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1 Copyright © 2014 Kotchaworn Chuymanee and Gary N. McLean Buddhist Sustainable Development: Sufficiency Economy as an Alternative Approach Kotchaworn Chuymanee PhD student at Human Resource and Organization Development School National Institute of Development Administration, Thailand Gary N. McLean McLean Global Consulting, Inc.

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Copyright © 2014 Kotchaworn Chuymanee and Gary N. McLean

Buddhist Sustainable Development:

Sufficiency Economy as an Alternative Approach

Kotchaworn Chuymanee

PhD student at Human Resource and Organization Development School

National Institute of Development Administration, Thailand

Gary N. McLean

McLean Global Consulting, Inc.

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Abstract

The purpose of this study was to explore the sustainable development concept in Buddhism

and the alternative application of Buddhist sustainable development. A literature review of

sustainable development and Buddhist sustainable development was conducted in aspects

of economic, environment, and human development. In addition, to break through the

current paradigm that can not bring the expected results, one of the widest acceptance of

Buddhist sustainable development in practical ways, Case studies of sufficiency economy

in Thailand were explored at levels from the individual, community, and business levels.

Though the cases happened in Thailand, explicit results and real-world applicability

throughout the world are acknowledged (UNDP, 2007). Finally, guidelines with

implications for businesses are provided.

Keywords: Sustainable Development, Buddhist Sustainable Development, Sufficiency

Economy

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Statement of the Problem

In general, the main purpose of business organizations is making a profit through

industrial activities that are consuming depleting natural resources, affecting global problems,

such as climate change, the depletion of the ozone layer, and the loss of biological diversity,

forestry, and other resources. In addition, the environment--air, water, and land--are

contaminated with toxic chemicals and waste (Jonker and De Witte, 2006).

However, business owners are becoming more and more aware of the negative effects

of old practices, and they are broadening their goals of only financial expectations by

emphasizing social and environmental goals. These strategies are derived from the

sustainability concept, arriving in the business world more than 50 years ago (De Lange,

Busch, and Delgado-Ceballos, 2012). This direction also leads to many mainstream

approaches to reduce the negative effects of industrial activities. Roome (1998: 99) stated that

one of the implications for having a cleaner world is following international standards as a

guideline and certifying that those companies show consideration for people’s health and

safety. These include the Occupational Health and Safety Management System (OHSAS

18001), the environment (ISO14001: Environmental Management System), the Energy

Management Standard (ISO 50001), and the Corporate Social Responsibility Management

System (ISO26001).

However, some difficulties of the mainstreaming practice such as continuing profit

growth still is a main cause of the destruction of the environment. Likewise, Flavin, the

President of WorldWatch Institute (Worldwatch, 2010) referred to the tempting and strong

consumption culture, starting from Europe and North America and spreading over the world.

This culture has been believed to be a helper for increasing economic growth rate and

reducing poverty for many decades. On the other hand, this culture is reflected in the phrase,

The Great Collision, between a finite planet and the seemingly infinite demands of human

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society. At present, the world population requires resources. If the growth rate continuously

increases, what really needs to be addressed is the limit of consumption and a reduction in the

increasing wants and needs of society. Eventually, Flavin (World watch, 2010) had

convinced public and private sectors to turn to the cultures that respect and protect the natural

world by reviving religious values, transforming business models, and enhancing education

paradigms to ensure better quality of life for the next generations.

Therefore, in this paper, popular definitions of sustainable development (or

sustainability, used interchangeably [Benerjee in Jonker and de Witte, 2006: 35) will be

explored and linked to the alternative paradigm, namely Buddhism, and will be used to

explain sustainable development approaches in holistic ways. In addition, some successful

and popular research and cases will be presented.

Definition(s) of Sustainable Development

Sustainable development is defined by fluid concepts and in a number of different

ways. Perhaps the most frequently quoted definition came from Our Common Future; a

report published by the World Commission on Environment and Development (WCED) in

1987, also known as the Brundtland Report (UNWCDE, 1987: 37): “Sustainable

development is development that meets the needs of the present without compromising the

ability of future generations to meet their own needs.” Therefore, sustainable development

creates the framework to integrate and balance the environmental, social, and economic

aspects of human activity at every level and scale from local to global. It also represents

holistic and long-term approaches that are beneficial for present and future generations

(Roome, 1998: 3).

