Relevance of Gandhi

Relevance of Gandhi in the Global Economic Meltdown

“An economics that inculcates Mammon worship, and enables the strong to amass wealth at the expense of the weak, is a false and dismal science. It spells death. True economics, on the other hand, stands for social justice; it promotes the good of all equally including the weakest, and is indispensable for decent life”. (Harijan, 9-10-1937, p.292)
Early this year, on 7th January, 2009, Indians the world over, woke up to the shocking headlines in the newspapers about the largest financial fraud in the country’s history- this was none other than that by Raju Ramalingam of Satyam. The fraud amount is estimated to be Rs. 9,600 Crores. What had driven this man to forge documents, fake invoices, inflate profits, lie about head count, show false company fixed deposits?
Since last year we also saw the collapse of Wall Street which started with defaults in the sub-prime mortgage markets but the spin off led to the bankruptcy of the investment bank Lehman Brothers, buying of Merrill Lynch by Bank of America so as to avoid a similar fate, the bail out of AIG, etc. Even more shocking was the fact that, the officers of all of these failed banks had continued to pay themselves millions of dollars in bonuses. It was only after Barack Obama took on his Presidency that he took them to task saying their behavior had been highly irresponsible and shameful- “there will be time for them to make profits, and there will be time for them to get bonuses -- now is not that time.”
Europe too was rocked when the young 31 year old executive Jerome Kerviel of Societe Generale, France’s second largest Bank, admitted to having executed fictitious transactions to a tune of 4.9 billion Euros. And what is even more ironical is the fact that he and other such dealers and traders have become celebrated stars of today.
More recently, about 5000 US investors were shell-shocked when Bernard Madoff, a Former Nasdaq Chairman admitted to having cheated his clients to a tune of $50 billion through his Ponzi scheme.
What led these individuals to resort to forgery, deception and lies? Perhaps several factors, but chiefly an unbridled greed. Hadn’t the Mahatma cautioned us with his words - “Earth provides enough to satisfy every man’s need, but not every man’s greed”.
In the Corporate world, Leadership is considered to be the most important aspect of Management, and the deciding factors of good leadership are for the individual to uphold core values like honesty, truthfulness, sincerity and courage; to ‘walk the talk’ and ensure transparency and accountability in his/her dealings. But out there in the real corporate world today, the reality is quite different. A person who speaks of morality, values, conscience, and honesty is considered archaic and naïve and most react with – “that’s all fine in books but it’s not realistic and compromises are inevitable.”
Mahatma Gandhi was an outstanding leader- he identified himself with masses, worked shoulder-to-shoulder, dressed, lived and empathized with them and won the people’s respect and confidence. For sometime now, especially in the West, management gurus have been studying his leadership skills so as to imbibe them in their management books and courses. It’s interesting to see how, without using any complicated management jargon, Gandhi in 7 short ‘bullet’ points warned us of the disaster and ruin we will bring upon ourselves if we didn’t pay heed to the ‘Seven Deadly Blunders’. In Oct. 1947, as Gandhi’s grandson, Arun Gandhi was preparing to return to South Africa to join his parents, Gandhi gave him a slip of paper saying “keep this as a Talisman. What I have written are the 7 blunders that human society commits and that cause all the violence”.
The Seven blunders identified by Gandhi were:
Wealth without work
Pleasure without conscience
Knowledge without character
Commerce without morality
Science without humanity
Worship without sacrifice
Politics without principle
To this list Arun Gandhi later added an eighth blunder:
Rights without Responsibilities
