repeatedly in the primary Bahá’í scriptures. Examples
> include: ‘world order’, ‘human race’, ‘civilisation’,
> interdependency, and ‘universal’.              However, with
> contemporary manifestations of globalization, it seems that
> the modern forms and expressions of globalization can at
> times be less concerned with the holistic views expressed in
> the Bahá’í Writings. In the historical context, Bahá’í scholar
> Stephen Lambden argues that ‘A substantial part of this
> global thinking is represented by major world religions,
> which have been theologically globally-minded through most
> of their existence.’2 Hence, according to this view the vision
> of all religions are global, although the social laws are limited
> to a specific time and area. The prophets of God worked as a
> team to bring the vision of global unity into a reality, started
> from tribal unity to town and city and nation and now to
> uniting humanity.
> 
> Stephen Lambden. ‘The Messianic Roots of Bábi-Bahá’í Globalim’, Bahá’í and
> Globalization, Handbook, ed. Margit Warburg, Annika Huithamar and Morten
> Warmind, Aarhus: Aarhus University Press, 2005, pp. 17-34, p. 17.
> Economics and the Bahá’í Faith
> 
> 6.2     Unity, a prerequisite for understanding Bahá’í
> globalization
> For Bahá’ís, an enlightened globalization involves a firm
> belief in the principle of unity of humankind. Unity of
> humankind is, therefore, a key characteristic of this Faith.
> Bahá’u’lláh proclaims ‘The tabernacle of unity hath been
> raised; regard ye not one another as strangers.’3 Studying the
> Bahá’í Writings it becomes clear that the principle of oneness
> encompasses much more than brotherly love and tolerance.
> Shoghi Effendi clarifies that the oneness of humanity:
> calls for no less than the reconstruction and the
> demilitarization of the whole civilized world, a world
> organically unified in all the essential aspects of its
> life, its political machinery, its spiritual aspiration, its
> trade and finance, its script and language, and yet
> infinite in the diversity of the national characteristics
> of its federated units.4
> 
> A number of statements clearly emphasise the meaning and
> significance of globalization in relation to unity of
> humankind, including phrases such as ‘the well-being of
> mankind’ 5 , ‘betterment of the world’ 6 , ‘Let your vision be
> world-embracing’7, and ‘The interdependence of the peoples
> and nations of the earth.’ 8 Similarly, Bahá’u’lláh uses
> metaphorical expressions such as ‘the entire human race as
> one soul and one body’ 9 , and ‘ye are the flowers of one
> garden.’10 He also refers to the calamitous condition of the
> world, stating, ‘The world is encompassed with misery and
> 
> Bahá’u’lláh. Gleanings, p. 218.
> Shoghi Effendi. World Order, pp. 42-43.
> Bahá’u’lláh. Gleanings, p. 286.
> Ibid. Trustworthiness, p. 5.
> Ibid. Gleanings, p. 94.
> Shoghi Effendi. The Promised, p. 122.
> Bahá’u’lláh. Gleanings, p. 214.
> Ibid. Bahá’u’lláh and the New Era, p. 209.
> The Bahá’í Perspective on Globalization
> 
> distress,’11 and ‘The world is in great turmoil.’12
> 
> A significant subject pertinent to globalization that has been
> discussed by ‘Abdu’l-Bahá is the interdependence of people
> and nations. Frequently he emphasises that ‘all the members
> of the human family, whether peoples or governments, cities
> or villages, have become increasingly interdependent.’13 And
> in a stronger statement he continued, ‘For none is self-
> sufficiency any longer possible, inasmuch as political ties
> unite all peoples and nations, and the bonds of trade and
> industry, of agriculture and education, are being strengthened
> every day.’ 14 In light of above discussion, the following
> definition given by Bahá’í scholar Suheil Bushrui conveys an
> appropriate description of understanding the concept of
> globalization from a Bahá’í perspective:
> Globalization is a vision of world unity in so deep and
> broad a sense as to embrace every aspect of human
> life. Such a vision of planetary unity and integration,
> however, bears no relation to the often bland, faceless,
> and amoral global marketplace that we see operating
> today. Instead, it recognises and celebrates the rich
> diversity of creeds and cultures while at the same time
> affirming the fundamental oneness of the human race.
> The Bahá'í approach to globalization can be summed
> up as a commitment to the concept of ‘unity in
> diversity’ and what this practically entails in the life
> of the individual and society alike.15
> 
> This definition refers to the fundamental Bahá’í principle of
> ‘world unity’, and ‘unity in diversity’ as practical approaches
> to globalization.
> 
> Ibid. Tablets, p. 163.
> Ibid. Gleanings, p. 97.
> ‘Abdu’l-Bahá. Selections, pp. 31-32.
> Ibid. p. 32.
> Suheil Bushrui. ‘Bahá’í Perspective on Globalization’, retrieved at:
> <http://www.onecountry.org/e151/e15102as_Perspective_.htm>.
> Economics and the Bahá’í Faith
> 
> According to historian Joseph Kitagawa (1990) in the Quest
> for Human Unity, ideas of the oneness of a globally united
> humanity have a rich and varied history, reaching back to
> antiquity.16 The scriptures of major religions such as Judaism,
> Christianity, and Islam have a vision of unity, which will be
> achieved through stages of unity of tribes, of cities, of
> nations, and the final stage of uniting the entire humanity.
> 
> The analogy of family described in chapter one has much
> wider implication in the creation of unity within humankind.
> Such an enormous undertaking requires unity within the
> family, as well as within the world’s societies, through
> spiritual and material means. It compels individuals and
> nations to work together in harmony in order to establish this
> unity. Today the effects of the gradual application of the
> spirit of unity, such as the rejection of racial prejudices, the
> greater awareness of the need to protect the environment, the
> acceptance of gender equality in many societies, and the
> greater awareness of human rights, are apparent in the wider
> society. Application of these would gradually lead to the
> oneness of humanity.
> 
> The goal of unity is possible because humanity has access to
> the means necessary to attain it. For example, the
> revolutionary      and     world-embracing       means      of
> communication, transportation, information technology and
> global financial interdependency are available as methods of
> unifying nations. ‘Abdu’l-Bahá explains that in the past, ‘The
> unity of mankind could not have been achieved,’17 because
> the means of coming into contact that are currently available,
> 
> Joseph Kitagawa. Quoted in Stephen Lambden, Bahá’í and Globalization, ed.,
> p. 17.
> ‘Abdu’l-Bahá. Selections, p. 31.
> The Bahá’í Perspective on Globalization
> 
> were not within reach during the past dispensation, thus,
> ‘association and interchange of thought were well-nigh
> impossible.’ 18 It is therefore clear that the features of
> meaningful globalization, which are oneness of humanity,
> interdependency, and interchange of thoughts, could be
> facilitated through the use of advanced information and
> technology. On the other hand, it is important to note that in
> some cases the very means of uniting humanity can act as a
> dis-unifying force: for example, information technology may
> also promote a faster spread of hate and fear.
> 
> The question arises here that in what way are unity,
> economics, and globalization linked? Shoghi Effendi stated
> that ‘the oneness and wholeness of the entire human race...
> eliminates extremes of poverty and wealth.’19 The argument
> is that when united, the individual and the society become
> more thoughtful and compassionate towards each other and
> share economic resources more generously. The ‘Bahá’í
> International Fund’ and many other charitable organizations
> are a practical demonstration of this. The contributions to the
> Bahá’í International Fund are spent for development projects
> around the world, wherever needed. Such altruistic actions
> become meaningful when people have a sense of connection
> to each other, partly due to their beliefs and partly due to
> human nature, which has an innate capacity to be kind. Thus,
> a culture of ‘service’ and ‘voluntary charitable work’ is
> established in the Bahá’í community to facilitate the process
> of removing poverty.
> 
> One may argue that unity is only possible within the Bahá’í
> community because all its adherents believe in the same
> 
> Ibid.
> Shoghi Effendi. The Promised, p. v.
> Economics and the Bahá’í Faith
> 
> principles and values. An outsider may wonder whether the
> principle of unity is actualised globally. The Bahá’í teachings
> assert global unity and not only that of the Bahá’í
> community. This unity, however, starts from within the
> Bahá’í community. The Universal House of Justice, in its
> Promise of World Peace published in 1985, encourages the
> people of the world to examine the Bahá’í communities
> around the world as an example of what a united world would
> look like in the future. 20 It is of course naive to think that
> unity, whether within the Bahá’í community or in the wider
> society, will be established without any difficulties or
> complications. Indeed, the teachings of Bahá’u’lláh provide
> the outline and the driving force for unity, but painstaking
> efforts are needed at both individual and community levels to
> achieve it. The Bahá’í institutions at the local, national and
> international levels help establish and preserve the unity
> within the Bahá’í community, and work with individuals,
> organizations and governments, as appropriate, to promote
> this unity outside of the Bahá’í community as well. These are
> achieved through various community and core activities such
> as observing Bahá’í Holy Days, children’s classes, youth
> activities, encouraging women’s participation in social
> activities, and summer and winter schools. As a community-
> building exercise the general public is actively invited to
> participate in these activities and to work together with the
> Bahá’ís to bring about unity. A sense of belonging to the
> community generates a willingness in people to accept
> responsibility to help each other and to commit to the
> development of the whole community. These collective
> actions can help diminish economic difficulties within and
> 
> See: The Promise of World Peace, part IV, it states: ‘If the Bahá’í experience
> can contribute in whatever measure to reinforcing hope in the unity of the human
> race, we are happy to offer it as a model for study.’
> 
> The Bahá’í Perspective on Globalization
> 
> outside the Bahá’í community.
> 
> On the practical level, Bahá’ís associate with people of all
> backgrounds in their effort to follow Bahá’u’lláh’s
> exhortations, striving to create a globalization that is based on
> unity and love of humanity rather than factors such as
> economic and political gain. Elabourating on this, William
> Hatcher and Douglas Martin write:
> We will arrive at unity, but rather by an increased
> awareness of and respect for the intrinsic value of
> each separate culture, and indeed, of each individual.
> It is not diversity itself, which is deemed the cause of
> conflict, but rather our immature attitude towards it,
> our intolerance and prejudice.21
> 
> The concept of ‘unity in diversity’ is the practical
> demonstration of unity that will protect Bahá’í globalization
> from uniformity. To attain this, consideration is given by the
> Bahá’í community to teaching the concept of world
> citizenship as part of the education of every child.
> 
> Fundamental to the understanding of world unity as an
> essential characteristic of Bahá’í globalization, is the
> statement of ‘It is not his to boast who loveth his country, but
> it is his who loveth the world.’22 It may be argued that this
> statement is contrary to one’s loyalty to one’s country. This
> would be true if the ability to love was limited or love of
> one’s country would exclude love of the world. This indeed is
> not accurate, as one’s ability to love is extremely vast and can
> extend far beyond one’s love for one’s country; one does not
> exclude the other. On the contrary, love and consideration
> extended to the whole world will include love of one’s
> country and promote greater satisfaction and happiness.
> 
> William Hatcher and Douglas Martin. The Bahá’í Faith, p. 78.
> Bahá’u’lláh. Gleanings, p. 95.
> Economics and the Bahá’í Faith
> 
> Bahá’u’lláh stated that ‘Love of one’s country is an element
> of the Faith of God.’ Referring to this statement, Shoghi
> Effendi said that ‘The love of one’s country…has not…
> either condemned or disparaged.’ 23 Shoghi Effendi further
> considers the love of one’s country as ‘lesser loyalty’24 and
> love of humanity as ‘wider loyalty’25, and states that ‘a wider
> loyalty, should not…conflict with lesser loyalties.’26 This is
> an easy task when a belief culture is created, but there are
> challenges when applying this teaching in countries where
> there is rabid nationalism and at times hatred for people of
> other nations. Ethnic cleansing which stems from only loving
> one’s own country to the point of excluding all others is not
> an unfamiliar issue in today’s society.
> 
> Commenting on one of the Writings of the founder of the
> Bahá’í Faith, Moojan Momen writes:
> Bahá’u’lláh had laid down the necessary groundwork
> for the globalization of the Bahá’í community…
> Bahá’u’lláh had emphasised in His Writings the
> equality of all believers, of whatever level of
> education or social rank. He had spoken of all as
> being ‘created from the same dust’ so that ‘no one
> should exalt himself over the other’ and hence that all
> should ‘be even as one soul, to walk with the same
> feet, eat with the same mouth and dwell in the same
> land, that from your inmost being, by your deeds and
> actions, the signs of oneness…may be made
> manifest.’27
> 
> When one supports unity, then it is easy to realise that an
> enlightened globalization involves a belief that the globalised
> world is indeed the norm, and should be the reality of the
> 
> Shoghi Effendi. The Promised, p. 122.
> Ibid.
> Ibid.
> Ibid.
> Moojan Momen. Bahá’í and globalization, p. 81.
> The Bahá’í Perspective on Globalization
> 
> human world. However, we live in a world where conflict is
> considered a normal way of life. Contest, competition and
> confrontation have become norms embedded in social,
> political, and economic systems. The relationships between
> people are based on fear, hate and self-interest. These are
> severe barriers for establishing unity. There is a need to
> acquire certain attitudes and behaviours that are necessary to
> promote unity. Members of the Bahá’í community
> individually and collectively explore the actions essential for
> fostering unity in the community, which are service
> orientated.
> 
> An ideal globalization for Jeffrey Sachs, the Director of the
> Earth Institute and one who is an expert in sustainable
> development is one that addresses the needs of the poorest of
> the poor, the global environment, and the spread of
> democracy. He further states: ‘It is the kind of globalization
> championed by the enlightenment globalization democracies,
> multilateralism, science and technology, and a global
> economic system designed to meet human needs.’ 28 Sachs
> called this kind of globalization as         ‘an enlightened
> globalization.’ 29
> For Joseph Stiglitz, an effective
> globalization requires ‘new social contracts,’30 which will be
> considered when ‘The well-being of the developed and
> developing countries are better balanced.’ 31 If we define
> progressive civilisation as an advancing social development
> and organization, then issues such as materialism, poverty,
> destruction of ecosystem, lack of respect for human rights,
> inequality, war and conflicts are contrary to human social
> development, organization and civilisation. Consequently,
> 
> Jeffrey Sachs. The End of Poverty, London: Penguin Books, 2005, p. 358.
> Ibid.
> Joseph Stiglitz. Making Globalization Work, p. 285.
> Ibid. p. 285.
> Economics and the Bahá’í Faith
> 
> from a Bahá’í perspective, a meaningful globalization refers
> to the elimination of those ‘social ills’ 32 and hindrances,
> which ‘Abdu’l-Bahá suggested ‘the immediate remedy for all
> the ills of social life.’33 Shoghi Effendi describes these social
> ills as a world ‘spiritually destitute, morally bankrupt,
> politically disrupted, socially convulsed, economically
> paralysed’ 34 The Bahá’í International Community has
> identified other social ills of our current society including
> poverty, unemployment, social strife, over-consumption,
> chauvinistic nationalism, war, and moral and spiritual
> apathy. 35 Hence, although advancement in information
> technology and communication has created immense benefits
> for the humanity, the disadvantage of such advances is that
> ‘crisis quickly become global.’36 The current global financial
> crisis from 2008 that started in United States spread to
> Europe immediately, and to the rest of the world quickly after
> that.
> 
> There are other factors that are important for reforming and
> reshaping the current process of globalization. Speaking on
> this, Stiglitz points out that reforming globalization is a
> matter of politics. According to him there are a number of
> issues that need to be considered, including the prospects for
> unskilled workers and the impact of globalization on
> inequality; the democratic deficit in global economic
> institutions, which weakens democracy even within
> developed countries; and the human tendency to think locally
> while we live in an increasingly global economy.
> 
> Universal House of Justice, 2 April 2010.
> ‘Abdu’l-Bahá. Tablet to August Forel, p. 80.
> Shoghi Effendi. The Promised, p. 16.
> Bahá’í International Community. Statement on ‘Global Action Plan for Social
> Development,’ New York: United Nations Office, 1994.
> Joseph Stiglitz. Freefall: America, Free-markets, and the Sinking of the World
> Economy, New York: W. W. Norton and Company, 2010, p. 21.
> The Bahá’í Perspective on Globalization
> 
> 6.3     Recognition and application of unity/oneness
> Oneness is the main reason for the coming of Bahá’u’lláh. It
> is such an important principle that we can call the Bahá’í
> Faith a religion of oneness. The vision of oneness is the
> central truth of all Faiths and it comes in stages of unity as a
> goal. In every Revelation, according to ‘Abdu’l-Bahá, ‘the
> light of Divine Guidance has been focused upon one central
> theme...The consciousness of the Oneness of Mankind.’ This
> oneness, He says, is ‘the pivot round which all the teachings
> of Bahá’u’lláh revolve.’ Therefore, promoting it is ‘the object
> of life for a Bahá’í.’ Shoghi Effendi states, ‘The principle of
> the Oneness of Mankind…Its implications are deeper, its
> claim greater than any which the Prophets of old were
> allowed to advance.’37
> 
> Although the word oneness is used frequently in the Bahá’í
> Writings, it is not easy to define it. According to Bahá’í
> scholar Alimorad Davoudi 38 in order to define oneness we
> need to consider several parts of it, and once we break it into
> several parts, it is no more oneness. Therefore, the only
> definition of oneness is that it is one. Davoudi clarifies that
> although the word oneness cannot be defined, we can feel it,
> or we can have a sense of oneness. As Bahá’ís we are used to
> the concept of oneness, we are associated with the spirit of it
> and we can sense it. The only way we can understand
> 
> Shoghi Effendi, World Order of Bahá’u’lláh, p. 42.
> Dr Alimorad Davoudi is a prominent Bahá’í scholar. He obtained his Doctorate
> in Philosophy and Education from Tehran University. He then took up a position
> at the same university as a professor. He wrote and translated a large number of
> valuable books and articles on philosophy. He was a member of the National
> Spiritual Assembly of the Bahá’ís of Iran. On 11 November 1979, Dr Alimorad
> Davoudi was abducted and disappeared.
> <https://iranbahaipersecution.bic.org/archive/alimorad-davoudi-kidnapped-and-
> disappeared-tehran-11th-november-1979>
> 
> Economics and the Bahá’í Faith
> 
> oneness in a practical sense is to look at its effects and
> outcomes.
> 
> A contrast can be made between unity and oneness:
> • Unity is the process. Oneness is the product
> • Unity depends upon an event. Oneness transcends an
> event and joins people together.
> • In unity, people gather together for a common
> interest. In oneness, people are integrated.
> • Unity is how we should start. Oneness is how we
> should finish.
> • Unity is the catalyst that is the bridge to go into
> oneness.
> • Unity is built upon encouragement. Oneness is built
> upon the purpose.
> • Unity is the means to the end, but all events and
> activities should have sufficient follow-up that gives
> the opportunity for oneness to develop.
> 
> The application of the seven candles of unity stated by
> ‘Abdu’l-Bahá makes the oneness stronger and stronger.
> 
> The first candle is unity in the political realm, the
> early glimmerings of which can now be discerned.
> The second candle is unity of thought in world
> undertakings, the consummation of which will ere
> long be witnessed. The third candle is unity in
> freedom which will surely come to pass. The fourth
> candle is unity in religion which is the corner-stone of
> the foundation itself, and which, by the power of God,
> will be revealed in all its splendor. The fifth candle is
> the unity of nations, a unity which in this century will
> be securely established, causing all the peoples of the
> world to regard themselves as citizens of one common
> fatherland. The sixth candle is unity of races, making
> of all that dwell on earth peoples and kindreds of one
> 
> The Bahá’í Perspective on Globalization
> 
> race. The seventh candle is unity of language, i.e., the
> choice of a universal tongue in which all peoples will
> be instructed and converse. Each and every one of
> these will inevitably come to pass, inasmuch as the
> power of the Kingdom of God will aid and assist in
> their realization.39
> 
> There are several examples from the Bahá’í community as
> catalysts for promoting and strengthening oneness including
> Bahá’í Scriptures, the Bahá’í Faith is a religion without
> priesthood, non-involvement in partisan politics, the
> existence of covenant, Bahá’í marriage, Bahá’í House of
> Worship, Nineteen Day Feast, the independent investigation
> of truth, Bahá’í pioneers and traveller teachers are promoting
> the principle of unity/oneness, the role of the Supreme
> Institution of the Bahá’í Faith, the Universal House of
> Justice.
> 
> The core principle of oneness can be challenged because
> currently there are many obstacles to the transformation of
> consciousness, such as doubts, misconceptions, prejudices,
> suspicions and narrow self-interest. Such challenges require
> the society to ‘change its attitudes before a solution to social
> problems can be found.’40
> 
> Therefore, based on the practicality of the principle of
> oneness, the challenge for the Bahá’í community is that
> Bahá’ís live in a world where not everybody shares their
> moral and spiritual principles. However, the embryonic
> condition for relative hope and integration is created. Leaders
> with global and optimistic views are becoming more popular.
> Leaders with negative views and not respecting human rights
> are becoming less popular. Nations are now realising that
> ‘Abdu’l-Bahá, quoted in the World Order, pp. 38-39.
> Universal House of Justice. Statement dated 27 April 1988.
> Economics and the Bahá’í Faith
> 
> interdependency is a reason for their future prosperity, such
> as NAFTA (North American Free Trade Agreement),
> CARICOM (Caribbean Community), and EU (European
> Union). ‘Abdu’l-Bahá said: ‘For none is self-sufficiency any
> longer possible.’ 41 Also, international organizations are
> established, such as the Court of Hague, Crime Against
> Humanity, World Bank, etc. These developments which
> happened mainly in the 20th century indicates that nations
> feel insecure and their own laws are not sufficient to establish
> order and therefore trusting more powerful laws such as those
> shaped by the regional and international institutions.
> 
> 6.4     Good life and real happiness
> In the general textbooks, happiness is defined as feeling
> good, enjoying life and feeling it as wonderful. Unhappiness
> is expressed as feeling bad and wishing things were different.
> The Bahá’í Writings include teachings of right livelihood, the
> path to true well-being, prosperity and happiness. In the
> following passage from ‘Abdu’l-Bahá, He referred to
> happiness as a sentiment or a feeling which is a state of mind:
> In this world, we are influenced by two sentiments,
> Joy and Pain.
> Joy gives wings! In times of joy our strength is
> more vital, our intellect keener, and our understanding
> less clouded. We seem better able to cope with the
> world and to find our sphere of usefulness. But when
> sadness visits us we become weak, our strength leaves
> us, our comprehension is dim and our intelligence
> veiled. The actualities of life seem to elude our grasp,
> the eyes of our spirits fail to discover the sacred
> mysteries, and we become even as dead beings.
> There is no human being untouched by these two
> influences; but all the sorrow and the grief that exist
> come from the world of matter - the spiritual world
> bestows only the joy!
> 
> ‘Abdu’l-Bahá. Selections, p. 31.
> The Bahá’í Perspective on Globalization
> 
> If we suffer it is the outcome of material things, and
> all the trials and troubles come from this world of
> illusion.42
> 
> In this passage ‘Abdu’l-Bahá is referring to happiness as a
> state that ‘joy gives wings!’ and the purpose of giving wing is
> to fly. When people are happy and out of this material world,
> they can fly. And refers to all suffering as earthly and
> material things causing sorrows. Elsewhere, ‘Abdu’l-Bahá
> identifies two kinds of happiness, spiritual and material:
> Know thou that there are two kinds of happiness,
> spiritual and material. As to material happiness, it
> never exists; nay, it is but imagination, an image
> reflected in mirrors, a spectre and shadow. Consider
> the nature of material happiness. It is something
> which but slightly removes one’s afflictions; yet the
> people imagine it to be joy, delight, exultation and
> blessing. All the material blessings, including food,
> drink, etc., tend only to allay thirst, hunger and
> fatigue. They bestow no delight on the mind nor
> pleasure on the soul; nay they furnish only the bodily
> wants. So, this kind of happiness has no real
> existence.43
> 
> In a number of Writings ‘Abdu’l-Bahá refers to factors such
> as food, water, shelter, education and good health as
> essentials for a healthy physical life. Their function is to
> satisfy our physical body. If we consider happiness as feeling
> good and associated to a state of mind, then a good physical
> health would influence the state of mind and therefore
> happiness. However, material satisfaction alone cannot bring
> real happiness, spiritual happiness is an essential part of the
> whole bundle of happiness. ‘Abdu’l-Bahá said:
> As to spiritual happiness, this is the true basis of the
> life of man, for life is created for happiness, not for
> 
> ‘Abdu’l-Bahá. Paris Talks, pp. 110-113.
> Ibid. Quoted in the Divine Art of Living, pp. 17-18.
> Economics and the Bahá’í Faith
> 
> sorrow; for pleasure, not for grief. Happiness is life;
> sorrow is death. Spiritual happiness is life eternal.
> This is a light which is not followed by darkness.
> This is an honour which is not followed by shame.
> This is a life that is not followed by death. This is an
> existence that is not followed by annihilation. This
> great blessing and precious gift is obtained by man
> only through the guidance of God… [Therefore]
> Until       material        achievements,      physical
> accomplishments and human virtues are reinforced by
> spiritual perfection, luminous qualities and
> characteristics of mercy, no fruit or result shall issue
> therefrom, nor will the happiness of the world of
> humanity, which is the ultimate aim, be attained.’44
> 
> The understanding is that spiritual health and material
> well-being are harmoniously working together to
> achieve and maintain true prosperity.
> 
> Let us look at some other essentials influencing happiness.
> From a purely economic perspective. The conversion of
> income into a good pattern of living is an important step that
> must be taken. There are a number of course of action that
> can be considered as guiding principles for the better use of
> income. Incomes can certainly help the enhancement of the
> quality of life and the freedoms that people can enjoy. Good
> management of income helps the saving requirements so
> crucial during for example economic crises. One factor that
> greatly affects the standard of happiness, in the long run, is
> the level of savings. Unfortunately, in poorer families with
> inadequate level of income, there is shortage or absence of
> savings. In such families, most of the income is spent on
> necessity products and little or nothing remains for saving.
> Saving is an important source of wealth accumulation in the
> long run. With saving, people are able to buy their own house
> 
> Ibid. Selections, p. 283.
> The Bahá’í Perspective on Globalization
> 
> and therefore enjoy a better life. It also helps older people to
> have a happier life when they are retired. The time may come
> that some governments may not be able to support their
> pensioners for a long period of time. Hence, saving becomes
> convenient.
> 
> It is also important to note that the Bahá’í Writings
> emphasise the importance of the happiness for the entire
> society rather than a minority of individuals. In numerous
> Writings, Bahá’u’lláh is desiring to this matter including the
> following two passages: ‘Blessed and happy is he that ariseth
> to promote the best interests of the peoples and kindreds of
> the earth.’45 And elsewhere He said: ‘We desire but the good
> of the world and the happiness of the nations.’46
> 
> What is a good life? A decent life is identifying all the
> necessities for having a life that is befitting human dignity.
> The requirements of those necessities of life including
> physical needs and those items needed for social inclusion
> such as freedom, equal opportunity and the means for
> progress. A good Bahá’í life distinguishes between ends and
> means. The ends for a Bahá’í include, service to humanity,
> happiness for all, unity, protecting the nature, and respecting
> the future generation. The means to achieve the ends includes
> education, skill learning, arts and crafts, industry, good
> health, productive contribution towards community
> participation, and individual core values such as
> trustworthiness, truthfulness, honesty and freedom to
> participate in advancing socio-political-economic agendas.
> The notion of freedom to participate in social and economic
> development allows individuals to benefit from equal
> 
> Bahá’u’lláh, Gleanings, p. 248.
> Ibid. Quoted in The Proclamation of Bahá’u’lláh.
> Economics and the Bahá’í Faith
> 
> opportunity and discover their own talents and be able to
> contribute more effectively for the betterment of a
> community. The means or access to various tools for progress
> facilitates economic development at both the individual level
> as well as the whole community. By looking and examining
> those countries that there exist freedom and equal opportunity
> and the means for progress are in a much better position to
> provide an adequate standard of living for all its citizens.
> 
> For achieving a good life, we usually go through the
> following stages:
> I. Survival phase (subsistence): This is where the basics
> and necessities of life are required for the survival:
> ‘Abdu’l-Bahá said: ‘the needy shall have their
> necessities and no longer live in poverty.’ 47 The
> United Nations’ characterization of survival stage and
> the accessibility of the basic needs of living includes
> food, clothes, shelter, good health and adequate
> education.
