ECONOMIC PERFORMANCE OF GREAT RELIGIONS

Paul Fudulu

CHAPTERS
I. WEBERS RATIONALISM VERSUS THE GENERAL POWER PERSPECTIVE II. THE MODEL III. THE PREFERENCE FOR ABSOLUTE WEALTH IV. THE KIND OF DIVINITY V. THE KIND OF SALVATION VI. CONCLUSIONS
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Webers rationalism as a indirect determinant of capitalism Magical and religious forces Certain types of rational practical conduct Economic rationalism Protestantism (English Puritanism) Rational asceticism Economic rationalism

WEBERS FUNDAMENTAL ASSUMPTIONS

Wealth is the general or trans-cultural megaobjective Capitalism is consistent with any culture

 Variation in performance is determined by variation in rationalism

FUNDAMENTAL IMPLICATION OF NO VARIATION IN MEGAENDS

Rationalism dependent on biological or anthropological factors and explained by comparative racial neurology and psychology The same logic in the present: North and others
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THE MODEL OF GENERAL POWER

The general power maximand: (absolute)wealth + (relative)power The double meaning of ordinary wealth: absolute wealth + relative wealth (power component of wealth) Reasons: other social sciences, human behavior within other cultures, the descriptive power of the model

IMPLICATIONS OF THE GENERAL POWER MODEL (I)

Implication for the definition of rules Implication for the definition of institutions Implication for an economic definition of culture Implication for the definition of satisfaction and preferences

IMPLICATIONS OF THE GENERAL POWER MODEL (II)

The inverse relationship between opportunity costs and preferences The rule for the institutional choice The available power theory: the relationship between climate, power level and economic performance

INSTITUTIONS AS OPPORTUNITY COSTS: FREE MARKET AND CENTRAL PLANNING

Wealth

Wealth

Power

Power

Free Market

Central Planning
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CULTURES AS INDIFFERNCE CURVES FOR WEALTH AND POWER: GREEK AND WESTERN CULTURE
Wealth Wealth

Power

Power

Greco-Roman Culture

Western Culture
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WEALTH AND POVERTY AS A RATIONAL CHOICES

Wealth Wealth

Power

Power

High Preference and Low Oportunity Cost for Wealth

Low Preference and High Oportunity Cost for Wealth

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THE GENERAL POWER MODEL VERSUS WEBERS RATIONALISM IN TWO SITUATIONS

A. The Puritan believer compared to the Catholic believer The Weberian perspective: The Puritans conduct: planned and systematic character for his whole life The Catholic: a life from hand-to-mouth

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THE GENERAL POWER MODEL VERSUS WEBERS RATIONALISM IN TWO SITUATIONS (II)

The general power perspective: The Puritan: focused on absolute wealth The Catholic believer: relatively more focused on power Different objectives entail different rationalisms
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THE GENERAL POWER MODEL VERSUS WEBERS RATIONALISM IN TWO SITUATIONS (III) B. The Western judge compared to the Chinese judge The Weberian perspective: The Western judge: acting based on formal laws, irrespective of person The Chinese judge: in accordance with the concrete qualities of the people concerned and the concrete situation... (Weber, 1984:49).

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THE GENERAL POWER MODEL VERSUS WEBERS RATIONALISM IN TWO SITUATIONS (III)

The general power perspective: The Western judge: many stereotyped choice situations (equal persons, same situations) The Chinese judge: singular and very different choice situations (different power levels of he interacting parties, different situations)

For the two judges choice situations are different; choice situations determine rules
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DETERMINING THE CONSISTENCY LEVEL

The logic: the preference for the mega-objective of wealth determines the level of economic performance (the level of human and other resources sacrificed for the production of wealth) Determining the preference for wealth: directly and indirectly (through the opportunity cost of abosolute wealth, the preference for relative power and the opportunity cost of power)
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THE DIRECT CRITERIA OF CONSISTENCY

Preference for ordinary wealth, Type of asceticism, Level of encouragement of saving (productive) Level of prohibition of interest

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THE INDIRECT CRITERIA OF CONSISTENCY

Kind of divinity Kind of salvation (the role of churches, priests and sacraments) Encouragement of obedience to earthly authorities Power of man over woman Type of social justice which is encouraged Level of separation of religious authorities from the earthly ones and Type of organization of the church.
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THE PREFERENCE FOR ABSOLUTE WEALTH

