Wei-Bin Zhang (Auth.) - Confucianism and Modernization - Industrialization and Democratization of The Confucian Regions-Palgrave Macmillan UK (2000) PDF

CONFUCIANISM AND MODERNIZATION
Also by Wei-Bin Zhang
ECONOMIC DYNAMICS
SYNERGETIC ECONOMICS
KNOWLEDGE AND VALUE: Economic Structures with Time

and Space
JAPAN VERSUS CHINA IN THE INDUSTRIAL RACE
CAPITAL AND KNOWLEDGE: Dynamics of Economic Structures

with Non-Constant Returns
Confucianism and
Modernization
Industrialization and Democratization
of the Confucian Regions
Wei-Bin Zhang
Department of Economics
The National University of Singapore
Palgrave
macmillan
*
© Xiao-guang Zhang 2000
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Contents
Preface and Acknowledgements vu
Introduction 1
Part I Confucius and His Doctrines 11

1 The Master: the Historical Conditions
and His Life 13
2 Free Will, Benevolence and the Vision 28
3 Knowledge and Action 46
4 Social Organizations and Government 59
5 Wealth and Profit 80
Part II The Dynamics of Confucianism 95

6 Mencius (371-289 Be): Human Nature
is Good 97
7 Hsiin Tzu (298-238 Be): Human Nature
is Evil 122
8 Chu Hsi (1130-1200): Chinese Rationalism
and the Great Synthesis 140
9 Wang Yang-ming (1472-1529): Chinese
Idealism 152
Part III Modernization of the Confucian Regions 163

10 Industrialization of the Confucian Regions 165
11 Democracy and Confucianism 199
Bibliography 216
Index 224
v
Preface and
Acknowledgements
If love be blind, love cannot hit the mark.

Shakespeare
The history of civilization shows that a sophisticated intellec-

tual tradition is unlikely to die in the long term. It may be out
of fashion for a time; but it certainly comes back. It is trad-
itional for the economist to be concerned not only with
analytical economics, but also with philosophical issues. In
fact, the first book of Adam Smith, the father of modern eco-
nomics, was not about economics at all but about morality.
He himself considered The Theory of Moral Sentiments (Smith,
1759) more important than The Wealth of Nations (1776), even
though the latter is far more popular than the former.
Relatively few analytical economists of the Confucian regions
followed in the steps of Adam Smith, even though there are
armies of professors and PhDs in economics from these
regions. Some analytical economists, including Professor
Michio Morishima, have expressed concern about the impact
of Confucianism on the economic development of the
Confucian regions. But those studies are often conducted
with regard to social and cultural manifestations rather than
the philosophy of Confucian principles.
In this study of 'the Confucian regions' I include mainland
China, Taiwan, Hong Kong, Macao, Japan, South Korea,
North Korea, Vietnam and Singapore. Apart from
Singapore, all these areas employed Confucianism as the
state ideology before the West came to East Asia in modern
times (Morishima, 1978, 1982; De Bary, 1991; Deuchler,
1992; Koh, 1996; Zhang, 1998). It is also important to
remark that most of these regions were traditionally rice-
economies (Reischauer and Fairbank, 1960; Bray, 1989;
Gernet, 1990; Hsii, 1995). The traditional cultural manifest-
ations of the Confucian principles have much to do with this
traditional economy. It is generally held that Confucianism
VB
Vlll Preface and Acknowledgements
shaped the social fabric, forged status consciousness and pro-

vided the system of role-enforcement in these regions before
modern times. We call these regions Confucian because they
displayed similarity on the level of the grand vision of man
and society that Confucius provided before modern times.
Since a major philosophy became the state ideology for such
a long time in these regions, Confucianism might be expect-
ed to have had some deep impact on them. Confucianism
may affect these regions in two ways. The first is that as a
philosophy it directly affects social and economic behaviour
and institutional structures. For instance, the 'over-emphasis'
on children's education common in the Confucian regions
might be due to Confucian values and tradition. The second
is that it affects perception and value structures. In China, for
instance, how decisions are made and how behaviour is cul-
turally interpreted, might be deeply influenced by
Confucianism.
In interpreting these effects, there is often confusion
about the Confucian principles and their manifestations. I
refer to matters such as actual forms of filial piety, propriety
and ceremony as manifestations. Confucian philosophical
tradition does not hold that there is a unique correspond-
ence between a principle and its manifestations under
various circumstances. This implies that special customs
designed under the Confucian principles for an agricultural
economy may not be valid for an open industrial economy;
but the Confucian principles themselves may still be valid in
the new environment. In this sense, traditional studies on
Confucianism and its impact on economic development may
have limitations in explaining the possible influence of
Confucianism on sustainable economic development and
(long-term) modernization of the Confucian regions; but the
Confucian principles may continue to have a deep influence
on the Confucian regions in an industrial and globally open
socioeconomic environment. I thus feel it necessary to re-
examine the Confucian principles.
This book has mainly resulted from my repeated readings
of Confucius' Analects and my own dynamic (socio-)econom-
ic theory (see Zhang, 1990, 1991, 1996, 1999). I began to be
interested in Confucius about ten years ago. Since I first read
the Analects, I have re-read it, like classical Chinese poems,
Preface and Acknowledgements IX
over and over again in leisure time. During the last ten years,
the Analects has played the role of a 'friend' in my life. Each
time I read it, I find something new from it. It has inspired
me in multiple ways and, in its benevolent and sincere but
'unreasonably strict' Confucian manner, it compelled me to
examine human affairs as an organic whole. It now appears
to me that it not only represents one of the highest intellec-
tual achievements of Chinese civilization, but, because of its
internal sophisticated structure, it may also include some
deep insights about modern societies. I am not sure whether
I have succeeded in preparing a congenial way for the
modern reader to follow me in exploring the world(s) con-
structed by Confucius and his followers, but I have done my
best with sincerity.
I completed this book at the Swedish Institute for Futures
Studies. I am grateful to the pleasant and effective environ-
ment produced by the staff of the Institute. I am grateful to
Stephen Fruitman and Sally Crawford for linguistic help. I
would like to thank Publishing Director T.M. Farmiloe and
Editors Sunder Katwala, Sally Crawford and John M. Smith
for effective co-operation.
I am very grateful for the financial support received from
the Swedish Institute for Futures Studies and the project
'U thallig social och ekonomisk utveckling', led by Professors
A.ke E. Andersson and Janerik Gidlund. My great indebt-
edness to many scholars whose research has provided the
foundation upon which this book was written cannot be ac-
knowledged here, except in the places where I cite their
names.
Grateful acknowledgement is made to HarperCollins

Publishers, Inc., for permission to quote from Martin
Heidegger: Basic Writings, edited by David Farrell Krell, 1993;
and to Princeton University Press, for permission to quote
from A Source Book in Chinese Philosophy, translated and com-
piled by Wing-Tsit Chan, 1973.
Introduction
To truth only a brief celebration of victory is allowed

between the two long periods during which it is con-
demned as paradoxical, or disparaged as trivial. The
author of truth also usually meets with the former fate.
Schopenhauer (1958 I:xvii)
Geniuses are the 'boundary setters' of civilization in the sense

that they determine possible intellectual and spiritual
heights and depths. The lasting intellectual characteristic of
a civilization is often shaped by its major philosophers either
in an intentional or unintentional way. In the West, for in-
stance, great thinkers, such as Plato, Aristotle, Descartes,
Kant and Hume, give model expression to problems that
remain with Western civilization. The I Ching, Confucius,
and Lao Tzu determined the concerns of traditional Chinese
intellectuals. Each of these philosophies comes in and out of
fashion regularly, even though its periods of popularity do
not last long. It always comes back because it raises some
'unsolvable' time-independent questions and may be inter-
preted in new ways due to changed situations. That it does
not stay long in fashion is perhaps because its usefulness for
the common mind lies either in analysing some intellectual
crisis or in laying the foundation for new intellectual devel-
opment. Once it completes its assignment for continuing or
destroying the tradition or for laying the foundation for new
development, a sophisticated philosophy is, for a while, no
longer useful. Social or intellectual catastrophes destroy
superstructures but recall the foundational philosophies. It is
perhaps due to this dynamic of construction and destruction
that a sophisticated philosophy never dies.
WHY CONFUCIANISM?
Confucianism is more rationalist and sober, in the sense

of the absence and the rejection of all non-utilitarian
2 Confucianism and Modernization
yardsticks, than any other ethical system, with the possible

exception of J. Bentham's.
Max Weber, 1864-1920 (1951)
Confucianism is a philosophy that had been implemented as

the state ideology in the Confucian regions since long before
modern times. The term Confucianism may refer to two dif-
ferent aspects. The first is its basic vision, its basic principles,
its philosophical structures and its internal development.
This is the main concern of this study. The second is the
manifestations of its principles. Examples of these are the
institutional structures, choice of officials through an exam-
ination system, the concept of filial piety, customs and
ceremonies, the patterns and contents of conscience of the
population, and actual forms and patterns of human interac-
tion in traditional China which were influenced by or
designed under the direction of Confucian principles. There
are intimate relationships between a principle and its mani-
festations. In general, one seeks to identify the principle and
its manifestations in vain because one principle may have
multiple manifestations and one socioeconomic phenomenon
may result from different principles. The same democratic
principle, for instance, leads to varied forms of institutions in
different cultures. The same Confucianism is the inspiration
behind various forms of institutions, human networks and
customs in traditional Japan, Korea and China. It is one thing
to examine the vision and principle(s) of a philosophical
system and another to study its manifestations in the form of
institutions and customs.
Confucius has been continuously re-examined by Chinese,
Japanese and Korean scholars over many hundreds of years
and has been repeatedly studied by Western scholars since
Confucius was introduced to Europe in the 16th century.
Many books on Confucius as well as his school,
Confucianism, have been published. The reader may ask
whether it is worthwhile to re-examine Confucianism in
modern times. Is there anything new to say about
Confucianism and its implications? I consider it important to
re-interpret (and develop) Confucianism in modern times.
My reasons are the following. There has been great progress
in fields of sociology, psychology, ethics, history and
Introduction 3
economics since the end of the Second World War. Thus,

one may acquire new insights into Confucianism by re-
examining it in the light of these new developments. On the
other hand, since Confucianism is rational and deals with
broad psychological, ethical, social and economic issues
within a single framework, one may ask whether or not
Confucianism can provide new insight for these separate
fields, by pointing out their limitations and pointing to new
directions for development. The Confucian vision centres on
extending one's own conscience through family to local
groups until the world as an organic whole has a universal
character. As argued later, the various ways of being rational
in the world - Western individualism, Chinese familism and
Japanese groupism - can be perceived as not in conflict with
the rational Confucian principles in this visionary sense.
Aside from other new scientific theories in the fields of
sociology, psychology, ethics, history and economics, the new
scientific development of complex theory or nonlinear
theory provides an important incentive for re-examining
Confucianism. This new theory provides a new scientific and
rational vision for looking at the world. It has provided sci-
entists concerned with man and society with new insight into
the complexity of socioeconomic systems (Haken, 1977;
Prigogine and Stengers, 1984; Gleik, 1987; Zhang, 1991,
1997, 1999; Waldrop, 1992; Prigogine, 1997). Traditional
science is characterized by the linear vision of systems evo-
lution. To the scientifically trained mind, there is a unique
correspondence between industrialization and ideology. In
other words, if one ideology proves suitable for industrial-
ization, other ideologies would not suit similar economic
processes. It is quite natural for Max Weber (1864-1920),
who held a traditional vision of dynamic evolution, to con-
clude that Confucianism and other religious traditions (with
the exception of Protestantism which had proved to be the
ideology for industrialization) are detrimental to moderniza-
tion as initiated in Western Europe (Weber, 1905, 1951). But
the modern history of East Asia provides a challenge to
Weber's viewpoint (Tu, 1996:7).
Nonlinear economics shows that it is quite possible for a
single ideology to sustain multiple patterns of economic de-
velopment. Equally, two different ideologies can lead to a
similar pattern of economic development. This further

implies that the combination of market economy, democracy
and individualism which was essential to Western modernity
might not be the necessary conditions for other societies
either to initialize industrialization or to follow through and
become fully industrialized in a sustainable sense. The differ-
ence between Japan's and China's industrialization processes
shows that two cultures with similar traditional ideologies
may lead to divergent paths of economic development
(Zhang, 1998); and the similarity in economic conditions in
Japan and Western advanced economies shows that two
economies with different cultural backgrounds, ideologies
and interpretative systems may lead to similar economic
development processes. It should be remarked that Weber
concerned himself with why capitalism did not begin in
China. This book is not concerned with this issue. It will
instead examine the basic principles of Confucianism and try
to provide insights into the issues of why some Confucian
regions are capable of rapid industrialization while some
others still remain at the initial stages.
Weber used traditional scientific viewpoints and methods
to examine Confucianism (Weber, 1951). The method I
choose will use modern scientific vision (reflected in self-
organization theory, synergetics, complex theory, chaos
theory, catastrophe theory, nonlinear theory, and the like) to
re-examine Confucianism and its relationships to modern-
ization. It has been recognized that the vision reflected in
complex theory is very similar to traditional Chinese views
(Capra, 1982; Zhang, 1991, 1998a, 1999a; Walter, 1994).
Thus, although the Chinese world view conflicts with the
traditional scientific vision on socioeconomic evolution, the
new scientific vision provides a new basis for cultural com-
parison between Western and Confucian cultures. As far as I
am aware, Confucianism has not been examined from a
modern scientific viewpoint in any comprehensive sense.
Traditional social sciences have been unable to explain ratio-
nal Confucianism. I argue that these traditional scientific
views differ from Confucian ones in that they perceive
socioeconomic evolution as linearized dynamics, while the
latter deal with society as an organic, dynamic whole. The
linearized vision cannot be used to explain nonlinear reality
Introduction 5
while the Chinese vision may provide very deep insights into
socioeconomic evolution although it does not fit into any of
the traditional scientific theories. It is under the light of
modern scientific vision that I will try to provide some in-
sights into the validity as well as the invalidity of the
traditional Confucian principles.
The study of Confucianism is also important from the
perspective of maintaining harmony between the Confucian
regions and the rest of the world. The conflicts that exist
between the traditional scientific and the Confucian visions
may explain why some scholars with a traditional mental-
ity argue about 'clashes of civilizations' between the West
and the Confucian regions (Huntington, 1993, 1997). Each
human existence exhibits its own special manifestations of
the universal principle(s). This implies that each man is
capable of experiencing his own existence as a unique phe-
nomenon in the universe and is thus able to claim himself
to be a unique existence in the universe. Similarly this holds
true for cultures. Since it does not take much talent for a
culture to identify its own unique existence (using socio-
economic or emotional phenomena), it may easily justify its
conflicts with other cultures. Rather than attempting to
identify differences among men or between societies
Confucian tradition tried to construct a global vision of har-
monious co-existence among varied cultures. According to
Confucianism, a superior culture, which features moral
consistency starting from the individual and extending
through the family to the state, distinguishes itself through
morality and merit. Thus the Confucian mind believes in
the existence of a universal culture. Similarly, Leibniz
(1646-1716), an admirer of the I Ching, considered it not
only significant but also possible to build a universal
thought system under which various cultures could co-exist
in harmony rather than in conflict (Leibniz, 1994).
Accepted universal principles keep civilized states in
harmony: as each state or culture can identify its own
existence, on the one hand, as a special or unique existence,
and on the other hand, as an important part of the whole
world. Under such a universal thought system, efforts
towards a local cultural identification would become
meaningless. Confucius says:
The superior man is sociable, but not a partisan.

Confucian tradition generally believes that only a second-
rate scholar is interested in forming clubs. The harmonious
co-existence of different religions and Confucianism in
China's history can be ascribed to this universal character of
Confucianism. This view can be extended to cultures. The
following saying of Confucius illustrates the basic Confucian
attitudes toward cultural communication:
When we see men of worth, we should think of equalling
them; when we see men of a contrary character, we should
turn inwards and examine ourselves.
In modern times otherwise meaningless conflicts have been
due to low standards of civilization rather than the opposite.
The following saying by Confucius appears to be a proper at-
titude for communication among modern cultures:
When I walk along with two others, they may serve me as
my teachers. I will select their good qualities and follow
them, their bad qualities and avoid them.
It has recently been argued that conflicts between China
and the West exist not due to trivial reasons like political
influence or economic benefits but due to clashes of civiliza-
tions (Huntington, 1997). It is generally believed in
Confucian tradition that harmony is the result of finding
similarity and common benefits. Any purposeful exagger-
ation of possible conflicts leads to disorder and the loss of
mutual benefits. In order to understand whether or not the
term 'clashes of civilizations' is meaningful, one has to be
aware of what civilization in general is, and what Western
civilization and Chinese civilization in particular are. For any
modern civilized and politically and ethically well-educated
mind it is obvious that neither Western nor Chinese civiliza-
tion is universal. Mankind is still far from establishing a
global civilization, since a world thought system in Leibniz's
sense does not yet exist. Although it is beyond my capacity to
judge Chinese civilization as a whole, I provide insight into
the issue about 'clashes of civilizations' by examining the
dominant Chinese ideology, Confucianism. This investi-
gation leads me to conclude that Confucian and Western
Introduction 7
civilizations display a tendency to converge rather than to

diverge in the future. My conclusion is the result of examin-
ing philosophical views of rational Western and Confucian
visions on man and society. Political or economic power
shifts do not imply a clash of civilizations. Civilization is the
manifestations of civilized ideas and principles. A culture's
contemporary awareness may be in a civilized or barbarian
state, irrespective of whether or not this culture was civilized
in the past. Unless Confucian vision is in conflict with domin-
ant Western ideologies (and I will argue that it is not), then
it is impossible for China to clash with the West. It is rare
nowadays to interpret the war between England and
Germany as a clash of civilizations mainly because these two
'local' cultures are commonly classified into one 'Western'
civilization. Any conflict that is due to redistribution of polit-
ical influence, economic benefits, or emotion (such as pride,
hatred, narrow nationalism or patriotism) has nothing to do
with clashes of civilizations. Conversely, when two civilized
minds of two different civilizations clash, that is a clash of
civilizations. In other words, a civilized mind cannot experi-
ence a clash of civilizations with another civilized mind from
the same civilized culture. Nevertheless, the term 'clash of
civilizations' has become widespread, something that can
only be due either to a narrow interpretation or a misunder-
standing of the concept 'civilized'. An examination of
Confucianism reveals that the possibility of clashes of civil-
izations does not exist since any two civilized minds either
communicate for their mutual benefit or completely 'neglect'
each other's existence.
In this book, as well as providing some insight into the
global issues between the West and the Confucian regions, I
also examine the question of whether or not Confucianism
has contributed to the industrialization of the Confucian
regions. As discussed earlier, the issues related to capitalism
and Confucianism have been examined by Weber. Earlier in
the 20th century Confucianism was generally perceived as an
obstacle to modernization but after the Korean War attitudes
towards Confucianism gradually changed. As a result of
Japan's economic success and China's failure in industrial-
ization it was argued that Japanese Confucianism was no
obstacle to modernization; while Chinese Confucianism was.
Overall, there is now a tendency to credit the Confucian

work ethic and encouragement of learning with providing
people in the Confucian regions with the motivation, disci-
pline and skill necessary to engage in many of the essential
processes of modernization.
In association with expanding trade between the West and
the Confucian regions, cultural exchanges are becoming in-
creasingly important. We are living in a time which realizes
the need for mutual understanding between the peoples of
different cultures. But cultural understanding cannot be
achieved through any superficial assessment of words or
actions. It is necessary to make a serious study of the domin-
ant beliefs and the patterns of thought that have shaped the
mind of the culture. To take natural sciences and mathe-
matics, these have been generally accepted by the Confucian
regions without any serious cultural conflicts. This is partly
because in the Confucian regions there were no profound
theories about nature and mathematics that were able to
'compete' with Western sciences and mathematics. The
dominant philosophies in these regions, the I Ching, Taoism
and Confucianism, have almost no 'intellectual' conflicts with
mathematics and natural sciences. The Confucian mind thus
has an open (or empty) space for Western natural sciences
and mathematics to fill. The same cannot be said where
philosophy in general and ethics in particular are concerned.
Confucian as well as Taoist traditions have ways of perceiv-
ing man and society that are unique to these traditions. Thus
it is important for the West to understand the essence of
Confucianism in order to effectively interact with the
Confucian regions in the long term. The industrial
Confucian regions, particularly since the end of the Second
World War, have, in political and economic terms, effectively
employed the global environment provided by the West.
The main reason for these successes is that the peoples of
these regions have made themselves familiar with
Westerners' behaviour and Western ways of thinking. In
order to win in the trading arena one has to know oneself
and one's enemies, as Sun Tzu says in The Art of War (1992):
If you know the enemy and know yourself, you need not
fear the result of a hundred battles. If you know yourself
Introduction 9
but not the enemy, for every victory gained you will suffer
a defeat. If you know neither the enemy nor yourself, you
will succumb in every battle.
The economic trade history between Japan and the United
States during the last 30 years illustrates my point. The same
principle applies to partners in cultural communications,
though these partners may not be perceived as the enemy.
THE STRUCTURE OF THE BOOK
When an intelligent man expresses a view which seems to

us obviously absurd, ... we should try to understand how
it ever came to seem true. This exercise of historical and
psychological imagination ... helps us to realize how
foolish ... our own cherished prejudices will seem to an
age which has a different temper of mind.
Bertrand Russell (1946:58)
This book consists of three parts. The first part deals with
Confucius and his doctrines. The second part illustrates the
dynamics of Confucianism, discussing the doctrines of four
important Confucianists, Mencius, Hsiin Tzu, Chu Hsi and
Wang Yang-mingo The third part is concerned with the
industrialization and democratization of the Confucian
regions and the possible implications of Confucianism for
the modernization of these regions.
The meaning of Confucianism - as with liberalism, capital-
ism and Marxism - is ambiguous in the sense that different
people understand the term to mean different things. It may
refer to the philosophical tradition represented by
Confucius, Mencius and their followers or it may refer to the
institutions and customs that were created under the influ-
ence of Confucian doctrines. In this study the term
Confucianism mainly refers to its philosophical tradition.
Confucianism itself goes far beyond the actual personality or
teachings of the Master. The high reputation that Confucius
obtained under the Han rulers, and to an even greater
extent from the Sung period onwards, was largely due to the
theoretical and doctrinal additions made to his thinking by
his followers. Historically then, what is called Confucianism

contains the thoughts of other thinkers such as Mencius and
Hsiin Tzu. Hence, it is not sufficient to be concerned only
with the Master. Confucianism, like capitalism and socialism,
displays a high complexity of internal as well as external
dynamics. The internal complexity consists of its develop-
ment as a consistent thought system, creating new ideas and
absorbing the ideas of other doctrines such as Taoism and
Buddhism. The external complexity consists of its institu-
tional, social and economic manifestations.
The third part of the book also identifies some common
features of industrialization among the Confucian regions. I
argue that some manifestations of the Confucian principles,
such as obedience to a talented authority, emphasis on iden-
tifying harmonious relations and mutual profits rather than
individual differences and profits, respect for education, free
social mobility by education, social recognition for merits
and ability, are especially effective when an economy begins
to industrialize. Mter examining economic development, I
go on to examine the processes of democratization of these
regions and in order to do so compare Confucianism and
democracy. I argue that Confucian principles are similar to
democratic principles in essence. This may hint at why some
Confucian regions become democratized when they have
achieved industrialization.
Part I
Confucius and His
Doctrines
But who would have believed that there is on earth a

people who, though we are in our view so very advanced
in every branch of behavior, still surpass us in compre-
hending the precepts of civil life ? Yet now we find this to
be so among the Chinese ... [T]hey surpass us ... in
practical philosophy, that is, in the precepts of ethics and
politics adapted to the present life and use of mortals.
Leibniz, 1646-1716 (1994)
1 The Master: the
Historical Conditions
and His Life
Genius is like the marksman who hits a target, as far as
which others cannot even see. Therefore these others
obtain information about genius only indirectly, and thus
tardily, and even this they accept only on trust and faith.
Schopenhauer (1958 n:391)
Many of Confucius' pupils followed their master loyally but

only a few might actually be said to have understood him.
Not unlike Schopenhauer's saying above, Confucius' disci-
ple, Yan Yuan (see Confucius, 1992), appreciated his
master's doctrines as follows:
I looked up to them, and they seemed to become more
high; I tried to penetrate them, and they seemed to
become more firm; I looked at them before me, and sud-
denly they seemed to be behind. The Master, by orderly
method, skillfully leads men on. He enlarged my mind
with learning, and taught me the restraints of propriety. I
wish to give over the study of his doctrines, I cannot do so,
and having exerted all my ability, there seems something
to stand right up before me; but though I wish to follow
and lay hold of it, I really find no way to do so.
When appreciating a culture, one ought to distinguish its
lasting achievements and the current state of its mind set.
There is often a difference in time from when a culture
accomplishes its lasting achievements and when it might be
said to have reached a civilized state in terms of its aware-
ness. In China's history, when the Chinese mind set arrives
at a civilized state, it tends to lose its vitality for the higher
reaches of creativity. To cultivate the mind's vitality and
maintain it in a state where it seeks the essence of reality is
essential to the Confucian conception of self-cultivation.
13
Historical consciousness of this 'time gap' is important in

order to fairly judge a culture and understand its dynamics.
For instance, what contemporary Japanese people are is one
thing, and what Japanese civilization has achieved is another.
Similarly, what Chinese people are is one thing, and what
Confucianism is, another. Without such a distinction, one
may confuse the achievements of a culture with its current
manifestation. Sometimes this 'judgement transformation'
may be valid; but it may lead to mistakes. For instance, some
great Western thinkers in the 17th and 18th centuries judged
Confucianism according to Western travellers' observations
about China. Quite reasonably, they also changed their view-
points about Confucianism when what travellers observed
about China changed, even though the Confucian principles
had been invariant during that period.
No man has determined both the general and particular
character of China's civilization as profoundly as Confucius
(Creel, 1949; Needham, 1956; Fung, 1958). Aside perhaps
from Lao Tzu, he has been the only enduring figure to
emerge from the whole of Chinese civilization for more than
2000 years. Even the fame of Chinese heroes and emperors
owes much to his everlasting influence. How he is treated in
China has always symbolized the current state of the Chinese
mind. Neglect of his teachings in China is almost always asso-
ciated with social chaos and suffering, the fate of working
under the control of foreigners, for instance. Historically, the
humiliations suffered at the hands of the Mongols, the
Manchus and the West were all preceded by a decline of
Confucianism. When Confucius' teachings are given proper
respect, China experiences order and prosperity. This holds
true for modern times. From the beginning of this century
until 1977 Confucius had been criticized in mainland China
and the living standard of the Chinese people has been the
lowest in the world. In contrast to this, Japan's success in mod-
ernization has been mainly due to proper application of the
Confucian principles (Morishima, 1978, 1982; Zhang, 1998).
I emphasize the principles here rather than actual institution-
al structures. Wang Pi (226-249, in Chan, 1973:323) argued:
There is a basis for all affairs and a foundation for all

things. There may be many roads but their destination is
The Master 15
the same, and there may be a hundred deliberations but

the result is the same.
For Wang Pi, a superior man sees similarity in general prin-

ciples but diversity in facts and function. This emphasis on
one principle and multiple manifestations was a main char-
acteristic of Confucianism. It has been argued that although
Japan has introduced many Western institutions (functional
forms or manifestations of the principles), the principles of
japan's social organizations are essentially Confucian (or,
more accurately, Japanese groupist Confucianism).
CONFUCIUS (551-479 BC)
It is not the knowledge but the learning, not the possess-

ing but the earning, not the being there but the getting
there, which gives us the greatest pleasure.
Gauss to Bolyai, in Zeidler, 1986
As with most ancient Chinese thinkers, little is known of the

life of Confucius other than what we can get from the
Analects. The book forms almost the only reliable source of
our knowledge of the thought of Confucius. The name
Confucius itself is a Latinization of K'ung Fu Tzu, meaning
K'ung the Master; his given name is Ch'iu; and his cog-
nomen Chung-ni. Confucius was born in 551 BC in the state
of Lu which now belongs to Shantung Province in mainland
China. The literature on Confucius' life is contained in Fung
(1948, 1958), Chan (1973) and Chen (1990). Confucius was
said to have been descended from a noble family and it is
generally believed that Confucius originally belonged to the
nobility of the State of Sung. His early ancestor, according to
The Historical Records, was Kung Fang-shu, who was a ninth-
generation descendant of a king of Sung, and the
fourth-generation ancestor of Confucius. Kung Fang-shu
moved to Lu where the family became impoverished.
Confucius' father was once a city mayor and a man of great
strength and courage. He died, probably soon after his son
was born, and Confucius was brought up by his mother.
Not much is known of Confucius' childhood under the
care and instruction of his widowed mother. His first school-

ing probably began at the age of seven. It is often said that
when he was a child, Confucius used to play at making sacri-
ficial offerings and performing ceremonies. If the story is
true, it shows that Confucius had a natural penchant for
ceremony. It seems that Confucius was a self-made man. He
was poor and fond of learning in his youth and at the age of
15 he decided to begin his studies. He studied under no par-
ticular teacher but became perhaps the most learned man of
his time. At 19 he was married. His first son, named Li, was
born a year later. Nothing is known of other children except
that Confucius had at least one daughter, who was married
to one of his disciples. At 19 he entered upon his official
career in Lu, as a granary overseer in his district, and
enjoyed a successful term of office. The following year he was
put in charge of grazing grounds.
At 51 he was a magistrate and became minister of justice
the same year. He had made attempts at political and social
reform in various states for almost 13 years. No state seems
to have been really interested in his ideas. At 56 he began to
travel, together with some of his pupils. He spent much of
his life travelling from one state to another and had many
students from these different states and from different social
classes. In old age he became convinced that there was no
hope of putting his ideas into practice. At the age of 68 he
went back to his own state to teach and perhaps to write and
edit the Classics. He devoted the rest of his life to teaching.
He said of himself as follows:
In letters I am perhaps equal to other men, but the char-
acter of the superior man, carrying out in his conduct what
he professes, is what I have not yet attained to.
The following statement of Confucius has strongly influenced
the development ofthe typical humility of Chinese scholars:
The sage and the man of perfect virtue; - how dare I rank
myself with them? It may simply said of me, that I strive to
become such without satiety, and teach others without
weanness.
I will not be afflicted at men's not knowing me; I will be
afflicted that I do not know men.
The Master 17
Confucius regarded three things, the people, wealth and

education, as the three essentials of any country. He was the
greatest advocate of popular education and the first person in
Chinese history to devote almost his whole life to teaching.
He worked to establish private education, to make education
accessible to all, to offer education for establishing character
instead of for vocation, and to gather around him a group of
scholars. He himself was a scholar and the aim of his scholar-
ship was practical. Confucius was curious about things. He
harboured neither foregone conclusions, arbitrary opinions
nor obstinacy. He simply asked the questions he considered
important. It seems that Confucius enjoyed life. As can be
seen from the following quotation, he was fond oflearning:
In a hamlet of ten families, there may be found one honor-
able and sincere as I am, but not so fond of learning.
He also enjoyed music and friendship and gave no sign of
caring about popularity:
Is it not pleasant to learn with a constant perseverance and
application? Is it not pleasant to have friends coming from
distant quarters? Is he not a man of complete virtue, who
feels no discomposure though men may take no note of
him?
On the life well lived, Confucius says:
The wise man delights in water; the good man delights in
mountains. The wise move; the good stay still. The wise
are happy; the good endure.
He would appear to have cultivated a rich mind capable of
delighting in water as well as mountains. From the Analects
one gets the impression that Confucius was a man whose life
was full of joy. But this was not 'natural joy' unrestrained. It
is the kind of melancholy happiness described by Russell
(1946) as follows:
In an age such as that in which he [Plotinus, 204-270 AD]
lived, unhappiness is immediate and pressing, whereas
happiness, if attainable at all, must be sought by reflection
upon things that are remote from the impressions of sense.
Confucius accepted fate as it was:
I do not murmur against Heaven. I do not grumble

against men. My studies lie low, and my penetration rises
high. But there is Heaven; - that knows me.
For him the enduring meaning of this life is illustrated by his
following saying:
If a man in the morning hear the right way, he may die in
the evening without regret.
The lasting impact Confucius had on Chinese civilization is
not only due to the fact that he was an excellent philosopher,
but also because he conveys a clear conception about reality.
Instead of being a man gifted with an unusually high talent
for a special field, Confucius' greatness seems to have lain in
his rare combination of gifts in multiple fields. He reached
high standards in several pursuits such as abstract philosoph-
ical thinking, literary style, poetry, music, and history; and he
was also a practical man, much involved in ceremonial per-
formance, political activities and teaching. He was able to talk
about the abstract and the concrete in a consistent way. He
was concerned with man and society in ideal as well as in
practical terms. He showed an unusual seriousness in his
thought, like any artist, somewhat aloof, but yet displaying
the instincts of the down-to-earth politician. These character-
istics are imprinted throughout his thought system.
THE SOCIAL ENVIRONMENT
Senseless trees they cannot hear thee,

Ruthless beasts they will not cheer thee.
Shakespeare
Confucius lived during the Spring and Autumn period