> 
> II. Comfort phase (sufficiency of basic needs): ‘Abdu’l-
> Bahá said: ‘everyone has the right to a happy,
> comfortable life.’48 The phase of ‘comfort’ is the stage
> of self-sufficiency and sustainability or a condition of
> genuine happiness. This is where individuals have the
> freedom to choose a state of happiness and wellbeing.
> Freedom to choose is a necessary condition for this
> stage, but not sufficient. Equal opportunity must be
> provided to all citizens to get the advantage of their
> own talents and capability. At this stage, individuals
> know that spending additional money in accumulating
> 
> ‘Abdu'l-Bahá, Promulgation, p. 102.
> Ibid. Divine Philosophy, p. 83.
> The Bahá’í Perspective on Globalization
> 
> more luxuries does not necessarily add a higher return
> to happiness. ‘Abdu’l-Bahá said: ‘As the rich man
> enjoys his life surrounded by ease and luxuries, so the
> poor man must, likewise, have a home and be
> provided with sustenance and comforts commensurate
> with his needs. This readjustment of the social
> economy is of the greatest importance inasmuch as it
> ensures the stability of the world of humanity; and
> until it is effected, happiness and prosperity are
> impossible.’49
> 
> III. The phase of ‘enough is enough’ or ‘far beyond actual
> necessities’: This is the stage that one is already
> satisfied and no more will be tolerated. ‘Abdu’l-Bahá
> said: ‘It is evident that under present systems and
> conditions of government…[there are] others more
> fortunate live in luxury and plenty far beyond their
> actual necessities.’50
> 
> Spending ‘beyond actual necessities’ or beyond the stage of
> ‘enough is enough’ means we are buying more luxuries and
> unnecessary products and the possible diminishing of our
> further happiness. Beyond the stage of ‘enough is enough’,
> there is over consumption which has led to consumer society
> and hence causing wastage of resources. The stage of
> ‘beyond actual necessities’ corresponds with the law of
> diminishing return, which states as we consume more of
> something, our satisfaction diminishes. Hence, if we are
> happy and satisfy with a certain amount of something, why
> should we have more of it. Stopping beyond actual
> necessities means we are healthier, and at the same time-
> 
> Ibid. Promulgation, pp. 181-182
> Ibid. p. 107
> Economics and the Bahá’í Faith
> 
> saving resources for more deprived ones. ‘Abdu’l-Bahá said:
> ‘The man of great wealth…will be forced, for his own
> happiness, to expend his wealth to procure better conditions
> for the community in which he lives.’51
> 
> In today’s most affluent societies, most people’s basic needs
> have been fulfilled, and many are living outside the stage of
> ‘beyond actual necessities’ or ‘enough is enough’. This
> condition of living demands a better understanding of true
> meaning and purpose of life, the significance of a kind of
> work that is considered as service to others, true prosperity
> and the need for a ‘readjustment of the economic order.’52
> 
> 6.5     Importance of core values
> The importance of individual core values for establishing
> ideal globalization is crucial. Numerous economic theories
> and models that are created and introduced in the last two
> hundred years has affected the whole society. However, the
> positive outcomes of these models have not benefited
> humanity in a fairway. One reason for the failure of some of
> these models has been the absence of individual core values
> so fundamental and essential for implementing the models.
> Once the human heart is transformed and individual core
> values and spiritual dimension of human nature is dominant,
> then a real solution for the problems of the world can be
> found. The Universal House of Justice states that this
> transformation lies in the will and effort of individuals:
> ‘Souls must be transformed, communities thereby
> consolidated, new models of life thus attained.’ 53 Bahá’í
> scholar William Hatcher explains the implication of morality
> in our economic system:
> 
> Ibid. Star of the West, vol. viii, no. 1, pp. 4-5.
> Ibid. Promulgation, p. 102.
> Universal House of Justice. Ridván Message, 1989.
> The Bahá’í Perspective on Globalization
> 
> Viewing economics as primarily a concrete reflection
> of our morality has profound implications for
> understanding the dynamics of our economic system.
> For a consequence of this view is that one cannot
> change the economic system in much significant way
> without changing morality.54
> 
> The present-day economic systems reflect the values and
> power structures of present-day societies, including the low
> value is given to justice and trustworthiness, and a highly
> skewed power and wealth structure. If people reject these
> values and seek a greater emphasis on integrity and on
> fairness, it should be relatively easy to adjust laws and
> economic institutions to change the incentives of the system
> in favour of such values. The main cause of economic
> problems according to Hatcher is structural and not financial.
> It was corruption in the financial system and mismanagement
> of the monetary policy in 2008 financial crisis which was the
> cause of failure of the free-market economy and subsequently
> continuation of crisis. Hatcher rightly commented:
> One can question the validity of this opposition of
> moral and economic values. It is just possible that the
> dehumanising values associated with our modern
> economic system precede the system rather than flow
> from it. Perhaps it is not so much that money corrupts
> but that corrupt people are using wealth in corrupt
> ways for corrupt ends. Perhaps, in short, our economic
> system is simply an external and concrete reflection of
> our collective inner life which the immense resources
> of modern technology have allowed us to project and
> magnify to greater dimensions.55
> 
> Some people may argue that ‘the market’ will naturally bring
> about all the necessary changes and eventually forms a
> balanced economy or an equilibrium condition in the system.
> William Hatcher. ‘Economics and moral values’, World Order magazine, vol.
> 9, no. 2, Winter 1974-75, p. 16.
> Ibid. p. 15.
> Economics and the Bahá’í Faith
> 
> The argument is that as supply curves and demand curves and
> the invisible hand of the market (including competition and
> price system) and processes of technological innovation all
> work together naturally to bring about a new equilibrium.
> The opponents of the free-market economy have grave
> doubts about this. It is argued that the market as it is currently
> structured consistently undermines long-term planning by
> focusing on short-term profit maximisation and other short-
> term incentive structures. Moreover, even the most
> enlightened long-term planning will ultimately need to be
> accompanied by a degree of spiritually motivated self-
> sacrifice, in which people voluntary reduce their material
> consumption out of commitments to social justice and
> ecological sustainability, rooted in recognition of their true
> spiritual nature. It is also argued that many consumers are not
> educated and do not have enough information about goods
> and services they buy. In other words, the education and
> reasoning of people have not reached that standard to make
> right choices.
> 
> The Bahá’í view is that humans are not only distinct from the
> rest of creation, but at its apex, distinct and distinguished
> from all else, as Bahá’u’lláh quoted from the Bible ‘God hath
> created all humankind in his own image, and after his own
> likeness.’56 Created in the image and likeness of God means
> that whereas all other created things reflect one or more of
> the signs or qualities of God, the human being is empowered
> and given the capability, opportunity, facility and guidance to
> reflect all the qualities of God. Some of those attributes that
> befit human dignity includes forbearance, compassion,
> mercy, and loving-kindness towards others. Reflecting upon
> these attributes means that in our daily lives, we can
> 
> Bahá’u’lláh. Quoted in Lights of Guidance, p. 612.
> The Bahá’í Perspective on Globalization
> 
> demonstrate and promote praiseworthy acts, which are the
> force behind all advancement and progress in a global
> society.
> 
> Having grasped the purpose for human being, let us consider
> the prerequisites for the fulfilment of this purpose. For the
> sake of this discussion, a distinction is made between
> spiritual and moral values. Spiritual values are qualities like
> purity, devotion, knowledge, and contentment, which can be
> exercised on an individual basis or the community and thus
> are independent of others. There are other qualities like
> forbearance, compassion, justice and mercy, which require
> that one be in association or in a relationship with other
> beings. These are moral qualities or values, which are
> dependent on reciprocal action. As we are dynamic beings, so
> is our society. Dynamism is characterised by continuous
> change and progress. For an effective change, moral and
> spiritual values become essential for an ideal globalization
> and sustainability in the long run.
> 
> The conventional view indicates that human values and
> ethical considerations are on a different level from economic
> issues of production, distribution and consumption. This view
> is particularly dominant in the neoclassical model of
> economics. Expounding on this John Wilson writes that the
> model of neoclassical ‘portrayed as a purely positive model
> of behaviour, independent of any normative considerations. It
> argues that the source of human motivation is rational, self-
> interest maximisation.’57 The Bahá’í position is different from
> the neoclassical model of human behaviour and morality in
> economic issues. The Bahá’í Writings integrate human values
> 
> John Wilson. Cited in Frank Ackermann, ed., Human well-being and economic
> goals, New York, 1991, p. 23.
> Economics and the Bahá’í Faith
> 
> with economic matters. This is clear from the following
> statement from ‘Abdu’l-Bahá, ‘When the love of God is
> established everything else is realised, this is the true
> foundation of all economics.’58
> 
> Of course, the acquisition of spiritual qualities and moral
> behaviour is what the Bahá’í Faith has in common with all
> other Faiths. While this is true, the goal of religious practice
> in the Bahá’í Faith is shifted from the individual development
> to the community development. Hence, another aspect of
> Bahá’í globalization is the collective progress of the whole of
> humanity. For example, the importance of justice is
> repeatedly stated in the Bahá’í sacred Writings and this
> principle affects the entire society. In the same way, those
> attitudes that lead to unity and human solidarity are valued.
> Commenting on Bahá’í Writings, Farzam Arbab believes that
> the eradication of social prejudices and the beauty of unity in
> diversity are essential requirements for a meaningful
> globalization. For Arbab, ‘Love includes the abolition of
> social prejudices and the realisation of the beauty of diversity
> in the human race.’ 59 Hence, a change and expansion of
> ‘social vision’ through specific human qualities have an
> impact on collective actions in society. Arbab maintains that
> the meaning of human values changes when living in a global
> society. For example, he writes:
> Detachment from the world is not taught in a way that
> leads to idleness and to the acceptance of oppression;
> it is acquired to free us from our own material
> interests in order to dedicate ourselves to the
> wellbeing of others. To this expansion of the meaning
> of almost all qualities is also added a constant
> endeavour to acquire social skills to participate in
> meetings of consultation, to work in groups, to
> 
> ‘Abdu’l-Bahá. Promulgation, p. 238.
> Farzam Arbab. Canadian Bahá’í Studies Publication, 1987, p. 11.
> The Bahá’í Perspective on Globalization
> 
> express opinions with fairness and clarity, to
> understand the points of view of others, to reach and
> carry out collective decisions.60
> 
> Thus, the path of spiritualisation mentioned by Arbab should
> not be confused with one that defines goodness passively and
> produces a human being whose greatest virtue is not to harm
> anyone; it is a path to create social activists and agents of
> change.
> 
> Similarly, William Hatcher explains the importance of
> morality and the role of social organizations in lifting humans
> from a lower level of existence to a higher level of moral
> functioning, he writes:
> Everything, which lifts us above an animal level of
> existence, is made possible only through the existence
> of a certain level of social organization, which, in
> turn, depends on the existence of a certain level of
> moral functioning. We may, therefore, say that the
> particular form of social organization in a given
> society at a given time is an expression of this basic
> morality on which it depends. Economics depends on
> morality. We can also see that the basic direction of
> social evolution is that it progressively maximises the
> internal freedom of the individual, requiring a
> concomitantly more refined and delicately balanced
> level of social organization.61
> 
> Thus, for Hatcher, morality is fundamental. Economics
> depends on morality, and effective globalization depends on
> the quality of relationship between individual members of the
> society, which in turn relies on the level of moral functioning.
> In the analysis of the subject of morality, Hatcher
> distinguishes between two kinds of morality: one is intra-
> personal or internal morality, which focuses mainly on a
> Ibid.
> William Hatcher. World Order magazine, winter 1974-74, p. 17.
> Economics and the Bahá’í Faith
> 
> behaviour that affects the individual or agent, and the second
> one is inter-personal or external morality and this one focus
> on behaviours that affect others. 62 Bahá’í morality can be
> described as a balance between the two approaches. It is not
> only the quality of individual members of the society that
> must be considered, but also the value of the association that
> exist among human beings. The claim is that such a balance
> of relationship is essential for a meaningful globalization and
> it is in our reach because of the advancement of human
> knowledge and consciousness.
> 
> 6.6     Multi-dimensional aspect of an ideal globalization
> Globalization is much more than internationalisation. It has a
> multi-dimensional concept. Usually, internationalisation
> refers to trade activities that take place with more than one
> country. In contrast globalization include all matters that
> affect the planet earth.        Simon Reich identifies four
> perspectives      on      globalization:    historical/political;
> cultural/sociological; technological/spatial; and finally an
> economic phenomenon.63 For Joseph Stiglitz globalization is
> also multi-dimensional and encompasses the international
> flow of ideas and knowledge, the sharing of cultures, global
> civil society, and global environmental movements.64 Moojan
> Momen has named five groupings of globalization:
> normative, psychological, financial, institutional and
> universalism.65 For Shapour Rassekh the multi-dimension of
> globalization     includes:     geographical,    demographic,
> technological, educational, cultural, economics, and
> 
> Ibid.
> Simon Reich. ‘What is globalization? Four possible answers’, working Paper #
> 261, Pittsburgh: University of Pittsburgh press, 1998, p. 3.
> Joseph Stiglitz. Making globalization work, p. 4.
> Moojan Momen. ‘The Globalization of the Bahá’í Community: 1982-1921’,
> Bahá’í and Globalization, pp. 76-93.
> The Bahá’í Perspective on Globalization
> 
> environmental.66 The view here is that the more detailed the
> dimensions, the more successful will be the process of
> establishing an enlightened globalization in the long run.
> Hence, I am suggesting the following dimensions for a
> meaningful globalization: economic, financial, political,
> cultural, educational, technological and information
> technology, marketing, ecological, global resource use,
> developmental, governance, institutional, human rights,
> military and disarmament, democracy, weight and
> measurement, currency, language, global division of labour,
> Industrial development, ideological, and global ethics. It can
> be maintained that these different dimensions of globalization
> are closely connected to each other and intertwined with the
> question of values.
> 
> There is a great emphasis by some religious and social
> movements toward globalization and global issues. For Juan
> Cole, the religious movements concerned with globalization
> have tended to be either liberal or conservative. Cole argues
> that ‘Liberal religious groups often attempt to accommodate
> the social changes provoked by globalization as far as
> possible in the framework of their traditions, concentrating on
> charitable work and social justice.’67 Hence, there is a great
> effort by religious and social movements to associate
> themselves with globalization and global issues. Since the
> early 1990s, economists have been using dimensions of
> globalization with reference to the phenomenal growth in
> international trade and investment. 68          Non-economist
> 
> Shapour Rassekh. Dunya Niyazmand-I Yik Tamaddun-I Jahani Ast, (author’s
> translation from the Persian language: The world needs a global civilisation),
> Spain: Foundation Nehal, 2010, pp. 23-24.
> Juan Cole. ‘Globalization and Religion in the Thought of ‘Abdu’l-Bahá’,
> Bahá’í and Globalization, pp. 55-75, at p. 56.
> Farhad Rassekh and John Speir. ‘Can economic globalization lead to a more
> just society?’ Journal of Global Ethics, vol. 6, no. 1, 2010, pp. 27-43, at p. 27.
> Economics and the Bahá’í Faith
> 
> scholars, however, have a broader view of the term. For
> example, David Held argues that globalization ‘is not a
> singular, linear narrative, nor is it just a matter of economics.
> It is cultural as well as commercial and in addition it is legal:
> it is about power as much as prosperity or the lack of it.’69
> Similarly, Anthony Giddens argues that globalization
> encompasses more than an international integration of
> economies. He writes, ‘Globalization is really about the
> transformation of space and time. I define it as action at
> distance, and relate its intensifying over recent years to the
> emergence of means of instantaneous global communication
> and mass transportation.’70 For Frank Lechner and John Boli
> globalization refers to ‘the processes by which more people
> across large distances become connected in more and
> different ways.’71 Similarly, Ronald Robertson, who was the
> first author to use the term globalization in the title of a
> sociological article in 1985, describes globalization as ‘the
> compression of the world and the intensification of the
> consciousness of the world as a whole…The overall process
> by which the entire world becomes increasingly
> interdependent, so as to yield a single place.’72 These writers
> and scholars agree that globalization is more than just limited
> to economics and finance, it has multi-dimensional
> phenomenon.
> 
> Shoghi Effendi in 1931 wrote that the world is ‘…contracted
> and transformed into a highly complex organism by the
> 
> David Held, Anthony Barnett and Caspar Henderson. Debating globalization,
> Cambridge: Polity Press, 2005, p. 2.
> Anthony Giddens. Beyond Left and Right, California: Stanford University
> Press, 1994, pp.4-5.
> Frank Lechner, and John Boli. The Globalization Reader, 5th. ed., London:
> Wiley Blackwell, 2008, p. 2.
> Ronald Robertson. The Professoriate: Profile of a Profession, Springer, 2005,
> p. 21.
> The Bahá’í Perspective on Globalization
> 
> marvellous progress achieved in the realm of physical
> science, by the worldwide expansion of commerce and
> industry.’ 73 He also said, ‘The world is contracted into a
> neighbourhood’74 Socialist theorist, Malcolm Waters not only
> envisions a ‘world society’ but a ‘diverse’ one, according to
> him, in ‘a globalised world there will be a single society and
> culture occupying the planet.’ 75 Shoghi Effendi describes the
> world as ‘organically unified in all the essential aspects of its
> life’ [that is] ‘yet infinite in the diversity of the national
> characteristics of its federated units.’ 76 Therefore, as Zaid
> Lundberg points out, although Shoghi Effendi did not use the
> term globalization, he described it as a multi-dimensional
> phenomenon; contraction or compression of the world; major
> transition or transformation; moving towards a single world
> society, yet diversified; co-dependent or interdependent
> society. 77 Hence, the modern scholars appear to be in
> agreement with Shoghi Effendi’s description of the concept
> of globalization.
> 
> Ronald Robertson proposed the following four basic
> dimensions of globalization: society, the individual, the
> international system, and the emergent categories of the
> human. Commenting on Robertson’s proposition, Juan Cole
> has outlined ‘Abdu’l-Bahá’s conception of the four
> dimensions of globalization, a summary of which is outlined
> here:
> I) Society: ‘Abdu’l-Bahá was very much concerned
> with the development of the Iranian society. He was
> concerned with the need to transform the Qajár government
> 
> Shoghi Effendi. World Order, p. 47.
> Ibid. Advent, p. 87.
> Malcolm Waters. Globalization, London: Penguin Books, 1995, p. 9.
> Shoghi Effendi. World Order, pp. 42-43.
> Zaid Lundberg. Bahá’í and globalization, pp. 121-125.
> Economics and the Bahá’í Faith
> 
> into a more modern Iranian national society. ‘Abdu’l-Bahá
> acknowledged that in the late nineteenth century Europe and
> the Americas were renowned for their ‘law and order,
> government and commerce, art and industry, science,
> philosophy and education’78 to which he believed Iran must
> aspire. He also argued that society needs practical steps such
> as the implementation of the law, parliamentary democracy,
> separation of religion and state, and religious tolerance.
> 
> II) The individual: The construction of the individual
> as a person in the context of globalization is a central concern
> of ‘Abdu’l-Bahá. He indorsed the principle of compulsory
> and universal education, He said ‘by man is meant the perfect
> individual, who is like unto a mirror in which the divine
> perfections are manifested and reflected.’79 He advocated that
> all be educated for ethical and intellectual progress.
> 
> III) The international system: ‘Abdu’l-Bahá spoke a
> great deal about the sort of international system he wished to
> see in an era of globalization. He began discoursing on these
> matters in His Secret of Divine Civilisation in 1875, where
> He argued that Europe’s material civilisation of the
> nineteenth century had become unbalanced and had come to
> pose a danger to the world because it had not been
> accompanied by similar advances in spiritual civilisation.
> 
> IV) The emergent categories of the human
> development: ‘Abdu’l-Bahá sees the emergence of the world
> as a single place as a quintessentially modern development,
> made possible by profound technological and social changes.
> ‘Abdu’l-Bahá points out that in the early twentieth century it
> 
> ‘Abdu’l-Bahá. The Secret, p. 10.
> ‘Abdu’l-Bahá. Selections, p. 61.
> The Bahá’í Perspective on Globalization
> 
> was easy for everyone ‘to travel to every land, to associate
> and exchange views with its peoples, and to become familiar,
> through publications, with the conditions, religious beliefs
> and the thoughts of all nations.’80
> 
> In all the above discussion of globalization there is a
> connection between the Writings of scholars and the Bahá’í
> thinking, which is about human relationships, exchange of
> thoughts, prosperity of all nations, and effective
> communication, all of which are necessary requirements for
> an enlightened globalization.
> 
> 6.7     Principles of an ideal globalization
> The Bahá’í teachings on globalization are numerous. These
> are some practical examples of Bahá’í teachings that
> influence positively the process of the creation of an ideal
> and enlightened global society. A limited number of these
> principles are discussed here. These principles directly and
> indirectly facilitate the process of a meaningful globalization.
> It is important to note that Bahá’í teachings are
> interdependent, and in any Bahá’í discussion, including
> globalization, the totality of the Bahá’í Faith needs to be
> considered.
> 
> 6.7.1 Universal and compulsory education
> One of the social teachings that can have a positive effect in
> the process of forming a meaningful globalization is the
> application of ‘universal and compulsory education’. There is
> recognition that education is a basic human right, such as the
> United Nations Charter of Human Rights, and the Council of
> European Charter on Education. In the Ridván message of the
> Universal House of Justice 2006, it is referred to: ‘concern
> 
> Quoted in Juan Cole. Bahá’í globalization, p. 62.
> Economics and the Bahá’í Faith
> 
> for human rights to the systematic pursuit of universal
> education. An all-inclusive approach to addressing social and
> economic issues will become the norm when children and
> youth receive proper education, both quantitative and
> qualitative. But, what constitutes ‘proper education’ in the
> Bahá’í Writings? The reference is given to three different
> kinds of education that must be considered namely material,
> human and spiritual.81
> 
> Education and training and skill learning are also an
> important part of economic development. This principle is the
> most important factor in increasing the potential of a
> country’s population. According to economic development
> scholar Michael Todaro, a major factor in determining the
> success of an economy is the level of education and training
> provided to its citizens. 82 In a global market economy in
> which countries and organizations struggle to have effective
> communication, education and training is an effective tool for
> these accomplishments. For example, by introducing
> universal primary education in Uganda and Bangladesh in
> 1997, the initial results show an improvement in economic
> development, a decline in the unemployment rate, a decline
> in poverty, and an increase in productivity.83 The argument
> 
> ‘Abdu’l-Bahá in Some Answered Questions, p. 8. Explains three types of
> education: Material education is concerned with the progress and development of
> the body, through gaining its sustenance, its material comfort and ease. This
> education is common to animals and man. Human education signifies civilisation
> and progress — that is to say, government, administration, charitable works,
> trades, arts and handicrafts, sciences, great inventions and discoveries and
> elabourate institutions, which are the activities essential to man as distinguished
> from the animal. Divine education is that of the Kingdom of God: it consists in
> acquiring divine perfections, and this is true education; for in this state man
> becomes the focus of divine blessings, the manifestation of the words, ‘Let Us
> make man in Our image, and after Our likeness.’ This is the goal of the world of
> humanity.
> Michael Todaro, Economic Development, p. 343.
> Louise Grogan. ‘Universal Primary Education and School Entry in Uganda,’
> Journal of African economics, vol. 18, no. 2, 2008, pp. 183-211, at p. 186.
> The Bahá’í Perspective on Globalization
> 
> given by Todaro is that the marginal social benefit of
> providing compulsory basic education is more than a
> marginal social cost. The social advantages not only include
> material benefits, but also removal of different kinds of
> prejudices such as religious, ethnic, racial, and economic that
> are barriers to attaining a meaningful globalization. The
> argument in the Bahá’í Writings is that ‘prejudices of any
> kind are the destroyers of human happiness and welfare.’84
> Hence the spread of universal and compulsory education
> eliminates all kinds of prejudices and creates a smooth
> process for reforming current globalization.
> 
> Universal education and training will increase the capacity
> and productivity of the population and facilitate the
> movement of labour from countries with a surplus of skilled
> labour to countries with shortages. The Bahá’í community of
> Iran is a good example. From its very inception, it invested
> heavily in education by establishing schools for boys and
> girls. Commenting on this, Momen writes:
> Education and literacy, especially of women,
> continued to be of prime concern to the Bahá’í
> community. After the Bahá’í schools were closed by
> government order in 1934, the Bahá’ís continued to
> hold moral education classes (dars-i-akhláq) on
> Fridays. By 1973 the Bahá’í community was able to
> report the eradication of illiteracy among Bahá’í
> women under forty years of age.85
> 
> Education can influence the future form and direction of a
> country and its position in the global perspective. It also
> determines the rate of Gross Domestic Product, which
> measures the level of economic growth and standard of living
> of a country. Education, apart from affecting the national
> ‘Abdu’l-Bahá. Cited in Bahá’í World Faith, p. 240.
> Moojan Momen. ‘Iran: History of the Bahá’í Faith,’ Bahá’í World, 1994, vol.
> 15, p. 248.
> Economics and the Bahá’í Faith
> 
> income, provides other opportunities for society. Todaro
> discusses a number of opportunities that education can offer
> to a country, including creating a more productive labour
> force and endowing it with increased knowledge and skills;
> providing widespread employment and income-earning
> opportunities for all kinds of jobs; creating a class of
> educated leaders in government services, and private and
> public corporations; and providing the kind of training and
> education that would promote literacy and basic skills for
> population control. Hence, investing more into education and
> training provides an attractive opportunity, which has a direct
> impact on improving economic performance. The economic
> returns from extra investment in education of the lower
> income group in developing countries will be substantial. The
> positive opportunities and accomplishments achieved through
> education will create the necessary conditions for a smoother
> process of attaining a meaningful globalization.
> 
> It is not possible to discuss the relationship between
> education and development without explicitly linking the
> structure of the educational system to the economic and
> social character of a country. An educational system
> accordingly reflects the essential nature of a society. For
> Todaro ‘If the society is non-egalitarian in economic and
> social structure, the educational system will probably reflect
> that bias in terms of who is able to proceed through the
> system.’ In modern times, an example of a society being
> non-egalitarian in economic and social structure is religious
> persecution. Religious persecution is a great barrier to the
> development of the human resources necessary for growth
> and the advancement of the community and the nation. For
> example, the absence of equality, opportunity and human
> rights and also existence of social exclusion in Iran are
> barriers for Bahá’í youths to have access to higher education.
> The Bahá’í Perspective on Globalization
> 
> Since 1979, the government of Iran has created barriers for
> Bahá’í pupils to enter higher educational institutions. Such
> government actions may cause all those who are excluded
> from education to lack the necessary schooling and training
> to be able to contribute to the advancement of their
> communities and development of the country.86
> 
> Discussing religious freedom, Brian Grim, an expert in
> international religious demography and the socio-economic
> impact of restrictions on religious freedom, raise a sensible
> and rational question: Is religious freedom good for the
> economy? Analysing this question, he believes that Beyond
> promoting peace and stability, religious freedom can
> contribute to positive socioeconomic development in the
> same way that freedom in general does. Grim refers to
> Amartya Sen (1999), for instance, and argues that societal
> development requires the removal of sources of “unfreedom.”
> He writes:
> According to Sen’s reasoning, religious restrictions
> are a source of unfreedom. Removing impediments to
> religious freedom facilitates freedom of other kinds.
> Research finds that religious freedom is highly
> correlated with the presence of other freedoms, such
> that it can be considered part of a bundled commodity
> of social goods that have significant correlations with
> a variety of positive social and economic outcomes
> ranging from better health care to higher incomes for
> women.87
> 
> On the expulsion of Bahá’ís from public employment Moojan Momen writes:
> ‘In 1979 a large number of Bahá’ís in Iran were in public employment. Since the
> Bahá’í Faith emphasizes the importance of education, a sizeable proportion of the
> Bahá’í community was in professions requiring a high level of education.
> Furthermore, certain areas of public service such as health and education are
> favoured by Bahá’ís in view of what the Bahá’í scriptures say about these
> professions. ‘The economic strangulation of the Bahá’í community of Iran’, 2009.
> Brian Grim. Interdisciplinary Journal of Research on Religion, Volume 10,
> 2014, Article 4, pp. 1-19, at p. 4.
> Economics and the Bahá’í Faith
> 
> Religious freedom is also correlated with one of the key
> ingredients of sustainable economic development. This is
> particularly important for businesses and the whole economy
> because where stability exists, there are more opportunities to
> invest and to conduct normal and predictable business
> operations, especially in emerging global economy.
