Invisible Hand-in-Glove? The Uneasy Intersections of Friedrich Hayek’s Neoliberalism and ‘Abdu’l-Bahá’s Bahá’í Economics
Abstract
“[It is] better to invest one’s fortune in instruments making it possible to produce more at smaller costs than to distribute it among the poor.”—Friedrich Hayek
“You must assist the poor as much as possible, even by sacrifice of yourself. No deed of man is greater before God than helping the poor.”—‘Abdu’l-Bahá
1. Introduction
… critics call into question the very approach to development taken by such institutions as the World Bank, the IMF, and aid agencies of the large donor countries, which also happen to be the largest shareholders of these two development organizations. Often calls are made for “a new development model,” although it is not spelled out what that development model should consist of and, equally importantly, whether such calls have any practical, conceptual, and political underpinnings. For a particularly incisive, well-thought-out, non-dogmatic, and unusually pragmatic analysis of the problems of the fifty-eight poorest countries in the world and what the international community can do about them, see Paul Collier’s The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It.
2. Divergences Across Bahá’í Theology and Neoliberal Theory
But others have sympathies with neoliberal economic theory, often citing Adam Smith’s Theory of Moral Sentiments as a source for a “code of honor” (e.g., Graham 2002) that “spiritualizes” work.… governments themselves have been sidelined by the growing power of the actors in the neoliberal economic system that have escaped from national regulation and taxation. Through this system, powerful multinational corporations and financial institutions now control the main levers of power and information at the global level, preventing any efforts to interfere with their projects of economic exploitation to maximize their profits. This both feeds and feeds on corruption, since the materialist value system is driven by greed, lust, indolence, pride and violence, and only pays lip service to higher ethical principles.
a great part of the people of the world are today dissatisfied as never before and are determined to take what they regard as their rights. They believe as much and as mistakenly as the poor in anyone country that their goal can be achieved by a redistribution of already existing wealth, and they have been confirmed in this belief by Western teaching. As their strength grows, they will become able to extort such a redistribution if the increase in wealth that progress produces is not fast enough
… main ambition that inspires the welfare state … requires a kind of discrimination between, and an unequal treatment of different people which is irreconcilable with a free society. This is the kind of welfare state that aims at “social justice” and becomes “primarily a redistributor of income.” It is bound to lead back to socialism and its coercive and essentially arbitrary methods
3. Making Moral Markets and Shaping Sacred Selves
for most of the [20th] century the Bahá’í community, while utilizing the social teachings of the Faith in its proclamation and teaching activities, has done little to develop and articulate them … The phrase “spiritual solutions to economic problems” is included in most Bahá’í “principles” lists … yet many Bahá’ís would have difficulty articulating the exact nature of these “spiritual solutions” … Fortunately this pattern of negligence is eroding.
… it is ever more urgent for those who support free markets to double down on educating young Americans in the economic and moral [italics in original] case for capitalism. It means taking them through the writings of the very best free-market thinkers—people such as Adam Smith, Wilhelm Röpke, F. A. Hayek, and Michael Novak—who didn’t hesitate to defend markets on economic and moral grounds(Gregg 2021).
the fact that a profession and trade and agriculture are the worship of God, that a farmer who engages in tilling and cultivating his farm with the utmost effort is like unto a worshipper who devotes himself to the worship of God with the utmost humility and supplication in a temple of worship and that a laborer who works with justice and sincerity is as though engaged in prayer
The fundamentals of the whole economic condition are divine in nature and are associated with the world of the heart and spirit. This is fully explained in the Bahá’í teaching, and without knowledge of its principles no improvement in the economic state can be realized.… Hearts must be so cemented together, love must become so dominant that the rich shall most willingly extend assistance to the poor and take steps to establish these economic adjustments permanently.