Moreover, this definition of sustainable development sees human activity as a

system—a system that connects spaces and times. A system over space means that, when

pesticides are used in Argentina, it could be of danger to aquatic animals on the shores of

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Australia; and a system over time means that decisions of our ancestors on how to farm the

land continues to have effects on agricultural practice and our lives today; the economic

policies supported today will also impact our next generations (International Institute for

Sustainable Development, 2013).

Buddhism Sustainable Development

Environment, economics, and people should be integrated and balanced for

sustainable development at individual and group levels and from local to global levels.

Although, the concept of sustainable development in the modern sense cannot be interpreted

from a Buddhist point of view directly because the Buddha’s teachings on the world

consisted of three main characteristics: (a).impermanence (change), (b) suffering, and (c)

non-self. Clinging to the endurance of phenomena is a kind of suffering in Buddhism

(Kovács, 2011: 17). These concepts may lead to the conclusion that sustainability does not

exist in Buddhism; in fact, these meanings provoke the awareness of preparation for change

in every life and in society. Moreover, Buddhism can be applied for each aspect of

development as follows:

Economic Development

Schumacher (1987 in Payutto, 2000: 173) wrote a book named Small is Beautiful in

which one of the chapters is “Buddhist Economics.” This provides a remarkable alternative to

orthodox western economics. He said, “Buddhism has ‘Right Livelihood’ in the Noble

Eightfold Path”. It means that there are Buddhist economics and Buddhist development. In

addition, Woo (2009) stated that there are two major characteristics of Buddhist economics:

(a) the right amount and knowing moderation or being enough, and (b) not harming oneself

or others.

Thus, it can be implied from Schumacher that, rather, it is the ensuring of the

appropriate material wellbeing, the accomplishment of non-harming in economic activities,

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and the realization of the inner freedom from suffering as spiritual qualities that are realized

by the ongoing practice of virtues, wisdom, and meditation (Kovács, 2011; Suwan, 2008).

Environment Development

Barash (2012: 6) proposed, “Buddhism and Ecology both refuse to separate the

human and natural worlds–and demand that we act accordingly”. In addition, he referred to

the same main principles of the interconnected and interdependent nature of things in ecology

or dependent co-arising or pratītyasamutpāda in Sanskrit; paticcasamuppāda in Pali in

Buddhism. In addition Buddha’s teaching for all followers was to be sensitive to suffering

and not to harm others.

Human Development

Pavanna or human development points to developing people for all three components

including: (a) behavior component: how to live and earn a livelihood; (b) psychological

component: development for persistency, morality, virtue, and happiness; and (c) wisdom/

intuition component: development for more understanding and knowing appropriate ideas,

attitudes, and values (Payutto, 2000: 244-254).

Buddha’s Teaching for human development is called “Four Noble Truths” (Kovács,

2001; Zeuschner, 2001).

The First Noble Truth: The Existence of Duhkha. All phenomena are inadequate and

unsatisfactory, and its nature is suffering from impermanence. If the nature of changing is not

understood, it will be the cause of pain, sorrow, and unhappiness, such as the basic situations

in everyone’s life: birth, aging, sickness, and death. In addition, to be with the unwanted, to

be detached from loved ones, and to be not fulfilled from desires are also painful.

The Second Noble Truth: The Arising of Duhkha. The origination of Duhkha, or

dissatisfaction, frustration, or suffering, emerges from a general human characteristic as

“Three Poisons:” (a) self-centered craving or attachment-desire for sense of pleasures; power,

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money, beliefs (absolute truth); (b) envy, anger, or hatred; and (c) confusion or ignorance of

the nature of reality.

The Third Noble Truth: The Cessation of Duhkha. Duhkha can be ceased or ended

by Nirvana; the goal that needs enlightenment (deep understanding or insight), reality of

characters, and causes of Duhkha. Thus, The Three Poisons can be reduced from our habit.

The Forth Noble Truth: The Noble Eightfold Path to Eliminate Duhkha. This truth

reveals the way for eradicating suffering. This path, some may know it as the Middle Way,

refers to right behavior that leads to the full cessation of dissatisfaction. Its eight divisions

could be grouped into three parts: (a) Wisdom; including the first two stages of the Noble

Eightfold Path – Right View/ Understanding and Right Decision/ Thought; (b)

Virtues/Morality; including the third, fourth and fifth stages – Right Speech, Right

Action/Conduct and Right Livelihood, and (c) Concentration/Mental Discipline; including

the last three stages – Right Effort, Right Mindfulness and Right Concentration.

