Title: Lessons from the global financial crisis: bringing neoclassical and Buddhist economics theories together to progress global business decision making in the 21st century

Authors: Umesh Sharma

Addresses: Department of Accounting, Waikato Management School, University of Waikato, P.O. Box 3105, Hamilton 3240, New Zealand

Abstract: The aim of this paper is examine how moral failure shaped the global financial crisis with particular attention to the role of neoclassical economics theory. The paper compares the premises and characteristics of Schumacher's (1973) Buddhist economics with the prevailing neoclassical economics, illustrating the narrowness of the current perspective and highlighting the critical issues. Expanding on the Buddhist economics (BE), the paper explicates how such a theory can be integrated with neoclassical economics to facilitate moral and ethical values in society. The paper considers the lessons to be learnt from the global financial crisis and calls for greater consideration of Buddhist economics in business decision making in the 21st century. A synthesis of the two-neoclassical economics perspective and BE may create a holistic view of management and economics which recognises that people matter. This may go in some length to avoid a further financial crisis of the kind we experienced recently.

Keywords: neoclassical economics; Buddhist economics; global financial crisis; ethics; material wealth; global business; business decision making; globalisation; ethical values; moral values.

DOI: 10.1504/IJCA.2013.055478

International Journal of Critical Accounting, 2013 Vol.5 No.3, pp.250 - 263

Published online: 28 Nov 2013 *

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