(722-481 Be), a period characterized by wars among the
Chinese states. Small states were eventually conquered and
their territories annexed by a few great powers. It has been
estimated that at the beginning of the Chou dynasty, there
were around 800 vassal states, but at about the end of the 5th
century before Christ there were only seven powers with a
few buffer states between them (Fung, 1948; Levenson,
The Master 19
1965; Chen, 1990). The feudal system, highly developed

during the Western Chou period (1122-771 Be), was in a
state of collapse. During the time of Confucius, the emperor
had no power over the feudal princes; the feudal princes in
turn had no control over their barons or ministers. Due to
the lack of any central power source different feudal states
struggled for leadership, using the instrument of war to
expand territories and control the wealth of other states.
Powerful states fought against each other for supremacy.
Different states constantly experienced first unification then
separation. Treaties of alliance were drawn up either for self-
protection or for purposes of aggression. But the treaties
were soon scrapped and alliances never lasted long.
In Confucius' time three types of political systems were
promulgated among intellectuals and were practised in one
form or another in different states - patriarchal, feudal and
military (Chen, 1990). The patriarchal system was ruled by
the principle of filial piety (Hsiao). The rulers regarded their
people as their own children or as brothers, and the people,
in return, regarded them as fathers or brothers. The feudal
system, founded on land-tenure, was developed in the early
part of the Chou dynasty. The state was centralized and the
government was operated by a feudal aristocracy which held
hereditary offices and fiefs. The social system was held to-
gether and controlled by force on the part of superiors and
loyalty on the part of inferiors. In the military system a ruler
exercised direct control over political, economic and military
powers. The system was primarily maintained by laws set up
by the rulers. There was no attempt to emphasize the virtue
of filial piety as in the patriarchal system or to enforce the
virtue of loyalty as in the feudal system. In the military
system the rule of law was more important than social net-
works. A definitive theory of social organization, practised by
all states, did not exist
The age of Confucius was generally characterized by moral
disorder, heavy taxation, corrupt governments, and huge
gaps between the rich and poor. The common people suf-
fered at the hands of corrupt officials, social injustice,
inequality and wars. Murders, thefts, and robberies were
widespread and reflected an age of political and social chaos
and the breakdown of moral standards. Among the states,
selfishness and faithlessness reigned. Besides the many dark

sides to these chaotic situations there were also some positive
developments. Rapid progress was made in technology, the
arts, and communication under the Chou dynasty. In some
states there was marked progress in the development of
penal codes and written laws. As a result of the Warring
States period, part of which occurred during Confucius' life-
time (see below), the aristocracy began to decline and people
born into the lowly and underprivileged classes often became
wealthy and rose to positions of power. The number of
farmers began to decrease while merchants and artisans
increased in number. As these social changes took place,
merchants, who had been previously despised in society,
gradually rose to important social positions and became in-
fluential. Both merchants and artisans were able to produce
and circulate many new and luxury goods.
Many people moved from the countryside to the cities.
Accordingly, cities, as centres for circulating merchandise,
developed rapidly. The total production and thus the wealth
of society was increased. Transportation and communication
systems between the cities and among the states were im-
proved, measures that were undertaken either for military
or economic purposes. Well-built roads connected most of
the major cities. In association with the increase in produc-
tion, the expansion of cities, and the improvement in
transportation systems, the middle class (mainly composed of
merchants, artisans and employed scholars) began to ascend.
All these changes were directly experienced by Confucius.
His thought system was a consequence of his talent, his
efforts, his life experience and the epoch. As will be shown as
this book unfolds, Confucius' thought system is characterized
by a balanced and comprehensive view of man and society;
he stressed the welfare of the people as the most important
goal of government: that and the absence of any conception
related to racial discrimination and slavery are perhaps due
to Confucius' own rationality. In addition, an external factor
might be severe competition among multiple 'Chinese'
states, as happened in Europe from the 17th century until
the end of the Second World War.
Although I will touch on the subject, I do not intend to
discuss the implications of China's natural environment on
The Master 21
Confucius' thought in detail. China is a continental country

and Chinese life was limited to the land. China's economy
was an agricultural economy. In contrast with wide-ranging
hunting societies, the traditional Chinese limited their social
and economic action areas that were within walking distance.
From the time of Confucius to the end of the last century,
no Chinese thinker had ever had the experience of travel-
ling on the high seas. This is a different experience to that
of Socrates, Plato and Aristotle, who lived in a maritime
country and travelled from island to island. This difference
in natural conditions, I suggest, may playa significant role
in explaining some differences in their thought as well as in
their behaviour. The cold weather of China would not have
induced Confucius to walk the streets debating with young
people. In order to spread his ideas, he had to gather stu-
dents around him. Thus Confucius' method of teaching in
the classroom was perhaps determined not by choice but by
the prevailing weather conditions. The mind formed under
such conditions tends to be characterized by solidity and
connectivity, rather than opulence and idealism. The differ-
ence in weather (as well as in social conditions) partly
explains why ancient Greek philosophy, as well as with intel-
lectual discourse, is much more concerned with matters of
sexual intercourse than ancient Confucianism. In China, an
agricultural society with cold weather and low mobility, open
discussions about sex might cause social instability (Gulik,
1961).
It is well known that even with regard to human life, the
investigative scope of Confucian tradition is narrower than
the philosophical tradition of ancient Greece. Important life
issues, such as sex and health, are seldom discussed by
Confucian scholars. Since the main Confucian ideas were de-
veloped in a chaotic time of inter-state war, it is reasonable to
expect that the main concerns of philosophers were how to
stop the killing and provide the people with a peaceful
environment in which to live. In the time of Confucius every
state was either preparing for or engaging in wars. Physical
strength and valour were universally honoured. Accordingly
it was not necessary for Confucius to emphasize the signifi-
cance of the physical aspects oflife. In fact, Confucius tended
to emphasize the negative consequences for society of sheer
physical valour and excessive boldness of action. He himself

practised the arts of archery and charioteering.
THE FREE ENVIRONMENT FOR INTELLECTUALS
A great work - yet; but not greatest, unless he finds a State

suitable for him; for in a State which is suitable to him, he
will have a larger growth and be the saviour of his country,
as well as of himself.
Plato, The Republic
The Warring States Period (481-221 Be), in which Confucius

spent his last few years, witnessed the first great flowering of
Chinese thought (Fung, 1958; Chan, 1973). The age was a
period both of political instability, and prosperity and cul-
tural progress. Wars were frequently conducted among the
states and there were incessant transfers of political alle-
giance under different treaties and alliances. During this
period the rulers of the various states fiercely competed with
one another for survival. They were impelled to improve the
efficiency of their administration, win the support of their
people and enrich their domains. They therefore called
thinkers to them to offer analyses of their problems and
propose solutions. The advice the thinkers gave the rulers
varied and included: return to the ways of antiquity, improve
the use ofland, lessen desires, lower taxes, love the people or
leave things alone. Competition among states during the
Warring States period resulted in intellectual freedom:
various philosophical systems therefore appeared.
As a consequence of the chaotic situation, harsh rivalry
among the states and the disappearance altogether of some
states, the number of aristocratic families was reduced. The
nobles gradually lost their positions and became commoners.
The demand for skills in diplomacy and domestic statesman-
ship increased and the social value of talented people
increased. Education became more widespread. Through
education common people had the opportunity to accumu-
late wealth and rise to positions of power. The period from
the time of Confucius to the end of the period of the Warring
States was one of the greatest intellectual upheavals in
The Master 23
Chinese history. Great intellectual freedom co-existed with

political and social chaos. Scholars, observing human suffer-
ing while faced with multiple opportunities of applying their
knowledge, sought a way of bringing about peace and order.
Along with this free operating environment scholars also
enjoyed the rich cultural heritage that had come down to
them from the remoter past of the Chinese civilization.
Before Confucius some well organized educational systems
had existed, even though the systems were chiefly concerned
with the education of the ruling class and the aristocratic
families. Confucius was the one who first sought to popular-
ize education. The State of Lu, Confucius' home state, was
also corrupt during this time. The government of the state
was controlled by the three most powerful families and the
whole political and social order was in a state of chaos. But
the State of Lu still preserved some of the most ancient cul-
tural heritage of China, such as music (the music of Chou)
and the rites and historical records of the early Chou.
Confucius drew great inspiration from this cultural heritage.
CONFUCIUS' CONCERNS AND INFLUENCE
Love is too young to know what conscience is;

Yet who knows not, conscience is born oflove?
Shakespeare
Socrates said that the subject of moral philosophy deals with

'no small matter, but how we ought to live.' (Plato, Republic).
This 'no small matter' is what Confucius was mainly con-
cerned with all his life (Creel, 1949; Fung, 1958; Chan,
1973). Confucius lived in an age which marked the begin-
ning of a process of moral reflection which had been
provoked by the crisis in aristocratic society and the decline
of ritual. The feudal social structure was disintegrating.
Confucius was concerned with restoring the values of feudal-
ism, in particular civility and propriety, which he believed
necessary to the maintenance of a stable society. He tried to
provide a system in which personal culture was identified
with the public good. None of his life ideals were abstract
ideas; rather they were the visions of a cultivated mind,
imbued with a profound sense of purpose and an intense

concern for the well-being of his fellow man. He attached
great importance to humanity, stressing life in this world,
not eternal life in the next world.
His career centred on serving government, teaching youth
and transmitting the ancient heritage to posterity. In fur-
thering his great ambition in politics he proved to be
unsuccessful, even though his experiences of being called
upon to advise reigning dukes and ministers helped acquaint
him with the workings of government. His great achieve-
ment was in education. He was a teacher of great skill and
reputation. For Confucius, the standard of truth was not to
be found in any book and for him, 'teaching' does not mean
a routine job oflecturing from standard texts. He conducted
the kind of teaching which is described by Heidegger
(1993:380) as follows:
Teaching is more difficult than learning because what
teaching calls for is this: to let learn.
Confucius was the first to offer to instruct the private indi-
vidual and to set up a sort of school for all young men,
irrespective of status and means. He was an excellent teacher
because he had an endless desire for learning. This quality is
described again by Heidegger (1993:380):
His [the proper teacher's] conduct ... produces the im-
pression that we really learn nothing from him, if by
'learning' we now automatically understand merely the
procurement of useful information. The teacher is ahead
of his apprentices in this alone, that he has still far more to
learn than they - he has to learn to let them learn. The
teacher must be capable of being more teachable than the
apprentices.
Few pre-scientific philosophers laid as much emphasis on
flexibility: for Confucius, a gentleman should be ready at all
times to change according to circumstances. This flexibility
in turn arose from an inflexible principle. He does not seem
to have had any fixed criteria for classifying behaviour. He
looked favourably upon compromise since he did not believe
that truth and virtue are somehow fixed and the responsibil-
ity solely of men. He did emphasize, however, that man
The Master 25
should draw a line beyond which he would not compromise

his principles even if death were to be the cost. He tried
always to provide a proper balance between unwarranted
scepticism and all-embracing and dogmatic certainty.
Confucius is often criticized for being obscure, something
that could be due either to his flexibility or to his depth
(which are actually one and the same). But in thought, depth
matters in the long term. Man's mind, like his eyes, which
cannot see an infinite distance, does not reach into infinite
depths. A man brave in thought can reach a depth at which
he begins to lose his way but goes on, still strongly gripped
by the desire to penetrate more deeply. But a brave man may
become mad. Hence, depth does not symbolize human
greatness. A great mind is one which is still sober, even at
great depths. It is characterized by the subtle combination of
great rational power and richness of emotion. A mind which
is poor in emotion has none of the vitality required for deep
penetration. A mind which is poor in rational power may
cover a wide range but easily lose its direction as it goes
deeper. As far as China's history is concerned, perhaps no
man went deeper as a constructive philosopher of ethics than
Confucius. Mencius, Hsiin Tzu and the other great
Confucianists developed Confucius' thought in different
ways. But a place where a follower's thought bifurcates from
the master's is often the point at which the follower's thought
starts to become weak in essence.
Confucius, rather than being blindly devoted to tradition,
recognized that human institutions change and develop and
he was quite ready to make or accept appropriate changes.
He spoke about some ancient sages with high praise and fre-
quently mentioned the ancient sage-emperors Yao, Shun
and Duke Chou as models. But he never advised that it was
necessary to imitate them in order to achieve perfect govern-
ment. He considered his own function to be the transmission
of the ancient cultural heritage to his disciples, though he
acted as much more than a simple transmitter. He interpret-
ed traditional ideas according to his own moral concepts and
looked to the past to provide examples of ideal men rather
than a supernatural being for inspiration. What he aspired to
was totality rather than partial truths or concrete and thus
fixed ideas. He strove against the separation of reason,
feeling, and will. Confucius, unlike Plato, showed no interest

in the debate and did not view himself as participating in or
resolving a debate between schools. Instead his creativity is
displayed in the creation of the system of thought I now set
out to discuss.
Confucius has received much attention over the centuries
mainly because of his multiple qualities. As a moral thinker,
he is an original. His knowledge mirrors his age. His person-
al drama as a moral philosopher as well as the failure of his
career in politics is still a lively illustration of how a man
capable ofliving in an ideal world may not be able to combine
his thought with reality. He shines both as a scholar and a
teacher. His success as a practical thinker can be measured
not through his actions but by examining how the Chinese
people fare when China does not follow his principles. His
system of ethics has meaning in China that transcends time.
Today, it is still far beyond mainland China's intellectual
capacity to appreciate the possible implications of Confucius'
thought for modernization because it has neglected what
Confucius taught. His personal life provides a stimulating
example for scholars to be concerned with the life of ordinary
people. The great historian Ssu-ma Ch'ien (140-80 Be), the
father of Chinese history, devoted a lengthy chapter to
Confucius in his celebrated The Historical Records (Shih Chi) in
the first century before Christ. His description of Confucius'
life and teaching has. remained in the hearts of the Chinese
people over many centuries (Chen, 1990:115):
The Book of Poetry says, 'High is the mountain I look up

to, and bright is the example of our emulation! Although I
cannot reach the top, my heart leaps up to it.' As I read the
books of Confucius, I thought to myself how he must have
looked. When visiting Lu, I saw the carriages, robes and
sacred vessels displayed at the Temple, and watched how
the Confucian students studied the historical systems at his
home, and lingered on, unable to tear myself away from
the place. Countless are the princes, rulers and great men
in history, that the world has seen in its time: glorious in
life, forgotten in death. But Confucius, though only a
humble member of the cotton clothed masses, remains
among us as the acknowledged Master of scholars for over
The Master 27
ten generations. By all, from the emperors, kings and

princes down, who discuss the 'Six Arts', the final authori-
ty of the Master is fully and freely admitted. He indeed
may be pronounced the 'Holiest Sage'.
2 Free Will, Benevolence
and the Vision
It is the duty of man ... to construct for himself an

impregnable center of principle, yet to regard this circle
which he draws around himself as also being one part of
an all-inclusive circle of cosmopolitan sympathy.
Immanuel Kant (1724-1804)
Each human society is characterized by the ways in which

individuals emotionally, socially and economically interact with
one another. There seem to be an almost infinite variety of pos-
sible human interaction. But each society intentionally or
unintentionally allows some forms of interaction and forbids
others. Various rational or religious bases have been used to
explain and justify different forms of human interaction. For
instance, socialism, capitalism, Taoism and Confucianism
propose different institutional forms, based on their respective
views of man's nature, conceptions of morality, and the laws of
socioeconomic operations. It is generally agreed that morality
is the basis of social order; but what morality actually means is
defined differently. Aristotle supposed that morality is a matter
of character and moral education. Kant believed that morality
is a matter of action and practical reason. H ume argued that
morality is a matter of emotion, sympathy and motive. Hume's
argument, that our reasoning about 'ends' rests on the unjust-
ified and unjustifiable bedrock of human sympathy, illustrates
the complexity of ethics. Modern philosophers tend to assume
morality as a matter of judgement. As shown below, although
Confucius did not explicitly define morality, he seems to treat
morality as a matter of sympathy, motive and judgement, that
is of the quality of the whole mind.
FREEDOM (LOYALTY TO THE WAY)
Philosophy, for Plato, is a kind of vision, the 'vision of
28
Free Will, Benevolence and the Vision 29
truth'. It is not purely intellectual; it is not merely wisdom,

but love of wisdom.
Bertrand Russell (1946: 138)
Chinese philosophers, such as Confucius and Lao Tzu, seem

to have believed that knowledge is innate, but they were not
explicitly concerned with epistemology. Confucius did not
explicitly talk about important issues such as how knowledge
is possible. The ancient Chinese word for truth is Tao or
Way. 'Tao' is often left untranslated as it is regarded as in-
definable. The concept means path, road, method, principle,
truth, or reality. There is no name that is applicable to the
Tao. If it is translated, it is usually called the Way. The word
is used in many schools of Chinese philosophy (Fung, 1958;
Chan, 1973). In the Taoist school Tao is interpreted as the
One, which is natural, eternal, spontaneous, nameless, and
indescribable; in other schools Tao is often interpreted as a
system or as moral truth (Lao Tzu, in Lau, 1963; Chan,
1963a; Zhang, in press) It is generally believed that Tao is
the beginning of all things and the way that all things follow
in their course. Confucian as well as Taoist tradition believe
in the existence of the Way. But they hold different view-
points about whether man can identify and materialize the
Tao.
Confucius believed that an individual possesses a kind of
autonomy. For him the mind is the carrier of knowledge and
reasoning power which are the basic conditions of moral
judgement. The central feature of Confucius' doctrine is
summarized in the following saying:
The Master said, 'Shen, my doctrine is that of an all-per-
vading unity.' The Disciple Zeng replied, 'Yes'. The
Master went out, and the other disciples asked, saying,
'What do his words mean?' The disciple Zeng said, 'The
doctrine of our master is to be true to the principles of our
nature and the benevolent exercise of them to others - this
and nothing more.'
Confucius required that one be true to the principles of one's
nature. It is not the emperor, nor a special social group but
the Way that one should be true to. In modern terms it ap-
proximately means that one should be loyal to one's own
conscience. This conception of loyalty is also reflected in the

following saying of Confucius:
A gentleman is not a utensil.
Free will and its individuality are the basis of freedom.
Confucius did not say whether or not society should use a
man as means or tool; what he said was that the gentleman
does not allow himself to be treated as a tool. If all the
members of society are gentlemen, then each member will
perform his social duty and not use any other man as a
means (according to the 'What you do not want done to
yourself, do not do to others' principle) which will result in
an ideal society in which each man exists as an end. This is
what freedom means in the Confucian sense. Confucius
argued that the gentleman is fully obedient to virtue and
duty but never purposely follows a wrong course:
Let every man consider virtue as what devolves on himself.
He may not yield the performance of it even to his teacher.
Confucius served different states but he was never accused of
being in thrall to any power. He held that each man has his
own will that no other man could conquer. He points out:
The commander of the forces of a large state may be
carried off, but the will of even a common man cannot be
taken from him.
Thus, the gentleman's mind has its own end and is not a
social machine operated by someone else. To Confucius'
mind the gentleman is a social man as well as a free man. In
Confucian tradition there is no final authority such as God.
One has to find the Way if one wants to follow it. In
Confucian as well as Taoist tradition the existence of the Way
is firmly believed in; but one cannot identify the Way in
books or exemplify it in individuals. This 'flexibility' or self-
jUd.gement about truth is reflected in Confucius' following
saymg:
The superior man, in the world, does not set his mind
either for any thing, or against any thing; what is right he
will follow.
Confucianism is rational and flexible because it admits the
existence of rational law in things and affairs; at the same

time it denies the existence of any concrete authority about
the Way. This also explains why Confucianism has constant-
ly absorbed ideas from other schools into its doctrines and
has displayed particularly dynamic patterns of intellectual
development. A main characteristic of the development of
Confucianism is that it changes the subject of its investigation
according to the socioeconomic circumstances.
RECIPROCITY AND BENEVOLENCE
What wisdom can you find that is greater than/kindness?

Rousseau (Emile, 1762)
Confucius' doctrine, like other schools of Chinese philoso-

phy, is directly or indirectly concerned with man,
government and ethics. It is a 'this-world' philosophy in the
sense that it is mainly concerned with society, the daily func-
tions of human relations and man's present life, rather than
the universe, heaven and hell, and man's life in a world to
come. To be rationally loyal to one's own consciousness and
to obey the rule of rational reciprocity are central features of
Confucian ethics. Reciprocity is the key to maintaining
harmonious human relations. Confucius is not only con-
cerned with abstract principles ofreciprocity, but also greatly
occupied with manifestations of reciprocity under varied
socioeconomic conditions. Zigong, a pupil of Confucius, once
asked the master if there was a single word which might
serve as a rule for all one's life, Confucius replied:
Is not RECIPROCITY such a word? What you do not want
done to yourself, do not do to others.
This is a generalized principle since reciprocity can be con-
ducted in different forms under various circumstances. It
may be argued that some rational social theories analyse
human behaviour on the basis of some specified forms of
reciprocity. For instance, one may consider some concrete
principles - such as profit maximization or utility maximiza-
tion under constraints of justice - as specified principles of
reciprocity. In practice, the gentleman and the small man
will perceive 'reciprocity' differently. The simple rule, 'what

you do not want done to yourself, do not do to others', is not
so simple as it appears, since its application depends on the
mind's quality. This rule may work well among gentlemen.
But Confucius did not mention how ordinary people might
be able to observe this rule. He designed a hierarchical
socioeconomic system in which each man has his own recip-
rocal position in society. Since one's duty is to act toward
others with reciprocity, the others in society should be able
to act in correspondence. It is difficult to clearly see the
extent to which Confucius believed in the possibility of this
response in reality. As shown later, rather than reciprocity,
Confucius often used the term benevolence (jen) when dis-
cussing self-cultivation and government. By placing
benevolence as the central virtue in his doctrine Confucius
turns humanism into the strongest force in the development
of Chinese philosophy (Chan, 1973).
LOVE WITH DIFFERENT DEGREES OF INTENSITY
To command to love our neighbors as ourselves ... is im-

possible to fulfill; such an enormous inflation of love can
only lower its value and not remedy the evil. Civilization
pays no heed to this.
Sigmund Freud, in Seldes, 1985
Love is an emotion common to mankind. Man displays a

unique characteristic among all living existence in that there
seems to be nothing in the universe that it is completely
impossible for someone to fall in love with. But what one
actually loves or ought to love is not naturally determined
even in a free society. Society consciously or unconsciously
cultivates what one mayor may not love. Confucius held that
the natural affection existing between relatives within one
family is the cornerstone of social morality. Confucian doc-
trine is characterized by hierarchy. Even love has this
characteristic. He argued that love that arises from benevo-
lence manifests itself in different degrees of intensity. Love
starts from its (supposedly) most intimate and stable basis -
love of one's parents and the rest of the members of the
family. Love originates with the bonds of a common parent-

age and extends to other relationships until it culminates in
the stage of benevolence toward all mankind. He makes the
virtues of filial piety and fraternal love the cornerstones of his
doctrine. Filial piety and the discharging of one's duty as a
younger brother are important virtues. It is only after one
cultivates the capacity for love of parents and the rest of the
family members that one can extend one's love to the univer-
sal. Filial piety represents reciprocity in the sense that parents
take care of their children with love and children sincerely
respect their parents. A man, when strong and vital, should
have somebody to take care of and to devote his emotional
energy to. When he reaches old age, he will be taken care of.
When he passes away, his children should bury him in a
proper and respectful way. Confucius says:
That parents, when alive, should be served according to
propriety; that, when dead, they should be buried accord-
ing to propriety; and that they should be sacrificed to
according to propriety.
For Confucius, filial piety means not to merely support one's
parents through care and making sure they eat properly;
one should take care of one's parents with reverence. This
does not mean that Confucius required people to blindly
obey their parents. He says:
In serving his parents, a son may remonstrate with them,
but gently; when he sees that they do not incline to follow
his advice, he shows an increased degree of reverence, but
does not abandon his purpose.
If a son finds himself in the right, he should not give way.
Social obedience and obedience toward one's own inner
promptings are often not consistent. For social stability,
Confucius seems to emphasize the importance of 'face' for
the superior man; but this does not imply that he wanted the
inferior man to give up his seriousness of intent. This em-
phasis on maintaining the superior's 'face' is to maintain
intimate relations between the superior and the inferior. In
the Analects Ziyou says:
In serving a prince frequent remonstrances lead to disgrace.
Between friends frequent reproofs make the friendship

distant.
Direct moral reproofs are not encouraged; moral education
is emphasized and blind obedience is despised in Confucian
tradition. How to balance trade-offs between social obligation
and one's own conscience is a central issue of Confucianism.
Friendship is another important kind of emotional attach-
ment among human beings. Its establishment has its own
purpose and function. Friendship for the sake of friendship
is an ideal held by philosophers as well as ordinary people.
Aristotle classified friendship into three categories. Pleasure
may connect people for its own sake, as children play to-
gether or women gossip. This is the primitive form of
mutuality. The companion can be easily replaced by another
who will do just as well. There are also friendships founded
in utility, as in a business partnership. This friendship is sub-
ordinate to a purpose and may dissolve when the purpose is
unattainable or fulfilled. Finally, there is friendship for its
own sake, independent of pleasure or utility. Aristotle be-
lieved that such friendship is possible only between virtuous
people. Confucius held a similar view about friendship. His
principle for friendship is to build it on the basis of equality,
faithfulness and sincerity:
Hold faithfulness and sincerity as first principles. Have no
friends not equal to yourself. When you have faults, do not
fear to abandon them.
Confucius believed that friendship between small men
cannot last long because it is tied by profits; that between
gentlemen can last a long time because it is built on virtue.
Confucius argues:
It is only the truly virtuous man, who can love, or who can
hate, others.
It is easy to say that we should aspire to universal love -
that we should love even our enemies; but it is empty talk
unless we are capable of loving them. In Confucian tradition
love is not extended to such an extreme extent that it in-
cludes loving one's enemies. In The Great Learning, we read:
There are few men in the world, who love, and at the same
time know the bad qualities of the object of their love, or

who hate, and yet know the excellencies of the object of
their hatred.
Confucius held benevolence and (emotional) love to be the
most important components of society; this does not mean,
however, that he extended kindness to any situation. He
says:
Some one said, 'What do you say concerning the principle
that injury should be recompensed with kindness?' The
Master said, 'With what then will you recompense kind-
ness? Recompense injury with justice, and recompense
kindness with kindness.'
This is the principle of reciprocity in the Confucian tradition.
It does not extend human love to enemies; but it requires
people to learn from and properly appreciate their enemies.
The Confucian tradition is also against blind love - one
should love with full emotional devotion, and at the same
time be aware of the negative qualities of the beloved. It is
difficult for the Confucian mind to cultivate the concept of
patriotism in the sense popularly accepted in modern times.
THE ORGANIC VISION AND METHODS OF ANALYSIS
I have been ... inspired by the wisdom of China .... The I

Ching can transform life.
Hermann Hesse (1877-1962)
In order to understand Confucius' general vision about man

and society, it is necessary to mention that Confucius was in-
terested in the I Ching (The Book of Changes) over a long
period. The I Ching is perhaps the most important work
which existed before Confucius (R. Wilhelm, 1856; H.
Wilhelm, 1970; Hook, 1971; Moore, 1989). Its origin goes
back to mythical antiquity, and it has occupied the attention
of the most eminent scholars of China down to the present
day. It is originally a manual of divination, based on the eight
simple Trigrams, from which evolves a system of philosophy.
U sing it Chinese thinkers tried to grasp the fundamental
patterns of movement. The original Eight Trigrams did not

have the philosophical significance until the Ten Appendices
were added to them, and subsequently the Eight Trigrams
were extended to Sixty-four Hexagrams. Each hexagram is
supposed to represent one or more phenomena - of nature,
society or the individual. All the hexagrams, as a whole, are
supposed to be the symbolic representation of complexity of
motion of natural, social or individual phenomena. The
whole system uses simple symbols to represent this complex-
ity and employs abstract ideas to represent concrete objects.
It is also aesthetically attractive and combines the abstract
and concrete in a way that reveals a depth of knowledge. The
book has long intrigued both the Chinese and the Western
mind (Schoenholtz, 1975; Morris, 1978; Schonberger, 1979;
Whincup, 1986; Van, 1991; Walter, 1994).
Many important aspects of the 3000 years of Chinese cul-
tural history have either taken their inspiration from the
book or exerted their influence on the interpretation of its
text. The philosophy of China as well as its science and state-
craft have never ceased to draw from the well-spring of
wisdom of the I Ching. Even everyday life in China is saturat-
ed with its influence. How much Confucius contributed to
the I Ching has long been a subject of controversy. It was
traditionally held that Confucius arranged the book and
wrote the appendices and commentaries; later scholars,
however, maintained that even if in his later years Confucius
was fascinated by the system, the appendices could not all
have been written by him. No conclusion has been estab-
lished. As far as this book is concerned, it is significant to note
that Confucius' basic vision is reflected in the social content of
the text. The book is an essential part of appreciating
Confucius' modes of thought and for understanding many of
the ideas accepted in Confucian tradition.
Like the I Ching, Confucius held that all things, including
man, stand in certain relationships to other things. These re-
lationships are not randomly arranged but follow natural
rules. Hence, for Confucius, knowledge is by no means a
random piling up of miscellaneous facts. There is a coherent,
underlying unity, 'an all-pervading unity' as it is called by
Confucius. The I Ching's perception of things and affairs as
an organic whole is reflected in Confucius' doctrines.
Confucius held that natural and human worlds constitute an

organism made up of multitudinous interconnected parts.
Each part has its proper position and function in the order
of things. If any part falls from its place or is disrupted in its
function, the harmony of the whole is impaired. Confucius
believed that to learn and to memorize things is not essential.
The most important thing is to understand things as a whole:
I am one who learns many things and keeps them in
memory? .. , No, I seek a unity all-pervading.
He considered the world as an organic whole; at the same
time he emphasizes the significance of special (historical)
situations. He did not explicitly provide any general rule or
principle to guide one's actions since situations are complex
in that they are unpredictable. He taught people that they
should consider and understand the impact of their actions
rather than memorize some fixed rules. Confucius' situation-
dependent character is reflected in the following saying:
Truly straight-forward was the historiographer Yu. When
good government prevailed in his state, he was like an
arrow. When bad government prevailed, he was like an
arrow. A superior man indeed is Qu Boyu. When good
government prevails in his state, he is to be found in office.
When bad government prevails, he can roll his principles
up, and keeps them in his breast.
This particular feature of Confucius's thinking has caused
questions about his ethics. For instance, the following state-
ment of Confucius has caused some debate:
When good government prevails in a state, language may
be lofty and bold, and actions the same. When bad govern-
ment prevails, the actions may be lofty and bold, but the
language may be with some reserve.
It is often difficult to follow Confucius since he did not provide
any fixed rules to follow. One often has to decide oneself about
what Confucius meant when reading the Analects. In China's
history not a few politicians have misused this flexibility im-
plicit in Confucius' teaching for their own evil purposes.
Confucius considered things as a connected whole. This is
reflected even in his reasoning for memorizing parents' ages.
The years of parents may by no means not be kept in the

memory, as an occasion at once for joy and for fear.
Confucius did not argue something for strictly positive or
negative reasons. He tried to take account of all possibilities.
He believed that the development of anything (in man or
nature) has two extremes. When one pole is reached, a rever-
sal to the other pole occurs. Thus, everything involves its own
negation, as Hegel says. This mode of thought is reflected in
Confucius's doctrine.
Confucius applied methods in his analyses which are rarely
used in rational arguments, even in mainland China. He
used two extreme types of men, the gentleman and the small
man, to illustrate all mankind. He also used two extreme time
points, ancient and contemporary, to represent the dynamics
of affairs. In this way he was able to 'measure' how close (or
how far) each man (or each situation) was from ideal state of
the gentleman (or the virtuous situation). In The Theory of
Moral Sentiments, Adam Smith (1759:26) says:
When we are determining the degree of blame or applause
which seems due to any action, we very frequently make
use of two different standards. The first is the idea of com-
plete propriety and perfection, which, in those difficult
situations, no human conduct ever did, or ever can come
up to; and in comparison with which the actions of all men
must for ever appear blameable and imperfect. The
second is the idea of that degree of proximity or distance
from this complete perfection, which the actions of the
greater part of men commonly arrive at.
In Confucius' doctrines the concepts of the ancient times and
the gentleman play the role of establishing 'exact propriety
and perfection' and act as reference points for measuring the
'degree of approximation'. Confucius himself was a paradox.
He displayed self-confidence in both learning and cultivation
with reference to other people yet he did not seem to be
really satisfied with himself and did not consider himself to
have achieved the sage stage. He constructed an ideal model
of man but he was clearly aware of the fact that he was far
away from achieving that model.
His concepts of the gentleman and small man helped him
to effectively examine human dynamics, even though he had

no modern dynamic analytical methods at his disposal. His
method helped illustrate how men may change when the
environment is different. When the environment is changed,
the small man tends to go into moral and spiritual decline
while the superior man tends to do the opposite:
The progress of the superior man is upwards; the progress
of the mean man is downwards.
These concepts are also applicable to cultures and Confucius
applied them to describe the wide variety of human behav-
iour. Some examples of the concepts in action are given
below. For instance, with regard to one's facial expression,
Confucius says:
The superior man has a dignified ease without pride. The
mean man has pride without a dignified ease.
With regard to righteousness and valour, he says:
The superior man holds righteousness to be of highest
importance. A man in a superior situation, having valour
without righteousness, will be guilty of insubordination;
one of the lower people, having valour without righteous-
ness, will commit robbery.
With regard to attitudes of the employer towards the em-
ployee, he says:
The superior man is easy to serve and difficult to please. If
you try to please him in any way which is not in accordant
with right, he will not be pleased. But in his employment
of men, he uses them according to their capacity. The
mean man is difficult to serve, and easy to please. If you try
to please him, though it is in a way which is not accordant
with right, he may be pleased. But in his employment of
men, he wishes them to be equal in everything.
According to Confucius, the gentleman and the small man
will behave differently when their desires are not satisfied:
The superior man may indeed have to endure want, but
the mean man, when he is in want, gives way to unbridled
license.
Many sections in the Analects feature the gentleman and the

small man. As has been said, Confucius used these two poles
to illustrate the various types of men in real life. Similarly, he
applied ancient and modern times as the bases to refer to the
various social and historical circumstances and to contrast
the ideal and the reality. He says:
In ancient times, men learned with a view to their own
improvement. Nowadays, men learn with a view to the
approbation of others.
A gentleman's mind should concentrate on self-cultivation
rather than temporary benefits. Confucius says:
The men of former times, in the matters of ceremonies
and music, were rustics; it is said, while the men of these
latter times, in ceremonies and music, are accomplished
gentlemen. If I have occasion t9 use those things, I follow
the men of former times.
The thing Confucius appreciated most of all was sincerity. In
the Analects there are many other paragraphs where he used
ancient and modern times as reference points for discussing
dynamic issues related to human affairs. Confucius is often
misunderstood on this point since he is thought to be advo-
cating blind adherence to ancient standard. If this had really
been his aim, it is difficult to explain why the Chinese people
have continued to respect him over the centuries if, before
Confucius, the ancients had already offered the standard.
His own analytical method of 'using two extreme points' is
neatly illustrated by the following saying:
Am I indeed possessed of knowledge? I am not knowing.
But if a mean person, who appears quite emptylike, ask
anything of me, I set it forth from one end to the other,
and exhaust it.
By 'exhaust it', he meant that the other cases between the
two extremes are included. From this it can be seen that this
I -Ching-influenced mind is quite 'mathematical'.
A systems builder (in economics, social sciences or ethics) is
generally characterized by being skilled at examining inter-
dependence of the elements within the whole, being skilful at
using past knowledge and being highly creative. Without the
capacity to examine the connections of elements within the

