Small Is Beautiful by E. F. Schumacher
"Small Is Beautiful" by E.F. Schumacher is a collection of essays that critiques modern economic practices and advocates for a more human-centered approach to technology and organization. Schumacher argues that contemporary economists often prioritize profit over human needs, leading to the problematic growth of large businesses and the alienation of individuals from their creations. He emphasizes the importance of intermediate technologies that align with human values, particularly in the context of developing nations. The book is divided into four parts, focusing on various themes such as the misuse of resources, the implications of industrial techniques in the Third World, and alternative organizational structures that support human well-being.
Schumacher's work is influenced by his experiences as an economist and reflects a broader critique of industrialism, echoing sentiments from historical figures like Leo Tolstoy and Mohandas K. Gandhi. He seeks to integrate ethical and spiritual considerations into economic discussions, suggesting that a balance between profit and value-based decisions is essential for meaningful economic practices. Written in a period of heightened environmental awareness, "Small Is Beautiful" resonates with contemporary concerns about sustainability and the quality of life, advocating for a shift towards smaller, more ethical enterprises that prioritize community needs over mere economic growth.
Small Is Beautiful by E. F. Schumacher
First published: 1973
Type of work: Essays
Form and Content
E.F. Schumacher’s essays in Small Is Beautiful comment on the state of economics and the functioning of the economy; he is critical of both. In his opinion, economists are too tied to the notion that profits should be a determining factor in economic affairs; thus, they are blinded to many of the economy’s negative features. The features on which Schumacher focuses his attention are related to the form of modern technology, which employs the techniques of mass production. As a result, modern business firms have grown increasingly large and human beings have become dwarfed by their own creations. Nevertheless, Schumacher offers more than a critique. His book is a plea for a return to organizations and technologies more reflective of human needs and values. As he states,
I have no doubt that it is possible to give a new direction to technological development, a direction that shall lead it back to the real needs of man, and that also means: to the actual size of man. Man is small, and, therefore, small is beautiful.
In form, the book brings together nineteen essays, most of which were derived from articles and lectures presented by Schumacher between 1967 and 1972. From 1951 to 1971 Schumacher had worked as an economist for the British Coal Board, and his concerns with the environment, large-scale technology, energy, resources, and large organizations reflect that experience. Nevertheless, the essays are not highly technical, although some knowledge of economics is needed if the reader is to appreciate Schumacher’s criticisms of that discipline. Schumacher, who at one time converted to Buddhism, writes in a gently reproving manner. His work follows in the steps of that of other critics of industrialism, such as Leo Tolstoy, William Morris, and the counterculture of the 1960’s and 1970’s. His search for intermediate technologies and organizational structures suitable for meeting human needs is influenced by principles set forth by Mohandas K. Gandhi.
The book is divided into four parts, each containing four or five essays. The nineteen essays are all of approximately equal length (ten to twenty pages), with footnotes included at the end of the book. Part 1, “The Modern World,” is concerned with modern efforts to use science to enhance economic production and the problems this causes. Part 2, “Resources,” details the ways by which modern economies misuse their resources, especially those that are not renewable. In part 3, “The Third World,” Schumacher argues against taking the latest industrial techniques of richer countries as methods of fostering economic development in the poorer countries; instead, Third World nations should find intermediate-scale technologies to help them. In part 4, “Organization and Ownership,” Schumacher considers the patterns of ownership, including nationalization, and structures of organization that would be more compatible with human needs.
Because many of the essays were written earlier, there is some repetition of material. To help tie them together, Schumacher refers to previous points. In addition, he finishes the book with an epilogue in which he restates his basic themes.
Critical Context
The advanced economies of the West have had nearly a century of experience with industrialization and economic growth. During that time, the standard of living in those countries has risen dramatically. Along with this improved economic well-being has come a host of problems—social, political, and environmental. For most of this period, economists have extolled the successes and ignored the problems. Even when they have recognized the problems, they have maintained that science and technology would be able to solve them. In holding to this view they have argued that they, too, were dispassionately applying a science.
According to Schumacher, these economists are espousing a religion: Their theory that greed and profits will secure the best social decisions has no scientific basis. Although he mounts a strong attack on these presumptions, Schumacher is really seeking to attain balance in economic thinking. Economic decisions do need some measure of their worth, and profits serve this function well. Nevertheless, economic decisions that are not made within the context of a larger system of values become meaningless. Schumacher wants to incorporate into economics a system of values that combines Christian and Buddhist teachings. As a result, he can be criticized for seeing his own economics as a religion. Yet his infusion of religious values into economics is conscious, whereas traditional economists rarely appreciate the element of religiosity in their own thinking.
Schumacher also puts too much stress on the social influence of economics. Economists and economics tend to be influential only to the extent that they reflect dominant social values. Those who write about the virtues of the present economic system are heard because their views are in accord with powerful social forces, in this case the business community. Discordant voices are thus seldom needed. This applies to Schumacher as well. Small Is Beautiful was published at an opportune time, immediately after a decade of concern about the environment and just before a decade of energy crisis. Thus, Schumacher spoke almost as a prophet to a generation concerned with ecological problems and the difficulties that would exist as efforts were made to use nuclear energy as a replacement for fossil fuels. Small Is Beautiful is and will remain an influential book as long as there is concern over energy and the environment.
Traditional economists are interested in these problems, but their solutions rarely go beyond measuring the costs of environmental safety versus the lost benefits if a high standard of living is sacrificed. They continue to hope that profits can be used to solve the environmental and energy problems. Despite its inability to influence economists, Schumacher’s message that a standard of living is no substitute for a life worth living is an enduring one.
Bibliography
Barnes, Peter. Review in The New Republic. CLXX (June 15, 1974) p. 29.
Brynes, Asher. Review in The Nation. CCXVIII (June 8, 1974), p. 725.
Economist. Review. CCXLVII (June 23, 1973), p. 113.
Henderson, Hazel. “The Legacy of E.F. Schumacher,” in Environment. XX (May, 1978), pp. 30-37.
Love, Sam. “We Must Make Things Smaller and Simpler: An Interview With E.F. Schumacher,” in Futurist. VIII (December, 1974), pp. 281-284.