Dharmanomics: An inclusive and sustainable growth model for India and the world

I just read Dharmanomics by Sriram Balasubramanian (SB), a well-known economist.

SB wrote the bestseller Kautilyanomics: For Modern Times, which reinterprets Kautilya’s Arthashastra and its relevance in India’s current economic context.

The merit of Dharmanomics is that it does 3 things synergistically:

First, the book introduces — actually advocates — an indigenous and sustainable economic model for India and the world: Dharmanomics

The 3 pillars of Dharmanomics are:

- Kautilyan Dharmic Capitalism (KDC): KDC is based on a rule-based yet non-intrusive state, decentralized socio-political governance, wealth creation via a global outlook (international trade), and sustainable growth and welfare.

- Temple-based Dharmic Ecosystem: Temples are not just religious institutions; they act as the largest driver of jobs creation and economic growth in the state. Temples act as the “keystone” (lynchpin) of regional economic ecosystems.

- Sreni Dharma. The Sreni or guilds were “associations of people engaged in the same craft or profession and were prevalent in various parts of India from around 600 BCE to 1200 CE”. These corporate guilds regulated and promoted ethical trade activities within Bharat and with foreign nations.

I would proudly note here that my ancestors Chettiars were entrepreneurial traders and bankers. The Chettiars formed an influential Sreni. They forged enduring trade links with Burma (present-day Myanmar) and Southeast Asia.

Second, the book (70% of its content) convincingly shows how Dharmanomics was practiced uninterrupted for over 4500 years in Bharat — since the Saraswati-Sindhu (Indus) civilization through the Common Era (CE) kingdoms including the Cholas, Pallavas, Pandyas, Vijayanagar.

Dharmanomics was also implemented in Southeast Asian kingdoms that existed in Cambodia, Vietnam, Thailand, Indonesia

Third, the book argues that — and this is my FAVORITE part — Dharmanomics offers an endogenous (produced from within) and sustainable framework to:

- address India’s current socio-economic issues
- realize Viksit Bharat without creating “negative externalities”

As SB concludes in the book:

“A Dharmic growth model which places moral values as the foundation of economic prosperity would be an important factor in sustaining economic growth (in India) in an inclusive and holistic manner

The balance between economic growth and holistic development — in other words, the Dharmic balance — is an important component of progress

In the next few decades, Bharat’s leadership in building such a Dharmic balance would be an example for the rest of the world to emulate”

I really love this book!

I see great synergies between Dharmanomics and the Frugal Economy, explored in my new book.

I would love to explore with SB the alignment between the 3 pillars of Dharmanomics and the 3 Dharmic principles of a Frugal Economy:

- Cooperation: by sharing resources & knowledge (as the Sreni did)
- Distribution: by decentralizing (localizing) economic value creation
- Triple Regeneration: by revitalizing People, Places, Planet altogether

Read SB’s interview in Outlook Business about Dharmanomics.