whole, it is impossible to construct a compact system. Since
any new and sophisticated system usually involves many
complex subsystems and some subsystems may already have
been well constructed by someone else, it is economical as
well as effective to employ past knowledge to deal with the
complexity of the construction of a more comprehensive
system. In order to build the new system, one often has to
find new connections among things and sometimes one has
to actually create concepts and ideas. Thus, a system does not
arise merely from random collections of past ideas.
Constructing a thought system is similar to constructing any
unique complex system: say, a complex modern building -
multiple kinds of human capital are required for the task.
Confucius is perhaps the most sophisticated 'architect' of
socioeconomic systems in China's history.
HIGH BUT IMPRACTICAL IDEALS
That the action of man will never be in perfect accordance

with all the requirements of the pure ideas of reason, does
not prove the thought to be chimerical.
Kant (1781:199)
Things can only be clearly seen at a proper distance. The

naked eye cannot observe something that is either too far
away or too close. This holds equally true for feeling, sensing
and thinking. This is perhaps one of the reasons why great
philosophical works tend to be characterized not by accuracy
and consistency but by richness and the possibility of multiple
interpretations for later investigators. In order to understand
Confucius' Analects one needs to be constantly aware of
whether Confucius is talking about an ideal or a practical situ-
ation. In the Book of Rites (Li Chi), we read (Chen, 1911):
The superior man reasons about theoretical principles
from the standpoint of himself, but lays down practical
laws from the capacities of the people.
Confucius' thought system is a complicated one and tends to
cause confusion because of the two different standard
systems that he uses. I will end this chapter by simply de-

scribing his ideal individual and his ideal society.
In terms of the individual, Confucius refers to two types of
the ideal life, the sage (Sheng Jen) and the gentleman (Chun-
tzu). The sage represents the highest stage of the ideal life.
Confucius does not expand much upon the state of sage
perhaps because the ideal is too high even for him to have
achieved. According to Confucius, the sage is able to confer
benefits on all the people and to assist them in all difficulties.
He did not think that any human in history had achieved the
perfection of life necessary to fulfil his conception. Even the
highly respected Yao and Shun, the ancient model sover-
eigns, do not belong to the sage class. Confucius introduced
the intermediate man, the gentleman, to occupy a position
between the common man and the sage as the ideal in prac-
tical terms for the ordinary human being. He dealt
extensively with the qualities of the gentleman.
In the Evolution of Civilization in the Book of Rites (Li Chi),
Confucius classified social evolution into three progressive
stages (Chen, 1911). The first is the Disorderly Stage. This is
a stage where a primitive civilization begins to arise from
chaos. In this stage the social mind is of a rude kind. The
second is the Advancing Peace Stage (Hsiao K'ang), also called
the Small Tranquillity. The third is the Extreme Peace Stage
(Ta Tung), also called the Great Similarity. In the Small
Tranquillity the general social and political order can be de-
scribed as similar to that during the time of Confucius. The
family is the basis of social and political organization. Moral
characteristics, such as Li (propriety, courtesy, rites, or the
rules of proper conduct), I (justice, or righteousness), Hsia
(sincerity, faithfulness, or confidence), and Jen (love, benev-
olence, or perfect virtue) are to be observed by all people. In
terms of social relationships, society follows the doctrine of
the 'rectification of names' (Cheng-ming) between, for
example, rulers and ministers, fathers and sons, elder and
younger brothers, husbands and wives. Thus, society must
maintain the correct relationships among people according
to their proper ranks or situations in the social system. At this
stage of social evolution, universal or undifferentiated love
would be impossible. The government, with the gentleman
as king, supports and spreads education, most especially
moral education. The right of the common people is both

respected and protected since this is the proper policy to
secure peace and power. These characteristics of the Small
Tranquillity are reflected in the Analects. In the Evolution of
Civilization, Confucius (Chen, 1911) describes the Small
Tranquillity as follows:
Now that the Great Principle has not yet been developed,
the world is inherited through family. Each one regards as
his parents only his own parents, and treats as his children
only his own children. The wealth of each and his labor are
only for his self-interest. Great men imagine it is the rule
that their estates should descend in their own families.
Their object is to make the walls of their cities and suburbs
strong and their ditches and moats secure. Rites and
justice are regarded as the threads by which they seek to
maintain in its correctness the relation between ruler and
minister; in its generous regard that between father and
son; in its harmony that between elder brother and young;
and in a community of sentiment that between husband
and wife; and in accordance with them they regulate con-
sumption, distribute land and dwellings, distinguish the
men of military ability and cunning, and achieve their
work with a view to their own advantage. Thus it is that
selfish schemes and enterprises are constantly taking their
rise, and war is inevitably forthcoming .... This is the stage
of what I call the Small Tranquillity.
The stage of Great Similarity, the third and highest stage
of social evolution, will be realized when the Way prevails.
The system is based on the principles of universal and un-
differentiated love. The whole world in this stage consists of
a single harmonious organization. The system functions for
the common good of all people since there is no private
property, no leisured class, and no private inheritance.
Everyone makes his best efforts not only for himself, but also
for the general public good. The most virtuous and talented
men are elected to manage government affairs and the prin-
cipal affair of government is to spread education, to
strengthen faithfulness and sincerity and to cultivate friend-
ship and universal love. Society itself is characterized by
universal love and the love people have for one another is a
natural one. Society is able to take care of everyone, irre-

spective of age, sex or social position. Everyone puts their
utmost effort into work and obtains all they need. In such a
stage of perfect social equality, perfect harmony and peace,
there is no selfish scheming, immorality and crime, and no
need for law, punishment and police. In the Evolution of
Civilization Confucius (Chen, 1911) describes this golden age
as follows:
When the Great Principle prevails, the whole world
becomes a republic; they elect men of talents, virtue, and
ability; they talk about sincere agreement, and cultivate
universal peace. Thus men do not regard as their parents
only as parents, not treat as their children only their own
children. A competent provision is secured for the aged to
their death, employment for the middle-aged, and the
means of growing up to the young. The widowers, widows,
orphans, childless men, and those who are disabled by
disease, are all sufficiently maintained. Each man has his
rights, and each woman her individuality safe-guarded.
They produce wealth, disliking that it should be thrown
away upon the ground, but not wishing to keep it for their
own gratification. Disliking idleness, they labor, but not
alone with a view to their own advantage. In this way
selfish schemings are repressed and find no way to raise.
Robbers, filches and rebellious traitors do not exist. Hence
the outer doors remain open, and are not shut. This is the
stage of what I call the Great Similarity.
The stage of Great Similarity is the golden age of
Confucianism. The five social relations (ruler/subject,
father/son, elder brother/young brother, husband/wife,
friend/friend) and five moral constants (love, justice, rite,
wisdom and sincerity) belong only to the Small Tranquillity,
as do both monarchical government and filial piety. In the
Great Similarity, both social and individualistic characteris-
tics reach the perfect stage. There is no national state, no
war, no need for defence, no militaristic or scheming men.
The people themselves are sovereign and choose men of
talent, virtue and ability. There are no social ties either by
marriage or kinship. People are united by friendship and
classified by age, sex or state of health. Each pep.on ha' a
natural love towards their fellows. There are neither artificial

rites nor the need for justice.
3 Knowledge and Action
Thoughts without content are void; intuitions without

conceptions, blind.
Kant (1781:45)
Plato defined knowledge as 'true belief with an account'

(logos). In this view, our pursuit of knowledge is the search for
justification of our beliefs. For Plato, the sensible world is in a
state of constant flux and thus cannot be the object of stable
and true knowledge (Plato believed that true knowledge is
knowledge that is both stable and unchanging). The goal of
intellectual inquiry is to discover the eternal immutable idea,
which can serve as the essence and ideal of all things. These
external truths are able to be recalled by an intellect that is
immaterial and immortal. Education has knowledge of the
good as its goal since it is ignorance of the good that leads to
evil. Plato argued that the business of education was to
perfect the whole person in order to achieve self-mastery and
self-realization. His emphasis in the Republic was on salvation
through government by an adequately-educated ruler. A
true philosopher seeks wisdom. Only the philosopher who
has achieved true knowledge is fit to rule. The Greeks did not
believe in the specialized divisions of knowledge that we are
familiar with today. Instead they believed firmly that a ruler
should be a person with a truly wide knowledge base.
Similarly, Confucius believed firmly in the possibility ofa pos-
itive role for rational knowledge in social and economic
action. Confucius' attitude towards knowledge provides us
with hints about why the Confucian regions are able to
rapidly adapt to modern rational civilization. It also allows us
to judge whether or not the socioeconomic development of
those regions is sustainable (relatively) in the long term.
MAN AND KNOWLEDGE
Bodily exercise, when compulsory, does no harm to the
46
Knowledge and Action 47
body; but knowledge which is acquired under compulsion

obtains no hold on the mind.
Plato (The Republic)
Plato's saying, above, may serve to illustrate the common

perception about education in the Confucian regions. It is
generally perceived that the 'Confucian education' is too
compulsory in terms of its application. Participants, when
adult, tend to lose pleasure in intellectual pursuit partly
because the education is enforced at such an early age. What
should characterize the 'Confucian element' in education is
given by the following saying of Confucius:
They who know the truth are not equal to those who love
it, and they who love it are not equal to those who find
pleasure in it.
It is not any socioeconomic purpose (such as serving the
State or religion) but for the natural pleasure in it that
Confucius valued highest in education. In modern terms we
may approximately interpret this as 'learning for the sake of
learning'.
The belief that rational knowledge serves as a basis for a
happy life is not a product of modern times. In Western
civilization the belief that the production and diffusion of
knowledge is a key factor in the advancement of mankind
can be traced to ancient times. The early Greeks believed
that a higher than average level of education was required
for a successful career in a democratic government.
Meanwhile, ancient China revealed its relative advantages in
government, science and technology, developing a freely
competitive examination system in order to choose its offi-
cials. The idea that a desirable social order cannot be
obtained without rational knowledge, though trivial today,
is historically important. Confucian tradition holds that man
is naturally born equal but with different physical as well as
intellectual characteristics. A good society should properly
cultivate and utilize all human potential. To put virtuous
and talented men in high positions is to diffuse their posi-
tive potential throughout the whole society. In fact, modern
economics is concerned with similar principles, although
using different terms and broader perspectives. The terms
'increasing returns to scale' and 'endogenous knowledge' are

commonly used in contemporary theoretical economics
(Zhang, 1996, 1999). It may be argued that to follow (classi-
cal) Confucianism is to actualize potential sources of
increasing returns to scale through properly operating social
organizations rather than through developing (natural as
well as social) sciences and technology. But in fact the socio-
economic principles are quite similar.
With regard to man and truth, Confucius says (translated
by the author):
A man can enlarge the Way; the Way does not enlarge a
man.
The sentence, 'A man can enlarge the Way', is interpreted as
a belief that the truth can be found or constructed by man. It
is through the conscious efforts of man that the Way can be
approached and carried out in practice. Since virtuous acts
can only be carried out by the man who possesses perfect
virtue, a narrower but more discrete interpretation of the
above passage is found in The Doctrine of the Mean: 'Unless
there is perfect virtue, the perfect Way cannot be material-
ized.' We can understand the truth only when the mind
desires to do so. If the mind is not motivated first, the truth
cannot make the mind understand things and affairs. It is in
this sense that the Way does not enlarge a man. A man has
to make a conscious effort if he wants himself (or his mind)
to become cultivated (i.e. 'enlarged'). 'To find pleasure in the
Way' means that the mind has the desire to enlarge itself.
Knowledge is either about man and society or about
natural phenomena. Confucius' teachings are mainly con-
cerned with man and society. Fan Chi asked about
knowledge, Confucius replied:
[knowledge] is to know all men.
This attitude had a strong and lasting influence on the
history of Confucianism until Western natural sciences were
introduced and accepted in China. Although Confucianists
often spoke about principles of Nature, they seldom showed
an interest in natural laws and had still less interest in any-
thing mechanical.
Confucius placed benevolence, justice, ceremony, knowledge
and faith as among the most important virtues. He held that it

is benevolence which must be at the heart of humanity. He be-
lieved that benevolence has to be tempered with justice and
reinforced by knowledge. A simple, spontaneous humanity is
not enough. The significance of knowledge in his doctrine is
further illustrated by his saying as follows:
There is the love of benevolence without the love oflearn-
ing; - the beclouding here leads to a foolish simplicity.
There is the love of knowing without the love of learning;
- the beclouding here leads to dissipation of mind. There
is the love of being sincere without the love of learning; -
the beclouding here leads to an injurious disregard of con-
sequences. There is the love of straight-forwardness
without the love oflearning; - the beclouding here leads to
rudeness. There is the love of boldness without the love of
learning; - the beclouding here leads to insubordination.
There is the love of firmness without the love of learning;
- the beclouding here leads to extravagant conduct.
The above saying results from Confucius' 'flexible' vision
which holds that there is no fixed authority with regard to
life's important issues and one has to judge events oneself.
There are various viewpoints about how differences in
intellectual capacity among people occur, how these differ-
ences should be individually cultivated and socially used,
and how people of different capacities should be socially as
well as economically rewarded. How a democratic society
should deal with the relationship between differences in
intelligence and the principle of equality under law is not a
trivial matter. The society founded on principles of individ-
ual liberty, self-government and the free market may find
itself in a difficult situation in which the income difference
between professional wealth and common poverty is con-
stantly enlarged due to modern technology and market
mechanisms. The sense of what is right, what is virtuous or
mean, and how people should live in a just society are intim-
ately related to a complicated dynamic interdependence of
wealth creation, wealth distribution, talent cultivation and
intelligence distribution. Since Confucius considered that
virtues such as benevolence, justice, ceremony, and faith are
intimately related to knowledge, it is no surprise to see that
Confucius classified people according to knowledge in the

following way:
Those who are born with the possession of knowledge are
the highest class of man. Those who learn, and so, readily,
get possession of knowledge, are the next. Those who
learn after they meet with difficulties are another class
next to these. As to those who meet with difficulties and yet
do not learn; - they are the lowest of the people.
Confucius placed people who do not learn even after
meeting with difficulties in the lowest category, and placed
the people born with knowledge in the highest. In Confucian
tradition, the classification of man is not based on race,
family background or other social states, but on knowledge
obtained. Confucius held that men are rarely born with
knowledge:
By nature, men are nearly alike; by practice, they get to be
wide apart.
Confucius held that natural talents may vary among people,
but the most important factor for knowledge accumulation is
one's sincerity and one's efforts. Confucius had never actual-
ly met a man born with knowledge. With regard to himself,
Confucius said:
I am not one who was born in possession of knowledge; I
am one who is fond of antiquity, and earnest in seeking it.
In his doctrines Confucius highly valued self-cultivation
through personal effort.
For Confucius, the pursuit of knowledge is either socially
useful or has its own utility. Confucius admitted that people
may learn for different purposes and held that learning
should provide the individual with a basic orientation in life.
The ultimate goal oflearning should be to understand one's
self. Since men are born naturally alike and people are clas-
sified by their cultivation, Confucius proposed equal
opportunity of education for all:
There being instruction, there will be no distinction of classes.
The above saying is essential for understanding the trad-
itional attitude toward education in the Confucian regions.
In traditional China, education was once the key factor for

determining one's social and economic position.
Knowledge is necessary in order to become a gentleman
but knowledge alone is not sufficient. Confucius' ideal life is
illustrated by the following saying:
Let the will be set on the path of duty. Let every attain-
ment in what is good be firmly grasped. Let perfect virtue
be accorded with. Let relaxation and enjoyment be found
in the polite art.
Knowledge in itself is not sufficient for a man to achieve com-
pleteness. The man of good will should follow the path of
duty as a man in society. Whatever good things one can do
one should make the efforts to see that they are not left
undone. To do good things is to be virtuous - action and
justice should be in harmony. Life, however, is not only to
perform (perhaps sometimes) boring duties. A 'high ability'
to consume the polite art (the courtly arts) was greatly appre-
ciated in traditional Chinese culture.
THE DEPTH OF MIND AND ITS MANIFESTATIONS

Ultimately it is all a question of where the man's real seri-
ousness is to be found.
Schopenhauer (1958 II:384)
Confucius is often misunderstood in that he is perceived to
have looked down on common people. This is unfair to
Confucius since he did not consider that the common people
should be looked down upon in any sense. Confucius classi-
fied men according to their minds rather than their social
positions. It is only in an ideal state that mind properly cor-
responds to social position. His attempts at social reform
were aimed at allocating various kinds of minds to their
proper social positions. He assumed that any man had the
potential to become a gentleman if he made sincere efforts.
Schopenhauer (1958 II:xix) believed that:
the incredibly great majority of men are by their nature
absolutely incapable of any but material aims; they cannot
even comprehend any others,
Like Schopenhauer, Confucius did not consider it possible

for common people to think very deeply; but this does not
imply that common people should be despised in any sense.
In fact, the welfare of all the people is the centre of his doc-
trines.
Confucius classified men according to their minds rather
than by external (social) symbols such as wealth or social
positions. For Confucius concepts such as 'scholar' therefore
are not tied to any social position. He said:
The scholar who cherishes the love of comfort is not fit to
be deemed a scholar.
A man is entitled to be called a scholar by the quality of his
mind. He said:
A scholar, whose mind is set on truth, and who is ashamed
of bad clothes and bad food, is not fit to be discoursed
with.
For Confucius, the title of professor is a meaningless piece of
paper if the system is so corrupt that the name does not cor-
respond to the essence. One can be called a teacher only if
one does not lose the desire to learn:
If a man keeps cherishing his old knowledge, so as contin-
ually to be acquiring new, he may be a teacher of others.
To be a teacher is highly respected in Confucian China since
a teacher is required to have the following quality:
Learn as if you could not reach your object, and where
always fearing also lest you should lose it.
In other words, a teacher should pursue learning his whole
life. Similarly, the concept of the gentleman and the small
man has nothing to do with social positions in the sense that
a superior man may either be a ruler or an unemployed
person. For Confucius,
What the superior man seeks is in himself. What the mean
man seeks is in others.
The superior man is affable, but not adulatory; the
mean is adulatory, but not affable.
The quality of mind is reflected in action:
The superior man is modest in his speech, but exceeds in

his actions.
[The superior man] acts before he speaks, and after-
wards speaks according to his actions.
Confucius once wanted to go and live among some wild
tribes. He was told that these places were rude. He replied:
If a superior man dwelt among them, what rudeness
would there be?
It is in this sense that Confucius did not look down on the
poor man or look up to the rich man because he did not
believe that an individual's social or economic situation had
a definite relation to the mind in general. Obviously a virtu-
ous and capable man may be economically poor in a corrupt
social environment.
KNOWLEDGE AND HUMAN INTERACTION
[When asked, 'What is a friend', Zeno (335-263 Be)

replied:] Another I.
Confucius believed that communications among men should
be conducted on principles of mutual benefit. Knowledge
plays a key role in explaining Confucius' attitudes toward
communications. In Confucius' doctrines men may display a
great difference in knowledge depending on natural talent,
life experiences and efforts:
There are some with whom we may study in common, but
we shall find them unable to go along with us to principles.
Perhaps we may go on with them to principles, but we
shall find them unable to get established in those along
with us. Or if we may get so established along with them,
we shall find them unable to weigh occurring events along
with us.
On the basis of the above distinction, it is natural to expect
that intellectual communications should be conducted on the
basis of levels of talent:
To those whose talent is above mediocrity, the highest
subjects may be announced. To those who are below

mediocrity, the highest subjects may not be announced.
Here, there is no discrimination in any negative sense.
Confucius treated people equally in teaching; but he would
not spend time equally on individual pupils:
I do not open up the truth to one who is not eager to get
knowledge, nor help out anyone who is not anxious to
explain himself. When I have presented one corner of a
subject to anyone, and he cannot from it learn the other
three, I do not repeat my lesson.
He was not a 'generous' teacher in the modern sense. But his
method provides a way to really benefit pupils in the long
term. If teachers were to follow his method efficiency in the
educational system might be improved in the long term.
Confucius did not require people to argue with others about
the correctness of their own opinion. He taught that one
should learn from others irrespective of their social position.
Rather than suggesting a way to argue one's own point of
view, Confucius proposed a silent way of learning. The
impact of this attitude can still be observed in the behaviour
of scholars from the Confucian cultures. However, this quiet
way of learning does not imply that one should not argue at
all:
When a man may be spoken with, not to speak to him is to
err in reference to the man. When a man may not be
spoken with, to speak to him is to err in reference to our
words. The wise err neither in regard to their man nor to
their words.
LEARNING AND THINKING
As soon as we allow ourselves to become involved in such

learning [thinking] we have admitted that we are not yet
capable of thinking.
Heidegger (1993: 369)
It may happen that one learns with little thinking or that one
thinks with little learning. For Confucius both thinking and
learning are equally necessary for self-cultivation. He argued

that one should not concentrate solely on one or the other;
perfect knowledge comes from combining both:
Learning without thought is labor lost; thought without
learning is perilous.
To learn without thinking is only to collect and memorize
information which is useless for one's own mind in the long
term. Moreover, since knowledge is to find similarity and
difference among things, if one learns without thinking, one
will fail to discover the subtle relationships among things.
This is perhaps why Confucius held that what one learns will
be lost if one does not think carefully about what one has
learnt. On the other hand, if one concentrates on thinking
without learning, one tends to be narrow in focus and thus
is unable to examine things comprehensively. Confucius
described the following experience:
I have been the whole day without eating, and the whole
night without sleeping: - occupied with thinking. It was of
no use. The better plan is to learn.
KNOWLEDGE AND ACTION
It is not enough to have a good mind. The main thing is to

use it well.
Rene Descartes (Discourse on Method, 1693)
For Confucius the main purpose of learning is self-cultiva-

tion. But this self-cultivation is not supposed to lead to a
non-active life. Confucius believed that the self-cultivation of
one's own inner world is the basis for one to deal wisely with
human affairs. Since Confucius did not despise political
power, in Confucius' doctrines there should be no conflict
between self-cultivation and the pursuit of power. In theory
the two are reconcilable: the inner cultivation of the self is
not only an end in itself but also a means toward ultimate
self-fulfilment in the world of action. Confucius considered
knowledge and action to be complementary. Knowledge is
not only for the sake of knowledge. Knowledge should be
used to solve practical (social) problems. The relationship

between learning and practising what one learns is a close
one:
Though a man may be able to recite the three hundred
Odes, yet if, when entrusted with a governmental charge,
he knows not how to act, ... notwithstanding the extent of
his learning, of what practical use is it?
Dealing with human affairs should not be something that is
alien to the gentleman. The perfection of personality is
achieved through carrying out such a task. Confucius held
that people should be active:
Hard is the case of him, who will stuff himself with food the
whole day, without applying his mind to anything good.
Are there not gamesters and chessplayers? To be one of
these would still be better than doing nothing at all.
To sit there and do nothing is assuredly not a characteristic
of the Confucian regions. Confucius advocated that action
should be conducted with a purpose. He emphasized timing
in action:
Ji Wen thought thrice, and then acted. When the Master
was informed of it, he said, 'Twice may do.'
Confucius believed that different behaviours had different
impacts on the mind:
It is by the Odes that the mind is aroused. It is by the Rules
of Propriety that the character is established. It is from
Music that the finish is received.
It is a main feature of Confucianism that when it discusses
action, it always refers not only to its temporary conse-
quences but also to its possible long-term impact on the
mind. Confucius held that application of knowledge not only
has social utility but also will bring pleasure to the scholar
himself:
Is it not pleasant to learn with a constant perseverance and
application?
The first use of pursuing knowledge is the scholar's own
enjoyment. Even from the utilitarian point of view, pursuit
of learning is a good way of living if one is equipped with the

right mind.
It is the task of the mind to connect knowledge and action.
For Confucius, only the mind characterized by humanity has
access to the real values of propriety as well as to music:
If a man be without the virtues proper to humanity, what
has he to do with the rites of propriety? If a man be
without the virtues proper to humanity, what has he to do
with music?
THE PURPOSE OF EDUCATION
The life which is unexamined is not worth living.

Plato, in Dialogues
Although education has a long tradition in China, the

content of traditional education is very different from that of
modern times. Science and technology were not introduced
into formal education until the beginning of this century. In
Confucian tradition education was supposed to provide basic
knowledge for further learning and increased capacity for
understanding. In the Chinese language 'knowledge' means
to know and to recognize. To recognize means to recognize
similarity and difference among things or events. To 'know',
however much one knows, does not mean to have 'know-
ledge'. In Confucius' educational ideal the primary aim of
education was to provide man with the ability to reason.
Education helps to develop the right thoughts, the right feel-
ings and the right actions. The purpose of education is to
teach young people to sincerely seek the truth. Education
should not aim at promoting a passive awareness of dead
facts, but at stimulating an active approach to the world. A
good education system should provide young people with
sufficient opportunities for developing the right concepts
and the capacity for leading a happy life and for seeing
service to other people as their duty.
In Confucian tradition everyone should have access to
education. Education and self-cultivation can be expected to
instil in men a permanent and right-thinking attitude
towards certain norms. Confucius was the first in China's

history to articulate this principle. Confucius taught both
commoners and nobles alike. He conceived education as
being largely related to the cultivation of character and be-
lieved that if people did not have knowledge they could not
cooperate in an effective way. Confucius changed the
meaning of nobility, which had been traditionally accepted
as a quality determined by status, a hereditary position. For
him nobility was no longer a matter of blood, but of moral
character. The concept of the gentleman mainly referred to
superior moral qualities. The direction of a man's moral
growth depends very much on his education. The idea of
natural equality is the basis for arguing that merit should be
the social criterion in awarding political and economic
privileges.
4 Social Organizations and
Government
They should rule who are able to rule best.

Aristotle (Politics)
The social organization that holds men together is an impor-

tant form of human adaptation to the environment. Its
discrete structure is dependent on moral codes and legal
systems as well as on man's capacity to deal with nature.
Social organization ensures that individuals perform their
proper functions. It is the basis for the division oflabour and
the division of consumption. Man is a social as well as know-
ledge-equipped animal. The social organization of any highly
evolved civilization is not a mere consequence of 'natural'
evolution. Its structure is largely a result of conscious efforts,
built on the basis of philosophies. Democratic institutions are
built on the philosophy of liberty rather than a consequence
of 'naturally-formed habits'. In China, traditional social
organization was largely framed by Confucianism.
THE RECTIFICATION OF NAMES
[T]here is nothing in the world more fatal to the mainte-

nance of a good cause than deceit, misinterpretation, and
falsehood. That the strictest laws of honesty should be ob-
served in the discussion of a purely speculative subject, is
the least requirement that can be made.
Kant (1781:421)
Society is made up of such 'symbols' as money, wealth and

social position. These symbols affect human relations and
people's welfare in many ways. For instance, when we refer
to the terms politician or professor in different countries, we
immediately have different perceptions of the corresponding
59
human capital structures. Chinese philosophies display great

concern with relationships between names and actuality. In
Taoism the focus on the relationship is metaphysical; among
logicians it is logical; among the judiciary it is utilitarian; in
Confucianism it is ethical (Fung, 1958; Chan, 1973).
Confucius held that it is important for society to maintain the
correct correspondence between the social symbols and the
meanings these symbols are supposed to stand for.
Deception would occur and language would lose its meaning
if society could not properly interpret its social symbols.
Harmony in Chinese society depends on hierarchical
organization and on the proper performance of roles from
top to bottom. Each individual is expected to follow social
norms of conduct. The rectification of names is a funda-
mental concept in safe-guarding the Confucian social order.
Confucius held that every (social) symbol - clothes, behav-
iour, words - contains certain implications which constitute
that class of things to which the symbol corresponds. He
used the rectification of names to advocate not only the
establishment of a social order in which names and ranks
are properly regulated, but also the correspondence of
words and action or of words and actuality (Chen, 1911;
Chan, 1973). He emphasized the importance of the correct
correspondence between the essence of a social symbol (like
professor or president) and its actuality in society. Confucius
said:
Fine words and an insinuating appearance are seldom as-
sociated with true virtue.
Social ranks and official positions must be clearly defined and
fully transformed into action. If a man holds a title, he must
carry out the duty associated with the title. Confucius said:
A cornered vessel without corners. - A strange cornered
vessel! A strange cornered vessel.
This simply tells us that when a cornered vessel no longer
has any corners, it should not be called a cornered vessel.
This saying, when applied to ethics, has important implica-
tions. For instance, a research professor who loses
intellectual interest in knowledge and does not carry out any
research should not be addressed as professor.
Social Organizations and Government 61
For Confucius the first thing the government should do in

order to start administering the state is to rectify names. This
is illustrated by the following saying:
Zilu said 'The prince of Wei has been writing for you, in
order with you to administer the government. What will
you consider the first thing to be done?' The Master
replied, 'What is necessary is to rectify names.'
It is only with the correct names that the people have criteria
to justify their behaviour and take proper action. Without
correct names the state will be in disorder as it has no stan-
dard for punishment and reward. Confucius' following
argument about rectifying names is of central importance to
Confucianism:
If names be not correct, language is not in accordance with
the truth of things. If language be not in accordance with
the truth of things, affairs cannot be carried on to success.
When affairs cannot be carried on to success, proprieties
and music will not flourish. When proprieties and music
do not flourish, punishments will not be properly
awarded. When punishments are not properly awarded,
the people do not know how to move hand or foot.
Confucius argued that when appointed to a special social
position, a person should carry out his duty in accordance
with what this position stands for in society. Thus, business
is for the sake of business and love is for the sake of love.
Names such as prince, minister, father or son correspond
to the essential and constitutive functions of various
members of society. Confucius actually tried to construct the
characteristics of many such names in his doctrines.
Similarly, he argued that the essence of language is to com-
municate its meaning:
In language it is simply required that it convey the
meanmg.
As has been said, Confucius did not give any fixed rules for
people to follow. Words, like actions, should be situation-
dependent. Words themselves must be spoken with great
caution. He asked people to take account of the effects of
their words. He warned:
When good government prevails in a state, language may

be lofty and bold, and actions the same. When bad govern-
ment prevails, the actions may be lofty and bold, but the
language may be with some reserve.
He always warned against deception or wrong judgement
due to facial expressions:
The virtuous will be sure to speak correctly, but those whose
speech is good may not always be virtuous. Men of prin-
ciple are sure to be bold, but those who are bold may not
always be men of principle.
With regard to deception and one's reaction against decep-
tion, Confucius commented:
He who does not anticipate attempts to deceive him, nor
think beforehand of his not being believed, and yet appre-
hends these things readily when they occur; - is he not a
man of superior worth?
Confucius advised that one should not judge a man simply
by his words or according to what others think of him:
The superior man does not promote a man simply on
account of his words, nor does he put aside good words,
because of the man.
When the multitude hate a man, it is necessary to
examine the case. When the multitude like a man, it is
necessary to examine into the case.
Nothing is so deeply hated by Confucius as deception:
I hate the manner in which purple takes away the luster of
vermilion. I hate the way in which the songs of Zheng
confound the Imperial music. I hate those who with their
sharp mouths overthrow kingdoms and families.
Society should prevent deception from being widespread
because deception may confuse virtue:
Specious words confound virtue. Want of forbearance in
small matters confounds great plans.
In Confucius' conception of social organization, the signif-
icance is the true correspondence between social symbol (like
emperor or minister) and the performance of duty.

