New Directions for Economics
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Source: Bahá'í Library Online (bahai-library.com), curated by Jonah Winters. Used by permission of the curator. Original citation: Gregory C. Dahl, New Directions for Economics, bahai-library.com.
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New Directions                                 croissance suffisant, la Maison universelle
de justice a, dans un message qu’elle leur
for Economics                                  a adressé le 1er mars 2017, exhorté les
croyants à se préoccuper de plus en plus
des inégalités dans le monde et à veiller à
GREGORY C. DAHL                                ce que leur vie personnelle et les actions
de leurs communautés bahá’íes soient de
plus en plus au diapason des normes mo-
Abstract                                       rales élevées et des principes de compas-
Recent developments in both the Bahá’í         sion et de service enchâssés dans les en-
community and the field of economics           seignements de leur foi. En même temps,
have opened up new vistas in the appli-        depuis la crise financière de 2007 2008
cation of Bahá’í principles to economic        et la récession mondiale subséquente, qui
questions, both in theory and in practice.     ont révélé les lacunes des modèles mac-
The Bahá’í community has grown enough          roéconomiques que la profession avait
that the Universal House of Justice, in        construits au cours des décennies précé-
its 1 March 2017 message, has called on        dentes, la profession d’économiste s’ou-
Bahá’ís to concern themselves increas-         vre davantage à de nouveaux courants de
ingly with the inequalities in the world       pensée et de recherche. L’auteur examine
and to bring their personal lives and the      ici certains des champs les plus fertiles
actions of their Bahá’í communities more       pour l’application de principes bahá’ís aux
in line with the high moral standards and      problèmes économiques actuels.
principles of compassion and service in
the teachings of their Faith. At the same      Resumen
time, the economics profession is more         Los desarrollos recientes tanto en la co-
open to new directions of thought and          munidad bahá’í como en el campo de la
research following the financial crisis of     economía han abierto nuevas perspectivas
2007–08 and the subsequent global re-          en la aplicación de los principios bahá’ís a
cession, which exposed the shortcomings        las preguntas económicas, tanto en la te-
of the macroeconomic models that the           oría como en la práctica. La comunidad
profession had spent the previous several      bahá’í ha crecido lo suficiente para que
decades constructing. Some of the fields       la Casa Universal de Justicia, en su men-
that appear most fertile for the application   saje del 1 de marzo de 2017, pidió a los
of Bahá’í principles to current economic       bahá’ís que se preocupen cada vez más de
problems are reviewed in this article.         las desigualdades en el mundo y traigan
sus vidas personales y las acciones de sus
Résumé                                         comunidades bahá’ís más en línea con los
Des développements récents, tant dans la       altos estándares morales y los principios
communauté bahá’íe que dans le domaine         de compasión y servicio en las enseñanzas
de l’économie, ont ouvert de nouvelles         de su Fe. Al mismo tiempo, la profesión de
perspectives pour l’application théorique      la económia está más abierta a nuevas di-
et pratique des principes bahá’ís aux ques-    recciones de pensamiento e investigación
tions d’ordre économique. La communauté        después de la crisis financiera de 2007-08
mondiale bahá’íe ayant atteint un niveau de    y la posterior recesión global, que expuso
34                  The Journal of Bahá’í Studies 28.1-2 2018

las deficiencias de los modelos macroeco-     on Bahá’ís to engage in the discourses
nómicos en la cual la profesión duro dé-      of society and has encouraged them,
cadas construyendo. Algunos de las areas      as a natural result of their growth as
que parecen más fértiles para la aplicación   local communities, to address social
de los principios bahá’ís a los problemas     issues (Ridván    2008; Ridván    2010).
.               .
económicos actuales se revisan en este
Indeed, a major theme of the junior
artículo
youth spiritual empowerment pro-
BACKGROUND                      gram pursued by Bahá’ís around the
world is to sensitize youth ages 12 to
Since I first attempted a survey of the       15 to the needs of their local commu-
Bahá’í teachings on economics more            nities and to encourage them to take
than 40 years ago (“Economics and the         initiatives aimed at improving the so-
Bahá’í Teachings”) and some of the ar-        cieties in which they live.
eas within economics where the Bahá’í            Recently, the Universal House of
teachings could be fruitfully applied         Justice has addressed a significant
(“Evolving Toward a Bahá’í Economic           message to the Bahá’ís of the World
System”), there have, of course, been         dated 1 March 2017 regarding the
many changes in the Bahá’í communi-           “extremes of wealth and poverty in
ty as well as in the field of econom-         the world [that] are becoming ever
ics. The Bahá’í community has grown           more untenable.” They call on Bahá’ís
substantially both in numbers and in          to identify ever more strongly with
visibility. In those earlier years of the     the plight of their fellow human be-
Faith, Bahá’ís necessarily had to con-        ings, as “[t]he welfare of any segment
centrate primarily on building their          of humanity is inextricably bound up
Bahá’í communities rather than con-           with the welfare of the whole,” and
cerning themselves with the problems          to increasingly “make their own indi-
of society around them. Working to            vidual and collective contributions to
bring the teachings of their Faith to         economic justice and social progress
mankind held out the hope and expec-          wherever they reside.” This call builds
tation of addressing the causes of the        upon a view enunciated in their earli-
problems afflicting the human race,           er messages, notably the Ridván
.     2010
while, owing to their small numbers,          message, that social change should
any endeavors in direct social action         involve everyone in society in a co-
would have had only minimal effect.           operative endeavor and can often be
Despite a few notable efforts—for in-         initiated at the level of the local com-
stance, in the establishment of schools       munity. Theirs is not just a simple call
and in medical services—progress              to charity but rather to “addressing
with social and economic development          the root causes” of poverty, a far more
initiatives was limited. In more recent       profound challenge.
years, however, the Universal House              How are Bahá’ís to meet this chal-
of Justice has been gradually calling         lenge? There is no specific economic
New Directions for Economics                            35

system prescribed in the Bahá’í Writ-        material factors such as the lack of in-
ings, but many of the teachings—             come or wealth, and may spring from
some of which are discussed below—           the grass roots rather than emerg-
bear directly on economic issues.            ing top-down through government
It would not be realistic to expect,         programs.
however, that the mere exposition of             Indeed, Bahá’ís view all aspects of
ideas will result in significant reform      life as one interrelated whole, whether
of economic systems. Humanity has            considered from the perspective of the
become too cynical and too distract-         individual or the society, the spiritual
ed by petty conflicts and the clamor         or the material, the local or the glob-
of opinions to pay much attention to         al.1 Economics is only one aspect of, or
idealistic pronouncements. And any           perspective on, this whole, inseparable
effort at systemic reform, even with         from the rest, and solutions to “eco-
a well-conceived plan of action, re-         nomic” problems may well be found
quires an enormous social impetus to         in what we normally view as other
overcome existing power structures           aspects of life, such as religion, eth-
and vested interests.                        ics, morality, and community building.
The Universal House of Justice has       Needless to say, this approach is quite
been calling Bahá’ís to an entirely dif-     different from the usual practice in the
ferent approach to social progress, one      academic field of economics.
involving community building at the              In his keynote address to the 2016
local level. They are now asking that        annual conference of the Association
this process of learning about commu-        for Bahá’í Studies, former member of
nity building be expanded to include         the Universal House of Justice Dr.
considerations of economic justice.          Farzam Arbab suggested that Bahá’ís
Bahá’ís are at an early stage of engag-      in every field of endeavor should ex-
ing with such broad social issues, but       amine the work of their discipline
they may well find that there are many       and begin a process of identifying
opportunities for individuals and local      which aspects might be seen as useful
communities to begin addressing the          in the context of the Bahá’í teach-
causes of inequities at a practical level,   ings and which might not (15). Given
starting not with economic or politi-
cal theories but with their own actions         1 For example, the Universal House
based on their observations of those         of Justice warns against thinking in
causes and motivated by their desire         terms of “false dichotomies” and quotes
to serve their communities. As a result      a letter written on behalf of Shoghi Ef-
of experience gained in this way, new        fendi in which he states “[w]e must take
methods of tackling social problems          the teachings as a great, balanced whole”
may emerge. These methods may in-            (Message to the Conference of the Con-
volve intangible factors such as social      tinental Boards of Counsellors dated 28
attitudes and prejudices, rather than        December 2010).
36                 The Journal of Bahá’í Studies 28.1-2 2018

