Read Online Small Is Beautiful: A Study of Economics as if People Mattered by E F Schumacher - Free Book Online Page A
Authors: E F Schumacher
Tags: Economics, Political Science, Business & Economics, Philosophy, Public Policy, Environmental Policy, MacRoeconomics, Aesthetics, Microeconomics
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of the rural economy, a rising tide of unemployment in town and country, and the growth of a city proletariat without nourishment for either body or soul.
It is in the light of both immediate experience and long-term prospects that the study of Buddhist economics could be recommended even to those who believe that economic growth is more important than any spiritual or religious values. For it is not a question of choosing between 'modern growth' and 'traditional stagnation'. It is a question of finding the right path of development, the Middle Way between materialist heedlessness and traditionalist immobility, in short, of finding 'Right Livelihood'.
Five
A Question of Size
I was brought up on an interpretation of history which suggested that in the beginning was the family; then families got together and formed tribes; then a number of tribes formed a nation; then a number of nations formed a
'Union' or 'United States' of this or that; and that finally, we could look forward to a single World Government. Ever since I heard this plausible story I have taken a special interest in the process, but could not help noticing that the opposite seemed to be happening: a proliferation of nation states, The United Nations Organisation started some twenty-five years ago with some sixty members; now there are more than twice as many, and the number is still growing. In my youth, this process of proliferation was called
'Balkanisation' and was thought to be a very bad thing. Although everybody said it was bad, it has now been going on merrily for over fifty years, in most parts of the world. Large units tend to break up into smaller units. This phenomenon, so mockingly the opposite of what I had been taught, whether we approve of it or not, should at least not pass unnoticed, Second, I was brought up on the theory that in order to be prosperous a country had to be big - the bigger the better. This also seemed quite plausible. Look at what Churchill called 'the pumpernickel principalities' of Germany before Bismarck; and then look at the Bismarckian Reich. Is it not true that the great prosperity of Germany became possible only through this unification? All the same, the German-speaking Swiss and the German-speaking Austrians, who did not join, did just as well economically, and if we make a list of all the most prosperous countries in the world, we find that most of them are very small: whereas a list of all the biggest countries in the world shows most of them to be very poor indeed. Here again, there is food for thought,
And third. I was brought up on the theory of the 'economies of scale' - that with industries and firms, just as with nations, there is an irresistible trend.
dictated by modern technology, for units to become ever bigger. Now, it is quite true that today there are more large organisations and probably also bigger organisations than ever before in history; but the number of small units is also growing and certainly not declining in countries like Britain and the United States, and many of these small units are highly prosperous and provide society with most of the really fruitful new developments. Again, it is not altogether easy to reconcile theory and practice, and the situation as regards this whole issue of size is certainly puzzling to anyone brought up on these three concurrent theories.
Even today, we are generally told that gigantic organisations are inescapably necessary; but when we look closely we can notice that as soon as great size has been created there is often a strenuous attempt to attain smallness within bigness. The great achievement of Mr Sloan of General Motors was to structure this gigantic firm in such a manner that it became, in fact, a federation of fairly reasonably sized firms. In the British National Coal Board one of the biggest firms of Western Europe, something very similar was attempted under the Chairmanship of Lord Robens; strenuous efforts were made to evolve a structure
It is in the light of both immediate experience and long-term prospects that the study of Buddhist economics could be recommended even to those who believe that economic growth is more important than any spiritual or religious values. For it is not a question of choosing between 'modern growth' and 'traditional stagnation'. It is a question of finding the right path of development, the Middle Way between materialist heedlessness and traditionalist immobility, in short, of finding 'Right Livelihood'.
Five
A Question of Size
I was brought up on an interpretation of history which suggested that in the beginning was the family; then families got together and formed tribes; then a number of tribes formed a nation; then a number of nations formed a
'Union' or 'United States' of this or that; and that finally, we could look forward to a single World Government. Ever since I heard this plausible story I have taken a special interest in the process, but could not help noticing that the opposite seemed to be happening: a proliferation of nation states, The United Nations Organisation started some twenty-five years ago with some sixty members; now there are more than twice as many, and the number is still growing. In my youth, this process of proliferation was called
'Balkanisation' and was thought to be a very bad thing. Although everybody said it was bad, it has now been going on merrily for over fifty years, in most parts of the world. Large units tend to break up into smaller units. This phenomenon, so mockingly the opposite of what I had been taught, whether we approve of it or not, should at least not pass unnoticed, Second, I was brought up on the theory that in order to be prosperous a country had to be big - the bigger the better. This also seemed quite plausible. Look at what Churchill called 'the pumpernickel principalities' of Germany before Bismarck; and then look at the Bismarckian Reich. Is it not true that the great prosperity of Germany became possible only through this unification? All the same, the German-speaking Swiss and the German-speaking Austrians, who did not join, did just as well economically, and if we make a list of all the most prosperous countries in the world, we find that most of them are very small: whereas a list of all the biggest countries in the world shows most of them to be very poor indeed. Here again, there is food for thought,
And third. I was brought up on the theory of the 'economies of scale' - that with industries and firms, just as with nations, there is an irresistible trend.
dictated by modern technology, for units to become ever bigger. Now, it is quite true that today there are more large organisations and probably also bigger organisations than ever before in history; but the number of small units is also growing and certainly not declining in countries like Britain and the United States, and many of these small units are highly prosperous and provide society with most of the really fruitful new developments. Again, it is not altogether easy to reconcile theory and practice, and the situation as regards this whole issue of size is certainly puzzling to anyone brought up on these three concurrent theories.
Even today, we are generally told that gigantic organisations are inescapably necessary; but when we look closely we can notice that as soon as great size has been created there is often a strenuous attempt to attain smallness within bigness. The great achievement of Mr Sloan of General Motors was to structure this gigantic firm in such a manner that it became, in fact, a federation of fairly reasonably sized firms. In the British National Coal Board one of the biggest firms of Western Europe, something very similar was attempted under the Chairmanship of Lord Robens; strenuous efforts were made to evolve a structure
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