Absolute wealth and relative wealth and the need for additional information Absolute wealth associated with: maximization of the profit as an end in itself, functional asceticism (a level of asceticism which is compatible with absolute wealth growth), rejection of consumerism, encouragement of standardization of life (which is compatible with the standardization of production and efficiency), labour as calling, specialization in one field Relative wealth associated with:high preference for leisure, sociability, idle talk, luxury consumption, ostentatious consumption, sports, hunting, all-round education

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Protestantism and Confucianism Protestantism: To wish to be poor was...the same as wishing to be unhealthy (Weber, 1985:163) Confucianism: However in the whole orthodox literature a high regard for economic activity is notably conspicuous. Even Confucius would strive after riches... (Weber, 1984:52)
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ABSOLUTE VERSUS RELATIVE WEALTH IN PROTESTANTISM The certainty of salvation is achieved by profeciency in a calling About Protestant businessman: He avoids ostentation and uncessary expenditure, as well as conscious enjoyment of his power, and is embarrassed by the outward signs of the social recognition which he receives (Weber, 1985:71)
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ABSOLUTE VERSUS RELATIVE WEALTH IN CONFUCIANISM Even Confucius would strive after riches, though it might be as a servant, whip in hand (Weber, 1984:53). Profit-making through husbundry, medicine, or being a priest is regarded as the lesser (i.e.inferior) way (Weber, 1984:53). To a Confucianist, an all-round education was better than expertise in a single thing (Weber, 1984:53)
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CONSISTENCY LEVEL BY THE CRITERION OF THE PREFERENCE FOR ABSOLUTE WEALTH High: Judaism, Protestantism Low: Catholicism, Orthodoxism, Confucianism, Buddhism Not ranked: Islamism

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THE KIND OF DIVINITY: Monotheism, Polytheism and All-Soul

Monotheism makes possible any power level, except infinite power, but it is only monotheism that makes possible the highest consistency with economic performance and it is no accident that it was refined by no others than Jews after many centuries. Polytheism implies different simultaneous rankings of the mega-goods wealth and power and, as such, the idea of inequality is intrinsic; All-Soul. Instead of a fellowship with God but never God, the individual becomes part of the absolute, part of the divinity
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THE KIND OF DIVINITY: Monotheism, Polytheism and All-Soul: THE RANKING Relatively higher: Judaism, Protestantism, Catholicism, Orthodoxism and Islamism Close to zero: Buddhism Not ranked: Confucianism

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THE KIND OF DIVINITY : Transcendence

Transcendence suggests a significant limitation of individuals power; an individual can never become God. Lack of transcendence opens the gate to intermediaries, saviours and mysticism and allows a considerable degree of earthly power concentration The entailed consistency ranking, listed in an descending order: Judaism, Protestantism (Puritanism, Lutheranism), Catholicism, Orthodoxism, Islamism, Buddhism Not ranked: Confucianism
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THE KIND OF SALVATION

Ways to salvation: works, faith, meditation and divine Grace Actors:
Individual believer seeking salvation, Intermediary which could be a priest, a magician or redeemer God a

Actors: divine and earthly. The greater the role of earthly actors, the higher is the power concentration
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Ways to salvation and the concentration of human power (I)

The divine Grace does not bring any danger; individual is saved by just Gods and there is no earthly actor involved and as such no earthly power, individual or institutional, is encouraged to develop or is justified Works pose the danger of sinful human pride or tendency to absolutization or becoming. Luther rejected works as a way to salvation because he was worried about laws, teachings of men, perverse leviathan and the fact that freedom and faith are destroyed (M. Luther, apud. Hillerbrand, 1968:19);

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Ways to salvation and the concentration of human power (II)