Starting from the Right View/Understanding for Sustainable Development

This section will apply the Buddhist’s teachings to understand the root cause of

problems that lead to the need for sustainable development. The respected monk scholar,

Payutto (1987: 7), explained three inaccurate beliefs that form the basis of modern society:

(a) The perception that humankind is separate from nature, that humankind must control,

conquer, or manipulate nature by his or her desires; (b) The perception that fellow human

beings are not fellow human beings, thus focusing on the differences among people rather

than the common situation; and (c) The perception that happiness depends on plenty of

material possessions.

These three inaccurate beliefs cause disaster to the globe because people seek

happiness from accumulating material possessions by destroying nature and competitors. In

addition, the first two beliefs become the justification for unlimited violence. Thus, the

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primary important correction is to change life’s purpose towards happiness, to become

independent of material belonging, including manipulation for solving the problems of

unsustainability.

In addition, everything/phenomenon occurs and is still part of the cause and effect

system. It includes humans as part of nature automatically. Therefore, when an individual

creates anything, it always impacts himself/herself and others. Thus, we need to consider

what will happen from our actions. The most important thing is humans can be developed and

need to be developed in their morality. If humans are not developed and practice, they cannot

be really free and happy.

Buddhism as a Way of Life and Commonalities with Other Ethics/Religions

Buddhism goes beyond religion and is also more of a philosophy or way of life.

Because the Buddhist path intends to lead a moral life, it stresses being mindful and aware of

thoughts and actions, and to develop wisdom and understanding. Moreover, from an ethical

point of view, Zeuschner (2001, 138) claimed that Buddhist ethics is based on

pratītyasamutpāda (causality, dependent co-arising) which can apply for Karma. It means

that the consequences of actions are derived from what you have done. In addition, Buddha

taught his followers live a moral life by “Not to do any evil, to do good; to cultivate good and

to purify the mind” (Zeuschner, 2001: 138) and the Five Precepts as guiding rules for

householders/ laypersons living a good life and reduce duhkha as follows: (a) avoid taking

life, (b) avoid taking what is not given, (c) avoid sexual misconduct, (d) avoid false speech,

and (e) avoid intoxicants causing heedlessness.

There are some commonalities of Buddhist ethics and other ethics. For example,

Buddhism emphasizes the consequences of actions that are the same concepts with teleology.

Buddha taught people to be virtuous, doing well for the good; thus, Buddhism can link to

Virtue ethics. Care Ethics can be linked to Buddhist ethics because the Buddha’s teaching is

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to empathize, be compassionate with others’ feelings, giving and sharing. Finally, the Buddha

also stressed to followers to take responsibility as one’s own roles; thus, it can be linked with

deontology (UNDP, 2007; Zeuschner, 2001).

Buddhist Sustainable Development in Practice

One of the clearest successful practical ways of Buddhist sustainable development can

be seen in Sufficiency Economy. In 2006, the UNDP’s first ever a Human Development

Lifetime Achievement Award was presented to His Majesty King Bhumibol Adulyadej of

Thailand, who has been an outstanding contributor to human development on the occasion of

the sixtieth anniversary of his accession to the throne. He is the founder of Sufficiency

Economy, which was formulated over decades from his knowledge and practical experience

in his many development projects and some basic doctrines of Buddhist philosophy with two

main components: a). The idea of moderation or the middle path, and b). The concept of

intention (of actions) and consequences (Karma; a result of good and bad actions) (Grossman

and Faulder, 2011; UNDP, 2007).

In the awards ceremony, the UN Secretary General Kofi made a speech to admire the

philosophy’s applicability and admit it as a UNDP principle:

His Majesty's Sufficiency Economy' philosophy… is of great relevance to

communities everywhere during these times of rapid globalization. The philosophy's

"middle way" approach strongly reinforces the United Nations' own advocacy of a

people-centred and sustainable path toward human development. His Majesty's

development agenda and visionary thinking are an inspiration to his subjects and to

people everywhere. (UNDP, 2007: 18)

In addition, the United Nations Development Program (UNDP) also dedicated a

whole Thailand Human Development Report in 2007 to elucidate the evolvement and

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application of the Sufficiency Economy in public and private sector contexts (Grossman and

Faulder, 2011: 5).