Success/failure or gain/loss is interpreted within this corre-
spondence. For instance, the Confucian mind can peacefully
live under (morally acceptable) foreign rulers. Confucian
tradition did not demand that the country be ruled by some
special race. This attitude is not due to a slavish mentality but
to the Confucian belief that the only value of government is
to guarantee the people's well-being. The title ruler itself is
meaningless if the ruler does not perform his duty. Equally,
anyone is acceptable as a ruler of his country if he performs
in correspondence with what the position requires of him.
THE CLASSIFICATION OF PEOPLE
[T]here is a difference of degrees in men's understand-

ings, apprehensions, and reasonings, to so great a latitude
that one may, without doing injury to mankind, affirm that
there is a greater distance between some men and others
in this respect, than between some men and some beast.
John Locke (Two Treatises of Government, 1689)
Social organization, in brief terms, consists of the 'arrangement

of men'. The concept of man is a key element for understand-
ing structures of social organization. Although socioeconomic
organizations are universally characterized by hierarchical
structures, this does not imply that the arrangements and 'con-
tents' of these hierarchical structures are identical. Leadership
choice may depend on various principles which are intimately
related to the concept of man and the classification criteria of
men in society. Classification is based on some criterion regard-
ing difference and similarity among things or affairs. One
important criterion of human capital is intelligence. The evolu-
tion of intelligence and the socioeconomic conditions for its
evolution have been a great concern of scientific thinkers
(Galton, 1869; Dawkins, 1976; Wilson, 1978; Herrnstein and
Murray, 1994). Darwin asserted that the transmission of
inherited intelligence was a key step in human evolution,
differentiating our ancestors from the other apes.
The individual is the elementary actor of society and is the
basis of all social organizations. The construction of ideal
patterns of individual life is the essential step in establishing

social theory. To rationally discuss ideal patterns of life,
proper classification of people is required. But the classifica-
tion criteria depend on the purpose. Confucius classified
people using two different systems of criteria. One system is
based on the quality of people's minds, measured in terms of
benevolence, virtue, knowledge, faith and other intellect-
related variables. Within this framework he used the two
extremes, the gentleman and the small man, to discuss
human characteristics. The other system is socially related.
He classified people according to their social (as well as 'bio-
logical') positions, such as prince, minister, husband, wife,
father, son, brothers, old and young. When he spoke about
self-cultivation, Confucius used 'the space of the gentleman
and the small man'; when he dealt with duty and social
order, he used the 'space of social positions'. As mentioned
above, the significance of the rectification of names in
Confucius' doctrine is that it requires each social position to
be occupied by the proper mind. If a proper correspondence
does not exist in reality, then society will be in disorder. The
purpose of moral education is to bring the two spaces as near
to each other as possible in reality.
Each man constitutes a unique biological, social, and cul-
tural complex. The 'distribution' of human characteristics
is so complicated that it is difficult to classify people neatly
and simply into just a few classes. The classification of a
population according to complicated criteria such as
benevolence/evil or wisdom/stupidity is unlikely to be accu-
rate because boundaries between the various types are too
fuzzy. Although Confucius formulated a few typical types of
people, this does not mean that he believed that a special
man will exactly match a special type. He considered himself
to be neither a superior nor a small man, but something in
between. As discussed in the preceding chapter, Confucius
classified people according to the quality of their minds. I
now go on to provide other examples that illustrate the dif-
ference between the gentleman and the small man.
Confucius believed that it is not only the kind of good be-
haviour but also the kind of bad behaviour that reveals a
man's class:
Social Organiwtions and Government 65
The faults of men are characteristic of the class to which

they belong. By observing a man's faults, it may be known
what kind of man he is.
Both the gentleman and the small man may err; but they err
in different ways. Confucius believed that the perfect man
did not exist in reality; at least he said that he had never met
such a man in life. He said:
The superior man thinks of virtue; the small man thinks of
comfort. The superior man thinks of the sanctions of law;
the small man thinks of favours which he may receive.
The main difference lies in what is going on in their minds
at a deep level. For Confucius, the gentleman also cares
about his reputation but in a different sense from the small
man:
The superior man is distressed by his want of ability. He is
not distressed by men's not knowing him. The superior
man dislikes the thought of his name not being mentioned
after his death.
The gentleman should be sociable. His value is also tested over
time. Rather than worrying about how many times he is cited
nowadays, the gentleman scholar should think of whether or
not his works will be read by people in the long term.
The gentleman's heart is devoted to truth, not some dis-
crete symbol like father or teacher:
Let every man consider virtue as what devolves on himself.
He may not yield the performance of it even to his teacher.
Confucianism is often misinterpreted with regard to
freedom and independence. For Confucius, the gentleman
will never abandon his principles even if loyalty to the truth
costs him his life:
The determined scholar and the man of virtue will not seek
to live at the expense of injuring their virtue. They will even
sacrifice their lives to preserve their virtue completely.
Since the goal of Confucius' gentleman lies in seeking
benevolence and truth, the gentleman's value in life is to pre-
serve virtue.
In summary we see that Confucius' gentleman is a symbol-

ic man who features almost impossibly good characteristics.
The gentleman should both cultivate himself and provide
happiness for others. He follows what is natural and right
and obeys the ordinances of Heaven. He is sociable but does
not join in clubs for selfish purposes. He lives a simple, frugal
and virtuous lifestyle and is covetous of neither money nor
power. He is peaceful and quiet. He is careful and slow in
speech but earnest and quick in action. He studies extensive-
ly but always keeps himself under the restraint of virtue. He
practises earnestly what he has learned and is constantly
seeking good sources of knowledge. Knowledge is there to be
put to practical use, not empty talk and decoration. If he
finds the truth, no matter what conditions he is placed he
should be satisfied. For Confucius, such a man should be
entitled to rule. This is a key point of Confucius' organization
theory.
The Welfare of the People and the Government
Men are not corrupted by the exercise of power, or

debased by the habit of obedience; but by the exercise of a
power which they believe to be illegitimate, and by obedi-
ence to. a rule which they consider to be usurped and
oppreSSIve.
Alexis de Tocqueville (Democracy in America, 1840)
The dominant theme in Confucian political ideology is not

power but ethics. The state is seen as a mechanism for exert-
ing social control and for establishing and maintaining moral
order. The government is not a means of using people for
some special purpose but is considered to be a body of
organizations whose end is to serve the people. Accordingly,
the ruler's duty is to work for the welfare of the people.
Confucius held that the best policy of the government in
society is to maintain peace and establish order. He proposed
five methods by which government could win people's trust
and promote contentment and tranquillity: respecting
people's business and their sincerity; loving people; taxing
properly; and operating economically. People obey rulers
only if rulers behave in a proper way. If they fail to behave
in a just way towards the people, their authority as rulers of

the people should be taken away from them. When the
government is of poor quality revolution by the common
people is justified. This theory of political stewardship and
the justification of revolution were further developed by
Mencius.
The true aim of government is not supposed to be brought
about by rigid adherence to arbitrary laws but rather by a
subtle administration of customs that are generally accepted
as good and have the sanction of natural law. The controlling
motivation is not fear but a positive desire to cooperate in
carrying out a shared purpose. Confucius' political thought
does not employ negative punishment but establishes posi-
tive examples. Rather than launch into tirades about what
people should do or not do it provides education. Confucius
taught that a person's first obligation is to correct his own
faults. He held that the gentleman should be loyal to virtue
rather than to a special political body. This principle has had
important practical implications for China's traditional polit-
ical organization. It made it possible for the establishment of
the Censorate, a body of the Chinese government which had
been charged for the last 2000 years with the function of crit-
icizing derelictions of duty by any official or even by the
emperor himself (Hsii, 1995). In modern times, the social
role of the Censorate has been replaced by free speech and
by a free press.
Since a good government takes the welfare of its people as
the main purpose of governing, it is no surprise to see that
society under such a government attracts people from both
near and far:
Good government obtains, when those who are near are

made happy, and those who are far are attracted.
The goodness of the government is judged by its people's

happiness and other people's feet (i.e. the fact that the
people are prepared to relocate themselves to benefit from
that government's good administration). It is the common
people who judge whether or not the government is good.
When society functions under correct principles, people will
not be much concerned with social issues:
When right principles prevail in the empire, government

will not be in the hands of the great officers. When right
principles prevail in the empire, there will be no discus-
sions among the common people.
In other words, when the correct principles prevail in
society, each person carries out his particular duty freely. In
this sense what Lao Tzu conceives of in terms of social organ-
ization is a special case of Confucius' doctrines.
VIRTUE AND MERIT IN THE GOVERNMENT
U ntiI philosophers are kings, or the kings and princes of

this world have the spirit and power of philosophy ... cities
will never rest from their evils.
Plato (The Republic)
Aristotle believed that men were born unequal. In the Greek

view, a real, continuing aristocracy of merit is hard to
imagine; some groups will inevitably acquire the honour of
hereditary merit; others will be relegated to hereditary
slavery. Conversely, Confucius believed in the natural equal-
ity of all men. This, plus a commitment to public service is the
basic characteristic of the Confucian ideal of self-cultivation.
Like Aristotle, Confucius advocated an aristocracy of merit.
But since he believed that all men possessed an evaluating
mind, and that self-cultivation leads some people to moral
excellence, Confucius argued that the morally pre-eminent
ought to be entitled to high social positions. He believed that
society could become harmonious only when men who have
approached this ideal are in public office.
Confucius advocated universal education and taught that
diplomatic and administrative positions should go to those
who were best qualified academically rather than socially.
The Chinese had already dismissed the hereditary right of
the aristocracy way back in their past. In the Spring and
Autumn, Confucius too denied the hereditary right of the
aristocracy, and replaced it with educational election. In
Confucian tradition education is the only factor determining
social status. The rulers obtain public trust by undergoing a
very thorough-going education in the principles of morality

and government. Officials are selected on the basis of their
assimilation of this education. Such officials should not rule
by arbitrary whim. They should not be freed from the
domination - via conscience and public opinion - of the Way.
The government is an agency which is able to effectively
manage the country's economy and to bring the moral influ-
ence of superior men to society as a whole through the
power of moral example and education. Confucius advised
that the government be economical and employ righteous
persons:
To rule a country of a thousand chariots, there must be
reverent attention to business, and sincerity; economy in
expenditure, and love for men; and the employment of
the people at the proper seasons.
Men are to be employed according to the scope and depth of
their minds:
The superior man cannot be known in little matters; but
he may be entrusted with great concerns. The small man
may not be entrusted with great concerns, but he may be
known in little matters.
Obviously, the 'intelligence market' in Confucius' doctrines
imply severe competitive mechanisms. Confucians are never
passive beneficiaries of a changeless social order. There are
notable privileges; but men have to fight hard to obtain and
maintain them.
Confucius held that if national affairs are put into the hands
of small men, the country will be in disorder and quickly col-
lapse. When asked about government, Confucius replied:
The art of government is to keep its affairs before the
mind without weariness, and to practice them with undevi-
ating consistency.
Thus, consistency in a government's decisions and in
holding its promises will win the people's heart.
Confucius held that one should not expect the mass of the
people to have deep minds. He thus never suggested putting
the government into the hands of the masses. Good govern-
ment has to depend on the rulers:
The people may be made to follow a path of action, but

they may not be made to understand it.
But he advocated teaching the Way to ordinary men as a
means of facilitating government. In order to ensure that
people submit to it willingly, the government should advance
the upright men:
Advance the upright and set aside the crooked, then the
people will submit. Advance the crooked, and set aside the
upright, then the people will not submit.
In order to cause the people to revere their ruler and to be
faithful to him, Confucius suggested:
Let him preside over them with gravity, then they will
reverence him. Let him be filial and kind to all, then they
will be faithful to him. Let him advance the good and teach
the incompetent, then they will eagerly seek to be virtuous.
VIRTUE AND PROPRIETY IN THE GOVERNMENT
Nothing doth more hurt in a state than that cunning men

pass for wise.
Francis Bacon, 1561-1626
Civilized society maintains law and morals in order that its

social and economic systems operate properly. Law is distin-
guished from morals in that the law is institutionalized. It is
designed, maintained, and enforced by the political authori-
ty of society. Moral codes are designed, maintained, and
enforced by public sentiment. Different cultures emphasize
different aspects of law and morals. Even in the same
country, law may be stronger or weaker in different periods.
Since law and morals are not always consistent with regard to
a particular event, choosing whether to follow the law or to
follow one's own morality is an often complicated decision.
Possible conflicts between ethics and law are recognized in
the ancient West as well as in ancient China. Aristotle argued
that the rule of law is preferable to that of any individual.
Nevertheless, he said that customary laws have more weight,
and relate to more important matters, than written laws, and
that a man may be a safer ruler than the written law, but not
safer than the customary law. He left the guidance of society
to custom. Adam Smith did not believe that law could guar-
antee justice. He argued (Smith, 1759: 175-6):
The rules of justice may be compared to the rules of

grammar; the rules of the other virtues, to the rules which
critics lay down for the attainment of what is sublime and
elegant in composition. The one, are precise, accurate,
and indispensable. The other, are loose, vague, and
indeterminate, and present us rather with a general idea
of the perfection we ought to aim at, than afford us any
certain and infallible directions for acquiring it.
Justice is the creation and observance of man-made laws

implemented by authority. Smith held that justice is a neces-
sary but in itself not sufficient condition for the achievement
of full virtue. Although Confucius also distingushed the rule
of justice and the principles of the other virtues, he held that
society should be governed by virtue and regulated by pro-
priety. Cultural tradition dies hard. It is a traditional belief
in the West that social order should be maintained by law.
There is a continued belief in Confucian China that society
should be governed by propriety rather than by law.
Confucius preferred virtue and propriety to law in main-
taining social justice since he did not believe that law would
make the people's heart virtuous. Confucius tried to find a
way to secure social justice in a feudal-bureaucratic society.
He rejected any idea of constitutional government on the
grounds that under the principles of constitutionalism order
is imposed upon society by law and those who break the law
are penalized, so that people come to think how they can best
avoid punishment, and the resulting society has no sense of
shame. His argument is summarized as follows:
If the people be led by laws, and uniformity sought to be

given them by punishments, they will try to avoid the
punishment, but have no sense of shame. If they be led by
virtue, and uniformity sought to be given them by the
rules of propriety, they will have the sense of shame, and
moreover will become good.
With regard to litigation, Confucius said:

In hearing litigations, I am like any other body. What is
necessary is to cause the people to have no litigations.
However, it is appropriate for society to be under the sway
of the principle of government by virtue of something analo-
gous to the law that is found in a constitutional society. This
is referred to by Confucius as ceremony - norms that are
established by custom and are thus less rigid than law. Thus,
a society is to be guided by morality and controlled by
ceremony. He said:
Respectfulness, without the rules of propriety, becomes
laborious bustle; carefulness, without the rules of propri-
ety, becomes timidity; boldness, without the rules of
propriety, becomes insurbordination; straightforwardness,
without the rules of propriety, becomes rudeness.
Confucius believed that his principle would mean people
developed a sense of moral shame and would act correctly.
It can be seen why Confucius required that government
should depend on the creative judgement of good men in
office. Unlike Adam Smith, who was concerned with the
correspondence between law and natural justice, Confucius
is concerned with the long-term impact of law on the mind
of the people. Confucius summarized his thoughts about
governing as follows:
Zizhang asked Confucius, saying, 'In what way should a
person in authority act in order that he may conduct gov-
ernment properly?' The Master replied, 'Let him honour
the five excellent, and banish away the four bad, things; -
then may he conduct government properly.' Zizhang said,
'What are meant by the five excellent things?' The Master
said, 'When the person in authority is beneficent without
great expenditure; when he lays tasks on the people
without their repining; when he pursues what he desires
without being covetous; when he maintains a dignified
ease without being proud; when he is majestic without
being fierce.' '" Zizhang then asked, 'What are meant b,-
the four bad things?' The Master said: 'To put the people
to death without having instructed them; - this is called
cruelty. To require from them, suddenly, the full tale of

work, without having given them warning: - this is called
oppression. To issue orders as if without urgency, at first,
and, when the time comes, to insist on them with severity;
- this is called injury. And, generally speaking, to give pay
or rewards to men, and yet to do it in a stingy way; - this
is called acting the part of a mere official.
Since the government is to be responsible for disseminat-
ing virtue throughout society, Confucius did not think that
any 'virtuous' individual need be employed by government
in order to act in an official capacity. When asked why he was
not engaged in the government, Confucius replied:
What does the Book of History say of filial piety? - 'You are
filial, you discharge your brotherly duties. These qualities
are displayed in government.' This then also constitutes
the exercise of government. Why must there be THAT to
make one be in the government?
This reflects Confucius' belief that a social symbol is just that,
a symbol; what is essential are that the moral, spiritual and
intellectual content correspond to the title.
Society consists of the ruler and the ruled. Confucius made
suggestions about how to serve a ruler that are similar to how
to serve one's parents:
Do not impose on him, and moreover, withstand him to
his face.
Confucius did not ask the people to be blindly obedient to
the ruler. But in order to maintain a stable and desirable re-
lationship on the basis of duty and emotional attachment,
each person should follow certain forms of propriety.
THE HIERARCHICAL STRUCTURE
Without systematic unity, our knowledge cannot become

science; it will be an aggregate, and not a system .... By a
system I mean the unity of various cognitions under one
idea.
Kant (1781:466)
Confucianism is a philosophy of social organization, of

common sense and practical knowledge. It stresses the need
for proper behaviour of and for harmonious relationships
among various social actors. It values order, hierarchy, and
tradition and assigns the central role of maintaining social
control and regulation to the extended family. It gives pre-
eminent status to the family and promotes filial piety,
ancestor worship and collective responsibility. Confucius
conceived of individuals and the state as an organic whole.
What the state secures is the individual's ability to fulfil his
role in society. It is only when the whole is healthy that it is
possible for people to perform their functions and dwell in
an efficient and secure state. Confucius taught that every
individual has proper duties: a subject must respect his ruler
and the ruler must be virtuous and capable; a wife must
respect her husband and the husband must perform his
duties as husband and father well:
There is government, when the prince is prince, and the

minister is minister; when the father is father, and the son
IS son.
Different human capital is required for different social

positions:
A prince should employ his ministers according to the
rules of propriety; ministers should serve their prince with
faithfulness.
In the Confucian social system there are a number of clearly
separated social positions with certain explicit duties. One
can move from one social position to another. There is
nothing to prevent a virtuous peasant from being noticed
and elevated to a higher status. The strict functional divisions
simply imply that while occupying one position one is not to
usurp the functions of another. In this system of division of
labour, one should not interfere in others' affairs:
He who is not in any particular office has nothing to do
with plans for the administration of its duties.
Under the above general principles Confucius constructed a
hierarchical society with the emperor at the top of the
pyramid. The emperor is the keystone in the arch of social

order. Confucius said:
He who exercises government by means of his virtue, may
be compared to the north polar star, which keeps its place
and all the stars turn towards it.
The emperor should naturally attract his people around him
by his virtue and ability. According to Confucius, a virtuous
government would strengthen the people by means of
morality and serve naturally to bring about order in society
by raising the level of virtue among the people. The
Confucian family is organized according to a pattern of
orderly subordination to authority. The children are subject
to the authority of their parents. The head of the family will
not be a despot, thanks to proper education and a sense of
propriety. Each member has his place, his function, and (in
the Chinese sense) his 'face' in the hierarchical structure.
The members of the family are treated as ends, not as means.
Economic advantages are shared with considerable equity
among the members.
Confucius held that an effective government exists when each
person in a superior position performs his duty well in society:
[To govern well,] employ first the services of your various
officers, pardon small faults, and raise to office men of
virtue and talents.
The proper arrangement of people is necessary for any
system to operate effectively. In this hierarchical system the
ruler is not to be inactive, but to be the hardest working part
of the entire system. Confucius said:
[The ruler] goes before the people with his example, and
be laborious in their affairs.
This requirement of hard work from the government is
not something that is conducted blindly; governing well
depends on proper behaviour by the government:
Let your evinced desires be for what is good, and the
people will be good. The relation between superiors and
inferiors is like that between the wind and the grass. The
grass must bend, when the wind blows across it.
This wind can be taken as one's consciousness of doing good

for the grass. It is not a cruel wind that roots up the grass.
On the other hand, Confucius argued that if the grass is not
facing the wind when it is particularly fierce, then the garden
will be ruined:
If a ruler's words be good, is it not also good that no one
oppose them? But if they are not good, and no one
opposes them, may there not be expected from this one
sentence the ruin of his country?
Only stupid or evil men use terror as a way of governing the
people. Confucius constructed a social organization in which
each member performs his duty according to his virture and
ability and is correspondingly rewarded. This social organ-
ization is operated by the power of 'natural order' rather
than by any external authority. Confucius argued:
If a minister make his own conduct correct, what difficulty
will he have in assisting in government? Ifhe cannot rectify
himself, what has he to do with rectifying others?
This correctness of the government is based on its capacity to
make proper long-term plans and engage in appropriate
action to carry them out. He argued that the government
should be careful in its spending. Since a good government
carries out planning with regard to its long-term goal, it does
not carry out national projects in a hurry:
Do not be desirous to have things done quickly; do not look
at small advantages. Desire to have things done quickly
prevents their being done thoroughly. Looking at small
advantages prevents great affairs being accomplished.
The basis of the government's capacity lies in its ruler's
virtue. It is reasonable to see why Confucius emphasized the
self-cultivation of the ruler:
If a superior love propriety, the people will not dare not to
be reverent. If he love righteousness, the people will not
dare not to submit to his example. If he love good faith,
the people will not dare not to be sincere. Now, when these
things obtain, the people from all quarters will come to
him, bearing their children on their backs.
In order to plan and carry out its proper functions, the

government's important social positions should not be occu-
pied by small men since they are only concerned with how to
maintain their own positions rather than to make progress.
Confucius held:
There are those mean creatures! How impossible it is
along with them to serve one's prince! While they have not
got their aims, their anxiety is how to get them. When they
have got them, their anxiety is lest they should not lose
them. When they are anxious lest such things should be
lost, there is nothing to which they will not proceed.
Although Confucius asked that the government should be
operated by virtuous and capable men, he did not require
that each gentleman be capable of doing everything or
knowing everything. For Confucius various social positions
have different structures of human capital. For instance,
Confucius held that a man could be called an officer ifhe had
the following ability:
He who in his conduct of himself maintains a sense of
shame, and when sent to any quarter will not disgrace his
prince's commission, deserves to be called an officer.
In the Confucian hierarchical system, a man can achieve the
next highest rank if he achieves the following:
He whom the circle of his relatives pronounce to be filial,
whom his fellow-villagers and neighbours pronounce to be
fraternal.
With regard to the next rank, Confucius defined:
They are determined to be sincere in what they say, and to
carry out what they do. They are obstinate little men.
Confucius held that the basis of his whole hierachical system
is self-cultivation. One should examine oneself to judge
whether one is worthy of one's place:
A man should say, I am not concerned that I have no
place; I am concerned how I may fit myself for one. I am
not concerned that I am not known; I seek to be worthy to
be known.
If the government is composed of virtuous and capable

rulers and officials, it is not difficult for the government to
set the people to work and to make them work hard:
When rulers love to observe the rules of propriety, the
people respond readily to the calls on them for service.
In modern terms, one can reach the conclusion that what is
important in Confucius' thought is the perfect match
between the market value and the real value.
In Confucius' doctrines there is no racial discrimination.
All men are naturally equal. But it is difficult to judge
women's social positions in Confucius' system. A sexual divi-
sion of labour is apparent in Confucius' thought system -
man works outside the home and woman works at home.
This traditional sexual division of labour ought to be broken
down as industrialization proceeds apace, as argued by
Engels as follows:
Woman can be emancipated only when she can take part
on a large social scale in production and is engaged in a
domestic work only to an insignificant degree, and this has
become possible only in the big industry of modern times.
Confucius did not discriminate against woman. In fact,
except for enumerating woman's (as well as man's) duties, it
seems that he was seldom concerned with woman. It seems
that to his mind the social position of woman is equal to that
of man. The separation of the sexes does not imply inequal-
ity between men and women. Confucius gave equal weight to
the interests of each individual in society. Surely, in his time
women never had full opportunities to cultivate and exercise
their power of reasoning in society. Chen (1911) described
Confucius' attitude toward women as follows:
fundamentally woman is the equal of man. But, in the
Disorderly Stage, the separation of the two sexes is advis-
able; in the Advancing Peace Stage, social intercourse
between the sexes is suitable; in the Extreme Peace Stage,
the absolute independence of woman is mostly lovely and
just. All these are harmonious with the doctrine of the
Three Stages of Confucius.
Confucius' attitude toward women is a consequence of his
classification of people according to the quality of their

minds. He believed that 'quality of mind' is dependent on
environment, challenge and education. It was perhaps
beyond his imagination that education would become so
widespread in modern times.
Confucius did not believe that there are fundamental con-
flicts between the family and the state. He held that it is in the
family that men learn attitudes of obedience and cooperation
and gain experience in socialized activity. This is what makes
it possible for them to become useful citizens or officials.
Indeed, there is a potential conflict between the idea that one
should obey one's father and the idea that one should act in
accordance with the Way. Confucius said very little about
what should be done when a conflict between the state and
the family occurs. He was mainly concerned with how the
system would operate if each individual performed his duties
well. When conflicts happen, there may be multiple (situa-
tion-dependent) ways to solve them. If Confucius had spent
much time analysing the various special solutions of possible
conflicts in detail, his doctrines might not have had any
lasting impact.
Confucius constructed a hierarchical social system. But he
did not believe that his concrete socioeconomic system was a
unique manifestation of the highest principle. He considered
his system as a specified course of the Way - the Small
Tranquillity as he called it. Under the same Way, there are
multiple courses:
Those whose courses are different cannot lay plans for one
another.
For Confucius, Lao Tzu's non-active policy was another
course of the Way. If Confucius had lived today, he might
have considered democracy in a similar way. It is said that
Confucius admired Lao Tzu but that Lao Tzu mocked
Confucius. One might see why Confucius has often been re-
garded among Chinese philosophers to have had the more
sophisticated mind.
5 Wealth and Profit
To found a great empire for the sole purpose of raising up

a people of customers, may at first sight appear a project
fit only for a nation of shopkeepers. It is, however, a
project altogether unfit for a nation of shopkeepers; but
extremely fit for a nation whose Government is influenced
by shopkeepers.
Adam Smith (1776n:129)
Modern economics has evolved to such a high complexity

that even the professional economist can only be familiar
with some special subfields of his subject. Specification and
severe professional competition tend to result not only in
technical complexity and accuracy but also narrowness (if
not mediocrity). The evolution of professional economics
shows that the division of labour and market mechanisms
may not be effective in some circumstances with regard to
some human activities. Modern economics is characterized
by the refinement of each subfield without the existence of
any strong connections among these subfields. In contrast
to pure mathematicians and natural scientists, economists
deal with values and the exchange values of real things
(and human affairs). J. S. Mill's saying that a person who
knows nothing else is not likely to be a good political
economist is still applicable to the profession. In contrast
to Adam Smith, the father of economics, modern econom-
ics (at least its main contents) does not explicitly refer to
a moral dimension. The economy is treated as an autono-
mous system, independent of, for instance, ethical systems
and social systems (like family structure). The practice of
examining the economy as an autonomous system was
initiated in modern times. This method is effective for
analysing short-term economic problems since the
economy has become an autonomous sphere of society, in
some way or other. But when one projects over the long-
term, the method does not provide deep insight into
evolution of economic systems.
80
Wealth and Profit 81
Moral judgement is related to the judgement of relations.

Human networks are so complicated that an action may have
multiple implications. For instance, to work hard is normal-
ly perceived as moral behaviour; but when society is faced
with a high unemployment rate, a government may limit
working time in order to distribute employment opportun-
ity. To limit people's positive efforts sounds immoral; but
when the labour market is considered as a whole, it may be
morally correct. It is widely agreed that ethics and profit
must be examined within a compact framework; only a few
modern scholars, however, are deeply concerned with issues
related to ethics and profit within a consistent framework.
The issues are not easy since they involve grand visions,
broad knowledge, and a proper sense of human nature. An
understanding of what I mean here can be gained by
reading Adam Smith's two books, The Theory of Moral
Sentiments (1759) and The Wealth of Nations (1776).
LIVING CONDITIONS OF THE PEOPLE
It is the nature of desire not to be satisfied, and most men

live only for the gratification of it.
Social and economic systems are theoretically constructed in

order to achieve various purposes. A doctrine may be sup-
posed to follow a natural way like Taoism, or to satisfy the
demand of some exogenous existence like religion, or to
optimally achieve a national goal like socialism, or to satisfy
each individual's natural requirements under legal control
like capitalism, or to maximize the happiness (or the welfare)
of the people like Confucianism. The basic vision and
purpose of society has important influences on the structures
of social organizations and on social and institutional values.
As far as social practice is concerned, the central purpose of
Confucius' doctrine is to guarantee and improve the living
conditions of ordinary people. As has been discussed,
Confucius argued that the main concern of the government
should be people's welfare, and that economic conditions are
the most important factor affecting the welfare of ordinary
people. It thus follows that Confucius considered the

people's living conditions to be of primary concern to the
government. Confucius suggested that a ruler should put
trustworthiness first among his priorities, the livelihood of
the people second and military matters last:
Zigong asked about government. The Master said, 'The

requisites of government are that there be sufficiency of
food, sufficiency of military equipment, and the confi-
dence of the people in their ruler.' Zigong said, 'If it
cannot be helped and one of these must be dispensed with,
which of the three should be foregone first?' 'The military
equipment', said the Master. Zigong again asked, 'If it
cannot be helped, and one of the remaining two must be
dispensed with, which of them should be foregone?' The
Master answered, 'Part with the food. From the old, death
has been the lot of all men; but if the people have no faith
in their rulers, there is no standing for the state.'
Confucius taught people to look at their social and eco-

nomic situations and relationships to other members of
society with sober eyes. Rather than increase military
strength, he asked the government to improve the condi-
tions of the people. The political economic method he
advocated was to let people freely do what they considered
to be best for themselves, with government intervention
when necessary. Confucius showed a great concern for the
economic life of the people. In his doctrines the people's
living conditions, social stability, and the government are
related in the following way:
I have heard that rulers of states and chiefs of families

are not troubled lest their people should be few, but are
troubled lest they should not keep their several places;
that they are not troubled with fears of poverty, but they
troubled with fears of a want of contented repose among
the people in their several places. For when the people
keep their several places, there will be no poverty; when
harmony prevails, there will be no scarcity of people; and
when there is such a contented repose, there will be no
rebellious upsettings.
WEALTH AND THE MIND
I have always observed that the pretensions of all people

are in exact inverse ratio to their merits; this is one of the
axioms of morals.
Lagrange, in Zeidler, 1986
A society's attitude toward wealth is important for under-

standing its economy. However, wealth is a complicated
concept. It may refer to physical goods such as machinery,
land, housing, transportation and communication infra-
structures. It may also include social status, education and
knowledge. Modern economics tends to divide wealth into
two categories, material wealth and human capital. We may
also classify human capital into physical conditions and the
intellect. Here, I emphasize that it is important to be clear
about the concept of 'wealth' in examining different cultures.
Confucius' doctrines emphasize not only material wealth but
also education. The reason why some traditional Confucian
scholars who showed great interest in social status and fame
did not appear to care much about material riches, might be
that scholarship was highly respected in traditional China.
There are different reasons for making efforts to accumulate
wealth. For instance, one may want to increase one's wealth
(in the form of housing or education) because of the follow-
ing: the desire for self-aggrandizement, social prestige and
esteem, and the chance of advancing one's social status; or
the desire to achieve political or other power and influence;
or the desire for a concrete measure of one's success in life.
Satisfaction from mere possession, or from the process of
acquiring wealth or owning a business and making it
prosper, all affect one's tendency to hold wealth.
Striving for wealth is nothing alien to the traditional
Chinese, particularly if we include investment in education
as an investment in wealth accumulation. In The Religion of
China, Weber was fully aware of the much-bewailed 'crass
"materialism" of the Chinese'. He wrote (Weber: 1951):
Confucius might not disdain the acquisition of riches but

wealth seemed insecure and could upset the equilibrium of
the genteel soul.
It is true that Confucius did not disdain the acquisition of

riches; but it is not true that Confucius held that wealth cor-
rupts the mind in general. In Confucius' mind, knowledge is
the genuine wealth that a man possesses either for enjoying
civilized life or for serving society efficiently. He valued virtue
and knowledge highly while in no way despising material
possessions. Confucius himself was a man who enjoyed many
aspects oflife.
Confucius held that knowledge accumulation is positively
related to human effort, even though learning efficiency may
vary individually. As individual ability is different, and
people should be paid according to talent and efforts,
incomes may be varied among people. Confucius did not
consider interest in (material) wealth accumulation to be a
mark of inferiority. In fact, he held that if society is governed
by virtue, it is a shameful matter to be poor:
When a country is well governed, poverty and a mean con-
dition are things to be ashamed of. When a country is ill
governed, riches and honor are things to be ashamed of.
The above saying has important implications for govern-
ment as well as for ordinary people. If the country is poor,
it must be due to bad management of the government
(foreign invasions or natural disasters excepted). If society is
governed by virtue and provides people with ample business
opportunities, people have to work hard to increase their
wealth. Since it is difficult to generate wealth in agricultural
China and poverty is considered to be a shameful matter in
a just social environment, the only way for the Chinese
farmer to keep face is to work hard.
Confucius never despised human desires and he consid-
ered them to be a part of human nature:
Riches and honors are what men desire. If they cannot be
obtained in the proper way, they should not be held.
Poverty and meanness are what men dislike. If they cannot
be avoided in the proper way, they should not be avoided.
There is nothing wrong with a strong desire for possessing
wealth in the form of honour and money but it is wrong if
one does not acquire one's wealth in the proper way. In
Confucian tradition knowledge accumulation is not only
targeted for learning itself, but also for economic and social
benefits. People are different, however, and only the gentle-
man can devote himself purely to virtue and truth:
The object of the superior man is truth. Food is not his
object. There is ploughing; - even in that there is some-
times want. So with learning, emolument may be found in
it. The superior man is anxious lest he should not get
truth; he is not anxious lest poverty should come upon
him.
Learning may bring multiple benefits; but what the superior
man is concerned with is truth. Confucius was greatly con-
cerned with the relationships between the mind, wealth and
behaviour:
To be poor without murmuring is difficult. To be rich
without being proud is easy.
For Confucius, ostentatious display of one's wealth is actual-
ly a display of one's stupidity.
Virtue, knowledge, work efficiency, and payment are
interrelated in his doctrine. This is the main feature of
Confucius' thought from the social and economic points of
view. Confucius showed no interest in riches and honours if
they could not be obtained in the proper way:
Riches and honors acquired by unrighteousness are to me
as a floating cloud.
His attitude towards earning was that one should first
perform one's duty and then think of the payment, rather
than the opposite. Confucius observed that it is not material
wealth but virtue and personality that make up one's lasting
reputation:
The prince Jing of Qi had a thousand teams, each of four
horses, but on the day of his death, the people did not
praise him for a single virtue. Boyi and Shuqi died of
hunger at the foot of the Shouyang mountain, and the
people, down to the present time, praise them.
PROFIT AND VIRTUE
Virtue itself turns vice, being misapplied,

And vice sometime's by action dignified.
Shakespeare
The terms profit and gain in classical writing are not as easy
to interpret as it might appear. 'Profit' is not the relatively
narrow term it has become in modern economics. Instead,
it is a general term that has both economic and social
content. Acquisition of anything like an official position,
money, fame, or land may be interpreted as profit in
general. So it is often necessary to refer to the context in
order to understand what is actually meant by 'profit'. As
with wealth, profit is not considered to be bad in any sense
in Confucius' doctrines. Confucius argued that one should
not conduct profitable activities if they hurt other people.
Confucius has often been criticized for looking down on the
behaviour of merchants. He has been misunderstood in the
sense that he did not look down on people because of their
profession or their living conditions. He consistently used a
single criterion, the mind or intellect, to judge individuals.
He emphasized professionalism for effective social organiza-
tion as well as for economic efficiency. For him the division
of labour is only an assignment of duty that one should
perform. Social recognition, like wealth or political power, if
not consistent with one's own worth, is useful but as insub-
stantial as a floating cloud. Merchants, if they do good for
society, are far more respectable than politicians if the latter
do not care for the welfare of the people.
Confucius neither despised common people nor treated
them with special respect. He took them as they were.
Confucius never asked the common people to turn from
their daily toil and seek higher ideals:
Those who know virtue are few.
Perfect is the virtue which is according to the Constant
Mean! Rare for a long time has been its practice among the
people
Since it is rare to find someone who really understands
virtue, it is foolish to demand that common people become
perfectly virtuous. Confucius is an intellectual dreamer as
well as a sober rationalist with common sense. This is also re-
flected in the following saying:
It is not easy to find a man who has learned for three years
without thinking of becoming an official.
Although he had many good students himself, he knew that
most of them pursued learning nor only for the sake of truth.
With regard to virtuous men in reality, he stated:
I have not seen a person who loves virtue, or one who

hated what was not virtuous.
I have not seen one who loves virtue as he loves beauty.
Confucius lost neither his practical sense nor his high stan-
dards in his teachings.
To become official is a way to get profit as well as social
recognition. Confucius held that different minds have
various attitudes towards virtue and profit:
The mind of the superior man is conversant with
righteousness; the mind of the mean man is conversant
with gain.
It is obvious that even if one is only concerned with virtue,
this does not mean that one has no opportunity to make
profits because there are situations in which virtue and profit
are not in conflict. The distinction between the superior man
and the small man lies in the fact that the superior mind
searches for the essence while the small mind looks for the
superficial.
Zigong said 'What do you pronounce concerning the poor
man who yet does not flatter, and the rich man who is not
proud?' The Master replied, 'They will do; but they are
not equal to him, who, though poor, is yet cheerful, and to
him, who, though rich, loves the rules of propriety.'
Confucius held that the small man can neither enjoy wealth
nor live peacefully in poverty:
Those who are without virtue cannot abide long either in
a condition of poverty and hardship, or in a condition of
e~oyment. The virtuous rest in virtue; the wise desires

virtue.
He held that the mind of the gentleman is not concerned
with employment opportunities but rather whether or not he
is worthy of a particular position:
A man should say, I am not concerned that I have no
place; I am concerned how I may fit myself for one.
Confucius is not always flexible. He is strict when he needs to
be. For instance, he is very certain about one thing: a man
should be ashamed if he thinks only of his salary. The fol-
lowing saying illustrates this:
When good government prevails in a state, to be thinking
only of his salary; and, when bad government prevails, to
be thinking, in the same way, only of his salary; - this is
shameful.
It may be argued that in essence Confucius tried to construct
a social environment where each individual pursues his own
benefits without hurting other people.
Confucius divided human relationships into two extreme
types: one is based on righteousness and the other on per-
sonal interest. In practice people place different weights on
righteousness and personal interest. Some men may cooper-
ate towards the ends of money, power and vanity; some
others towards principles and righteousness. Confucius held
that human relations, such as marriage and friendship,
should be conducted on the basis of mutual benefit. He
argued:
There are three friendships which are advantageous, and
three which are injurious. Friendship with the upright;
friendship with the sincere; and friendship with the man
of much observations: - these are advantageous.
Friendship with the man of specious airs; friendship with
the insinuatingly soft; and friendship with the glib-
tongued: these are injurious.
These advantageous friendships provide sources for in-
spiring or for improving one's mind. A similar principle is
applied to the choice of a place to live:
It is virtuous manners which constitute the excellence of a

neighborhood. If a man in selecting a residence do not fix
on one where such prevail, how can he be wise?
Confucius himself enjoyed life. In his doctrine he also put
the enjoyment (welfare) of the people as the central task of
th~ government. But he was cautious about what one should
enJoy:
There are three things men find enjoyment in which are
advantageous, and three things they find enjoyment in
which are injurious. To find enjoyment in the discriminat-
ing study of ceremonies and music; to find enjoyment in
speaking of the goodness of others; to find enjoyment in
having many worthy friends: - these are advantageous. To
find enjoyment in extravagant pleasures; to find enjoy-
ment in idleness and sauntering; to find enjoyment in the
pleasures of feasting: - these are injurious.
OF WORK AND LESS SPENDING
To know how to live is my trade and my art.

