More, more, more

The Friday Essay from The Independent by John Lanchester and entitled 'More, more, more' is well worth a read, partly because it critiques our overconsumption in the light of the world's dwindling resources and also because it highlights the value of relationships in providing real richness for our lives. Here are some highlights from Lanchester's essay:

"... "Richness is a relationship between two people." This observation, by the Italian economist Ferdinando Galiani, was first brought to my attention by James Buchan, and it seems to me that it is one of the truest things ever said about money ...

much of the discourse about money is in some sense abstract, i.e. it is self-referential and circular – people talking about money in terms of its effects within the world of money. When we think about it in the non-abstract, i.e. the effects of money in the wider world, the one idea we need to hold in our minds is that richness is a relationship. Richness, the idea of having plenty of money, is not an inherent state, nor is it an absolute state. Richness is about the amount of money you have compared with the people you see around you. It's about where you are in relation to others, and where they are in relation to you, and whether you can have the things you want and other people have ...

We are a desiring species. We want. It goes very deep in us. Perhaps we should just accept that we want, and we particularly want what we can see that other people have but we don't.

Unfortunately, we can't do that, for two reasons. First, the incitement of envy is built into the mechanics of capitalism and advertising. We are made to want more and more, not just as an accidental feature of modern life but as a fundamental principle of the modern economy ...

At the moment, we are stuck on what is called the "hedonic treadmill": as you have more and more, your idea of what it would be to be happy keeps receding just out of reach. It's always the next pay rise, the next purchase, the next place you move to or where you go on holiday, which will make you happy. We in the West can do something that no people in history have done: we can show the world that we know when we have enough. As the planet runs out of resources, due mainly to the fact that everyone on it wants to live an equivalent lifestyle to those of us in the West, this lesson would have the potential to offer a new model for how we should live. If the people who have everything are content to live with less, maybe the whole world will consider the virtues of knowing when to stop. We have no choice other than to learn this at some point, because the planet is not an all-you-can-eat buffet. It's going to run out.

We are either going to be saved from the problem of over-consumption by some magic technological fix, or we are going to face planetary crisis, or we are going to learn to consume less. We have to start thinking about when we have sufficient – sufficient money, sufficient stuff – and whether we really need the things we think we do, beyond what we already have. "La ricchezza è una ragione." We are richer and more fortunate than most of the people who have ever lived. We should look less at what our next-door neighbours have, and more at what the rest of the planet dreams of having. Then, we should try to learn to be content where we are. In a world running out of resources, the most important ethical and political and ecological idea can be summed up in one simple word: "enough"."

John Lanchester will be delivering a sermon for the School of Life on 'Enough' this Sunday - see www.theschooloflife.com.  

Making money or making a difference - are they opposed? (2)

Making money or making a difference - are they opposed?

• In my opinion it's relationships that make economies work; so you can make a profit and make a difference if you put other people first.
• Money can be made in an ethical or in an unethical manner - and it can also be used ethically or unethically.
• It depends how money is made.  Speculation and separating means from ends in finance and economics is unjust and undermines  spiritual, social and environmental value.
• NO - If you are making money to allow you to make a difference. YES - If you are making money at the expense of people.

'Profit vs Prophet' - Harmander Singh

When I was contacted, I was told that the aim of the seminar is to explore whether making money and making a difference are opposed?

My immediate thought and reaction to the question was that they are NOT opposed as long as the making of money is by honest means and if it is NOT the sole purpose of making money and the making of difference is just an accidental by-product. The fuller answer is that they can be complimentary.

I also said to myself, it is why I personally have achieved neither.

Looking at the topic in Sikh terms, I believe that being rich and being a Sikh are not mutually exclusive. One can be rich and still be a good Sikh. The Sikh Gurus bestowed upon the Sikhs the concept of "Miri-Piri" and "Raj Jog" which is princely living according to Gurmat (Gurus teaching/thinking) and therefore attuned to the Almighty.

I felt I needed to back my thoughts up with some Scriptural excerpts in case someone says I am making it up – and luckily I found loads but will just give you three that were suggested to me by Tarlochan Singh - a Sikh friend on the internet.

