Dharmonomics: Dharma And Economics

DHARMONOMICS: DHARMA AND ECONOMICS

Last month Daron Acemoglu, Simon Johnson and James Robinson won the Nobel Economics Prize for showing how institutions produce economic growth. In particular, they have shown the importance of 3 institutions:

1. Law and order 

2. Enforcement of contacts

3. Protection of property rights 

In ancient Indian philosophy, the concept of Dharma (order/morality) had 3 main components:

1. Satya (truth)

2. Asteya (not stealing)

3. Ahimsa (non-violence)

We can see that the 3 components of Dharma are similar to the 3 institutions that produce economic growth . . .