Global financial crisis: dharmic transgressions and solutions

N. Sivakumar and Sundara R. Krishnaswami

International Journal of Social Economics, 2012, vol. 39, issue 1/2, 39-54

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.

Keywords: World economy; Social welfare economics; Economic depression; Global financial crisis; Dharma; Bhagawan Sri Sathya Sai Baba (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijsepp:v:39:y:2012:i:1/2:p:39-54

DOI: 10.1108/03068291211188866

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