The Buddha spoke about assisting the endeavours of the populace in working towards their socio-economic well-being

Economic and social policies based on Buddhist principles were the foundation of peace and prosperity in ancient Sri Lanka. A close examination of this Buddhist foundation would be of assistance to attain, once again, the cherished goal of peace and economic prosperity.

Generally speaking, the word attha as ‘well-being’ relates to the various aspects of man’s socio-economic development – such as economic prosperity, good governance, education, healthy lifestyle, rule of law and morality. It refers to social progress due to the harmonious unification of all the above factors, contributing to the prosperity and peaceful co-existence of a people. A socioeconomic system based on Buddhist principles and practices could easily be formulated to suit today’s modern progressive society.

Generally speaking, the word attha as ‘well-being’ relates to the various aspects of man’s socio-economic development – such as economic prosperity, good governance, education, healthy lifestyle, rule of law and morality. It refers to social progress due to the harmonious unification of all the above factors, contributing to the prosperity and peaceful co-existence of a people

The current economic thought is based primarily on the works of Adam Smith and Karl Marx, the fathers of the theories of free enterprise and socialism. Neither of these systems pays attention to, nor considers, the inner development of man as an important ingredient in the growth of society. 

Hence there has been a rapid deterioration in human values and standards of behaviour in societies following these systems. Thus, what the world requires today is a socially stable economic system which yields the highest place to man’s moral development and cultivation of human values.

The Buddha realised the importance of the external environment created by the laws of a country etc, in assisting the endeavours of the populace in working towards their socio-economic well-being. Hence the Buddha delivered many discourses on how to achieve human well-being, through peace and prosperity. In the Kūṭadanta Sutta, the Buddha has explained the importance of equitable distribution of wealth amongst its people, and the satisfaction of the basic needs of the populace, if peace and prosperity, and freedom from crime were to be achieved in a country.

For economic stability and well-being, the Buddhist system stresses four factors:

1. Uṭṭhāna Sampadā - production of wealth through skilled, earnest endeavour; 2. Ārakkha Sampadā - its protection; 3. Samajivikatā - living within one’s means; and 4. Kalyāṇa Mittatā - association with the virtuous i.e. good counsel

Vyaggapajja Sutta

The Buddha has encouraged the accumulating of wealth by righteous means. There are five forbidden trades according to the Buddhist texts. And ancient Kings of Sri Lanka eschewed them in their economic planning. The forbidden trades were trade in arms or weaponry, trade in living beings (slavery, prostitution), trade in meat or flesh, trade in intoxicating and addictive substances and trade in poisons.

The main economic pursuit was agriculture even during the time of the Buddha. Hence in the discourses many references were made to agriculture. In the Sada Puñña Pavaddhana Sutta, it is mentioned that providing irrigation facilities yields increasing and continuous merit. In another discourse it is mentioned that the greatest asset for agriculture is cattle, from which man obtains milk, ghee, curd and butter. Cattle are the best friends of the community. Hence our ancient kings constructed irrigation tanks and prohibited the slaughter of cattle, under any circumstance.

In the discourse pertaining to a layman’s happiness (Gahapati Sutta), the satisfaction derived from the possession of wealth obtained through righteous means (atthi sukha) is given the foremost place. It should be adequate to support oneself and family, to help relatives and friends, and to give to the needy and the deserving, when occasions arise. Such enjoyment of one’s income appropriately and wisely is the second happiness derived (bhoga sukha). These two elements would lead to contentment and inner satisfaction, which would form the basis for the moral and spiritual development of man, necessary for greater social good. Obtaining money on credit was prevalent even during the Buddha’s time. However, Buddhism does not approve excessive borrowing. The Buddha advocates a life free from debts (anaṇa sukha) as being conducive to the happiness of a layman. These would apply even to a country.

What has been righteously obtained should be protected from burglary, fire, floods, forfeitures etc. This is ārakkha sampadā. The Buddha has extolled the virtue of personal savings. 

Hence this also forms a part of ārakkha or protection. Details of the proper use of one’s earnings is given in the Sigālovada Sutta, where the Buddha admonishes Sigāla to apportion one’s earnings into four and to spend one portion for one’s daily upkeep and that of one’s family, two portions for investment in one’s occupation, and to set aside the fourth for any emergency.

The third of the four basic principles for economic stability and well-being is samajīvikatā - living within one’s means. A person should spend reasonably in proportion to his income, neither too much nor too little. The Buddha extols simple living as being most conducive even to mental development. A society progresses to the extent the mind of the individual is developed.

Administration of such a society becomes easy when law and order is well established. 

The last of the four principles for economic and social well-being is kalyāṇa mittatā:companionship or association with the good and virtuous. Such a person or body of persons will always give good counsel and advice on matters of state business or personal life. 

By advocating contentment along with increase in production and the equitable distribution of wealth, it is possible to reduce economic unease. At the same time, such action will help to inculcate the value and habit of simple living. With righteous living the human mind will advance both morally and spiritually. This will result in reducing social disharmony and insurrection, which arise first in the minds of persons and then manifested externally. Peace and prosperity of a country will be assured. In this process, everyone from the highest in the land to the lowest will have a role to play and will become partners of peace and progress.