''Small Is Beautiful: A Study of Economics As If People Mattered'' is a collection of essays published in 1973 by German-born British economist E. F. Schumacher. The title "Small Is Beautiful" came from a principle espoused by Schumacher's teacher

Leopold Kohr Leopold Kohr (5 October 1909 – 26 February 1994) was an economist, jurist and political scientist known both for his opposition to the "cult of bigness" in social organization and as one of those who inspired the ''Small Is Beautiful'' movement. ...

Dr. Leopold Kohr, 84; Backed Smaller States

New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...

obituary, 28 February 1994. (1909–1994) advancing small, appropriate technologies, policies, and polities as a superior alternative to the mainstream ethos of "bigger is better". Overlapping environmental, social, and economic forces such as the

1973 energy crisis In October 1973, the Organization of Arab Petroleum Exporting Countries (OAPEC) announced that it was implementing a total oil embargo against countries that had supported Israel at any point during the 1973 Yom Kippur War, which began after E ...

and popularisation of the concept of

globalisation Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...

helped bring Schumacher's ''Small Is Beautiful'' critiques of

mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a basis for discussion. Also known as orthodox economics, it can be contrasted to ...

to a wider audience during the 1970s. In 1995 ''

The Times Literary Supplement ''The Times Literary Supplement'' (''TLS'') is a weekly literary review published in London by News UK, a subsidiary of News Corp. History The ''TLS'' first appeared in 1902 as a supplement to ''The Times'' but became a separate publication ...

'' ranked ''Small Is Beautiful'' among the 100 most influential books published since

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

, October 6, 1995, p. 39 A further edition with commentaries was published in 1999. Schumacher, E. F.; ''Small Is Beautiful: Economics As If People Mattered : 25 Years Later...With Commentaries'' (1999). Hartley & Marks Publishers Honoring the 50th anniversary of ''Small is Beautiful'' in 2023, the Schumacher Center for a New Economics commissioned an updated study guide from British author and Journalist David Boyle.

Synopsis

''Small Is Beautiful'' is divided into four parts: "The Modern World", "Resources", "The Third World", and "Organization and Ownership". * Part I – summarizes the economic world of the early 1970s from Schumacher's perspective. In the first chapter, "The Problem of Production", Schumacher argues that the modern economy is unsustainable.

Natural resources Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. ...

(like

fossil fuel A fossil fuel is a flammable carbon compound- or hydrocarbon-containing material formed naturally in the Earth's crust from the buried remains of prehistoric organisms (animals, plants or microplanktons), a process that occurs within geolog ...

s), are treated as expendable income, when in fact they should be treated as capital, since they are not renewable, and thus subject to eventual depletion. He further argues that nature's resistance to

pollution Pollution is the introduction of contaminants into the natural environment that cause harm. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the component ...

is limited as well. He concludes that government effort must be concentrated on

sustainable development Sustainable development is an approach to growth and Human development (economics), human development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.United Nations General ...

, because relatively minor improvements, for example,

technology transfer Technology transfer (TT), also called transfer of technology (TOT), is the process of transferring (disseminating) technology from the person or organization that owns or holds it to another person or organization, in an attempt to transform invent ...

Third World The term Third World arose during the Cold War to define countries that remained non-aligned with either NATO or the Warsaw Pact. The United States, Canada, Taiwan, Japan, South Korea, the Southern Cone, NATO, Western European countries and oth ...

countries, will not solve the underlying problem of an unsustainable economy. Schumacher's philosophy is one of "enoughness", appreciating both human needs and limitations, and appropriate use of technology. It grew out of his study of village-based economics, which he later termed

Buddhist economics Buddhist economics is a spiritual and philosophical approach to the study of economics. It examines the psychology of the human mind and the emotions that direct economic activity, in particular concepts such as anxiety, aspirations and self ...

, which is the subject of the book's fourth chapter. * Part II – casts Education as the greatest resource, and discusses Land, Industry, Nuclear Energy and the human impact of Technology. * Part III – discusses the gap between the center of the World System and the developing world as it existed then, with a focus on village culture and unemployment in India. * Part IV – presents a sketch of a Theory of Large Scale Organization, takes issue with platitudes about capitalism as a social order and discusses alternatives. Chapter 3 of this part concludes with advice to socialists:

"Socialists should insist on using the nationalised industries not simply to out-capitalise the capitalists – an attempt in which they may or may not succeed – but to evolve a more democratic and dignified system of industrial administration, a more humane employment of machinery, and a more intelligent utilization of the fruits of human ingenuity and effort. If they can do this, they have the future in their hands. If they cannot, they have nothing to offer that is worthy of the sweat of free-born men." (Part IV, Chapter 3 'Socialism')

References

External links

Full Text of ''Small is Beautiful''
at ditext.com
The Schumacher Institute for Sustainable Systems home page
{{Authority control 1973 non-fiction books Appropriate technology advocates Blond & Briggs books Environmental non-fiction books Simple living Sustainability books 1973 neologisms 1973 quotations Quotations from literature Books in philosophy of technology 1973 oil crisis British essay collections

Synopsis

See also

References

External links