As the malady of egoism is annulled, by grace of the Master, shalt thou practice sovereign yoga (Rajyoga)]

(5^th Guru, Guru Arjan Dev, Guru Granth Sahib, 211)

God's devotees, even though householders, in contemplations of the essence of enlightenment to worldly pleasures remain indifferent.

(3^rd Guru, Guru Amar Das, Guru Granth Sahib, 599)

Sayeth Nanak: By contact with the Master is the true device of living perfected. In a life of smiling playfulness, enjoyment of wear and food, Is attained liberation.

(5^th Guru, Guru Arjan Dev, Guru Granth Sahib, 522.)

(English translations by Gurbachan Singh Talib)

Miri-Piri is the balance between Spiritual and Temporal living and denoted by the two crossed swords in the Sikh symbol the Khanda.

All Sikhs are encouraged to be householders – this does not mean property developers or Peter Rachmans. Being rich is not a pre-requisite to being a Sikh. The point I made was that it is okay to be rich as long as you live according to the principles of Gurmat and not indulge in un-Sikh businesses or those businesses which force you to a life that is anything but "honest living."  Here, the three basic principles of Sikhi always apply.  These are: Naam Japna, Kirat Karni and Vand ke Shakna.

Where, Naam Japna is to remember God lovingly during all waking moments.

Kirat Karni means making an honest living that is according to Gurmat living. I doubt if selling alcohol, tobacco, illegal drugs, and being in the adult entertainment business is according to Gurmat at all because these kinds of activities promote what Gurmat strictly forbids. In Britain and Europe, Sikhs own a large number of businesses that sell alcohol and and tobacco. Many of them are stinking rich and some claim to make a difference too.

A bank robber or a thief too cannot claim to do "kirat karni" simply because they use both their hands in doing those illegal and dishonest deeds. I am deliberately making the distinction between dishonest and illegal for tax avoidance and tax evasion fall into a good analogy but, to the poor person who cannot afford well versed accountants, both are dishonest.

Vand Ke Shakna is to share with others, especially the needy and vulnerable. As there is no Welfare State equivalent worth mentioning in certain parts of the world and certainly not in the times gone by, Sikhs donate (Daswandh or Darshan Pehta) whatever they can from their earnings to the Gurdwara – which is more than just a place for congregational worship.  It provides a centre where support of all kinds can be sought either directly or signposted.  This can make a difference for some.

I just make both ends meet and take out Daswandh, but I have never been rich in my entire life. Life has always been a struggle. Regardless, I always feel blessed by the Guru.

Conversely, if a Sikh cannot even make ends meet, he/she cannot take out Daswand and help the needy or contribute to a wider Panthic cause. I know it is not always possible, but a Sikh should strive to be in a position where he/she can help others.

How can this be practised one may ask? I can offer you a story my late father used to tell me which may strike a chord with some rich corporate bankers around the corner.

There was once a rich businessman who came across a holy man (funny how it is always men), and asked for a blessing to make him even richer so he could do some good later on in life although whatever his business was selling was already making a difference to people’s lives anyway.

The holy man thought for a moment and then asked the rich business man what the secret of his success was that made him as rich as he was already?

‘Oh that is easy’ the rich businessman replied, ‘I wheel and deal extensively, stay on top of my business sector, am good with words and people in that I can guess what the buyer wants to hear and I just tell him (yes a man again) exactly that. He buys the product or service and I make a profit – it matters not whether it is the best product I have, or even the right one and will not be what he needs’ the rich businessman continued and ended by saying ‘I obviously do not tell him if he can buy it cheaper elsewhere’.

The holy man paused for a while and then asked the rich business man if people liked him, trusted him and if that mattered to him?

‘Of course, everyone likes to be liked and trusted, but in business one has to cheat, lie and be ruthless to get ahead’ replied the rich businessman. ‘these are the rules of the game and inherent in any business manual written by authorities on the subject in my profession – it is what guarantees a return on investment’ he added.

The holy man took a deep breath, looked the business man straight in the eye and said‘ I will do you a deal that will make you richer both in terms of money and in spirit, what is more, people will also like you and trust you too – my business manual demands a return too and clearly there will have to be an agreement between both of us before I share the technique from my business manual – it happens to be written by a higher authority in my profession and also guarantees a return which is longer lasting’.