Now sixty years later, we find that we have indeed been guilty of committing these blunders and that these blunders have become a part of our corporate, government and personal culture. Not only are we no longer embarrassed by them, but we practice openly talk about them. In the present world crisis, these seven blunders are even more relevant than they were in Gandhi’s times.
Let’s try and understand each one of them in light of the present day crises.
Wealth without work
While in India, Gandhi saw how the rich zamindars (land owners) practiced tenant farming in which the poor peasants toiled the land while they raked in the profits and lived luxurious lives. In Africa too, he saw the exploitation of the ‘natives’ and ‘coolies’ by the British and Dutch and hence the origin of the first blunder. In modern capitalism such ‘tenant farming’ still exists wherever someone owns the time, energy, talent and labour of another person and profits from that person’s efforts eg. heads of businesses or board members/ directors drawing exorbitant salaries which are not commensurate with the work they do. The term ‘tenant farming’ can be used as a metaphor for the several modern day practices of ‘get-rich-quick’ schemes ‘without having to work for it’ be it state lotteries, stock market, gambling, multi-level marketing start-ups, etc. Consumerism and credit purchases have only accentuated the problem and the recent trend in America of easily filing for bankruptcy is also a case in point. The solutions to this ‘blunder’ have of course to be dealt with case by case, but generally speaking we must curb credit purchasing, financial speculation, and ensure more equitable distribution of profits among actual workers than those who just control the capital.
Gandhi offered his theory of Trusteeship which required capitalists to consider the wealth they had as being held in Trust for the benefit of the poor. The concept of Trusteeship is a mid path between pure capitalism and pure communism. Gandhi said the rich were the custodians or Trustees of the wealth they earn and that this was to be used for the welfare of their less fortunate beings. “My theory of trusteeship is no makeshift, certainly no camouflage. It has the sanction of philosophy and religion behind it...No other theory is compatible with non-violence,” Gandhi had said
For Gandhi a Trustee is one who self-consciously assumes responsibility for upholding, protecting and putting to good use whatever he possesses, acquires or earns. This is the essence of Corporate Social Responsibility as propound by western writers.
Pleasure without conscience
According to Arun Gandhi, this is connected to the first blunder. For Gandhi, pleasure without conscience frequently meant sexual promiscuity for he often advocated abstinence. Pleasure is not evil per se; but when pursued mindlessly without restraint, discipline or self-mastery, it can be very harmful.
The great explosion of science and technology has no doubt brought much ease and pleasure to our lives. But this extra time for leisure has proved to be very harmful. As the great historian Arnold Toynbee says in his book ‘Choose Life’ that unless man uses this extra leisure time in spiritual pursuits, his life will veer towards a negative and destructive life style. This is exactly what has happened – people talk of being bored; wanting new thrills and excitement for their dull lives often resorting to dangerous things like drugs, alcohol, irresponsible relationships, etc.
In his book ‘Principle-Centered Leadership’, Stephen Covey says that people nowadays are greedy, selfish and sensuous; only thinking of, “What’s in it for me? Will this please me?”. He says that pleasure without conscience is one of the key temptations for today’s rich and successful executives who indulge in extra-marital relationships without conscience, telling themselves” you have earned it” and “why not give in”.
We must practice self-mastery and not be distracted or tempted by the world of consumerism, materialism and pleasures and instead listen to our conscience and live responsible lives.
Knowledge without character
