Ernst Friedrich "Fritz" Schumacher (16 August 1911 – 4 September 1977) was an internationally influential economic thinker with a professional background as a statistician and economist in Britain. He served as Chief Economic Advisor to the UK National Coal Board for two decades. His ideas became well-known in much of the English-speaking world during the 1970s. He is best known for his critique of Western economies and his proposals for human-scale, decentralised and appropriate technologies. According to The Times Literary Supplement, his book Small Is Beautiful is among the 100 most influential books published since World War II. It was soon translated into many languages and brought international fame to Schumacher, after which Schumacher was invited to many international conferences, university guest speaker lectures and consultations. Schumacher's basic development theories have been summed up in the catch-phrases Intermediate Size and Intermediate Technology. Schumacher's other notable work is A Guide For The Perplexed, which is a critique of materialist scientism and an exploration of the nature and organisation of knowledge. Schumacher was a known friend of Professor Mansur Hoda, who he had known for many years. August 16 is the 228th day of the year (229th in leap years) in the Gregorian Calendar. ... 1911 (MCMXI) was a common year starting on Sunday (click on link for calendar). ... September 4 is the 247th day of the year (248th in leap years). ... For the album by Ash, see 1977 (album). ... Economics (deriving from the Greek words οίκω [okos], house, and νέμω [nemo], rules hence household management) is the social science that studies the allocation of scarce resources to satisfy unlimited wants. ... For Wikipedia statistics, see m:Statistics Statistics is the science and practice of developing human knowledge through the use of empirical data expressed in quantitative form. ... The National Coal Board (NCB) was the nationalised British coal mining company. ... The English language is a West Germanic language that originates in England. ... The 1970s decade refers to the years from 1970 to 1979, inclusive. ... Appropriate technology is technology that is most appropriate to the environment and culture it is intended to support. ... The Times Literary Supplement (or TLS) is a weekly literary review published in London by News International, a subsidiary of News Corporation. ... Small Is Beautiful is the title of a book by E. F. Schumacher. ... Combatants Allies: Poland, United Kingdom, Soviet Union, France/Free France, United States, China, Canada, India, Australia, New Zealand, South Africa, Greece, Norway, Honduras, and others Axis Powers: Germany, Italy, Japan, Bulgaria, Finland, Romania, Hungary, Burma, Slovakia Casualties Military dead: 17 million Civilian dead: 33 million Total dead: 50 million Military... Representation of a university class, 1350s. ... A lecture on linear algebra at the Helsinki University of Technology A lecture is a presentation on a particular subject given in order to teach people about that subject, for example by a university or college teacher. ... 19th century meeting of the Texas colonist who were in open rebellion against the Republic of Mexico in 1835. ... Intermediate technology is infrastructural capital that is at least an order of magnitude more expensive than that prevalent in a developing nation but also at least an order of magnitude less expensive than that prevalent in a developed nation offering aid. ... A Guide for the Perplexed is a short book by E.F. Schumacher, published in 1977. ... Scientism is a relatively newly coined word that refers to certain epistemologies based on science. ... Knowledge is information of which a person, organization or other entity is aware. ...

Early life

Schumacher was born in Bonn, Germany in 1911. His father was a professor of political economy. The younger Schumacher studied in Bonn and Berlin, then afterwards in England as a Rhodes Scholar at Oxford in the 1930s, and later at Columbia University in New York City, earning a diploma in economics. He became a professional economist, but his wide-ranging mind never confined itself to a single discipline. Bonn is a city in Germany (19th largest), in the Federal State of North Rhine-Westphalia, located about 20 kilometres south of Cologne on the river Rhine in the north of the Siebengebirge. ... 1911 (MCMXI) was a common year starting on Sunday (click on link for calendar). ... Political economy was the original term for the study of production, the acts of buying and selling, and their relationships to laws, customs and government. ... This article is about the capital of Germany. ... Royal motto (French): Dieu et mon droit (Translated: God and my right) Englands location (dark green) within the United Kingdom (light green), with the Republic of Ireland (blue) to its west Languages English Capital London Largest city London Area – Total Ranked 1st UK 130,395 km² Population –mid-2004... Rhodes House in Oxford The Rhodes Scholarships were initiated after the death of Cecil John Rhodes and have been awarded to applicants annually since 1902 by the Oxford-based Rhodes Trust on the basis of academic qualities, as well as those of character. ... The University of Oxford (often called Oxford University), located in the city of Oxford, England, is the oldest university in the English-speaking world. ... This article or section is missing references or citation of sources. ... Columbia University is a private university in the Morningside Heights neighborhood of the Borough of Manhattan in New York City. ... Midtown Manhattan, looking north from the Empire State Building, 2005 New York City (officially named the City of New York) is the most populous city in the state of New York and the entire United States. ... A diploma (from Greek diploma) is a certificate or deed issued by an educational institution, such as a university, that testifies that the recipient has successfully completed a particular course of study, or confers an academic degree. ... Buyers bargain for good prices while sellers put forth their best front in Chichicastenango Market, Guatemala. ...