‘Sounds great’ said the rich businessman ‘what is the catch or fee for the secret in your profession’s manual?’ he asked.

The holy man continued looking at the highly excited rich businessman and said ‘There is no catch or fee, but you need to follow the instructions religiously (sic) and perhaps make a voluntary donation to a worthy cause from the additional profits you will be making after a short while’.

‘Just tell me the secret and I will give generously’ said the rich businessman, rubbing his hands expectantly.

After shaking hands on the deal, the holy man asked the rich businessman to make a note of each occasion he lied or cheated a customer daily and aim to reduce the total by one or more if he could every day until it reached zero – he must also return each month to give the holy man an update on the progress made.  The rich businessman explained his industry relied on cheating and lying but he had given his word and shaken hands on it so will come back at the end of each month to report back as agreed.

At the end of the first month, the rich businessman came and reported that at first he found it really hard, having to turn away business hurt him but as the weeks passed, it got easier and he had recovered the lost business by the end of the month.

At the end of the second month, the trend of increased business continued as word got around about this ‘honest’ businessman. As he had decreased the number of lies and cheating at a faster pace his business also grew, he had to increase the number of staff he employed to keep up. He had also taken up matters with his suppliers to give him more reliable and quality goods of his own accord. Business and profits were booming beyond all expectations.  He wanted to make a large donation to the holy man or a charity of the holy man’s choosing – but the holy man declined and suggested that the very rich businessman give the donations to causes of his own choosing.

By the end of the third month, the now very rich businessman had stopped lying and cheating altogether, he was wealthier beyond expectations and even more surprisingly, people openly said they liked him – this in turn affected his close friends and even competitors – who all wanted to practice the new technique of not lying and cheating in order to get richer. They soon began following his example and made a real change to society with generous donations to the vulnerable and needy.

The moral of the story is that you do not have to forgo making money in order to make a difference – while using performance monitoring and bonuses for higher achievements – something in their original business manuals.

Shared faiths response to the credit crunch

The shared faiths response to the credit crunch included in this post originated in the ‘Ethics in a global economy’ seminar held at St Ethelberga’s Centre for Reconciliation and Peace and organised by Faiths in London's Economy (FiLE) in October 2008. A call for a shared faiths perspective on the credit crunch to be developed emerged clearly from the seminar and FiLE undertook to try to facilitate that process.

Two meetings to discuss a shared faiths response were held and two draft documents circulated to a group of interested people for comment. The overall process has included people from the Christian, Hindu, Islamic, Jain and Jewish traditions in addition to representatives of faith-based and inter-faith organisations. One organisation making specific contributions to the document was Green Equity.

The paper was published by FiLE in March 2009. The document was picked up by the Faith Engagement Team in the Department for Communities and Local Government and posted on the G20 London Summit site as part of the Faith Debate section. The full text of the ‘Shared Faiths response’ was published in Volume 12.3 of the ‘Faith in Business Quarterly’, was used by the East of England Faiths Conference as a discussion document for the Rt Hon Stephen Timms MP, then Financial Secretary to the Treasury, to respond to in an open session of their meeting, and  featured in a multi-faith conference in Basildon during November 2009.

Producing a common statement from a diverse group of people was a considerable challenge and FiLE undertook this project as an experiment to see to what extent there were shared statements that could be made by different faiths on these issues. We found much common ground and the ability to understand similar concepts expressed in differing phrases. The use that has been made to date of our document indicates the wider value of such shared approaches.

Shared faiths response to the credit crunch

1. Wealth means more than money

‘Wealth’ is all that human beings receive from others and from the world in which we live. So, shelter, clothing, our abilities, social institutions, our cultures, the Arts, our relationships, the environment are all ‘wealth.’ In most faith traditions, these are seen as divine gifts.

The creativity of human beings means that we develop means by which we utilise and distribute wealth. Money is one such means of wealth utilization and distribution, among many others (such as education or manufacturing), and becomes problematic when pursued in isolation from other means of utilization and distribution. One factor in the current crisis is that money has been treated as wealth and the value of money separated from any tangible reality. Derivative trading is, for example, trading not just in intangibles but in the reflection of intangibles and then reckoning wealth in those terms.

