This paper first identifies turbulent and imminent economic, social, and ecological problems threatening our modern economy and society. It is argued that many of these problems are natural or predictable consequences of the classical economic model advocated by mainstream economists and adopted by a majority of policy makers. The paper then examines the fallacy and deficiency of the classical economic model and its underlying philosophical tenets and premises. It shows that Buddhism, with its thorough examination of the human predicament and its pragmatic middle-way approach to the solution of these dilemmas, offers a viable philosophical basis for an alternative economic model which has not only the remedies for the problems created by the mainstream economic theories, but also the promise of a comprehensive solution to the human struggle for survival and prosperity. Specific examples of how Buddhist principles can be applied to form such a new economic model are elaborated and illustrated.

Dr Chang is an accounting educator with specialty in several areas of accounting, including taxation, management, financial and international accounting. He taught at the University of Wyoming and Texas Christian University before he joined the California State University, San Bernardino (CSUSB) in 1991. Currently, he is the Professor and Associate Dean of the College of Business and Public Administration at CSUSB. In addition to his professional life, he is an avid follower of Buddhism for the last 30 years. He has studied various schools of Buddhist philosophy and practice, but is most familiar and interested in the Ch'an (Zen) and T'ien Tai schools of Chinese Buddhism. He has written articles on Buddhism and its application to modern life and is involved with projects of translating Chinese Buddhism into English.