Gurcharan Das
The Man: Gurcharan Das's second career as a writer and public intellectual is more noticed and in some ways far more influential than his first as a professional manager. It spanned 30 years, and across six countries and included a term as CEO of Procter & Gamble India. His writings drew from his experience and also from his wide reading. He tells us that individuals could be immoral but the institution of the market itself is deeply moral.
The Oeuvre: His first book India Unbound captured the country in economic transition and became an instant best seller. In Difficulty of Being Good, his most recent book, he turned to Mahabharata to find answers for some of the pressing ethical questions.
X-Factor: A beautiful writer—wise and pragmatic.
The Message: There is a purpose to economic activity, and the pursuit of money is justified so long as it leads to the good life.
The Hypothesis
Human beings may be immoral and will behave badly whether in a socialist or a capitalist society or under a democracy or autocracy. But the institution of the market itself is deeply moral and has its underpinnings in the Indian notion of dharma.
So What?
Dharma is a frustrating word and not easy to translate. Duty, goodness, justice, law and custom have something to do with it, but it is chiefly concerned with doing the right thing, both in the private and the public life. The market system depends ultimately not on laws but on the self-restraint of individuals. A sense of dharma provides that restraint for the vast majority of people who tend to behave with mutual respect in most societies.
Although two decades have passed since the reforms of 1991, when Indians began their love affair with free markets, capitalism is still trying to find a comfortable home in India. Like most people, Indians believe that the market is efficient but not moral. I have come to believe, the opposite. Human beings may be immoral and will behave badly whether in a socialist or a capitalist society or under a democracy or autocracy. The institution of the market itself is deeply moral and what has convinced me about its ethical nature is the classical Indian notion of dharma. At the heart of the market system is the idea of exchange between ordinary, self-interested human beings, who seek to advance their interests peacefully in the marketplace. The reason that strangers are able to trust each other in the market is, in part, due to dharma, which is like an invisible glue that is based on underlying shared norms and which gives people a sense of safety when they cooperate and transact.
Supplier, customer, and employee—all business relationships depend on a certain behaviour which one could call the behaviour of Dharma. When people behave according to that, the business runs well. Very often companies cut corners, squeeze their suppliers. They will be the ones that will lose their employees, their suppliers. If they are not honest to their customers then the repeat purchase of their products will not happen. The whole market system depends on this shared belief that we will all do the right thing. There are companies who default on their debt obligations and it would seem they can do it repeatedly. But ultimately they pay the price. Their multiples [of stock price] are low and investors are wary of putting their money into the company’s equity.
The idea that an ancient Indian idea might offer insight into capitalism’s nature is, on the face of it, bizarre. I was exposed to Western ideas when I was in college, and I assumed unthinkingly that ‘capitalism’ came from the West. I read Adam Smith, Marx, John Locke and others, who introduced me to the liberal tradition. But I realised my mistake later in life when I happened to read the two thousand year old Sanskrit epic, Mahabharata. The epic is obsessed with the notion of dharma, and as I tried to come to grips with it I realised that there might also be non-Western roots for the ideas of liberty and market capitalism, and the liberal tradition might, in fact, be universal.
Dharma is a frustrating word (even for Indians) and not easy to translate. Duty, goodness, justice, law and custom have something to do with it, but it is chiefly concerned with doing the right thing, both in the private and the public life. It derives from the Sanskrit root dh, meaning to ‘sustain’ and ‘hold up’ like a foundation. It is the moral law that sustains an individual, society and the cosmos. From its root ‘to sustain’ dharma carries the connotation of ‘balance’—it is the balance within each human being, which is reflected in the balance and order of the cosmos. When individuals behave in accordance with dharma there is order, balance and trust within society.
Dharma is especially suited for understanding the dynamics of the market place in particular and of public policy in general, because it does not seek moral perfection. It is based on a pragmatic view of human beings—it views men to be sociable but imperfect, with strong desires and passions that need to be restrained by dharma. For example, the king’s dharma is to nurture the productive forces in society: ‘The king, O Bharata, should always act in such a way towards vaishyas, ‘merchants’ and ‘commoners’, so that their productive powers may be enhanced. Vaishyas increase the strength of a kingdom, improve its agriculture, and develop its trade. A wise king levies mild taxes upon them.’ [Mahabharata XII.87] Practical advice indeed, for otherwise, the epic adds, they will shift to the neighbouring kingdom.