These days, pursuit of knowledge is sadly only for getting a better job and making more money. The educational system also lays emphasis on career building and not character building. As the well-known saying goes- “a little knowledge is dangerous”, but more dangerous is a lot of knowledge without character coupled with lack of etiquette and public-spiritedness. It is interesting to note that about 5 years ago a best seller in Japan was a hand book titled- “What to Do in Different Situations – Fifty five Lessons in manners for Today’s World”. This hand-book is a step-by-step guide for everyday behavior- from the most basic table manners, to the proper etiquette for weddings, funerals and other ceremonial occasions. Most of the knowledge contained in this book is what until a few decades ago was considered common knowledge acquired or passed down through parents and society. This hand book is a keen indication of how much our society has deteriorated, when ironically there is such a free flow of knowledge in this age of communication and internet.
The need of the hour is a good balance of knowledge, wisdom, character and intellect. It is important that simple values like consideration to others, honesty, fairness, sincerity is woven into the education system and management programmes.
Commerce without morality
As in wealth without work, when we are devoted to the cause of making money we indulge in business without morality or ethics. Compromising on quality, unethical management practices, corporate violations of law including environmental, passing off inferior goods, cheating, making false claims through advertisements, adulteration as in the recent shocking case of baby milk powder, and children’s toys by China are just a few examples of this blunder. When profit-making becomes the most important aspect of business, morals and ethics usually take a back seat.
In contrast, a shining example of a businessman who integrated commerce and morality is that of the great patriarch JRD Tata. I would like to quote from his biographer, R.M.Lala’s article in the Hindu newspaper on the occasion of JRD’s birth centenary. “The well-known tax consultant, Dinesh Vyas, says that JRD never entered into a debate over `tax avoidance, ' which was permissible, and `tax evasion, ' which was illegal; his sole motto was `tax compliance. ' On one occasion a senior executive of a Tata company tried to save on taxes. Before putting up that case, the chairman of the company took him to JRD. Mr. Vyas explained to JRD: "But sir, it is not illegal." JRD asked, softly: "Not illegal, yes. But is it right?" Mr. Vyas says that during his decades of professional work no one had ever asked him that question. Mr. Vyas later wrote in an article: "JRD would have been the most ardent supporter of the view expressed by Lord Denning: ``The avoidance of tax may be lawful, but it is not yet a virtue. '”
Gandhi’s views on the conduct of lawyers also makes interesting reading. This is what he had to say on his own profession-“I suggested to my client that if an arbitrator commanding the confidence of both the parties could be appointed, the case would be quickly finished. I felt that it was my duty to befriend both parties and bring them together. I strained every nerve to bring about a compromise. I realized that the true function of a lawyer is to unite parties driven asunder. The lesson was so indelibly burnt into me that that a large part of my time during the twenty years of my practice as a lawyer was occupied in bringing about private compromises of hundreds of cases. I lost nothing thereby- not even money, certainly not my soul. I never resorted to untruth in my profession and a large part of my legal practice was in the interest of public work, for which I charged nothing beyond out of pocket expenses and these too I sometimes met myself. My friends wanted me to confess some wrong in the belief that it might benefit the legal profession. As a student I had heard that a lawyer’s profession was a liar’s profession. But this did not influence me because I wanted neither money or position by lying.”