that social and political structures in     time as misguided, and nothing that I
the world appear to be crumbling, it        have encountered since has changed
would not be surprising if a large part     that view. Human societies are not like
of the intellectual underpinnings of        machines. They are highly complex
the present (dis)order, including the       and unpredictable, and they evolve,
field of economics, might need to be        sometimes with sudden changes.2 In
rethought, or even replaced.                electrical engineering, one works with
While the Bahá’í community has          actual black boxes (integrated circuits
been gradually increasing its involve-      are almost always encased in black
ment with economic issues, there has        plastic boxes), but the way circuits
simultaneously been turmoil within the      behave is well understood and quite
field of economics. When I began my         precise, so the relationship between
doctoral studies in economics at Har-       inputs and outputs is highly stable
vard in 1969, computers were new and        and predictable.3 Economic systems,
the ability to analyze data and draw con-
clusions about relationships between           2 Economist Paul Ormerod emphasizes
different variables was exciting. I was     this viewpoint in his 1994 book, The Death
coming from an undergraduate major          of Economics, in which he writes: “We need
in electrical engineering, and although     to abandon the economist’s notion of the
I was not the most outstanding student      economy as a machine, with its attendant
as an undergraduate, the Economics          concept of equilibrium. A more helpful
Department evidently was looking for        way of thinking about the economy is to
students with my background. Macro-         imagine it as a living organism” (151). He
economics was beginning what would          also points out that, like natural systems,
prove to be several decades of devel-       economies are subject to unpredictable ex-
opment of econometric models at-            ternal shocks and sudden changes (211).
tempting to measure and then predict           3 Tellingly, in contrast to engineering,
the relationships between influences        with its calculations that include known
on the economy and how the economy          margins of error, e.g., 232+/- 5, there is no
would respond to those influences. The      effort in the mathematics of economics to
modeling, and thinking, was of an en-       explicitly take into account the often very
gineering mindset: in terms of mecha-       large margins of error of the data that are
nistic systems or “black boxes” whose       used as inputs. Economic data usually de-
internals were unknown but which            rive from heterogeneous sources and are
had inputs, such as “policy levers,” and    subject to wide variations in quality and
outputs, such as employment levels and      accuracy. Anyone working with economic
prices, that could be observed and pre-     statistics understands the uncertainties in-
dicted, much like the electrical circuits   volved, but that understanding is often not
I had been studying.                        preserved as the data are reported on by
Coming from my engineering back-        the press or used in models or as the basis
ground, this approach struck me at the      of policy decisions.
New Directions for Economics                             37

however, are not natural phenomena.         but about how they change and can be
They are created by human beings            improved.
as part of our social systems. In this         Another problem I saw with eco-
sense, economics could be considered        nomics as a discipline was that it
as overlapping with law, as many of         was becoming far too isolated and
the parameters of modern economic           concerned only with its own models.
systems are prescribed in laws and          Macroeconomists tended to see the
regulations and administered by insti-      sometimes abrupt and unforeseen
tutions that have legal charters. Just as   shocks to economic systems as simply
people often fail to obey other laws and    “exogenous,” that is, outside the scope
regulations, they often fail to obey eco-   of their analysis and models, prefer-
nomic “laws,” such as those governing       ring to focus on the beautiful equilibria
rational behavior. When economics           predicted by their models. Essentially,
is viewed in this way, it is clear that     their view was that economics is a sep-
economies are not smoothly function-        arate discipline from political science,
ing machines; rather, they reflect the      psychology, medicine, anthropology,
characteristics of humans, including        or any other discipline, and econo-
emotions, irrationality, herd behavior,     mists could not be expected to take all
and the need to understand complex          these other factors into account. This
realities through simplifications.          rather isolationist attitude was a major
In fact, the economic system, in-        departure from the earliest practice
cluding modern money, doesn’t exist         of macroeconomics, which was often
at all except as social contracts and       called “political economy” and which
mental constructs. As member of             took a much more holistic view of hu-
the Universal House of Justice Paul         man society.4
Lample has noted, “most of what we
perceive to be reality—the world with          4 Adam Smith, who is primarily re-
which we interact every day—is not          membered today for the assertion that
physical reality at all. It is social re-   self-interested behavior would lead to eco-
ality” (7). ‘Abdu’l-Bahá remarked that      nomic prosperity through the “invisible
“[t]he reality of man is his thought”       hand” of the market, was also famous in
(Paris Talks 9). Indeed, almost all the     his time as a philosopher and for his book
problems and issues that humanity is        The Theory of Moral Sentiments (Ormerod
facing in today’s world are created by      212). Nava Ashraf has written about the
humans and are thus part of “social         parallels between his views and the find-
reality.” This reality, having been cre-    ings of both modern psychology and be-
ated by humans, is not immutable and        havioral economics, pointing out that, in
can be changed or even completely re-       Moral Sentiments, “Adam Smith’s world
made by them. So, the most important        is not inhabited by dispassionate rational
questions about economic systems are        purely self-interested agents, but rather
not about their internal parameters         by multidimensional and realistic human
38                The Journal of Bahá’í Studies 28.1-2 2018

My reactions to the field were also     digression in the work of most aca-
informed by my Bahá’í upbringing. As       demic macroeconomists.
a Bahá’í, I saw the human experience           While the mainstream of macro-
as a highly integrated whole, with         economics was moving in a different
spiritual dimensions as well as material   direction, a few isolated voices main-
ones. Thus, like other people profess-     tained a social consciousness per-
ing religious values, I saw analysis of    spective within the field over these
economies as normative and not just        decades, emphasizing the inequalities
positive. For me, the interesting ques-    and injustices that are inherent in the
tions were what an economic system         capitalist system. For example, Ste-
should look like, not so much what the     phen Marglin has been teaching an
present systems looked like, although      alternative (or “heterodox”) economics
understanding the latter would nat-        course for undergraduates at Harvard
urally be a prerequisite and basis for     for some years and has written a book
conceptualizing possible futures and       titled The Dismal Science that empha-
how such futures could be achieved         sizes the importance of community,
in practice. And any consideration of      a direct challenge to mainstream eco-
economic problems would need to in-        nomics.5,6 The principal shortcoming
clude questions such as whether ma-        of such critiques of capitalism, how-
terial consumption is really the main      ever, has been the lack of convincing
source of human happiness and how          alternatives, given that the socialist
moral and spiritual values should be       experiments of the twentieth century
reflected in economic systems, go-         collapsed spectacularly from serious
ing far beyond simple questions of         inefficiency and corruption and that
the level of economic output and its       capitalist systems have already incor-
distribution.                              porated many socialist elements of
Given these various misgivings          social protection and welfare. Tearing
about the field of economics, I was        down one intellectual structure is not
very happy to be able to pursue a ca-      the same as building a new one.
reer as an economist at the Interna-           During this time, more and more
tional Monetary Fund (IMF), engaged        economists also began examining the
in real-world policy issues facing
countries—issues usually more politi-         5 See also his talk “Heterodox
cal than economic in nature, involving     Economics”.
simple accounting relationships rath-         6 I am personally indebted to Professor
er than complex economic relation-         Marglin for his required microeconomics
ships. In this way, I was able to avoid    course, one of the first I took as a graduate
what I felt was a relatively fruitless     student at Harvard, which helped protect
me from the 40-year detour into mathe-
beings” (Ashraf, Camerer, and Loewen-      matical abstractions upon which the field
stein 142).                                of economics was embarking at that time.
New Directions for Economics                            39

weaknesses in the “orthodox” or “neo-      credit and the concomitant contraction
classical” economic theories and made      in economic activity, revealed for all to
efforts to modify or extend those the-     see that many of the assumptions un-
ories—for example, by introducing          derlying macroeconomic models were
the possibility of multiple equilibria     unrealistic and that reliance on these
in their models. Younger economists        models and similar methods of finan-
tended to move into microeconomic          cial analysis based on historical data,
fields of inquiry such as health, educa-   such as value at risk (the statistical
tion, and behavioral economics, where      method by which banks would assess
the restrictive assumptions of the neo-    the riskiness of their assets), had failed
classical view of economic man as a        to anticipate or prevent an enormously
utility-maximizing machine didn’t ap-      costly economic downturn. Illustrat-
ply and greater integration with other     ing the hit to the reputation of the
disciplines was possible. Perhaps as a     economics profession generally, Queen
result of the obvious weaknesses in the    Elizabeth, after hearing a briefing on
neoclassical framework for addressing      the financial crisis in November 2008,
current economic problems, the field       famously asked, “Why did no one see it
of economics has also been moving          coming?” (Giles).
away from pure theory, or theory with         This obvious failure has prompted
simulations, and toward more empir-        a certain amount of soul searching
ical work (Hamermesh 168). Econ-           among leading economists and policy-
omists have taken the analytic tools       makers. In March 2013, at a London
of their profession and applied them       School of Economics seminar in honor
to a wide variety of interesting but       of Mervyn King, the retiring Bank of
narrower questions, as popularized in      England governor, Olivier Blanchard,
the 2005 book Freakonomics by Steven       economic counselor of the IMF, said,
Levitt and Stephen Dubner. However,        “Humility is in order,” and Professor
the result has been that less attention    Lawrence Summers of Harvard Uni-
is being paid to the big structural and    versity, former Treasury secretary of
policy questions of macroeconomics         the United States and former presi-
that used to be the main focus of the      dent of Harvard, said, “This crisis will
field, such as economic justice, employ-   force a substantial reconstruction of
ment, growth, trade, global integra-       macroeconomics” (London School of
tion, economic and financial stability,    Economics). It had become apparent
and curbing abuses of the free market      that the macroeconomic models econ-
economy such as monopoly power and         omists had spent most of their time
pollution.                                 formulating had been calibrated with
Then, in 2007–08, events gave a big     data covering a period of relative fi-
impetus to these trends. The global        nancial stability, that financial crises
financial crisis, with its collapse of     were actually much more frequent and
important financial institutions and       severe than assumed (Taleb), and that
40                 The Journal of Bahá’í Studies 28.1-2 2018