4. The Shared Concerns of ‘Abdu’l-Bahá and Friedrich Hayek
4.1. The Duality of Human Nature
… spiritual or higher nature and material or lower nature. In one he approaches God, in the other he lives for the world alone … In his material aspect he expresses untruth, cruelty and injustice; all these are the outcome of his lower nature. The attributes of his Divine nature are shown forth in love, mercy, kindness, truth and justice, one and all being expressions of his higher nature
4.2. The Limits of Materialist Knowledge
Man is the ultimate degree of materiality and the beginning of spirituality … He has both an animal side and an angelic side and the role of the educator is to so train human souls that the angelic side may overcome the animal. Thus, should the divine powers, which are identical with perfection, overcome in man the satanic powers, he becomes the noblest of all creatures, but should the converse take place, he becomes the vilest of all beings.
… all early “law-giving” consisted in efforts to record and make known a law that was conceived as unalterably given. A “legislator” might endeavor to purge the law of supposed corruptions, or to restore it to its pristine purity, but it was not thought that he could make new law… But if nobody had the power or intention to change the law… this does not mean that law did not continue to develop.
Simply put, there is knowledge external to humanity, which is recognizable only in the form of observable laws, traditions, and habits. For Hayek, such knowledge has a decidedly mysterious, if not sacred, character and is thus worthy of respect.The refusal to yield to forces that we neither understand nor can recognize as the conscious decisions of an intelligent being is the product of an incomplete and therefore erroneous rationalism. It is incomplete because it fails to comprehend that coordination of the multifarious individual efforts in a complex society must take account of facts no individual can completely survey.
4.3. The Apotheosis of the Market and Self-Love
Adam Smith was the first to perceive that we have stumbled upon methods of ordering human economic cooperation that exceed the limits of our knowledge and perception. His “invisible hand” had perhaps better have been described as an invisible or unsurveyable pattern. We are led—for example by the pricing system in market exchange—to do things by circumstances of which we are largely unaware.
4.4. Sacrificial Submission to Transcendent Authority
That individual, however, who puts his faith in God and believes in the words of God—because he is promised and certain of a plentiful reward in the next life, and because worldly benefits as compared to the abiding joy and glory of future planes of existence are nothing to him—will for the sake of God abandon his own peace and profit and will freely consecrate his heart and soul to the common good. “A man, too, there is who selleth his very self out of desire to please God” [quotation from The Qur’án 2, 207],
5. Conclusions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
1 | “Neoliberalism” was coined in 1938 in Paris at the Walter Lippman Conference. In attendance were Friedrich Hayek and his mentor, Ludwig von Mises (Denord 2001). |
2 | For example, see the careers and writings of Vahid Alavian (World Bank), Gregory C. Dahl (IMF), John Huddleston (IMF), Augusto Lopez-Carlos (World Bank), George Soraya (World Bank), and Matthew Weinberg (WTO). |
3 | It is important to note that the Bahá’í principle of the elimination of extremes of both wealth and poverty neither confirms nor condemns varied economic theories, neoliberalism included. Moreover, Bahá’í doctrine understands economic questions within a larger soteriological project of a “new world order” or worldwide governance incorporating ideals of unity, justice, prosperity, and the continuing advancement of all peoples. |
4 | A peer-reviewed academic journal founded in 1988, published by the Association for Bahá’í Studies—North America, an agency of the National Spiritual Assembly of the Bahá’ís of Canada. |
5 | A peer-reviewed academic journal published between 1991 and 2015 (volumes 1–21) published by Intellect Books on behalf of the Association for Bahá’í Studies—United Kingdom, an agency of the National Spiritual Assembly of the Bahá’ís of the United Kingdom. |
