Economic implications of Hinduism

Hinduism, a polytheistic religion and perhaps the oldest of the great world religions, dates back
about 6,000 years. Hinduism comprises so many different beliefs and rituals that some
sociologists have suggested thinking of it as a grouping of interrelated religions.
Hinduism teaches the concept of reincarnation—the belief that all living organisms continue
eternally in cycles of birth, death, and rebirth. Similarly, Hinduism teaches the caste system, in
which a person's previous incarnations determine that person's hierarchical position in this life.
This system implies high transaction costs that could nevertheless be offset by the high level of
trust between the trading castes. Each caste comes with its own set of responsibilities and duties,
and how well a person executes these tasks in the current life determines that person's position in
the next incarnation.
Hindus acknowledge the existence of both male and female gods, but they believe that the
ultimate divine energy exists beyond these descriptions and categories. The divine soul is present
and active in all living things.
Economic implications of Buddhism
Buddhism originates in the teachings of the Buddha, or the “Enlightened One” (Siddhartha
Gautama)—a 6th century B.C. Hindu prince of southern Nepal. Humans, according to the
Buddha, can escape the cycles of reincarnation by renouncing their earthly desires and seeking a
life of meditation and self‐discipline. The ultimate objective of Buddhism is to attain Nirvana,
which is a state of total spiritual satisfaction. Like Hinduism, Buddhism allows religious
divergence. Unlike it, though, Buddhism rejects ritual and the caste system. Buddhism does not
include explicit guidelines for economic behavior. An important principle of Buddhism is the
principle of interdependence. Life should be perceived as an inextricable web in which nothing
can claim separate or static existence. While a global religion, Buddhism today most commonly
lies in such areas of the Far East as China, Japan, Korea, Sri Lanka, Thailand, and Burma. A
recognized “denomination” of Buddhism is Zen Buddhism, which attempts to transmit the ideas
of Buddhism without requiring acceptance of all of the teachings of Buddha.

Economic implications of Confucianism

Confucius, or K'ung Futzu, lived at the same time as the Buddha. Confucius's followers, like
those of Lao‐tzu, the founder of Taoism, saw him as a moral teacher and wise man—not a
religious god, prophet, or leader. Confucianism's main goal is the attainment of inner harmony
with nature. This includes the veneration of ancestors. Early on, the ruling classes of China
widely embraced Confucianism. Taoism shares similar principles with Confucianism. The
teachings of Lao‐tzu stress the importance of meditation and nonviolence as means of reaching
higher levels of existence. While some Chinese still practice Confucianism and Taoism, these
religions have lost much of their impetus due to resistance from today's Communist government.
However, some concepts of Taoism, like reincarnation, have found an expression in modern
“New Age” religions.
Economic implications of Islam
Islam is the youngest of the fi ve world religions considered in this paper. At the core of Islam is
Prophet Mohammed (570-632) who is at the origin of the Koran, the main text of the Islamic
religion. Prophet Mohammed grew up in a family of traders. Concerning trade, the Islamic view
differs substantially from the Christian one. Whereas for Christians trade is a necessity that does
not add value to the commodity traded, in Islam trading is considered as important as producing.
It is argued that without the exchange of goods, production would be worth much less. Wealth is
seen as a mean of serving God and not an end in itself. Wealth also comes with responsibilities,
most prominently with the responsibility to give. And since believers are promised much more in
the afterlife, material wealth in this world is seen as secondary. Two other particularities might
have an impact on the trading behavior of Muslim people. First, in the Islamic world, traders are
highly respected as knowledgeable individuals since they contributed historically to the
dissemination of knowledge. Second, traditional Islamic teaching and writing put much more
emphasis on qualitative rather than on quantitative aspects.
Christianity
During its 2000 year old history Christianity has become the religion with the most numerous
adherents worldwide. Christian beliefs are all based on the Bible containing the Old and New
Testament. Concerning trade there is relatively little written in the Old Testament and even less
in the New Testament (Wilson 1997). The values of trust and honesty which are important
prerequisites for trade are compatible with Christian morality. In summary, the Christian
economic thinking recognizes the market system, but places some constraints on it which are
defined by Christian ethical standards. Trade is not treated explicitly and probably seen more as a
necessity than a contribution to the economic well-being.