Michel de Montaigne (Essays, 1580)
Aristotle said that the Spartans remained secure when they

were at war; but they collapsed when they were at peace. The
Spartans were trained for war; and so they had no idea of
how to 'deal with' leisure. They did not know how to morally,
socially and economically maintain the proper operations of a
society with a life style ofleisure. It is not so difficult to under-
stand the interdependence between the mind and leisure and
work activities on an individual (micro) level. But relatively
few people may understand the impact of trade-offs ofleisure
and work on a national economy. In my books on inter-
dependence between knowledge, capital, value, time and
space, I have argued that in modern knowledge-oriented
economies, distribution between leisure and work has a com-
plicated impact on the economic system. An increase in
leisure may either strengthen or weaken the national
economy, depending on creativity, efficiency of knowledge
utilization, the preference structures of the population,
wealth distribution, production functions, and other condi-

tions of the economic system. The precise (mathematical)
conditions are given in Zhang 1996 and 1999. Keynes argued
that an increase in leisure (or, more accurately, a decrease in
savings propensity) may benefit society at large in some
special situations. A person's (exogenously given) time
budget may be divided into leisure and work time. How to
distribute leisure and work time is a complicated phenom-
enon. The distribution is affected by cultural values ofleisure
and work, life experience, habits and actual social and eco-
nomic conditions. If a culture does not highly value work,
people may relax as soon as they have satisfied their basic
needs. If an individual is trained for work, he may find it diffi-
cult to use leisure time, and vice versa. It is important for the
economist to take account of the cultural values towards work
when examining long-term social and economic develop-
ment. For instance, it has been observed that modern
mainland Chinese are poor but always active. Laziness or in-
activity is looked down upon in Confucian tradition. One may
wonder why modern China is so poor if its people are so
active. The essential reason is that mainland China did not
follow what Confucius had taught:
Let a good man teach the people seven years, and they
may likewise be employed in war.
To lead an uninstructed people to war is to throw them
away.
In domestic and international 'trade wars', knowledge is the
basic production input. But mainland China has neglected
knowledge accumulation. Individuals were forced to actively
solve concrete production problems, but society as a whole
operated without any stable direction or long-term aims
before economic reforms was begun.
In Confucian tradition 'work' tends to be interpreted or
felt in much the same way as 'leisure'. One should enjoy what
one is engaged in. A popular story in China tells that when
Confucius was a boy, his interest in ceremonies began with
him playing at them rather than by being taught their moral
significance and social function. The story, whether true or
not, explains that the boy made games of ceremonies because
he naturally wanted to play: ceremony has its own purpose.
If Confucius performed the ceremony for some other

purpose - ceremony for the sake of moral training, say -
then he ceased to play. Confucius believed that it was best to
be sincere about and find pleasure in what one is engaged in.
~e greatly appreciated the pleasure obtained from the learn-
mg process:
They who know the truth are not equal to those who love
it, and they who love it are not equal to those who find
pleasure in it.
Knowledge should be useful in a practical sense. It may be
used to seek after social position and economic benefit. But
best of all is the capacity to find pleasure in the pursuit of
knowledge.
Confucius held that man has seven feelings given by
nature, not by learning; these are joy, anger, sadness, fear,
love, hatred and desire. Confucius held that man should
have desires, but the fewer, the better. He considered the
impact of consumption on the mind in the long term and
advised people to spend less for the following reason:
Extravagance leads to insubordination, and parsimony to
meanness. It is better to be mean than to be insubordinate.
He did not value spending because he believed that some
forms of pleasure do not have a desirable impact on the
mind in the long run.
MARKET MECHANISMS WITH GOVERNMENT

INTERVENTION
By pursuing his own interest he frequently promotes that

of the society more effectively than when he really intends
to promote it.
Adam Smith (1776:477)
People with different professions have different human

capital structures in modern economies. To be able to dig
a ditch, one needs a strong back but not necessarily a high
education. To be a master carpenter, one needs some higher
degree of intelligence along with skilled hands. In a free
market economy the structure of cognitive ability distribu-

tion is determined by an 'invisible hand'. Smith
(1776r: 113-14) provided a principle of the division oflabour
on an economic basis as follows:
The work which he learns to perform, it must be expected,

over and above the usual wages of common labour, will
replace to him the whole expense of his education, with at
least the ordinary profits of an equally valuable capital. ...
The difference between the wages of skilled labour and
those of common labour, is founded upon this principle.
There is an intimate interdependence between market struc-

tures and the structure of human capital in labour terms.
Many economic models have been proposed to deal with the
issues that arise. In comparison with modern economics,
traditional Confucianism did not offer any sophisticated
analysis of economic issues such as determination of prices
for goods, and services, wage rates, labour market equilib-
rium, balanced conditions of demand and supply, and
market structure in general. In Confucius' time there was no
industrialization, no modern transportation and communi-
cation. He could not imagine what science and technology
would later bring to social and economic life. Moreover, the
main material input of economic production was land, and
land is immobile. The life of the farmer was tied to the land.
Since farmers lived in the same village over many years, it is
obvious that the long-term as well as short-term 'moral cal-
culation' among the people of such a village tends to be more
complicated than that of modern mobile urban residents.
Hence, economic phenomena are (or at least, appear to be)
not so complicated in traditional Chinese economy. This dif-
ference in the complexity of accounting for emotional and
economic benefits or loss between agricultural and industrial
economies has complicated implications for relationships
between ethics and economic activity in reality.
The Chinese people made its living by agriculture. Land
was the primary basis of wealth. Throughout Chinese
history, social and economic thinking and policy centred
around the utilization and distribution of land. Confucian
economic order is distinguished by relatively few structural
characteristics: distribution of the material means of produc-

tion (mainly land) by the emperor (and the state), private
disposal of production under constraints of taxation, free
market mechanisms as the means of coordination, the family
as the basic unit of production, and long-term 'social utility
maximization' as the basic motivation in economic action. In
such a family-based economy, the economic calculation
among family members is a complicated matter as described
by Alfred Marshall (1890) as follows:
[I]n estimating the cost of production of efficient labor, we
must often take as our unit the family. At all events we
cannot treat the cost of production of efficient men as an
isolated problem; it must be taken as part of the broader
problem of the cost of production of efficient men together
with the women who are fitted to make their homes happy,
and to bring up their children vigorous in body and mind,
truthful and cleanly, gentle and brave.
Confucius insisted that men of all classes possess worth in
themselves, and must be treated not merely as tools by which
the state achieves its goals, but as the end for which the state
exists. He held that the purpose of government is to maxi-
mize the welfare of the people. All members of society,
irrespective of status are in the same boat and share the same
'fortunes' of life. It is well recognized that Confucian eco-
nomic order is quite similar to the capitalist system. This is
no coincidence if one recalls the basic Confucian principles
discussed thus far. In the Confucian system each one carries
out his duty and is paid fairly. No-one is supposed to be in-
active. In fact, inactive people are not respected in Confucian
tradition in the sense stated by Chen (1911):
[W]e may mention two more classes, namely, the
Buddhists and the Taoists. We criticize not from the reli-
gious, but from the social standpoint. They do not belong
to any of the four classes [students, farmers, artisans and
merchants], but form two separate classes by themselves.
They do not cultivate the land, but eat.... Generally
speaking, they are the parasites of society.... [T]he
Buddhists and the Taoists live by themselves, out of
society, yet depending upon society.
Confucius held that the mind becomes cultivated - and

satisfied - through action, not in meditation or repose. Work
is considered to be a duty of man. Duty is not exogenously
fixed but determined by one's conscious efforts, by purpose,
and by market conditions. There is freedom of occupation.
Everyone may freely choose his own occupation and this was
a fact even in ancient times. A farmer may become a scholar
or an official, and vice versa. There is no pre-fixed rule
determining what one must do in life. Confucius advocated
a harmonious society. Such harmony does not mean equal-
ization but the harmonization of human differences. He
justified a hierarchical society by the hierarchical character of
nature itself and the inequality of men's merits in society. In
Confucian doctrine the government is not meant to control
and operate the entire economy.
Confucius made attempts to construct an economic policy
wherein the uncultivated masses display good social and
ethical behaviour by the guarantee of a minimal level of eco-
nomic security. This light government policy is necessary for
economic security. Confucius held that if a government re-
frains from heavy taxation, people would be able to take care
of their own business and improve their own economic
welfare.
Part II
The Dynamics of
Confucianism
'During the days 1 did not see you', he said, 'I have read a
great deal, in particular a Chinese novel with which 1 am
still occupied and which seems to me very remarkable',
'A Chinese novel', 1 said, 'that must be rather curious',
'Not as curious as one might be tempted to think',
replied Goethe.
These people think and feel much as we do, and one
soon realizes that one is like them ... '.
'But', 1 said, 'perhaps this Chinese novel is a rather ex-
ceptionalone?'
'Not at all', said Goethe, 'the Chinese have thousands of
the kind, and they even had a certain number of them
already when our forebears were living in the woods',
Goethe's Conversation with Eckermann, 31 January 1827
6 Mencius (371-289 Be):
Human Nature is Good
Virtue and wisdom in their perfect purity, are ideas. But

the wise man of the Stoics is an ideaL ... As the idea pro-
vides a rule, so the ideal serves as an archetype for the
perfect and complete determination of the copy.
Kant (1781:319)
Perhaps out of wisdom, Confucius was silent on some sub-

jects. This caused his followers to make many efforts to clarify
and defend the 'unstated assumptions' in his thought system.
One of these is related to human nature. Since the time of
Mencius, human nature has been a main concern of
Confucian philosophy. In traditional China it was common
for philosophers to begin inquiries into morality and politics
by asking the question: What is the nature of man? This ques-
tion of the essence of human nature has been answered in
different ways since there are multiple possible answers to
the issue. For instance, one may argue that the issue of origi-
nal human nature is itself meaningless. We don't know at
what point man begins to exist; in addition, human character
is formed even before man is born into this world. In this
sense, it is categorically impossible to prove the existence of
original human nature. If, though, one assumes the existence
of original human nature and one sets out to classify human
nature into bad or good, then one immediately comes up
against two extreme answers - human nature is good or
human nature is evil. Mencius held the first opinion; Hsiin
Tzu advocated the second. It is also possible to argue that
human nature is neither perfectly good nor perfectly evil. In
this case it is difficult to explicitly determine 'how much'
human nature is good or bad. Throughout China's history
various beliefs have been held (Fung, 1958; Schwartz, 1985;
Munro, 1969). Shih Shih of the Chou period (1111-249 BC)
believed that in nature some are born good and some are
born evil. Kao Tzu (c.420-c.350 BC) held that man is neither
97
originally good nor evil. Tung Chung-hsu (c.179-c.l04 Be)

argued that man has the potential for goodness and his
nature is good but his feelings are evil. In 77-6 Be, Liu
Hsiang maintained that man's nature is evil but his feelings
are good. Yang Hsiung (53 Be-AD 18) developed the doctrine
of human nature as a mixture of good and evil (Chan,
1973:289)
Within Confucian tradition, Mencius' doctrine about
human nature gained the status of orthodoxy. In traditional
China, when a child began to learn the Chinese characters,
he was given a sort of textbook called the Three Characters
Classics. Each sentence of the textbook consisted of three
characters arranged so that when recited they produced a
rhythmic effect to make it easy for the child to memorize the
sentences. The very first statement of the textbook is that 'the
nature of man is originally good.' (Fung, 1948). This is the
central feature of Mencius' philosophy.
HIS SOCIAL ENVIRONMENT AND LIFE
A desire to utilize knowledge is one thing; the pure desire

to know is another. I do not doubt that in a few minds, and
at long intervals, an ardent, inexhaustible love of truth
springs up, self-supported, and living in ceaseless fruition,
without ever attaining full satisfaction. This ardent love it
is - this proud, disinterested love of what is true - which
raises men to the abstract sources of truth, to draw their
mother knowledge thence.
Alexis de Tocqueville, 1840
In contrast to Confucius, we know almost nothing about

Mencius' family or private life. Mencius was born shortly
after 400 Be, about a century after the death of Confucius.
He was born in what is now Shantung province, Confucius'
birthplace and the Confucian centre of the day. The career
of Mencius was very similar to that of Confucius. He lost his
father when he was only three years old. He was then
brought up under the devoted care and instruction of his
mother. When he grew up, he is said to have studied with the
disciples of a grandson of Confucius, Tzu Ssu. Early in life he
Mencius (371-289 Be) 99
came to regard Confucius as his greatest inspiration. He, like

Confucius, travelled about seeking office, and he seems
sometimes to have obtained it. He was a professional teacher.
He developed and popularized the doctrines of Confucius, at
the same time zealously attacking the heterodox teachings of
other schools, especially the followers of Mo Tzu and Yang
Chu (Fung, 1948, 1958; Chan, 1973).
Mencius lived in the middle of the Warring States period. It
was a period of political struggle, moral chaos, and intellectual
conflict. The numerous feudal domains of the earlier period
had been reorganized into relatively few states, each of which
held large territories. The old aristocrats had been replaced by
a ruling group with centralized power and professional
bureaucrats. States competed for political and military advan-
tage. Within shifting temporary alliances, they continued to vie
with each other for dominance. Under such circumstances, the
intellectual milieu changed. Intellectuals did not have to seek
regular bureaucratic appointments as Confucius' disciples
might have done. The various states invited thinkers to give
advice in order to gain competitive advantage.
Mencius greatly influenced the development of
Confucianism. He expounded Confucian doctrines in
greater detail than the master himself had done. He turned
the attention of Confucianism onto the theory of human
nature, developing a system that assumed the goodness of
human nature and the doctrine of intuitive knowledge.
Although he developed a doctrine that is different in many
aspects from Confucius' teaching, Mencius held that
Confucius was the greatest of all the sages. Confucius was
considered to have embodied all ancient ideals and to have
cultivated all saintly characteristics. Mencius expressed his
admiration for Confucius in the following way:
What I wish to do is to learn to be like Confucius.
So the sages among mankind are also the same in kind.
But they stand out from their fellows, and rise above the
level, and from the birth of mankind till now, there never
has been one so complete as Confucius.
Mencius basically followed the teachings of Confucius; but he
also made efforts to discover new territories which his master
perhaps knew little about.
HUMAN NATURE IS GOOD
Everything is good when it leaves the hands of the

Creator; everything degenerates in the hands 9f man.
Jean-Jacques Rousseau (1712-1778) held that man is by

nature good; society is the cause of corruption and vice
(Grimsley, 1983). The individual in a state of nature is char-
acterized by a healthy self-love accompanied by natural
compassion. In society natural self-love becomes corrupted
and seeks the good opinion of others. The individual loses
touch with his true nature, which results in a loss of freedom.
But Rousseau did not advocate that society is capable only of
corrupting man's mind. He claimed that society is also
capable of perfecting morality. In order to construct a just
society it is necessary to transform natural freedom into
moral freedom. This transformation should be based on
reason. In a just society the individual's natural freedom of
will is replaced by the general will which always acts for the
good of society as a whole. Society is constructed on the basis
of a social contract by which each individual conveys his
natural rights to the sovereign, the repository of the general
will. In such a society, the individual does not lose, but re-
discovers, freedom, it in the general will. As I hope now to
show, Mencius' general vision about man and society is very
similar to Rousseau's.
Confucius referred to human nature only once, when he
said 'by nature men are alike. Through practice they have
become far apart'. Much controversy has arisen among the
followers of Confucius as to the moral quality of human
nature. The later orthodox doctrine of Confucianism argued
that human nature is originally good. Mencius was the first
to clearly enunciate the doctrine that the nature of man in-
clines him to goodness and kindness. By the term good,
Mencius seemed to mean that the 'good' is that which is in
harmony with human nature:
The tendency of man's nature to good is like the tendency

of water to flow downwards. There are none but have this
tendency to good, just as all water flows downwards. Now
Mencius (371-289 Be) 101
by striking water and causing it to leap up, you may make

it go over your forehead, and, but damming and leading
it, you may force it up a hill; - But are such movements
according to the nature of water? It is the force applied
which causes them. When men are made to do what is not
good, their nature is dealt with in this way.
The natural inclination to compassion in people is ex-
plained through the story of the child by the well. He argued
that any person seeing that the child might fall into the well
has an instinctive natural urge to save the child. This seed is
an innate, other-regarding compassion, having nothing to do
with the desire for gain, for fame, or for parental approval.
Mencius argued:
When I say that All men have a mind which cannot bear to
see the sufferings of the others, my meaning may be illustrated
thus - even nowadays, if men suddenly see a child about to
fall into a well, they will without exception experience a
feeling of alarm and distress.
This parallels David Hume's observation that humans have a
natural sympathy for each other, even though Mencius did
not make his point using notions of subjective, inner states of
pleasure or pain, desire or intent. He said:
The feeling of commiseration is essential to man, that the
feeling of shame and dislike is essential to man, that the
feelings of modesty and complaisance is essential to man,
and that the feeling of approving and disapproving is
essential to man
Mencius believed that love and respect are innate feelings
which are common to all men and are possessed by them
without having to be learned. For him, love and respect
embody what is good in human nature. He believed that the
true end in life lies in the development and cultivation of this
innate goodness. It is the task of society or government to
follow and cultivate this original goodness. Mencius was not
blind to the evil that can be done by man; but he believed
that these evils are not original but rather due to the under-
development of the original endowment. The original
nature tends to be lost or covered up with bad habits
through contact with the outside world or other people. The

aim of education is to seek for the 'lost mind'. He believed
that environmental influences are important to the develop-
ment of the individual. He argued:
Benevolence, righteousness, propriety, and knowledge,
are not infused into us from without. We are certainly fur-
nished with them .... Hence, it is said: 'Seek and you will
find them. Neglect and you will lose them.'
As far as theoretical construction is concerned, Mencius is
the most important philosopher on the question of human
nature in China's history (Fung, 1958; Schwartz, 1985). His
belief in the goodness of human nature had been firmly held
in Confucian tradition and Mencius built his entire philoso-
phy on this hypothesis.
BENEVOLENCE (fEN) AND RIGHTEOUSNESS (LI)
The strongest is never strong enough to be always the

master, unless he transforms his strength into right, and
obedience into duty.
Rousseau (Du Contrat Social, 1762)
The terms benevolence and righteousness play the central

role in Mencius' moral doctrine. He placed benevolence as
the highest standard for individual conduct and social organ-
ization. To Mencius, righteousness and other related virtues
were closely associated with benevolence. The superior man
preserves benevolence and propriety:
That whereby the superior man is distinguished from
other men is what he preserves in his heart - namely,
benevolence and propriety. The benevolent man loves
others. The man of propriety shows respect to others.
In contrast to Confucius who greatly emphasized benevolence,
Mencius advocated benevolence and righteousness together.
To his mind benevolence was necessary to maintain a harmon-
ious society and righteousness was necessary in order to make
distinctions within that society. He considered righteousness to
be the highest level in moral values (Chan, 1973).
Mencius (371-289 Be) 103
Mencius held that benevolence is a part of human nature.

This does not mean that it is applied universally without dis-
tinction. Following Confucius, Mencius believed that one
should extend emotion from self-cultivation to love of one's
parents, to one's brothers, to one's state, finally achieving
universal love. He held that one's behaviour is neither driven
completely by self-interest nor motivated only by altruism.
People's motives are dynamic and move between the two ex-
tremes. Since human nature is good, love is an inborn moral
quality. But Mencius argued that the practice of love must
begin with the family. He strongly criticized Yang Chu who
believed in the doctrine each one for himself and Mo Tzu
who held to the principle of an all-embracing love. Mencius
chose a middle way; this way was not fixed and invariable,
however, it was changeable between the two extremes.
Mencius held that self-cultivation is necessary both for
benevolence and righteousness. He argued that the heart
consists of four seeds. These grow and blossom into the four
virtues, which, under proper cultivation, make up the
mature moral character. The seed of compassion is the basis
of benevolence. The seed of shame and disgust will grow into
morality. The seed of deference, compliance, and respect for
superiors is the source of internalized ritual behaviour. The
seed of right and wrong is that which will grow into wisdom.
Mencius argued:
The feeling of commiseration is the principle of benevo-
lence. The feeling of shame and dislike is the principle of
righteousness. The feeling of modesty and complaisance is
the principle of propriety. The feeling of approving and
disapproving is the principle of knowledge. Men have
these four principles just as they have their four limbs ....
Since all men have these four principles in themselves, let
them know to give them all their development and com-
pletion ... Let them have their complete development, and
they will suffice to love and protect within the four seas.
Let them be denied that development, and they will not
suffice for a man to serve his parents with.
Even though Mencius held that man is naturally good, he be-
lieved that both the natural properties of man and conscious
development are essential for one to become mature. The
emphasis on cultivation is due to his parallel belief that man

is not much different from other animals. If man does not
cultivate and maintain his natural properties of benevolence
and righteousness, he will degenerate. He pointed out:
That whereby man differs from the lower animals is but
small. The mass of people cast it away, while superior men
preserve it.
PEOPLE ARE NATURALLY EQUAL
A wise man never loses anything if he have himself.

Montaigne, Essays, 1580
In China it was traditionally believed that men are naturally

equal. All schools of Confucianism as well as Taoism share
this belief. This is the main reason why all schools of
Confucianism advocate that both education and official posi-
tions should be accessible to all people. It is believed that no
special race or special class of people is born superior to
others. A main factor for this belief may come from the fact
that the Chinese created their principal philosophical ideas
at a time when multiple states co-existed in conflict and no
single state achieved cultural superiority. Each state could
boast of advantages in some aspects and admit disadvantages
in others. Intellectuals had the opportunity to travel between
different cultural areas. Confucius travelled to and served in
many states. He experienced both cultural diversity and
equality.
Mencius' doctrine, the assumption that the nature of man
is good, implies that men are naturally equal at birth.
Mencius said that everyone is of the same basic type as the
sage. The sage-emperors Yao and Shun were just the same
as other men and any man, no matter what his background,
might by diligence achieve their status. Mencius held that
man is self-sufficient if only he develop his inborn nature. He
argued:
All things are already complete in us. There is no greater
delight than to be conscious of sincerity on self-examina-
tion. If one acts with a vigorous effort at the law of
Mencius (371-289 Be) 105
reciprocity, when he seeks for the realization of perfect

virtue, nothing can be closer than his approximation to it.
Mencius assumed that people are naturally equal and on
this basis, he concluded that people are the most important
element in any empire. People should have the right to elect
and discharge their own officers and to decide about matters
such as punishment. They also have the right to revolt
against their sovereign if he should act contrary to the prin-
ciples of benevolence and righteousness. Mencius' ideal
government is benevolent which he characterized as a
'kingly' government (Wang Cheng) or as a 'sage' government
(Sheng-jen Chih Cheng). He argued that if a ruler loves the
people, the people will love him in return and will not
oppose him or rebel against him; thus he will become the
ruler of the whole world. Thus people enjoy peace and live
in happiness under the leadership of a kingly ruler in the
'united kingdom of the world'. The sage-king has the whole
world as his empire. The world-empire is brought about not
by military force but by benevolent policies.
EFFORTS, TALENTS AND DESIRES
The first condition of an efficient organization of industry

is that it should keep everyone employed at such work as
his abilities and training fit him to do well.
Alfred Marshall (1890)
The Confucian theory of social organization is formed on the

basis of differences in people's talents and efforts. Confucius
held that human beings are naturally not much different at
birth but that they will be greatly different as a consequence
of practice (such things as education and social and econom-
ic activities). Intellectual capacity is a combined consequence
of innate nature and one's efforts. Confucius, however, did
not explore the implications of differences in human capital
for social and economic structures in any detail, unlike
Mencius.
For Mencius the roles of intellect and strength are differ-
ent. The distinction is essentially one of function, not of
status, for no-one is confined to one class by birth. He pro-

posed that a basic division of labour is a natural constant.
Some work with their minds and others with their muscles.
The former govern and the latter are governed. This justi-
fied the existence of a scholarly elite. Mencius argued:
Great men have their proper business, and little men have
their proper business. Moreover, in the case of any single
individual, whatever articles he can require are ready to
his hand, being produced by the various handicraftsmen.
If he must first make them for his own use, this way of
doing would keep the whole empire running about upon
the roads. Hence, there is the saying, 'some labour with
their minds, and some labour with their strength. Those
who labour with their minds govern others; those who
labour with their strength are governed by others. Those
who are governed by others support them; those who
govern others are supported by them.' This is a principle
universally recognized.
Second only to virtue, Mencius treats knowledge as the
most significant aspect of human capital. In Confucian trad-
ition, to master knowledge and to be elevated to a high
position means an increased opportunity for realizing one's
talents. Like Confucius, Mencius believed that to be fond of
learning is to be near to wisdom. For him, intuition is not suf-
ficient without learning. He argued:
The ability possessed by men without having been ac-
quired by learning is intuitive ability, and the knowledge
possessed by them without the exercise of thought is their
intuitive knowledge.
Since he emphasized knowledge and the fact that know-
ledge accumulation is mainly due to conscious efforts, it is
reasonable to expect that he greatly appreciated education.
He paid close attention to the education of children. He said:
Let careful attention be paid to education in schools, in-
culcating in it especially the filial and fraternal duties.
For Mencius, learning mainly means self-cultivation and self-
examination. What Mencius emphasized is not the ability to
reason with others or to represent oneself to the general
Mencius (371-289 Be) 107
public but the 'will' or 'incentive' to constantly engage in self-

examination. This Confucian tradition is significant for
understanding the 'behavioural patterns' of Confucian
scholars. Mencius said:
If a man loves others, and no responsive attachment is
shown to him, let him turn inwards and examine his own
benevolence. If he is trying to rule others, and his govern-
ment is unsuccessful, let him turn inwards and examine his
wisdom. If he treats others politely, and they do not return
his politeness, let him turn inwards and examine his own
feeling of respect. When we do not, by what we do, realize
what we desire, we must turn inwards and examine our-
selves in every point.
When one meets with difficulties in communications or social
interactions, Mencius suggests that one should first examine
oneself rather than only be concerned with one's represen-
tation skills. The emphasis on self-cultivation is due to
Mencius' belief that the genuine purpose of learning is to
return to one's original nature rather than to move further
away from it. He said:
When men's fowls and dogs are lost, they know to seek for
it, but when they lose their mind, they do not know to seek
for it. The great end of learning is nothing else but to seek
for the lost mind.
To seek for the lost mind is to get back the natural goodness
of man. This moral training is not an easy task, it requires life
devotion to self-cultivation. And not only self-cultivation,
Mencius greatly emphasized education. He held that if
people are not properly educated in morality, they will lose
desirable aspects of their inborn nature:
Now men possess a moral nature; but if they are well fed,
warmly clad, and conformably lodged, without being
taught at the same time, they become almost like the beasts.
This is almost the same as Confucius' emphasis on first im-
proving people's living conditions and then spreading
education.
Mencius claimed that moral behaviour was innate to the
heart's own structure. The social environment can either
reinforce or interfere with what is already there. Mencius

does not seem to distinguish between the sage and the gentle-
man, as taught by Confucius in the Analects. This is perhaps
due to the fact that Mencius held that a sage need not be quite
so perfect as Confucius required him to be. For Mencius the
aim of the lives and teachings of the ancient sages was the
virtue of benevolence, even though they offered different
courses for achieving that aim. Mencius would call a man a
sage ifhe possessed a certain special characteristic which sur-
passed others and had a beneficial influence over them. For
instance, Tzu-chang and Tzu-hsia, who both lacked the
quality of being a sage according to Confucius, were called
sages by Mencius. The stage of sagehood, according to
Mencius, is not something unattainable for ordinary men.
Thus the precise meaning of sage varies between Confucius
and Mencius, Mencius' standards for sagehood being lower
or more human than those of Confucius (Fung, 1958).
Although Mencius held that man is born naturally good,
his basic belief was that virtuous and learned men tend to be
produced under difficult conditions:
When Heaven is about to confer a great office on any man,
it first exercises his mind with suffering, and his sinews and
bones with toil. It exposes his body to hunger, and subjects
him to extreme poverty. It confounds his undertakings. By
all these methods it stimulates his mind, hardens his
nature, and supplies his incompetencies. Men for the most
part err, and are afterwards able to reform. They are dis-
tressed in mind and perplexed in their thoughts, and then
they arise to vigorous reformation. When things have been
evidenced in men's looks, and set forth in their words, then
they understand them. If a prince have not about his court
families attached to the laws and worthy counsellors, and if
abroad there are not hostile states or other calamities, his
kingdom will generally come to ruin. From these things we
see how life springs from sorrow and calamity, and death
from ease and pleasure.
Like most ancient philosophies, ease and pleasure are not
much appreciated in Confucian tradition because it is be-
lieved that in such an environment the mind tends to lose
vitality and righteousness.
Mencius (371-289 Be) 109
THE BENEVOLENT AND TALENTED-ORIENTED

