Neoliberal Capitalism in Crisis: Solutions from Confucius, Gandhi, and Psychological Science Ravi Bhoothalingam1 Executive Summary The Brexit and Trump phenomena have revealed the hollowness of neoliberal capitalism in delivering material prosperity – let alone happiness – to large numbers of people in the developed world. The developing world, meanwhile, is still far behind, and many can see that following the same model would lead them into a similar crisis, along with almost certain catastrophic environmental devastation. What is to be done? This paper starts with a scientific look at identity. Whilst many narrow expressions of identity can (and do) lead to undesirable consequences, the latest research in psycholinguistics shows that language differences can generate creative options to solve difficult problems. Starting with the neurochemical basis of happiness, the paper shows how the present paradigm of development results in a vicious circle, delivering dissatisfaction rather than happiness. The paper then examines in greater detail the contributions Confucius and Gandhi – from totally different intellectual and cultural traditions – could make to resolving our contemporary crisis and the ways in which their models could deliver both prosperity and human happiness. It examines the Confucian and the Gandhian approaches and their fundamental precepts in some detail, including their methodologies, focus, moral outlook, and effectiveness in delivering prosperity and individual self-realisation. How would their models impact governance and environmental consequences today? How could they create a total world community of dignity and fairness for all, where human beings could live together in peace and in harmony with nature? Is there a way in which teachings from both Confucius and Gandhi could be creatively combined to show humanity a new way forward in the twenty-first century? The paper’s special feature lies in integrating modern science into such an enquiry. Practical Suggestions: 1 The views and opinions expressed in this publication are those of the original author(s) and do not necessarily represent or reflect the views and opinions of the Dialogue of Civilizations Research Institute, its co-founders, or its staff members. 2 re-introduce activist government to provide universal education and universal healthcare for all citizens; focus on care-giving, nutrition, and healthcare for the elderly and for pre- school children; raise funds by abolishing corporate tax havens and levying heavy tax on armament production and export; make green economic development the norm; revitalise villages and the countryside using digitalisation and 3-D printing to create economic activity and livelihoods through innovation; make science and ethics part of the core curriculum for all students. Keywords: Confucius; Gandhi; psychological science; psycholinguistics; serotonin; oxytocin; neoliberal capitalism; happiness 3 The long, hot summer of 2016 has not yet ended, but it has been a tumultuous period nevertheless. At the very height of midsummer came the shock of ‘Brexit’— the decision of voters in the United Kingdom, in a special referendum, for that country to exit the European Union. The weeks that followed saw the Donald Trump ‘phenomenon’ reach its peak with his nomination as the candidate of the Republican Party to contest the election for the Presidency of the United States of America. Both of these events have been worn threadbare in the media and in scholarly analysis, and there is an emerging consensus that they are the early but serious symptoms of neoliberal capitalism in deep crisis. In both cases, these upheavals have been triggered by the inchoate but furious reaction of large masses of people who have not experienced any increase in prosperity—indeed, who have seen their incomes fall over the decades. As Martin Jacques explains, In the period 1948–1972, every section of the American population experienced very similar and sizable increases in their standard of living; between 1972–2013, the bottom 10% experienced falling real income while the top 10% did far better than everyone else. In the US, the median real income for full-time male workers is now lower than it was four decades ago: the income of the bottom 90% of the population has stagnated for over 30 years. A not so dissimilar picture is true of the UK. And the problem has grown more serious since the financial crisis. On average, between 65–70% of households in 25 high-income economies experienced stagnant or falling real incomes between 2005 and 2014. (Jacques, 2016). It was not supposed to be like this. After the collapse of the Soviet Union, democracy and market capitalism reigned supreme, with no rival save that of an unlikely candidate—China—then enmeshed in the aftermath of the Tian An Men Square debacle. Democracy and market capitalism would deliver—it was said—freedom and prosperity to all inhabitants of the planet who embraced this system. True, some might do somewhat better than others, but that would be a relatively small price to 4 pay. It was not surprising