6 | Collier’s text dismisses critics of the IMF’s conditional economic relationships with several African countries as a “Western Left” who incorrectly “conflated the limited reforms being urged on the governments of the bottom billion with the neoliberal savaging of the state they were fighting at home… The essential struggle between villains and heroes within the bottom billion became twisted into one between Africa and the IMF.” (Collier 2007, p. 67). |
7 | In 2016, the IMF—itself being accused of neoliberal leanings—published a paper admitting to a neoliberal agenda pushed by actors from the Mont Pèlerin school: “Milton Friedman in 1982 hailed Chile as an ‘economic miracle.’ Nearly a decade earlier, Chile had turned to policies that have since been widely emulated across the globe. The neoliberal agenda—a label used more by critics than by the architects of the policies—rests on two main planks. The first is increased competition—achieved through deregulation and the opening up of domestic markets, including financial markets, to foreign competition. The second is a smaller role for the state, achieved through privatization and limits on the ability of governments to run fiscal deficits and accumulate debt.” (Ostry et al. 2016, p. 38). |
8 | This is especially the case given Shoghi Effendi’s 1939 letter in which he stated, “The International House of Justice will have, in consultation with economic experts, to assist in the formulation and evolution of the Bahá’í economic system of the future. One thing, however, is certain: that the Cause neither accepts the theories of capitalistic economics in full, nor can it agree with the Marxists and Communists in their repudiation of the principle of private ownership and of this vital sacred right of the individual” (Effendi 1939). |
9 | See ‘Abdu’l-Bahá ([1945] 1971a, 1971b, [1911] 1972, [1922] 1982, 1990a, [1875] 1990b, 2002a, 2002b, [1922–1924] 2007, 2021). |
10 | |
11 | The relative paucity of scholarship on this issue may be attributable to Bahá’í orthopraxical apprehension to overtly examine neoliberalism for fear of trespassing against the scriptural injunction not to engage in either “partisan politics” (forbidden in Holy Writ) or overly dwell on “materialism.” Moreover, some assert that Bahá’í scripture on the economy is hermeneutically sealed until the prophesied “Most Great Peace” of a Bahá’í commonwealth materializes. For example, consider the eschatology of Huddleston (1975), who argues that “Bahá’í economic views acquire real meaning only when considered in the context of a Bahá’í civilization”. |
12 | Bahá’u’lláh ([1873] 1992) wrote, “It is incumbent upon each one of you to engage in some occupation—such as a craft, a trade, or the like. We have exalted your engagement in such work to the rank of worship of the one true God.” ‘Abdu’l-Bahá ([1922] 1982) also wrote, “… in accordance with the divine teachings the acquisition of sciences and the perfection of arts are considered acts of worship. If a man engageth with all his power in the acquisition of a science or in the perfection of an art, it is as if he has been worshipping God in churches and temples”. |
13 | ‘Abdu’l-Bahá argued there must be a relative “equalization of the means of livelihood” so that the “arrangements of the circumstances of the people must be such that poverty shall disappear” (‘Abdu’l-Bahá [1911] 1972, p. 151). |
14 | By accruing vast resources unimaginable (and unattainable) to the average person, Hayek argued that the rich provide a “necessary service” to the poor: “the rich, by experimenting with new styles of living not yet accessible to the poor, perform a necessary service without which the advance of the poor would be very much slower and will appear to some as a piece of far-fetched and cynical apologetics … There is no practicable measure of the degree of inequality that is desirable here. We do not wish, of course, to see the position of individuals determined by arbitrary decision or a privilege conferred by human will on particular persons. It is difficult to see however, in what sense it could ever be legitimate to say that any one person is too far ahead of the rest or that it would be harmful to society if the progress of some greatly outstripped that of others” (Hayek [1960] 2011, pp. 45–46). |