GOVERNMENT
Nature never deceives us; it is always we who deceive our-

selves.
In order to understand his social organization theory, it is

necessary to see how Mencius placed people in the social
structure. He said:
The precious things of a prince are three; - the territory,
the people, the government and its business.
All the designs of his social organization theory are based on
the belief that the people are the most important element of
a nation:
The people are the most important element in a nation;
the spirits of the land and grain are the next; the sovereign
is the lightest.
Since it is the people's welfare that is the main purpose of a
nation, it is reasonable to suppose that Mencius held that the
basic condition necessary for society to be in good order is
that the people are well cared for. Mencius held that the duty
of the state is not to order people to do what it desires.
Instead, it should strive to increase the people's welfare:
There is a way to get the empire; - get the people, and the
empire is got. There is a way to get the people; - get their
hearts, and the people are got. There is a way to get their
hearts; - it is simply to collect for them what they like, and
not to lay on them what they dislike.
Seeing benevolence is the chief characteristic of an ideal
individual, Mencius thus regarded actualization of benevo-
lence as the symbol of ideal social order. He held that the
real power of any rule comes from love of loving the people
and working for the people in the proper way. It is not from
holding a gun to the people but from the love and protection
of the people that a ruler secures his power. One might get
power by the gun but it wiIl be lost or else held only in a
shameful manner. He said:
The love and protection of the people; with this there is no

power which can prevent a ruler from.
Regarding the happiness of the people as the most important
business of society and the love of the people as the way to
hold power, Mencius argued that society should be ruled not
by force but in a kingly way or by way of moral power:
When one by force subdues men, they do not submit to
him in heart. They submit because their strength is not ad-
equate to resist. When one subdues men by virtue, in their
hearts' core they are pleased, and sincerely submit, as was
the case with the seventy disciples in their submission to
Confucius.
Although Mencius held that the people's welfare is the
most important thing in a state, like Confucius, he did not
believe that ordinary people were able to understand the
moral implications of their behaviour. He says:
To act without understanding, and to do so habitually
without examination, pursuing the proper path all the life
without knowing its nature, - this is the way of multitudes.
In Confucian tradition the people are never despised; it is,
however, commonly held that the people are incapable of
deep thinking. It is perhaps due to this belief that Mencius
argued that society should fully utilize capable and talented
men for the overall benefit of society.
Mencius held that because of differences in morality,
talent, the incentive to work and working efficiency, the
members of a society should receive different social and eco-
nomic appointments. Mencius held that each man should
show obedience to his 'natural appointment':
There is an appointment for everything. A man should
receive submissively what may be correctly ascribed
thereto.
This appointment is not pre-determined by Heaven but
determined by an organic combination of factors such as
'natural positions' (like being a father), talent, efforts and
social environment. Appointments may mean different
things for different people. Mencius says:
Mencius (371-289 Be) III
between father and son, there should be affection; between

sovereign and minister, righteousness; between husband
and wife, attention to their separate functions; between old
and young, a proper order; and between friends, fidelity.
The ruling principles vary: for instance, between father and
son, the ruling principle is kindness. Between prince and
minister, the ruling principle is respect. Since each man
would take up his proper appointment in society, there
would be a division of labour. Society should be divided
into different professions with people devoted to their
duties. Like Confucius, Mencius held that the government
has two major functions: to enrich the people generally and
improve their overall welfare and to educate the people in
ceremonial rites, in social order and in national loyalty.
People differ in intelligence and these differences should
have a bearing on social and economic conditions.
Inequality in wealth and living standards is thus not con-
sidered bad but a natural state of social evolution. This
inequality is mainly due to differences in virtue, intellect-
ual capacity and effort. Mencius held that government
should optimally employ human resources rather than
merely emphasize creating equality in social and economic
conditions. Although each individual should be cared for
by society, Mencius did not advocate an ideal of egalitar-
ianism. What is significant for the ruler is not how much
wealth and power he holds but whether he is able to share
these privileges with his people. 'To enjoy or sorrow with
the world' is the ideal ruler of Confucianism.
In his merit-oriented social structure, Mencius argued that
high positions should be occupied only by the benevolent -
otherwise society has no stable foundation:
Therefore only the benevolent ought to be in high sta-
tions. When a man destitute of benevolence is in a high
station, he thereby disseminates his wickedness among all
below him. When the prince has no principles by which he
examines his administration, and his ministers have no
laws by which they keep themselves in the discharge of
their duties, in the court obedience is not paid to principle,
and in office obedience is not paid to rule. Superiors
violate the laws of righteousness and inferiors violate the
penal laws. It is only by a fortunate chance that a kingdom

in such a case is preserved.
The benevolent should be appointed to high position from
the economic as well as the purely moral viewpoint. It should
be noted that in Confucianism the leader becomes benevolent
by working hard, not by inactive mediation or by engaging in
worthless debate. The benevolent leader achieves social
harmony by behaving well and setting a model for people to
emulate:
It is only the great man who can rectify what is wrong in
sovereign's mind. Let the prince be benevolent, there will
be no one who is not benevolent. Let the prince be right-
eous, there will be no one who is not righteous. Let the
prince be correct, there will be no one who is not correct.
Once rectify the prince, and the kingdom will be firmly
settled.
There is nothing wrong with power in itself but it is wrong to
use power in a way that is not beneficial to society, that is the
people. It is a common characteristic among Confucian
schools that the leader is required to be benevolent because it
is generally believed that people can be led only by humanity
and wisdom. People cannot be led by religion, the gun,
money, or even by a single (fixed) ideology.
As has been said, learning is important in Mencius' social
thinking. He greatly emphasized the role of knowledge in his
system of the division oflabour. In particular, he claimed the
place of highest worth and honour in his hierarchical system
for the scholar. He was also concerned with utilizing social
resources effectively; he argued:
Those who keep the Mean, train up those who do not, and
those who have abilities, train up those who have not, and
hence men rejoice in having fathers and elder brothers
who are possessed of virtue and talent. If they who keep the
Mean spurn those who do not, and they who have abilities
spurn those who have not, then the space between them -
those so gifted and ungifted - will not admit an inch.
Only when each individual makes an effort to carry out the
duties assigned to his position can the whole system function
Mencius (371-289 Be) 113
in efficiency and harmony. Indeed, since Adam Smith pub-

lished his celebrated book, economists have made great
efforts to explain the dynamic interdependence between divi-
sion of labour, social organization, national wealth, and the
free market. In some sense, free market mechanisms (which
should include political freedom if we consider politics as a
part of 'wealth distribution') is the key characteristic of clas-
sical Confucianism. This holds true even although classical
Confucianism did not propose the setting up of 'market' (i.e.
democratic voting) processes to elect rulers. It is through suc-
ceeding in competitive examinations rather than in getting
voters that traditional Chinese men became officials.
The purpose of knowledge is to make people behave
wisely. The purpose of an increase in knowledge is not to
expand desires; rather Mencius suggested that it be better to
have few desires. A wise man accumulates knowledge but
properly limits desires. Mencius argued:
To nourish the heart there is nothing better than to make
the desires few. Here is a man whose desires are few - in
some things he may not be able to keep his heart, but they
will be few. Here is a man whose desires are many; - in
some things they may not be able to keep his heart, but
they will not be few.
But he did not say that people should have no desires what-
ever. In particular, Mencius was not an advocate of social
and economic equality. Distribution of income and wealth is
determined according to social and economic position. He
argued that the emperor should live in palace rather than in
a more humble abode. The reason is that if the emperor
rules the country well, his brilliant palace will be a source of
pride for his people. As mentioned previously, Confucius
held that one should feel ashamed to be poor if the country
is well governed. Similarly, Mencius held that to be rich in a
just society is a sign of glory:
The Brilliant palace appropriate to the emperors. If your
Majesty wished to practice the true Royal government,
then do not pull it down.
The purpose of the ruler's wealth is not for the emperor to
enjoy himself. Rather, he should utilize his wealth as a means
to share his people'sjoy or sorrow. The palace represents the

significance of the emperor's duties. When King Xuan of Qi
asked why the people looked on his park of forty square Ii's
as large and why the people looked on King Wen's park of
seventy square Ii's as small, Mencius replied:
The park of King Wen contains seventy square Ii, but the
grass-cutter, and fuel-gatherers had the privilege of en-
trance into it; so also had the catchers of pheasants and
hares. He shared it with the people, and was it not with
reason that they looked on it as small? When I first
arrived at the borders of your state, I inquired about the
great prohibitory regulations, before I would venture to
enter it; and I hear, that inside the border gates there was
a park of forty square Ii, and that he who killed a deer in
it, was held guilty of the same crime as if he had killed a
man. Thus those forty square Ii are a pitfall in the middle
of the kingdom. Is it not with reason that the people look
upon them as large?
Thus, if a king's wealth makes the people happy, the people
will not begrudge him his wealth. It is in this sense that in
Confucian tradition the ruler's wealth is glorified.
THE WELL-FIELD ECONOMIC SYSTEM
The division oflabour, however, so far as it can be intro-

duced, occasions, in every art, a proportionable increase of
the productive powers oflabour.
Adam Smith (17761:9)
Mencius went further than Confucius in his efforts to take

practical economic measures to ensure the welfare of the
people. He improved on Confucius in advocating specific
economic measures. Like Confucius, he insisted that the
profit motive alone cannot be the foundation for the policies
of a state. But he observed at the same time that men whose
livelihood is insecure are not likely to perceive and perform
the right actions. He did not believe that hungry people
could be expected to be moral in the long run. He made it
clear that the economic welfare of the people was a necessary
Mencius (371-289 Be) 115
condition of political stability; he therefore attributed to the

state the highest degree of responsibility for providing for
the material needs of the people. He says:
They are only men of education, who, without a certain
livelihood are able to maintain a fixed heart. As to the
people, if they have not a certain livelihood, it follows that
they will not have a fixed heart. And if they have not a
fixed heart, there is nothing which they will not do, in the
way of self-abandonment, of moral deflection, of deprav-
ity, and of wild license. When they thus have been involved
in crime, to follow them up and punish them, - this is to
entrap the people. How can such a thing as entrapping the
people be done under the rule of a benevolent man?
Therefore an intelligent ruler will regulate the livelihood
of the people, so as to make sure that, above, they shall
have sufficient wherewith to serve their parents, and
below, sufficient wherewith to support their wives and chil-
dren; that in good years they shall always be abundantly
satisfied, and that in bad years they shall escape the danger
of perishing.
Unless the livelihood of the people is sustained, unless there
is sufficient prosperity, it is not possible to develop a moral
community because the people have no leisure in which to
cultivate propriety and righteousness. His belief in the sig-
nificance of economic conditions for the common people led
him to believe that the proper way of governing is to take
care of the people's livelihood:
Therefore, a ruler who is endowed with talents and virtue
will be gravely complaisant and economical, showing a
respectable politeness to his ministers, and taking from the
people only in accordance with regulated limits.
Humane government was fundamentally a question of polit-
ical economy, the key to which was the amelioration of the
people's livelihood. Mencius's political principle emphasized
the significance of material needs much more explicitly than
that of Confucius.
He believed that the livelihood of the people should be well
regulated. Everyone should have enough to live on in bad
harvest years as well as in good ones. The basic economic
policy for enriching people is to make them work and refrain

from taxing them too highly. Life security is not only guaran-
teed by motivating people to work, but also by making them
properly distribute the consumption of their incomes.
Mencius says:
Let it be seen that their fields of grain and hemp are well
cultivated, and make the taxes on them light; - so the
people may be made rich. Let it be seen to that the people
use their resources of food seasonably, and expend their
wealth only on the prescribed ceremonies; - so their
wealth will be more than can be consumed .... When pulse
and grain are as abundant as water as fire, how shall the
people be other than virtuous?
Mencius opposed the oppressive taxation of the time. He
was a great advocate of the well-field system (Ching-t'ien) ,
which is fundamentally an economic system aimed at equi-
table distribution of land, according to the size and need of
individual families. In ancient China the land was divided in
the form of a well (ching) with nine squares of land in each
well. The shape of the field is similar to the Chinese word
ching. The system based on such land divisions is called the
well-field system. He writes:
A square Ii covers nine squares of land, which nine squares
contain nine hundred mu. The central square is the public
field, and eight families, each having its private hundred
mu, cultivate in common the public field. And not till the
public work is finished, may they presume to attend to
their private affairs.
Although families share the same amount of land, they may
grow different crops on their land. Specialization is taken to
be economically efficient. In addition, people should freely
exchange their products. Mencius states:
in the case of any single individual, whatever articles he
can require are ready to his hand, being produced by the
various handicraftsmen. If he must first make them for his
own use, this way of doing would keep the whole empire
running about upon the roads.
His economic reforms largely related to land tenure. He
Mencius (371-289 Be) 117
stressed that the first thing a government should do is to

carry out land division and demarcation:
the first thing towards a benevolent government must to
lay down the boundaries. If the boundaries be not defined
correctly, the division of the land into squares will not be
equal. And the produce available for salaries will not be
evenly distributed. On this account, oppressive rulers and
impure ministers are sure to neglect this defining of the
boundaries.
With proper defining of the boundaries, a benevolent ruler
can correctly divide and distribute the fields and thus lay the
foundation for operating his kingdom's economy with ease.
When the boundaries are defined correctly, the country
should produce men of a superior grade to rule as well as
'countrymen' who are the backbone of the economy:
If there were not men of a superior grade, there would be
none to rule the countrymen. If there were not country-
men, there would be none to support the men of superior
grade.
To set up clear measurement standards is to actualize
Confucius' doctrine of the rectification of names. Deception
happens if things or people of different qualities are forced
to appear equal in the social market. Mencius says:
I t is the nature of things to be of unequal quality .... If you
reduce them all to the same standard, that must throw the
empire into confusion. If large shoes and small shoes were
of the same price, who would make them? For people to
follow the doctrines of Xu [who holds that linen and silk of
the same length would be of the same price], would be for
them to lead one another on to practice deceit.
For Mencius, the virtuous leader should be well paid.
In summary, Mencius established an intimate interdepen-
dence between virtue, talent, effort, justice and national
wealth. He expressed it in the following way:
If men of virtue and ability be not confided in, a state will
become empty and void. Without the rules of propriety
and distinctions of right, the high and low will be thrown
into confusion. Without the great principles of government

and their various business, there will not be wealth suffi-
cient for the expenditure.
The operation of his economic system rests basically on
market mechanisms but features government intervention.
Government intervention acts to guarantee the people eco-
nomic security, to encourage economic production and to
improve the economic efficiency of the whole system. He is
strongly opposed to heavy taxation. In order to carry out his
benevolent economic policy, he advocated the well-field
system of farming and the abolition of any tax on commerce.
The implementation of these indigenous economic measures
makes Mencius significantly different from Confucius.
Mencius illustrated the operation of his social and economic
system as follows:
If a ruler give honour to men of talents and virtue and
employ the able, so that offices shall all be filled by indi-
viduals of distinction and mark; - then all the scholars of
the empire will be pleased, and wish to stand in his court.
If, in the market place of his capital, he levy a ground rent
on the shops but do not tax the. goods, or enforce the
proper regulations without levying a ground, - then all the
traders of the empire will be pleased, and wish to store
their goods in his market-place. If, at his frontier-passes,
there be an inspection of persons, but no taxes charged on
goods or other articles, then all the travellers of the empire
will be pleased, and wish to make their tours on his roads.
Ifhe require that the husbandmen give their mutual aid to
cultivate the public field, and erect no other taxes from them
- then all the husbandmen of the empire will be pleased,
and wish to plough in his fields. If from the occupiers of
the shops in his market-place he do not exact the fine of
the individual idler, or of the hamlet's quota of cloth, then
all the people of the empire will be pleased, and wish to
come and be his people. If a ruler can truly practise these
five things, then the people in the neighbouring kingdoms
will look up to him as a parent.
From these discussions on Mencius, I hope I have made
it clear why I interpret Confucianism in the light of modern
Mencius (371-289 Be) 119
dynamic economics. Modern economics also explains the

operation of economies using non-constant returns to scales
(Zhang, 1991, 1996, 1999). From the theoretical economic
point of view Confucian social organization theory too pro-
vides a way for society to organize itself effectively by
exploring 'return to scale economies'.
THE MOTION OF MIND AND JUSTIFYING

REVOLUTION
Men are seldom found to brave the general opinion of

their class, unless supported either by some principle
higher than regard for opinion, or by some strong body of
opinion elsewhere.
Mill (1848)
To Mencius, good social order is the outer manifestation of

spiritual and moral capacities innate to the individual human
being. In order to understand society:
It is of the greatest important to estimate the motion of the
mind.
His theory of mind has provided a main topic of Chinese
philosophy. For him, the motion of mind varies among dif-
ferent individuals and is an endogenous variable of social
evolution. Social dynamics are due to the motion of mind in
the sense that calamity and happiness are of men's own
making:
But now the princes take the advantage of the time when
throughout their kingdoms there is leisure and rest from
external troubles, to abandon themselves to pleasure and in-
dolent indifference; - they in fact seek for calamities for
themselves. Calamity and happiness in all cases are men's
own seeking. This is illustrated ... by the passage of Tai jia,
- 'When Heaven sends down calamities, it is still possible
to escape from them; when we occasion the calamities our-
selves, it is not possible any longer to live.'
The Chinese have traditionally interpreted China's past
as a series of dynastic cycles in which successive dynasties
repeated the same story: an heroic foundation, a period of

great power, a long decline, and then a final total collapse.
Within each dynastic cycle other matters, such as fiscal con-
ditions, administrative efficiency, and military power,
displayed parallel trends. The Chinese tradition believes
that this cultural phenomenon results from the fact that the
motion of the social mind displays a cyclical pattern. Thus
the civilization process is characterized by this pattern of
cyclical movement. A cycle starts with a transition from a so-
cially chaotic and economically depressed situation to one
of dynamic activity. This transition does not occur spontan-
eously but is the result of internal experiences or external
disturbances that force society to start a new process of
social, economic and cultural progress. Once a society gains
momentum for this development, its motion appears to be
linearly progressive. People's minds are devoted to work
and problems appear to be easily solvable. At the end of
such a dynasty there is a sense of alienation, an increase in
mental illness, violent crime, social disruption, and an in-
creased interest in religious cultism. Mencius' view of moral
cycles corresponds with Chinese dynastic history.
It is generally held that Mencius' political theory is more
progressive than that of Confucius. Confucius wanted to save
the weakened Chou. Mencius accepted its obvious collapse.
The relationship between father and son plays a special role
in Confucianism. A son is supposed to respect and serve his
parents. For Mencius this relationship does not mean that
the son should not, under any circumstances, criticize the
father. He says:
Where the parent's fault was great, not to have murmured
on account of it would have increased the want of natural
affection. Where the parent's fault was small, to have mur-
mured on account of it would have been to act like water
which frets and foams about a stone that interrupts its
course. To increase the want of natural affection would
have been unfilial, and to fret and foam in such a manner
would also have been unfilial.
Mencius advocated the doctrine of revolution. In Mencius'
theory, people are naturally equal and they are the most
important factor in government. If government does not
Mencius (371-289 Be) 121
behave benevolently, the people have the right to revolt. He

declared that when a sovereign ceases to bring about the
welfare of the people, it becomes the people's solemn duty
to rebel and replace him.
7 Hsiin Tzu (298-238 Be):
Human Nature is Evil
The web of our life IS of a mingled yarn, good and ill

together.
Shakespeare
Western thinkers have proposed various images to represent

the nature of man and the different forms of governments
which provide justice and ensure survival. For instance,
Hobbes (1588-1679) believed that human beings are by
nature free and self-interested. He advocated a principle
whereby all people, not just the rich and well born, have
equal rights to liberty. Everyone is entitled to as much liberty
in gratifying his desires as he is willing to allow others in grat-
ifying theirs. But Hobbes believed that because of the
conflicts of self-interest among individuals, the state of
nature is a state of war. According to Hobbes, since human
beings are rational and self-interested, to maintain peace and
ensure survival, each individual would agree to sacrifice his
freedom and be content to follow the laws of a sovereign
whose main responsibility would be to maintain order.
Although he anticipated many of the major principles that
went into the founding of the American republic, Hobbes
was not a believer in democracy and did not place a high
value on personal liberty. For him a good government exists
to provide efficiency, law, order and the preservation of the
peace. He believed in only two alternatives for human
society: anarchy or absolute monarchy. To his mind, monar-
chy was the best form of government. For discussions on his
life and thought, and studies on his thought, see for instance,
Peters (1956) and Brown (1965).
It was John Locke (1632-1704) upon whose ideas the
founding fathers of the United States drew directly as they
formulated the Declaration of Independence and the
Constitution. He considered the state of people's nature as
122
Hsun Tzu (298-238 Be) 123
being in 'a State also of Equality, where all the Power and
Jurisdiction is reciprocal, no one having more than another.'
(Locke, 1689). He believed that certain laws govern human
behaviour at all times, whether or not a human government
capable of enforcing them exists. In the state of nature, ac-
cording to Locke, every person has equal rights relative to
every other person. Thus, men's natural reasoning capacity
would not allow them to slip into the Hobbesian state of
nature. He sought to preserve the natural state in society
itself through a strictly limited government where people
would enter into a social contract and consent to the rule of
law. Sovereignty would rest with the people and not with the
king. He did not accept the Hobbesian choice between
despotism and anarchy. Another view is given by Rousseau
(1721-1778). He argued that man is by nature good; society
is the cause of corruption and vice. He also held that people
are by nature self-interested. But self-interest is accompanied
by a natural compassion that prevents people from hurting
each other. The state of nature for Rousseau is not a state of
war but one of robust difference. There are other opinions
too. For instance, Ortega (1883-1955) says: 'Man, in a word,
has no nature; what he has is - history. Expressed differently:
what nature is to things, history, res gestate, is to man.'
(Ortega, 1975).
Man constitutes the basic element of society. This basic
element is born to be social and political. For anyone who is
seriously concerned with society and its operation, it is neces-
sary to know man's nature and how stable the manifestations
of this nature are. Each man is himself a spiritually alive
complex system. The properties of those living complexities
determine the possible structures of society. For instance, if
man is naturally self-interested and evil, then one could
hardly imagine that a 'natural society' consisting of a large
number of people without any law or moral rules will lead to
anything other than brutal chaos. It is essential to under-
stand man if one wants to understand society because it is
only after one makes a thorough investigation into what man
is that one can look at society as a whole. Many thinkers in
China as well as in the West demonstrate the intimate rela-
tions that exist between their understanding of human
nature and their ideals of a just society. It is notable that even
if two thinkers have different viewpoints about the nature of

man, their perceived structures of a just society may be
similar. For instance, both Mencius and Hsiln Tzu are called
Confucian, even though they held opposite views about the
nature of man. The reason of classifying them into the same
school may be that they have similar ideals about socio-
economic organizations.
HSUN TZU AND SOCIAL ENVIRONMENT
Wisdom and genius ... are rooted not in the abstract and
discursive, but in the perceptive faculty.
Schopenhauer (1958 II: 75)
Confucius, Mencius, and Hsiln Tzu are the three thinkers to

whom ancient China owes most for their elaboration and
defence of Confucian philosophy (Fung, 1948, 1958).
Confucius wrote no account of his teachings. The Analects are
a series of his brief sayings written down by his disciples. The
substance of Mencius' writings is conservation of the
Confucian tradition and is not explicitly connected other-
wise. The book that is connected to his name consists of
anecdotes and a series of dialogues. But Hsiln Tzu wrote in
a logical style so that there is a continuous development of a
theme through a whole chapter instead of discrete scattered
sayings. He wrote his works in the form of unitary discus-
sions with a single theme running through each of them. He
was thus a master of the essentials of composition and the
most logical of all the ancient Confucianists.
Of his life we know almost nothing. Even the dates of his
birth and death are unknown. The date of his appointment
to Lan-ling (in modern Shantung), 255 Be, is the only defi-
nite date we have. Hsiln Tzu (c. 298-238 Be) was a native of
Chao (modern Shansi). At the age of 50 he travelled to Ch'i
(southeast of Chao, in modern Shantung), a place scholars
are known to have congregated at the time. Later, he went
to Ch'u, where he became a magistrate. He then lost his po-
sition but remained there and taught until he died. It is
generally agreed among scholars that he flourished in the
six decades between 298 and 238 Be. He lived at the end of
Hsun Tzu (298-238 Be) 125
the Warring States period when the struggle for supremacy

among the seven major states reached its conclusion. The
political reforms carried out in almost all the states resulted
in an increasing centralization of power and the develop-
ment of bureaucratic government. It was a time of great
political instability and public morality was at its lowest ebb;
but it was also a time where there was unprecedented
freedom of thought. Contemporary philosophers became
fashionable, overshadowing the sages of old, and then
quickly went out of fashion again. Freedom to travel enabled
teachers of philosophy to go from the service of one count
to another until they found a prince responsive to their
ideas.
Hsiin Tzu showed an interest in many subjects, including
theory of government, psychology, the accurate definition of
words, education, and a host of practical problems in the
field of government, such as free trade, taxation, agriculture,
preservation of natural resources, and the proper seasons for
fishing and forestry. He exerted a special attraction on the
Chinese because of his naturalism, realism, emphasis on
logic, belief in progress, emphasis on law, and criticisms of
the various philosophical schools (Chan, 1973). He greatly
advanced the subjects of psychology and logic and his essay
on terminology is one of the few Chinese treatises on the
subject. As has been said, the term 'Rectification of Names'
was originated by Confucius and its application was original-
ly limited to ethics. Hsiin Tzu's own theory, however, was
closely associated with the logical principles of theoretical
knowledge. He said:
Names were made in order to denominate actualities - on
the one hand so as to distinguish the superior from the
inferior, and, on the other hand, to discern similarities and
differences.
and this reflects his belief in the origins and functions of lan-
guage. His naturalistic interpretation of Heaven was close to
Taoism. His doctrine on state control was claimed to have
contributed to the authoritarianism that resulted in the dic-
tatorship of the Ch'in (221-206 Be). It is a matter of fact that
two of the ministers of the Ch'in, Han Fei and Li Ssu, were
his pupils. Hsiin Tzu had been largely neglected since the
end of the Han (AD 220), Mencius having become much

more important. He did not enjoy great favour either among
later Confucians.
Hsiin Tzu lived in an age when a hundred schools of
thought developed in what was to be a fantastic heterodoxy
that threatened to undermine orthodox Confucianism. He
was conversant with all the thought of his day. He studied
the teachings of all the different philosophers and had the
benefit of all the great variety of thinkers and teachers of his
day. His teachings not only expressed the ideas of Confucius
but also incorporated the best thought of other schools. He
summarized for posterity the intellectual achievement of the
ancients. He was very critical of other philosophers, to the
point where he was often criticized for being unfair to others.
Of Hsiin Tzu it can be said that he developed Confucianism
in another direction. His logical mind grasped Confucian
philosophy in a systematic manner and he set to work to
express and defend Confucian teaching in its wholeness as
none before him had done. He took human nature for what
it was and is known in the history of Chinese thought as the
advocate of the doctrine that human nature is evil. Much of
his thinking involved a raising of the Confucian tradition to
a new plane of clarity. He greatly developed the theory of the
role of Ii in education, something merely suggested by
Confucius. He had little faith in humanity and believed that
people must be guided by a firm hand. The starting point for
his ethical discussions was the imbalance between goods
available and human desires. The theme with which Hsiin
Tzu concerned himself was how to achieve a balance of
goods which are in short supply and human desires which
are extremely numerous, without demanding asceticism.
HUMAN NATURE IS EVIL
To be, or not to be, that is the question.

Shakespeare (Hamlet)
The previous chapter showed how the orthodox Confucian

tradition holds that human nature is originally good.
Confucius' own view on original human nature, however,
Hsiin Tzu (298-238 Be) 127
was not altogether clear. Mencius and Hsiin Tzu, who fol-
lowed, have generally been considered to be the two main
(and separate) streams of Confucianism in ancient China.
The bifurcation occurred where Confucianism itself diverges
towards tendencies of idealism or naturalism. Mencius
tended towards the idealistic form and Hsiin Tzu to the nat-
uralistic. Hsiin Tzu was critical of Mencius. In contrast to
Mencius' view that man is naturally inclined to goodness,
Hsiin Tzu's thought system rests on the assumption that
man's nature is basically evil. He said:
Mencius states that man is capable of learning because his
nature is good, but I say that this is wrong. It indicates that
he has not really understood man's nature nor distin-
guished properly between the basic nature and conscious
activity.
Hsiin Tzu set forth the most complete and well-ordered
philosophical system of his day on the basis of the assump-
tion that the nature of man is originally evil. For Hsiin Tzu,
this nature is given by Heaven, that is 'naturally'. It should
be noted that the word Heaven (T'ien) is used differently in
different philosophies. Hsiin Tzu's concept is closer to the
Tao of Taoism than to the Heaven of Mencius. Mencius'
Heaven is purposeful and is the source and ultimate con-
troller of man's destiny; but Hsiin Tzu's Heaven is purely
natural (Chan, 1973). Hsiin Tzu argued (Chan,
1973: 116-17):
Nature (T'ien, Heaven) operates with constant regularity.
It does not exist for the sake of (sage-emperor) Yao nor
does it cease to exist because of (wicked king) Chieh.
Respond to it with peace and order, and good fortune will
result. Respond to it with disorder, and disaster will follow.
Hsiin Tzu believed in the naturalist view of Taoism with
regard to Heaven and the rational view of Confucianism with
regard to man. He believed that it is natural that heaven has
its seasons, earth has its wealth, and man should have his
government.
Mencius considered that aspect of man which cannot be
learned or acquired by effort to be 'nature' and that aspect of
man which is acquired by learning and brought to completion
by effort to be 'conscious activity'. Man's emotional nature

produces the eye's fondness for beautiful forms, the ear's
fondness for beautiful sounds, the mouth's fondness for deli-
cious flavours, the mind's fondness for profit, and the body's
fondness for pleasure and ease. Hsiin Tzu provided different
arguments to lay the basis for his assumption that human
nature is evil. He said (Chan, 1973:129):
By nature man departs from his primitive character and
capacity as soon as he is born, and he is bound to destroy
it. From this point of view, it is clear that man's nature is
evil.
He believed that man is naturally evil because he has unlimit-
ed desires. He argued that if man has little, he desires
abundance; if he is socially low, he wants to climb higher; if
he earns little, he wants to be more highly paid. He argued
that since man is born with feelings of envy and hate and he
tends to indulge these, he tends to be led into violence and
crime; and thus all sense of loyalty and good faith will disap-
pear. Since man is born with the desires of the eyes and ears,
with a fondness for beautiful sights and sounds, and he tends
to indulge these, he tends to be led into licence and wanton-
ness; and so both ritual principles and correct forms will be
lost. He believed that if man follows his nature and indulges
his emotions, he will inevitably become involved in wrangling
and strife, will violate the forms and rules of society, and will
end as a criminal. He viewed the principle of righteousness as
an acquired and cultivated virtue. He argued that if men are
not subjected to the civilizing influence of teachers and laws
and if they are allowed to follow their nature and feelings,
human society will inevitably be plagued by strife, rapacity,
rebellion, disorder and violence. He said:
Man's nature is evil; goodness is the result of conscious
activity.
Hsiin Tzu holds that nature runs its own course without the
need of will; it is up to human beings to harness nature to
their use. As the vessel is the product of the artisan's activity
and not the original product of man's nature, propriety and
righteousness, laws and systems are not given by (original)
human nature, but created by the activity of the sages. He
Hsiin Tzu (298-238 Be) 129
was not a pessimist. He believed that man is perfectible. Any

individual was able to develop his character so that he might
become equal to the greatest and most virtuous of men, the
sages. He was in favour of Yii who was a man of great prac-
tical achievements, especially famed for diverting water into
nine channels and thus preventing a flood. He argued that
the reason that Yii was a sage-king was that he practised
humanity and righteousness, following laws and the correct
principles. He further argued that the ways of the sages can
be known and practised. Every man in the street possesses
the faculty to know them and the capacity to practise them.
It is in this sense that every man can be Vii.
DESIRES, RITES AND LAW
Life presents itself as a continual deception, in small

matters as well as in great.
Schopenhauer (195811:573)
There is one common feature of Confucianism, that is each

Confucian school emphasizes the necessity of examining
things as a whole. On the basis of this vision, Hsiin Tzu
argued that it is necessary to look for truth (Tao) as a whole.
According to his interpretation, the concept of Tao has multi-
ple faces:
From the point of view of utility, the Tao is nothing but to

seek profit .... From the point of view of words, the Tao is
nothing but argumentation. From the point of view of
heaven, the Tao is nothing but laissez-faire.
He argued that those with partial knowledge perceive only

one aspect of the Tao, but neglect its totality. He strongly
criticized ancient philosophers including Shen Tzu who re-
jected subjectivism in favour of objective knowledge; Lao
Tzu because he emphasized bending rather than expanding;
Mo Tzu because he advocated equality or universal love; and
Sung Tzu because he advocated the prohibition of war and
the harbouring of few desires. He said (Chan, 1973: 123):
If there is only insight on equality and not on inequality,

then governmental measures and orders cannot be carried
out. If there is only insight on few desires and not on
many, then the multitude cannot be transformed.
Hsiin Tzu's way of perceiving Tao as a whole is displayed in
his argument about the role of human desires in personal life
as well as in society. He held that the desire to exchange
one's wages for desirable things is one of the basic motives
for people to work. He argued that man naturally wants to
eat good food, to wear good clothes, to travel and live in
comfortable carriages and houses. Besides these things, man
naturally wants the riches of accumulated surplus. But, year
after year, and generation after generation, man has no idea
about what is enough. It is a part of man's nature that his
desires know no limits:
man still does not know what 'enough' is; this is the char-
acteristic of human nature.
But he did not devalue the importance of desires and emo-
tions on individual life as well as on society. He held that the
means of dealing with desires is not to eliminate them; nor is
it to diminish them; it is rather to guide them into proper
channels. He criticized doctrines of good conduct which
depend upon the elimination of desires. He argued that
these doctrines had no way of guiding the desires; instead,
every doctrine of good conduct which expects the lessening
of desires had no way of curbing those desires and, further,
was hampered by the great number of those desires.
Hsiin Tzu maintained that since individual desires are
always greater than the resources available, these resources
must be distributed so that each member of society is able to
enjoy an adequate share. He argued that man keeps pigs,
oxen and sheep; but he does not dare to eat meat and drink
wine. He has plenty of money and stores of grain, but he
does not dare to wear silk. He has deposits of the most valu-
able things, but he does not dare to travel by horse and
carriage. This is not because man does not desire to consume
but because he wants to consume in the future. This is
because man is capable of taking the long view and cares for
the future, lest nothing will succeed hereafter. Therefore, he
Hsun Tzu (298-238 Be) 131
curbs expenditure, controls wants, and accumulates wealth

for the succession. Hsiin Tzu wanted to avoid exhausting the
supply of things and avoid the frustration of any man's
desires because of an insufficiency of things. To do this,
desires and the things that satisfy them have to be in balance.
To achieve this balance, man should control himself by ob-
serving the rules of proper conduct and the dictates of moral
sense, and engage in proper long-term economic planning.
Hsiin Tzu said:
How good it is that he has a long thought and cares for the
future in regard to himself. The short-sighted people who
are careless for their living do not know even this .... They
exhaust quickly all the means. This is the reason they
cannot escape from cold and hunger, and become beggars
or victims dying in the ditches.
The core of his thought system is how desires and supply
should support one another and should continue to exist.
Hsiin Tzu held that the basic purpose of society is to satisfy
human desires. There are different ways to do this. For in-
stance, if a ruler desires safety, the best thing for him to do is
to govern fairly and to love the people. If a ruler desires
glory, the best thing is to honour ritual and treat men of
breeding with respect. If a ruler wants to get a good reputa-
tion, it is best for him to promote the worthy. If a ruler
desires merit, it is the best for him to employ men of ability.
Thus, proper ways exist to satisfy each desire. Various types
of moral behaviour are supposed to satisfy various desires.
This is a logical consequence of Hsiin Tzu's assumption that
human nature is evil and his aim at constructing a moral and
harmonious society. Hsiin Tzu was against the idea that
human emotions are valueless and thus should be repressed.
His political theory stems from his concern about the balance
of the mutual involvement of things (in short supply) and
desires. Hsiin Tzu believed that social order under political
leadership was necessary for achieving this. Based on this
vision, he called for a reconstruction of the moral greatness
of antiquity in terms of the present.
He highly esteemed the rules of proper conduct (li) in the
teaching of Confucius. Individual and social ideals are
judged by whether or not they act according to li. In
outlining Hsiin Tzu's governing theory, I emphasized the