> 
> The non-egalitarian character of the social structure of certain
> societies, such as religious discrimination, absence of human
> rights, lack of opportunities for education, are obvious
> challenges facing a meaningful globalization. Active
> participation in community life is highly valued and is one of
> the components of a meaningful globalization. Social
> exclusions related to poverty, unemployment, education, and
> different kinds of discrimination are obvious barriers to
> participating in community activities. Therefore, if the
> absence of a fair social system effectively denies educational
> opportunities for a group of people, then the system can even
> increase inequality in the country, which then affects other
> countries.
> 
> A similar situation is possible in countries where the poor
> may not have access to education because the educational
> systems are inherently non-egalitarian. Educational
> economist John Simmons gives the following sketch of how
> the poor are beginning to regard education:
> Schooling, the poor quickly learn, in most countries,
> is an escape from poverty for only a few. The poor are
> the first to drop out because they need to work, the
> first to be pushed out because they fall asleep in class
> as a result of malnourishment, and the first to fail their
> French and English tests because upper income
> children have had better opportunities at home. The
> hope brought to village parents by the construction of
> the primary school soon fades. Enough schooling to
> secure a steady, even menial job for their son, let
> The Bahá’í Perspective on Globalization
> 
> alone for their daughter, seems just beyond their
> grasp. Before…any schooling would have done to
> achieve their aspiration. Now a primary school
> certificate is needed, and some are saying that even
> students with some secondary schooling cannot get a
> steady job, and they could never afford to send their
> son away to town for secondary schooling.88
> 
> This view indicates that in the situations described by
> Simmons, students from a lower income group are not given
> an equal opportunity to complete any given level of
> education.
> 
> Before ending this part, there is a need to re-examine the
> issue of education and training in reference to population
> explosion. Some resources such as the land remain more or
> less the same, and as the population increases, less land will
> be available; portions becoming smaller when divided by
> more numbers. This aspect of the economy along with the
> economic problem of scarcity in relation to unlimited wants
> and limited rare resources makes the condition of living
> unfavourable. However, it can be argued that advancement in
> knowledge, innovation, technology and productivity, lead to
> production of greater amount of goods and services and
> therefore curtail scarcity. Population, if educated, skilled, and
> dynamic, would be able to increase the productivity of the
> land to satisfy the increased population. Indeed, development
> of human knowledge and science leads to the ability to
> change one’s life for the better, and satisfies the basic needs
> of the population, now and in the future. The satisfaction of
> one’s physical needs (related to the body) and physiological
> needs (related to the functioning of the body) are important
> and vital for the life of the body. Spiritual education on the
> 
> John Simmons. ‘Education, poverty and development’, World Bank paper no.
> 188, Washington, D.C.: World Bank, 1974, p. 32.
> Economics and the Bahá’í Faith
> 
> other hand will help one to be content with a moderate
> lifestyle.
> 
> 6.7.2 The view on world citizenship
> The concept of ‘world citizen’ 89 appears in the Bahá’í
> Writings frequently and gives a clearer understanding of the
> Bahá’í approach for attaining a meaningful globalization. In
> the Bahá’í community the concept of being world citizens is
> instilled in children so to broaden their love for the whole
> world and all the people in it, rather than for only one group
> of people. The Universal House of Justice states: ‘In keeping
> with the requirements of the times, consideration should also
> be given to teaching the concept of world citizenship as part
> of standard education of every child.’ 90 Such a mission,
> according to the Bahá’í International Community, should
> begin with the acceptance of the interconnectedness of the
> nations: ‘While it [world citizenship] encourages a sane and
> legitimate patriotism, it also insists upon a wider loyalty, a
> love of humanity as a whole.’ 91
> 
> The concept of ‘world citizenship’ encompasses the
> principles of social and economic justice at all levels of
> society, including ‘equality of the sexes; racial, ethnic,
> national and religious harmony…Promotion of human
> honour and dignity, understanding, amity, co-operation,
> trustworthiness, compassion and the desire to serve.’ 92 The
> Bahá’í community is learning how to practice and promote
> 
> For the concept of ‘world citizenship’ see also: Shoghi Effendi: Advent of
> Divine Justice, p. 4. Promised Day is Come, p. 122. The World Order of
> Bahá’u’lláh, p. 40, and p. 163. And a statement by the Bahá’í International
> Community entitles ‘World Citizenship: A Global Ethic for Sustainable
> Development,’ New York: United Nations Office, dated 14 June 1993.
> Universal House of Justice. The Promise of World Peace, part II.
> Bahá’í International Community. ‘World Citizenship: A Global Ethic for
> Sustainable Development,’ New York: United Nations Office, 14 June 1993.
> Ibid.
> The Bahá’í Perspective on Globalization
> 
> ‘world citizenship’ effectively. Several factors must be
> considered by individual Bahá’ís, such as the responsibility
> of putting the interests of the world before one’s own,
> commitment to the whole world as one’s own home,
> accountability for one’s actions, preserving nature, and
> serving the common good. These are some of the challenges
> faced, as world citizenship requires individuals to reach
> beyond their own self to be a true world citizen.
> 
> 6.7.3 Institution of the Nineteen-Day Feast
> As discussed earlier, Bahá’í globalization is based on the
> principle of unity. Bahá’ís work towards community building
> at local level, as unity starts at the grass roots through
> individual efforts, concerted community efforts and the
> institutions of the Faith. At the core of Bahá’í community life
> is the Nineteen-Day Feast, 93 held every nineteen days. The
> Local Spiritual Assembly 94 has the responsibility of
> organising these gatherings in their own specific area of
> jurisdiction. Each individual Bahá’í has the responsibility of
> working toward unity through his or her behaviours, actions
> and lifestyle. The Nineteen Day Feast is a good example of
> the close relationship of the individual, the community and
> the institutions, where all Bahá’ís in the area, regardless of
> 
> The Bahá’í year consists of 19 months of 19 days each (361 days), with the
> addition of “Intercalary Days” (four in ordinary and five in leap years) between
> the eighteenth and nineteenth months which adjusts the calendar to the solar year.
> The months are named after the attributes of God. Each Bahá’í community holds a
> Nineteen Day Feast on the first day of each Bahá’í month. The Feast has spiritual,
> administrative and social functions and is the principal gathering of Bahá’ís of a
> particular locality. Retrieved: http://www.bahai.us/welcome/principles-and-
> practices/bahai-calendar/>, [accessed: 26/01/ 2012].
> Some of the functions of local Spiritual Assembly are: ‘to protect at all times
> the Temple of the Cause; to promote amity and concord amongst the friends; to
> extend at all times the helping hand to the poor. The sick, the disabled, the orphan,
> the widow, irrespective of colour, caste, and creed; to promote…the material as
> well as the spiritual enlightenment of youth, the means for the education of
> children, institute, whenever possible.’ Shoghi Effendi. Quoted in Principles of
> Bahá’í Administration, pp. 30-40.
> Economics and the Bahá’í Faith
> 
> their socio-economic status and educational achievements
> gather together to worship, discuss the community’s progress,
> and consult about possible ways to build the community.
> These discussions and recommendations are then taken to the
> Local Spiritual Assembly, where they will be consulted on
> further and a plan of action prepared for the local Bahá’í
> community. This will allow involvement from the grassroots
> in the exercise of community building and bringing about
> unity. These local gatherings encourage an individual-
> initiative attitude in Bahá’ís to be involved in development
> activities, adding to the capacity of a village, city or town.
> For example, Shoghi Effendi, in his letters to the Bahá’í
> community of the United States, stresses the importance of
> the duties of Local Spiritual Assemblies in ‘the maintenance
> of unity and capacity of community action…through the
> Nineteen Day Feasts and other local meetings.’95 The holding
> of these gatherings is to bind hearts together. These
> gatherings are referred to as feasts, as they provide for the
> spiritual and physical needs of the community. They contain
> three parts, devotional, administrative and social. The
> spiritual part consists of reading and reciting from the Holy
> Scriptures, which then prepares the attendees to consult on
> the needs of the community and the progress of its plans
> during the administrative part, which is then followed by the
> social part when the Bahá’ís partake of some form of
> refreshment together, even if it is just water. The holding of
> thousands of such Feasts around the world with objectives
> such as ‘unity in diversity’, ‘world citizenship’, ‘democratic
> method of decision-making’, ‘respecting the local cultures’,
> and ‘being free from all kinds of prejudices’ is a practical
> way of learning and practising a meaningful globalization.
> 
> Shoghi Effendi. Bahá’í World Journal, vol. 5, 1976, p. 74.
> The Bahá’í Perspective on Globalization
> 
> 6.7.4 Institution of the Bahá’í marriage
> This is another principle that helps maintain unity within the
> Bahá’í community. As discussed earlier in chapter one,
> family is the basic unit of society. Unless this all-important
> building block is healthy and cohesive, society cannot be
> healthy and unified. The foundation of a successful and
> healthy family is the preparation for union as an essential
> element of a happy marriage. Bahá’u’lláh said marriage is ‘a
> fortress for well-being and salvation.’96 He not only permits
> but also keenly encourages Bahá’ís to marry with people of
> any belief or cultural, ethnic and racial background, and with
> no consideration of social class and wealth. Marriage is to
> ensure not only unity between the couple but also between
> the two families, and even different communities and
> cultures, such as in mixed marriages.
> 
> Mixed marriages, although challenging in some ways, enable
> individuals and families to learn about and respect each
> other’s cultures, a phenomenon that would have an effect on
> globalization. Despite the challenges, mixed marriages have
> the potential to remove national, cultural and religious
> barriers in the long run and improve communication between
> the parties. In theory, children raised in such families develop
> a broader view of the world, with a positive attitude of
> respect and effective communication with different cultures.
> 
> Studying the Bahá’í Writings, one notes that the founder of
> the Faith calls the entire humanity to participate in a number
> of principles as part of achieving meaningful globalization.
> The exploration of the following four principles is of special
> interest to this topic.
> 
> Bahá’u’lláh. Aqdas, note 88.
> Economics and the Bahá’í Faith
> 
> 6.7.5 Pioneering and travel teachings
> The closest term to the concept of pioneering is
> ‘missionary’.97 However, it must be clear that pioneers do not
> proselytise in light of the comparison to missionaries.
> Pioneers are those Bahá’ís who leave their home and travel to
> different parts of the world to serve varying needs of a
> particular community, both Bahá’í and non-Bahá’í. By living
> with other people and nations, Bahá’ís practise ‘unity in
> diversity’ and ‘world citizenship’, two important features of
> an enlightened globalization. The program of pioneering in
> the last few decades has resulted not only in promoting the
> Bahá’í Faith in all corners of the globe, also working towards
> removing prejudices, which may otherwise form obstacles
> towards creating a meaningful globalization. Pioneers and
> travel teachers show in a very practical sense that it is
> possible to be united while being different. It is important to
> note that by moving to different countries, Bahá’í pioneers do
> not intend to change people’s culture and traditions but to
> learn and respect the culture of the community they live.
> 
> 6.7.6 Developing capacity to serve humanity
> Happiness is a relative concept and has a cultural element
> attached to it. It may be argued that the first thing comes to
> mind is to have an adequate amount of income and wealth as
> a tool to become prosperous. However, wealth is the presence
> of a relative condition in people. For a Bahá’í, happiness is
> above the material satisfaction. The Bahá’í Writings refer to
> ‘humanitarian intentions’ 98 , including activities such as
> service to humanity. Bahá’u’lláh states, ‘Vie ye with each
> other in the service of God and of His Cause. This is indeed
> what profiteth you in this world, and in that which is to
> 
> Shoghi Effendi. Citadel of Faith: Messages to America, Wilmette IL: Bahá’í
> Publishing Trust, 1980, p. 41.
> ‘Abdu’l-Bahá. Tablets of ‘Abdu’l-Bahá, vol. 1, p. 43.
> The Bahá’í Perspective on Globalization
> 
> come.’ 99 The worldwide Bahá'í community has been
> endeavouring systematically to affect a transformation among
> individuals and communities around the world, to inspire and
> build the capacity for service.
> 
> In a tablet addressed to Bahá’ís, ‘Abdu’l-Bahá said: ‘You
> must in this instance [that is, service to humanity] sacrifice
> your lives, and in sacrificing your lives celebrate happiness
> and beatitude (emphasis added).’ 100 The perception is that
> happiness and service to humanity need to go hand in hand.
> Bahá’ís are counselled to become distinguished in the virtues
> of the human world, ‘Abdu’l-Bahá states:
> For Faithfulness and sincerity, for justice and fidelity,
> for firmness and steadfastness, for philanthropic deeds
> and service to the human world, for love toward every
> human being, for unity and accord with all people, for
> removing prejudices and promoting international
> peace.101
> These virtues are the basis for an ideal globalization, and
> Bahá’ís have the opportunity to influence communities
> worldwide by practicing those virtues.
> 
> 6.7.7 Social and economic development projects
> The universality of Bahá’í development is incorporated and is
> the basis of Bahá’í inspired social and economic development
> projects. This indicates that in our increasingly
> interdependent world, Bahá’í development efforts must be
> animated by universal values and guided by a vision of the
> world community. Projects are thus designed to engage and
> benefit all the members of a community and not only Bahá’ís.
> This vision is necessary for understanding the true concept of
> globalization. Collabouration with organizations and leaders
> 
> Bahá’u’lláh. Quoted in the Advent, p. 83.
> ‘Abdu’l-Bahá. Tablets of ‘Abdu’l-Bahá, vol. 1, p. 44.
> ‘Abdu’l-Bahá. Promulgation, p. 190.
> Economics and the Bahá’í Faith
> 
> of thought concerned with social, moral and economic
> advancement is an important component of Bahá’í
> development endeavours. Bahá’u’lláh states ‘All human
> beings have been created to carry forward an ever-advancing
> civilisation.’ 102 Consequently, the creation of a prosperous
> and peaceful global society that promotes individual and
> community wellbeing is central to the Bahá'í vision of the
> future, which is incorporated by all economic development
> activities. It is based on these principles that the Bahá’í
> development approach is the struggle to learn universal
> values. This requires engendering a new mind-set in the
> Bahá’í community, which is already in place through various
> educational programs for all ages. The existence of several
> hundreds of social and economic development projects
> worldwide, with visions such as unity, world citizenship,
> service to humanity, work as worship, consultative process of
> decision making, and putting the grass root population at the
> centre of activities, will have a positive effect on reforming
> the current globalization.
> 
> 6.7.8 The Covenant
> Bahá’ís believe that the distinctive unity of the Bahá’í Faith
> stems from a promise from God to humanity that assures His
> continuing guidance after the passing of Bahá’u’lláh. The
> promise is referred to as the covenant (Ahd and Míthág).
> Bahá’u’lláh, in his ‘Will’, ‘the Book of Covenant’, (Kitáb-i-
> Ahd) appointed his son, ‘Abdu’l-Bahá, as his successor and
> the interpreter of His Writings, and the centre of the
> covenant. ‘Abdu’l-Bahá, also in his ‘Will and
> Testament’(Alváh-i-Vasáyá) appointed his grandson, Shoghi
> Effendi, as his successor, the interpreter of the scriptures, and
> the guardian of the Faith. Thus, there is clear authoritative
> 
> Bahá’u’lláh. Gleanings, p. 215.
> The Bahá’í Perspective on Globalization
> 
> interpretation of Bahá’í Holy Scriptures. According to this
> covenant, the Universal House of Justice is the supreme
> governing body of the Bahá’í Faith. Bahá’ís are, therefore,
> united because they follow the same scriptures and authority.
> The organization of the Bahá’í Faith and its administrative
> institutions are such that do not allow the creation of sects,
> branches or denominations. This requires establishment of a
> strong covenant between the central figures of the Bahá’í
> Faith and the believers. The House of Justice describes the
> Covenant as:
> An institution which protects the Cause from
> individuals who, through the assertion of their own
> wills, would try to force God’s Cause into the paths of
> their own preference and thus divide the Faithful and
> subvert the world-wide establishment of divine
> justice.103
> 
> Therefore, the door of interpretation of the Bahá’í laws was
> closed after the passing of Shoghi Effendi in 1957.
> Bahá’u’lláh has prohibited individual ecclesiastical
> leadership who have in the past had the authority to interpret
> the Holy Scriptures, which led to division in religions. It is
> through the Bahá’í covenant that a network of local, national
> and international institutions is in operation with harmony
> throughout the world. Considering that the Bahá’ís live in
> more than one hundred thousand localities worldwide,
> embracing the culture of unity directly affects the Bahá’í
> community and indirectly affects the process of establishing
> of a meaningful globalization.
> 
> 6.7.9 A universal language and script
> Having effective communication among citizens of the world
> is a necessary requirement for achieving a meaningful
> Universal House of Justice. Quoted in Power of the Covenant, Part Two,
> Toronto: Baha’i Canada Publications 1976, p. 17.
> Economics and the Bahá’í Faith
> 
> globalization. Language barriers cause poor communication.
> In a global society with free movement of people across
> nations, one common language helps to remove barriers and
> misunderstandings. Bahá’u’lláh in 1873 called for an
> international auxiliary language and script as a tool for
> effective global communication among people and nations.
> The term ‘auxiliary’ suggests that it is intended to be an
> additional language rather than replacing native languages.104
> Addressing leaders of the world, he states, ‘O members of
> parliaments throughout the world! Select ye a single language
> for the use of all on earth, and adopt ye likewise a common
> script.’ 105 The Bahá’í Writings have not suggested any
> specific language. The proposition is that representatives of
> all nations will decide about the creation of a new language
> or choosing one from among the existing languages.
> 
> An international language is one of the major tools of
> effective communication in the modern world, particularly as
> the process of international trade and global travel advances.
> Such a language may remove the need for a middleman
> between producers of products in rural areas and the final
> consumers. Producers and farmers in developing countries in
> particular, would benefit from an international language to
> make trade easier and fairer in a global market. It would also
> allow consumers and producers of developing nations to be
> able to negotiate and settle costs and prices, which could be
> more favourable to both parties and at times without a need
> 
> According to the Writings of Bahá’u’lláh the process of selecting an
> international language will be in two stages. Commenting on this, the Universal
> House of Justice writes: The first stage is to consist of the selection of an existing
> language or an invented one, which would then be taught in all the schools of the
> world as an auxiliary to the mother languages. The governments of the world
> through their parliaments are called upon to effect this momentous enactment. The
> second stage, in the distant future, would be the eventual adoption of one single
> language and common script for all on earth. (See: Aqdas, note 193.)
> Bahá’u’lláh. Aqdas, verse 189.
> The Bahá’í Perspective on Globalization
> 
> for an intermediary.
> 
> Of course, the selection and implementation of an
> international language is not without challenges. How a
> decision is made for the selection of a common language may
> indeed prove difficult. Furthermore, there may be a risk of
> extinction of rare languages. This risk may not be noticeable
> in the short run because people are enjoying the advantages
> of effective communication, while benefiting from improved
> international trade, tourism, and other benefits associated
> with easier access to advanced technology and innovation.
> But the risk of disappearance becomes more obvious in the
> long run as people frequently use the international language.
> We are already witnessing the disappearance of a number of
> languages. It is estimated that about two thousand rare
> languages [out of an approximate existing 7000] will
> disappear in one hundred years. Another risk of adopting an
> international language is in relation to people’s identity. A
> particular language demonstrates a particular group’s culture,
> identity and heritage, which the Bahá’í teachings hope to
> preserve as part of the unity in diversity. Therefore, it would
> be important for the members of parliaments throughout the
> world when selecting a common language, to pay particular
> attention to preventing the extinction of minority languages
> in future. Whether the introduction of an international
> language will be effective or not depends on its cost and
> benefits. Otherwise, the speed of globalization makes it
> necessary for people to become multilingual.
> 
> 6.7.10 Principle of universal peace
> A meaningful globalization is also an essential prerequisite
> for establishing a valued world peace. Hence, there is a direct
> correlation between peace, globalization and the changes that
> are taking place and the resulting socio-political-economic
> Economics and the Bahá’í Faith
> 
> benefits.
> 
> Most people choose to live in a period of economic stability
> and prosperity. Peace can be a powerful stimulant for
> economic development and a prerequisite for creating a
> prosperous society. However, there is a kind of belief by
> some people that humans are aggressive by nature and
> violence is a part of human nature. The Bahá’í scriptures
> disagree with this view and denounce any human aggression.
> Humans are created with noble characteristics. It is stated that
> ‘in creation and nature, evil does not exist at all; but when the
> natural qualities of man are used in an unlawful way, they are
> blameworthy.’106 Thus, the Bahá’í Writings see human beings
> as essentially good and civilization as evolving towards
> maturity.
> 
> A key barrier to an ideal globalization is war and internal
> conflicts, as they not only result in a waste of resources but
> also create tension and separation among citizens of the
> world. Conflicts greatly contribute to loss of human life and
> wastage and destruction of natural resources, including the
> non-renewable ones. These can cause setbacks particularly
> for the poorer parts of the world. For example, a high level of
> military spending affects the citizens’ quality of life by
> limiting spending on developmental and social programs.
> However, it can be argued that for some nations war and
> conflict lead to arms production, and the export of armaments
> boosts the domestic economies, including job creation. These
> issues are of major concern in the Bahá’í Writings. In one of
> 
> Abdu’l-Bahá, Baha’i World Faith, p. 320.
> The Bahá’í Perspective on Globalization
> 
> His Writings addressed to ‘Rulers and Monarchs’ 107 of the
> world Bahá’u’lláh said, ‘They [sovereigns] must put away the
> weapons of war, and turn to the instruments of universal
> reconstruction.’ 108 Waste of resources is one of the most
> pressing issues for economists and the Bahá’í Writings
> strongly discourage any wastage of resources, human and
> physical. But what are the ‘instruments of universal
> reconstruction’? The amount spent on war can be diverted to,
> for example, different forms of public services, such as
> education and health, research and development of sciences
> and arts, for improving people’s lives.
> 
> But what is the interest of economists in studying peace?
> Some of the important assumptions and objectives of
> companies are related to cost minimisation, profit
> maximisation, and utility maximisation. During a period of
> war resources are destroyed, which adds to the cost of
> production. In theory, economics is also concerned about the
> cost of starting a new war – not only the cost to taxpayers,
> but also the possible effect on the economy, on oil prices, on
> the stock market, on inflation and unemployment, and on the
> standard of living. The concern is about the opportunity cost
> of resources allocated to war, in both real value and monetary
> value, including rebuilding cities after the war. If we define
> economics in terms of efficiency, then it is concerned with
> how good resources, such as human, physical, time, and
> technology, are used to produce an end result. Consequently,
> war, conflict and violence are not helping to protect
> resources. In the statement below Shoghi Effendi outlines the
> 
> The chosen kings and rulers of the earth whom Bahá’u’lláh addressed include:
> Napoleon III, Queen Victoria, Kaiser Wilhelm I, Tsar Alexander II, the Austrian
> Emperor Franz Josef, the Ottoman Sultan ‘Abdu’l-‘Aziz and the Qajar Monarch
> Násiri’d-Dín Sháh. See: The Proclamation of Bahá’u’lláh, Haifa: Bahá’í World
> Centre Publications, 2nd ed., 1972.
> Bahá’u’lláh. Epistle to the son of the wolf, pp. 30-31.
> Economics and the Bahá’í Faith
> 
> immense opportunity cost related to the waste of resources.
> He also recognises the associated benefits resulting from
> saving resources:
> The enormous energy dissipated and wasted on war,
> whether economic or political, will be consecrated to
> such ends as will extend the range of human
> inventions and technical development, to the increase
> of the productivity of mankind, to the extermination
> of disease, to the extension of scientific research, to
> the raising of the standard of physical health, to the
> sharpening and refinement of the human brain, to the
> exploitation of the unused and unsuspected resources
> of the planet, to the prolongation of human life, and to
> the furtherance of any other agency that can stimulate
> the intellectual, the moral, and spiritual life of the
> entire human race.109
> 
> A tranquil, peaceful economy will result in decreased risks
> and volatility, which increases opportunities for economic
> development and to make long-term plans. Conversely, a
> high level of military spending detracts from citizens’ quality
> of life by limiting spending on developmental and social
> programs and this is a major concern in developing countries.
> There is an inherent ‘opportunity cost’ for government
> spending on war and internal conflicts. Money that is
> expended in one area cannot be spent on another. To explain
> this further, I will use a well-known economic model called
> ‘production possibility frontier.’ 110 Economists use this
> technique to demonstrate the efficient use of resources that
> are considered to be scarce over a period of time. For
> example, at a time of war, if there is a need to increase the
> production of military items, we would have to sacrifice
> some of the production of civilian goods and services such as
> education, health and housing. This is because the additional
> 
> Shoghi Effendi. World Order, p. 204.
> John Beardshaw, Economics, 5th ed., 1992, p. 39.
> The Bahá’í Perspective on Globalization
> 
> production of military goods and services has an opportunity
> cost, in this case, the production of social goods. In other
> words, the opportunity cost of producing extra units of
> military goods is the sacrifice of civilian goods and services.
> Thus, there is a trade-off between war and peace. Assigning a
> higher priority to peace requires a lower priority to war. In
> other words, as Muhammad Yunus affirms putting more
> resources into improving the lives of the poor is a better
> strategy than spending it on guns.
> 
> The establishment of universal peace in a global society
> fosters both individual and collective well-being and security,
> and this is at the heart of the Bahá'í vision for a meaningful
> globalization. Addressing the leaders of the world, the
> founder of the Faith said, ‘Compose your differences, and
> reduce your armaments, that the burden of your expenditures
> may be lightened, and that your minds and hearts may be
> tranquilised.’ 111 During a period of peace, there is more
> chance that resources will be allocated more effectively in
> areas that are needed for the people’s quality of life. A
> conscientious government at peacetime spends most of its
> resources in pursuing plans that benefit their citizens.
> 
> The Bahá’í community has taken a number of steps by
> investing in areas, which leads to increasing the welfare of all
> citizens and thus contributing to the process of peace-making
> through investment in early childhood education in many
> communities as a part of socio-economic development
> activities. Projects now under way in Africa, Asia and South
> America demonstrate the potential for widespread
> implementation of development programs through the global
> network of Bahá'í communities. These projects are run and
> 
> Bahá’u’lláh. Gleanings, pp. 250-251.
> Economics and the Bahá’í Faith
> 
> coordinated at the grass root by the full participation of
> women and men in decision-making. These investments have
> impacted on peace and stability among people in areas that
> religion and racial conflict has separated members of
> communities for so long. If a small community such as that
> of Bahá’ís with much-limited resources can have such a
> significant impact on the life of people, certain governments
> and organisations with vast resources available to them can
> have a much greater impact in improving the lives of people
> and peace-making.
> 
> 6.7.11 Free and fair international trade
> Although globalization and free trade are beneficial to those
> who are equipped to compete in the international
> marketplace, they are less so for those not able to be a part of
> the global market. It is no exaggeration to say that the world
> market is now led by a handful of multinational corporations,
> which produce a substantial level of the world’s total output.
> The division in the human family between ‘the haves and the
> have-nots’ has assumed a new dimension. Thomas Picketty
> presents a body of empirical data covering several hundred
> years that supports his central idea in his book - Capital in
> the Twenty-First Century - that the owners of capital
> accumulate wealth more quickly than those who provide
> labour, a phenomenon widely described with the term ‘The
> rich get richer and the poor get poorer.’ Hence, previously it
> was mainly ‘poor get poorer, rich get richer’, and now it is
> ‘the increasing gap between the rich and the poor.’ The
> Bahá’í Writings refer to this condition as ‘some who were
> possessed of an affluent fortune and lived in the midst of
> excessive riches, while others were in dire want and abject
> poverty.’112 Currently, we are facing other barriers to a free
> 
> Bahá’u’lláh. Gleanings, p. 235.
> The Bahá’í Perspective on Globalization
> 
> and international trade, including: language barriers, skill
> shortages, geographical and occupational immobility, quality
> standards, custom duty and regulations, and the exchange of
> currencies.
> 
> The Bahá’í teachings on economics are consistent with the
> belief that ‘The earth is but one country, and mankind its
> citizens.’113 This statement supports international trade. The
> establishment of a free and fair trade among nations is an
> important pillar of globalization. A meaningful globalization,
> however, is closely associated with a sustainable international
> trade that is fair to both developing and developed countries
> and preserves the eco-system. Sustainable international trade
> has a significant role in establishing universal benefits,
> ‘Abdu’l-Bahá states:
> It is apparent that whenever the ties between nations
> become strengthened and the exchange of
> commodities accelerated, and any economic principles
> established in one country, it will ultimately affect the
> other countries and universal benefits will result.114
> 
> The success of a fair and sustained international trade would
> depend on how realistic such mutual exchange is. For
> examples, issues related to protectionism, currency
> fluctuations, quality of goods and services, and price levels
> may affect trade or become barriers for a free and fair trade.