most models failed to incorporate the       new directions, a space has opened up
financial sector at all, although prob-     for more innovative approaches.
lems arising from finance turned out           Perhaps the solution to these prob-
to be a much more important cause           lems in the economics profession lies
of economic shocks and decline than         in the recognition that economic sys-
the loss of output due to imperfect         tems cannot be fruitfully studied as
fine-tuning of economic cycles (Broad-      isolated from other aspects of human
berry and Wallis). While econometric        society (Etzioni). The barriers be-
models are now still being used, they       tween economics and other fields of
are being treated with more caution         study, and between economists and
in policy circles. Of course, it is still   the general public, need to be further
useful to study macroeconomic rela-         demolished. There seems to be a nat-
tionships in terms of cause and effect,     ural tendency for specialists in every
such as what the likely impact on an        field to develop their own vocabulary,
economy would be from raising inter-        perhaps as an insecurity-fueled de-
est rates or adjusting tax laws. People     fense mechanism, to keep others from
respond to incentives as well as laws,      seeing clearly the weaknesses of the
and this is the essence of public pol-      discipline (as when doctors refer to
icy. But it is now increasingly recog-      “nosocomial infections,” diseases that
nized that these relationships are not      are contracted primarily in hospitals).
as stable and predictable as previously     Certainly, economics has its share of
thought, that there can be huge gaps        such specialized language. Although
between economic models—both                it is hard to know whether this phe-
calculated models and those mental          nomenon is greater in economics than
frameworks by which we make sense           in other fields, perhaps the resentment
of the world—and real-world out-            of outsiders to the sense of superior-
comes. For example, a current issue         ity many economists exhibit may be
of considerable importance is that the      due to the fact that everyone is direct-
models used by Western central banks        ly affected by economic policies and
to guide their policy decisions—re-         therefore naturally wishes to under-
garding the links between monetary          stand better the forces that are affect-
policy and the response of prices and       ing them. This effect would be much
economic activity—are not yielding          less noticeable in, say, archeology or
the expected results, calling into ques-    astronomy, but it is clearly visible in
tion the entire framework of mone-          fields such as medicine that are simi-
tary policy (Yellen). The realization       lar to economics in their relevance to
that the existing models may not be         daily life.
correct presents a fundamental chal-           While the field of economics has
lenge to the accepted concepts in the       been facing internal challenges, on a
field of macroeconomics, and while          larger stage recent turmoil in nation-
the field has already started to move in    al politics in a number of important
New Directions for Economics                             41

countries, resulting from growing               SOME BASIC BAHÁ’Í PRINCIPLES
dissatisfaction with the status quo
on the part of large segments of the        A central principle of the Bahá’í Faith,
population, is also providing an im-        “the pivotal principal and fundamental
petus to question current economic          doctrine of the Faith,” is the principle
and political systems and to consider       of the oneness of the entire human
far-reaching reforms. As the respected      race (Shoghi Effendi, God Passes By
chief economics commentator of the          281). Bahá’u’lláh declared that “[y]e
Financial Times, Martin Wolf, wrote         are the fruits of one tree, and the leaves
recently, “It is time for re-thinking       of one branch . . . . So powerful is the
along many dimensions” (11).                light of unity that it can illuminate the
Against this background of a gen-        whole earth” (Epistle 14). This princi-
eral questioning of existing social         ple has many dimensions and ramifi-
structures, and of the need to break        cations. As the Universal House of
down the barriers between economics         Justice has observed:
and other disciplines and to work to-
ward an inclusive process of the gen-         For the principle of the oneness
eration, dissemination, and application       of humankind, as proclaimed by
of knowledge, this article is addressed       Bahá’u’lláh, asks not merely for
to anyone interested in the issues dis-       cooperation among people and
cussed, not just to professional econ-        nations. It calls for a complete
omists. What I will attempt below is          reconceptualization of the rela-
a brief and somewhat superficial re-          tionships that sustain society. . . .
view of a few of the numerous areas           [T]he concentration of material
in the fields of economics and public         wealth in the hands of a minority
policy that are the subject of current        of the world’s population gives an
debate—areas where fresh work and             indication of how fundamentally
innovation benefitting from a Bahá’í          ill-conceived are relationships
perspective could make a positive con-        among the many sectors of what
tribution. The focus is on topics with        is now an emerging global com-
a potential for immediate applicability       munity. The principle of the one-
or experimentation, rather than sub-          ness of humankind implies, then,
jects, intellectually interesting as they     an organic change in the very
are, such as the outlines of the Bahá’í       structure of society. (Message to
World Commonwealth of the future,             the Bahá’ís of Iran)
for which new political structures will
be necessary. Before turning to this        In this light, can we study economics
endeavor, however, let us summarize a       without considering economic justice?
few of the relevant Bahá’í principles,         Aside from socialists, Western
which may serve as a rich resource and      economists have traditionally separat-
source of inspiration.                      ed the question of maximizing output,
42                The Journal of Bahá’í Studies 28.1-2 2018

considered the main objective of eco-     participation. Thus, while social action
nomics, from the question of the dis-     may involve the provision of goods
tribution of that output of which, as     and services in some form, its prima-
mentioned above, they prefer to think     ry concern must be to build capacity
as a political rather than an economic    within a given population to partici-
issue. The concept of the oneness of      pate in creating a better world. Social
humankind, on the other hand, em-         change is not a project that one group
phasizes the need of a social structure   of people carries out for the benefit of
that encourages each individual to re-    another.”
alize his or her own potential and to        This theme of capacity building7 is
be a contributing member of society,      also developed at length in the docu-
which in turn will augment the gener-     ment “Social Action,” prepared at the
al happiness and prosperity of society    request of the Universal House of
as a whole. As ‘Abdu’l-Bahá has stated,   Justice in 2012, in which they state:
“Wealth is most commendable, pro-         “What appears to be called for . . . is
vided the entire population is wealthy”   the involvement of a growing num-
(Secret 8). The question then becomes:    ber of people in a collective process
What might the economic system of         of learning . . . . Such a process would
such a society look like? When we         allow its participants to engage in the
consider this question, can we avoid      generation, application, and diffusion
falling into the trap of framing the      of knowledge, a most potent and in-
debate in terms of socialism versus       dispensable force in the advancement
capitalism or as a struggle between
classes? Can we imagine a new type of        7 An example of the importance of
society, one characterized by reciproc-   capacity building is ‘Abdu’l-Bahá’s encour-
ity and mutual help?                      agement early in the twentieth century of
In the Bahá’í view, and in keeping     the Bahá’ís in North America to build a
with this principle of the oneness of     house of worship, not primarily because
humanity, efforts to improve human        such a building was needed at that time (it
welfare must be seen as a collective      took many years to construct), but because
enterprise, with everyone participat-     it was a project around which, He insist-
ing in some fashion, and thus the es-     ed, the whole community needed to unite,
tablishment of a sense of unity must      learning to work together toward a com-
be a first step. As the Universal House   mon objective. The committee charged
of Justice communicated in its 20 Oc-     with overseeing the project was called
tober 1983 message to the Bahá’ís of      the Bahá’í Temple Unity. The spirit in
the world, “The key to success is uni-    which the project was conducted and the
ty in spirit and in action.” This theme   motives of the individuals involved were
was also stressed in its annual Ridván
.     as important as the outward form of the
message to the Bahá’ís of the world       project, and the main purpose was capaci-
in 2010: “Justice demands universal       ty building in the community.
New Directions for Economics                             43

of civilization” (OSED 6). Further-         words and end with words” (Tablets 52).
more, in the 2010 message of the Uni-          Intellectual accomplishment, how-
versal House of Justice quoted above,       ever, should not lead to a sense of
they state: “Access to knowledge is the     entitlement or superiority (Arbab 17).
right of every human being, and par-        Economists, like other intellectuals,
ticipation in its generation, application   tend to see themselves as playing a
and diffusion a responsibility that all     central role in society. In the case of
must shoulder in the great enterprise       economics this may be true, because
of building a prosperous world civili-      economies are defined by rules, and
zation—each individual according to         those rules, or government policies,
his or her talents and abilities.”          are often based on the theories or
So what, then, is the role of experts    influence of economists. But just as
and intellectuals in the Bahá’í view?       one wants a highly trained surgeon
Bahá’u’lláh writes that those who ac-       working in a well-equipped hospital
quire knowledge should be respected         to perform open-heart surgery, and it
(Gleanings 128; Tablets 96–97), but the     is also desirable for the general public
Bahá’í teachings see the generation         to be well-informed about health, nu-
and acquisition of knowledge, like          trition, and disease and to have ready
other human activities, as something        access to information in these fields, so
in which everyone should take part,         well-trained economists are needed to
not as the exclusive domain of experts      address complex problems of public
or a particular social class. Bahá’u’lláh   policy and the functioning of financial
further states: “Knowledge is one of        institutions, while the general public
the wondrous gifts of God. It is in-        should understand the principles of
cumbent upon everyone to acquire it”        economic life and should be encour-
(Tablets 39). And again: “Knowledge is      aged to take initiative if they are so
as wings to man’s life, and a ladder for    inspired. Knowledge should be avail-
his ascent. Its acquisition is incumbent    able to all, not confined to a privileged
upon everyone” (Tablets 51). Univer-        few. The challenge, of course, is how
sal education open to all is a central      to get different groups to communi-
principle of the Faith, applied since       cate effectively with each other and to
the earliest days of the Faith in Iran      benefit from each other’s perspectives
and in the present day in many areas        (Ashraf).
of the world through the founding              It is notable in this context that the
of local schools if none are provided       1 March 2017 message of the Univer-
by the state. The Bahá’í vision, then, is   sal House of Justice calls on all Bahá’ís,
one of individuals acquiring whatever       as individuals and in their communi-
knowledge they can, given their abili-      ties, to consider the problems of ineq-
ties and access to education, as long as    uity and injustice around them and do
that knowledge “can profit the peoples      what they can to address those prob-
of the earth” and does not “begin with      lems “using the opportunities their
44                The Journal of Bahá’í Studies 28.1-2 2018