rites for social order. He based the necessity of the rites
upon his assumption that man has unlimited desires. It is
from man's unsatisfied wants that the need for rites come
from. He argued that when man wants something and
cannot get it, he will make efforts to acquire it using all pos-
sible methods. If people acquire things with neither moral
sense nor under social control, they will fight with each
other. Conflicts among people will result in violence and dis-
order in a society. In order to prevent society from collapse
and establish social distinctions, people establish rites and
justice. The rites and rules of justice are established to
protect society, to satisfy people's wants and to supply their
demands. The rites are established to prevent people's
wants from exhausting the supply of commodities and so
that the commodities themselves are never allowed to fail
the wants. In other words, the rites exist to maintain 'market
equilibrium' of demand and supply of goods and services.
Moreover, Hsiin Tzu held that the function of ceremony is
not only to serve to determine proper limits and thus re-
strain desires, but also to beautify and refine human
emotions. He argued that rites are made in order to satisfy
wants. For instance, sculptures, embroideries and the dif-
ferent colours satisfy the eyes. The bell, flute, and drum
satisfy the ears. A pleasant room and magnificent buildings
satisfy the body. Thus, rites are necessary for satisfaction.
Hsiin Tzu held that man's desires are regulated so as to
assume the material welfare of society as a whole. Although
he made attempts to eliminate superstition from early
Chinese thought, Hsiin Tzu actually gave mourning and
sacrificial rites new interpretations. He considered trad-
itional rites to be the expression of man's affection and love
for the dead. He derided the demons of mythology; but he
did not seek to suppress or transform popularly accepted
customs and ceremonies. For him, ceremonial and sacrifi-
cial practices have a religious purpose, although they are
simply ornamental symbols.
Another important aspect of Hsiin Tzu's philosophy is its
emphasis on obeying the law. Hsiin Tzu often discussed
rules of propriety and laws side by side. In contrast to
Mencius who advocated propriety as inner control, Hsiin
Hsun Tzu (298-238 Be) 133
Tzu advocated it for external control. He argued that a

liberal man should not only obey the law but also understand
the significance of the law:
A man who has no laws at all is lost and guideless. A man
who has laws but does not understand their meaning is
timid and inconsistent. Only if a man abides by laws and at
the same time comprehends their wider significance and
applicability can he become truly liberal and compassionate.
This also hints at why the Chinese dictatorial rulers disliked
Hsiin Tzu and preferred Mencius as they might (much more
easily) (mis-apply) Mencius' humanistic doctrines to create
situations for their own benefit.
LEARNING AND SELF-IMPROVEMENT
Teach a man to read and write, and you have put into his
hands the great keys to the wisdom box. But it is quite
another thing to open the box.
Huxley (1868)
Although Hsiin Tzu assumed that man's nature is evil, this

does not imply that he did not differentiate between men.
He classifies people in a way similar to Confucius. With
regard to the gentleman and the inferior man, he held that
the gentleman has a constant way of virtue and keeps fixed
principles in his heart but that the small man is only inter-
ested in calculating profit. The gentleman relies on achieving
desirable things by his own efforts and self-cultivation rather
than expecting desirable things to happen due to external
fortunes. Due to his own self-examination and efforts, the
gentleman makes progress every day. The small man on the
other hand neglects to cultivate what is in himself and desires
what comes from the external environment, so he retro-
gresses every day. Hsiin Tzu strongly believed that man
progresses by making conscious efforts and by sincerely ex-
amining his own heart. He advocated self-improvement, the
pursuit of learning, the avoidance of obsession, and full at-
tention to ritual in all areas of life. He said:
Let any man on the street addict himself to the art oflearn-
ing with all his heart and the entire bent of his will,
thinking, and closely examining; let him do this day after
day, through a long space of time, accumulate what is
good, and he will penetrate as far as a spiritual intelli-
gence, and he will become a triumvir with Heaven and
Earth. It follows that the characters of the sages were what
any man may reach by accumulation.
Hsiin Tzu stressed wisdom. For him, wisdom lies in doing
what is proper and useful. Since he assumed the innate evil
nature of man, in order to realize humanity in society he has
to rely on wisdom rather than an idealistic human quality
like humanity. Furthermore, since human nature is evil, it is
quite dangerous to allow its free development. Hsiin Tzu
held that man's goodness is the result of activity, education
and societal environment. He argued that if people follow
their nature and their feelings, this will inevitably result in
strife and rapacity, leading to rebellion and disorder, and
finally ending in violence. Unlike Mencius who improved the
individual aspect of Confucian theory, Hsiin Tzu improved
the social aspect of Confucian theory. He emphasized the im-
portance of environmental influences in the development of
the individual, and regarded good as coming only from
teaching the rules of proper conduct.
For Hsiin Tzu, the aim of education is first to illustrate
illustrious virtue, derived from nature and set down by the
ancient sages as social and individual rules of proper
conduct, and second to refine the people with those rules
until the highest excellence is reached. In his doctrines,
Mencius specially emphasized the role of teachers. He held
that teachers provide the civilizing influence. He emphasized
that education and moral training should both come from
teachers. He argued that in order to correct human nature
society must depend on teachers and laws to achieve this cor-
rectness as well as propriety and righteousness. He believed
in learning directly from the learned:
in learning nothing is more profitable than to associate
with those who are learned, and of the roads to learning,
none is quicker than to love such men. Second only to this
is to honor ritual.
Hsun Tzu (298-238 Be) 135
Although Hsiin Tzu's doctrine starts with a relatively dark

assumption, it ends with a bright possibility for improvement
through study and moral training. Since not everyone is
capable of establishing the norms or correct mode of society,
he assigns this task to the sages. For him, the sages are like
all other men with regard to their basic nature and desires;
but they have learned to employ their minds in such a way as
to attain moral understanding and insight. On the basis of
this understanding they are able to construct the ethical
relationships that govern the hierarchical order of society.
When the sage becomes a teacher and ruler, he may set
about ordering the state on the basis of proper moral prin-
ciples and ensuring peace and prosperity.
SOCIETY AND GOVERNMENT
The body politics, like the human body, begins to die from
its birth, and bears in itself the causes of its destruction.
For Hsiin Tzu, man is naturally social. Men are born to or-
ganize themselves into a society. But this society has a natural
hierarchical property. He argued that if society is organized
without hierarchical divisions, it is socially unstable because
there will be quarrelling over such things as the distribution
of incomes, wealth or decision-making powers. Where there
is quarrelling, society will be in disorder. Disorder in turn,
leads to a situation where men are too weak to conquer their
fellows. Hsiin Tzu believed that without propriety and right-
eousness, there would be rebellion, disorder, and chaos. In
order to actualize propriety and righteousness, he empha-
sized the importance of social organization in which
everyone partook and enjoyed its benefits. He argued that if
people live together and do nor serve one another, they will
suffer from poverty. If people live together, but without
social distinctions, there will be strife. He believed that in
order to prevent people suffering poverty, there is nothing
like making social distinctions clear and forming a social or-
ganization. He believed that society is a organization of
effective division of labour for economic production:
The reason that men are able to harmonize their actions

with the order of the seasons, utilize all things, and bring
universal profit to the world is simply this: they have estab-
lished hierarchical divisions and possess a sense of duty.
Like Mencius, he advocated that natural equality was one
thing but it should nevertheless be manifested in social in-
equality for the common good. He held that if people are
ranked equally there will not be enough goods to go around.
If power is equally distributed, there will be a lack of unity.
If the masses are equal in their economic and social condi-
tions, it will be impossible to employ them.
In his hierarchical system, the kingly government is the
key element for maintaining a stable and happy society. His
proposition for an ideal ruler and administration was similar
to that of Mencius but he had less patience than Mencius
with the feudal system and held that hereditary titles should
be abolished and men promoted and demoted in the social
hierarchy solely on the basis of merit. He began his chapter
on kingly government by stating:
Do not regard seniority but advance the worthy and able;
dismiss the incompetent and incapable without delay; ...
develop the common people without waiting to compel
them by laws .... Yet, although a man be the descendant of
a king, duke, prefect, or office, if he does not observe the
rules of proper conduct and justice, he must be relegated
to the common ranks.
He was also concerned with the creation of a successful ruler
who would possess neither the virtue nor the popular action
of a true king, but who would be able to ensure well-being
and stability for his subjects.
Hsiin Tzu's conclusions about human action and the insti-
tutions of a harmonious society are in fact broadly similar to
those of Confucius and Mencius.
CONTROLLING NATURE
To live in harmony, i.e., according to one and the same
principle and in harmony with oneself.
Zeno (490-430 Be)
Hsun Tzu (298-238 Be) 137
Hsiin Tzu was more concerned with man as part of a social

order than with cosmological speculations. He rejected spec-
ulation unless it had a practical purpose in human life. He
argued that people should reject all beliefs and practices that
seek to put man in contact with the supernatural or to endow
him with supernatural powers. Since the mind of man itself
is the source of all moral order and human perfection, it is
pointless to venture beyond the human realm. For Hsiin
Tzu, Heaven is not a moral principle or a spiritual entity, but
the unvarying law of natural phenomena. It is known that
the prevalent idea about relations between man and nature
in Confucianism and Taoism is that man and nature should
be in harmony. But Hsiin Tzu argued that man should over-
come and control nature. He held that instead of regarding
Heaven as beyond reach and simply admiring it, one should
foster it as a concrete entity and seek to regulate it. It was not
enough to merely obey Heaven (or fate); one should make
conscious efforts to control it. One should not merely admire
how things come into being; one should also do something to
bring them to full development. For him, to neglect the role
of human effort and merely admire Heaven at a distance is
to miss the true nature of things.
To his mind human society is not simply the passive
working out of divine reason, a kind of clock mechanism that
has been designed to function by some external force.
History is not simply working its way towards some pre-
ordained end point. Hsiin Tzu argued that it is better to
accumulate things and shape them than it is to simply expect
something from nature. It is not natural fate but our own
efforts that should determine our life paths. It is less desir-
able to blindly follow and praise nature than to control what
nature has given and employ it according to the proper way.
Time flows and no-one can stop it. It is less desirable to
anticipate time and wait for it than it is to seize it and use it
properly. He said:
To expect the things grown by nature, is not so good as to
have the thing manufactured by man. Therefore, to set
aside the power of man and to depend on the power of
nature is to lose the nature of everything.
Hsiin Tzu's idea of controlling nature did not lead to the
development of the natural sciences, however: the tradition-

al Chinese mind was mainly concerned with man and society.
I conclude the chapter on Hsiin Tzu by briefly comparing
his thought with Mencius'. Mencius, of course, held that
human nature was originally good but needed constant cul-
tivation in order to keep it from degenerating into evil. He
advocated that moral instruction should be the source of
political and social development. Hsiin Tzu felt that
Mencius' view differed from the true Confucian position and
held instead that human nature tends to evil of its own
accord but can be made good through cultivation. He
argued that it is necessary to control it by rule of law and by
the rules of propriety (li). Mencius held that certain innate
tendencies lead to the practice of certain moral acts and that
the evaluating mind directs these tendencies properly. Hsiin
Tzu would not hold that any moral act is the direct manifes-
tation of an innate tendency. Mencius recognized the
importance of the environment and emphasized its function
in the cultivation of one's nature. For Hsiin Tzu the ultimate
objective of cultivation was not merely to improve human
nature, but also to counteract its evil impulse. Cultivation
must instil man with goodness in order to transform his evil
nature. But for Mencius cultivation exists to bring out the
good that is in man, and not to put the good into man who
has been rectified of his evil nature. Neither followed their
master strictly, for Confucius argued that all men are alike in
nature but become different through practice. Irrespective
of their dramatically different assumptions about human
nature, both Mencius and Hsiin Tzu believed in the per-
fectibility of all men; in benevolence and righteousness as
supreme virtues; in kingly government; and in education.
Both Mencius and Hsiin Tzu revered Confucius as their
master and both imitated him. Both subscribed to and en-
hanced the sage-ideal and the great virtues attached to the
superior man. They carried on the Confucian tradition and
became its most prominent exponents and defenders. In
their main conclusions about cultivation and culture they
were in agreement; they differed mainly in the theory of
their respective metaphysical foundations.
Hsiin Tzu had a logical mind and profound scholarship.
He built up a coherent system on the basis of an analysis both
Hsun Tzu (298-238 Be) 139
of human nature and of history. Hsun Tzu exerted greater

influence throughout the Han period (206 Be-AD 220) than
did Mencius. But after the Han his influence was greatly
reduced. Mencius was then regarded as providing the direct
line of transmission from Confucius and Hsun Tzu's work
was not classified as a Confucian Classic. This difference in
popularity is perhaps due to the fact that in comparison to
Hsun Tzu's tough-minded doctrine, Mencius' own (mild-
minded) doctrine provided more happiness and more
benefits for the powerful and for official intellectuals. A
theoretical system that is based on the assumption that
human nature is evil is unlikely to be cherished in the long
term.
8 Chu Hsi (1130-1200):
Chinese Rationalism and
the Great Synthesis
[P]ure reason is the faculty which contains the principles of
cognizing anything absolutely apriori.
Kant (1781:15)
Immanuel Kant (1724-1804) is generally considered to be

the most profound of all the modern philosophers. Chu Hsi
(1130-1200) is generally considered to be the most profound
philosopher that China has produced since Confucius, Lao
Tzu, Mencius, Hsiin Tzu and Chung Tzu. Like Kant, Chu
Hsi is also one of the most difficult to understand, mainly
due to the penetration and complexity of his thought. Like
Kant, he not only firmly believed in reasoning but also recog-
nized the important role of emotions in human life. In
contrast to Kant, he actively took part in politics. Unlike
Kant, who had many profound philosophical ideas about art
and music, Chu Hsi actually attained high achievements in
poetry and literature. Some of his poems are perhaps among
the best written of any of the great world philosophers.
As a student in 18th-century East Prussia, Kant was
steeped in the tradition of rationalism, particularly as it had
been developed by Leibniz (1646-1716). But Kant did not
fully follow Leibniz. David Hume's critique of rationalism
convinced him that the rationalists' assumptions about our
knowledge of the nature of reality are unwarranted.
However, Kant did not accept Hume's belief that all our
ideas are derived originally from sense impressions and that
since our beliefs are based not on reason but imagination,
they cannot be rationally justified. Kant believed that the
truth must lie between Hume's total scepticism and trad-
itional rationalism (Reiss, 1991). Kant held that although all
knowledge begins with experience, it does not all arise out
of experience. Our experience of an orderly world of objects
140
Chu Hsi (1130-1200) 141
results from the cooperation of two faculties - our senses and

our minds. Our senses provide us with the content of the
objective world - colours, smells, and so on. The mind is
conceived of as an activity rather than as a substance. When
the mind receives the input of the senses, it organizes this
'raw data' into coherent structures in a unified whole. The
result of the mind's activity and that of the senses working
together is the coherent world we experience. The world we
know is a phenomenal world; we have no knowledge of
things-in-themselves.
The key concept in Kant's ethics is duty. Faced with pos-
sible conflicts between what reason tells us to do and what
our desires urge us to do, Kant argued that to act morally is
to act rationally. There are similarities between Kant and
Chu Hsi. As discussed, Kant was strongly influenced by
Leibniz (in particular, through Leibniz's pupil, Christian
Wollf, 1679-1754). It is well known that Leibniz greatly
admired the Neo-Confucianism developed by Chu Hsi.
Although in my investigation I did not find that the con-
nection between Kant and Chu Hsi - with Leibniz (and
Woll£) as a bridge - implied any direct impact of Chu Hsi on
Kant, it may help us to identify some common patterns of
'thought styles' or 'patterns of perceiving the world' among
philosophers of different cultures.
CHU HSI'S LIFE AND SOCIAL ENVIRONMENT
Pure reason ... collects all its cognitions into one system.
Kant (1781:211)
Chu Hsi (Chu Yuan-hui) was the most influential Chinese

philosopher and the most voluminous writer of the last 1000
years (Fung, 1948; Chang, 1963; Chan, 1973). He was born in
the modern province of Fukien, in the Southern Sung
Dynasty in 1130. He lived in an era when China was under
attack by invasions from the north. The Sung government was
both feeble and inefficient. For several years Chu Hsi studied
under his father. In 1154-57 he was a district record-keeper
and from 1158 he studied under Li Tung (1088-1163) who
continued the tradition of the Neo-Confucianism of Ch'eng
Hao and Ch'eng I. From 1163 to 1178, he devoted his time to

scholarship. He then spent nine years in public service. Chu
Hsi revived the intellectual centre at White Deer Grotto in the
present Kiangsi Province and many prominent scholars of the
day attended his lectures. His official life was both intermit-
tent and turbulent. He met with and communicated with the
most prominent scholars of the day. He was a man with a wide
variety of interests, vast knowledge and an immense capacity
for hard work.
He was a capable and vigorous official. He performed
effectively in the positions he occupied and displayed
neither a passive yielding to autocratic power nor an aban-
donment of the struggle for social reforms. He recognized
that it was necessary to come to terms with an unpromising
historical situation and certain inherent human limitations.
Chu Hsi opposed the continuing tendency towards bureau-
cratization in the form of new laws, institutional reform, and
further intervention of the state in the economy. He was
critical of the incompetence of government officials. Because
of these he was demoted, punished, or fired several times
during his government employment. In 1196 his teachings
were prohibited. Thus, his official life was not successful.
But his academic achievement and educational contribution
were nevertheless great. His philosophy (more accurately,
the Ch / eng-Chu School of Principle) dominated the intel-
lectual life of the Southern Sung period (1127-1279) and
the Yiing period (1271-1368). In the Ming period
(1318-1644) his position remained unchallenged until the
idealism of Wang Yang-ming (1472-1529) became the
leading philosophy. Even during the 15th and 16th cen-
turies when Wang was influential, Chu Hsi's rationalism did
not entirely disappear.
Next to Confucius, Mencius, Lao Tzu and Hiian Tzu, Chu
Hsi and Wang Yang-ming exercised the greatest impact on
Chinese thought prior to the beginning of this century. The
philosophies of Chu Hsi and Wang Yang-ming are termed
Neo-Confucianism. They broadened the horizon of the
Confucian ethical and political doctrine to include cosmol-
ogy and metaphysics (Fung, 1948; Chang, 1963). They were
much influenced by Buddhism and Taoism. Many issues,
such as the nature and principle of man and things, the
Chu Hsi (1130-1200) 143
problems of material forces (ch'i), yin and yang, t 'ai-chi (Great

Ultimate), being and non-being, substance and function,
and the unity of nature and man, which Neo-Confucianists
were concerned with, were not discussed by Confucius.
They diverged in many ways from the teachings of
Confucius. Neo-Confucianism has two main schools: ration-
alism (the li hsueh or principle study) and idealism (hsin hsueh
or mind-study). The philosophy of Ch'eng I and Chu Hsi
is rationalistic, while that of Lu Hsiang-shan and Wang
Yang-ming is idealistic (Chan, 1973). Thus, they differ
widely in ideology and methodology.
Chu Hsi was a leading rationalist. His philosophical system
is a great synthesis of his own creative ideas and the
Confucian writings. He developed his own theoretical system
which incorporated the ideas of different schools as its con-
stituent parts. He synthesized the ideas of his predecessors
into a comprehensive system of thought, metaphysical as well
as ethical. His synthesis provides a comprehensive and con-
sistent explanation of traditional Confucian ideas such as
Confucius' concept of benevolence (jen) , Mencius' doctrines
of benevolence and righteousness, the idea of the investiga-
tion in The Great Learning, the doctrine of sincerity in The
Doctrine of the Mean, the yin yang doctrine, the Five Agents
(water, five, wood, metal, earth) doctrine, and the important
ideas of the Neo-Confucianists of early Sung (960-1279), as
well as some ideas from Taoism and Buddhism, within a
single framework (Chan, 1973).
Chu Hsi interpreted the Confucian classics either wholly or
partly at variance with those put forth by the scholars of the
Han period. One of his important contributions to the devel-
opment of Confucianism was that he selected and grouped
the Analects and the Book of Mencius, together with the Great
Learning and the Doctrine of the Mean (both of which are chap-
ters of the Book of Rites), as the Four Books. He wrote
commentaries on them and re-interpreted them in his own
terms. His commentaries on the Four Books show how
Confucius, Mencius and the other sages could be brought into
the orbit of his integrative system. The work on the Four Books
has proved his most influential. The Four Books exercised
great influence on Chinese life and thought. In 1313 his inter-
pretations of the Confucian Classics were declared official
doctrine and in 1415 the great collections of commentaries on

the Four Books and Five Classics were made the basis for the
civil service examinations. His commentaries on the Four
Books and other classics were officially recognized, during the
Ming (1368-1644) and Qing (1644-1911) dynasties, as the
standard texts required of all candidates in the state examina-
tions. This imperial sanctioning of his commentaries made
them as important as the Confucian Classics themselves.
PRINCIPLE AND MATERIAL FORCE
Everywhere around us we observe a chain of causes and

effects, of means and ends .... The universe must sink into
the abyss of nothingness, unless we admit that, besides this
infinite chain of contingencies, there exists something that
is primal and self-subsistent - something which, as the
cause of this phenomenal world, secures its continuance
and preservation.
Kant (1781:348)
Chu Hsi's metaphysical system is commonly known as li-ch'i

dualism. He held that li, which exists in all things, living and
inanimate, is translated as reason, principle or idea. It is
good, eternal, unique, unchanging, uniform and the essence
of things. Li is used to explain the reality and universality of
things. Ch'i is translated as vital force and material force. Chu
Hsi held that material force is good or evil, transitory, multi-
ple, changeable and heterogeneous in things and is the agent
of creation. It is used to explain physical form, individuality,
and the transformation of things. He stated:
What we called the spirit, the heavenly and earthly aspects
of the soul (hun-p'o), and consciousness are all effects of
material force.
Chu Hsi believed that all things are endowed with a particular li
in their existence, which transcends space and time and serves
as the ultimate reason for the existence of a particular object.
With regard to whether principle is prior to material force,
Chu Hsi argued that the existence of principle is prior to the
existence of ch'i, even though in the universe these things are
Chu Hsi (J 130-1200) 145
mutually exclusive: there is no material force without prin-

ciple or principle without material force. He also considered
that fundamentally principle and material force cannot be
spoken of as either prior or posterior. He held that when we
must trace the origin, we are obliged to say that principle is
prior. However, principle is not a separate entity, its exis-
tence is 'embedded' in material force. Principle provides
material force with its own law of being. But without ch'i
there is no material embodiment to make possible the exis-
tence of Ii. Material force gives principle something to
adhere to. He argued that nature is principle only; but if
there was neither material force nor concrete stuff of the uni-
verse, principle would have nothing to inhere to. He held
that material force is the counterpart of Ii and makes an
object a unique thing. They always co-exist due to the work
of the mind of the universe. Chu Hsi argued that principle
cannot be interpreted in the sense of existence or nonexis-
tence. Before Heaven and Earth came into being, principle
already was as it is.
As well as Ii and ch'i, he used the concept of the Great
Ultimate (t'ai chi) to complete his metaphysical system. The
Great Ultimate is the highest principle of this world, being
complete in all things as a whole and in each thing individu-
ally. The Great Ultimate has no physical form but consists of
principle in its totality. He believed that there is only one
Great Ultimate; it involves both principle and material force.
All possible principles are contained in the Great Ultimate. It
is the highest principle. He held that the relationship
between the Great Ultimate in the universe and the Great
Ultimate in each individual thing is similar to that of moon-
light shining on objects. Each object receives its own
moonlight but this moonlight is moonlight as a whole.
HUMAN NATURE AND JEN (BENEVOLENCE)
Morality per se constitutes a system. But we can form no

system of happiness, except in so far as it is dispensed in
strict proportion to morality. But this is only possible in
the intelligible world, under a wise author and ruler.
Kant (1781 :455)
Chu Hsi held that principle and mind co-exist because of the
work of the mind of the universe. To Chu Hsi, the moral
mind is the principle of man's original nature. This original
mind is principle in itself and is the substance. This further
implies that the original mind is not changeable, is homoge-
nous and is perfectly good. According to Chu Hsi the human
mind is the original mind affected by physical endowment
and human desires. The human mind is both a function and
a state of arousal. It is changeable, heterogeneous, and good
or evil. Chu Hsi believed that nature is the state before activ-
ity begins; feelings are the state when activity has started, and
the mind includes both of these states. He also argued that
desires emanates from feelings. He pointed out:
The nature of all men is good, and yet there are those who
are good from their birth and those who are evil from their
birth. This is because of the difference in material force
with which they are endowed.
On the basis of this argument, Chu Hsi could provide a
logical explanation of why men display differences in moral-
ity as well as in intelligence. Since different people are
endowed with different material forces which may be either
clear or turbid, people should be different in intelligence,
behaviour and heart. It is thus possible that some people
may be so bright that they know everything because their
material force is perfectly clear. But if these bright people
are not endowed with pure material force, what they do may
not all be in accordance with principle. It is also possible
that some people are respectable, generous, loyal, and faith-
ful because they are endowed with pure material force. But
they may not always be able to penetrate principle because
their material force is not clear. In such a way, Chu Hsi
provided the explanation for the existence of different kinds
of people.
Chu Hsi held that man is endowed with Ii, and his original
nature is good. Since every man's original nature is good,
men must be the same and therefore cannot be unalike. It is
through interaction with the environment that man can
become evil. Although Chu Hsi agreed with Mencius that
human nature is good but man may be good or evil in prac-
tice, his conclusions were achieved in an explicit and logical
Chu Hsi (1130-1200) 147
way. With regard to Confucius' saying: 'By nature, men are

nearly alike; by practice, they get to be wide apart,' Chu Hsi
argued that by nature Confucius meant physical nature,
which involves elements of evil in his own theory. By this,
Chu Hsi provided a logical interpretation of the famous
Confucius' saying. Confucius might have had no idea about
'nature' in Chu Hsi's sense.
In Chu Hsi's theory, mind is master in the sense that the
mind unites and commands both human nature and feel-
ings. This master exists at any state, whether in the state of
activity or in the state of tranquillity. By harmonizing man's
nature and feelings the mind unifies itself. Moreover, Chu
Hsi described the character of the mind using a single word,
Jen:
'The mind of Heaven and Earth is to produce things.' In
the production of man and things, they receive the mind of
Heaven and Earth as their mind. Therefore, with refer-
ence to the character of the mind, although it embraces
and penetrates all and leaves nothing to be desired, never-
theless, one word will cover all of it, namely,jen.
Since the original nature of man is universal,jen is the nature
of man, and, as such, universal nature. Jen is the highest
moral quality of mind. It includes other qualities of mind
such as wisdom, propriety, and righteousness.Jen represents
the spirit of human life in his doctrine.
The concept of jen is one of the most persistent issues in
the history of Chinese philosophy. As for all other
Confucianists, the concept ofjen is the key word in Chu Hsi's
whole moral philosophy. For Chu Hsi, jen is substance, the
character of man's mind and the principle oflove. This spirit
oflife has power over love and altruism. Chu Hsi argued that
impartiality is the principle of jen. For him, if there is impar-
tiality, there is jen, and if there is jen, there is love. In China,
philosophical debates over whether or not there should be
distinctions in love were continued over centuries. Moists
held that love should be universal and without distinction.
Confucianists believed that love embraces all relations; but
love must have an order and a distribution of importance or
gradation. Chu Hsi gave two reasons for this Confucian
belief. One is that parents are the foundation of life and
therefore one's moral obligation to them should be greater.

The other reason is that while the principle governing all is
one, its manifestations are many. Applying this idea to love,
he argued that while love is universal, its application to the
various relations are different.
EDUCATION AND SELF-CULTIVATION
All our knowledge begins with sense, proceeds thence to

understanding, and ends with reason.
Kant (1781:189)
Respect for knowledge and the lifelong pursuit of learning is

a fundamental human obligation in Confucian tradition. It is
generally believed that full human fulfilment is achievable
only through an ordered pattern of education and growth.
According to Confucius, man's response to Heaven and the
fulfilment of his nature cannot be limited to his social utility.
A gentleman is not a mere tool. Irrespective of intense social
and political engagement, man should keep some part of
himself free from the demands of state or society. Aesthetic
and spiritual concerns belong to this area of freedom. On the
importance of education and self-cultivation, Chu Hsi
adopted the standard Confucian stance. But he presented
his views upon a new basis. In Chu Hsi's system original and
developed human nature are distinguished. Man develops
nature through interaction with the environment, acquiring
different forms of ch'i which may be either good or evil. Man
may thus stray from his original good nature and become
evil. Since developed nature may be evil, it is necessary for
man to engage in cultivation in order to come back to the
original nature. The most significant way of maintaining
one's good nature is through learning and education. He
argued that one should cultivate the essential and examine
the difference between the Principle of Nature and human
selfish desires that without a single moment interrupted in
our life. Someone who understands this point clearly will not
search for popular ways of success and profit or for expedi-
ent schemes. The basic principle of education for a man is to
retain in human nature what was originally endowed by li.
Chu Hsi (1130-1200) 149
In order to conduct proper self-cultivation, the essential

point is seriousness. For Chu Hsi, seriousness means nothing
other than the mind being its own master. He emphasized
the balance between seriousness and the investigation of
things in moral cultivation. Seriousness in self-cultivation
and extensive learning are the basic qualities for cultivating
mind. But this seriousness means to be active, to do some-
thing or to learn something. For him, to be serious is not to
sit still with the ear hearing nothing, the eyes seeing nothing,
and the mind thinking of nothing. To be serious is to be
careful, active and apprehensive and not to give free rein to
oneself.
THE INVESTIGATION OF THINGS
[A]ll attempts at an empirical deduction, in regard to pure

a priori conceptions, are vain.
Kant (1781:69)
Chu Hsi held that the principle is universal and is one, but
its manifestations are many. Since man as well as (inanimate)
things have a mind and this mind is essentially identical with
the mind of the universe, mutual influence and responsive-
ness and knowledge can exist between things and human
beings. Hence, he concluded that the mind is capable of in-
vestigating things because both the mind and things share
the same principle. As all things have the same principle, it is
theoretically possible that investigation can exhaust all
things. For Chu Hsi, investigation is not limited to man but
should cover all things, living or dead, in the universe. Chu
Hsi's philosophy included the importance of the investiga-
tion of nature. For him, to investigate principle to the
utmost, means to seek to know the reason why things and
affairs are as they are and the underlying reason which
governs how they should be. But in practice his doctrine did
not have any revolutionary impact on the investigation of
nature. His philosophy, irrespective of its popularity over
hundreds of years, did not lead to the development of
science in China. It is argued that one reason is that Neo-
Confucianists still followed the Chinese intellectual tradition,
mainly concerned with moral training and neglecting the ob-

jective study of nature.
The proposition in Chu Hsi's doctrine of the principle of
nature is to promote good and remove evil; the doctrine of
humanity advocates love for all; the doctrine of the investi-
gation of things gives way to a clear and penetrating
understanding of the things investigated. He said:
There is no other way to investigate principle to the
utmost than to pay attention to everything in our daily
reading of books and handling of affairs. Although there
may not seem to be substantial progress, nevertheless after
a long period of accumulation, without knowing it one will
be saturated [with principle] and achieve an extensive
harmony and penetration.
He held that the investigation should be conducted in as
much detail as possible and thought should be pursued as
deeply as possible. For him everything, large or small, living
or dead, contains principles and should be investigated. He
held that extensive learning implies that one study every-
thing, from the most essential and most fundamental fact
about oneself to every single thing or affair in the world,
even to the meaning of a single word or half word. For him,
everything should be investigated to the utmost; nothing was
unworthy of attention. Indeed, he realized that it is impossi-
ble for us to investigate everything. But the point is to keep
on devoting one's attention to the investigation of things. As
discussed in the chapter to follow, Wang Yang-ming criti-
cized Chu Hsi's viewpoint by pointing out that the emphasis
on examining principles with the intellect would actually
result in the deviation of the mind from the principles.
Some [of conceptions] are destined for pure use d priori, in-
dependent of all experience; ... it is necessary to know how
these conceptions can apply to objects without being
derived from experience.
Kant (1781:68)
Chu Hsi (1130-1200) 151
In Confucian tradition it is generally required that a scholar

should be able to apply his knowledge. This is clearly reflect-
ed in Confucius' attitude towards knowledge and action.
Chu Hsi is a great philosopher as well as an excellent literary
stylist. He is socially and politically active. In his philosophy,
he valued action as much as knowledge; he recognized their
mutual dependence. He held that in temporal terms, know-
ledge is prior to action although in terms of value, action is
more important. For Chu Hsi, learning by doing rather than
sitting in meditation is the way to accumulate knowledge. He
argued that it is important to vigorously apply one's knowl-
edge in one's action. Not only should one apply past
knowledge, one should make efforts to go beyond that. It is
through applying past knowledge and accumulating new
knowledge through action that one can reach the far horizon
from the near while becoming refined in the process. Like
other Confucian scholars, Chu Hsi argued that knowledge
and action should be in balance. He held that if one has more
correct knowledge, one should become more active; and that
it is practice that makes one see things more clearly. He
argued that if we know something but have not yet acted on
it, our knowledge are not yet deep. It is only after we have
experienced something that our knowledge will become in-
creasingly clear. It is in this way that our past knowledge is
different from our previous knowledge.
In his philosophy, character building requires a strictly
applied learning process. Almost every aspect of one's personal
and social life - food, dress, living arrangements, daily routine,
sexual relationship, family and community life - are regulated
in the greatest detail. He created a formal curriculum with
graded texts for education. He held that it is essential that
there is a primer for the basic training of the young. This view
comes from his belief that learning should go before action:
We must first know before we can act. This is why the
Great Learning first talk about the extension of knowl-
edge, the Doctrine of the Mean puts wisdom ahead of
humanity and courage, and Confucius first of all spoke of
knowledge being sufficient to attain its objective. But none
of extensive study, accurate inquiry, careful thinking, clear
sifting, and vigorous practice can be omitted.
9 Wang Yang-ming
(1472-1529): Chinese
Idealism
Every originally giving intuition [is] a source of legitimiza-
tion for knowledge.
Husserl (Heidegger, 1993:439)
In the West, David Hume (1711-1776) is often regarded as

the most important philosopher ever to have written in the
English language. Hume was strongly influenced by Sextus
Empiricus, a Greek doctor. The main principles of empiri-
cism state that all knowledge, and all understanding, have
their roots in experience - particularly in the experience we
obtain through the senses. Empiricus provided the West
with the most complete picture of ancient scepticism
(Popkin, 1964; Stough, 1969). Influenced by Empiricus,
Hume (1739) also held that matters of fact can be known
only through experience. He argued that all the perceptions
of the human mind condense themselves into two distinct
kinds - impressions and ideas. Here, the term perceptions
means anything of which we are conscious; impressions are
the products of our senses; and ideas are copies of impres-
sions, differing from them only in being less vivid.
Impressions are not external physical objects but the con-
tents of consciousness. They arise in our minds from
unknown causes. Hume argued that it is impossible to have
any idea that is not traceable back to some impression. Since
our ideas are copies of impressions, their ultimate causes
must also be unknown. We can have no knowledge of the
existence of the gap between the contents of our conscious-
ness and an external, nonconscious physical world. After
analysing the process of reason, he came to the conclusion
that reason is self-destructive (Fogelin, 1985). But Hume did
not hold that we should believe in nothing. He argued that
we may believe many things, even though none of these
152
Wang Yang-ming (1472-1529) 153
beliefs has any rational basis. He held that the destruction of

reason does not lead to the suspension of judgement because
human nature urges us to judge and to believe. He believed
that knowledge is good for its own sake. It is simply better
to know than to be ignorant. Similarly, H ume did not give
ethics any credence. All objective states of affairs are morally
neutral.
Empiricism implies that every claim to knowledge must be
put to the test of experience. This tends to have the result
that authority, tradition and revelation are all put in doubt.
Mathematics and metaphysics provide great challenges for
empiricism. Mathematics is knowledge and is not always
based on experience. Until this century, Hume was almost
neglected in the West. In the 18th century only Kant recog-
nized his significance. In the 19th century little attention was
paid to his philosophy. In this century scholars have studied
his thought with increasing attention. In some sense, Wang's
totally subjective theory experienced similar dynamics in its
social acceptance. But unlike the period of Hume's life, when
the West was in the ascent and society desired authority and
certainty for its progress, Wang lived in a period of dynastic
decline, characterized by a lost belief in certainty and
authority. Wang's doctrine (i.e. Lu-Wang's school) that the
principle is identical to the mind (which tends to be inter-
preted as a kind of scepticism), was suited to the spirit of the
epoch. His subjective theory exerted a strong influence in
China during the latter part of his lifetime and for some
years thereafter. His philosophy was largely neglected with
the rise of Manchu power. The early Qing Dynasty was pros-
perous and stable and Wang's philosophy lost its
significance. Since the start of the Qing Dynasty's decline at
the beginning of the 19th century, China's intellectual world
has been concerned with how to meet the challenge from the
West. Since the fall of the Qing Dynasty in 1911, all Chinese
philosophies experienced basically similar fates in mainland
China until economic reform began: they were either ne-
glected or criticized. The implications of Hume's theory
about knowledge and its usefulness may be applied here to
explain the dynamics of social acceptance of his own as well
as Wang's ideas.
SOCIAL ENVIRONMENT AND HIS LIFE
[Genius'] true seriousness always draws the force and at-

tention of his intellect back to where it lies; everything else
is pursued by him without true seriousness.
Schopenhauer (1958 II:384)
Wang Yang-ming was born in 1472, in what is now Chekiang