> It can also be argued that the level of protectionism can be
> decreased with a regulated international market. Shoghi
> Effendi supports this view when referring to a free-market
> economy.115 Any arrangement for the economics of the future
> associated with a meaningful globalization must incorporate
> justice and fairness for all humanity.
> 
> Ibid. p. 250.
> ‘Abdu’l-Bahá. Selections, p. 301.
> Shoghi Effendi. World Order, p. 204.
> Economics and the Bahá’í Faith
> 
> Supporting the free-market economy, ‘Abdu’l-Bahá has, for
> example, encouraged the ‘promotion of the arts, the
> discovery of new wonders, the expansion of trade, and the
> development of industry.’ 116 He also approves of profit
> sharing, which is a form of profit making, as a feature of the
> market economy. Bahá’u’lláh has sanctioned the charging of
> interest on financial loans as a part of a normal business
> transaction, provided that this is done ‘with fairness and
> moderation’ 117 on the understanding that the matter will be
> adjusted and regulated by the head of the Bahá’í Faith, the
> Universal House of Justice. Also, the principle that pay
> differentials should reflect different levels of skill, ability and
> talent is strongly upheld, both as a reward and an incentive
> for high levels of performance and productivity. Shoghi
> Effendi states that the Bahá’í Faith in the future will maintain
> the ‘right balance between the two systems’118 of capitalism
> and socialism. He states:
> In the Bahá’í economic system of the future, private
> ownership will be retained, but will be controlled,
> regulated, and even restricted. Complete socialisation
> is not only impossible but most unjust, and in this the
> Cause is in fundamental disagreement with the
> extreme socialists or communists. It cannot also agree
> with the other extreme tendency represented by the
> Laissez-faire or individualistic school of economics.119
> 
> Therefore, the Bahá’í economic system of the future will
> consider a balance between the two schools of free-market
> economy and socialism. Shoghi Effendi confirms this, ‘The
> Cause can and indeed will in the future maintain the right balance
> between the two extreme tendencies of individualism and
> 
> ‘Abdu’l-Bahá. Quoted in Scholarship, p.1.
> Bahá’u’lláh. Tablets, p. 132.
> Ibid. p. 170.
> Shoghi Effendi. ‘Letter dated 25 August 1939.
> The Bahá’í Perspective on Globalization
> 
> collectivism, not only in the field of economics, but in all other
> social domains.’120
> 
> In relation to international trade in The Secret of Divine
> Civilisation, ‘Abdu’l-Bahá strongly urges Iranians to ‘look to
> the expansion of trade with the nations of the East and the
> West, develop…natural resources and increase the wealth
> of…people.’ 121 This is significant because traditionally,
> developed countries and multinational companies have often
> seen developing countries as a source of cheap natural
> resources that could be used by developed countries in the
> production of goods. The focus has now shifted and a number
> of developing countries are using advanced technology and
> know-how. The movement of manufacturing to the
> developing world has allowed them to improve their
> comparative advantage and attain a relative prosperity.
> ‘Abdu’l-Bahá also called upon the Iranians to learn ‘modern
> concepts…new systems and procedures…progressive
> enterprises.’ [from] ‘the people of Europe.’122 Moreover, He
> urged them to follow Japan because ‘Japan has opened its
> eyes and adopted the techniques of contemporary progress
> and civilisation.’123 Although these Writings are addressed to
> the citizens of Iran, the comments have universal implication.
> 
> However, in practice, there are a number of restrictions or
> barriers to a free and fair international trade, such as
> protectionist measures, which protect the national economy
> and include tariff and subsidy, and a more regulated import-
> export market. Shoghi Effendi has condemned restrictions on
> international free trade. During the Great Depression of the
> 
> From a Letter dated 25 August 1939 written on behalf of Shoghi Effendi.
> ‘Abdu’l-Bahá. The Secret, p. 15.
> Ibid. p. 13.
> Ibid. p. 111.
> Economics and the Bahá’í Faith
> 
> 1930s, the USA, in an effort to protect its economy, increased
> import duties to record levels. In 1931, in the midst of the
> Great Depression, Shoghi Effendi wrote,
> A narrow and brutal nationalism, which the post-war
> theory of self-determination has served to reinforce,
> has been chiefly responsible for the policy of high and
> prohibitive tariffs, so injurious to the healthy flow of
> international trade and to the mechanism of
> international finance.124
> 
> Therefore, it is argued that globalization is largely the result
> of the integration of many countries through free trade, into a
> single global economy. The extent to which a country can be
> integrated into the global economy depends on the level of
> restrictions on the movement of resources into and out of the
> country. Shoghi Effendi said, ‘economic barriers and
> restrictions will be completely abolished.’125
> 
> So far, we have established that from a purely economic
> perspective, a sustainable, fair and free international trade is
> essential. However, for Amartya Sen the problem of
> international trade with current globalization is in the sharing
> of its benefits. In the face of such appalling poverty and
> staggering inequalities, Sen raise a legitimate question: Can
> we say that there is a fair distribution of the benefits of
> globalization? Like Sen, Bahá’í scholars Shapour Rassekh,
> Arthur Dahl, and Farhad Rassekh are concerned about current
> processes of shaping globalization. The view is that the
> problem of globalization is due to negative processes adopted
> by the policy makers. On the positive side for Sen
> globalization has been a blessing, not a curse, to all countries
> which have embraced it. He refers to the recent East Asia and
> benefits gained through the remarkable reductions in poverty
> 
> Shoghi Effendi. World Order, p. 35, and p. 204.
> Ibid. p. 204.
> The Bahá’í Perspective on Globalization
> 
> that have been achieved by countries that have opened up to
> global markets and knowledge.
> 
> However, according to Sen, the distribution of the benefits of
> global relations not only depends on domestic policies but
> also on a variety of international social arrangements.
> According to Sen these arrangements include:
> Trade agreements, patent laws, global health
> initiatives, international educational provisions,
> facilities for technological dissemination, ecological
> and environmental restraint, treatment of accumulated
> debts, and the restraining of conflicts and local
> wars.126
> 
> Such an arrangement becomes possible when, according to
> Jeffrey Sache ‘the economic benefits of globalization are
> distributed fairly and justly among the citizens of the
> world. 127 Thus, morality plays an important role in
> establishing a meaningful globalization. Farhad Rassekh and
> John Speir specify that ‘Since economic globalization affects
> the economic lives of people, it has moral implications that
> often take centre stage in any discussion on globalization.’128
> Bahá’u’lláh, in the following passage, elucidates the
> importance of truthfulness and trustworthiness in trade, he
> states, ‘Commerce is as a heaven, whose sun is
> trustworthiness and whose moon is truthfulness. The most
> precious of all things in the estimation of Him Who is the
> Sovereign Truth is trustworthiness.’ 129 Therefore, Bahá’í
> Writings strongly encourage Bahá’ís to practise trade with
> the highest standard of conduct. As pointed out by Wilkinson
> and Pickett ‘we can think of trust as an important marker of
> the ways in which greater material equality can help to create
> 
> Amartya Sen. The Idea of Justice, p. 409.
> Jeffrey Sachs. The End of Poverty, p. 358.
> Farhad Rassekh and John Speir. Journal of Global Ethics, p. 27.
> Bahá’u’lláh. Trustworthiness, p. 9.
> Economics and the Bahá’í Faith
> 
> a cohesive co-operative community, to the benefit of all.’130
> The difficulty with the current free-market economy is not so
> much with the system itself but with the absence of moral
> incentives to establish trust. It is noteworthy that Adam
> Smith, in 1759 in The Theory of Moral Sentiment established
> his model of ‘free-market economy’ on the foundation of a
> human code of conduct that consists of benevolence. It seems
> that this aspect of Smith’s model is somewhat missing from
> the market today. The Bahá’í Writings advocate the
> regulation and ‘readjustment of the economic order’ 131 as a
> necessary condition for the betterment of the whole society.
> 
> 6.7.12 An international single currency
> In 1936, Shoghi Effendi wrote ‘...a uniform and universal
> system of currency...will simplify and facilitate intercourse
> and understanding among the nations and races of
> mankind.’132 A universal single currency would be much like
> an international language, which facilitates and improves
> communication around the world, and the international trade.
> Hence, the Bahá’í Writings support the notion of having an
> international single currency for improving a fairer trade
> among nations.
> 
> The global financial crisis in 2008 and also the Euro currency
> crisis may immediately raise a concern that the idea of
> introducing an international single currency may not be as
> promising as it appeared to be. By looking at the Euro zone’s
> economic condition since 2008, the opponents of a single
> currency may argue that the idea of single currency is not
> working. The United Kingdom government, for example,
> oppose the European single currency on the bas The Bahá’í
> 
> Richard Wilkinson and Kate Pickett. The Spirit Level, p. 62.
> ‘Abdu’l-Bahá, Promulgation of Universal Peace, p. 102.
> Shoghi Effendi. World Order, p. 204.
> The Bahá’í Perspective on Globalization
> 
> Writings advocate the regulation and ‘readjustment of the
> economic order’ as a necessary condition for the betterment
> of the whole society. is on the separation of monetary133 and
> fiscal134 policies. The argument in this section is that the dis-
> functioning of a single currency is not due to currency itself
> but to the management, administration, control and
> organizational skills of those who are operating it. The
> proposition is that having an international single currency is
> advantageous to a global economy. The current economic
> imbalances resulting from currency fluctuations are not
> advantageous to any country. Joseph Stiglitz addressed the
> issue of global financial imbalances that it ‘simply cannot go
> on forever.’135 He, then, argues that ‘Underlying the current
> imbalances are fundamental structural problems with the
> global reserve system, [here Stiglitz refers to ideas of John
> Maynard Keynes of how to reform the global monetary
> system] including creating a new reserve system based on a
> new international currency, can, with a little work, be adapted
> to today’s economy. 136 The problem of the global financial
> system, therefore, is systematic and has much to do with the
> global reserve system, which improves global stability in the
> financial market. Supporting Keynes view about a new
> international currency, Stiglitz argues that ‘It would enhance
> global stability and global equity.’137
> 
> One lesson learned from the current global financial crisis is
> that due to increased capital mobility and economic
> interdependency, the occurrence of one financial crisis in one
> part of the world can have devastating effect on other parts of
> 
> Monetary instruments are: interest rate, exchange rate and money supply.
> Fiscal policy is government policies on spending and taxation.
> Joseph Stiglitz. Cited in Morrison Bonpasse, The Single Global Currency,
> Newcastle: Maine, 2006, p. 433.
> Ibid.
> Ibid. p. 268.
> Economics and the Bahá’í Faith
> 
> the world. Following the crisis, we see more coordinated
> action between Central Banks, and this will increase in the
> coming years, the reason of the structure of our economies.
> According to international financial economists Charles
> Wyplosz and Richard Maldwin in an Optimal Currency Area,
> where a group of countries are better off with a common
> currency than keeping separate national currencies; and also,
> where there is labour and capital mobility, the single currency
> takes away the risk of exchange fluctuation and associated
> costs. Wyplosz and Maldwin writes:
> For the business community and private sector, it is
> very advantageous to take the risk our exchange out of
> their business cycle equation. It also makes perfectly
> sense where economies are converging and there is
> increased trading exchange. I would suggest exploring
> some history of currency and its development, that in
> the past each town and region used to have their own
> currency, it was always much more complicated to do
> trades. Currency is not the driver of the exchange but
> the vehicle to make exchange easier and more
> transparent.138
> 
> Wyplosz and Maldwin’s idea is appropriate for a global
> economy where there is a need for transparency simpler
> transaction. There is also unpredictability and volatility of
> exchange rates. Favouring an international single currency,
> Morrison Bonpasse argues that using a single currency can
> eliminated such volatility:
> Economists continue to try to understand why, when,
> and by how much exchange rates rise and fall and a
> substantial portion of the published articles about the
> international monetary system is about those exchange
> rate fluctuations. However, there will never be totally
> satisfactory answer, which is just one reason why the
> system needs to be replaced with a Single Global
> 
> Charles Wyplosz and Richard Maldwin. The economics of European
> Integration, London: McGraw – Hill Education, 2004, p. 16.
> The Bahá’í Perspective on Globalization
> 
> Currency.139
> 
> Agreeing with Bonpasse, Joseph Stiglitz argued that
> ‘Economists might like to believe that economic forces
> underlie all prices, but the prices of national currencies, at
> least are determined as much by politics as by economics.’140
> 
> The global financial crisis of 2008 was universal and affected
> both developed and developing countries. Looking at the
> crisis and relating it to the currency situation, Joseph Stiglitz
> wrote, ‘There is a remarkably simple solution, one which was
> recognized long ago by Keynes: the international community
> can provide a new form of fiat money to act as reserves,
> (Keynes called his new money ‘bancor’).’ 141 Stiglitz called
> them ‘global greenbacks’, which are similar to the Special
> Drawing Rights (SDR) 142 of International Monetary Fund
> (IMF). He wrote that the concept of global greenbacks,
> ‘simply extends the concept’ of SDRs, and that global
> greenbacks would be issued annually, unlike SDRs which are
> issued episodically.’143
> 
> Today, there are 143 different currencies in circulation
> serving 191-member countries of the United Nations.144 It is
> estimated that transaction costs related to currency exchanges
> are in the region of billions of dollars annually.145 Of course,
> such a transaction method would be beneficial to certain
> groups such as banks and other financial institutions, and no
> doubt create employment opportunities. Countries are
> 
> Morrison Bonpasse. The Single Global Currency, p. 418.
> Joseph Stiglitz. Making Globalization work, p. 259.
> Ibid. p. 260.
> The SDR is an international reserve asset, created by the IMF in 1969 to
> supplement its member countries’ official reserves.
> Joseph Stiglitz. Making Globalization work, p. 261.
> Morrison Bonpasse. The Single Global Currency, p. 483.
> Ibid. p. 33.
> Economics and the Bahá’í Faith
> 
> constantly competing with each other in order to promote
> their respective currencies on the global market, and
> currencies that become stronger are more valuable, and
> consequently in higher demand. Governments at different
> times intervene in the money markets, and resort to managed
> exchange rate systems, in order to manipulate the exchange
> rate so as to gain an advantage over their competitors.
> Multinational corporations, invest only in countries whose
> currencies are favourable to their operations, otherwise
> relocate their businesses elsewhere.
> 
> The creation of a universal single currency cannot take place
> overnight. Many factors need to be taken into consideration
> before one is chosen or created. The success of regional
> currencies such as the ‘East Caribbean Dollar – XCD’146 and
> ‘West African Franc – CFA’ 147 are notable, which have
> harmonised the economies of a number of nations. These
> represent a positive movement and a promising factor
> towards the formation of a universal single currency. These
> regional currencies have provided opportunity to further
> understand the nature of an international single currency, as a
> result, economists are now far better informed of what an
> international currency may involve.
> 
> A universal single currency operating under a central bank
> has certain economic implications and advantages over the
> current system of 143 separate currencies in circulation in the
> world. Among the factors that facilitate economic
> transactions on a global stage is the benefit of rendering a
> 
> Eight East Caribbean countries using XCD are: Antigua and Barbuda, St.
> Lucia, Dominica, Grenada, St. Kitts and Nevis, Saint Vincent and the Grenadines,
> Anguilla, and Montserrat.
> Eight West African countries using CFA currency: Benin, Colt d’Ivoire,
> Gabon, Guinea-Bissan, Mali, Niger, Senegal and Togo.
> The Bahá’í Perspective on Globalization
> 
> central bank independency, transparency and accountability.
> Commenting on this Artis and Nixson argue that ‘It is
> generally reckoned to be in the interests of effective
> stabilisation and low inflation to ensure that the central bank
> is independent from day-to-day political pressures.’ 148 It is
> also important that the institutions concerned to be
> accountable and transparent in what it does and how it does
> it. Artis and Nixon further argue that by being accountable
> and transparent ‘the central bank can enlist the support of the
> market rather than working against the grain.’149 Transparent
> helps firms and households to compare the prices of goods,
> services and resources accurately in the global marketplace.
> This is needed because of the distorting effect and the
> variability of the exchange rates, which may discourage
> trade. From an economic point of view, it is accepted that
> prices should act as a signalling function for the optimal
> allocation of resources, so as to improve economic
> efficiency.150 The chances of this happening across the globe
> would be far greater if there existed a universal single
> currency.
> 
> Another benefit of a universal single currency is associated
> with risks that each currency poses to the other. This could be
> avoided using a single currency. In a multi-dimensional
> currency market, countries are continuously striving to
> influence their currency in order to gain a competitive edge,
> and as the value of one currency is determined against
> another, all currencies are at risk. This can be one of the
> reasons for global economic imbalances. Moreover,
> multinational companies that have invested heavily in
> 
> Mike Artis, and Frederick Nixson. The Economics of the European Union:
> Policy and Analysis, 4th ed., Oxford: Oxford University Press, 2007, p. 266.
> Ibid. p. 267.
> Beardshaw. Economics, p. 47.
> Economics and the Bahá’í Faith
> 
> different countries are at risk of losing money as a result of
> currency fluctuations. In order to avoid such losses, they may
> relocate their whole business operation to a country with
> more favourable conditions. Transfers of this kind create
> serious economic problems for the former host country,
> including increased unemployment, decreased revenue, and,
> more importantly, a decline in the welfare of the people.
> Adoption of a universal single currency would help alleviate
> this considerable risk and uncertainty from the economic
> equation.
> 
> A universal single currency can be a regulating factor for
> consumerism. Several factors lead consumers to spend more,
> one such factor being the exchange rate. With a highly valued
> or strong currency 151 , people are able to purchase foreign
> products cheaper. It is for this reason that the rich and
> developed countries with stronger currencies are able to
> import products more cheaply. The opposite is also true:
> countries with weak currencies are unable to import goods
> produced by developed economies. A universal single
> currency could play an important role in improving this
> situation. A single currency, which has the same value in all
> markets globally, would give people of different countries the
> same purchasing power to trade with each other. Although,
> single currency is an important factor for a fair trade,
> however, it is not sufficient for improving the standards of
> living. Other factors are essential such as the availability of
> resources, employment opportunity, the level of education
> and training, consumer and producer confidence, and the
> price level.
> 
> The seven most popular currencies in the world are: US dollar, Euro, British
> Pound Sterling, Japanese Yen, Swiss Franc, Canadian dollar, and Australian
> dollar.
> The Bahá’í Perspective on Globalization
> 
> Despite the advantages of a single currency, there are
> challenges related to how it is designed, managed and
> regulated. Hence, it can be challenged in a number of ways.
> Assuming that a universal single currency is operated by a
> world central bank, if a single rate of interest is decided based
> on the so-called ‘one-size-fits-all’ policy, the interest rate
> decided would be applied to all countries equally. There is a
> risk then, that an interest rate, which may be appropriate for
> one country, may not be appropriate for another. For
> example, countries with high inflation may require a higher
> level of interest rate, while countries with low level of
> economic growth or high unemployment may need a lower
> level of interest rate. In an ideal world with a meaningful
> globalization and a sustainable development, where countries
> operate in a similar economic cycle, having the same interest
> rate would not be a problem. Individual governments also can
> coordinate their activities with their own fiscal instruments to
> avoid any conflict with the policies of World Bank and a
> single interest rate.
> 
> Another difficulty with a single currency according to John
> Sloman is in adjusting to an international shock, which
> affects countries differently. He mentions for example a
> sudden change in the price of oil would affect an oil
> exporting country differently from oil importing one. Sloman
> argues that ‘the divergences between economies are often the
> result of a lack of harmony between countries in their
> demand-management policies.’ 152 The Bahá’í scriptures
> advocate a change in lifestyle and the adoption of a demand
> management attitude, such as implementing the moral
> principle of moderation. Also, according to Sloman ‘many of
> the shocks that face economies today are global and have
> 
> John Sloman. Economics, p. 713.
> Economics and the Bahá’í Faith
> 
> similar effects on all countries. Adjustment to such shocks
> would often be better with a single coordinated policy.’153
> 
> At the regional level, gains from the adoption of Euro
> currency came at the cost of abandoning monetary policy as a
> stabilisation tool. Two experts in European economy, Mike
> Artis and Fredrick Nixson, confirm this. According to them,
> ‘The monetary union entails the loss of one important tool of
> national macroeconomic stabilisation policy which would
> need to be compensated by greater reliance on a second such
> tool, namely national fiscal policies.’ 154 According to Artis
> and Nixson, the assessment of benefits and costs comes down
> to a few distinct considerations:
> Benefits come from gains for trade and growth and
> the elimination of exchange rate risk; cost stem from
> the possibility that monetary policy that is right for the
> monetary union is wrong for the individual country.
> This cost could take the concrete form of greater
> volatility of inflation and growth in the absence of a
> monetary policy instrument to help absorb
> idiosyncratic shocks (shocks to an individual country
> that do not affect the currency union as a whole).155
> 
> On balance, the success of a single currency, whether at
> regional level or at international level depends on whether it
> can promote economic justice in the world. It also depends as
> to whether in an Optimal Currency Area, it removes the
> advantages enjoyed by a few favoured countries, whose
> currency is seen as strong as or more secure than that of
> others and stops the poor from being affected severely by the
> impact of currency fluctuations. In the long run, the adoption
> of a universal single currency depends on whether it offsets
> the harm that economic globalization may cause at the local
> 
> Ibid. p. 714.
> Artis and Nixson. The Economics of the European Union, p. 283.
> Ibid. p. 394.
> The Bahá’í Perspective on Globalization
> 
> level, by putting everyone everywhere, on a more level
> economic playing field. Hence, this particular teaching may
> become controversial if it is not devised and implemented
> properly, and if it does not stimulate economic justice. To
> avoid confusion, as mentioned previously, the Bahá’í Faith
> should be studied as a whole rather than looking at each
> principle individually.
> 
> 6.8     Opportunities and challenges of globalization
> There are two paradoxical conditions that are shaping the
> current process of globalization. On the one hand, and
> positively, the economic performance and the wealth of
> nations have increased significantly. On the other hand, the
> gap between the poor and the rich has widened, and there is
> increasing domination and bargaining power by some nations
> and firms over others. Hence, the current globalization has
> produced both opportunities and challenges.
> 
> Currently most developing countries enjoy greater trade in
> goods and services, including: transfer of financial capital;
> transfer of technology and information, specialization in
> production, and greater labour migration; resulting in the
> inclusion of more economies in the global trading system
> including Central and Eastern European economies, China
> and the other so-called ‘emerging economies.’ 156 We are
> witnessing encouraging signs of acceleration in the process of
> globalization, in particular, with the interest shown to global
> economic integration caused by economic liberalisation. The
> process of globalization is facilitated through removing trade
> barriers, democratisation in many parts of the world and the
> 
> Emerging economies are the newly industrialised countries such as Brazil,
> Russia, Indonesia, and China (BRIC). Also, it refers to economies in transition
> from planned economy to the free-market economy such as the Eastern European
> Countries.
> Economics and the Bahá’í Faith
> 
> activities of the international agencies. The progress of
> information technology has enabled the easy and relatively
> cheap transfer of information between different agents of the
> market at a global level. For example, the Internet has led to
> increasing knowledge and information for both consumers to
> demand their choice of product and the manufacturers to
> produce what consumers demand. Advanced technology and
> transportation enable mass production and distribution to
> different parts of the world. Moreover, trade is gradually
> becoming more liberated as restrictions have been reduced
> due to the activities of the World Trade Organization.
> 
> The Bahá’í Writings also affirm that important components
> of a meaningful globalization are the political, environmental,
> social, and moral. Today, we are all speedily and increasingly
> live in one world, and all nations are becoming ever more
> interdependent. This is an understanding that most would
> agree on. This view means that we are now living in a smaller
> and better-connected world. ‘Abdu’l-Bahá has identified a
> number of necessary elements for globalization, some of
> which became available during his own lifetime, including
> travelling, availability of information through different
> publications, effective communication and exchange of
> views. However, the issue of the interdependency of nations,
> in its current form, is not without challenges. Two of the most
> significant are that the current process of globalization has
> created a condition of dependency, and the increasing
> domination and bargaining power by some nations over
> others. Thus, the challenge is creating and maintaining
> interdependency in such a way that its foundation is based on
> trust among nations.
> 
> Globalization has increased trade among nations and assisted
> developing countries in becoming more integrated into the
> The Bahá’í Perspective on Globalization
> 
> global economy. This has enabled domestic firms to establish
> contracts with the international capital markets, thereby
> producing more and benefiting from economies of scale.157
> Increasing the level of output for a world market creates more
> employment in developing countries. ‘Abdu’l-Bahá explains
> that trade multiplies output. 158 Hence, principles such as
> investment in education, providing opportunity for women,
> and removing trade barriers would help to increase the level
> of output in the market globally. Many developing countries
> have already benefited by applying these principles and have
> come out of poverty by earning additional revenue, which is
> needed for improving public services such as education,
> health and other welfare programs. The multidimensional
> approach to poverty measurement has been discussed by a
> number of recent writers. Their Writings implicitly accept the
> proposition that, because of lack of information and other
> market failures, important dimensions of well-being cannot
> be purchased in markets with money, and thus require
> independent measurement.
> 
> A positive occurrence that helps reform the current process of
> globalization is the promotion of education among the female
> population in some parts of the world. Education, leading to
> the emancipation and empowerment of women motivates
> them to participate at all levels of society as politicians,
> educators, managers and entrepreneurs. Women in South
> East Asian countries are now heavily engaged in
> advancement of their communities in controlling the growth
> of the population, while increasing the total output of the
> 
> Economies of scale is a situation where reduction in the cost of production
> leads to increasing the level of output. Benefits includes: managerial,
> technological, financial, and marketing economies. Economies of scale is a
> characteristic of large firms.
> For expansion of trade and issues related to free and fair international trade
> see: ‘Abdu’l-Bahá, The Secret, pp. 5-36.
> Economics and the Bahá’í Faith
> 
> economy. These activities not only connect their
> communities to the rest of the world, but also have improved
> the quality of their own lives, enabling them to better practice
> their role as mothers. Women, thus, play an important role in
> dealing with challenges such as population explosion, output
> shortages, and improving standards of living, which are
> important components of a meaningful globalization.
> 
> Further improvement is noted in the enrichment of
> agriculture. Farmers have been encouraged to embrace new
> technology. International agencies have helped to teach them
> new techniques in farming and, as a result, there has been a
> significant increase in their productive capacity. Adequate
> technology is now available for farmers with small areas of
> land.
> 
> Another area of development is the improvement of the
> banking system through adjustment and regulation, and the
> provision of funds for start-up businesses. This is particularly
> crucial for the developing countries. The Grameen bank in
> Bangladesh has made small credit (micro finance) available
> to more than seven million women to start up their own
> businesses.159 The social function of wealth has been realised
> by the modern banking corporation, although much more
> needs to be done for the effective implementation of the
> social function of wealth.
> 
> Through access to information necessary for international
> trade, the developing countries would be able to access
> different markets around the world and trade their
> commodities globally and more favourably. This suggests
> that in practice there is no need for the middleman; and
> 
> See: Muhammad Yunus. Creating a World Without Poverty,
> The Bahá’í Perspective on Globalization
> 
> producers in the developing countries are able to sell their
> products directly to the final consumers. In particular,
> developing countries can have easier access to advanced
> technology, which can be obtained from the developed
> countries for manufacturing products that are healthier and
> more suitable for the local requirements. The vast
> improvement in people’s knowledge and information, and the
> significant role of pressure groups, animal lovers, and green
> campaigners can help increase production of eco-friendly
> commodities and more sustainable patterns of consumption.
> Consequently, as Stiglitz pointed out, ‘Problem is not with
> globalization but with how it has been managed.’160 For Sen
> the Universal Declaration of Human Rights in 1948 is a
> positive step towards achieving the conditions of a
> meaningful globalization. For him, globalization is a
> blessing, not a curse. He refers to East Asia and the recent
> remarkable reduction in poverty achieved by countries that
> opened up to global markets and knowledge. For Shapour
> Rassekh the benefits of globalization surpass its cost. He
> raised a question that how can we stop the negative attitudes
> towards an effective and ideal globalization. He argues that in
> last two decades the focus has been mainly on disadvantages
> of globalization. He further comments that a meaningful
> globalization must focus on humanizing it. Hence, for Sen,
> Stiglitz, Sache, Rassekh and many more there is nothing
> wrong with the creation and development of globalization,
> the problem is the negative processes adopted to achieve it.