Dharma thus provides the underlying norms of a society that are commonly shared by the people, and which permits them to cooperate. It creates obligations and duties for the rulers and the ruled. In the marketplace, it places restraints for buyers and sellers. Because we share a common dharma I readily accept a cheque from you. A cab driver takes me in as a passenger because he knows that the restraint of dharma will ensure that I will pay him at the journey’s end. I trust my fruit vendor who claims that her mangoes are expensive this week because of their higher quality. If the mangoes turn out to be bad, I will accuse her of not adhering to dharma, and I will punish her by going to her competitor. She will not only lose my custom but that of others, as word of mouth spreads—she will come to be known as a person of low dharma. Suppliers will not trust her; she will not be able to attract good employees. On the other hand, a person of high dharma will be rewarded with a good reputation; she will also enjoy high satisfaction among customers, suppliers, and employees.
(This story appears in the 25 May, 2012 issue of Forbes India. To visit our Archives, click here.)
You should study Hindu original texts carefully, where wealth has been repeatedly condemned as an evil which is an obstacle in the path of Moksha. Capitalism cannot flourish without a strong desire to create and enjoy wealth. Hinduism could produce only a subsistence economy, not a surplus economy which alone can create new inventions, new manufacturing facilities and new research-based innovations. Here are some of the quotes condemning wealth and desires: Brihdaranyaka Upanishad -- III-v-1: That which transcends hunger and thirst, grief, delusion, decay and death -- knowing this very Self, the Brahmanas renounce the desire for sons, for wealth and for the worlds, and lead a mendicant’s life. Gita: 2.71 - One who abandons all desires, and becomes free from longing and the feeling of \'I\' and \'my\', attains peace. 3.34 - Attachments and aversions for the sense objects remain in the senses. One should not come under the control of these two, because they are two major stumbling blocks, indeed, on one’s path of Self-realization. Astavakra Gita: 10.7 -- Enough of wealth, sensuality and good deeds. In the forest of samsara the mind has never found satisfaction in these. Mahabharat: Shantiparva [BOOK 12, PART 1, SECTION 26] – Yudhisthir says: When one has controlled his pride and folly, and withdrawn himself from all attachments, it is then that that pious man of irradiated soul becomes fit for attaining to that salvation which consists in the annihilation of separate existence. … He that desires wealth finds it very difficult to abandon that which should by every means be abandoned. Good deeds are very rare in those that amass riches. It is said that wealth can never be acquired without injuring others, and that, when earned, it brings numerous troubles…. One, however, that has no wealth, never becomes the subject of censure. Withdrawn from all attachments, such a person can become happy in all respects by supporting life upon what little he may obtain as alms. Srimad Bhagwat: 3.30.3: The misguided materialist does not know that his very body is impermanent and that the attractions of home, land and wealth, which are in relationship to that body, are also temporary. Out of ignorance only, he thinks that everything is permanent. Garud Puran: 16.50. People are destroyed every day by the desire for great wealth. Alas! Fie upon the foods of the senses, which steal away the senses of the body. Shivananda: Extract from his book “CONQUEST OF MIND” [PAGE 103]: The greatest obstacle to Self-realization is desire for property, desire for wealth and desire for name and fame. Desire is born of ignorance…. I would like to know your comments.
on May 22, 2012Shivam, Let us look at it (wealth creation) with a different perspective. Buffet still lives in a 2 bedroom house, Narayana Murthy lives a frugal life, Azim Premji travels economy whenever he can but Mukesh Ambani builds a billion dollar house in slum city!! So creation of wealth is OK by it is what you do with it. Now where in Hindu scripture it says do not create wealth honestly..perhaps discourages ostentatious display of wealth!!
on May 28, 2012