Evolution of Sufficiency Economy

Since King Bhumibol Adulyadej ascended to the throne in 1946 and declared his

coronation to “reign with righteousness, for the benefit and happiness of the Siamese people”

(Thailand’s Monarch Celebrates 60th

Year on the throne, 2006). He strongly commits to

develop his people and country by creating many projects to solve problems and enhance the

quality of Thais’ lives by spending most of his life for traveling in the countryside throughout

Thailand, observing and asking people about their problems and hopes, launching thousands

of development projects, checking and improving systems for better results that benefit local

communities. In addition, he also established experimental projects and provided practical

demonstrations by using his palace for growing rice, breeding fish, keeping cows, growing

plants, and so on. In addition, he developed technologies, infrastructures, and production

systems for Thai people and also became an inventor of an aerator for water purification and

rain-making through cloud-seeding for helping farmers to plant and all villagers to live well

(Grossman and Faulder, 2011; UNDP, 2007).

On many occasions since 1974, His Majesty the King Bhumibol Adulyadej presented

the initial concept of Sufficiency Economy Philosophy, especially. After the Tom Yum Kung

economic crisis in 1997, His Majesty repeated and urged that the concept be considered as a

component of the Thai economic plan and structure (Curry and Sura, 2007; Thaisriwichai,

2010). Since 2002, Thailand has been applied Sufficiency Economy Philosophy as a

guideline for the National Development Plan that mainly focuses on human development

(NESDB, 2010: 3).

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Sufficiency Economy Philosophy Definition

Sufficiency Economy is an approach that is utilized for developing persons and

society and the nation. It promotes a middle path to prepare for extensive and rapid

economic, environmental, and cultural changes in the world. There are three components

(Grossman and Faulder, 2011; NESDB, 2007; UNDP, 2007):

1) Moderation is enough (not too much or too little). The middle path must be

learned by wisdom and requires self-reliance and prudence.

2) Reasonableness is both evaluating the reasons for any actions and understanding

its full consequences for the environment, both in the short term and long term,

gathering knowledge and experience along with analytical thinking, self-

awareness, foresight, compassion and empathy.

3) Self-immunity is having built-in resilience, the ability to confront shock, to adjust

external change, and to handle the unexpected and unmanageable. It refers to the

principle of self-reliance and self-discipline.

Apart from these three elements, two other conditions are drivers: a) Knowledge

is accumulated with information and consideration; and b) Integrity means virtue, ethical

behavior, honesty, and straightforwardness, but also implies tolerance, perseverance, a

readiness to work hard, and a refusal to exploit others.

A philosophy depiction is provided in Figure 1.

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Figure 1: Philosophy of sufficiency economy (NESDB, 2007)

Related Studies in Business World and Application Guidelines

The Sufficiency Economy approach does not benefit only villagers upcountry. Two

case studies and one research study on small and large enterprises are good examples as

described below.

Case 1: Chumphon Cabana Resort and Diving Center: Sufficiency Resort (SASIN,

2010; UNDP, 2007)

Chumphon Cabana Resort and Diving Center is located in Chumpon province on the

east coast of Thailand. Its finances were affected by the economic crisis (Tom-Yum-Kung

Crisis) in 1997. The owner, Warisorn Rakphan, was motivated by the sufficiency approach.

At the time, he started with small, pilot projects of planting rice, vegetables, flowers and fruit

trees; making biodiesel from food scraps; making fertilizer and animal feed from hotel waste

and other materials; and setting up wastewater treatment plants in the resort. He also

improved the sandy land without the cost of chemicals. In addition, he collaborated with

surrounding villages and trained them to make fertilizer and farm organic plants. Resort staff

were encouraged to join in the collaboration. The reputation of the owner and resort spread

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widely, and other resort owners, farmers, NGOs and government officials came to learn. The

resort was nationally known as a model for successful business application of the Corporate

Sustainability under the Sufficiency Economy Philosophy. The owner said that employees

have a sense of pride, and it is a kind of development that makes everybody happy.

Case 2: SCG Practices Principles of Sufficiency Economy

Siam Cement Group (SCG) is a large company with a strong reputation. Its products

are varied in many areas with aggressive expansion in the period of the construction boom,

especially in the super growth period (1987-1996). During this decade, Thai economy was

the fastest growing in the world because GDP of Thailand increased at an average annual rate

close to 10 percent (Vines and Warr, 2003). However, in the Tom-Yum-Kung Crisis in 1997,

when the Thai baht was floated and depreciated, there was a dramatic domestic sales drop.