By faith the role of the believer in salvation is somehow diluted but another danger emerges: the role and, consequently, the power of the intermediaries, individual or institutional. The magician, the priest and the church pretend to have the monopoly of mysteries that can help individual to reunite with God Meditation: Salvation is wholly individuals performance, without redeemers, God, priests, magicians or other individuals. It is for this reason that the Buddhists monk can propel himself even beyond the station of gods; there cannot be a higher level of power attained by a human being and no greater inconsistency with economic performance
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SALVATION IN ORTHODOXISM
Salvation can be appropriated by a personal effort (Bulgakov, 1988:106), through the action of faith, but the striving for salvation is also expressed by works, because Faith without works is dead (Bulgakov,1988:107). the truth of the Word of God is possible only if one is in spiritual union with the Church (Bulgakov, 1988:13). And for the reception of the Grace of the Holy Spirit, which, of course, abides in the Church, God has been pleased to established a definite way...in the holy mysteries or sacraments (Bulgakov, 1988:111)
Conclusion: Salvation in orthodoxism is achieved mostly through earthly actors
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SALVATION IN CATHOLICISM
Similar to the Orthodox one There is more mysticism in Orthodoxism The Catholic Church is more inclined to fight for its cause in the real world, while the Eastern or the Orthodox is more on a defensive stance The people of God so characteristic of Orthodoxy, are the poor and simple, outwardly powerless or those who are without defence (Bulgakov, 1988:151)

Conclusion: Salvation in Orthodoxism is achieved such as to encourage slightly less power inequality in comparison to Orthodoxism
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SALVATION IN LUTHERANISM
Luther was possessed by a feeling of revolt against God, ecclesiastical and civil authorities, all threatening and asking for works : Though I lived as a monk without reproach, I felt that I was a sinner before God with an extremely disturbed conscience. I could not believe that He was placated by my satisfaction. I did not love, yes, I hated the righteous God who punishes sinners (Luther, appud. Hillerbrand, 1968:2) passive righteousness with which merciful God justifies us by faith (Luther, appud.Hillerbarnd, 1968:2), Christian man is a free man and does everything out of brotherly love Conclusion: Luther abandoned most of the earthly authorities: According to the Lutheran Church grace was revocable and could be won again by penitent humility and faithful trust in the word of God and in the sacraments (Weber, 1984:102
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SALVATION IN PURITANISM
Predestination: by Gods sovereign decrees part of humanity is saved, the rest damned. Grace is impossible to be lost as it is impossible to be attained by those to whom God has denied it. No priest, no church, no sacraments can help individual to change what God has decreed God cannot be moved by anything and anybody and no earthly power is justified on the ground of salvation

Conclusion: There is no greater power equality imaginable guarded by religious arrangements and no lower preference for power and, implicitly, higher preference for wealth
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SALVATION IN PURITANISM
Predestination: by Gods sovereign decrees part of humanity is saved, the rest damned. Grace is impossible to be lost as it is impossible to be attained by those to whom God has denied it. No priest, no church, no sacraments can help individual to change what God has decreed God cannot be moved by anything and anybody and no earthly power is justified on the ground of salvation

Conclusion: There is no greater power equality imaginable guarded by religious arrangements and no lower preference for power and, implicitly, higher preference for wealth

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SALVATION IN JUDAISM (I)

Salvation in Judaism is done by God and through human works Is Judaism below the level of consistency attained by Calvinism (and on the same level with Catholicism)? Two situations that suggest a No answer:
a/the Jews have done away very early with priests, mysticism and the institution of a church b/The Jewish fundamental commandment of equal love of fellow-man is nothing more than the principle of equal worth and, as such, of the fundamental equality of men

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SALVATION IN JUDAISM (II)

Is Judaism over the level of consistency attained by Calvinism? There is an argument for an Yes answer. The Calvinist is in his salvation completely isolated: no priests, no church, no other helpers. Under this limited aspect he is like a Buddhist monk. In Judaism salvation is through existential identification (Herberg, 1961:287). The Jew seeking salvation is fundamentally a member of a community and a Son of the Covenant; he is not the totally isolated Calvinist
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THE KIND OF SALVATION: THE RANKING The entailed consistency ranking, listed in an descending order: Judaism, Protestantism (Calvinism, Lutheranism), Catholicism, Orthodoxism, Buddhism Not ranked: Islamism, Confucianism

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CONCLUSIONS (I)
Because each religion is a set of values and rules which are rankings of the human mega-objectives wealth and power, a religion contains (mostly) in an encoded manner its consistency with economic performance The level of consistency is determined by the preference for the mega-objective of wealth and for almost all religions covered by the study the information is made available in an indirect manner by the preference for power, which itself has to be decoded

CONCLUSIONS (II)
Although the study covered a small part of the relevant literature, it is unlikely that might be the case of a different consistency ranking than the following: At the top there are Judaism and Protestantism (within it especially Calvinism) At the middle there are Catholicism and Orthodoxism The lowest consistency is scored by Islamism, Confucianism and Buddhism (especially ancient one)
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