> One such negative outcome is the creation of inequality in the
> society. Quoting the World Commission on Social
> Dimensions of Globalization, Joseph Stiglitz found that 59%
> of the world’s people were living in countries with growing
> inequality, with only 5% in countries with declining
> 
> Joseph Stiglitz. Globalism’s Discontents, pp.200-207.
> Economics and the Bahá’í Faith
> 
> inequality. Even in most of the developed countries, the rich
> were getting richer while the poor were often not even
> holding their own. In short, globalization may have helped
> some countries – GDP may have increased – but it has not
> helped most of the people in these countries.
> 
> We are still facing many more serious challenges in
> establishing a meaningful globalization. These include
> elimination of extremes of wealth and poverty, the issue of
> consumerism, the effective use of human capital, population
> explosion, the preservation and protection of the ecosystem,
> the prevention of child labour, and pursuing a fair
> international trade. Experts and policy makers are faced with
> multiple complex challenges for creating a meaningful
> globalization. World Commission on the Social Dimension of
> Globalization has condemned the current process of
> globalization in a sense that the current process of
> globalization is generating unbalanced outcomes, both
> between and within countries:
> Wealth is being created, but too many countries and
> people are not sharing in its benefits. They also have
> little or no voice in shaping the process. Seen through
> the eyes of the vast majority of women and men,
> globalization has not met their simple and legitimate
> aspirations for decent jobs and a better future for their
> children. Many of them live in the limbo of the
> informal economy without formal rights and in a
> swathe of poor countries that subsist precariously on
> the margins of the global economy. Even in
> economically successful countries some workers and
> communities have been adversely affected by
> globalization. Meanwhile the revolution in global
> communications heightens awareness of these
> disparities...these global imbalances are morally
> 
> The Bahá’í Perspective on Globalization
> 
> unacceptable and politically unsustainable.161
> 
> There is also the danger of moral crisis associated with the
> current form of globalization such as exclusion, population
> replacement, and environmental damage. Hence, in the face
> of such appalling challenges and staggering inequalities, can
> we say that there is a fair distribution of the benefits of
> globalization? We are still in the early stages of globalization
> and according to Sen ‘The rapidly expanding interest of the
> subject has also had an impact on demands of policy
> reforms’162 by individual countries.
> 
> It was argued that one benefit of globalization is creating
> more employment in developing countries. But, this does not
> mean that those employed are satisfied with what they are
> doing. The following story written by Jeffrey Sachs and it is
> about his visit to Bangladesh confirming this claim:
> On one visit to Bangladesh, I picked up an English-
> language morning newspaper, where I found an
> extensive insert of interviews with young women
> working in the garment sector. These stories were
> poignant, fascinating, and eye-opening. One by one,
> they recounted the arduous hours, the lack of labour
> rights, and the harassment. What was most striking
> and unexpected about the stories was the repeated
> affirmation that this work was the greatest opportunity
> that these women could ever have imagined, and that
> their employment had changed their lives for the
> better.163
> 
> The self-explanatory character of this story indicates that
> although the existence of multinational corporations in
> 
> World Commission on the Social Dimension of Globalization. A Fair
> Globalization: Creating Opportunities For All, Geneva: International Labour
> Office, 2004, p. x.
> Amartya Sen. The Idea of Justice, p. 381.
> Jeffrey Sachs. The End of Poverty, p. 12.
> Economics and the Bahá’í Faith
> 
> Bangladesh have changed the material life of these women
> and perhaps millions more, but in an exploitive and inhuman
> way.
> 
> At this early phase of the process of expanding globalization,
> both developed and developing countries are affected, and to
> some extent benefited. Developed countries have often seen
> developing countries as a source of low-cost raw materials
> that could be used in manufacturing products. Another
> advantage to the developed countries is that the reduction in
> the price of manufactured goods has increased the real
> income of consumers allowing them to have higher standards
> of living. This, however, has led to consumerism. On the
> other hand, while the transfer of manufacturing to the
> developing world has allowed the developed countries to
> enjoy cleaner environments, it has simply moved the negative
> effects of manufacturing, such as pollution, to developing
> countries.
> 
> Hypothetically, globalization is expected to bring
> unprecedented benefits to all countries, however as Stiglitz
> argues:
> [Globalization] has come to be vilified both in the
> developed and the developing world. America and
> Europe see the threat of outsourcing; the developing
> countries see the advanced industrial countries tilting
> the global economic regime against them. Those in
> both see corporate interests being advanced at the
> expense of other values.164
> 
> Henceforth, purely national interests often shape debates on
> globalization, especially in policy-making circles, whether
> social, economic, or political. Therefore, discussions of the
> subject should be properly broadened to consider all aspects
> 
> Joseph Stiglitz. Making Globalization Work, p. 269.
> The Bahá’í Perspective on Globalization
> 
> of global life in a changing world. The process of changing
> the world is both a reform and a transition. It is useful to
> define the terms ‘transition’ and ‘reform’. Transition implies
> the shift from one system to another, for example, currently
> there is a transition from the ‘command economy’ to ‘free-
> market economy’, taking place by the Eastern European
> Countries. While, reform implies changes in the existing
> system, perhaps a more fundamental one, the Bahá’í Writings
> suggest that the remedy to current socio-politico-economic
> crisis consists of the removal of the old order and reforming
> to a new World Order. Bahá’u’lláh states ‘Soon will the
> present day order be rolled up, and a new one be spread out
> in its stead.’ 165 The changes shaping human affairs now
> indicate that transition into a global society is inevitable.
> These changes include international activities and
> cooperation among nations, such as holding international
> conferences on environment, migration, poverty reduction,
> and human trafficking. However, a major challenge in this
> transition for reform is creating conditions for socio-politico-
> economic fairness among and within the nations of our global
> community so that humanity as a whole can benefit.
> 
> The question therefore arises as to whether humanity is
> capable of facing the challenges of globalization. From the
> above discussion, it is evident that the process of
> globalization has already begun; however, a central view
> discussed and presented in this work is that social structures
> are constantly changing and no single economic theory would
> be always suitable for the whole world. It is argued that
> humanity has reached a level of understanding and accepting
> responsibility and is capable of facing the challenges, but a
> multi-dimensional solution is required.
> 
> Bahá’u’lláh. Tablets, p. 163.
> Economics and the Bahá’í Faith
> 
> There is also a debate between Bahá’í and non-Bahá’í
> scholars whether the Bahá’í Faith qualifies as a global
> religion. There is an agreement among Bahá’í scholars that
> the Bahá’í Faith is a world religion, a global religion166. Zaid
> Lundberg in his paper, ‘Global Claims, Global Aims: An
> Analysis of Shoghi Effendi’s the World order of
> Bahá’u’lláh’, conveys Shoghi Effendi’s perspective on
> globalization and that he defined the Bahá’í Faith as a ‘world
> religion.’167 According to Peter Beyer:
> There are now Bahá’í communities all over the world
> in regions and localities as culturally different as they
> could possibly be…the Bahá’í Faith is a global
> phenomenon in the process of constructing a global
> identity with the aid of universal teachings that apply
> to the human condition.168
> 
> The Bahá’í Faith as a global religion can also be studied and
> examined by working with religious texts and global
> principles. There are a number of principles that facilitate the
> process of achieving a meaningful globalization. James
> Beckford has noted that in some senses the Faith of
> Bahá’u’lláh ‘foreshadowed globalization, with its emphasis
> on the interdependence of all peoples and the need for
> international institutions of peace, justice and good
> governance.’169
> 
> For an in-depth study of the Bahá’í Faith as a ‘global religion’, see: Seena
> Fazel, ‘Is the Bahá’í Faith a World Religion?’ Ottawa: Journal of Bahá’í Studies,
> number 6,1994. Also. See: Moojan Momen. Is the Bahá’í Faith a World
> Religion?, in Soundings: Essays in Bahá'í Theology, ed. Sen McGlinn (1989).
> Zaid Lundberg. ‘Global Claim, Global Aims: An Analysis of Shoghi Effendi’s
> World Order’, p. 121.
> Peter Beyer. The Religious System of Global Society. A sociological Look at
> Contemporary Religions. 1994, Numen 45, vol. 1: 1-29. Also, quoted in Todd
> Lawson, Bahá’í globalization, p. 37.
> James Beckford, J. ‘Religious movements and Globalization’, in Robin Cohen
> and Shirin M. Rai (eds.), Global Social Movements, London: The Athlone Press,
> 2000, pp. 165-219, at p. 175.
> The Bahá’í Perspective on Globalization
> 
> 6.9     The Bahá’í World Commonwealth
> The phrase ‘Bahá’í World Commonwealth’ is plausibly the
> closest expression to the concept of ‘globalization’ stated in
> the Bahá’í Writings.170 The Bahá’í World Commonwealth can
> be described as representing the final stage in the
> development of the Bahá’í administrative order and standing
> on the threshold of the promised Golden Age. Shoghi Effendi
> has described the relationship between the Bahá’í World
> Commonwealth and Bahá’í administration in the following
> words: ‘It stands in its final form as a worthy and Faithful
> exposition of the constitutional basis of Bahá’í communities
> in every land, foreshadowing the final emergence of the
> world Bahá’í Commonwealth of the future.’ 171 Thus, the
> Bahá’í Writings envisage that humanity, and as a subset
> within it the Bahá’í community itself, must undergo a process
> of development. This comprises both short and long-term
> developmental plans and activities to understand and fully
> implement Bahá’í teachings. Short-term plans of action are
> given to the worldwide Bahá’í community, by the head of the
> Bahá’í Faith, the Universal House of Justice, the latter ones
> being called the ‘Five Year Plans’. These short-term plans
> provide guidelines for the progress of the Bahá’í community
> and its future development.
> 
> The significance of Bahá’u’lláh’s prescriptions for humanity,
> it is anticipated, will be realised only gradually over an
> 
> The term ‘Bahá’í World Commonwealth’ has been mentioned in The World
> Order of Bahá’u’lláh (p. 40, 98, 146,152, 168, 193, 203, 204); in God Passes By
> (p. 26, 316); in Advent of Divine Justice of Divine (p. 12); Bahá’í Administration
> (p. 135); Promised Day is Come (p. 122); Bahá’í World (vol. XI, p. 138, p. 26);
> and Messages to America (p. 81) where Shoghi Effendi talks about welding the
> society into ‘... a single, organically-united, unshatterable world commonwealth
> ...’. Also, the term is used repeatedly in a letter from the Universal House of
> Justice dated 27 April 1995.
> Shoghi Effendi. Bahá’í Administration, p. 134.
> Economics and the Bahá’í Faith
> 
> extensive period. Society as a whole is called upon to share in
> establishing the Bahá’í World Commonwealth, for example,
> by working towards the unity of all nations; bringing about
> the ‘Lesser Peace172, and striving generally to acquire moral
> and ethical values. However, it is only during the ‘Golden
> Age’173 of the Bahá’í Faith that the world peace in its truest
> sense as the ‘Most Great Peace’174 will be established.
> 
> An important issue to be borne in mind is that the new World
> Order of Bahá’u’lláh is in an embryonic stage and it is as yet
> too early to envisage the structure, implications, benefits, and
> the character of the Bahá’í World Commonwealth.
> Nevertheless, since the Bahá’í administration is a part of it,
> we can argue that the process of establishing Bahá’í World
> Commonwealth has already begun. The components of
> Bahá’í World Commonwealth referred to in the Bahá’í
> Writings are summarised by the Bahá’í International
> Community as follows:
> Recognised and secure borders for all nations;
> freedom of movement and thought for all people; a
> general disarmament; the establishment of a world
> 
> The lesser peace will come about through a binding treaty among the nations
> for the political unification of the world. It will involve the boundaries of every
> nation being clearly fixed, the size of their armaments strictly limited, the
> principles underlying the relationship of governments toward one another
> definitely laid down, and all international agreements and obligations ascertained.
> See: Peace more than an end to war, Compiled by Terrill, Hayes; Richard, Hill;
> Anne, Scheffer; Anne, Atkinson and Betty, Fisher, Wilmette IL: Bahá’í
> Publishing Trust, 1986, p. 276.
> ‘The Golden Age of the [Bahá’í] Faith itself that must witness the unification
> of all the peoples and nations of the world, the establishment of the Most Great
> Peace, the inauguration of the Kingdom of the Father upon earth, the coming of
> age of the entire human race and the birth of a world civilisation, inspired and
> directed by the creative energies released by Bahá’u’lláh’s World Order, shining
> in its meridian splendour, is still unborn and its glories unsuspected.’ See: Shoghi
> Effendi, God Passes By, p. 411.
> The Most Great peace will be the practical consequence of the spiritualisation
> of the world and the fusion of all its races, creeds, classes, and nations. Such a
> peace will rest on the foundation of, and be preserved by, the ordinances of God.
> See: Bahá’u’lláh and the New Era, p. 276.
> The Bahá’í Perspective on Globalization
> 
> federation of nations; the establishment of a world
> tribunal for the adjudication of international disputes;
> the creation of an international military force capable
> of enforcing peace through principles of collective
> security; and a commitment to the protection of
> cultural diversity.175
> These propositions for the Bahá’í World Commonwealth are
> good illustrations of essentials of a meaningful globalization
> anticipated in the Bahá’í Writings.
> 
> The issue of poverty discussed in several sections of this
> work. For this part, I will consider briefly how Shoghi
> Effendi’s propositions affect reducing poverty. Referring to
> the Bahá’í World Commonwealth, he offers a number of
> propositions, which are essential in dealing with economic
> imbalances. He states:
> The resources of the world will be organized, its
> sources of raw materials will be tapped and fully
> utilised, its markets will be coordinated and
> developed, and the distribution of its products will be
> equitably regulated...economic         barriers and
> restrictions will be completely abolished. 176
> 
> Let us consider some of the main causes of poverty. One of
> the causes of poverty in the world today is the shortage, or
> absence, of necessary resources available to the poor. When
> the world’s resources are organized and used effectively, and
> a greater share is allocated to poor countries, opportunities
> will be created for them to improve their living standard.
> Lack of coordination of the world’s markets is another cause
> of poverty. Usually, poverty exists in areas where wealth is
> concentrated in the hands of the few. In this category, must
> be included the Multinational Corporations, which originate,
> and thus control a considerable proportion of the world’s
> 
> Bahá’í International Community. The Bahá’ís, 2005, p. 82.
> Shoghi Effendi. World Order, p. 204.
> Economics and the Bahá’í Faith
> 
> production of goods and services. When markets are
> coordinated, and the need for balanced economic growth is
> recognised, the poor will be better able to promote their own
> economic development. Another cause of poverty is that the
> less developed countries have few market opportunities to
> sell their products. As economic barriers are removed, market
> conditions are developed, and a fairer and freer form of
> international trade is practised, poor nations will be able to
> market their products globally under much more favourable
> conditions. This situation will certainly improve a lot of those
> currently deprived of the full benefits of international trade.
> And finally, one of the major underlying causes of poverty is
> the lack of proper distribution of the world’s resources among
> all nations in an equitable manner. The above statement of
> Shoghi Effendi suggests under the Bahá’í World
> Commonwealth the distribution of products will be equitably
> regulated. Therefore, the principle of just distribution of the
> world’s resources will be crucial in order to reduce and even
> eradicate poverty.
> 
> 6.10 Chapter conclusion
> Globalization is defined as the process by which more people
> across nations become interconnected in different ways.
> Globalization from an economic perspective is expressed as a
> borderless market. The view expressed that creating a global
> society is possible at this time because the means of
> interconnectedness of people and nations have been created.
> These include advanced communication, information
> technology, trade liberalisation, and global financial
> interdependency. Some popular statements from the Bahá’í
> Writings such ‘the well-being of mankind,’177 and ‘betterment
> 
> Bahá’u’lláh. Gleanings, p. 286.
> The Bahá’í Perspective on Globalization
> 
> of the world,’178 and ‘We must all be in the greatest happiness
> and comfort’ 179 confirm the Bahá’í vision of globalization.
> Addressing Bahá’ís the founder of this Faith instructs them to
> ‘Let your vision be world-embracing.’180 To establish such a
> vision, Bahá’ís not only work to build a community as a
> model for a meaningful globalization, but also for the
> common good. For example, there are specific guidelines and
> instructions for individual Bahá’ís and the Bahá’í
> community, such as standards for marriage, elimination of all
> kinds of social and economic prejudices, and consultative
> methods of decision-making. There are also principles
> promoting the betterment of the world, such as universal
> peace, gender equality, and the unity of humankind. This
> way, Bahá’ís are committed themselves to be a part of the
> process of forming a meaningful globalization.
> 
> However, the current process of globalization does not march
> forward along a smooth path. It is maintained that there is
> nothing wrong with the idea or the concept of globalization;
> the challenges are in the negative processes adopted. For
> example, the development of the current modelling of
> globalization has created winners and losers, problems
> associated with the eco-system, and unbalance growth and
> expansion of organizations. The most worrying consequence
> is the widening gap between the rich and the poor. Therefore,
> this form of globalization is not in agreement with the Bahá’í
> perspective of creating a sensible global society. Both Bahá’í
> and non-Bahá’í writers and scholars have suggested that the
> benefits of globalization should be distributed fairly and
> justly among citizens of the world. It was also suggested that
> the current form of globalization needs to be reformed, and
> 
> Ibid. Trustworthiness, p. 5.
> ‘Abdu’l-Bahá. Foundation of World Unity, p. 41.
> Bahá’u’lláh. Gleanings, p. 94.
> Economics and the Bahá’í Faith
> 
> such a reform need to be multi-dimensional. In addition, and
> on the positive side, it was argued that humanity today has
> the capacity to combat the challenges of globalization.
> 
> The process of capacity building and community building
> involves a global enterprise of learning. It is a process of
> action, evaluation, and adjustment, one in which local
> communities gradually improves their abilities to define,
> analyse, and meet their own needs. Hence, the process of
> attaining a meaningful globalization in the Bahá’í community
> is incorporating development strategies through a
> combination of bottom-up and top-down planning systems. A
> substantial amount of decision-making, planning and
> implementation comes from the grassroots population, with
> necessary guidelines and technical and financial support from
> the Bahá’í institutions, such as the Office of Social and
> Economic Development at the Bahá’í World Centre. In the
> next chapter, the Bahá’í view on development will be
> discussed.
> 
> Bahá’í Development Approach – Theory and Practice
> 
> Chapter 7: Bahá’í Development Approach:
> Theory and Practice
> 
> Bahá’í worldwide now generally possess a much
> clearer understanding of the unique Bahá’í
> approach to development and have gained
> invaluable experience in developing the art of
> applying spiritual concepts to the practical
> challenges of daily life.1
> Universal House of Justice
> 
> 7.1     Introduction
> There is a great deal of correlation between globalization and
> economic development. The two processes are inextricably
> linked. If we consider Michael Todaro’s definition of
> development as ‘The process of improving the quality of life
> for all’2 then, as Jeffrey Williamson writes, ‘It started about
> the same time as globalization, in the early 19th
> century.’3 Considering these observations, it can be argued
> that globalization and development are mainly 19th and 20th
> century phenomenon and go hand in hand. The question of
> which one comes first, the response is that globalization
> requires the means, and the means are attained through
> developments in such things as advancement in
> transportation, effective communication, and technological
> progress. The degree of development, however, depends on
> the resourcefulness of communities, both physical and
> intellectual. Development programs are varied from small
> scale at local communities, to large scale at global level,
> depends on the resources available to a particular community
> 
> Universal House of Justice, The Six Year Plan, summary of achievements, p. 72.
> Michael Todaro. Economic Development, p. 739.
> Jeffrey Williamson. ‘When Did Globalization Begin?’ European Review of
> Economic History, vol. 6:01, April 2002, pp. 23-50, at p. 23.
> Economics and the Bahá’í Faith
> 
> or to an organization to carry out social and economic
> development projects. For example, agencies working under
> the United Nations, and others such as Canadian International
> Development Agency (CIDA) with substantial resources are
> able to undertake extensive development projects around the
> world.
> 
> 7.2     Office of Social and Economic Development
> The accelerated growth of the Bahá’í community worldwide
> in the 1960s-1980s led to the enrolment of a large number of
> people in India, Africa, South and Central America. Such
> rapid expansion for the Bahá’í communities created
> challenges, as the development required induction and
> consolidation in the Faith. The process of consolidation
> needed cooperation among Bahá’í communities worldwide.
> The development projects were therefore started, supported
> and reinforced by the Bahá’í communities. Such a process,
> pursued most notably through a variety of educational
> activities, received considerable impetus in two separate
> statements issued by the head of the Bahá’í Faith, the
> Universal House of Justice. First, in 1983, the historical
> statement of 20th September asked for ‘systematic attention’4
> to be given to the above area of activities following the rapid
> expansion of the Bahá’í community during the 1970s,5 and
> hence the Office of Social and Economic Development
> (OSED) was established. Second, a statement issued in
> September 1993 entitled ‘Bahá’í Social and Economic
> Development: Prospects for the Future.’
> 
> The     OSED        is    responsible       for    coordinating        Bahá’í
> 
> Universal House of Justice. ‘Message dated 20 October 1983,’ Haifa: Bahá’í
> World Centre Publications, 1983.
> Holly Hanson Vick. Social and Economic Development: A Bahá’í Approach,
> Oxford: George Ronald, 1989, p. 8.
> Bahá’í Development Approach – Theory and Practice
> 
> development projects and is an agency of the Universal
> House of Justice at the Bahá’í World Centre in Haifa, Israel.
> Some of the responsibilities of the OSED are to provide
> ‘support and guidance’6 to Bahá’ís engaged in development
> activities by ‘coordinating the flow of human and financial
> resources to projects’ 7 and to nurture them by ‘providing
> general advice, technical and otherwise, in response to the
> questions that naturally arise in carrying on such
> endeavours.’ 8 Therefore, the work of OSED according to
> Universal House of Justice should be organized around its
> primary purpose to ‘facilitate learning about development by
> fostering and supporting action, reflection on action, study,
> consultation, the gathering and systematisation of experience,
> conceptualisation, and training - all carried out in light of the
> Teachings of the Faith.’9
> 
> 7.3     Bahá’í view on development
> It is notable that the association of economic viewpoints with
> religion and development are not new, nor is it restricted to
> scholars of the 21st century. Scottish philosopher and
> economist, Adam Smith presented his view of development
> in his two major publications, the wealth of nations and the
> theory of moral sentiment, arguing that the way to economic
> development is increasing production, productivity and the
> wealth of a nation. Also, German economist, socialist and
> politician Max Weber put forward his now-famous theory of
> ‘the Protestant ethic and the spirit of capitalism,’ arguing
> that economic development in Northern Europe could be
> explained by developments associated with the ‘Protestant
> 
> Office of Social and Economic Development. Haifa: Bahá’í World Centre
> Publications, 1999.
> Ibid.
> Ibid.
> Ibid.
> Economics and the Bahá’í Faith
> 
> ethics,’ which was interested in savings and entrepreneurial
> activity. Hence, economists and philosophers recognise these
> factors as necessary components of the theories and models
> associated with sustained economic growth and development.
> 
> The universality of Bahá’í development is incorporated and is
> the basis of Bahá’í inspired social and economic development
> projects. This indicates that in our increasingly
> interdependent world, Bahá’í development efforts must be
> animated by universal values and guided by a vision of the
> world community. Projects are thus designed to engage and
> benefit all the members of a community and not only Bahá’ís.
> This vision is necessary for understanding the concept
> meaningful globalization. Collabouration with organizations
> and leaders of thought concerned with social, moral and
> economic advancement is an important component of Bahá’í
> development endeavours. Bahá’u’lláh states ‘All human
> beings have been created to carry forward an ever-advancing
> civilisation.’10 Consequently, the creation of a prosperous and
> peaceful global society that promotes individual and
> community wellbeing is central to the Bahá'í vision of the
> future, which is incorporated by all economic development
> activities. It is based on these principles that the Bahá’í
> development approach is the struggle to learn universal
> values. This requires engendering a new mind-set in the
> Bahá’í community, which is already in place through various
> educational programs for all ages. The existence of more than
> one thousand social and economic development projects
> worldwide, with visions such as unity, world citizenship,
> service to humanity, work as worship, consultation, and
> putting the grass root population at the centre of activities,
> 
> Bahá’u’lláh. Gleanings, p. 215.
> Bahá’í Development Approach – Theory and Practice
> 
> will have a positive effect on reforming the current
> globalization.
> 
> According to Bahá’í Writings, religion has been among the
> most powerful agents for changing human attitudes and
> behaviour towards development. Religion, has traditionally
> defined human nature, and our relationship each other and
> with respect to the environment. Religion, in the Bahá’í view,
> is ‘the cause of development and the animating impulse of all
> human advancement’ [and] ‘has been the basis of all
> civilisation and progress in the history of mankind.’ 11 In a
> number of ways religions are the causes of wealth creation.
> For example, it advocates moderation, which reduces wastage
> of resources, and adds to wealth and it promotes for all
> creatures and plants and the conservation of the earth’s
> resources. Religion also encourages sharing and caring and
> hence influences wealth redistribution. Many of the important
> decisions about family, work and savings have been rooted in
> religious beliefs. Religion emphasises the human resource
> development that constitutes the ultimate basis for wealth of
> nations. Religion is the source of hope for the vast majority
> of the planet’s inhabitants. It is, therefore, ‘inconceivable that
> a peaceful and prosperous global society, a society which
> nourishes a spectacular diversity of cultures and nations, can
> be established and sustained without directly and
> substantively involving the world’s great religions in its
> design and support.’12 Social and economic development has
> been an important part of all religions and the Bahá’í Faith is
> not an exception. What is significant now is the timing and
> geographical implication of Bahá’í development.
> 
> ‘Abdu’l-Bahá. Promulgation, p. 361.
> Bahá’í International Community. ‘Statement on Sustainable Development,’
> World Summit on Sustainable Development, Johannesburg, South Africa, August
> 26, 2002.
> Economics and the Bahá’í Faith
> 
> It is the right time for the Bahá’í community to be involved in
> social and economic development activities on a global scale
> because as Holly Hanson puts, of the ‘strong foundation that
> has been created over more than half a century of establishing
> and building a worldwide Bahá’í community (the statement
> was written in 1989).’ 13 The ‘global scale’ and ‘strong
> foundation’ can be interpreted as the establishment of
> increasing numbers of Local Spiritual Assemblies around the
> world, which coordinate and direct the activities of the Bahá’í
> community in villages, towns and cities. Also, the ‘global
> scale’ does not refer to the size of projects but to the number
> of projects. This indicates grassroots involvement in a
> coordinated fashion while their activities are linked and
> supported by the Bahá’í administrations at local, national and
> international levels. The support can be in planning or
> offering financial assistance if required. Therefore, the vast
> majority of Bahá’í social and economic development projects
> are local in nature rather than global. Confirming this the
> Bahá’í International Community writes:
> Most Bahá’í social and economic development efforts
> are fairly simple activities of fixed duration in which
> Bahá’ís in villages and towns around the world apply
> spiritual principles to the problems and challenges
> faced by their localities. These activities either
> originate in the Bahá’í communities themselves or are
> a response to the invitation of other organizations.14
> 
> The development projects consist of academic schools
> dealing with literacy and capacity building. Many others
> focus on areas such as basic health care, immunisation,
> substance abuse, childcare, agriculture, the environment, and
> microenterprise. Workshops and seminars on such themes as
> 
> Holly Hanson Vick. Social and Economic Development, p. 8.
> Bahá’í International Community. ‘Bahá’í Development Projects: A Global
> Process of Learning, 1999.
> Bahá’í Development Approach – Theory and Practice
> 
> race unity and the advancement of women are also organized
> for the whole community. The approach to creating and
> operating these projects is distinctively Bahá’í. Many of these
> programs according to Holly Hanson Vick are ‘fairly simple
> activities of fixed duration in which Bahá’ís in villages and
> towns around the world apply spiritual principles to the
> problems and challenges faced in their localities. 15 The
> approach to creating and operating these projects is
> distinctively based on Bahá’í teachings. Many projects place
> emphasis on raising the status of women, and a number of
> projects seek to serve minority populations that have been
> discriminated against. Most projects make extensive use of
> the principle of consultation in an effort to seek input from,
> and empower, those whom the projects attempt to serve.
