![Faith, Finance & Enterprise in South Asia: Are they connected?](http://media.assettype.com/iglobalnews%2F2022-07%2F76c55028-b266-4ce3-96d7-42272694ff9d%2FAtul_Shah.jpg?rect=0%2C9%2C862%2C485&w=480&auto=format%2Ccompress&fit=max)
The South Asia Centre at the London School of Economics last week hosted me on their interview series, on this important and timely topic. Business and Commerce involve risk, and there are many people in the world who are not brought up in cultures or communities where business is commonly practiced. Instead, they have worked most of their lives for others, or have small, tiny businesses to feed the family – many people in the world are contented, contrary to modern myths, especially expounded by economic science. The event was Chaired by Professor Alnoor Bhimani, Director of the South Asia Centre, and Dr Adeel Malik from Oxford University was another panelist in this webinar.
There are groups and cultures where risk is not feared, and it is often seen as an opportunity to succeed and grow. In close communities, risk is shared and families often have history and traditions in commerce and enterprise. This means that the skills required for successful business are handed down between generations, and there is a lot of training and mentoring done in-house. Furthermore, there is an exchange of information, knowledge and market insights about products and services inside these trusted communities. Even finance and credit can be supplied within these mutual groups, where the quality of trust and relationships is such that people are very careful to repay any creditors as they do not wish to lose face or honour. There is little need for expensive lawyers or complicated contracts, which saves money, and in the case of dispute, there is resolution within the community, rather than at a remote courtroom which operates with a different set of rules and norms.
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At a basic level, belief is needed for anyone who is willing to take risk – a belief in their abilities, and a positive attitude in the possibilities of growth and success. Faith is not different from belief, even if its canvas and content may vary across countries and continents. Cultures, practices and membership within these groups can be nuanced and extremely diverse, even within the same faith groups in different parts of the world. Historic circumstances such as migration and discrimination may force people into business and enterprise as they cannot get jobs, and desperately need to earn a living to support their families.
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Unfortunately, despite the huge popularity and take-up of business education all over the world, the faith component is missing and often deliberately avoided, given the strong secular bias of higher education institutions. This is a serious drawback, given the research evidence on the significance of faith in economies all over the world. ‘The Divine Economy’ is a recent research book by Paul Seabright which looks at faiths all over the world as ‘platforms’ where people gather to meet one another, build relationships and communities, and also work and compete with one another in business and commerce. One study shows that in 2016, the total revenues of faith groups in USA were $600 billion dollars – a significant proportion of the national economy. They find that all over the world, faith plays a big influence not just in enterprise but also in building social and cultural capital, which shapes the sustainability and economic development. Seabright also shows the diversity of faiths and the different ways in which they operate, explaining that religious organisations often depend on business and commercial skills for groups to survive and build firm foundations. Large events and festivals require very sophisticated event management skills, and help connect, uplift and recharge whole groups of members.
Dr Malik was keen to focus on the politics of faiths and how they do not always practice what they preach, with the rich and the elites often using their power and influence to exploit the poor and the marginalised. All is not perfect, and networks that are formed in faith groups can also become close to politicians and use this to serve their own private interests, which is what he found in his research in Pakistan. For small farmers, debt obligations and interest rates can be serious burdens for rural communities, curbing their development and growth.
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In India, faith is a big influence all over the country in the beliefs and practices of people from across the economic and cultural spectrums. Given the depth of this history, it is not difficult to see how it plays a major factor in career choices, methods of working and organisation, and attitudes to risk, trust, relationships and honour. Temple and Gurdwaras often have mini economies surrounding them, with flower sellers, fruit sellers and small traders waiting to serve the needs of pilgrims and worshippers. I estimate that at least 50 per cent of India’s organisations and institutions are influenced by faith in some degree or another – a highly significant statistic given the size and global impact of the Indian economy.
Given our global ethical crises, it is about time that the reality of the impact of faith, positive or adverse, comes into the business curriculum and is not ignored or discriminated against. Often it provides leaders with purpose and meaning, which are critical to sustainable development. It will also make business education very interesting and realistic, and decolonised too!
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Professor Atul K. Shah [@atulkshah] teaches and writes about Indian wisdom on business, culture and community at various UK universities and is a renowned international author, speaker and broadcaster.