SMALL
IS
BEAUTIFUL
Study of Economics as if people mattered
Ernst Friedich “Fritz” Schumacher
Reviewed for Ashesi – Leadership III – Spring 2016
Stephen Adei
BIO or PROFILE
• Born 1911 in Borne, died in 1977 in Switzerland, educated
at Oxford and Columbia
• Internationally became influential British economist
thinker, statistician, serving as Chief Economic Advisor to
the UK National Coal Board for two decades.
• Most famous for his phrase “Small is Beautiful”
• His famous work- Small is Beautiful was published in 1973
and ranked among the 100 most influential books since
WWII
CORE MESSAGE
• “ Excessive
materialism and meaningless growth are
detrimental to human development and that smaller sized,
appropriate technologies and societies will be beneficial to
both humans and the environment”
• His core philosophy is “enoughness”, appreciating both human
needs, limitations and appropriate use of technology
• Faults conventional economic thinking of “growth is good” and
“bigger is better”
• Gross national product is not appropriate measure of well
being and the need to balance materialism with ideals such as
justice, harmony, beauty and health
FURTHER ELABORATION OF MAIN MESSAGE
•
“Maximum satisfaction from minimum consumption”.
•
“Economics as if people mattered”. Mass production should not be our focus.
•
Different perception of work-not just unbridled accumulation but part of realizing total
person
•
Small is preferable; He sees in Buddhist Economics a prototype of how society should be
organised. “Small is Beautiful”
•
Everything needs structure to survive
•
Foot-looseness corporation (MTN) is as a result of mass communication and
transportation and driving everything towards the mega- cities, corporation and must be
checked by new form of ordering society and business in small groups with human face
•
The poor seems to have no place in industrial economics
ARGUMENTS
• The
focus - Human beings as against goods.
• Production
and consumption - making long-lasting goods.
• The
measurement of standard of living. GDP is not an
accurate measure of welfare
• Sees work in
a different light – and not favourably disposed
towards increasing mechanisations, and drift of women into
the working world.
•
Emphasises renewable as against non-renewable resources - tree
planting,
•
Local resources for local consumption (exports - imports).
•
Vulnerable structures of today (internationalization or globalisation)
cause foot-looseness - migrations, unemployment and slums.
•
Regionalism (that local organisation of life and production) is the only
way the poor can be included in industrial economy.
PRODUCTION
• Size
The creation of “Megalopolis” leads to footlooseness
And that must give way using local resources in
production for regional use
-Economics of Gigantism incapable of solving today’s
problems rather production should be in smaller units
-The Buddhist Economist’s is recommended:
Understanding of Consumption is better
RESOURCES
•Non-renewable resources must be
used only if they are indispensable
and only with greatest care of
concern for conservation.
Otherwise to use them
extravagantly is an act of violence.
WORK
Buddhist perspective of work
The opportunity to utilize and develop his
faculties
Overcome egocentredness through
communal tasks
Bring forth the goods and services needed
for existence not unbridled luxury.
Difference Between Western Economics And Buddhist
Economics (Not In Small Is Beautiful But Idea Is There And Fully Expanded In
Latter Essay)
• Idolatry of
Giantism – “The bigger the bill the harder
you ball” - Wiz Khalifa.
• Small is
better; s ize leads to brain drain
• Self
interest vs. Anatta (one self) - Humans are homo
reciprocals
• Ahimsa
• Gross
(non-violence)
national Gross vs product national happiness
CRITIQUE
• Could not
• Lack of
keep up with increasing population.
incentives for higher productivity
• Idealist but not
• Necessity of
• Neglect of
seemingly feasible.
trade discounted
women in labor force.
CONTIBUTION TO GOOD SOCIETY
DISCUSSION
• Strong on
community
•Strong on
equality, but
•Weak on
•Liberty is
efficiency
not a major issue addressed
in his work
IMPACT ON LEADERSHIP THINKING
•Challenges our perception of work and
organization of work to give it human face
•Could incorporate his views I think in
mega organisations in organising
workforce into teams with better
emphasis on mutual well being than cutthroat competition