Economist

Protégé of Keynes

Schumacher moved back to England before World War II, as he had no intention of living under Nazism. For a period during the War, he was interned on an isolated English farm as an "enemy alien." In these years, Schumacher captured the attention of John Maynard Keynes with a paper entitled "Multilateral Clearing" that he had written between sessions working in the fields of the internment camp. Keynes recognised the young German's understanding and abilities, and was able to have Schumacher released from internment. Schumacher helped the British government mobilise economically and financially during World War II, and Keynes found a position for him at Oxford University. Combatants Allies: Poland, United Kingdom, Soviet Union, France/Free France, United States, China, Canada, India, Australia, New Zealand, South Africa, Greece, Norway, Honduras, and others Axis Powers: Germany, Italy, Japan, Bulgaria, Finland, Romania, Hungary, Burma, Slovakia Casualties Military dead: 17 million Civilian dead: 33 million Total dead: 50 million Military... National Socialism redirects here. ... The word internment is generally used to refer to the imprisonment or confinement of people without due process of law and a trial. ... Bales of hay on a farm near Ames, Iowa A farm is the basic unit in agriculture. ... John Maynard Keynes (right) and Harry Dexter White at the Bretton Woods Conference John Maynard Keynes, 1st Baron Keynes, CB (pronounced canes, IPA ) (June 5, 1883 – April 21, 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well... The United Kingdom is a unitary state and a democratic constitutional monarchy. ... The University of Oxford, located in the city of Oxford in England, is the oldest university in the English-speaking world. ...

When Schumacher's paper was published in the spring of 1943 in Economica, it caused some embarrassment to Keynes who, instead of arranging for its separate publication, had incorporated the text almost verbatim in his famous "Plan for an International Clearing Union," which the British government issued as a White Paper a few weeks later. 1943 (MCMXLIII) was a common year starting on Friday (the link is to a full 1943 calendar). ... A white paper is an authoritative report; a government report outlining policy; or a document whose purpose is to educate industry customers or collect leads for a company. ...

Adviser to the Coal Board

After the War, Schumacher worked as an economic advisor to, and later Chief Statistician for, the British Control Commission which was charged with rebuilding the German economy. From 1950 to 1970 he was Chief Economic Adviser to the National Coal Board, one of the world's largest organisations, with 800,000 employees. In this position, he argued that coal, not petroleum, should be used to supply the energy needs of the world's population. He viewed oil as a finite resource, fearing its depletion and eventually prohibitive price, and viewing with alarm the fact that, as Schumacher put it, "the richest and cheapest reserves are located in some of the world's most unstable countries" (Daniel Yergin, The Prize [1991], p. 559). Germany is the worlds third largest economy and the largest in Europe. ... 1950 (MCML) was a common year starting on Sunday (link will take you to calendar). ... 1970 (MCMLXX) was a common year starting on Thursday (the link is to a full 1970 calendar). ... The National Coal Board (NCB) was the nationalised British coal mining company. ... Coal (previously referred to as pitcoal or seacoal) is a fossil fuel extracted from the ground by underground mining or open-pit mining (surface mining). ... Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a thick, dark brown or greenish liquid. ... In economics and business, the price is the assigned numerical monetary value of a good, service or asset. ...