The company lost US$1.2 billion in 1998 and US$4.8 billion in the following year. It was a

turning point to develop its business and people based on the principles of Sufficiency

Economy; moderation, rationality, and immunity. It led the company to maximize benefits

and minimize costs in order to sustain business growth, conserve the environment, and yield a

better quality of life for all people (UNDP, 2007). After a decade, the company achieved

outstanding profits and supported communities. Therefore, SCG was awarded with H.M. the

King’s Trophy for Best Practice of the Sufficiency Economy in Large Enterprises Category

in 2007 (Jones, Massimini and Carter, n.d.).

The president and CEO of SCG, Kan Trakulhoon, explained that the Sufficiency

Economy philosophy can contribute to business growth and well-balanced happiness for all

concerned stakeholders, especially employees of the company, because its key components of

corporate culture are strong, emphasizing equality and social responsibility, respecting the

value of the individual, and guiding principle of the human resource policy, developing

readiness for changing through the quality of its staff, and committing to the core principles

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when encountering large crises. Moreover, SCG is committed to providing constant support

for socially beneficial activities in all communities, both in Thailand and abroad. Though the

approach sounded like general CSR, the 2007 report of UNDP said that, for private business,

Sufficiency Economy “takes corporate responsibility to the next level” (Jones et al, n.d.: 2).

These approaches are detailed in Figure 2.

Figure 2. Siam Cement business and human resource strategies (UNDP, 2007: 52-53)

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Study 3: Sufficiency Economy in Business and Sustainable Corporate Practices

Kantabud (2010) proposed “A Business Theory of Sufficiency Economy” by

analyzing and synthesizing interview data from a variety of large Thai companies’ top

leaders, such as True Corporation, Kasikorn Bank, SCG, Pan Asia Footwear, Tipco Foods,

Malee, Meaung Thai Insurance, Sahapattanapibool, Mithphol, MK restaurant, and others. The

results were 10 emerging themes: (a) Create management visions and policy decision by not

expecting only short-term profit but considering long-term impacts; (b) Recognize value of

employees sincerely by developing them continuously, avoiding layoffs, though facing an

economic crisis; (c) Have sincerity and good will to stakeholders, citizens, and society for the

future; (d) Emphasize not only products or services, but also innovative processes; (e)

Consume resources efficiently and effectively; (f) Use and/or develop low cost effective

technology, especially, from local wisdom; (h) Expand business gradually when ready, not

from high market needs; (i) Reduce risk by producing a variety of products, sell in various

markets, invest in many places, based on in-depth understanding; (j) Share knowledge to

create benefit for consumers and society; and (k) Create strong corporate culture and ethics.

Application

NESDB (2007) summarized a guideline for businesspeople/Entrepreneurs/Leaders,

and people who are working in business should run that business ethically, with more

attention to sustainability and stability of long-run business by continuous business

development based on changing technologies and market needs for efficiency and product

quality. In addition, they should prepare themselves to deal for changing situations by gaining

new information and business-related knowledge. Moreover, they should focus on social

responsibility for all stakeholders, and the environment should be part of their awareness.

Thaisriwichai (2010: 201-203) proposed four roles of HR professionals to work with

Sufficiency Economy applied to organizations as follows:

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1. Strategic Partner: HR should be the support for overall strategic business plan and

objectives, including HR services such as performance management system, strategic pay,

work design, career and succession planning, and employee development to drive sufficiency

economy foundation in the business.

2. Employee Champion: Sufficiency Economy emphasizes wellbeing and sustainable

satisfaction and happiness of the staff. HR plays an integral role in organizational success

with its knowledge to create work environments with motivation and happiness. In addition,

HR should promote Sufficiency Economy by communication, training, and goal setting.

3. Change Agent: HR should plan and promote the overall success of the organization

by identifying organizational mission, vision, values, goals, and action plans, including the

measurement to transform the organization towards Sufficiency Economy practices.

4. Administrative Expert: HR should balance what is the best for the organization and

what is the best for the employees with the middle path and sufficiency economy.

Recommendations for Future Research

There is much research that is still needed around Sufficiency Economy. What are the

characteristics that are necessary, separate from Buddhism, that are needed to succeed in

creating Sufficiency Economy? Are there cultural components that make Thailand more open

to Sufficiency Economy succeed in Thailand more so than in other cultural contexts? What

are the barriers to applying the principles for Sufficiency Economy, i.e., why aren’t all

organizations and communities focused on Sufficiency Economy? What are the outcomes

that are most susceptible to Sufficiency Economy? Given the struggles that the world is going

through in the degradation of the environment, exploring Sufficiency Economy further has

become critical for the future of humanity.

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