Buddhism and Rational Economic Activity

Abstract Rational economic development and growth are sometimes questioned today, in the West as well as in the East. In this context I have tried to reexamine Max Weber' s thesis on India and particularly on Buddhism. The first part of the paper intends to clarify what Weber meant by rational economics and what he saw as the implications. The second part reviews traditional and modern Buddhist thought and customs relating to economic activities, from Asoka to the Sarvodaya movement. It is concluded that a great deal of ambiguity exists in Buddhist countries with respect to economic activity and that rational economics in the Weberian sense are not rooted in the Buddhist tradition - as opposed to the 'iron cage' of the Occident.