that it was at this time that Francis Fukuyama wrote his celebrated book The End of History (1992), for it seemed that there was little need for any great new ideas. The natural momentum of democracy and capitalism would take care of it all. Events since that time—and particularly following the global financial crisis of 2008—have been a harsh reminder that things have not worked out quite as neatly, especially for the developed world. As Jacques has pointed out, economic inequalities have continued to worsen. Healthcare access has become both difficult and expensive, the burden of college debt crippling, out-sourcing of jobs and automation has hollowed out manufacturing jobs, and for the first time in many generations, the future looks bleaker than the past. The developing world has continued to benefit in economic terms, but it is still far behind. Meanwhile, the cost in environmental terms has been horrific, adding to the legacy of stress already imposed on the planet through the exploitation of natural resources that commenced in the developed world and carried on throughout the Industrial Revolution. This stress manifests through more frequent and unusually destructive weather events, epidemics, acidification of the seas, the melting of polar ice, destruction of natural species, and more. Today, in their pursuit of growth, the developing countries confront the dilemma aptly described by Gandhi: ‘The world has enough for everyone’s need, but not for everyone’s greed’ (Bhalla, 1984). Brexit and Trump also reflect social tensions. Job outsourcing, immigration, multi-culturalism, politically and economically-induced migration, and an almost constant state of warfare in foreign parts has induced a general sense of insecurity and trepidation. This is accentuated by the acts of terrorism occurring all over the world in a dizzyingly unpredictable manner. The combined effect has been to 5 encourage primitive feelings of tribalism, a fear of strangers, and a narrow interpretation of human identity. If we are to navigate our way out of this morass, we must rethink identity from the roots. We must also re-examine our approach to the ‘pursuit of happiness’. It is in these areas that we may find some guidance from the apparently unlikely combination of modern psychological science and the thoughts of Confucius and Gandhi. 1. Science and Human Identity The biological sciences have established by now that the human body (and mind) is in a state of constant change. Cells are dying and others are being created. Neurons die, never to be replaced. A vast network of micro-organisms of various types inhabits our gut, skin, and other organs. Collectively, they cover our body with a kind of envelope known as the ‘macro-biome’. Therefore, the identity that I consider as ‘me’ is essentially a constantly changing kaleidoscope of cells, organisms, and chemicals. These changes fundamentally affect the character of the ‘me’ and the manifestations of my social identity as father, brother, son, citizen, scholar, etc. Further, genetic science has revealed insignificant differences between different races of humankind, thus disproving eugenic and racial supremacist theories floated in the 1920s and 1930s. But equally, the science of psycholinguistics—pioneered by Whorf, Sapir, Vygotsky, and others—has shown that the language one speaks affects the way one thinks to a significant extent (Lucy, 1992; Lucy and Wertsch, 1987: 67–86). And if the way that one thinks is a marker of identity, then it follows that language is an important—indeed primary—determinant of identity. It is primary in the sense that culture and all other socially determined elements of identity formation take place 6 through the medium of language—the ‘mother tongue’ through which every child receives his or her early socialisation. The following paragraph presents a summary of my own work on how Mandarin and Sanskrit have influenced Chinese and Indian ways of thinking (Bhoothalingam, 2010). Let us consider the root languages2 of the Indian and Chinese civilisations— Sanskrit and Mandarin, respectively. These languages could not be more different— in script, grammar, construction, and syntax. The highly visual and character-based Chinese language stimulates different areas of the brain compared to the complex, grammatical, and alphabetic language that is Sanskrit. Modern neuro-linguistic theory has established that the structure of a language shapes the ways in which its speakers perceive and think about the world (Boroditsky, 2003). This should not be read as a deterministic rule, but as an influential tendency which, when aggregated over a large number of people, results in Indian and Chinese individuals displaying noticeably different responses and reactions to similar sets of stimuli. We may think of languages as analogous to different computer operating programmes—just like iOS or Android operating systems, they will perform all the normal operations of email, visual and voice functions, and more, but there are areas (which users swear by) where each system has its own special edge.