His position on the Coal Board was often mentioned later by those introducing Schumacher or his ideas. It is generally thought that his farsighted planning contributed to Britain's post-war economic recovery. Schumacher predicted the rise of OPEC and many of the problems of nuclear power. Logo The Organization of the Petroleum Exporting Countries (OPEC) is made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela; since 1965, its international headquarters have been in Vienna, Austria. ... A nuclear power station. ...

Thinking outside the box

In 1955 Schumacher travelled to Burma as an economic consultant. While there, he developed the set of principles he called "Buddhist economics," based on the belief that individuals needed good work for proper human development. He also proclaimed that "production from local resources for local needs is the most rational way of economic life." He traveled throughout many Third World countries, encouraging local governments to create self-reliant economies. Schumacher's experience led him to become a pioneer of what is now called appropriate technology: user-friendly and ecologically suitable technology applicable to the scale of the community. He founded the Intermediate Technology Development Group in 1966. His theories of development have been summed up for many in catch phrases like "intermediate size," and "intermediate technology." He was a trustee of Scott Bader Commonwealth and in 1970 the president of the Soil Association. 1955 (MCMLV) was a common year starting on Saturday of the Gregorian calendar. ... Buddhist economics is a set of economic principles that is based on the belief that individuals ought to do good work in order to ensure proper human development. ... For the Jamaican reggae band, see Third World (band). ... Appropriate technology is technology that is most appropriate to the environment and culture it is intended to support. ... User Friendly is an online daily comic strip about the staff of a small, fictional internet service provider, Columbia Internet. ... (Ecology is sometimes used incorrectly as a synonym for the natural environment. ... This article or section needs a complete rewrite for the reasons listed on the talk page. ... Practical Action - the working name of Intermediate Technology Development Group (ITDG) – is a charity registered in the United Kingdom which works directly in four regions of the developing world – Latin America, East Africa, Southern Africa and South Asia, with particular concentration on Peru, Kenya, Sudan, Zimbabwe, Sri Lanka and Nepal. ... 1966 (MCMLXVI) was a common year starting on Saturday (the link is to a full 1966 calendar). ... Intermediate technology is infrastructural capital that is at least an order of magnitude more expensive than that prevalent in a developing nation but also at least an order of magnitude less expensive than that prevalent in a developed nation offering aid. ... The word trustee is a legal term that refers to a holder of property on behalf of some other beneficiary. ... The Soil Association is the main umbrella group in the UK for organic farmers. ...

By the end of his life, it can be said that Schumacher's personal development had led him very far afield from the ideas of John Maynard Keynes. Keynes, second only to Adam Smith, is widely regarded as the most influential modern orthodox economist. In contrast, Schumacher is one of the most widely recognised heterodox economists. Adam Smith, FRSE, (baptised June 5, 1723 – July 17, 1790) was a Scottish political economist and moral philosopher. ... Separate articles treat Eastern Orthodox Christianity and Orthodox Judaism. ... Heterodox literally means pertaining to other doctrines or other worship. ...

Schumacher as writer

Schumacher wrote on economics for London's The Times and became one of the paper's chief editorial writers. At this post he was assigned the somewhat uncomfortable task of compiling information for the obituary of John Keynes many years before the event of his death. He also wrote for The Economist and Resurgence. He served as adviser to the India Planning Commission, as well as to the governments of Zambia and Burma — an experience that led to his much-read essay on "Buddhist Economics." The Times is a national newspaper published daily in the United Kingdom since 1785, and under its current name since 1788. ... It has been suggested that The Economist editorial stance be merged into this article or section. ...

The 1973 publication of Small is Beautiful, a collection of essays, brought his ideas to a wider audience. Schumacher's work coincided with the growth of ecological concerns and with the birth of environmentalism and he became a hero to many in the environmental movement and community movement. 1973 (MCMLXXIII) was a common year starting on Monday. ... Small Is Beautiful is the title of a book by E. F. Schumacher. ... An essay is a short work that treats a topic from an authors personal point of view, often taking into account subjective experiences and personal reflections upon them. ... Ernst Haeckel coined the term oekologie in 1866. ... It has been suggested that this article or section be merged into environmentalist. ... This article or section may contain original research or unverified claims. ...