15 | ‘Abdu’l-Bahá ([1922] 1982, p. 217) wrote, “Bahá’u’lláh, likewise, commanded the rich to give freely to the poor. In the Kitáb-i-Aqdas it is further written by Him that those who have a certain amount of income must give one-fifth of it to God, the Creator of heaven and earth”. |
16 | ‘Abdu’l-Bahá ([1922] 1982, p. 238) wrote, “The governments will enact these laws, establishing just legislation and economics in order that all humanity may enjoy a full measure of welfare and privilege; but this will always be according to legal protection and procedure. Without legislative administration, rights and demands fail, and the welfare of the commonwealth cannot be realized. |
17 | ‘Abdu’l-Bahá (1913, p. 83) wrote, “To put it in a more explicit way: a rich person has ten thousand kilos of products, and a poor person has ten kilos. Now is it fair to tax them equally? Nay, rather, the poor person in this case must be exempt from taxes. If the poor person gives one-tenth of his income and the rich person one-tenth of his income, it will be unjust. Thus in this way a law should be made that the poor person who has only ten kilos and needs them all for his necessary food, be exempt from paying taxes. But if the rich person, who has ten thousand kilos, pays one-tenth or two-tenths taxes on his products, it will not be a hardship to him. For example, if he gives two thousand kilos, he will still have eight thousand kilos. If a person has fifty thousand kilos, even though he gives ten thousand kilos, he will still have forty thousand kilos. Therefore, laws must be made in this way”. |
18 | One may readily question the comparison of Hayek and ‘Abdu’l-Bahá, given the former’s reliance on technical, policy-oriented, and economic-modelling techniques while the latter offered ethical and pragmatic guidance for ordering human society. Their comparison in this paper offers an overview as to why and how religious orthopraxy (Bahá’í in specific) has intersected with neoliberal models in recent years. |
19 | Sayyid Mirza ‘Alí Muḥammad Shírází (1819–1850), known as The Báb (The Gate); the prophet-founder of the Bahá’í Faith, Mirza Husayn-‘Alí Núrí (1817–1892), known as Bahá’u’lláh (the Glory of God); the eldest son of Bahá’u’lláh, ‘Abbás (1844–1921), known as ‘Abdu’l-Bahá (Servant of Glory); the grandson of ‘Abdu’l-Bahá, Shoghi Effendi (1897–1957); and the governing body of the Bahá’í Faith, the Universal House of Justice, established in 1963. The Báb and Bahá’u’lláh are understood as “Manifestations of God,” and their writings are understood as “revealed” in mechanical fashion and are thus accepted as divinely infallible. ‘Abdu’l-Bahá and Shoghi Effendi were authorized as infallible interpreters of the “revealed” writings of the Báb and Bahá’u’lláh and authored many texts of their own, which are seen as partially, dynamically, or intuitively inspired but not divinely revealed. The Universal House of Justice addresses topics not already present in scripture and makes authoritative decisions understood as divinely inspired and infallible. |
20 | See Smith (2000, pp. 348–50). Following Bahá’í convention, I capitalize the personal pronouns of the Báb, Bahá’u’lláh, and ‘Abdu’l-Bahá. See https://news.bahai.org/media-information/style-guide/ (accesed on 15 July 2024). |
21 | “Reaganomics” (a portmanteau of Reagan and economics) is a term often attributed to Paul Harvey. The term corresponds with neoliberal economic theories, especially “trickle-down economics”, whose origin rests in the writings of Hayek. Similarly, Thatcherism embraced Hayek’s economic approach, especially in legitimating its rollback of the welfare state and use of moral “responsibilization” against the poor. See Bull and Wilding (1983) and Marable (1981). |
22 | By May 2025, Google Scholar indicated “The Use of Knowledge in Society” had over 24,100 citations, with roughly a quarter of those citations appearing from 2018 to 2025. |
23 | Some do resist the mention of Hayekian neoliberalism with religion in general and Christianity in specific. Hayek was an explicit agnostic (Elzinga and Givens 2009), and his work is often portrayed as strictly “secular” (cf. Cornelissen 2017). As Hackworth and colleagues put it, “Hayek may have been a persuasive man, but his words do not carry the same weight as the Bible among self-identified evangelicals” (Hackworth et al. 2012, p. 62). |
