Buddhist economics is a vision of economic life rooted not in competition or endless growth, but in simplicity, compassion, and ethical clarity. It challenges the assumptions of both capitalism and socialism, offering a third path — one that seeks not the maximization of consumption, but the cultivation of well-being with minimal means.
This perspective was famously introduced to the West by E. F. Schumacher, whose 1966 essay “Buddhist Economics” later appeared in his book Small Is Beautiful. Based on his experiences in 1950s Burma, Schumacher argued that development efforts based on Western materialism led to spiritual and social decay. What was needed instead was an economics rooted in the Buddha’s Middle Way — avoiding both indulgent consumerism and static traditionalism .
In this framework, work is not just a means to survival or wealth, but a form of moral and spiritual training. Economic activity should develop a person’s character, promote social harmony, and respect the environment. The goal is not to satisfy every desire, but to reduce craving and live in contentment .
In Sri Lanka, thinkers like H. N. S. Karunatilake and Padmasiri De Silva have advocated for a Buddhist economics that prioritizes cooperation, harmony, and human development over greed and competition. They draw inspiration from ancient models such as Emperor Asoka’s reign and the large-scale irrigation systems of Sinhalese civilizations — examples of public projects done with moral vision .
In Thailand, Ven. P. A. Payutto and Buddhadāsa Bhikkhu have further developed this thinking. Payutto calls for ethics to be central to economics, emphasizing the social and environmental cost of unethical trade. He distinguishes between “right consumption,” which supports genuine well-being, and “wrong consumption,” driven by ego and indulgence. For him, consumption should be a means to human development, not a goal in itself .
Buddhist economics insists that wealth should not come at the cost of others’ suffering or environmental damage. It affirms generosity, sustainability, and mindfulness as the core economic values. This perspective directly opposes the modern obsession with limitless economic growth, calling it irrational and harmful — both to the human spirit and to future generations .
Ultimately, Buddhist economics teaches that a good society is one in which people live simply, share freely, and work meaningfully. Its relevance continues to grow in an era of ecological crisis and spiritual discontent, offering a bold alternative to the consumerist dream.