One small example of the broader understanding of wealth that we advocate is that surveys of Londoner’s levels of happiness consistently show that a characteristic of boroughs where Londoners experience the highest levels of happiness are those with an inbuilt lung of creation in the form of the river and parks. Epping Forest has traditionally operated in this way for Eastenders while we also note that those who are financially rich tend to spend their money on art and culture. It may be that, as a result, we should measure Gross National Happiness like Bhutan; a country where this measure signals an attempt to build an economy based on spiritual (in this case, Buddhist) values.

2. The value of work

Work is valued in most faith traditions with human beings viewed as representatives of the divine on earth, in some traditions this extends to human beings being seen as co-creators with the divine. The work ethic is seen as a noble endeavour in many faith traditions e.g. the Muslim Sufi tradition divides the day equally into work, worship and rest.

Hard work and creativity are valuable but are they always appropriately directed? We need to differentiate between the value of the work ethic and appropriate kinds of work. Not all work is appropriate or ethical therefore the value of the work ethic and of human creativity can be dissipated in work that is inappropriate or unethical.

Practices such as profiting from the process of charging and paying interest and lending what you don’t have which have been exposed by the credit crunch would seem to fall into this latter category. We should value productive work but are often divorced from the fruits of our labours.

We all tend to assume that paid employment is the natural means for gaining wealth but, as people of faith, we consider that this assumption disconnects us from divine or natural generosity. Society needs work done and a financial incentive is one way to get it done, but that doesn’t mean that work should be the only or main source of the wealth that we need. The credit crunch may provide an opportunity to consider alternative options, such as a Citizen’s Income.

3. Concerns about credit

The Hebrew Scriptures forbid charging interest to a fellow Jew while the Qur’an forbids charging interest to or receiving interest from others, instead encouraging trade and trade-type financing arrangements including equity based finance. Instead of credit-based banking systems, we commend trade-type banking and the approach of mutual building societies and credit unions. We need banks for current and savings accounts and for business loans (non-debt based using the profit and loss sharing system of equity financing), we need building societies (preferably mutual ones), and we need insurance (a legitimate pooling of risks); but the remainder, we consider are not required and should gradually be removed from the market in an equitable fashion.

4. Structures of greed

Western economies have been inflated through greed, with their economic make-up being based on self-centred acquisition. Economic and political systems tend to be based on immediate profitability not long-term benefits. As a result, much of what we do makes no logical sense. Why, for example, do we sacrifice quality time by working hard in order to have quality time while on holiday or why do we drive to a gym in order to get on a walking machine?

Concerns regarding our economic systems are also to do with transparency. Many faiths reflect on transparency and hiddenness (often in terms of the imagery of light and dark) suggesting that where actions can be hidden, injustice and wrongdoing often occur. Much of what has brought about the credit crunch has been hidden from view and from scrutiny. Transactions have been divorced from human interaction and have therefore been unregulated. Banking practices have taken place ‘in the dark’ hidden by technicalities. In the light of public scrutiny these practices have been found wanting. This is not about scapegoating but about the need for transparent practices.

5. The god of growth

Western economies have been predicated on unlimited growth and this has caused harm to the environment. Developing countries are using the same model. Many natural, God given resources are running out because we have exploited that which we have been given instead of stewarding and sharing them. The argument about whether oil and gas supplies have peaked or not remains unresolved but we are certainly running out. The failure of those two resources would impact on every aspect of our lives and would produce far greater misery that the 'credit crunch', as will climate change. We can’t ignore these wider issues most especially that of climate change. Sustainability and balance are therefore more desirable than growth.

6. Loss of relationships

There is a breakdown in the relational aspects of the economy. Exchanges are occurring in virtual space, trust is being lost and we need to return to our roots in relationships. Practices such as profiting from the process of charging and paying interest and lending what you don’t have, have led to banks no longer trusting each other and no longer lending to one another. In the past, there was a degree of trust in the markets summed up in the phrase ‘my word in my bond.’ It is important to work together in cooperation. There are also social consequences in terms of social cohesion arising from the credit crunch.