24 | Brown (2016) does not equate neoliberalism’s “divinity” with that of a general religious or Bahá’í-specific understanding of divinity, but she emphasizes how many (specifically in 2012–2013 across Southern Europe, Turkey, Brazil, and Bulgaria) treated neoliberalism as a divinely inspired ideology, interpreted neoliberal policy as a required divinely ordained sacrifice, and acquiesced to neoliberal implementation as though underwritten by divine authority. |
25 | For instance, “A Bahá’í Perspective on Conscious Capitalism” recounts the meeting of two corporate owners (Michael Strong and John Mackey) that rationalized and described the mixture of profit-seeking entrepreneurialism, consciousness-raising, and Native American and Catholic theologies as a “flow-state”: “In the foreword to Be the Solution, Mackey, the founder of Whole Foods Market, writes, ‘I first met Michael Strong through a mutual friend back in 2002. I liked him immediately. Michael was the first Libertarian I had met who was also idealistic and who shared my commitments to both economic and political freedom as well as personal growth, social responsibility, and environmental stewardship.’ After a meeting in New Mexico at a resort once known by the Native Americans and later Franciscans as ‘the place of the fire of the angels’—because of the afternoon light on the mountain peaks—they formed an organization called FLOW. FLOW was not only about ‘liberating the entrepreneurial spirit for good’ but also about the consciousness achieved when you become spiritually ‘present’, i.e., entering a ‘flow state.’ To be in flow is to be completely involved in an activity for its own sake, using your skills to the utmost. It’s a state that opens doors to higher intelligence and creativity, an experience both men seemed to share” (Palmer and McCormick 2022, p. 317). |
26 | “Render unto Caesar the things that are Caesar’s, and unto God the things that are God’s.” (King James Bible, Matthew 21:22). |
27 | While some might doubt whether those socio-economically exploited by neoliberal greed agree with or accept the salvific and soteriological value of their labor, those very interpretations have been found to empirically operate across a variety of settings (e.g., Block and Somers (2014); Brown (2016); Jain (2020); Nelms (2012); Newman (2014); Peck (2010); Povinelli (2011); Rudnyckyj (2010, 2024); Stiglitz (2009); Wacquant (2009); Whyte (2019); and Zigon (2011)) as hegemonic in the Gramscian sense; people consent to their lower socio-economic positions when refigured as moral, if not religiously and divinely ordained. |
28 | In Meditations on First Philosophy Descartes wrote, “I thereby concluded that I was a substance whose whole essence or nature resides only in thinking, and which, in order to exist, has no need of place and is not dependent on any material thing. Accordingly this ‘I’, that is to say, the Soul by which I am what I am, is entirely distinct from the body and is even easier to know than the body; and would not stop being everything it is, even if the body were not to exist” (Descartes [1637] 2006, p. 29). |
29 | Hayek (1967, p. 85) wrote, “Descartes contended that all the useful human institutions were and ought to be deliberate creation of conscious reason … a capacity of the mind to arrive at truth by a deductive process”. |
30 | Hayek identified such “constructivists” as Rousseau, Voltaire, Bentham, Comte, Hegel, Marx, and Thomas Jefferson, among others. |
31 | For example, ‘Abdu’l-Bahá ([1911] 1972, p. 86) stated that “… in this age the peoples of the world need the arguments of reason” and “Every subject presented to a thoughtful audience must be supported by rational proofs and logical arguments” (‘Abdu’l-Bahá [1922] 1982, p. 253). |
32 | This argument is explicitly laid out in Hayek’s “The Results of Human Action but Not of Human Design” (Hayek 1967). |