> 
> In spite of considerable progress in the expansion of
> development activities in the Bahá’í community, the
> following two points are of importance. One is that projects
> are aimed to increase people’s self-reliance, communal
> cooperation, giving access to knowledge, and where possible,
> removing sources of injustice and prejudices. These are
> fundamental and necessary for the success of projects in
> long-term plans. Also, considering that Bahá’í development
> projects are mainly in areas where poverty and social
> problems are prevalent, projects that create job opportunities
> in a short period of time become favourable.
> 
> 7.4     Features of Bahá’í development
> By studying and observing the pattern of activities of Bahá’í
> development projects around the world, it is possible to
> identify the following five features.
> 
> Holly Hanson Vick. ‘Overview of Bahá’í Social and Economic Development,’
> Bahá’í World, Vol. 21, 1992-1993, pp. 229-245, at p. 233.
> Economics and the Bahá’í Faith
> 
> 7.4.1 Material and spiritual coherence
> From a Bahá’í perspective, development is an organic
> process in which ‘the spiritual is expressed and carried out in
> the material.’ 16 Therefore, an important feature of Bahá’í
> development is that it must respond to both material and
> spiritual needs in a balanced way. The Bahá’í literature
> considers human beings essentially as spiritual in nature and
> happiness and well-being will be ideally satisfied if the
> spiritual aspects of their life is fulfilled and developed
> alongside the material. ‘Abdu’l-Bahá said: ‘Although
> material civilisation is one of the means for the progress of
> the world of mankind, yet until it becomes combined with
> divine civilisation, the desired result, which is the felicity of
> mankind, will not be attained.’ 17 Hence, Bahá’í inspired
> development projects incorporate this basic requirement.
> 
> 7.4.2 Universality of Bahá’í development
> Another feature of Bahá’í development is that in our
> increasingly interdependent world, development efforts must
> be animated by universal values and guided by a vision of the
> world community. Projects are thus designed to engage and
> benefit all the members of a community and not only Bahá’ís.
> Collabouration with organizations and leaders of thought
> concerned with social, moral and economic advancement is
> an important component of Bahá’í development endeavours.
> Bahá’u’lláh states ‘All human beings have been created to
> carry forward an ever-advancing civilisation.’ 18
> Consequently, the creation of a prosperous and peaceful
> global society that promotes individual and community well-
> being is central to the Bahá’í vision of the future, which is
> 
> ‘Abdu’l-Bahá. Paris Talks, p. 9.
> ‘Abdu’l-Bahá. Bahá’í World Faith, p. 289.
> Bahá’u’lláh. Gleanings, p. 215.
> Bahá’í Development Approach – Theory and Practice
> 
> incorporated by all economic development activities. It is
> based on these principles that the Bahá’í development
> approach is the struggle to learn universal values. This
> requires engendering a new mind-set in the Bahá’í
> community, which is already in place through various
> educational programs for all ages.
> 
> 7.4.3 Development with the grassroots population
> The desire for change must come directly from individuals
> and communities and cannot be imposed from the outside.
> An important aspect of Bahá’í development projects is that
> for the most part, these activities are very simple initiatives
> that take place at the grassroots level. The activities are used
> to unlock the creative capabilities of individuals and
> communities. The form of grassroots initiatives carried out by
> small groups of individuals in towns and villages has an
> important effect in the long run. As these initiatives evolve,
> some grow into more substantial programs with permanent
> administrative structures. Yet, very few of Bahá’í
> development projects can be compared with the kind of
> complex development projects sponsored by government
> agencies and large multilateral organizations such as
> Canadian International Development Agency (CIDA).
> Therefore, the most important successes of Bahá’í
> development initiatives are qualitative in nature. With an
> emphasis on grassroots action and evolutionary growth,
> Bahá’í development projects complement the many other
> elements of Bahá’í community life. Development activities
> are an integral aspect of Bahá’í efforts to create a pattern of
> living that releases individual potential and simultaneously
> promotes the collective good. Therefore, the Bahá’í
> Development approach, is not a product to be delivered by
> the ‘developed’ countries to the ‘underdeveloped.’ Rather, it
> is a process in which individuals and communities in all parts
> Economics and the Bahá’í Faith
> 
> of the world, regardless of the degree of their material
> prosperity, become the principal actors in defining, analysing
> and solving their own problems.
> 
> 7.4.4 Education, the focus of Bahá’í development
> Learning takes place at all levels and involves all the
> members of Bahá’í communities, whatever their capacities
> and experiences. Development of human resources is closely
> related to learning and building of capacity. Training
> methods, which foster participation and an open attitude
> toward learning, principally involve individuals and groups at
> the grassroots, but can also include professionals and students
> from other regions and countries. In this way, a worldwide
> process of learning is encouraged. The classes, and other
> educational activities offered in increasing numbers by
> Bahá’í communities around the world, can help to ensure that
> children grow strong intellectually, morally, and spiritually.
> The view is that increased prosperity in rural areas of
> developing countries is mainly possible through the education
> of rural children. To contribute to their societies effectively,
> these children require not only acquiring knowledge and
> skills, but also being acquainted with universal ethical values
> to develop capability and proficiency. However, the main
> focus of Bahá’í development projects is not only providing
> necessary knowledge and education to increase the children’s
> ability to earn financial requirements, but also to improve the
> quality of life through personality development.
> 
> There are numerous examples of Bahá’í inspired social and
> economic development projects with a systematic approach.
> By investigating these projects around the world, the
> indication is that a systematic approach is adopted towards
> the application of Bahá’í principles towards development.
> This is a key factor for the success of Bahá’í projects to the
> Bahá’í Development Approach – Theory and Practice
> 
> challenges of social and economic development. According
> to the Bahá’í International Community:
> Certain Bahá’í development efforts have achieved the
> stature of development organizations with relatively
> complex programmatic structures and significant
> spheres of influence. They systematically train human
> resources and manage a number of lines of action to
> address problems of local communities and regions in
> a coordinated, interdisciplinary manner.19
> 
> The components for the application of a systematic approach
> towards development stated before. The Ruhi Institute20 is a
> good example of a successful Bahá’í Institute Process carried
> on in a systematic way. In regard to its aim and function, the
> Universal House of Justice stated:
> Thousands upon thousands, embracing the diversity of
> the entire human family, are engaged in systematic
> study of the Creative Word in an environment that is
> at once serious and uplifting. As they strive to apply
> through a process of action, reflection and
> consultation the insights thus gained, they see their
> capacity to serve the Cause rise to new levels.21
> 
> These activities have understood and demonstrated that a
> systematic, deliberate process of study, consultation, action
> and reflection are essential to the success of any Bahá’í
> enterprise.
> 
> The focus of a considerable number of Bahá’í development
> projects is closely related to learning and building of
> capacity. Training methods, which foster participation and an
> Bahá’í International Community. ‘Bahá’í Development Projects: A Global
> Process of Learning.’
> ‘Ruhi institute’ is based on the concept of the ‘training institute’. The Universal
> House of Justice in the mid-1990s introduced the ‘training institute.’ Its purpose is
> to assist individuals to deepen their understanding of the Bahá’í teachings, and to
> gain the spiritual insights and practical skills they need to carry out the work of
> the community.
> Universal House of Justice. Ridván Message, 21 April 2008.
> Economics and the Bahá’í Faith
> 
> open attitude toward learning, principally involve individuals
> and groups at the grassroots, but can also include
> professionals and students from other regions and countries.
> In this way, a worldwide process of learning is encouraged.
> The classes, and other educational activities offered in
> increasing numbers by Bahá’í communities around the world
> can help to ensure that children grow strong intellectually,
> morally, and spiritually. The view is that increased prosperity
> in rural areas of developing countries is mainly possible
> through the education of rural children. To contribute to their
> societies effectively, these children require not only acquiring
> knowledge and skills, but also for personality development,
> and to improve the quality of life for themselves, for their
> families and the community in which they live.
> 
> 7.4.5 Community building process
> Bahá’u’lláh refers to the human being ‘as a mine rich in gems
> of inestimable value’22 and states that the purpose of life and
> society is to generate creative processes that serve to release
> those ‘gems’ of human potential. As individuals begin to
> cultivate their innate capacities, so the community around
> them is transformed, and impetus is given to ‘an ever-
> advancing civilization.’23 It is therefore the hope of the Bahá’í
> community that its current modest efforts in the development
> field will serve to promote a model of capacity building and
> community building that results in widespread moral and
> material advancement. Increased capacity depends on the
> degree and dimension of the local contributions and
> participation to the project in terms of human resources,
> financial aspects and other resources. At this stage of the
> development of the Bahá’í communities globally, social and
> 
> Bahá’u’lláh. Gleanings, p. 259.
> Ibid. p. 215.
> Bahá’í Development Approach – Theory and Practice
> 
> economic development Projects are not fully self-sufficient,
> both financially and in terms of human resources. However,
> there is a strong local initiative to support the Project.
> 
> 7.4.6 Collabouration with organizations of the society
> Collabouration with organizations and leaders of thought
> concerned with social, moral and economic advancement is
> an important component of Bahá’í development endeavours.
> The founder of this Faith states ‘All human beings have been
> created to carry forward an ever-advancing civilisation.’ 24
> Consequently, the creation of a prosperous and peaceful
> global society that promotes individual and community
> wellbeing is central to the Bahá'í vision of the future, which
> is incorporated by all economic development activities. It is
> based on these principles that the Bahá’í development
> approach is the struggle to learn universal values. This
> requires engendering a new mind-set in the Bahá’í
> community, which is already in place through various
> educational programs for all ages such as ‘the Institute
> Process’.
> 
> 7.5    Development in practice
> The importance of work ethics and sustainable production
> cannot be appreciated without its practical implications. Here
> are some possible practical and real-world observations from
> the Bahá’í community offering the grass root population the
> means for development and creating a better life for them and
> the larger community. A number of Bahá’í social and
> economic development projects in developing countries have
> incorporated a culture that is explicit about welcoming
> constant change. The positive attitude for welcoming change
> is a prerequisite for successful adaptation of appropriate
> 
> Bahá’u’lláh. Gleanings, p. 215.
> Economics and the Bahá’í Faith
> 
> technologies. For example, India hosts a number of Bahá’í
> inspired socio-economic development projects including
> Barli Development Institute for Rural Women (Indore), New
> Era Teacher Training Centre and New Era School
> (Panchgani, Maharashtra), Rabbani School (Gwalior),
> Foundation for Advancement of Science (Lucknow), and
> Rahmanian Foundation in Rajshahi - Bangladesh. These
> establishments are a few examples that are using small and
> medium-sized or intermediate technology and organising
> training programmes designed for people at the grassroots
> level. They use relatively simple and inexpensive ways to
> make better use of available resources. The principal behind
> this is that low-cost modern ways of performing tasks are
> devised for increasing productivity. The important feature of
> intermediate technologies is that they are appropriate to the
> local circumstances in which they are used. The emphasis is
> on the use of existing skills and resources so that people do
> not become over-dependent on others. The economic
> perspective in relation to any community that are using local
> resources and also appropriate technology and skills learning
> create more jobs.
> 
> The principles of Bahá’í work ethics discussed in chapter two
> enable individuals and business organizations to create
> employment opportunity by removing some of the labour
> market deficiencies. Such opportunities boost earnings and
> favour all participants. Individuals and families benefit from
> increased disposable income and hence having a better
> standard of living. However, the task is not that easy and
> there are unexpected limitations and challenges such as
> external shocks that affect the labour force unpleasantly and
> Bahá’ís are not excluded. The Bahá’í community is not an
> isolated community and what happens to the whole labour
> market will affect the Bahá’ís as well, such as suffering from
> Bahá’í Development Approach – Theory and Practice
> 
> unemployment during a period of recession.
> 
> 7.6      Chapter conclusion
> We need to keep in mind that those development agencies
> such as NGOs (non-governmental organizations) and Faith-
> based institutions are still in a transition period and there is a
> need for shaping the form of partnerships between different
> institutions in the future. The issues of religion are of critical
> importance in the global agenda and there are many links
> between religion and development that are complex and
> diverse. There is a need to continue to work on building
> stronger partnerships and alliances between development
> agencies and Faith-based organizations and better understand
> how the two works together.
> 
> Also, for a socio-economic development project to become
> successful, it must be trusted. The reason many governments
> fail to attract funding from International Agencies such as
> ‘the World Bank’, ‘United Nations’ and ‘Canadian
> International Development Agency’ is the lack of trust and
> commitment. In looking at overall development assistance for
> poor countries, the international community wants to make
> sure that funds are spent in areas in which they are needed.
> Local governments receiving the funding must show a
> genuine commitment to allocate resources to a specific
> requirement. The former director of Development Dialogue
> on Values and Ethics in the World Bank, Katherine Marshall
> thinks that the poor work done by governments in certain
> regions indicates or causes high trust levels for Faith
> organizations, much higher than for most other institutions
> such as police, governments, NGOs and politicians.
> Therefore, if the objective is to work with communities, trust
> is a critical element, and building on and working with the
> trust placed in Faith organizations is very important. The
> Economics and the Bahá’í Faith
> 
> trustworthiness of Bahá’í projects as Faith-based agencies
> puts them in a strong position to be engaged in community
> development successfully.
> 
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> Chapter 8: The Bahá’í Inspired Model of
> Economic Sustainability
> 
> Sustainable development is development that
> meets the needs of the present without
> compromising the ability of the future
> generations to meet their own needs.1
> (World Commission on Environment and Development)
> 
> 8.1     Introduction
> We must make a distinction between a market economy and a
> market society. The market economy is a tool to organize
> economic activities; however, a market society is where
> almost everything is for sale. Both markets have become a
> way of life for many where market-thinking dominate every
> aspect of life. The missing part of this kind of market and
> lifestyle is the absence of moral values, which must become a
> part of the process of market thinking.
> 
> Therefore, the market is in conflict with itself and with its
> participants and stakeholders frequently. Conflict and
> inconsistency lead to the market being unbalanced or
> reaching a disequilibrium position. Hypothesise of economic
> theories is achieving maximum gain. In new-classical
> economics, it is assumed that the interests of owners or
> shareholders are the most important element. Just as
> consumers attempt to maximize utility and workers attempt
> to maximize their rewards from working, shareholders will be
> motivated solely by maximizing their gain from the company,
> suppliers are interested to deal with larger companies, and
> 
> Report from the World Commission on Environment and Development
> (Brundtland Commission) published in 1987.
> Economics and the Bahá’í Faith
> 
> government is addicted and dependent on taxes. In all these
> instances, conflicts of objectives arise in the market, which
> hinder equilibrium. The reason is that each actor or agent in
> the market considers one’s own gain, while disregarding the
> collective interests of the whole; and as long as ‘the spirit of
> unity, of cooperation and of selfless service’2 is absent in the
> market, the challenges of the market will not be resolved.
> Having identified some of the challenges and inconsistencies
> of the market, the proposition of this chapter is introducing a
> theoretical description of economic variables as an alternative
> approach to balancing the market. Without denouncing the
> role of pricing, the proposition in this model is that by
> incorporating and embracing moral incentives into the actions
> and behaviours of the participants of the market, we can
> reach to a more balanced economy. The model is a simplified
> representation of the application of Bahá’í teachings on
> economics in balancing the market in a sustainable way, the
> eco-well-being.
> 
> The process of establishing a balanced market, also, can be
> challenged. For example, participants in the market represent
> their own thinking and behavioural patterns, such as the
> motives of profit maximisation, self-interest, and aggressive
> competition. The major activities of the market are through
> the unit of currency as a medium for transaction. When
> money dominates major aspects of a market, inequality
> matters a great deal. The marketization of commodities and
> psychological and misleading advertisements increases the
> inequality of life. The spiritual principles suggested in this
> 
> Shoghi Effendi. Letter written on his behalf dated 10 August 1933. He states:
> ‘You should not attach much importance to your numerical strength, but should
> always try to foster among you the spirit of unity, of cooperation and of selfless
> service. For these alone constitute the true standard according to which your
> activities should be judged and estimated.’
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> model, when applied, balances the focus on monetary values
> and act as guiding principles to promote a fundamental
> transformation towards sustainability.
> 
> 8.2     The rational for the model
> The modern market is a complex system of organization. The
> proponents of the free-market economy claim that the market
> is self-correcting and consumers and producers know best
> what to consume and what to produce, and they are behaving
> rationally, and the market eventually reach equilibrium.
> Others, on the other hand, argue, the fact that there is high
> unemployment in some markets, various types of negative
> externality, underproduction of public goods, the existence of
> poverty and inequality are indications that the market is not
> self-correcting. The 2008 global financial crisis led to the
> entire economic life to have extreme fluctuation. The
> Universal House of Justice sates, ‘if current approaches to
> economic life satisfied humanity’s stage of adolescence, they
> are certainly inadequate for its dawning age of maturity.
> There is no justification for continuing to perpetuate
> structures, rules, and systems that manifestly fail to serve the
> interests of all peoples.’3
> 
> Of course, fluctuation in the business cycle of any market is
> normal, but it is possible to eliminate the extremes. Hence,
> the argument in this model is that there are growing
> challenges and problems in the economy that both the market
> and the government have failed to address. Without
> denouncing the role of government and the position of the
> free-market economy and the pricing system, the Bahá’í
> inspired model suggests that spiritual principles and moral
> incentives should become a part of the formula for
> 
> Universal House of Justice, Economic Life, 1 March 2017.
> Economics and the Bahá’í Faith
> 
> sustainability and achieving equilibrium. The moral
> incentives are vital for the quality of relationship among the
> participants of the market.
> 
> Alternatively, it would be advantageous to examine the
> working of the market and to know how it functions under
> different conditions and see more clearly what is valuable and
> what is not. For example, markets give consumers a choice of
> commodities to buy. Clearly this is valuable. However, the
> choice of commodities on the market does not necessarily
> reflect what people want to buy, or what is good for society.
> Market mechanism, according to Joseph Carens ‘is simply a
> social device adopted to serve the goals of the community.’4
> Hence, the resources such as land, labour, and capital are
> justified only if they are beneficial to the community. Also,
> resource holders such as entrepreneurs have to act in ways
> that are beneficial to the community. Other issues concern
> false advertisements, which mislead innocent and more
> vulnerable customers into purchasing items that they would
> otherwise not buy. This is clearly wasting resources.
> 
> In this model, human activities are closely linked to human
> values and moral incentives. For example, this model
> supports the view that our economy cannot be in isolation
> from nature and human values. As stated by Shoghi Effendi
> ‘We cannot segregate the human heart from the environment
> outside us.’ 5 Sustainability therefore requires that the
> activities within the market be in harmony with the laws of
> nature, otherwise we may face severe consequences. This
> view provides the very basis for a vigorous system of global
> 
> Joseph Carens. Equality, Moral Incentives, and the Market – An Essay in
> Utopian Politico-Economic Theory, The University of Chicago Press, Chicago
> and London, 1981, p. 189.
> Shoghi Effendi. Conservation, p. iii.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> economic system, also suggested by Jeffrey Sachs.
> Development ecologist William Rees popularised the concept
> of the ‘ecological footprint’, which he defined as ‘the impact
> of a person or community on the environment, expressed as
> the amount of land required to sustain their use of natural
> resources.’6 And the Ecological Footprint indicator attempts
> ‘to measure the amount of renewable and nonrenewable
> ecologically productive land area that is required to support
> the resources demands and absorb the waste of a given
> population or specific activities.’7 He believes that there is a
> need to have a new, global cultural narrative. He writes:
> We must learn to override our innate expansionist
> tendencies and abandon our perpetual growth myth.
> Instead of forcing the environment to conform to our
> demands we must learn to adapt our expectations to
> ecological reality. A good start would be a new global
> cultural narrative that shifts the values of society from
> competitive individualism, greed, and narrow self-
> interest, towards community, cooperation, and our
> collective interest in repairing the earth survival.8
> 
> Economic growth for Rees, therefore, is a question of moral
> judgement and taking account of moral principles when
> making decisions. According to him increasing human
> capacity facilitates effective moral decision-making.
> Expounding on this Rees writes:
> Our most human qualities must prevail – our capacity
> for reason, our capacity for forward planning, our
> ability to make moral judgements, our compassion for
> other people and other species. If we use these
> qualities in a great expression of collective
> intelligence on both the local and global scales,
> 
> William Rees. Cited in Tom Tietenberg. Environmental And Natural Resource
> Economics, 9th ed., Pearson Education Inc., 2012, p. 557.
> Tom Tietenberg. Environmental And Natural Resource Economics, pp. 557-558.
> William Rees. Quoted in Hanley, Eleven, p. 135.
> Economics and the Bahá’í Faith
> 
> humanity can become sustainable.9
> 
> Incorporating Rees’ views with the Bahá’í thinking, it can be
> said that in the long run there is a need to limit the growth,
> regulate the market, pursue a moderate lifestyle, educate
> children, junior youths and youths to know the purpose of
> life, and understand the concept of ‘world citizenship’,
> creating a culture of moderation in all aspects of life.
> 
> How do we get from our present market condition to a more
> sensible, equitable and sustainable world? The model argue
> that a one-dimensional solution adopted mainly through
> monetary instruments would not be effective in dealing with
> such market inconsistencies. ‘Abdu’l-Bahá, states, ‘The
> trouble with our economics [is that] …its system and
> application have been purely material, instead of material and
> spiritual.’ 10 Hence, the proposition in this model is to
> consider a multi-dimensional approach to the market
> equilibrium and sustainability - monetary and non-monetary.
> The model suggests a process of ‘adjustment of means of
> livelihood in human society,’ 11 which requires a change in
> lifestyle for all participants of the market. The model
> supports the definition of sustainability and sustainable
> development stated by the Brundtland Commission of the
> United Nations. The main component of sustainable
> development is a development that meets the needs of the
> present without compromising the ability of the future
> generations to meet their own needs. 12 Preserving and
> protecting the eco-system should be added to this definition.
> 
> Ibid.
> Quoted by Mary Hanford Ford, ‘The Economic Teaching of ‘Abdu’l-Bahá’,
> Star of the West, vol. viii: 1, 21 March 1917, p. 5.
> ‘Abdu’l-Bahá. Promulgation, p. 216.
> Report from the World Commission on Environment and Development
> (Brundtland Commission),1987.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> The future generations have the same right to enjoy the
> benefits of the planet earth as we do.
> 
> 8.3     Illustration of the model
> Figure 1 is an image of the free-market economy. This
> market is out of balance most of the time. The absence of
> market equilibrium means that resources including natural,
> physical, and humans are wasted all the time. Some of the
> significant problems associated with each part that causing
> the market to become out of balance includes greed at the
> stage of needs and wants; the main focus on profit
> maximization with organizations; some of the products
> produced are damaging to the environment; unnecessary for
> living; the market function on the basis of relentless and
> aggressive competition; distribution is unjust and causing
> increasing the gap between the rich and the poor;
> consumption stage is unsustainable and has led to
> consumerism. The failure of the free-market economy is not
> without the cost. The current market economy is based on
> self-interest; power distortion and aggressive competition,
> and causing negative externalities, increasing the gap
> between the rich and the poor and the presence of
> disequilibrium most of the time.
> 
> Economics and the Bahá’í Faith
> 
> Figure 1: Different stages of the cycle of production in a free-market economy
> 
> Figure 2 is the Bahá’í inspired model of economic
> sustainability. This is an improvement of the different parts
> of the cycle of production in a free-market economy based on
> an understanding of spiritual and material aspects of the cycle
> of production with unity/oneness as the nucleus. The pillars
> of the model are the four spiritual principles of moderation,
> cooperation, consultation and compassion. These pillars
> provide the foundation and support for the proper functioning
> of the rest of the model. The next part of the model shows the
> resources necessary for the smooth functioning of the cycle
> of production. These are human resources, physical
> resources, and financial resources. The outer part is the cycle
> of production, which includes needs and wants,
> organizations, sustainable production, the market, distributive
> justice, and sustainable consumption. The close and
> inseparable connection between unity, spiritual principles,
> efficiency of resources, and cycle of production is at the heart
> of this model and captures its meaning and purpose. These
> 
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> principles are necessary for an effective planning process. For
> the model to be effective, the entirety of the model must be
> studied and considered. All parts of this model are
> complementary and interconnected.
> 
> Figure 2: The Bahá’í Inspired Model of Economic Sustainability
> 
> 8.3.1 Unity/oneness as the nucleus of the model
> At the centre of this model is the core principle of
> unity/oneness of thoughts and actions for maintaining
> reciprocity and acting responsibly by all participants in the
> market towards each other. In chapter six section 6.3 a
> contrast is made between unity and oneness.
> 
> Economics and the Bahá’í Faith
> 
> By unity in the context of this model means ‘the spirit of
> unity.’ Unity, in a sense that people are concerned,
> interconnected and responsible for the needs of each other,
> recognise human well-being as a human right, and accept that
> the suffering of others will affect their own comfort in the
> long run. Thinking of humanity as one entity, whether it is in
> a small community or in the wider society, can be effective in
> resource efficiency. Unity in a sense that one’s feeling and
> thinking is in harmony with one’s action. This way of
> thinking by various participants helps the coordination of
> various activities in the market and its stability. The success
> of many economic models and theories are based on the
> principle of unity. Examples include, comparative advantage,
> which is two-sided trade and requires harmonious association
> between the two parties. The success of a single currency,
> whether regional or international, is based on unity among
> member countries. The equilibrium between the supply and
> demand is best achieved if consumers and producers act
> towards each other sensibly and conscientiously. In similar
> fashion, we can apply the concept of ‘the spirit of unity’ to
> other economic ideas. Unity, therefore, is the nucleus, and a
> prerequisite for establishing market equilibrium. It is the core
> principle that acts like a catalyst to create a balance in the
> market and to maintain it in the long run. Unity acts like a
> bridge between microeconomics and macroeconomics when
> the attitude is shifted from individual self-interest to the
> collective well-being and prosperity of the entire economy.
> To practice unity requires universal participation by all
> stakeholders in accepting responsibility and creating and
> maintaining a balance in using resources. Hence, one of the
> applications of the principle of unity is to coordinate human,
> financial, and physical resources in favour of all participants
> of the market, justly and fairly.
> 
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> 8.3.2 Spiritual principles of the model
> The application and understanding of the working definition
> of ‘spirituality’ as a ‘unifying agent’ and as a relational
> mediator, discussed in chapter one is vital for this model. It is
> defined as the process of unifying, developing and
> interconnecting our life with the material world, with other
> people, with our environment, and with the future
> generations, beyond ourselves. This definition is important
> for qualitative purposes and also provides measurable
> meaning to most parts of the model; hence it would be
> valuable and appealing to social scientists, including
> economists. A crucial requirement of this model is that it uses
> moral incentives as a major source of motivation for
> economic activities. Human, physical and financial resources
> function more effectively alongside spiritual principles. By
> ‘moral incentives’ means incentives that is based on the
> desire to serve society or to perform one’s duty to society.
> 
> The conventional view indicates that human values and
> ethical considerations are on a different level from economic
> issues of production, distribution and consumption. This view
> is particularly dominant in the neoclassical model of
> economics. Expounding on this John Wilson writes that the
> model of neoclassical ‘portrayed as a purely positive model
> of behaviour, independent of any normative considerations. It
> argues that the source of human motivation is rational, self-
> interest maximisation.’13 The position of sustainability model
> is different from the neoclassical model of human behaviour
> and morality in economic issues. The Bahá’í inspired model
> of economic sustainability integrate human values with
> 
> John Wilson. Cited in Frank Ackermann, ed., Human well-being and economic
> goals, New York, 1991, p. 23.
> Economics and the Bahá’í Faith
> 
> economic matters.
> 
> The spiritual principles of moderation, compassion,
> consultation, cooperation is considered vital for the
> application of the ‘unifying factor’, and for the effective
> functioning of this model.
> 
> 8.3.2.1 Moderation
> Moderation is a core spiritual principle for this model.
> Moderation has important implications in economics through
> resource allocation in the market. If sustainability is about
> resource efficiency and consideration of other people, the
> environment and the future generation, then moderation plays
> a vital role in achieving sustainability. Moderation affects all
> aspects of the market including lifestyle, the size of business
> and its expansion and the environment. One important
> economic objective of moderation expressed in this model is
> the focus on the elimination of extremes of wealth and
> poverty.