circumstances offer them” (Message          individuals dedicated to labouring
to the Bahá’ís of the World). There is      together for the emergence of a
no mention of waiting for an expert to      united and prospering world that
tell them what to do. But there is also     might truly deserve to be called
no reason why they shouldn’t consult        the kingdom of God on earth.
with an expert if it would be helpful.      (Message to all who celebrate
As the Office of Social and Econom-         the Glory of God dated October
ic Development (OSED) at the Bahá’í         2017)
World Center has observed, “Social
and economic development requires            The message of the Universal
the flow of resources, both material      House of Justice of 1 March 2017
and intellectual” (11).                   also highlights the “foundational con-
As an aide in understanding the        cept” in Bahá’u’lláh’s Revelation of
dynamics of social progress, the          “the spiritual reality of man,” namely
Universal House of Justice has also       “the nobility inherent to every human
introduced the concept of three pro-      being” (Message to the Bahá’ís of the
tagonists in development: the indi-       World). Like other religions, the Bahá’í
vidual, the community, and institu-       Faith views man as having a higher,
tions (Message to the Bahá’ís of the      nobler nature characterized by altru-
World dated 26 November 1999 1).          ism, integrity, generosity, forgiveness,
Each has an essential role to play. As    and many other virtues, a view that
explained in the OSED document on         emphasizes man’s character and role
“Social Action” mentioned above, “the     in society. Importantly, in this view
increase of capacity in each of these     human behavior is not, and should not
three protagonists does not occur in      be, something static. On the contrary,
isolation; the development of any one     it sees human beings as able to learn,
is inextricably linked to the progress    progress spiritually, and strive to be-
of the other two” (8). The House of       come better by developing inherent
Justice has emphasized, in particular,    qualities. Even if, for the individual,
that those who have previously been       the ability to develop slows with age,
excluded must now be included and         society can progress through educa-
should become empowered to contrib-       tion so that each generation is more
ute to this process:                      developed and capable than the pre-
vious one, and mankind thereby fos-
Many who have long suffered are         ters “an ever-advancing civilization”
finding their voice and becoming        (Bahá’u’lláh, Gleanings 215).
protagonists of their own devel-           Thus, a Bahá’í view of the economic
opment, resourceful and resilient.      dimension of human society contrasts
From villages, neighbourhoods,          starkly with the view central to most
towns and cities are arising in-        economic thinking—namely, that hu-
stitutions, communities, and            man motivation is primarily based on
New Directions for Economics                           45

self-interest and that this condition is    to an integrity that is immune to the
static and simply “human nature.” It        promptings of self-interest” (Compila-
sets forth a concept of the individu-       tion of Compilations 342).
al as an inherently social being, one           More generally, Bahá’ís and the
thus influenced by social context and       followers of the other major faiths
collective incentives, but always in a      believe that personal or spiritual qual-
condition of changing and growing,          ities such as honesty, integrity, humil-
potentially serving as an agent of so-      ity, selflessness, commitment to stable
cial change in a reciprocal relationship    family relationships, a desire to serve
with society.                               others, a dedication to peaceful resolu-
This brings us to the importance         tion of conflicts, and a consciousness
of trust. The glue that holds society       of spiritual preparation for the next
together is trust. No society can long      life as opposed to material rewards in
function successfully without trust         this one are of central importance to
and altruism.8 There is now a growing       the successful functioning of human
concern in the world regarding the          society, including its economic aspects.
decline in trust in social institutions.    In the Bahá’í view, the detachment of
Unfortunately, we nevertheless see un-      modern societies from these core spir-
trustworthy people rising to positions      itual truths is the main reason for the
of great power and influence in society,    breakdown in social structures and
notably in the political, financial, and    cohesion and to the successive crises
business worlds. Hardly anyone actual-      being faced by humanity.
ly expects politicians to speak only the        An important general principle
truth these days. Young people might        here is that man is a social creature
thus quite reasonably assume that be-       and society depends on cooperation
ing dishonest is the easiest path to suc-   and reciprocity, not competition. As
cess. In contrast, there are many pas-      ‘Abdu’l-Bahá explains: “man cannot
sages in the Bahá’í writings regarding      live singly and alone. He is in need
the importance of trustworthiness and       of continuous cooperation and mu-
truthfulness, such as the following ex-     tual help. For example, a man living
hortation of ‘Abdu’l-Bahá to those in       alone in the wilderness will eventu-
public service positions: “In discharg-     ally starve. He can never, singly and
ing the functions of the office to which    alone, provide himself with all the
thou hast been appointed, thy con-          necessities of existence. Therefore,
duct and actions should attest to the       he is in need of cooperation and rec-
highest standard of trustworthiness         iprocity” (Promulgation 102.2). In the
and honesty, to a degree of sincerity       Bahá’í view, the emphasis in much
that is altogether above suspicion, and     modern economic and social science
thinking on competition as the key to
8 This theme is developed in my arti-    prosperity is entirely misplaced (Karl-
cle “Trust and Trustworthiness.”            berg). Rather, prosperity comes from
46                 The Journal of Bahá’í Studies 28.1-2 2018

collaboration and from a sense of rec-        status of fact or define truth as
iprocity resulting in equitable sharing.      the compromise between oppos-
In this view, for example, economic           ing interest groups. (Message to
structures should emphasize the mu-           the Bahá’ís of Iran)
tual interdependence of labor and cap-
ital, with the interests of each, as well       Beyond simply recognizing that
as the broader social interest, taken       human beings are social creatures, the
into account (‘Abdu’l-Bahá, Promulga-       Bahá’í teachings take the Golden Rule
tion 102.33).                               a step further and emphasize service to
In this regard, a key practical ap-      others as being the path to individual
proach enjoined by Bahá’u’lláh is the       spiritual growth as well as the prog-
principle of consultation. For Bahá’ís,     ress of society. As Bahá’u’lláh writes,
consultation means sharing one’s ideas      “Man’s merit lieth in service and vir-
in a group while being detached from        tue and not in the pageantry of wealth
them and listening closely to what oth-     and riches” (Tablets 138). ‘Abdu’l-Bahá
ers contribute so that the truth can be     further declares: “And the honor and
found and agreement can be reached          distinction of the individual consist
on the best way forward. Bahá’u’lláh        in this, that he among all the world’s
writes: “Take ye counsel together in        multitudes should become a source of
all matters, inasmuch as consultation       social good” (Secret 1).
is the lamp of guidance which leadeth           Part of being a productive member
the way, and is the bestower of under-      of society is to have an occupation and
standing” (Tablets 168). ‘Abdu’l-Bahá       earn a living, within the means and
exhorts: “Settle all things, both great     opportunities available. ‘Abdu’l-Bahá
and small, by consultation. Without         writes: “Every person must have an
prior consultation, take no import-         occupation, a trade or a craft, so that
ant step in your own personal affairs.      he may carry other people’s burdens,
Concern yourselves with one another.        and not himself be a burden to others”
Help along one another’s projects and       (qtd. in Universal House of Justice,
plans” (Research Department). And           Message to the Bahá’ís of the World
the Universal House of Justice has          dated 1 March 2017). In fact, we read
written that decision-making can            in Bahá’u’lláh’s book of laws that: “It
is incumbent upon each one of you to
benefit from a diversity of per-          engage in some occupation—such as a
spectives through a consultative          craft, a trade or the like. We have ex-
process which, understood as the          alted your engagement in such work
collective investigation of reality,      to the rank of worship of the one true
promotes detachment from per-             God” (Kitáb-i-Aqdas ¶33). In a note,
sonal views, gives due importance         the Universal House of Justice ex-
to valid empirical information,           plains that the implementation of this
does not raise mere opinion to the        law is “the mutual responsibility of the
New Directions for Economics                             47

individual and society” (Kitáb-i-Aqdas       in the Bahá’í view, no material or eco-
note 56). So work is seen not only as        nomic act can be separated from its
a material necessity, but as a spiritual     moral and spiritual implications, and
exercise as well, in that it confirms the    economic systems need to be viewed
individual’s dignity as a contributing       in the light of spiritual standards and
member of society, no matter how             objectives. As the Universal House of
lofty or meagre one’s particular role        Justice affirms: “The teachings of the
or station might be. Bahá’u’lláh has         Faith leave no room for doubt: there
poetically summarized this principle         is an inherent moral dimension to the
in The Hidden Words: “The basest             generation, distribution, and utiliza-
of men are they that yield no fruit on       tion of wealth and resources” (Mes-
earth. . . . The best of men are they        sage to the Bahá’ís of the World dated
that earn a livelihood by their calling”     1 March 2017).
(Persian nos. 81–82).                           One example of this perspective
In the Bahá’í teachings, in contrast      is the unique and interesting law of
to the attitudes and practices of many       Huqúqu’lláh ordained by Bahá’u’lláh
other faiths, money and wealth are not       in his Most Holy Book (Kitáb-i-Aqdas
seen as in conflict with a spiritual life    ¶ 97). In addition to extoling charity,
but rather as part of a coherent life—       He decreed that those Bahá’ís whose
that is, if one’s wealth is “acquired        income exceeds their needs must pay
by an individual’s own efforts” and is       nineteen percent of the excess to the
“expended for philanthropic purposes”        Center of the Faith, in a spirit of “the
or “upon themselves and upon their           utmost joy and radiance” to be ex-
kindred for the love of God” (‘Ab-           pended for the betterment of human-
du’l-Bahá, Secret 8; Bahá’u’lláh, The        kind (Huqúqu’lláh no. 5). Bahá’u’lláh
Hidden Words, Persian no. 82). As            has stated that these payments of
the Universal House of Justice states,       Huqúqu’lláh “purify” one’s wealth
“The oneness of mankind, which is at         (Kitáb-i-Aqdas ¶ 97). Thus, the indi-
once the operating principle and ulti-       vidual can feel at peace spiritually if he
mate goal of His Revelation, implies         prefers to keep the remaining 81 per-
the achievement of a dynamic coher-          cent. The law encourages Bahá’ís to
ence between the spiritual and prac-         think of wealth as a means of promot-
tical requirements of life on earth”         ing social good while helping them
(Message to the Bahá’ís of the World         be detached from such wealth, and it
dated 20 October 1983 602).9 Thus,           focuses their attention on what is truly
“needful” materially in their lives.
9 For an excellent statement on coher-       As another example of how prac-
ence between the spiritual and the materi-   tical matters intersect with spiritual
al, see http://www.bahai.org/beliefs/god-    principles in the Bahá’í teachings,
his-creation/ever-advancing-civilization/    Bahá’u’lláh has specified that the
coherence-between-spiritual-material.        charging of interest is permitted, in
48                The Journal of Bahá’í Studies 28.1-2 2018