Schumacher's other notable book, A Guide For The Perplexed, is both a critique of materialistic scientism and an exploration of the nature and organisation of knowledge. A Guide for the Perplexed is a short book by E.F. Schumacher, published in 1977. ... In philosophy, materialism is that form of physicalism which holds that the only thing that can truly be said to exist is matter; that fundamentally, all things are composed of material and all phenomena are the result of material interactions. ... Scientism is a relatively newly coined word that refers to certain epistemologies based on science. ... Knowledge is information of which a person, organization or other entity is aware. ...

Later life and posthumous recognition

Schumacher's rejection of materialist, capitalist, agnostic modernity was paralleled by a growing fascination with religion. His interest in Buddhism has been noted. However, from the late 1950s on, Catholicism heavily influenced his thought. He noted the similarities between his own economic views and the teaching of papal encyclicals on socio-economic issues, from Leo XIII's "Rerum Novarum" to John XXIII's "Mater et Magistra", as well as with the distributivism supported by the Catholic thinkers G.K. Chesterton, Hilaire Belloc and Vincent McNabb. Philosophically, he absorbed much of Thomism, which provided an objective system in contrast to what he saw as the self-cented subjectivism and relativism of modern philosophy and society. He also was greatly interested in the tradition of Christian mysticism, reading deeply such writers as St. Teresa of Avila and Thomas Merton. In 1971, he converted to Catholicism. The Roman Catholic Church, most often spoken of simply as the Catholic Church, is the largest Christian church, with over one billion members. ... Pope Leo XIII Supreme Pontiff (1878-1903) Leo XIII, né Gioacchino Pecci (March 2, 1810 - July 20, 1903) was Pope from 1878 to 1903. ... Rerum Novarum is an encyclical issued by Roman Catholic Pope Leo XIII on May 15, 1891. ... The Blessed John XXIII wearing a Papal Tiara Angelo Roncalli was born in Sotto il Monte (province of Bergamo), Italy on November 25, 1881. ... Mater et Magistra is the encyclical written by Pope John XXIII on the topic of Christianity and Social Progress. ... Distributism, also known as distributionism and distributivism, is an economic philosophy held by such Catholic thinkers as G. K. Chesterton and Hilaire Belloc. ... For the town of Chesterton in Cambridgeshire, see Chesterton (Cambridge). ... Photograph of Belloc Joseph Hilaire Pierre René Belloc (July 27, 1870 – July 16, 1953) was one of the most prolific writers in England during the early twentieth century. ... Fr. ... Thomism is the philosophical school that followed in the legacy of St. ... Teresa of Avila by Peter Paul Rubens Saint Teresa of Avila (known in religion as Teresa de Jesús, baptised as Teresa de Cepeda y Ahumada) was a Spanish Roman Catholic mystic and monastic reformer; born at Avila (53 miles north-west of Madrid), Old Castile, March 28, 1515; died... Thomas Merton (January 31, 1915 – December 10, 1968) was an American Trappist monk and author, born in Prades in the Pyrénées-Orientales département of France. ...

Schumacher gave interviews and published articles for a wide readership in his later years. He also pursued one of the loves of his life: gardening. He died during a lecture tour of a heart attack on 4 September 1977, in Switzerland. A gardener Gardening is the art of growing plants with the goal of crafting a purposeful landscape. ... September 4 is the 247th day of the year (248th in leap years). ... For the album by Ash, see 1977 (album). ...

The Schumacher Circle organisations were founded in his memory. They include the Schumacher College in Totnes, Devon, the E. F. Schumacher Society founded in New England, the Soil Association and the New Economics Foundation. Schumacher College was founded in 1991 in Dartington, Totnes, Devon, UK by Satish Kumar. ... Map sources for Totnes at grid reference SX805605 Arms of Totnes Town Council Totnes (TOTness — emphasis on the first syllable) is a market town in South Devon, England. ... Devon is a large county in South West England, bordering on Cornwall to the west, Dorset and Somerset to the east. ... This article is about the region in the United States of America. ... The Soil Association is the main umbrella group in the UK for organic farmers. ... The New Economics Foundation is a British think-tank, or, in their own description, a think-and-do tank. The groups goal is to promote their progressive view of welfare economics and environmentalism. ...