> 
> The practice of moderation in the wider market requires a
> different mind-set to become a norm and a part of the culture,
> which must be built on trust. No market can function
> effectively without the presence of trust among different
> agents. As market is a place that buyers and sellers come into
> contact for exchanging commodities, it requires them to be in
> association with each other. Effective association is based on
> the element of trust; otherwise, it will be difficult to establish
> a real connection. But how to build a society based on trust?
> The proposition is to start in the family unit. From a Bahá’í
> perspective, the family unit offers an ideal setting within
> which can be shaped those moral attributes that contribute to
> an appropriate view about material wealth and its utilisation.
> This view, of course, can be challenged as not all families
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> provide an ideal setting to demonstrate trust or other family
> virtues.
> 
> 8.3.2.2 Cooperation
> The fundamental economic relationship amongst the agents
> of the market is one of reciprocal actions, corresponding to
> the interdependent nature of human beings. The basis of this
> reciprocal action is an honest and sincere commitment to
> Faithfully do as has been mutually agreed. The fourth
> spiritual principle discussed in this model is the importance
> of cooperation, and this is preferred to competition, which is
> the current practice in the market. The application of this
> principle in the market is advantageous to all parties. In the
> Bahá’í Writings, the principle of cooperation and reciprocity
> are ‘essential properties which are inherent in the unified
> system of the world of existence.’14 The passage shows the
> extreme significance of cooperation among all existing
> creatures, and not just in the market place.
> 
> The application of the principle of cooperation would allow
> smaller businesses to enter or to stay in the market without
> the fear of bitter and aggressive competition forcing them out
> of the market. Cooperation, therefore, stimulates enterprise,
> thereby increasing the level of output and consequently
> employment, and generating more revenue for government.
> Also, a consultative method of decision-making suggests that
> employees are participating in making those decisions that
> affect their own working life. This system of decision-making
> is motivating to the workforce and creates in them a sense of
> belonging to the organization. The result is less wastage, less
> absenteeism, higher productivity, and more revenue for an
> organization, all of which are measurable and help in
> 
> ‘Abdu’l-Bahá. Huququ’lláh, p. 21.
> Economics and the Bahá’í Faith
> 
> achieving organizational objectives such as growth and
> increased profit. All these factors are quantifiable. Hence, the
> model of economic sustainability recommends cooperation in
> competition. Quoting Dodinsky ‘Be there for others, but
> never leave yourself behind.’ Here, individual freedom is
> considered rather than the exclusion of other values.
> 
> The argument in favour of cooperation in this model goes
> beyond the scope of the market and the economy. The
> emphasis is on the moral facet is that cooperation and not
> competition is the cause of social activities just as the life of
> an organism is maintained by cooperation of the various
> elements of which it is composed. The base of life as
> ‘Abdu’l-Bahá states, is ‘mutual aid and helpfulness, and the
> cause of destruction and non-existence would be the
> interruption of this mutual assistance. The more the world
> aspires to civilisation the more this important matter of
> cooperation becomes manifest.’ 15 Farhad Rassekh also
> stresses the moral aspect of cooperation and believes that
> competition, like other aspects of the market, may be
> conducted morally or immorally. He argues that competing
> for ‘customer service, quality improvement and innovative
> products are beneficial, while deceptive and restrictive
> practices are hurtful to society.’ 16 He, then refers to false
> advertising as an example of ‘deceptive practice and lobbying
> the government to control imports as an example of
> restrictive practice.’17
> 
> 8.3.2.3 Compassion
> Another spiritual basis for this model is the principle of
> compassion. The use of the analogy of family is particularly
> 
> ‘Abdu’l-Bahá. Bahá’í World Magazine, vol. 3, p. 154.
> Farhad Rassekh. Journal of Bahá’í Studies, vol.11, p. 3, 2001.
> Ibid. p. 4.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> relevant to elabourate this principle. The family unit lives
> within the society and is not isolated. Thus, different families
> have relationships with each other. The comfort of the family
> unit is dependent on the well-being of the neighbours and
> many more families in the community. This is important
> because the principle of compassion effectively works within
> this unit of society. The family becomes much more sensitive
> and understanding of the needs of others when they realise
> that their own comfort is dependent on the well-being and
> comfort of others. The idea that it is good to be concerned
> about the welfare of others has been a central theme in many
> religious traditions. The notion of family is considered here
> for further analysis of mutual or communal relationship.
> When we use to analogy of family life, it yields the principle
> that a mutual or communal orientation is helpful in families
> and is harmful when interests are dominated by concern for
> the welfare of self, only. An empirical study done by Wesley
> Burr, Loren Marks and Randal Day shows that when families
> show a high interest to the welfare of others, the benefit goes
> to the entire community. They write:
> This principle has several assertions. It asserts that
> when lifestyles emphasis self so much that it interferes
> with interest and concern for others, this decreases the
> probability that family members will find successes in
> their family life. Also, when the primary concerns are
> the welfare, goals, and concerns of others, and people
> do not focus on their own needs, this too is harmful.
> The probability of successes is highest when people
> focus primarily on the needs of others but also wisely
> attend to their own needs and interests.18
> 
> There is a growing scholarly literature that argues for the
> validity of the analogy of family. Burr, Marks and Day
> 
> Wesley Burr, Loren Marks, Randal Day. Sacred Matters: Religion and
> Spirituality in Families, p. 112.
> Economics and the Bahá’í Faith
> 
> conclude that the data is so persuasive that being responsive
> to others in a non-contingent manner promotes the welfare of
> others is the most important beneficial process in communal
> relationships. Applying the principle of compassion to the
> wider community means looking after our own personal and
> family comfort and happiness without forgetting the need of
> others. This view can be developed further through education
> and better understanding of the concept of ‘world
> citizenship.’ The notion of compassion, therefore, has close
> links with the principle of distributive justice, and sustainable
> consumption in the cycle of production. Also, there is a close
> association between compassion and the notion of unity.
> Compassion and unity are complementary and
> interdependent. The coexistence of both helps achieving
> equilibrium in the market smoother and more effective. It
> helps to overcome all kinds of ‘economic prejudices’19, which
> otherwise may cause conflicts between individuals and
> business organizations. Unity also motivates us to separate
> ourselves from bitter competition, ego, and other forms of
> marketing gimmicks, which cause destruction of valuable
> resources, allowing us to focus on cooperation and
> harmonious activities, which would lead to efficiency.
> 
> 8.3.2.4 Consultation
> Consultation is another spiritual principle for effective
> operation of the model. One of the problems related to
> sustainable development is the inability of some participants
> in the market to take a shared view of social, economic,
> environmental and spiritual factors, and use a collective
> decision-making process. With the main goal being unity and
> 
> Regarding the economic prejudice, it is apparent that whenever the ties between
> nations become strengthened and the exchange of commodities accelerated, and
> any economic principle is established in one country, it will ultimately affect the
> other countries and universal benefits will result. Then why this prejudice? See:
> ‘Abdu’l-Bahá. Tablet to the Hague, p. 6.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> coordination of activities in the face of increasingly
> interdependent      and     complex    socio-economic      and
> environmental challenges, this model stresses that more
> mature methods of collective decision-making are now
> imperative. The proposition is that a consultative method of
> decision-making helps producers and consumers and other
> stakeholders of the market carry out an effective planning
> process. A collective method of decision-making influences
> all aspects of resource allocation and different stages of the
> cycle of production in designing, implementing and
> coordinating the programs that affect all participants.
> Increasingly, more organizations are learning that by
> exercising the method of collective decision-making through
> consultation, and by involving and empowering the workers
> in the process, the company saves resources. When applied,
> this method provides an opportunity for each person to
> contribute to the process of achieving the goals. This in turn
> influences the relationships and subsequently improves the
> behaviour of individual members of an organization
> focussing     on      environmentally    friendly    products.
> Sustainability requires the principle of consultation to be
> applied not only for creating better working conditions and
> improving the input-output process, but also indirectly to
> preserve the ecosystem. Challenges such as environmental
> issues require global solutions and collective actions, which
> will be more effective through the application of effective
> consultation among policy makers. However, there are
> challenges in the application of effective consultation.
> People, applying this method must be familiar with the
> features of an effective method of consulting together.
> 
> The principle of cooperation indicates that the fundamental
> economic relationship amongst the agents of the market is
> one of reciprocal actions, and the interdependent nature of
> Economics and the Bahá’í Faith
> 
> human beings. The basis of this reciprocal action is an honest
> and sincere commitment to faithfully do as has been mutually
> agreed. In this model, cooperation is preferred to competition,
> which is the current practice in the market. The application of
> this principle in the market is advantageous for all
> participants. The argument in favour of cooperation in this
> model goes beyond the scope of the market and the economy.
> Its essential properties are ‘inherent in the unified system of
> the world of existence.’20 The emphasis is on the moral facet
> that cooperation and not competition is the cause of social
> activities just as the life of an organism is maintained by
> cooperation of the various elements of which it is composed.
> The basis of life is ‘mutual aid and helpfulness, and the cause
> of destruction and non-existence would be the interruption of
> this mutual assistance. The more the world aspires to
> civilisation the more this important matter of cooperation
> becomes manifest.’21
> 
> The recognition of the unit of family as the foundation of a
> greater society means that changes in the family through
> consultative method of decision-making could be applied to
> the wider community. Of course, not all families are well
> informed about the skill of consultation, and not all
> organizations are familiar with its components for an
> effective communication. The nonattendance of practicing
> consultation, however, does not necessarily discard the
> benefits attached to a democratic and consultative method of
> decision-making essential for improving the level of
> communication. When applied, this method provides an
> opportunity for each person to contribute to the process of
> achieving the goals. This in turn influences the relationships
> 
> ‘Abdu’l-Bahá. Huququ’lláh, p. 21.
> ‘Abdu’l-Bahá. Bahá’í World Magazine, vol. 3, p. 154.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> and subsequently improves the behaviour of individual
> members of an organization.
> 
> To summarise, these principles constitute the spiritual
> foundation of the model. Sustainability requires the exercise
> of moderation, with consideration and compassion, through
> the art of consultation, and effective cooperation in all parts
> of the market. Putting these four spiritual principles together
> helps to attain an effective planning process for all
> participants of the market, which is essential to accomplish
> equilibrium in the cycle of production and achieve
> sustainability.
> 
> The moral aspect of calculation helps the application of
> spiritual principles. By bringing ourselves to account each
> day. In a business environment, people’s intellectual capacity
> to dispassionately calculate the value of commodities is an
> important part of the development of a meaningful price
> system. Prices, far from being arbitrary numbers displayed on
> products, are a critical channel of communication system
> that guide the creation and allocation of complex production,
> distribution, and consumption functions. Currently, self-
> interest is a necessary part of economic calculation. However,
> situations such as collusion by firms through a number of
> pricing strategies such as price fixing. A situation that the
> business lowers the price so much to put competitors of the
> market, are damaging to a sustainable market mechanism or
> to exclude other from the market.
> 
> 8.4    Human, financial and physical resources
> The optimal allocation of resources is essential for the market
> and the whole economy when considering what to produce,
> how to produce and for whom to produce. The three major
> resources are human, financial and physical with great
> Economics and the Bahá’í Faith
> 
> interdependency between them. Obviously, the combination
> of the use of various groups of resources depends on the
> nature and complexity of the business and the whole market.
> 
> There is a growing recognition that investment in people is
> the key to development. Torrington, Hall and Taylor maintain
> that ‘There is a move towards redressing that balance in
> search for an equilibrium between needs for financial
> viability and success in the marketplace on the one hand and
> the need to maximize human capital on the other.’22 In any
> line of work it is essential to adopt a program of continued
> training and professional development. This feature is highly
> valued and encouraged in this model. Companies and the
> whole market should be concerned with the health and
> education of the workforce. Thus, the heart of the issue with
> human resources is the skills-base of the business. Human
> capital plays a critical role in today’s knowledge-based
> economy and is hence considered as the most valuable
> resource of a company. To have a viable business the
> employer obviously requires those who do the work to
> produce an appropriate and effective performance and the
> performance, in great part, come from employees. According
> to Torrington, Hall and Taylor ‘it is the efforts and activities
> of employees which are the basis of competitive advantage
> for a business.’ 23 We may argue that factors of production
> such as capital and natural resources are inactive; this means
> if they are left to themselves, nothing would happen. Human
> resources are the active elements that gather capital, exploit
> natural resources, establish social and political organizations,
> produce goods and services, and carry out innovations and
> other development activities.
> 
> Torrington, Hall and Taylor. Human Resource Management, p. 5.
> Ibid. p. 6.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> Financial resources are concerned with the ability of the
> business to finance its chosen strategies for investment in
> new products, distribution channels, and production capacity,
> which place great strain on the business finances. Such a
> strategy needs to be very carefully managed from a financial
> perspective. Issues that would have financial implications for
> budgets and cash flow or that are related to the essential plant
> or machinery required to manufacture products, or processes
> in need of finance, need to be considered. The financial needs
> also depend on whether these are very specialised, or are
> required for short or long term.
> 
> 8.5    Cycle of production
> Using four keys of spiritual principles as the foundation of
> the model, and three types of resources, we are in a position
> to construct the rest of the model. The failure of the market
> could be either because of lack of resources or is associated
> with problems in different phases of the cycle of production.
> The understanding and application of spiritual principles
> provide the much-needed balance between the monetary and
> non-monetary aspects of the cycle of production.
> 
> 8.5.1 Needs and wants
> Needs and wants are the beginning of most economic
> activities. What motivates people and can lead to a change of
> behaviour are their needs and wants, which are determined by
> the individual and the wider social factors. Once the
> necessities are identified, then a behaviour pattern will
> emerge to gratify them. When conflict arises between needs
> and wants, one’s behaviour is affected. However, it should be
> noted that needs and wants vary at different times in a
> person’s life. Not all needs and wants are important for a
> person at any one time. People perceive necessities and
> Economics and the Bahá’í Faith
> 
> luxuries differently at different times in their lives. These also
> depend on one’s personality, the level of income, the type of
> employment, one’s social environment and one’s life-style.
> Essential commodities such as food, clothes and housing, and
> certain types of services such as health and education that
> provide for physical, intellectual and spiritual health and
> development, are basic human rights and most fundamental.
> Economics is concerned with satisfying needs and wants, but
> wants are created by society. By changing the value system
> of society, ‘wants’ could be modified and the economic
> system transformed. The aim of this phase of economic
> sustainability is to attain the greatest satisfaction of needs and
> wants within the limits of moderation.
> 
> There is no set formula for human needs and wants in the
> Bahá’í Writings and hence for this model. Needs and wants
> can be divided into essential and non-essential commodities.
> Essential commodities such as food, clothes and housing, and
> certain types of services such as health and education that
> provide for physical, intellectual and spiritual health and
> development are basic human rights and most fundamental.
> One of the most basic human needs is food, which in a
> number of cases is exploited by some food manufacturers
> who may not be concerned with nourishing people, but with
> the objective of increasing profit. Shortage of sufficient food
> leads to malnutrition. At the same time, the use of over-
> consumption of foodstuff leads to serious problems such as
> addiction or obesity.
> 
> The success of an organization is in producing commodities
> that are demanded by consciousness consumers, at the same
> time contemplating on effective and efficient use of
> resources. The implementation of spiritual principles of this
> model inspires consumers and producers to attain the
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> objectives of sustainability. For ‘needs’, which are essential
> for living, the principles of equity and cooperation are
> helpful. For ‘wants’, which are non-essential, the principles
> of moderation and consultation are useful. The primary
> responsibility of producers is to establish a sustainable input-
> output process. This indicates that the degree of success and
> optimum level of sustainability depends on all stages of
> production, including the extraction of raw materials,
> conversion processes and the quality of the finished product,
> and the supply chain.
> 
> A number of Bahá’í principles are incorporated in this model
> to benefit consumers to make informed choices, including:
> universal and compulsory education, harmony of science and
> religion, removal of economic prejudices, oneness of the
> human race, a consultative method of decision-making, and
> considering moderation. Other factors influencing consumer
> choice are discussed in chapter four. Contemplation upon
> these factors can elevate the consciousness of individuals to a
> higher level and help them become more considerate in using
> the valuable resources available to them, and at the same time
> use money more sensibly. Thus, the aim of this phase of
> economic sustainability is to attain the greatest satisfaction of
> needs and wants within the limits of moderation. In such an
> environment, consumer sovereignty is controlled and utility
> maximisation is adjusted through making the right choices.
> 
> 8.5.2 Organizations
> In the next phase, organizations with different scales of
> capacity, and at different levels (local, national and
> international, or private and public), are created, aiming to
> satisfy consumers’ needs and wants. Organizations, to a great
> extent, respond to consumer demand. At the same time, using
> their own innovative ideas, with or without consideration of
> Economics and the Bahá’í Faith
> 
> consumers’ actual needs and wants, they create incentives for
> consumers to buy what is produced or invented. The
> effectiveness of demand and supply depends on the
> application of spiritual principles along with consumer
> education and organizational behaviour. Organizational
> values are generally associated with areas such as the
> operation management, human resources, working
> environment, the culture, the marketing, the financial aspect,
> and the supply chain. One factor that has contributed to
> unsustainability of the market is unlimited growth in the size
> of organizations. Disproportionate expansion of the scale of
> an organization may become a problem for the market, for
> the environment, and even a disadvantage to the organization
> itself. The proposition in this model is that the practice of
> moderation would limit unlimited expansion of businesses,
> hence allowing small and medium size businesses to survive.
> Of course, some types of growth can be limitless and indeed
> is commendable. For example, the model supports the growth
> and development of arts, training and education, service to
> humanity, philanthropic activities, charity and acquiring
> morality. The reason for approving this type of growth and
> creating competitiveness is because they are assisting to
> improve human capability. Also, they are methods and
> processes of serving humanity, and they are important factors
> for economic development.
> 
> In this model, the important aspect of an organization is its
> values. Organizational values are attached to areas such as
> the operation management, human resource, working
> environment, the culture, the marketing, the financial aspect,
> and the supply chain. On the positive side organizations,
> today, use social and ethical responsibility as a tool for
> competitiveness and expansion. Rosser Reeves called to this
> aspect of organizational activity as ‘unique selling point’.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> This is a part of an organization with specific strength. Being
> ethical or socially responsible can become the strength of an
> organization. However, the critical point is if such activities
> are genuine or it is done by force through influence of
> pressure groups and the government.
> 
> Among organizations that are crucial for the market
> development and sustainability are the banking system and
> insurance companies. These profit driven organizations
> disproportionately harm the poor and the lower income
> group. The view here is that the banking system is able to
> influence the market and maintain a balanced economy by
> supporting small and medium size enterprise. Banks, as the
> storage of the fund should provide necessary credit to lower
> income group to start small businesses, such as ‘micro credit’
> programme introduced by the Grameen bank in Bangladesh.
> The micro credit programme has benefited millions of people
> and in particular women and their families in the rural areas.
> The economic empowerment of women can play a key role in
> the development of an economy and be allowing a country to
> become an active part of the global economic enterprise. The
> view, therefore, is that the banks should focus on the social
> function of money. The model recommends that the banking
> system should mobilise savings, encourage investment, and
> act as suppliers of credit and a catalyst to increase output
> through capital formation. An important aspect of the
> banking system to become socially responsible is that it
> should engage in act of service to the community and
> participates in various poverty alleviation programmes and
> developmental activities. To facilitate this process of serving
> the community, and for proper functioning of the market,
> Bahá’u’lláh has allowed a just and moderate interest rate. He
> said, ‘as a token of favour towards men We have prescribed that
> interest on money should be treated like other business transactions
> Economics and the Bahá’í Faith
> 
> that are current amongst men.’24 needs to be applied in financial
> transactions. Such a policy creates opportunities where there
> would be room for entry of small and medium size enterprise.
> This helps economic growth to boost confidence in the
> market, and encourages investments. However, the solution
> to the banking crises is the restoration of trust and confidence
> among various groups in the market.
> 
> 8.5.3 Sustainable production
> The production stage is a process of transforming resources
> into valuable output. Two issues are significant when
> discussing sustainable production. First, the model considers
> the fundamental purpose as safeguarding the collective
> interest. Relating this view to production, one can envisage a
> world where the products can be shared and distributed more
> evenly among its citizens. Second is the concept of unity
> among participants of a market, which, along with four
> fundamentals spiritual principles, are the operating principles
> and practical requirements for well-being in the market. This
> suggests the achievement of a dynamic coherence between
> the spiritual and practical requirements of life. Therefore,
> success and effectiveness of an organization is producing
> commodities that are demanded by conscientious consumers
> and at the same time contemplating on the effective and
> efficient use of resources. This requires establishing a
> sustainable input-output process. This indicates that
> sustainability would depend on all stages of production,
> including the extraction of raw materials, conversion
> processes, the quality of the finished product, and the supply
> chain. The quality of commodities not only depends on the
> available resources, including human, financial and physical
> resources, but also the quality of organizational leadership.
> 
> Bahá’u’lláh. Tablets, p.133.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> The emphasis of the model in this stage is on the term
> ‘valuable’ commodities. This refers to those products that are
> in line with human dignity. However, some of the profit
> driven organizations intend to produce commodities that are
> not sustainable. Such products are damaging to the
> environment, and destructive to rare earth resources.
> According to Bahá’í International Community:
> The questions of what is natural and just will
> need to be critically re-examined…The question
> of human nature has an important place in the
> discourse on sustainable consumption and
> production as it prompts us to re-examine, at the
> deepest levels, who we are and what our purpose
> is in life.25
> 
> According to John Young and Aaron Sachs sustainability
> requires ‘a shift from today’s throw-away culture of
> convenience and planned obsolescence to an approach that
> designs products to reduce material use and seeks value in
> reusable goods.’26 To create demand and stimulate consumers
> to purchase such products, misleading marketing in planned
> and false advertisements is imposed on consumers, in
> particular the more vulnerable ones. The model, therefore,
> recommends restructuring of organizations by accepting
> moral leadership while educating the consumer to determine
> the nature and usefulness of a product.
> 
> The quality of commodities not only depends on the available
> resources, including technology and skilled labour and the
> 
> Bahá'í International Community. Contribution to the 18th Session of the United
> Nations Commission on Sustainable Development, New York, 3 May 2010.
> John Youn, Aaron Sachs. ‘Creating a Sustainable Material Economy’, State of
> the World, 1995, p. 77.
> Economics and the Bahá’í Faith
> 
> quality of organizational leadership, but also on the attitude
> of employees towards work. The model emphasises that
> ‘Work done in the spirit of service is the highest form of
> worship.’ This will ensure that everyone performs work with
> excellence in all stages of production from stage of research
> and development to the finished product. The term excellence
> signifies that products are: environmentally welcoming,
> socially dynamic, economically profitable, and spiritually
> befitting human dignity. Assuming that consumers are
> conscientious and, producers are responsible, then such an
> attitude towards work and the level of production moves the
> market towards equilibrium. The alternative would be
> impeding economic sustainability.
> 
> 8.5.4 The market
> The product produced by organizations then enters the
> market. The model promotes sustainable trade as an effective
> method for doing business. The benefits are numerous if the
> markets are developed, organized, managed, and regulated
> properly. With satisfactory arrangements and adequate
> structures in place, the market can generate more cooperation
> among its participants, with greater opportunity for those
> vulnerable firms entering the market to trade their products in
> a fair environment. The main economic implication of
> globalization is that economic activities in different markets
> around the world have become interrelated and
> interdependent. Hence, an important aspect of the Bahá’í
> inspired model of economic sustainability is the
> interdependency and interconnectedness of the cycle of
> production to the economic resources by means of spiritual
> principles and with the aim of uniting humanity. The model
> suggests several factors necessary for an effective functioning
> and fair trade in the market. The guiding principles include:
> removal or reduction of the middleman; a just and moderate
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> rate of interest to facilitate the growth of small businesses;
> and a progressive income tax to make wealth and income
> distribution more effective. Also, a profit-sharing scheme to
> consider workers as partners rather than just wage earners.
> Profit sharing may remove the damaging effect that the wage
> system produces in the market, in particular where the wage
> is below the market equilibrium wage level.
> 
> There are, however, different views as to which group is the
> main cause of consumer society: consumers or producers?
> Alan Durning, for example, sees the resolution of the
> problem of consumer society as a cultural issue. He states
> that ‘the challenge before humanity is to bring environmental
> matters under cultural controls.’ 27 Allan Schnaiberg, on the
> other hand, finds a different approach to this question.
> Reflecting on whether the creation of the consumer society is
> driven by consumers or by producers, he comes down
> strongly on the latter one. According to him, the central fact
> of a modern industrialised society is that, ‘consumption in the
> aggregate must be kept high to maintain the economic
> structure.’28 In his view: American products are designed to
> accommodate, not the consumer, but the methods of
> production and distribution and the profit maximisation and
> market positioning of the producers. The producers have the
> power to limit consumer sovereignty by creating and
> directing a culture of wants. According to this view, the
> solution to the problem of consumer society, therefore, must
> be found on the production side. A market based on Bahá’í
> teachings, however, suggests a number of laws and
> prohibitions that encourage Bahá’ís, consumers and
> 
> Alan Durning. ‘Asking How Much Is Enough’, State of the World, New York,
> 1991, p. 167.
> Allan Schnaiberg. ‘The Expansion of Consumption’, The Environment: From
> Surplus to Scarcity, Oxford University Press, 1980, p. 167.
> Economics and the Bahá’í Faith
> 
> producers, to use and allocate resources more effectively. For
> example, banning the production and consumption of those
> commodities that are harmful to Bahá’ís such as hard drugs
> and gambling. These items expend a substantial amount of
> valuable resources that may have alternative usage. Hence, in
> this model of economic sustainability the responsibility of
> creating a sustainable market is with both consumers and
> producers.
> 
> 8.5.5 Distributive justice
> The next phase of the model is the recognition of the need for
> distributive justice as an effective way for allocation of
> resources, rather than the one currently used in the market
> with its consequence of increasing the gap between the rich
> and the poor. Fairness provides an opportunity for all to enjoy
> the benefits that are created in the market. The key feature
> here is to create a positive relationship between distributive
> justice and human well-being. Though efficiency is
> important, it is not the only economic goal of the market.
> Economic efficiency and fairness should go hand in hand.
> Thus, the challenge of sustainability is not only consumer
> education in productivity and market efficiency, but also in
> the effective distribution of the income and wealth that are
> created. This model supports the progressive income tax
> currently practiced in most markets as a method of balancing
> extremes of wealth and poverty. This involves active
> participation of government in advancing a more equitable
> society, which in turn benefits the market. Government
> intervention is needed to establish legislation for
> redistribution of income and wealth, for wage determination
> and the transfer of monetary resources from the rich to the
> poor. However, the model suggests a combination of
> legislation and voluntary contribution as methods of eco-
> justice for the market.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> The existing models such as ‘the free-market economy’ and
> ‘planned economy’ have adopted a different pattern of
> regulating wealth distribution of income and wealth. In a free-
> market economy, each person receives income in proportion
> to his or her productive contribution to the economy. In a
> planned economy, each person receive income according to
> needs. The Bahá’í view directs for each person to receive
> income in proportion to his or her productive contribution to
> the economy as well as their needs. Thus, the distinguishing
> factor separating the two systems of ‘planned’ and ‘free-
> market economy’ is the judgement of government in the
> distribution of resources among members of the society.
> 
> 8.5.6 Sustainable consumption
> The final phase of the cycle of production is sustainable
> consumption. The relationship between consumption and
> production is complex and varied, and has changed over time
> and certainly will continue to do so in the future.
> Consumption is a necessary aspect of human being, a practice
> that has constituted an important part of human existence and
> social life in all societies throughout human history. The
> advancement in knowledge and technology, and the
> globalization of affairs, has led to the speed of trade and,
> hence to a substantial increase in level of output. Such an
> increase in the level of commodities requires large markets to
> disperse the products. The Bahá'í International Community
> considers the transition to sustainable consumption and
> production as part of a global enterprise which enables all
> individuals to fulfil their dual purpose, namely to develop
> their inherent potentialities and to contribute to the
> betterment of the wider community. In the model of
> economic sustainability, therefore, the main focus is on
> sustainability of both production and consumption. The
> Economics and the Bahá’í Faith
> 
> rationale in this phase is that the act of consumption should
> be associated with using products more sensibly, and hence,
> the cycle of production would repeat itself more safely and in
> a sustainable way. Since the cycle of production is going to
> be repeated, acceptable choices become essential for
> purchasing commodities by those participating in the market.