contrast to other faiths, but He warns       system. Bahá’u’lláh has given us a
against “illicit gains obtained by usu-      few basic principles which should
ry” and counsels “moderation and fair-       guide future Bahá’í economists
ness,” “justice,” and “tender mercy and      in establishing such institutions
compassion” (Tablets 133–34). Similar-       which will adjust the economic
ly, in many passages He extolls for-         relationships of the world.
bearance, presumably using the word          (Hornby 551)
in its broader sense of showing pa-
tience and resignation and not always      Economists inspired by the Bahá’í
insisting on one’s rights but perhaps      teachings may study such issues as tax-
also in its narrower meaning of being      ation, trade, the financial system, and
lenient regarding the repayment of         public policy in general, about which
loans if repayment would entail hard-      some thoughts are presented below.
ship. He has also prohibited gambling      However, they might be well-advised
but did not elaborate (Kitáb-i-Aqdas ¶     to keep in mind that there are already
155). Therefore, it is for the Universal   many worthwhile ideas for improving
House of Justice to determine in the       economic systems, but vested inter-
future whether this prohibition might      ests and the failings of political sys-
include speculation in financial mar-      tems stand in the way of implement-
kets (Kitáb-i-Aqdas note 169).             ing them. Although it might be useful
Although there are some specific       to prepare the ground intellectually
teachings of the Bahá’í Faith, such as     for reforms, most have little prospect
those mentioned above, that could be       of being implemented any time soon.
considered economic in nature, there       In this context, the emphasis placed
is no economic system per se envis-        at this time by the Universal House
aged in the writings of the Faith. In      of Justice on individual and commu-
a letter written on his behalf, Shoghi     nity action is most interesting. As
Effendi states:                            they explain in their message to the
Bahá’ís of the world dated 1 March
There are practically no technical       2017, “The aim is to learn about how
teachings on economics in the            to participate in the material affairs
Cause, such as banking, the price        of society in a way that is consistent
system, and others. The Cause            with the divine precepts and how, in
is not an economic system, nor           practical terms, collective prosperity
can its Founders be considered           can be advanced through justice and
as having been technical econo-          generosity, collaboration and mutual
mists. The contribution of the           assistance.”
Faith to this subject is essentially        There is much work to be done to
indirect, as it consists in the ap-      better understand how this process
plication of spiritual principles        might unfold.
to our present-day economic
New Directions for Economics                            49

PROMISING NEW DIRECTIONS              at the London School of Economics,
has contributed to this field through
Let us now turn to some specific areas    high-profile empirical research con-
that are currently the subject of in-     firming a theory that people may
tense policy debate because the short-    voluntarily choose to limit their own
comings of the present system are         options—for example, through a bank
becoming apparent, areas where in-        savings product that would restrict
novations, experimentation, insights,     their withdrawals until they reached
and research, informed by Bahá’í prin-    a given level—contradicting a basic
ciples, might be particularly fruitful.   premise of neoclassical economics
that people know what they want and
NEW PERSPECTIVES ON HUMAN                 that choice is always better.11
NATURE                                        Ashraf has more recently been do-
ing pioneering work in her study of
As mentioned above, the foundations       altruistic behavior, confirming a view
of modern macroeconomics have             of human behavior in line with Bahá’í
been increasingly called into question,   principles but startlingly different
leading to more attention being paid      from the one traditionally assumed
to microeconomics, or the study of        in the economics profession. She has
the behavior of individuals and firms,    shown that altruism not only is im-
and in particular to drawing conclu-      portant, but can be a greater motiva-
sions from observing actual behav-        tion than monetary reward (Ashraf,
ior. Important work has been done         Bandiera, and Jack). While economists
in many areas, such as game theory        in recent years have extended the idea
and bargaining, limited information,
and agency theory, that challenges the       11 See in particular “Tying Odysseus
restrictive assumptions of the neo-       to the Mast: Evidence from a Commit-
classical models of human behavior.       ment Savings Product in the Philippines.”
This shift in emphasis has moved what     Behavioral economics is now perhaps
is now called behavioral economics to     most famous for the idea that people can
center stage, with four Nobel Prizes      be encouraged to make choices that are
in the past 15 years being awarded        better for themselves and/or society by
to pioneers and contributors to this      adjusting the way choices are presented to
field.10 Nava Ashraf, a young Bahá’í      them, e.g., by making the default option in
behavioral economist previously at        their paycheck involve putting part of it
the Harvard Business School and now       into a savings plan, rather than requiring
them to opt for such an option. This idea
10 These Nobel Prize winners include    was popularized in Richard Thaler and
Daniel Kahneman (a psychologist) and      Cass Sunstein’s 2008 book, Nudge: Im-
Vernon Smith in 2002, Robert Shiller in   proving Decisions About Health, Wealth,
2013, and Richard Thaler in 2017.         and Happiness.
50                The Journal of Bahá’í Studies 28.1-2 2018

of human preferences to include vari-      alongside GDP and economic growth,
ous aspects of altruism, fairness, and     and there is even an OECD Better
values, these preferences have been as-    Life Index, the difficulty of defining
sumed to be fixed in line with the neo-    and measuring happiness has proven
classical model of behavior. Ashraf        an obstacle, and little practical prog-
has now introduced the notion, in a        ress has been made. This field appears
formal model, that altruism can be de-     ripe for further investigation, perhaps
veloped, which, from the perspective       drawing on data from the experience
of ethics and moral philosophy and         of Bahá’í communities.
of the Bahá’í teachings, is, in fact, of
central importance (Ashraf and Ban-        THE ELIMINATION OF PREJUDICE
diera 70–75). Her work is an excellent     AND THE RECOGNITION OF GENDER
example of how someone approaching         EQUALITY
a field of study with a different per-
spective can see a different reality and   Prejudices of all kinds that divide
cast new light on important issues.        society into distinct groups and treat
Related to the concept of altru-       different groups unequally are the
ism is the Bahá’í principle mentioned      antithesis of the Bahá’í principle of
above that the purpose of human life       the oneness of humankind. So too
is “service and virtue,” and that happi-   are barriers to the full participation
ness and fulfillment lie not in material   by women in both economic activity
possessions and pursuing self-interest     and in social structures the antithesis
but in service to others and leading a     of the Faith’s teaching that women
meaningful life. The new field of “hap-    and men are equal in the sight of
piness economics” addresses ques-          God. Despite the progress that has
tions of this nature, such as whether      been made in recent decades, perni-
wealth increases happiness and what        cious prejudices are still rampant in
other factors might produce happi-         the world and not only perpetrate in-
ness and a sense of well-being. In his     justices, but also impede the general
2005 book Happiness surveying the          progress of humanity. Bahá’ís, with
subject, Richard Layard emphasizes         their vision of a society characterized
man’s social nature—that happiness         by unity in diversity (Shoghi Effendi,
comes from social connections such         World Order 41–42), should be trail-
as friendship and marriage—and also        blazers, as individuals and in their
observes that “happiness depends on        communities, in demonstrating how
your inner life as much as on your out-    divisions can be overcome and unity
er circumstances,” on “feel[ing] more      firmly established. This is the essence
for others” and on our “inner strength     of the community-building projects
of character” (230). While there has       in which Bahá’ís and their collabo-
been some effort to make happiness an      rators are engaged and which surely
official objective of government policy    will yield lessons for the path toward
New Directions for Economics                            51

the economic prosperity and social           Of course, this seems highly unlikely
progress of humankind.                       to happen any time soon. There is also
the issue of whether the resources thus
INEQUALITY                                   raised would be effectively used to al-
leviate poverty. Redistribution schemes
Economic inequality, and in particular       and foreign aid have a poor record of
the startling increase in affluence of       actually promoting equality or de-
the very rich at the expense of the mid-     velopment. Many social programs in
dle classes in recent years, has moved       wealthy countries, although well-inten-
center stage in political and economic       tioned, have been found to perpetuate
debate in many Western countries. Ox-        poverty or to have other negative social
fam announced during the 2017 World          effects, and foreign aid programs have
Economic Forum that their research           been widely criticized as both ill-con-
showed that eight individuals owned          ceived and supportive of corruption in
as much wealth as the poorer half of         recipient countries.
mankind (“Just 8 men”). Although one            With regard to the question of how
can question their methodology, the          best to provide support for the poor
overall picture is of profound concern.      and needy, an option that is being in-
French economist Thomas Piketty, af-         creasingly discussed is the idea of a
ter fifteen years of research, published     universal basic or minimum level of fi-
his long academic study Capital in the       nancial support for all citizens. Because
Twenty-First Century in 2014, and it         of the difficulty of targeting income
reached number one on the New York           maintenance schemes only to those
Times best seller list for hardcover non-    truly in need, and without undermin-
fiction, reportedly selling over 2.5 mil-    ing incentives to seek gainful employ-
lion copies and presumably breaking          ment, the universal basic income would
records for the sale of any 700-page ac-     simply be given to all citizens. It was
ademic tome (“Hardcover Nonfiction”;         put to a public vote in Switzerland in
Irvine).12 The rise in inequality is often   2016 (but failed by a large margin), is
mentioned as one of the causes of the        being pilot-tested on a limited scale in
loss of public confidence in political       a number of places such as Finland and
leadership in some countries, and there      Ontario, Canada, and is being promot-
has been concern that it is leading to       ed elsewhere, including by politicians.
greater social instability.                  However, such schemes do not current-
Piketty’s proposed solution—typical       ly appear affordable even in most of the
for an economist—is to impose new            richest countries, as compared with tar-
taxes on the rich to promote equality.       geted assistance, although the experi-
ments with this approach are worth fol-
12 Another influential writer on in-      lowing (OECD, “Basic Income” 4, 6).13
equality is Branko Milanovic. See in par-
ticular his book Global Inequality.            13 For a detailed treatment of this
52                  The Journal of Bahá’í Studies 28.1-2 2018

