Global financial crisis: dharmic transgressions and solutions

Abstract

Purpose -The 2008-2009 global crisis was not only a financial calamity, but also a major ethical disaster. The purpose of this paper is to discuss the dharmic transgressions that took place in connection with the crisis using the philosophy of Bhagavan Sri Sathya Sai Baba, a world spiritual leader and teacher. Design/methodology/approach -The paper initially gives a brief overview of the unfolding crisis, its devastation of the world economy and a review of related literature. The paper then outlines the concept of dharma which, as expounded by Bhagavan Baba, must ultimately result in social welfare.The paper goes on to analyze the factors that created, triggered and fuelled the crisis from this perspective. The paper also outlines solutions based on Baba's philosophy to prevent such a crisis from occurring in the future. Findings -The fundamental finding of the paper is that the global financial crisis was triggered and fuelled by factors which were transgressions of dharma. Thus, the solution to prevent such a crisis is adherence to dharma. Practical implications -The paper gives several recommendations to investors, institutions and regulators to act in a way to prevent such crises in the future. Social implications -If the principles of dharma are adhered to, they will not only prevent occurrence of financial crises, but will also make the financial system work for the welfare of the entire society. Originality/value -The paper shows the relevance of the teachings of Bhagavan Baba which are quintessentially the philosophy of "Sanathana Dharma" (eternal dharma) in solving current economic problems and contributing to social welfare.

Global Economic Crisis 2008: A Contemporary Reappraisal with an Ethical Perspective

“…Second, it is widely believed that financial systems have lately been guided by the disastrous presumption that "profits are private whereas losses are public". It may be shown, as has been done by Sivakumar and Krishnaswami (2012) how enlightened religious codes of conduct are relevant to economic crises like the one under discussion.…”

Economic Crisis and the Nature of Entrepreneurial and Management Activities

“…The global financial crisis was triggered and fuelled by factors which were transgressions of dharma. Thus, the solution to prevent such a crisis is adherence to dharma (Sivakumar & Krishnaswami, 2011) The last crisis definitely affixed its seal on the business ambient and entrepreneurship development. Determinants of the environment in recession conditions moved in the direction of financial indebtedness of governments in the countries seized by crisis, the price increase of indebtedness because of increased risk, budget deficit growth.…”