Schumacher's Teachings

Homo viator

“It is when we come to politics,” Schumacher insisted, “that we can no longer postpone or avoid the question regarding man's ultimate aim and purpose.” If one believes in God one will pursue politics “mindful of the eternal destiny of man and of the truths of the Gospel”. However, if one believes “that there are no higher obligations”, it becomes impossible to resist the appeal of Machiavellianism—“politics as the art of gaining and maintaining power so that you and your friends can order the world as they like it”(2). Once one accepted that man was created by God with a designated purpose, politics, economics and art had value only for the end of helping man reach a higher plane of existence, which should be his goal (2).

By the end of the fifties Schumacher had reached the conclusion that man was homo viat (or created being with a purpose). He believed that it was the failure to recognize this fact which led to society's ills (2).

Three Culprits

For Schumacher there were three main culprits, that had all been corrosive agents in a world which had lost sight of individual responsibility and a world bound to the parameters of realism and science. These were Freud, Marx and Einstein. Freud had made perception subjective through his teaching that perception was subject to the complex interplay of the ego and the id, literally rendering it self-centered. This led inevitably to a change of attitude in human relations where self-fulfillment took precedence over the needs of others. Marx, by seeking a scapegoat in the bourgeoisie, had replaced personal responsibility with a hatred for others. His fault lay in his blaming of others for problems with society. A form of passing the buck so to speak Einstein had undermined belief in absolutes with his insistence on the relativity of everything. The application of 'relativity' in all other fields including morality, led to rejection of moral codes and responsibility (2).

Three Plains of Thought

May 1957 He called his talk 'The Insufficiency of Liberalism' and it was an exposition of what he termed the “three stages of development”. The first great leap, he said, was made when man moved from stage one of primitive religion to stage two of scientific realism. This was the stage modern man tended to be at. A few move to the third stage in which one can find in the lapses and deficiencies in science and realism, and that there is something beyond fact and science. He called this stage three. The problem, he explained, was that stage one and stage three appear to be exactly the same to people stuck in stage two. Consequently, those in stage three are seen as having had some sort of a relapse into childish nonsense. Only those in stage three, can understand the differences between stage one and stage three.

Labor

In 1955 Schumacher traveled to Burma as an economic consultant. While there, he developed the principles of what he called "Buddhist economics", based on the belief that good work was essential for proper human development and that "production from local resources for local needs is the most rational way of economic life." (1)

The following four quotes from Schumacher describe his ideas well

1. “From the point of view of the employer, it is in any case simply an item of cost, to be reduced to a minimum if it cannot be eliminated altogether, say, by automation. From the point of view of the workman, it is a 'disutility'; to work is to make a sacrifice of one's leisure and comfort, and wages are a kind of compensation for the sacrifice.”(2)

2. “From a Buddhist point of view, this is standing the truth on its head by considering goods as more important than people and consumption as more important than creative activity. It means shifting the emphasis from the worker to the product of work, that is, from the human to the sub-human, surrender to the forces of evil.”(2)

3. The Buddhist view, “takes the function of work to be at least threefold”: “to give a man a chance to utilize and develop his faculties; to enable him to overcome his egocentredness by joining with other people in a common task; and to bring forth the goods and services needed for a becoming existence.”(2)

4. “to organize work in such a manner that it becomes meaningless, boring, stultifying, or nerve-racking for the worker would be little short of criminal; it would indicate a greater concern with goods than with people, an evil lack of compassion and a soul-destroying degree of attachment to the most primitive side of this worldly existence”.(2)

Appropriate technology

Interwoven with his ideas of labor were Schumacher's ideas about what would later be called appropriate technology. His two basic development theories were Intermediate Size, and Intermediate Technology.