All the above approaches to in-               In the same vein, the 1 March 2017
equality are what is often called              message of the Universal House of
“top down” rather than “bottom up,”            Justice puts the issue in an entirely
i.e., directed from a central author-          different light as compared with the
ity rather than springing from the             normal view of economists, framing it
grass roots. To succeed, approaches            as a moral, and thus personal, impera-
to inequality may need to give much            tive and not just a political or econom-
greater weight to building a spirit            ic question to be addressed by social
of community at the local level, like          institutions or public policy.15 Individ-
the small, intimate “study circles” in         uals and small communities motivated
which Bahá’ís of different levels of           by a moral standard taught by their re-
experience read the Bahá’í writings            ligion can improve their behavior even
together and share their understand-           before the political structure or eco-
ings as equals, in sharp contrast to           nomic incentives to do so are changed.
the format of sermons, lectures, or            As urged by the Universal House of
the use of media typical in other re-          Justice, Bahá’ís can attempt to identify
ligions and institutions of learning.          local causes of inequality and address
It is noteworthy that an anti-poverty          them with the means at their dispos-
scheme incorporating some of these             al. In a village setting, such causes
community-based elements, with lo-             might include an inequitable irrigation
cal communities identifying those in           scheme, health issues such as malaria
need and targeting appropriate assis-          or the need for a clinic or clean water,
tance to them, is being implemented            lack of access to or the quality of ed-
successfully on a large scale in China         ucation, local social divisions such as
(“China’s New Approach”). Indeed, it           caste or rivalries between families, or
has been my observation that in many           the corruption of local officials. In any
cultures where there is widespread             setting, Bahá’ís can just simply show
poverty, anyone doing better than the          more personal compassion and care
rest is expected to give support to rel-       for those in need, following the life-
atives and friends, whether in the form        long example of ‘Abdu’l-Bahá.
of food at traditional feasts or direct           A skeptic might say that relying
financial support, as an important el-         on people to feel more compassion for
ement of community solidarity and              others is just wishful Pollyanna think-
social cohesion.14                             ing. For example, in his recent book
subject, see Van Parijs, Philippe and Yan-
Creating Freedom (2016), Raoul Marti-
nick Vanderborght, Basic Income: A Radical
nez presents a fairly standard critique
Proposal for a Free Society and a Sane Econ-
of capitalism and the inequalities and
omy. Harvard UP, 2017.
14 A Bahá’í PhD student at Cor-               15 See, for example, the passage quot-
nell, Vesall Nourani, is researching this      ed above that “there is an inherent moral
phenomenon.                                    dimension” to inequality.
New Directions for Economics                           53

waste it produces. His main prescrip-         and among certain segments of the
tion, at the end, is that people should       population, such as young people
be made to realize, when they spend           (“Total Unemployment Rate”). In the
on non-necessities, that they are ac-         United States, at the time of this writ-
tually wasting resources that could           ing, although overall unemployment
be used to save the lives of people in        is low, wages are stagnant, many dis-
desperate need. One criticism of the          couraged workers have stopped seek-
book is that his exhortation is unlike-       ing employment but are not counted
ly to have any practical effect. Having       as unemployed, and there are serious
posed a problem, he hasn’t offered a          regional problems.
realistic solution. But what he propos-          Obviously, prolonged unemploy-
es bears a striking resemblance to the        ment can do permanent damage to
Bahá’í law of Huqúqu’lláh mentioned           one’s self-esteem and productivity
above—the “profoundly private act of          and make reentry into the workforce
conscience that promotes the common           increasingly difficult. Those of us
good”—which Bahá’ís are obeying               whose grandparents lived through the
with enthusiasm and devotion (Uni-            Great Depression of the 1930s heard
versal House of Justice, Ridván
.     1991       many stories of people whose lives
Message).                                     were crushed through a loss of their
sense of self-worth when they became
unemployed. In light of the emphasis
EMPLOYMENT AND TRADE
placed by Bahá’u’lláh on the impor-
tance and value of each individual
The inability to provide adequate em-
making his or her contribution to soci-
ployment to those willing to work is
ety, Bahá’ís would give high priority to
a major failing of modern capitalism
finding solutions to this issue.
and an issue underlying much of the
Americans, especially, like to refer
anger currently being expressed in
to their “free enterprise system,” but
politics. Unemployment, along with
one never hears about a “free work-
the corollaries of wage levels and job
er system.” The current economic
security, is a critical issue in the world,
and political system of “free market”
especially as it tends to be concentrat-
countries encourages and supports
ed in areas of economic decline and
business, which in turn is expected
among disadvantaged populations and
to provide jobs, but only in that or-
rises abruptly when there are econom-
der, and with the jobs being a resid-
ic or financial crises. In the euro area,
ual and an indirect result after other
for example, overall unemployment
policies are implemented. Although in
reached 12 percent in 2013 and was
theory a group of unemployed work-
still 10 percent in 2016, with much
ers could hire a capitalist to employ
higher rates in some countries (Greece
them, this never happens in practice
at 24 percent and Spain at 20 percent)
(although there are other models such
54                 The Journal of Bahá’í Studies 28.1-2 2018

as cooperatives and worker-owned             with its consequences is called for.
businesses that have a mixed record              Although protectionism is not the
but are worthy of study). While in           answer, ways need to be found to im-
principle anyone in America can start        prove the resilience of industries that
a business, and new, small business-         are subject to competition, whether
es are a very dynamic portion of the         foreign or domestic, or to find alter-
economy, to start a business one needs       native employment for those who find
both know-how and access to capital,         themselves displaced. The concern
which excludes a very large part of          now is not only with manufacturing
the total population.                        jobs, but also white-collar jobs that ap-
The solution to unemployment is           pear in danger from developments in
not protectionism—the raising of             artificial intelligence and other infor-
barriers to trade to “protect” domes-        mation processing technologies. How-
tic industries and jobs. Protectionism       ever, if we step back from thinking
engenders retaliation by trading part-       only in terms of the present economic
ners and can lead to a trade war, dam-       structure, we can see that the world
aging all countries involved. It also        is far from having run out of things
effectively freezes the status quo, lead-    that need to be done to improve our
ing to complacency in protected in-          lives and our environment. Whether
dustries and killing the dynamism of         caring better for the elderly and the
an economy. On the other hand, free          sick, beautifying our cities and our
trade can increase inequality. While         homes, enjoying more live music and
there may be significant economic            drama, reading more creative writing,
gains from trade, the way those gains        reversing the degradation of nature,
are divided is subject to negotiation,       improving and extending education,
and the stronger partner is likely to        or other vistas opening before human-
capture the larger share. Also, while        ity that we cannot now even imagine,
proponents of free trade argue that          there should be an infinite amount of
the gains are big enough to compen-          productive work for humanity.
sate those who lose, it is challenging           The problem, then, originates in
to find appropriate ways to effect such      the economic structure, in the difficul-
compensation. Because many of the            ty of finding ways to pay people for
long-term unemployed are likely to be        new types of work. It has been pro-
poor as a result of their joblessness,       posed that government programs be
some of the practical considerations         established that would provide work
relating to addressing inequality also       when the private sector fails to ade-
apply to trade policy. Thus, while pro-      quately fill this need, like the Works
tectionism is a crude tool applied, and      Progress Administration (WPA) pro-
often misused, in a world of sovereign       gram in the United States during the
nation states, a fairer structure for reg-   depression of the 1930s (Tanden et
ulating international trade and dealing      al.). But a more effective, or perhaps
New Directions for Economics                             55