7. Support for emerging and developing economies

We should look for methods of ameliorating the financial/environmental misery that continues and develops around the world. Emerging and developing countries are using the same model of economic growth as the West despite the harm that it has caused to the environment. Economies throughout the world need rebalancing in the direction of wealth creation: education; the care of the vulnerable; manufacturing, creative and cultural industries; renewable energy; and agriculture.

8. Time for reflection and restructuring

There can be a sense of hope in this crisis; the credit crunch can be seen a watershed opportunity and not a catastrophe. A year ago people weren’t having the kind of conversations we are having today; that, in itself, is a positive change. Perception is vital in what is understood as being economically viable. 

Some faiths, but by no means all, understand periods of suffering as part of a developmental process. We need to reflect on our experience of suffering and look for causes (i.e. underlying economic fundamentals). There may be natural causes but these may also have personal implications to which we will need to respond. Reflection and action go together. For example, a recent survey found that 25% of respondents are praying or meditating more as a result of the credit crunch.

Not all faith communities think that suffering is ennobling and there can be a polarization around concrete political change versus inner personal change. Both are needed in dialogue, both are on the same spectrum of responses.

We need to reflect on the values that we share. The economy has spiralled a long way from real valuations. We need to link personal, moral and spiritual values with economic values.

It may be that we are at a point in time (like that at the end of the Second World War which led to the development of the UN and the Universal Declaration of Human Rights) which will produce new structures for society. For example, the free market has been shown to be unable to provide its own banks without these being propped up by Government funds. We may be in a moment in time when recession, the credit crunch and the ecological crisis are combining to bring about profound shifts in the global economy. A ‘third way’ or ‘middle path’ is needed between nationalisation and capitalism based on agreed standards of ethics, environmental and social responsibility and a broad understanding of wealth and value.

If we are looking at a restructuring of the global economy, then we could see the economy rebuilt in terms of a broader understanding of wealth with new kinds of jobs (i.e. renewable energies, creative industries, and community empowerment) forming its foundation. Such a restructuring could also provide space for addressing the ecological crisis. Ecology cannot be divorced from economics. For example, the ecological costs of extraction and replacement of the world’s natural resources has in the past been excluded from company accounts but its inclusion would provide a very different picture of the effects of the global economy on the environment.

Companies need to identify and report to a wider range of stakeholders than shareholders alone and a strong business case needs developing for ethical and responsible business practices. All too often companies have associated ethics with bureaucracy, and greed has then led to the use of dubious and fraudulent practices. The extent to which a lack of transparency and fraud has contributed to the credit crunch and to the recession demonstrates the urgent need to form a strong business case and agreed impact assessment matrix for transparent and ethical business practices. We all need to acknowledge our complicity in what have occurred and to redress the extent to which greed has motivated our personal values and practices.

9. Constituencies for action

People of faith form a huge constituency and can motivate people to action. People of faith are also part of rooted communities (e.g. local authority areas) which in some instances are beginning to plan for greater economic resilience. People of faith need to be party to these debates and summits. We have allowed those in power to use the argument that faith is essentially private and not public. The consequence has been that our views are marginalised. This paper is one small means of reclaiming that public dimension for our faiths.

There is no quick fix but, together, we have a vast constituency, one large enough to start sowing seeds of change. We should look for methods of ameliorating the financial/environmental misery that continues and develops, around the world. A proactive assertion is needed from faith communities to argue for non-interest bearing transactions, mutual societies rather than shareholders (although many faiths do not have an issue with shareholders per se but with the view that a business is primarily accountable to its shareholders), and recognition of the role that artists and communities play in generating real wealth. All faiths offer ways of being that are conducive to human flourishing.

10. London, a melting-pot for change?

London has developed as the ultimate world city - in part because of the widespread use of the English language and our location between the New York, Middle East and Far East stock markets, especially Hong Kong and Tokyo – and this is something to be valued and celebrated. London’s position has been as the financial capital of the world. Market forces and financial institutions are at the heart of London’s economy and it is the market that is London which has given the city its social, ethnic and faith diversity. How will this change as a result of economic restructuring? Will London adapt and will it maintain its inclusivity as it does so?

Our hope is that London will adapt and change to a restructuring of the global economy that is focussed on a broader understanding of wealth than money gain and economic growth alone and do so in a way that maintains and develops it’s social, ethnic and faith diversity.