> This ensures that sustainable products are entering to the
> market in the new cycle. Thus, careful planning is necessary
> at all levels. The consumption expenditure is the largest part
> in aggregate expenditure in a market. Any change in the
> pattern of consumption will have important effects on the
> aggregate demand and supply in the whole market. The
> components of aggregate demand are factors such as
> consumer spending, investment, government spending, and
> international trade, including export and import. Human,
> financial, and physical resources, on the other hand, will
> affect aggregate supply in an entire market. Responsible and
> educated consumers who are practicing moderation affect the
> aggregate demand. Committed suppliers, who apply
> trustworthiness and fairness in the working environment, on
> the other hand, affect the aggregate supply. The application
> of the spiritual principles of this model influence the effective
> operation of aggregate demand and aggregate supply. To
> have an impact on consumer choice, emphasis in this model
> is on creating a culture of moderation and compassion. The
> issues of consumerism, consumer society and unsustainable
> life style could be remedied if participants of the market in
> general and consumers in particular exercise moderation.
> 
> The Consumption expenditure is the largest part in aggregate
> expenditure in a market. Any change in the pattern of
> consumption will have important effects on the overall level
> of demand and supply in a market. The model considers
> factors such as income and wealth, interest rate, savings, fair
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> access to loan and credit, and price level as important
> components of spending power. However, according to this
> model, the spiritual principles have great effect in making the
> right choices. Hence, the model considers both monetary and
> non-monetary factors as important elements for achieving
> sustainable consumption in the market.
> 
> This model supports the view that consumers’ choices and
> preferences can have a great effect in the marketing of
> commodities. It is the level of consumer education that would
> have an effect on aggregate consumption. Consciousness
> consumers are able to make right choices for utility
> maximisation within a limit. Consumer behaviour needs to be
> channelled either through moral acts, or through legislation.
> 
> 8.6     Analysis of the model
> The spiritual principles, although not sufficient by
> themselves, are necessary for establishing sustainability.
> Each of these spiritual principles must become so embedded
> in the individuals’ lives, and in society, that applying them
> would be a norm, a culture, and a way of life. Households in
> particular, although small in size, can have a large-scale
> effect on the market. For example, decisions made by a
> family as to the type of food, the kind of clothes, or the
> housing condition not only influence production, but also can
> affect the environment. By being conscientious consumers
> and producers, even about seemingly insignificant issues, one
> can facilitate sustainability.
> 
> However, the model of economic sustainability may be
> challenged on a number of areas. For example, the core
> principle of unity can be challenged because currently there
> are many obstacles for the transformation of consciousness,
> such as doubts, misconceptions, prejudices, suspicions and
> Economics and the Bahá’í Faith
> 
> narrow self-interest. Such challenges require the society to
> ‘change its attitudes before a solution to social problems can
> be found.’29 Hence, based on the practicality of the concept of
> ‘the spirit of unity’ for a market, the model is more suitable
> for smaller communities with specific features asked by the
> model. In other words, the challenge for the Bahá’í
> community is that Bahá’ís live in a world where not
> everybody shares their moral and spiritual principles.
> Bahá’ís, as part of larger society, face the challenges of
> attaining a sustainable life-style where there exists an unfair
> redistribution of wealth and income.
> 
> The analogy of family used in this model also requires further
> consideration. The challenge is that the analogy of family
> may be too simplistic for the kind of complex markets we are
> witnessing. The critics of this model may not consider the
> market as a family unit, as families are more concerned with
> their own ‘flesh and blood’ rather than other people’s needs
> and welfare. Therefore, as much as there may be elements of
> sacrifice, compassion and cooperation within a family, these
> are not necessarily reflected in the life of the community.
> However, researchers consider the model of family as the
> backbone of the society and as a small unit representing the
> larger society. There also are a number of scholars who have
> developed rational arguments for the idea that it is helpful for
> families to have high interest in the welfare of self and others.
> Burr, Marks and Day further observe that the principle of
> family has several assertions. It asserts that when lifestyles
> emphasis self so much that it interferes with interest and
> concern for others, this decreases the probability that family
> members will find successes in their family life. Also, when
> the primary concerns are the welfare, goals, and concerns of
> 
> Universal House of Justice. Statement dated 27 April 1988.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> others, and people do not focus on their own needs, this too is
> harmful. The probability of successes is highest when people
> focus primarily on the needs of others but also wisely attend
> to their own needs and interests.30
> 
> The model considers consumer education necessary for
> achieving sustainable consumption in the market, although it
> is not sufficient in itself. There are other areas that need to be
> carefully considered. For example, consumer education and
> the free will for making choice become irrelevant if there is
> monopoly power in the market, limiting consumer choices.
> Consumer education becomes irrelevant if the objective is
> how much to produce without attention to the underlying
> reason for production. The question the market should
> consider in the first instance is what to produce rather than
> how much to produce, as sustainable consumption and
> sustainable production are complementary. Both groups must
> be mindful of the effects of their decisions and actions for the
> present and future generations, and for the environment. The
> Bahá’í Writings advise Bahá’ís to ‘Bring thyself to account
> each day, ere thou art summoned to a reckoning.’ All
> participants in the market need to check the consequences of
> their actions. Therefore, being discerning consumers and
> responsible producers can facilitate and ensure sustainability.
> Considering the ‘why’ question principle of economics, the
> key spiritual principles are beneficial and lead to
> conscientious consumption and production. The realisation
> that the material world reflects the spiritual world promotes
> various components of goods and services that are befitting
> human dignity. The Universal House of Justice addressing
> Bahá’ís to make economic decisions that are in accordance
> with lofty ideals, ‘If a new model of community life,
> 
> Burr, Marks, Day. Sacred Matters: religion and spirituality in families, p. 112.
> Economics and the Bahá’í Faith
> 
> patterned on the teachings, is to emerge, must not the
> company of the faithful demonstrate in their own lives the
> rectitude of conduct that is one of its most distinguishing
> features? Every choice a Bahá’í makes, as employee or
> employer, producer or consumer, borrower or lender,
> benefactor or beneficiary, leaves a trace, and the moral duty
> to lead a coherent life demands that one’s economic decisions
> be in accordance with lofty ideals, that the purity of one’s
> aims be matched by the purity of one’s actions to fulfil those
> aims.’31
> 
> Reliance on moral incentives has been an important element
> in many models of ideal socio-politico-economic systems.
> According to specialist in social policy, Peter Lambert
> ‘Contemporary Western social scientists frequently suggest,
> however, that moral incentives could not be an effective
> source of motivation for economic activities in large,
> complex, politico-economic systems, at least in the long
> run.’32 Based on this view, the judgement is that reliance on
> income incentives is inevitable for any large, complex
> system, which seeks to persuade a consistently high level of
> effort from its members. Examples include the operation of
> industries such as railways, water, and electricity, which
> necessitates being large in scale or what is known as natural
> monopolies. Thus, according to Lambert ‘one crucial task for
> the analysis is to show how moral incentives, in a socio-
> politico-economic system which relies heavily on the market,
> could theoretically substitute for income incentives without
> destroying the ability of the market to function.’33 Political
> theorist, Joseph Carens argues that ‘The term “moral
> incentives” may suggest a type of motivation which is
> 
> Universal House of Justice, statement of 1 March 2017.
> Peter Lambert. The Distribution And Redistribution of Income, p. 15.
> Ibid.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> essentially altruistic. By contrast, income incentives in a
> market system are often regarded as the archetype of
> motivation through appeal to self-interest.’ 34 The Bahá’í
> inspired model, however includes moral incentive and
> material incentive as essential part of the market to function
> effectively.
> 
> Also, the model is more suitable and sustainable in the long
> run. The spiritual principles need to become a belief system,
> a way of life, and a part of the culture. Creating a culture in
> the market requires a long time. In the short run, given the
> powerful role of demand characteristics that can occur in a
> market, the ethical model of sustainability does not have
> legitimate power to control and regulated the existing market.
> 
> Furthermore, the model suggests the need for a combination
> of quantitative and qualitative factors to achieve
> sustainability. However, the scales for social desirability and
> more implicit measurements for ethical and spiritual
> achievements are not created yet. For instance, in spite of the
> important role of cooperation in the market, competition
> plays an important role. Also, the argument can be presented
> that the market does not support spiritual principles and
> moral incentives because they are difficult to grasp and
> cannot be positioned in mathematical diagrams, or it cannot
> be measured, as people have to think beyond monetary gain.
> However, my working definition of spirituality is not only
> important for qualitative purpose, but it also provides
> measurable meaning to most parts of an economy, and hence
> would be valuable and appealing to social scientists including
> economists. The definition contains some elements of
> measurability. For example, the spiritual principles of
> 
> Joseph Carens. Equality, Moral Incentives, and the Market, p. 120.
> Economics and the Bahá’í Faith
> 
> compassion, cooperation, consultation, moderation, justice
> and fairness play vital role for the application of the ‘unifying
> and relational factor’, and for the effective functioning of the
> economy. These principles, although qualitative, can lead to
> measurable outcomes. Moderation, for example, has
> important implication in economics through resource
> allocation. Moderation affects all aspects of the economy in
> regards to poverty reduction, a limit to growth, waste
> reduction, budgetary control, cost efficiency, and effective
> income distribution, all of which are quantitative and
> measurable. The outcome of these spiritual principles is the
> effective allocation of resources, so vital for economists and
> other fields in science. In this sense, spirituality leads to
> improve the monetary performance, it measures and assesses
> output, and it becomes the mathematics device of social
> sciences. As john Maynard Keynes argues: ‘…economics is a
> moral science…It deals with introspection and with values.’35
> The Universal House of Justice refers to the practicality and
> measurability of spiritual principles:
> The essential merit of spiritual principle is that it not
> only presents a perspective which harmonizes with
> that which is immanent in human nature, it also
> induces an attitude, a dynamic, a will, an aspiration,
> which facilitate the discovery and implementation of
> practical measures.36
> 
> The critics may argue that we need to develop better models,
> which more accurately represent reality of our world. The
> response will be that our world today is not found based on
> the reality of humans. Poverty, aggressiveness, and all kinds
> of injustices are not supposed to be the reality of human
> beings. The reality of humans living together in a society
> should be constructed on principles that harmonize the
> John Maynard Keynes. The General Theory, part II, London: Macmillan, 1938.
> Universal House of Justice. The Promise of World Peace, part II.
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> activities and relationship based on human consciousness by
> compassion, cooperation, consultation, and moderation to
> allow happiness and prosperity for all. The level of
> consciousness and the deep spirit of service and
> collabouration required transforming individual behaviours
> and institutional forces in the direction of sustainability will
> require a transformation of educational processes which
> involves ‘profound changes in the individual as well as
> ‘systematic re-creation of social structures.’
> 
> Adjusted economic indicators such as the ‘Index of
> Sustainable Economic Welfare’37 (ISEW) are now available
> for assessing a country’s success in achieving sustainable
> economic development. ISEW is intended to replace GDP.
> Gross Domestic Product (GDP) is a measure of economic
> growth and considers only money value of producing goods
> and services in a specific period of time. Hence, it is
> misleading indicator. Adjusted economic indicators are more
> comprehensive. They are useful because they measure things
> that raise the quality of life and deduct things that reduce the
> quality of life such as: environmental damage; defensive
> expenditures; income inequality; depreciation of natural
> capital; and value of domestic labour. The fact that indicators
> are known and sustainability problems are also known, then
> there is a need for both consumers and producers to make
> right choices to achieve sustainability. The proposition in this
> model is that by implementing the spiritual principles of
> cooperation, compassion, consultation, and moderation, in
> the entire cycle of production, sustainability will be achieved
> more smoothly. These adjusted indicators are useful because
> The ISEW was originally developed in 1989 by Herman Daly and John Cobb.
> According to Cobb and Daly’s calculations the external effects of production and
> the inequity of income distribution are the main reasons for this development in
> which an increase in production does not necessarily lead to an increase in
> welfare.
> Economics and the Bahá’í Faith
> 
> they are more comprehensive measures than for example
> GDP. This helps governments to determine the best policies
> to pursue to achieve sustainability in the field of economic,
> social and environmental outcomes of growth to be explicitly
> measured. For example, higher GDP, which results in
> pollution and a loss of biodiversity, does not raise economic
> well-being even though it raises economic activity unless the
> government introduces a policy to internalize the negative
> externality. However, adjusted economic indicators are not
> without problems. The most significant one is regarding
> difficulties of placing monetary values on for example costs
> of environmental degradation.
> 
> 8.7    Chapter conclusion
> The development of this model with its suggested
> components for the cycle of production shown in figure two
> suggests a smooth process in the creation of a sustainable
> market. It should, however, be noted that some of the
> principles of this model are meant for the distant future. The
> immediate plan, however, should be the education of
> individuals or groups of individuals that directly or indirectly
> influence the scale and effectiveness of the market. For
> example, all professions in the market including: journalism,
> advertising, insurances, banks, financers and investors must
> have a clear, professional and ethical code of conduct that its
> members are required to observe. It is now the time that the
> system of free-market economy becomes controlled,
> regulated and even restricted. It is a window of opportunity
> for the governments, the banking system, the insurance
> industry and Faith organizations to put the economy back into
> working order by re-establishing a code of honour in the
> market. The ideas of this model are available for those who
> wish to construct, as Stiglitz puts ‘a more stable, prosperous,
> 
> The Bahá’í-Inspired Model of Economic Sustainability
> 
> and equitable economy.’38 This model, therefore, is a means
> to an end rather than an end in itself. The limitation of the
> model, however, does not mean that it is not effective for
> creating a balanced market but it provides an opportunity for
> others to pursue to improve it.
> 
> Joseph Stiglitz. Freefall, p. 274.
> Economics and the Bahá’í Faith
> 
> Chapter 9: Concluding Remarks
> 
> This work attempted to ascertain the relationship between the
> spirituality, morality and economic teachings of the Bahá’í
> Faith. The proposition is, that despite the conventional and
> contemporary economic thinking that economic problems
> could be resolved through purely economic policies, the
> current study emphasise the need for spirituality as part of the
> solution.
> 
> The exploration of the Bahá’í sacred scriptures and the
> research carried out by Bahá’í scholars indicated that the
> Founders of this Faith did not construct a Bahá’í economic
> system. As a result, throughout this book the assumption is
> made that the Bahá’í Faith is a religion and not an economic
> enterprise. Nevertheless, the central figures of the Bahá’í
> Faith have provided a number of principles that can be used
> as guidelines to help future economists to develop the
> components of a just, universal and flexible economic
> system. Therefore, in any Bahá’í discourse, researchers
> should use the phrase ‘Bahá’í economics’ with much caution,
> as it is not yet fully developed.
> 
> The investigation and exploration of the Bahá’í Writings and
> the role of the Bahá’í Faith in economic behaviour for this
> work was carried out with a number of prerequisites and
> assumptions as follows: Religious beliefs are likely to
> influence the actions and lifestyle of Bahá’ís; this was
> explored in relation to individuals, the institutions and the
> community. The contribution of the Bahá’í Faith to the
> subject of economics is essentially indirect and is mainly
> 
> Concluding Remarks
> 
> directed to the spiritual solution of economic problems.
> Economics is considered a means to achieve the end, which is
> promoting unity of humankind. There is coherence between
> material and spiritual aspects of life, which suggests that the
> global economic condition would be more sustainable when
> these two components are balanced. The Bahá’í teachings
> should be seen ‘as an organic, logically coherent whole,’ 1
> which suggests that Bahá’í teachings are complementary in
> nature and any Bahá’í discourse should consider the entirety
> of Bahá’í Writings rather than individual teachings in
> isolation. Consideration of interdependency of the behaviour
> of nations from every aspect: social, political, environmental,
> economic, moral and spiritual, which indicates that nations
> cannot be self-sufficient completely. The universality of
> Bahá’í principles on economics helps to resolve the economic
> issues, like all other major difficulties facing humanity today,
> on a world-encompassing scale to safeguard the interests of
> humanity as a whole. Spirituality is understood and
> interpreted as ‘all-unifying agency,’ which is central standard
> for an effective relationship, however, with different
> methodology and approaches.
> 
> A growing number of economists, philosophers, writers and
> experts now support the view that moral and spiritual
> incentives should be part of modern scientific economics. It
> is maintained that economics, as a social science, and religion
> are not the same. In other words, they do not generate the
> same outcome, or have the same effect on people, but the
> effective partnership of the two entities fosters human well-
> being. It was argued that religion and economics combined
> are potent forces for resolving socio-politico-economic
> 
> Universal House of Justice. ‘Issues Related to Study Compilation’, Compiled by
> the Research Department of the Universal House of Justice. Haifa: Bahá’í World
> Centre Publication, 1992.
> Economics and the Bahá’í Faith
> 
> problems. On one hand, the Bahá’í literatures advocate
> gender equality to alleviate poverty and inequality, ending
> discrimination, creating strong families, and exercising
> moderation, compassion, honesty, and good character. On the
> other hand, economic literatures and academic textbooks
> emphasis the role of saving and capital formation, sound use
> of money and banking, the specialisation and trade,
> entrepreneurship, the role of government and legislation,
> efficient use of resources, equilibrium in price system, and
> promoting growth. Consequently, the two disciplines of
> religion and economics together would be able to have
> greater impact on resolving social, and economic issues.
> 
> The findings of this work indicate that although a number of
> Bahá’í teachings are currently practised at various levels,
> however, bringing a fundamental change to the life of
> individuals and the wider society would not be an easy task.
> To facilitate the process of change and make it more effective
> and functional, there is a need for a fundamental change in
> human attitudes towards management of life-style for both
> poor and rich people including new models of community
> life. Also, recommendations were made for better
> understanding of the meaning of prosperity, the significance
> of wealth, the meaning of happiness, the concept of work and
> service, and how Faith organizations can contribute to the
> development of communities. At this point of the
> development of the Bahá’í community there is a need to
> initiate a process of moral and spiritual education as a
> necessary step for familiarising Bahá’ís with the
> fundamentals and components of future economic system.
> Hence, by identifying a number of distinctive Bahá’í
> principles on economics, this work, hopefully, would be of
> great assistance to the Bahá’í community.
> 
> Concluding Remarks
> 
> There are still many challenges that the future researchers
> need to continue this venture. Shoghi Effendi has identified a
> number of challenges which human society is facing:
> The recrudescence religious intolerance, of racial
> animosity, and of patriotic arrogance; the increasing
> evidences of selfishness, of suspicion, of fear and of
> fraud; the spread of terrorism, of lawlessness, of
> drunkenness and of crime; the unquenchable thirst for,
> and the feverish pursuit after, earthly vanities, riches
> and pleasures; the weakening of family solidarity; the
> laxity in parental control; the lapse into luxurious
> indulgence; the irresponsible attitude towards
> marriage and the consequent rising tide of divorce; the
> degeneracy of art and music, the infection of
> literature, and the corruption of the press.2
> 
> Shoghi Effendi considers these challenges as serious threats
> to humanity, hence suggesting a ‘fundamental reconstruction
> of human society.’3 The Universal House of Justice inspiring
> Bahá’ís: ‘we look to you to foster communities whose ways
> will give hope to the world.’4
> 
> ‘Abdu’l-Bahá, recommended that the extremes of wealth and
> poverty needs to be remedied. In 1912 in Paris, he delivered
> the following talk:
> We see amongst us men who are overburdened with
> riches on the one hand, and on the other those
> unfortunate ones who starve with nothing; those who
> possess several stately palaces, and those who have
> not where to lay their head. Some we find with
> numerous courses of costly and dainty food; whilst
> others can scarce find sufficient crusts to keep them
> alive. Whilst some are clothed in velvets, furs and fine
> linen, others have insufficient, poor and thin garments
> with which to protect them from the cold. 5
> 
> Shoghi Effendi. World Order, pp. 187-188.
> Ibid. p. 186.
> Universal House of Justice. Ridván Message, 2012.
> ‘Abdu’l-Bahá, Paris Talks, p. 151.
> Economics and the Bahá’í Faith
> 
> Hence, for ‘Abdu’l-Bahá ‘This condition of affairs is wrong,
> and must be remedied.’6 ‘Abdu’l-Bahá asserts that there is a
> need for ‘an equilibrium of interests’ 7 which requires ‘
> readjustment of the social economy…to ensure the stability
> of the world of humanity.’8 The Bahá’í Writings indicate that
> the remedy to social and economic crisis consists of the
> removal of the Old Order and reconstruction of the new
> World Order. ‘Soon,’ Bahá’u’lláh’s own words proclaim,
> ‘will the present day Order be rolled up, and a new one be
> spread out in its stead.’9 The new spirit infused into the whole
> creation makes the new World Order possible. Furthermore,
> Shoghi Effendi, in the following statement calls for a
> fundamental reconstruction of the whole of human society
> based on unity of humankind:
> The principle of the Oneness of Mankind, the pivot
> round which all the teachings of Bahá’u’lláh revolve,
> is no mere outburst of ignorant emotionalism or an
> expression of vague and pious hope. Its appeal is not
> to be merely identified with a reawakening of the
> spirit of brotherhood and goodwill among men, nor
> does it aim solely at the fostering of harmonious
> cooperation among individual peoples and nations. Its
> implications are deeper, its claim greater than any
> which the Prophets of old were allowed to advance.
> Its message is applicable not only to the individual but
> concerns itself primarily with the nature of those
> essential relationships that must bind all the states and
> nations as members of one human family. It does not
> constitute merely the enunciation of an ideal but
> stands inseparably associated with an institution
> adequate to embody its truth, demonstrate its validity,
> and perpetuate its influence. It implies an organic
> change in the structure of present - day society, a
> change such as the world has not yet experienced. It
> 
> Ibid. pp. 156-159.
> Ibid. Promulgation, p. 132.
> Ibid. p. 182.
> Bahá’u’lláh. Gleanings, p. 7.
> Concluding Remarks
> 
> constitutes a challenge, at once bold and universal, to
> outworn shibboleths of national creeds - creeds that
> have had their day and which must, in the ordinary
> course of events as shaped and controlled by
> Providence, give way to a new gospel, fundamentally
> different from, and infinitely superior to, what the
> world has already conceived. It calls for no less than
> the reconstruction and the demilitarization of the
> whole civilized world, a world organically unified in
> all the essential aspects of its life, its political
> machinery, its spiritual aspiration, its trade and
> finance, its script and language, and yet infinite in the
> diversity of the national characteristics of its federated
> units.
> 
> It represents the consummation of human evolution -
> an evolution that has had its earliest beginnings in the
> birth of family life, its subsequent development in the
> achievement of tribal solidarity, leading in turn to the
> constitution of the city-state, and expanding later into
> the institution of independent and sovereign nations.
> 
> The principle of the Oneness of Mankind, as
> proclaimed by Bahá’u’lláh, carries with it no more
> and no less than a solemn assertion that attainment to
> this final stage in this stupendous evolution is not only
> necessary but inevitable, that its realization is fast
> approaching, and that nothing short of a power that is
> born of God can succeed in establishing it.10
> 
> Although there are challenges, the Bahá’í community is in a
> dynamic state of transformation with a culture of learning and
> with confident facing challenges. This approach promotes the
> positive transformation of individuals and families into a new
> generation. However, it depends how this community adjust
> itself with the challenges of the larger society they are living
> in it. Therefore, within the Bahá’í community, much
> importance is placed on strengthening the concept of family
> 
> Shoghi Effendi. World Order, pp. 42-43
> Economics and the Bahá’í Faith
> 
> and its relationship with those outside of the family unit. A
> better understanding of the significance of marriage and
> family life helps pave the way. Bahá’í parents and the Bahá’í
> community endeavour to teach moral values to children. As a
> result, those values become an intrinsic part of the individual
> and the life of the society. Thus, it becomes natural for a
> Bahá’í to respect and care for fellow human beings.
> 
> My final thought and reflection are that although a number of
> Bahá’í teachings on economics are working within this
> community and to some extents have already influenced the
> wider society, the Bahá’í Faith is not yet in a position to fully
> implement its principles on a large scale. Currently there is
> no Bahá’í state and the Bahá’í population is small and
> scattered all over the world. Hence, it is too early to envisage
> how Bahá’í economic principles will shape and function at a
> larger scale in the future. The main priority at this time is the
> application of moral and spiritual principles within the Bahá’í
> community and to infuse these into the wider society. Bahá’ís
> all around the world enthusiastically join and work closely
> with any group or organization that promotes values such as
> trustworthiness, truthfulness, justice, kindness, and service to
> humanity. These core values enlighten any economic system,
> now and in the future.
> 
> The increasing complexity of the debate in the fields of
> economics and religion, however, requires scholarly attempts
> to create a systematic framework. It is hoped that by
> arranging and exploring the Bahá’í teachings on economics,
> this work will contribute to the on-going discussions and
> research in the Bahá’í community and the academic
> institutions.
> 
> Concluding Remarks
> 
> Suggested microeconomic and macroeconomic teachings of
> the Bahá’í Faith.
> 
> Microeconomic teachings of the Bahá’í Faith
> 
> At the individual level:
> • Work as worship
> • Farmers first
> • No begging
> • No gambling
> • The Law of Inheritance
> • Education and professional training
> • Moderation
> At the organizational level:
> • Profit sharing
> • No strike
> • A consultative method of decision making
> • Employee-employer relationship
> • Wage differential
> • Employee’s consideration
> 
> Macroeconomic teachings of the Bahá’í Faith
> At the national level:
> • The importance of agriculture
> • Control of individual ownership
> • Reducing the gap between the rich and the
> poor
> • Progressive income tax
> • Welfare economics
> • Supporting the minorities (human rights)
> Economics and the Bahá’í Faith
> 
> •   A justified interest rates
> •   Laws related to inheritance
> •   Equality of women and men
> •   Women empowerment
> •   Storage of food by local councils
> •   Universal and compulsory education and
> training
> •   The role of government in controlling and
> organising economic activities
> At the international level:
> • A world federal system
> • A world tribunal
> • A world inter-communication system
> • A world metropolis
> • A world language and script
> • A universal system of currency
> • A universal system of weight and measure
> • Disarmament
> • Proper distribution of the earth’s resources
> • Removal of barriers to international trade
> • Environmental consideration11
> 
> Bibliography
> 
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> Abbreviations
> Gleanings = Gleanings from the Writings of Bahá’u’lláh
> Tablets = Tablets of Bahá’u’lláh
> Aqdas = The Kitáb-i-Aqdas
> Foundation = Foundation of World Unity
> Promulgation = Promulgation of Universal Peace
> Selections = Selections from the Writings of ‘Abdu’l-Bahá
> Some = Some Answered Questions
> The Secret = The Secret of Divine Civilisation
> Advent = Advent of Divine Justice
> Directives = Directives from the Guardian
> Promised = Promised Day is Come
> World Order = World Order of Bahá’u’lláh
> 
> Economics and the Bahá’í Faith
> 
> About the author
> 
> Hooshmand Badee is an academic economist. He got his PhD
> from the University of Leeds and York Saint John University
> in the UK. His Doctorate research title is ‘The Bahá’í
> teachings on economics and their implications for the Bahá’í
> community and the wider society.’
> 
> He has published several books including The True
> Foundation of All Economics, a compilation from the
> Writings of the Bahá’í Faith on economics and related
> subjects, The      Spiritual    Solution     to     Economic
> Problems, which explains some of the direct and indirect
> teachings of the Bahá’í Faith on economics, and the
> Principles of Spiritual Economics, in e-book format. He has
> delivered talks and presented papers on economics and
> related subjects in numerous international academic
> conferences. His idea of ‘Bahá’í inspired model of economic
> sustainability has become attractive to academic institutions.
> 
> Hooshmand Badee worked as a lecturer of economics for
> over twenty-five years. He was also one of the founders of
> Carmel High School, a Bahá’í inspired school in St. Vincent
> in West Indies where he served as its principal for five years.
> He is currently a faculty member of Wilmette Institute in the
> USA for an online academic course ‘Economics and the
> Bahá’í Faith’, and an academic member of an open university
> in Iran, the Bahá’í Institute for Higher Education (BIHE).
> 
> Inspired by the message of the Universal House of Justice in
> 1983, he got involved in Bahá’í social and economic
> development projects in Bangladesh as well as later on in
> 
> About the Author
> 
> Saint Vincent and the Grenadines in the West Indies with the
> aim of putting the grassroots population at the centre of
> activities.
> 
> He married in 1975 with May Derakhshani and together
> have three children and six grandchildren. He left Iran in
> 1975 and lived in Bangladesh (1975-1984), Canada (1984-
> 1992), the Island of Saint Vincent and the Grenadines (1992-
> 2001), and the United Kingdom (2001-present).
>
> — *Economics and the Baha'i Faith (Used by permission of the curator)*