complementary, approach could be to         countries with weak institutions, gov-
harness and encourage capacity at the       ernment regulations and corruption
local level for social compassion and       go hand in hand, and dealing with
support, as mentioned above, through        officials is the greatest challenge an
personal interaction with each in-          entrepreneur faces. It can be very hard
dividual leading to a knowledge of          for a small business to survive when
their needs and abilities, which likely     competitors who pay bribes or use in-
would include questions of education,       side connections enjoy overwhelming
training, and health care. The lack of      advantages. Principled entrepreneurs
such compassion can often be traced         in such an environment may simply
to prejudices of all kinds, including       have to give up that line of work and
class, race, and gender; to biases in       move to something else that may be
the education system and in hiring          less remunerative but can help to bet-
practices; and to a legal and economic      ter align their working life and their
system that favors and extols the rich      values.
and powerful. Perhaps a greater sense          When someone is starting a new
of compassion in communities and a          business or is working in a very small
breaking down of the barriers created       business, it is important to think clear-
by prejudice will motivate people at        ly about objectives, priorities, and in-
the local level, on their own initiative,   centives. Fortunately, the current legal
to find ways to employ the needy. In        structure in most countries allows
this way, the needy could contribute        for many types of business entities,
something valuable to the community,        including corporations of different
as opposed to simply receiving charity,     sizes, family-owned businesses (the
and community solidarity would be           predominant business form in many
enhanced.                                   countries), cooperatives, and sole pro-
prietorships, with a lot of flexibility in
THE ORGANIZATION OF BUSINESS                internal organization. And there is al-
ENTITIES                                    ready a great deal of experimentation
specifically aiming to address the needs
For businesses attempting to behave         of all stakeholders, including workers,
ethically, it is difficult to know how      customers, and the broader society, as
to balance social and moral objectives      well as managers and investors, in the
with the profit motive. At a personal       field called social entrepreneurship, a
level, an individual can try to choose a    field in which Professor Ashraf is ac-
profession that maximizes social wel-       tive.16 But these experiments are still
fare and minimizes conflict with his
or her values. But in societies that are      16 One of her roles at the Lon-
don School of Economics is serving
riddled with corruption and perverse        as research director of the Marshall
incentives, it can be very hard to avoid    Institute for Philanthropy and Social
difficult moral choices. In the many        Entrepreneurship.
56                 The Journal of Bahá’í Studies 28.1-2 2018

limited, with social and environmental       accord with the vision of the Univer-
impact objectives being mostly a mat-        sal House of Justice in its 1 March
ter of public relations and spin rather      2017 message regarding innovation at
than true aims of corporate policy.          the working level. There is certainly
The behavior of large and finan-         plenty of scope for experimentation
cially powerful enterprises is another       in the way businesses are run, and
central issue in many countries. The         there is also a clear role for academic
culture that primarily values profit         researchers to study different models
and outsmarting competitors can lead         using rigorous methods as part of the
organizations into behavior that is ex-      learning process.
tremely damaging to society and even
illegal. Witness the recent scandals         THE ORGANIZATION OF PUBLIC
over emissions produced by Volkswa-          SERVICE AND THE SIZE OF THE PUBLIC
gen automobiles. The general culture         SECTOR
is likewise greatly affected by the re-
sultant emphasis on overconsumption,         Governments are a very large part
outward appearances, and a superfi-          of modern economies. There is a
cial, materialistic view of life. Individ-   never-ending political battle over
ual workers or managers in such en-          the proper size and scope of govern-
terprises have to deal with an internal      ment and the taxes that support it.
culture as well as an external environ-      The private sector is subject to many
ment that might not accord with their        shortcomings, prompting the need for
values. Even the most well-meaning           regulation, but the public sector suf-
people are affected by the culture and       fers from its own afflictions, primarily
incentive structure in which they find       those of perverse incentives. So one
themselves and can face difficult moral      aspect of the policy challenge is how
challenges.                                  to make public service entities work
So the question is, how do we            better.
change this type of business behavior?           In a bureaucracy, to protect and
A Bahá’í-inspired organization called        expand one’s domain it is usually nec-
ebbf (ethical business building the fu-      essary to spend all of one’s budgeted
ture) has been serving for twenty-sev-       resources and find justifications for an
en years as a forum and organizer of         increase in the next budget cycle. If
conferences for businesspeople and           one’s budget is under threat, a com-
anyone interested in ethical business        mon tactic is to cut or threaten to cut
practices, helping to meet a need for        the most visible and important activi-
the exchange of ideas, best practic-         ty. A true effort to eliminate waste and
es, and moral support.17 It seems to         improve efficiency is rarely rewarded.
Innovation is almost absent. Armies,
17 For more information, visit their       schools, police and fire departments,
website at http://ebbf.org/.                 and so forth operate now more or less
New Directions for Economics                           57

as they did a century ago. How, then,      and dense, with so many cross refer-
do we create incentives within large       ences, sometimes circular, that it can
bureaucracies to improve performance       be difficult to discern the intent even
while minimizing costs? How do we          after careful study. Although it is an
introduce a more consultative and          attempt to produce a just system based
service-oriented culture? How can          on clear rules, it ends up becoming an
organizations, and indeed whole soci-      enormously expensive, time-consum-
eties, bring about moral and altruistic    ing disaster. And that is just the US
behavior?                                  federal government. There are also
In Western countries it is wide-        state and local codes. For example, the
ly believed that the rule of law, with     California code covering general edu-
appropriate institutions (police and       cation (public schools) has more than
courts), are a chief source of motiva-     8,800 articles, some of which are quite
tion for citizens to behave well. It is    lengthy and contain numerous subsec-
also recognized that a “capitalist” sys-   tions. The situation is so extreme that
tem based on the incentives of profit      is has become absurd.
and personal enrichment produces              Perhaps the solution to this central
many “negative externalities” (neg-        dilemma of economic policy—how to
ative effects on others and society),      achieve economic justice through fair
and that such tendencies need to be        and enforceable rules—is to look at
curbed through laws and regulations        the problem from a different perspec-
imposed by the government. In reality,     tive. As mentioned above, instead of
however, laws and regulations and the      assuming that individuals are mainly
institutions that enforce them can only    motivated by self-interest and greed
affect marginal behavior, i.e., the most   that needs to be constrained, greater
extreme cases of deviation, while the      reliance needs to be placed on the mor-
behavior of the general population         al development of the individual and
is guided more by unwritten cultural       the moral standards of society. It is
norms. Furthermore, people are clev-       here that Bahá’ís and those who sym-
er in finding ways around laws and         pathize with Bahá’í principles must in-
regulations. A modern economy is           creasingly demonstrate the power of
complex and changing, and the chal-        individual commitment to moral be-
lenges of responding to problems           havior, while eschewing the religiosity,
as they arise through new laws and         closed-mindedness, and sense of supe-
regulations means they proliferate,        riority that many people find so objec-
eventually strangling economic activ-      tionable in the attitudes of organized
ity and innovation. The US domestic        religions. In organizations as well as in
tax code (Title 26), for example, con-     society as a whole, this approach may
tains 100 chapters and almost 10,000       entail having fewer meaningless rules
sections, each having up to four layers    and regulations and relying more on a
of subsections. It is so poorly written    common sense of what is decent and
58                The Journal of Bahá’í Studies 28.1-2 2018

moral behavior. How such an approach       argue that the contribution of the
can be implemented in practice, how-       financial sector to the welfare and
ever, is probably a question of learning   productivity of the US economy actu-
from experimentation, much the same        ally warrants over one-quarter of all
process as innovation in businesses.       domestic corporate profits. It is quite
clear that the sector is still capturing
THE FINANCIAL SYSTEM                       extraordinary benefits because of its
position of power and access to infor-
The financial crisis of 2007–08            mation, often by blatant exploitation
demonstrated that problems with the        and even corruption (Kotlikoff 1–122).
financial system can be extremely              As a result of the crisis, some econo-
costly and damaging. The average em-       mists and former bankers have spoken
ployment rate of developed countries       out about the need for a fundamental
only recovered to the pre-crisis level     rethinking of the structure of modern
nine years later (OECD, OECD Em-           banking and finance, among them for-
ployment 22), prompting political back-    mer governor of the Bank of England
lash and efforts to make the financial     Mervyn King.18 Perhaps most inter-
system more stable through increased       estingly, a proposal known as the Chi-
regulation and higher capital require-     cago Plan, first made in the 1930s and
ments. However, heaping more regu-         supported by the famous Yale econo-
lations on an already highly regulated     mist Irving Fisher, has been revived.
sector brings costs with it, and highly    Rather than allowing banks to create
paid, highly incentivized bankers and      money whenever they make a loan,
their lawyers continue to find ways to     subject only to general restrictions on
avoid or exploit regulations and max-      their level of capital and reserves, the
imize their profits. In this regard, it    plan proposes that only the govern-
is instructive to look at the outsized     ment be allowed to create money and
proportion of total corporate profits      that banks be restricted to managing
in America earned by financial sector      it. This idea, which comes in differ-
companies. In the 1970s and 1980s          ent flavors and is now often referred
they earned on average 17 percent of       to as “narrow banking,” “full-reserve
all domestic corporate profits. The fig-   banking,” “100% reserve banking,” or
ure jumped by 10 percentage points in      “limited purpose banking” has been
2001 and reached over 37 percent in        supported and elaborated recently by
2002. Even after the financial crisis of   a number of respected economists19
2007–08 and the scaling back of some
of the speculative and exploitative ac-       18 See King’s book The End of Alchemy.
tivity in the sector, the industry still      19 See, for example, John Kay’s arti-
captured 27 percent of all corporate       cle “Should We Have ‘Narrow Banking’?”
profits in 2016 (US Bureau of Eco-         and his book Other People’s Money; Lau-
nomic Analysis). Few could seriously       rence Kotlikoff ’s Jimmy Stewart Is Dead;
New Directions for Economics                          59