Science without humanity Gandhi had warned us at the start of the 20th century that machinery would put people out of work and also make their work less meaningful. Instead of “mass production” he believed in “production for the masses”. His greatest fear was science without humanity – the atom bomb and production of more gruesome weapons of destruction that threaten to wipe out humanity are just such examples. Technological approach to farming, GM foods, usage of pesticides like DDT is also examples of the inhumane use of scientific knowledge. Many scientists believe their greatest strength is their ability to separate their knowledge from their character and their science from their souls.
A fine example of a humane scientist is Dr.Joseph Rotblat, the former president of the Pugwash Conferences and one of the eight authors of the Russell-Einstein manifesto. During World War II, Dr. Rotblat had participated in the Manhattan Project, because he thought developing nuclear weapons would restrain and deter the Nazis. However when he learned that the actual use of nuclear weapons was being contemplated, he chose the path of his conscience and resigned.

Worship without sacrifice
Religion is supposed to unite man and man, and, man and the cosmos, but it has actually done just the opposite. Gandhi believed that all religions emanate from one great Truth and he proclaimed Truth is God. A true religion is based on spirituality, compassion, understanding and above all a respect for all life. True worship demands a sacrifice of our time to pray and to take compassionate actions for others based on our spiritual beliefs.

Politics without principle
These days, the word politician immediately conjures up an image of a person who is untrustworthy and unreliable and the word ‘dirty’ seems to clubbed together with it to make it ‘dirty politics’.. The world abounds with politicians who have not kept their word, who have amassed unaccounted wealth and led immoral lives. One of Gandhi’s greatest contributions was his ability to fuse his spiritual beliefs with the practice of politics. He once said that though in all appearances his mission is political, it is actually deeply rooted in spirituality and morality. Gandhi’s advice to the people was that, an elected representative was one, on whom the common people have bestowed the power of attorney, and when such a person betrays your confidence he should no longer be allowed to be in power. I think today’s politicians would do well to heed these words of Gandhi- “the only tyrant I accept in this world is the still voice within”.
Noted philosopher and pacifist, Dr.Daisaku Ikeda has given some keen insights to the cause of the global economic crisis as well as to some solutions in his 2009 Peace Proposal which he submits to the U.N and Heads of State every year on 26 January. I will briefly summarize a few key points.
He says that the root cause of the crisis has been the “unhealthy fixation on the abstract and ultimately insubstantial signifier of wealth- currency”. He explains, that currency, be it paper, metal or electronic information that rule market economics, have no use value; only exchange value. Hence, in essence, currency is abstract – a kind of virtual reality. The worship of money not only increases the desire for the material put also clouds our actions. For example, a corporation which overlooks its social responsibility and only takes care of its profits and private share holders interests, loses touch with the real world of people be it management, employees or customers.
Dr. Ikeda urges us to set our sights on ‘humanitarian competition’, an idea set out by the founding president of the Soka Gakkai, Tsunesaburo Makiguchi. Dr.Ikeda compares this concept with American futurologist Dr.Hazel Henderson’s “win-win world” as in the following passage- “What is important is to set aside egotistical motives, striving to protect and improve not only one’s own life, but also the lives of others. One should do things for the sake of others, because by benefiting others, we benefit ourselves.”
Based on this concept of humanitarian competition, he proposes three pillars to tackle not only the global economic downturn but also the environmental degradation, energy and food shortages and poverty. These are
Sharing of action through tackling environmental problems
Sharing of responsibility through international cooperation on global public goods
Sharing of efforts for peace toward the abolition of nuclear arms
Finally I come to the eighth point added by Arun Gandhi
Rights without responsibility
Human tendency is to regard each of the seven as a right – wealth, pleasure, knowledge, commerce, science, worship and politics. But to each of Gandhi’s seven blunders was attached a responsibility like work, conscience, character, morality, humanity, sacrifice and principle meaning that have wealth with work, pleasure with conscience, knowledge with character and so on.
An article in the alumni magazine of the Marriott School of Management, Brigham Young University sums it well when it says-“Each of Gandhi’s blunders can be transformed into a positive statement that serves as an antidote against the societal poisons afflicting the modern world. Consider how different it would be to live in a world where the following Wonders (rather than Blunders) were the rule and not the exception:”
Wealth with work
Pleasure with conscience
Knowledge with character
Commerce with morality
Science with humanity
Worship with sacrifice
Politics with principle

Selected References
1. Covey, Stephen. R, Principle-Centered Leadership (New York: Free Press), 1990, pp.87-93.
2. Swaminathan, M.S and Ikeda, Daisaku, Revolutions to green the environment, to grow the human heart (Chennai: East West Books), 2005 pp.116-117.
3. Ikeda, Daisaku: 2009 Peace Proposal-‘Toward Humanitarian Competition: A New Current in History’
4. Time Magazine Sep. 29, 2008 –‘The price of greed’
5. Marriott School of Management, Brigham Young University, 1998 Alumni Magazine article- ‘The Seven Blunders of the Modern World’ by Don Adolphson, Neil Brady, Roger Terry and Warner Woodworth.

References: 1. Covey, Stephen. R, Principle-Centered Leadership (New York: Free Press), 1990, pp.87-93. 2. Swaminathan, M.S and Ikeda, Daisaku, Revolutions to green the environment, to grow the human heart (Chennai: East West Books), 2005 pp.116-117. 3. Ikeda, Daisaku: 2009 Peace Proposal-‘Toward Humanitarian Competition: A New Current in History’ 4. Time Magazine Sep. 29, 2008 –‘The price of greed’ 5. Marriott School of Management, Brigham Young University, 1998 Alumni Magazine article- ‘The Seven Blunders of the Modern World’ by Don Adolphson, Neil Brady, Roger Terry and Warner Woodworth.