To impose Intermediate Size on a national economy Schumacher suggested superimposing on large-area states a cantonal structure of modest size so that vast industrial concentration (with all this entails in imbalance, ineptitude, and diseconomies of scale) becomes not only unnecessary but also impractical and inefficient. (1)

Intermediate Technology would be a byproduct of the cantonal structure. Once development district is 'appropriately' reduced, it becomes possible to fulfill a society's material requirements by means of less expensive and simpler equipment than the costly, computerized, labor-saving machinery necessary for satisfying the massive appetite for the remedial transport and integration commodities without which a very large modern market community cannot exist. Though this means a reduction in productivity, it does not mean a reduction in even the highest humanely attainable standard of living. (1)

Putting it differently, the reduced efficiency of intermediate technology provides the same amount of goods, but at a higher cost in labor. However, since higher labor cost longer working hours means simply that the desired level of production can be achieved only by full rather than partial employment of the available labor force; they represent socially no additional cost at all. They are, in fact, a benefit. It is unemployment, defined by Schumacher as the degrading saving of manpower through the inappropriate use of advanced machinery, which is the prohibitive cost which no society can afford to pay in the long run. Furthermore the unemployment caused by excessive technological progress will inevitably lead to the revolt of the unemployed (1).

See also

• ecosystem
• Friends of the Earth
• Grameen Bank
• International Forum on Globalization
• John Papworth
• Leopold Kohr
• microcredit
• natural capital
• natural resources
• social entrepreneurship
• sustainable development
• Worldwatch Institute

In the field of ecology, an ecosystem is a combination of all the living and non-living elements of an area. ... Friends of the Earth is an international network of environmental organizations in 70 countries. ... Grameen Bank Building, Dhaka The Grameen Bank is a microcredit organization that started in Bangladesh, which makes small loans to the impoverished without requiring collateral. ... John Papworth (Born London 1921) After being reared in an orphanage John Papworth has been at various times a baker, journalist, economist - London University graduate, ecologist, a self proclaimed futurist & Church of England priest. ... Leopold Kohr (born October 5, 1909 in Austria/Oberndorf near Salzburg, died February 26, 1994 in Gloucester, England) was an economist, jurist, political scientist and a practicing philosopher. ... // Microcredit is the extension of very small loans to unemployed, poor entrepreneurs and others living in poverty who are not bankable. ... Natural capital is a metaphor for the mineral, plant, and animal formations of the Earths biosphere when viewed as a means of production of oxygen, water filter, erosion preventer, or provider of other natural services. ... Social entrepreneurship is the act of a social entrepreneur. ... Sustainable development is a process of developing (land, cities, business, communities, etc) that meets the needs of the present without compromising the ability of future generations to meet their own needs according to the Brundtland Report, a 1987 report from the United Nations. ... The Worldwatch Institute is an environmental research organisation in the United States. ...

Selected bibliography

• Small is Beautiful: A Study of Economics As If People Mattered (1973, ISBN 0061317780); a 25th anniversary edition was published (ISBN 0881791695)
• A Guide For The Perplexed (1977, ISBN 022401496X; still in paperback, ISBN 0060906111)
• This I Believe and Other Essays (1977; reissued, ISBN 1870098668)
• Good Work (1979, ISBN 0060138572)

A Guide for the Perplexed is a short book by E.F. Schumacher, published in 1977. ...

Further reading

Books about E.F. Schumacher

• Kirk, Geoffrey, ed. Schumacher on Energy (London: Sphere Books, 1983)
• Wood, Barbara, E.F. Schumacher: His Life and Thought (New York: Harper & Row, 1984)
• Etherden, Peter, The Schumacher Enigma, Fourth World Review, 1999:93

External links

Wikiquote has a collection of quotations related to:

E. F. Schumacher

• Schumacher pic.
• Intermediate Technology Development Group website
• The E.F. Schumacher Society in Great Barrington, Massachusetts, which houses his personal library and archives.
• About E. F. Schumacher, from British Schumacher Society website
• Essay on Buddhist Economics
• The Education of E. F. Schumacher
• Small is Still Beautiful an interview with Joseph Pearce
• Economics as if People Mattered, E. F. Schumacher observed
• Dialogue with E.F Schumacher and Fritjof Capra
• E.F. Schumacher: A Retrospect and Reflection After September 11, 2001
• Interview with E. F. Schumacher published in Manas Journal, May 19, 1976
• "Big, bad world" asks if Schumacher's work is valid today from The Guardian in 2003
• Fifty Possible Ways to Challenge Over-Commercialism
• Beyond Simplicity: Tough Issues For A New Era by Albert J. Fritsch, SJ, PhD