and other writers (Jackson and Dyson)      the classic example in economics of
and in an IMF working paper (Benes         negative externalities. The usual pre-
and Kumhof). One virtue of such a          scription is government regulation,
system is that it would eliminate the      although, as noted above, the actual
largest source of instability in the       implementation of regulations can be
current financial system by reducing       highly problematic, and in this arena
or eliminating financial risk-taking by    there are large and continuing polit-
government-backed financial institu-       ical battles. But pollution, or simply
tions (which leads to “moral hazard”       trash or lack of maintenance, can
or excessive risk-taking) and forcing      be an important local issue as well,
investors to accept such risk directly.    amenable to local solutions. Progress
The fact that Bahá’u’lláh has permit-   in reversing environmental degrada-
ted the charging of interest does not      tion may also depend in large part
necessarily imply that the government      on education, increasing the public’s
should assume a major part of the risk     awareness of the nature of the prob-
in the banking system, as is currently     lem. In this context, it is notewor-
the case. Because the ups and downs        thy that Bahá’í junior youth groups
in finance generally benefit “insiders”    in different parts of the world often
who can make fortunes at the expense       choose, on their own initiative, a local
of the general public, greater financial   cleanup, park beautification, or gar-
stability would also reduce the inequi-    dening project as a first service proj-
ties in the present system and would       ect. The benefits can often far exceed
likely encourage capital to flow into      the stated goal of the project itself
more productive and less speculative       or the education of the youth, as the
investments. This is a topic that could    community sees the interest of the
benefit from further study.                young people in improving their sur-
roundings and begins to question its
NATURAL RESOURCES AND                      own indifference and inaction. When
PROTECTING THE ENVIRONMENT                 a junior youth gardening project in a
blighted neighborhood of Baltimore
Protecting the natural environment         was mowed over by a city worker,
and enhancing the manmade envi-            the youth involved turned to social
ronment are natural priorities for         media to publicize the incident and
a community that emphasizes the            soon the local television station was
common good. Environmental pol-            on location filming, resulting in the
lution, often caused by actions that       deputy mayor helping to replant the
might benefit one individual or com-       garden amid more publicity for this
pany but negatively affect society, is     public-spirited initiative by the youth
(Sobhani). In this process, the youth
and Adair Turner’s Between Debt and the    also develop an important capacity for
Devil.                                     positive social action.
60                 The Journal of Bahá’í Studies 28.1-2 2018

Of course, although drawing the             When moral consensus in society
attention of youth to environmental         breaks down, corruption flourishes.
problems and encouraging them to            Corruption requires access to power.
take action, however modest, is an im-      The corrupt are therefore in a position
portant educational step and may have       to protect themselves very effectively
broader impacts, social structures that     and can only be constrained when a
lead to the despoiling of the environ-      broad social movement arises in oppo-
ment are often linked to the exploita-      sition, such as the non-violent move-
tion of populations, not just of natural    ment spearheaded by Gandhi in India
resources, and thus are related to the      and the many color movements that
issues of prejudice, class divisions, and   started with Solidarity in Poland.
inequality discussed above.                    Thus, although studying tech-
niques for curbing corruption is use-
CORRUPTION                                  ful, the broad political will to actually
stop corruption will only arise when
Corruption, broadly defined to in-          populations can rally around a moral
clude privilege, injustice, exploitation,   consensus, a “shared ethic” (UHJ, Mes-
and organized crime, is arguably the        sage to the Bahá’ís of the World dat-
most important economic and politi-         ed 1 March 2017). For Bahá’ís, then,
cal problem of our time. In Western         the priority is to work on awakening
countries, public trust in institutions     and developing the moral conscious-
of all kinds regularly hits new lows.       ness of the population, and this effort
For example, in recent Gallup polls         is most effective when starting with
only 8 percent of Americans rate            children and youth. Individuals can
congressmen as highly ethical, below        also lead by example. As the standards
9 percent for car salesmen (“Hones-         in public service decline, the need for
ty/Ethics”). And President Barack           people who establish a reputation for
Obama, in his first State of the Union      competence, integrity, and dedication
address, declared: “We face a deficit of    to service increases, and their example
trust.” Economists can argue about          can help raise the expectations of the
the relative merits of different eco-       public regarding the qualities required
nomic systems such as capitalism and        for such service. As always, actions
socialism, but the reality, as we can see   speak louder than words.
plainly in the world, is that any system       The impact of dishonesty and
can be more or less corrupted, and the      selfishness on economic prosperity is
degree to which it is—more than any         particularly pernicious, as can be seen
other variable—explains success mea-        in the growing reaction against cor-
sured in terms of the general welfare       ruption worldwide. Whether or not
of the population. Corruption has thus      corruption is actually getting worse,
moved to the center stage in much of        however, is an interesting question,
the political struggle of our time.         given that human beings have been
New Directions for Economics                           61

exploiting their fellow man at least       to publish, but it also likely reflects
as long as recorded history. It may be     financial and other incentives to pro-
that it has merely become more visible     duce the results desired by interested
and harder to hide as technology has       parties, as well as the general decline
greatly enhanced the general public’s      in moral standards in society. Such an
access to information and increased        erosion of ethics strikes at the heart
the ease of and incentives for leaks       of a process of discovery of the truth
of confidential information. The re-       that has been central to the leap in hu-
action to corruption may also reflect      man welfare in modern history.
a declining public tolerance for such          An extreme, but instructive, exam-
behavior and a stricter enforcement of     ple of the forces at work is the case
laws against criminal behavior, mon-       of David Kelly, a Bahá’í scientist and
ey laundering, theft, embezzlement,        authority on biological warfare who
blackmail, illegal resource exploita-      was asked by the British government
tion, etc., with the resultant height-     to investigate the existence of weap-
ened publicity of such wrongdoing,         ons of mass destruction in Iraq in
giving an appearance of an increase        2003, when this was a high-profile
in the underlying activity. In any case,   political issue. He reported honestly
it is encouraging that the public is be-   that he found none, but his findings
coming more aware and less tolerant        were in direct contradiction to a public
of corruption, raising hope that this      statement on the subject by the Brit-
central problem of modern gover-           ish prime minister and were ignored,
nance will be increasingly addressed.      although later proven correct (“Dr
David Kelly”; Gilligan). Other exam-
INTEGRITY IN SCIENCE AND PUBLIC            ples of the overwhelming influence of
DISCOURSE                                  vested interests, from industry and the
field of nutrition and public health, are
Corruption in the broad sense is also      recounted by Dr. T. Colin Campbell (in
eroding the foundations of public dis-     part 4 of The China Study) and Gary
course and scientific endeavor. Scien-     Taubes (in The Case Against Sugar).
tific method involves the publication         More recently, concern is rising
of experimental results so that they       that public discourse is being corrupt-
can either be confirmed or rejected        ed by political propaganda, including
by the scientific community. Unfortu-      “fake news” and “alternative facts,”
nately, the number of scientific papers    and undermined by a tendency in the
published in the leading journals that     Internet age for people to listen only
cannot ultimately be confirmed by          to opinions and news that they want
other scientists is creating “growing      to hear.
alarm” (“Challenges”; Baker; Nosek            In economics, there has already been
et al.). Presumably, this trend part-      a welcome move to publish the datasets
ly reflects the pressure on scientists     underlying studies and publications,
62                  The Journal of Bahá’í Studies 28.1-2 2018

leading to useful debates—for exam-           than those favored at present, even
ple, debates about Piketty’s method-          assuming that social structures can be
ology and whether his conclusions             transformed over time by the positive
are justified. However, we should not         influence of a new religious revelation
underestimate the difficulties that an        and by the destructive breakdown in
economist may face if he or she chal-         the present order that, in the words of
lenges the accepted wisdom of the             the Shoghi Effendi, “welds the limbs of
field or of public policy or threatens        humanity into one single organism, in-
vested interests. Those approaching           divisible, purified, God-conscious and
economics from a Bahá’í perspective           divinely directed” (Messages 45). It is
will need to rise to the challenge of         also challenging to visualize how no-
trying to harmonize their work with           ble spiritual principles can be applied
high principles of integrity, honesty,        through the actions of individuals and
and an unbiased perspective.                  communities in the context of today’s
fractured, disoriented societies. But the
CONCLUSION                      Universal House of Justice is now call-
ing upon Bahá’ís to increasingly face
The principle of the unity of man-            this challenge of making their actions
kind has far-reaching implications. It        coherent with their principles. This ar-
encompasses the need to break down            ticle has been a reflection on what form
the barriers between groups of people,        such efforts might take and on the pos-
including between intellectuals and the       sible relationship between the academ-
general public, and to involve everyone       ic field of economics and the actions
in the process of knowledge creation          of individuals and communities within
and social and economic development,          the circumstances in which they find
empowering people to become the pro-          themselves.
tagonists in their own development               When examining some of the ar-
within a social context characterized         eas of current debate and concern
by reciprocity and mutual support. A          about the functioning of the economic
view of God’s creation as one whole           systems of the world, it becomes ap-
also implies the breaking down of             parent that the Bahá’í teachings have
barriers between fields of study. It im-      a great deal to contribute on these
plies viewing human society as a single       subjects, opening up the potential
system, one which we choose to view           for useful contributions both by pro-
and study from different perspectives,        fessional economists inspired by the
while becoming increasingly aware of          Bahá’í teachings and by individuals
the interrelationships within the whole.      and communities generating knowl-
It presents enormous intellectual chal-       edge about how spiritual principles can
lenges but also great opportunities.          be applied to economic life. Indeed, one
It can be difficult to conceive of a so-   could conclude that from the point of
ciety based on very different principles      view of the Bahá’í teachings, much of
New Directions for Economics                             63

the present field of economics needs         life situations, with integrity and a
to be rethought. The process of gen-         desire to be of service to others, they
erating knowledge at the individual          may well find ways not only to change
and local level holds out the promise        their own lives, but to influence those
that as Bahá’ís endeavor to act in accor-    around them and gradually transform
dance with their principles in diverse       the structures of society in general.

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-- New Directions for Economics (Used by permission of the curator)