*********************************************************************** Global Hindu Electronic Network (GHEN) Are you a subscriber of Hindu Digest? To subscribe to Hindu Digest send an e-mail to listserv@arizvm1.ccit.arizona.edu with the following contents subscribe hindu-d Full Name [Note: Full Name must be at least 2 words] *********************************************************************** Subject: NEW ECONOMIC ORDER *********************************************************************** ******************************************************************* GLOBAL VISION 2000 THEME IV Systems are Conducive to the unfoldment of Divinity of Human Beings ******************************************************************* NEW ECONOMIC ORDER By ROMESH DIWAN [Dr. Romesh Diwan is Professor of Economics, Rerlsselaer Polytechnic Institute, Troy, New York. He has Ph.D. in Economics from University of Birmingham, U.K., and has authored 95+ articles and four books including Essays In Gandhian Economics and High Technology and International Competitiveness. He has served as Consultant to the United Nations (UNCTAD) and held visiting positions with Washington University (St. Louis, US), London School of Economics, and Gadjah Mada University. He has been on the editorial board of several journals, and is listed in Who's Who in America, 43ed Edition, 1984-85 and in later editions. ] The Western civilization is now in a serious crisis. The quality of life is declining. The material culture is not able to satisfy the human being since it does not deal with a person's most intimate goal. The underlying values of this civilization have given rise to the conventional economics based on inverted unrealistic assumptions that nature is limited while a person has unlimited wants and so there is unsustainable general scarcity. Such an order is unsustainable in the long run. There is need for a new economic order. What I have in mind is based on the Hindu culture where the objective of life is to get closer to Aatman and away from the ego. Aatman defines one's divinity. The role of new economic order should be to encourage this larger objective of unfolding one's divinity. Therefore, these rules have to conform to the basic tenets of Vedanta or what Aldous Huxley calls Perennial Philosophy. He states that rationalist thought is limited because it is unable to transcend Spiritual laws which alone can save this civilization. The question is will this civilization learn soon enough to change course and seek knowledge from the vast wisdom of older cultures like Hinduism or go the way of Duryodhana towards self destruction? War is not inevitable. Buddha, Jesus and Gandhi have articulated this in various terms: Violence does not solve conflicts. It is a good time to reflect about serious problems the world is facing and possible ways to deal with them. There are two sets of problems that the world society faces today (1) World order and (2) World environment. Cultural and security gaps between rich and poor countries lead to the problem of the world order and is akin to the problem of world environment. Povery, inequality and debt burden put serious pressures on world monetary liquidity causing instability and uncertainty. Environmental problems like depletion of resources or increasing toxicity affect all countries. The question is, what is the source of all these problems? Gandhi more or less predicted the problem that the U.S. society is facing today. the problem of an increase in material production and consumption and a decline in social well being. I hold that economic progress is antagonistic to real progress. To Gandhi consumption of material goods alone was never a source of human satisfaction. There is a unity in life. A human being is not only body and mind but also a spirit. Unless one is able to deal with the spirit there will always be a feeling of unease. Development of human spirit is through love, caring and sharing. Love involves service to others. Real progress relates to the progress of the soul force. Love involves unselfish service to others. Moral laws are essential for real progress. Love is expressed most acutely in the institution of a family. Because the unity of life Gandhian ideas relate to the global economy. To him God is Truth. He insists on purity of means. The basic premise is that the world is divided between elites and masses. Gandhian economics desired to develop economic principle on the basis of Gandhian ideas and practice. These ideas and practices are not only relevant but are necessary for the well-being of the whole world community. Gandhi instigated three revolutions: against Racism, Colonialism and Violence. One of the fundamental issues in the different Gandhian thoughts relates to the inseparability of economics and moral values. Six basic concepts in Gandhian economics (1) Swadeshi (2) bread labor (3) aparigraha (4) trusteeship (5) equality and (6) non-exploitation have a strong moral content and are highly related to one another. Many countries in the world tried to mold their people towards the mainstream of elitism based on economic incentives to make money and increase material standard of living. Their development policies depreciate and eventually destroy the successful cultural assets created over centuries. The solution to the U.S malaise lies in learning from other cultures. Our analysis suggests that U.S and other countries have to seek guidance from the wisdom inherited in old communities and cultures in different parts of the world. The problems we face are global in nature. The reduction in North South gaps are therefore important and even necessary for improvements in the well being of rich industrialized countries.