33 | Such interpretations also require disregard of other Bahá’í scripture, such as “Man is he who forgets his own interests for the sake of others. His own comfort he forfeits for the well-being of all. Nay, rather, his own life must he be willing to forfeit for the life of mankind. Such a man is the honor of the world of humanity. Such a man is the glory of the world of mankind… Such a man is the very manifestation of eternal bliss” (‘Abdu’l-Bahá [1911] 1972, p. 18) as well as a March 2017 letter from the Universal House of Justice that quotes Bahá’u’lláh: “Economic life is an arena for the expression of honesty, integrity, trustworthiness, generosity, and other qualities of the spirit. The individual is not merely a self-interested economic unit, striving to claim an ever-greater share of the world’s material resources. ‘Man’s merit lieth in service and virtue’, Bahá’u’lláh avers, ‘and not in the pageantry of wealth and riches.’ And further, ‘Dissipate not the wealth of your precious lives in the pursuit of evil and corrupt affection, nor let your endeavours be spent in promoting your personal interest’” (Universal House of Justice 2017). |
34 | “I have deliberately used the word ‘marvel’ to shock the reader out of the complacency with which we often take the working of this mechanism for granted” (Hayek 1948, p. 87). See Whyte (2019) for an extended discussion of this point. |
35 | The notion of a covenanted world is sacrosanct to Bahá’ís. Bahá’í theology supports the existence of the Abrahamic, or “Greater Covenant”, in which God promises to send divinely endowed messengers to guide humanity and humanity promises to abide by their teachings. Additionally, Bahá’ís believe in a “Lesser Covenant”, or the chain of successive Bahá’í leadership and divinely appointed, infallible authority from Bahá’u’lláh (1817–1892), to His eldest son ‘Abdu’l-Bahá (1844–1921), to His great-grandson Shoghi Effendi (1897–1957), and finally to the Universal House of Justice (1963–present), a body that will help establish a “New World Order”. |
36 | Comaroff and Comaroff (2001, p. 10) explain, “Above all, the explosion of new markets and monetary instruments, aided by sophisticated means of planetary coordination and space-time compression, have given the financial order a degree of autonomy from “real production” unmatched in the annals of political economy … it enables the speculative side of capitalism to act as if it were entirely independent of human manufacture. The market and its masters, an ‘‘electronic herd’’ (Friedman 1999) of nomadic, deterritorialized investors, appear less and less constrained by the costs or moral economy of concrete labor”. |
37 | Christiaens (2019, p. 78) explains, “Smith’s claim about the invisible hand of the market to be more than simple metaphor. He takes the phrase of an ‘invisible hand’ from providential theology and some argue that it should be viewed in light of Smith’s natural theology, implying that the market order really is the work of God rendered operative by human agents pursuing their self-interest”. |
38 | ‘Abdu’l-Bahá ([1922] 1982, p. 142) also stated, “The Bahá’í Cause covers all economic and social questions under the heading and ruling of its laws. The essence of the Bahá’í spirit is that, in order to establish a better social order and economic condition, there must be allegiance to the laws and principles of government”. |
39 | Rudnyckyj (2010, pp. 141–42) describes how Krakatau Steel, the largest steel producer in Indonesia, posted signs over the heads of their employees that read “’HARD WORK IS PART OF OUR WORSHIP’ … Making work into religious worship was not merely an Orwellian slogan inscribed on various factory edifices. Spiritual reformers sought to make this slogan an embodied practice through transforming work into religious worship”. |
40 | The author thanks Todne Thomas and Menaka Kannan, the anonymous peer reviewers, and guest editors Robert Stockman and Moojan Momen for their feedback on earlier versions of this manuscript. |
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Hughey, M.W. Invisible Hand-in-Glove? The Uneasy Intersections of Friedrich Hayek’s Neoliberalism and ‘Abdu’l-Bahá’s Bahá’í Economics. Religions 2025, 16, 1203. https://doi.org/10.3390/rel16091203
Hughey MW. Invisible Hand-in-Glove? The Uneasy Intersections of Friedrich Hayek’s Neoliberalism and ‘Abdu’l-Bahá’s Bahá’í Economics. Religions. 2025; 16(9):1203. https://doi.org/10.3390/rel16091203
Chicago/Turabian StyleHughey, Matthew W. 2025. "Invisible Hand-in-Glove? The Uneasy Intersections of Friedrich Hayek’s Neoliberalism and ‘Abdu’l-Bahá’s Bahá’í Economics" Religions 16, no. 9: 1203. https://doi.org/10.3390/rel16091203
APA StyleHughey, M. W. (2025). Invisible Hand-in-Glove? The Uneasy Intersections of Friedrich Hayek’s Neoliberalism and ‘Abdu’l-Bahá’s Bahá’í Economics. Religions, 16(9), 1203. https://doi.org/10.3390/rel16091203