(Fung, 1948; Chan, 1963, 1973). He came from a family of
accomplished scholars and officials. About Wang's intellect, it
is said that on his wedding day he was so absorbed in talking
to a Taoist priest about everlasting life that he did not go
home until the next morning. He was encouraged at a young
age to sit for the civil service examinations and to serve in
public office. In 1499 he obtained the 'presented scholar'
degree. Then he served in the government as an executive
assistant in one department after another. In 1506, because
he offended a eunuch, he was banished to present Kueichow
where he stayed more than two years. From late 1510 until
1516 he was appointed to various posts in Peking and
Nanking. From 1517 to 1519, he suppressed several rebel-
lions in Kiangsi and Fukien. He was rewarded but his
enemies at court accused him of conspiring with a prince and
he was therefore ostracized. In 1527 he was called back to
suppress rebellions and he completed this task. On his way
back he died. At this time his doctrines were officially
accused of being false. He was also accused of opposing Chu
Hsi. It was only 38 years after his death that he was hon-
oured with the title Marquis of Hsin-chien and Wen-ch'eng
(Completion of Culture). He obtained the highest honour
for a scholar in 1584 by order of imperial decree, being
offered sacrifice in the Confucian temple.
According to Huang Tsung-hsi (1610-95), Wang went
through three stages in his learning. First he was fully occu-
pied with flowery literary compositions and studied the
military crafts. In 1492 he began to study Chu Hsi's philos-
ophy. Then, after reading Chu Hsi's works and attempting
to investigate the principles of bamboos according to Chu
Hsi's formula (which he found disappointing), he passed in
and out of various Buddhist and Taoist schools for a long
prolonged period. After many futile attempts at finding a
meaning in life, he returned to Confucianism. Chu Hsi's ra-

tionalist philosophy had dominated the Chinese intellectual
world since the 12th century. In particular, since 1313 his
interpretation of Confucianism had become orthodox and
had been made the basis of the civil service examinations.
But as time passed it lost its efficiency. The Principle of
Nature was overcome by selfish human desires; humanity
gave way to mutual jealousy and rivalry; the investigation of
the things was replaced by memorization, recitation, philo-
sophical and textual studies, and the writing of flowery
compositions. The civil service examination system had
become an avenue for personal fame and success. The
Confucian Classics were used to restrict creativity and
freedom of thought. The philosophy of Chu lost the moral
strength it had originally possessed and became pure
scholasticism. This philosophy, however, remained the only
channel to public service and personal success.
At this time the government was both exceedingly corrupt
and impotent. There was disorder in central government
and chaos throughout the land. In the 15th century China
was externally harassed by semi-nomadic tribes in the north.
The government's heavy taxes made people's lives particu-
larly miserable. Many areas were under the control of rebels
and bandits. The cultural brilliance and economic prosper-
ity of the first half of the Ming dynasty had turned into
decline and chaos. Under such a situation, critical spirit,
creative thought, moral purpose and vitality gradually dis-
appeared. The influence of Chu's philosophy had become
unhealthy and Wang interpreted the situation as a conse-
quence of the impact of Chu Hsi's doctrines. To Wang, Chu
Hsi's philosophy was the reason for the decline of the
Confucian doctrine and the intellectual, political and moral
decay. He believed that the source of these troubles was that
the theory of the investigation ofthings by Ch'eng I and Chu
Hsi was wrong. He criticized the theory of fixed principle in
the school of Chu Hsi and rejected the Buddhist idea of
'emptiness'. It was under such circumstances that he made
attempts to introduce vigour and fresh life into the
Confucian system.
THE MIND AND PRINCIPLES
This world is, on the one side, entirely representation, just

as, on the other, it is entirely will.
Schopenhauer (1958 1:4)
Issues related to relationships between mind, reality and

principles (i.e. the Way) are the main concerns of the Neo-
Confucianists. Chu Hsi argued that the mind/intellect
should go to things in order to investigate principles. This is
to consider principles as external, something which Wang
rejected as absurd. He insisted that principles and the mind
are identical. He argued:
To investigate the principles in things in the utmost as we
come into contact with them means to look in each indi-
vidual thing for its so-called definite principles. This
means to apply one's mind to each individual thing and
look for principles in it. This is to divide the mind and
principle into two.
His points of view were consequently at variance with those
of Chu. Chu Hsi argued that the mind is the master of the
body and it controls all principles in the world. Although
principles are distributed through different things, actually,
they are within one's mind. To Wang's mind, Chu Hsi's doc-
trine inevitably opened the way to a defect among scholars -
that of regarding the mind and principles as two separate
things. He argued that the separation of the mind and prin-
ciples caused great troubles for later generations as they
concentrated on looking after original minds and conse-
quently neglected the principles of things. People neglected
the principles of things because they did not realize that the
mind is identical with principle. Wang observed that scholars
who followed Chu's doctrine were only concerned with frag-
mentary, isolated details and lacked the essentials. Since Chu
Hsi's theory claimed that each thing possesses principle and
therefore should be investigated, people were concerned
with individual things and diverted from the basic principles
ofthings and the fundamentals oflife. For Wang, since Chu's
theory considered things as external and separated the mind
and principle, the result was that the mind lost its direction
and its motivating power. Wang rejected the doctrine of sep-

arating mind from principles; according to him, mind and
principle are one and the same. He rejected Chu's investiga-
tion of all things as a hopeless task.
According to Wang the mind covered the entire gamut of
existence. As mind is the principle and there is no principle
outside mind, there is nothing outside it. Nothing exists in-
dependent of and apart from mind. Things and affairs are
internal. Wang believed that the separation of the mind and
the principles of things was not only a fallacy in theory but a
moral disaster, because it led to the devotion to external
things and the neglect of the internal. To him, principle and
mind are one and the principle of filial piety is an exercise of
the mind. He argued that if principles were outside mind, as
held by Chu Hsi, then the principle of filial piety and the
desire to be filial would cease to be as soon as parents die. In
contrast to Chu Hsi who held that the principle of filial piety
must exist before there can be a mind to practise it, Wang
claimed that the principle of filial piety is nothing but the
existence of the mind and therefore the mind must exist first.
He argued that the highest good is in the mind and it is fruit-
less to search for the highest good outside the mind. Every
individual can understand the fundamental principles of life
and things by learning to understand his own mind and by
developing his own nature. Basing on the assumption that
the mind and the principle are one, Wang interpreted many
aspects of the traditional Confucian doctrines in new ways.
THE SINCERITY OF THE WILL
[T]he will as thing-in-itself lies outside the province of the

principle of sufficient reason in all its forms, and is conse-
quently completely groundless, although each of its
phenomena is entirely subject to that principle.
Schopenhauer (1958 I: 113)
In contrast to Chu Hsi who changed the order of chapters of

the Great Learning so that the chapter on the investigation of
things preceded that on the sincerity of the will, Wang fol-
lowed the old text, the Book of Rites, in which the chapter on
the sincerity of the will comes first (Chan, 1973). Unlike Chu
Hsi, who put the investigation of things ahead of the sincer-
ity of the will, Wang claimed that the sincerity of the will was
the necessary foundation on which investigation and exten-
sion must be based. Principle or things did not exist unless
the mind determined to realize them. To Wang, a thing is
nothing but the functioning of the will. For instance, when
the will 'wants' to serve parents, then serving parents is a
thing (an actuality). He argued that sincerity of the will must
precede the investigation of things.
To Wang's mind, what arises from the will may be good
or evil. In order to choose good will, one has to be capable
of distinguishing between evil and good. Otherwise, there
will be confusion between truth and untruth. Without this
capacity a man cannot make his will sincere even if he wants
to do so. Here, knowledge plays a significant role in one's
cultivation. As mentioned above, all Confucian schools in
China emphasized self-cultivation even though they had
different 'metaphysical' bases.
INNATE KNOWLEDGE
Knowledge is completely the servant of the will.

The term innate knowledge plays an essential role in Wang's

thought system. His doctrine of the extension of innate
knowledge of the good was inspired by the idea of the ex-
tension of knowledge in the Great Learning and the idea of
innate knowledge of the good from Mencius. To Wang's
mind, the mind, the will, knowledge and action belong to the
one. He argued that anyone who wishes to make his will
sincere must extend his knowledge. By extension Wang
meant that one should make great efforts to reach the limit
of one's capacities.
To extend knowledge is not what later scholars under-
stand as enriching and widening knowledge. This comes
from extending one's innate knowledge of the good to the
utmost. Moreover, Wang argued that in order to extend
knowledge one has to practise.
On the basis of the ancient ideas, Wang developed a theory

which adds another complexity to Chinese thought. But
there is no explicit definition of innate knowledge (Chan,
1973). Wang described innate knowledge as 'the original
substance of the mind', and 'the Principle of Nature (T'ien
Li)'. T'ien Li does not only contain the principle of morality
but also includes the principle of natural change. His idea of
innate knowledge is tied up with the actual human situation
and has a dynamic force behind it. Although Wang did not
explicitly define innate knowledge, it is often interpreted to
mean the principle of right and wrong. Thus the extension
of innate knowledge tends to be interpreted to mean that
one knows right to be right and wrong to be wrong instantly
and spontaneously.
As innate knowledge exists in all existence, even trees and
grass possess it. It is internal and it does not come from an
external sense such as hearing or seeing. This implies that
any person may understand the fundamental principles of
life and of things by learning to understand his own mind
and by developing his own nature. For Wang, man is the
measure of all things. This further implies that it is not nec-
essary to use the past to find contemporary standards. To
memorize the past and apply the knowledge of the past to
the present is not a proper way to approach reality.
Memorizing past doctrines is not the way to get essential
knowledge. Wang argued that when a good or evil wish
arises, the mind's faculty of innate knowledge itself is always
conscious of it and knows it. This judgement has nothing to
do with what others think. He thus believed that innate
knowledge of the good does not permit any self-deception.
Since Wang believed that the source of goodness is within
oneself, not introduced from outside, he concluded that all
persons possess an innate knowledge of the good. Moral
action is a natural expression of innate knowledge of the
good. One's innate goodness is extended outward from
natural feelings of love for oneself and one's family to one's
community and to all other persons, cultures, and things.
Another important conclusion from Wang's theory is that
any person is capable of becoming a sage. He emphasized
equality of opportunity and liberty. For him the four classes,
scholars, farmers, workers and merchants, are professionally
different, but they share the same Way. According to Wang,

scholars did not occupy any privileged position among the
people. In relation to the Way they are on the same footing
with other classes of people. Under his influence, the
Confucian Way could no longer be considered a privileged
avenue belonging only to the literati.
Wang believed that there is no human nature that is not
good. Therefore there is no innate knowledge that is not good:
Now the original substance of the mind is man's nature.
Human nature being universally good, the original sub-
stance of the mind is correct.
Wang held that innate knowledge constitutes the equilibrium
that exists before the feelings are aroused. It is the state of
broadness and extreme impartiality. It is the original sub-
stance that is absolutely quiet and inactive. The theory of
innate knowledge argues that one should commit oneself on
the basis of one's own independent judgement without
relying on established values or norms. The autonomy of
innate knowledge makes it possible to dissolve established
principles and create new ones. Innate knowledge does not
follow any set rule, but creates rules as circumstances
demand. Innate knowledge has a dimension that goes
beyond both good and evil.
It should be noted that the type of knowledge Wang re-
ferred to is limited to personal experience and does not
exhaust the whole realm of knowledge. Since 'Man is the
measure of all things', to him each individual has the solu-
tion of the moral problems of the universe within himself. It
is quite reasonable to expect that Wang's followers did not
agree with each other on interpretations of Wang's teachings
on issues such as innate knowledge. This resulted in divisive-
ness and confusion. Thus, there was never any unity among
his followers. Each follower understood the idea of innate
knowledge in his own way. The central basis of the Wang
philosophy lacked unity. For instance, some people justified
their social irresponsibility as the extension of their innate
knowledge. Forming one body with all things came to mean
acceptance of everything without any standards. As the
desire for action was considered to be the same as action
itself, the lazy could say that action had already taken place
IIIthe mind. Some followers even became intellectually

undisciplined. Some evil acts were even conducted in the
name of innate knowledge.
[K]nowledge that serves the will really knows nothing

more about objects than their relations, knows the object
only in so far as they exist ... as particular things.
The Confucian tradition emphasizes the equal importance of

knowledge and action. But Wang was the first to claim the
unity of knowledge and action - knowledge being the begin-
ning of action and action the completion of knowledge.
Wang held that knowledge in its real aspect is action, and
action in its intelligent aspect is knowledge. He argued that
knowledge and action are separated because people are
taught to seek principles outside the mind.
The idea of the unity of knowledge and action was Wang's
contribution to the history of Chinese philosophy. He held
that reason or knowledge exists only in the mind. The phrase
unity of knowledge and action is key to his philosophy. For
him the process of knowing and what is known are one
reality; reason is the essence and reason is known through the
activities of the mind. He firmly believed in the intelligibility
of the world in which we live. He argued that the mind's
knowledge is the core of reality; that is, reality is contained in
consciousness. Things are not external to us but are objects of
consciousness. The world of nature provides material for the
mind to work with. In this philosophy the universe is a unity
in which man is the mind; without mind or intuitive know-
ledge, the universe would not be able to operate.
Chu Hsi considered that the investigation of things re-
quired an objective method, whereas Wang considered the
investigation of things to mean moral awakening. For him, to
investigate things is to do good and to remove evil. In his dis-
cussion of unity of knowledge and action, Wang stressed that
true (moral) knowledge leads to desirable concrete results.
He argued that the extension of the innate knowledge to the
utmost does not mean something illusory, hazy, in a vacuum,

unreal; instead, it means something real; it means the investi-
gation of things. Hence, for Wang, knowledge separated
from action is nonsense. In Wang's doctrine each individual
is under the obligation to hold knowledge and action, theory
and practice together. The individual possesses an endogen-
ous spring of knowledge and should constantly carry into
practice the things that his intuitive knowledge of good gives
him the opportunity to do. Wang's theory emphasized
sincere purpose and concrete action. The extension of innate
knowledge not only requires sincerity of the will, but also calls
for vigorous and active effort. His doctrines required forth-
right, direct, and spontaneous action. Wang was extremely
critical of Taoists and Buddhists (Chan, 1963). He argued
that once they added certain selfish ideas to their minds, they
lost the true character of nothingness and their Way became
obstructed.
Like other Confucianists, Wang emphasized the signifi-
cance of self-cultivation. In fact, in the first stage of his
teaching, Wang taught meditation. This was under the in-
fluence of Zen Buddhism. But soon he gave up sitting in
meditation and replaced it with an active approach of 'pol-
ishing and training in actual affairs'. This active approach
exerted great influence on both China and Japan. Although
Wang considered human nature to be universally good and
the original substance of the mind correct, he argued that
effort is still required to rectify the mind.
Through his teachings on innate knowledge, which grew out
of his theory that knowledge and action are one, he reshaped
the structure of Confucian thought in a fundamental way.
Emphasizing the importance of self-determination, he advo-
cated that experimental understanding of the classics through
self-cultivation must take precedence over book learning. The
Japanese historian Shimada Kenji argued that the 'innate
knowledge' or 'good knowing' of Wang Yang-ming can be con-
sidered a potent concept and force for rationality in the
Weberian sense, freeing the Chinese mind from the accepted
doctrines and social conventions of Confucian tradition. But a
contemporary society still cannot be saved by any past theory
without the intervention of contemporary intellectuals.
Part III
Modernization of the
Confucian Regions
Seeing things as similar and making things the same is the

sign of weak eyes.
Nietzsche, The Gay Science, 1974
10 Industrialization of the
Confucian Regions
In the front of unprecedented forceful and vigorous chal-

lenges in military, political, economic as well as intellectual
fields from the West in modern times, the greatness of
Confucianism is displayed in its constant existence and
silent adaptation rather than in a 'club-like survival' strat-
egy of randomly disturbing men's emotion in order to
collect numerous mediocre believers who pray for its sur-
vival. Its intellectual power comes from its belief in rational
knowledge, education, employment of men according to
talent and merit differences, the family/group value, and
differentiated degrees of human love as a moral and eco-
nomic accounting basis. Its survival power is due to the fact
that it is based on man's nature and man's actual capacity
to adapt his own ideals as a morally decent existence.
The conception of time and space are important for reveal-

ing the complexity of the evolution of cultures. People
perceive time differently, depending on knowledge, life ex-
perience, social position, 'security of the future', and other
factors. For instance, people have different perceptions of
time in calculating the benefits and losses of a given action.
When we examine historical processes, time not only helps us
to account for affairs and events, but also tells us how to value
them. As time flows, affairs or events which appear to be his-
torically important turn out to be internally trivial. Time
stands for the state of mind of a culture. If one understands
the intimate connection between time and the mind, it is not
difficult to understand why the self-confident 17th-century
Manchu were positive towards the Western cultures while
the corrupt 19th-century Manchu made attempts to prevent
the West from influencing China. The Chinese saying: 'it is a
great fortune to be born into an interesting time', reflects the
Chinese sense of timing for personal life as well as for a
nation's fate.
165
Time flows like an arrow; while space stays 'stationary'.

Time and space are the two basic dimensions for us to locate,
measure, follow and value things and affairs. No two events
ever occur in the same place and in the same time. Spatial
dimension matters in situation-dependent historical process-
es. Nonlinear theory has revealed the role of space in the
evolutionary processes of varied dynamic systems (Haken,
1977; Prigogine and Stengers, 1984; Zhang, 1990, 1991).
Nonlinear theory has revealed that traditional economists
have rather limited views about the role of geography in
economic development. Indeed, the father of modern eco-
nomics, Adam Smith, was aware of the role geography plays
in the expansion of markets and the division of labour. He
noted that sea-based trade has more advantages in terms of
low transportation costs than over-land trade. He was well
aware of the multiple spatial factors of economic geography,
even though he did not take these factors into account in his
formal theory in a consistent way. Moreover, in his time,
sciences were dominated by the linearized view of dynamic
processes. It is unfair to require Smith to recognize the com-
plexity of nonlinear dynamic economic geography. In
modern times the mainstreams of economics have almost
forgotten the spatial dimension of economic life. The spatial
dimension had been perceived by many economists to be
something trivial or negligible. Professional economists have
often omitted time and space from their concepts and their
mathematical models. As works of art, these equilibrium
models are refined, accurate and excellent; but as far as
insight into economic processes is concerned, they tend to
be somewhat trivial, and useless as sources for understand-
ing economic processes.
In order to understand the past, present and future of
the modernization of the Confucian regions, it is important
to be aware of the complexity of time and space in the evo-
lution of economic geography. Without spatial and temporal
senses it is difficult to analyse how similarity and difference
in economic dynamics among these regions has occurred
over time and space in modern times. Although
Confucianism had been accepted as the state ideology in
China, Japan, Korea, and Vietnam before the West came to
these regions, these countries have displayed great
Industrialization of the Confucian Regions 167
differences in economic development over the past 100

years.
INDUSTRIALIZATION OF THE CONFUCIAN REGIONS
I observe that he is fond of occupying the seat of a full-

grown man; I observe that he walks shoulder to shoulder
with his elders. He is not one who is seeking to make
progress in learning. He wishes quickly to become a man.
Confucius
The Confucian regions have displayed a fantastic economic

history since the end of World War II (Duus, 1976; Francks,
1992; Findlay and Wellisz, 1993; So and Chiu, 1995). Japan
was the first non-Western country to become industrialized.
japan's economic position in the world has been dramatically
changed since the end ofthe Second World War. Its econom-
ic success was called a miracle in the 1960s and 70s. This
miracle was soon followed by other economic miracles in the
Confucian regions. The four tigers, Taiwan, South Korea,
Hong Kong and Singapore, displayed high growth rates in
the 1970s and 80s. Soon after its economic reform was started
in 1978, mainland China has consistently maintained high
economic growth rates for the past 20 years. Following
China's economic reform, Vietnam introduced market
mechanisms and since then its economic performance has
been constantly improved. The only area in the Confucian
regions which has not experienced rapid economic growth
since the end of the Second World War is North Korea.
Japan
The bitter past, more welcome is the sweet.

Shakespeare
More than 130 years ago, Japan, like most of the rest of the
Confucian regions, was an agricultural country with virtually
no modern industry. It used Tokugawa Confucianism as the
state ideology (Maruyama, 1963, 1974; Dore, 1965: Hauser,
1974; Zhang, 1998). But Japan began its industrialization
(and militarization) with the Meiji Restoration of 1868. The

effort to create a modern industrial society was successfully
carried out by imitating European and American technology
and institutions. Japan had rapidly developed the basic con-
ditions for industrialization for that particular international
environment: armaments, industrial bases, successful mili-
tary campaigns, and colonies. Japan was able to play the
game of power politics and in the process not only extended
its control over weaker countries but also shared other
powers' global interests (Moulder, 1977; Morishima, 1982).
To illustrate the Japanese economic miracle it should be
noted that at the beginning of the 20th century, Japan ac-
counted for a mere 1 per cent of the world's total GNP, while
the United States accounted for 30 per cent and the United
Kingdom 20 per cent. In terms of per capita GNP, Japan
achieved a level comparable to that of the United States and
the United Kingdom by the end of the 1980s. Over this 80-
year period, the Japanese economy had grown 30 times as
fast as the US economy and 20 times as fast as the UK
economy. Modern Japan, a small island country with poor
natural resources, is clearly an advanced industrial society.
One hundred and thirty years of national effort has led
Japan from its humble status as a small underdeveloped
economy to what it is today. Japan's prolonged and persis-
tent efforts to industrialize and the resultant economic
growth have aroused worldwide interest (Reischauer, 1977;
Wolferen, 1989; Chapman, 1991). The economic miracle of
this resources-poor small island is largely due to the rapid
spread of education as well as the fast development of
modern science and technology (Hayashi, 1990; Howe,
1996). japan's institutional values were quickly switched
from 'Tokugawa Confucianism' (fixed class by birth) to 'Meiji
Confucianism' (social position by education) (Zhang, 1998).
Although Japan had been influenced by Confucianism for a
long time before the Meiji Restoration, Japan had never fully
practised the most important feature of Confucianism, social
position determined by education and merit. By the Meiji
Restoration, Japan began to fully employ this traditional
Chinese practice. As argued in Zhang (1998), as far as eco-
nomic efficiency is concerned, it might not be economically
effective for TokugawaJapan to use the examination system
to determine people's social positions because talent accumu-

lated through traditional education could hardly enlarge the
national pie but might complicate division of the consump-
tion of that pie. Modern science and technology, however,
have changed the economic efficiency of this Confucian prac-
tice in the way that the talent accumulated through education
in science and technology enlarges the national pie rather
than merely complicates the division of consumption of the
pie. It may be argued that Japan, rather than China, has
been the master of timing in the last 300 years in applying the
Confucian main practical principle of putting the talented at
the right position for the social benefit. Another characteris-
tic of Japan's modernization is that the Japanese have
accepted neither capitalism, nor socialism, nor traditional
Confucianism as their dominant ideology, not even for a
short period of time, since the Restoration. Thus, no extreme
ideology was adopted as the dominant ideology for national
management.
South Korea
For if anyone, no matter who, were given the opportunity

of choosing from amongst all the nations of the world the
set of beliefs which he thought best, he would inevitably,
after careful consideration of their relative merits, choose
that of his own country. Everyone without exception be-
lieves his own native customs, and the religion he was
brought up in, to be the best.
Herodotus (490-425 Be), History
In 1876 Japan forced a commercial treaty on the Koreans

and the economy slowly opened up. One of the main inten-
tions of this treaty was to weaken the Chinese influence in
Korea. Japanese dominance increased slowly after the
Chinese defeat in the Sino-Japanese War in 1894-95. Mter
the Japanese defeated the Russians in the 1904-5 War, the
Japanese grip on Korea tightened considerably. In 1910 the
Japanese colonized the country. During the Japanese occu-
pation, Korea experienced strong economic growth between
1910 and 1940. Industry grew and exports expanded
during the 1930s when Japan made Korea a supply base for
its military thrust into China. Many Korean companies were

established under the Japanese and there was a substantial
transfer of managerial technology. An educational system
and material infrastructures were established and the urban
labour force was expanded. Old institutions and beliefs
gradually disappeared as new and foreign ideas arrived. In
1945 the colonization ended with the defeat and subsequent
withdrawal of the Japanese.
Korea was split into two halves after the Second World
War, with the United States occupying the South and the
Soviet Union the North. The North produced mining prod-
ucts, heavy manufacturing goods and most of the electric
power. The South had very limited mineral deposits, but had
most of the arable land and produced primarily light indus-
trial goods. The first Republic of South Korea was founded in
1948. South Korea is one of the most outstanding performers
of the newly industrialized countries. During 1953-62, initial
efforts were made to reconstruct the economy. The country
was in an underdeveloped condition. It was also poor and
politically unstable. To promote investment by the private
sector, the government provided various incentives, includ-
ing favourable treatment for investment in capital goods.
The government mobilized domestic savings by setting real-
istic interest rates and maintaining positive net rates of
return for savers. Foreign capital also provided an important
source of funds for investment and economic development.
Education received great emphasis. Since accumulation of
human capital through education was an important element
in Korea's successful economic development. Education was
seen as an important source of upward mobility as well as of
new job options. The economic development of South Korea
has been among the most rapid and sustained in the world,
despite the turbulence caused by the end of the Japanese
occupation in the 1940s and the Korean War in the early
1950s. From 1953 to 1963, GDP growth was 4 per cent annu-
ally. During the period 1963-73 Korea experienced high
annual growth rates of 9 per cent on average, while the
period of 1973-79 produced a growth rate of 9.3 per cent
(Pilat, 1994: 46-7). Mter 1979 growth settled at 8.2 per cent.
In 1986 per capita income reached $2,300, the share of the
manufacturing sector in GNP reached 30 per cent and the
share of agriculture, forestry, and fisheries was 12.3 per cent

of GNP. The share of exports of primary products in total
exports was 8 per cent and that of manufactured goods 92
per cent (Suh, 1992).
Taiwan
As soon as you trust yourself, you will know how to live.

Goethe (Faust)
In a number of respects, Taiwan's economic success story

strongly resembles South Korea's (Lau, 1990). Taiwan is a
mountainous island of 36000 square kilometres. Only a
quarter of the island's total area is arable and the quality of
the land is poor. Prior to l600, Taiwan was a sparsely popu-
lated island. Thereafter, farmers (and a small number of
merchants and artisans) from Fukien and Kwangtung began
to settle on the island. But it was not until 1875, when Taiwan
became a prefecture of Fukien that its elite social class
became influential. When Japan took control of Taiwan from
China in 1895, Taiwan had developed into a supplier of agri-
cultural products, aiding japan's industrialization. Although
the colonial rulers built a modern infrastructure of finance,
transport, and education, the impact on Taiwan's industrial-
ization was very limited. However, an effective primary
education system was established during the period of
Japanese occupation, where, in addition to Confucian ethics,
elementary science and practical knowledge were intro-
duced. When Taiwan was restored to the Republic of China
in 1945, the primary school enrolment rate was 81 per cent
for boys and 61 per cent for girls.
World War II destroyed much of the Taiwanese infra-
structure and lowered farm output by 36 per cent.
Production and distribution did not reach pre-war levels
until 1952-53. By 1954 agricultural output had increased
and the small manufacturing and service sectors had greatly
expanded their productive capacity. Throughout the 1950s
agriculture's share of net domestic product was over 30 per
cent and the services accounted for over 40 per cent. The
period 1965-81 was a turning point for Taiwan's economic
industrialization. The economy was restructured on the basis
of the widespread usage of modern technology. Resources

were more effectively allocated. A turning point occurred in
1965 when manufacturing's share overtook that of agricul-
ture. By 1981 manufacturing's share of net domestic
product was 45 per cent, while agriculture's share was less
than 10 per cent. By 1981, the manufacturing sector em-
ployed 42.2 per cent of the labour force, in comparison with
only 22.3 per cent in 1965. By 1981, the agricultural sector
employed less than one-third of all workers, in comparison
with over half prior to 1965. Over the past four decades, due
to a combination of government macroeconomic policies, a
cheap and hard-working semi-skilled labour force, strong
private entrepreneurship and a peaceful international
environment, Taiwan has undergone a successful transfor-
mation from a poor, underdeveloped backwater to a newly
industrialized area. Between 1952 and 1989, it experienced
an average annual percentage increase in real per capita
income of 6.3 per cent. With the most rapid growth experi-
enced anywhere in the Third World, Taiwan has achieved a
persistent reduction in poverty and a most equitable distri-
bution of income, in spite of some increase in differences in
recent years. Taiwan has experienced considerable govern-
ment intervention, ranging from ownership of public
enterprises to an extraordinary use of import-limiting meas-
ures, special credit facilities, and so on (Wade, 1990). The
critical element in Taiwan's economic transformation was a
change from a development strategy of import substitution
to one of export promotion. In the 1950s and early 1960s it
was commonly held that developing countries needed to
adopt an import-substitution strategy, that is, to produce
domestically (under protection if necessary) goods that had
been previously imported. But Taiwan's government
planned to promote exports. As a result, Taiwan's exports
were increased and the economy prospered.
Education is widespread (Liu, 1992). The nine-year com-
pulsory elementary education is supplied completely free of
charge to students and their families. There are also many
publicly funded senior high schools, colleges and univer-
sities, charging low fees. Even private schools receive large
subsidies or grants from the government. Public outlay for
education, the sciences, and cultural services have increased
from 14.6 per cent of total government expenditures in

1965-70 to 18.7 per cent in 1981-85 and 20.2 per cent in
1986-88, respectively (Chang, 1992). There have also been
important improvements so far as freedom and democracy
are concerned. On July 14, 1987, the early 40-year-Iong
martial law was lifted. Restrictions on new political parties
and newspapers were removed. These actions indicated sig-
nificant progress towards democracy and respect for human
rights. Political power has become more diffused. New polit-
ical parties and interest groups have been formed. People
have become more concerned with public goods and exter-
nalities like infrastructures and the environment. More and
more people have become engaged in public activities
related to the environment, health care and culture.
Hong Kong and Singapore
Whatever you do, crush the infamous thing, and love

those who love you.
Voltaire (1694-1778)
Both Hong Kong and Singapore are city states influenced

heavily by Western traditions of governance. Both were
British colonies. Singapore and Hong Kong were islands
with small populations and economic activities until they
were developed as ports and trading stations mainly using
migrated Chinese labour in the 19th century under the
British. The basic resource was the skill and enterprise of the
population.
Hong Kong is located on the southeastern coast of China.
Before the Second World War and immediately afterwards,
Hong Kong mainly played a role of an entrepot economy
that conducted trade between China and the rest of the
world. Following the Japanese surrender in 1945 and the
Communist victory on the mainland in 1949, many Chinese
went to Hong Kong. Many Shanghai entrepreneurs from
China in 1949 brought their own machinery, foremen and
rerouted machinery orders to Hong Kong. These entrepre-
neurs began exporting textile products to the United
Kingdom and other industrial economies. The population
increased from 600 000 in 1945 to more than 2 million in
1951. Political and economic behaviour of the immigrants

provided a steady supply of entrepreneurs. With a hard-
working obedient Chinese working force, the colonial
government experienced both social and political pressures
(Woronoff, 1980; Lethbridge, 1980).
Singapore is a small island, 176 kilometres north of the
equator and just south of peninsular Malaysia, to which it is
linked by a causeway. It covers only 622 square kilometres
and has a population of about 2.6 million. About 75 per cent
of its residents are of Chinese descent, 15 per cent are
Malayan, and 6 per cent are Indian. Mter its independence
in 1965, Singapore changed its economic strategy to develop
a more open economy. This emphasized integration into the
world economy and the carving out of a place in the inter-
national division of labour. It has adopted liberal economic
policies and the main objective of national policies has been
the pursuit of rapid economic growth. Politicians opt for an
active development role for the state in promoting industri-
alization. It has succeeded in establishing a close integration
with the international economy.
Hong Kong had been governed by a laissez-faire govern-
ment (not in a strict sense as there has been extensive
government control of land use and provision of public
housing). Its main body consisted of British civil servants.
The Singaporean government is dominated by a single party
and an elite bureaucracy. It has intervened extensively in the
economy, promoting domestic saving, channelling invest-
ment to certain sectors and providing generous physical and
social infrastructure to attract direct foreign investment.
Aside from excellent harbours and easy access to the sea,
Hong Kong and Singapore lack natural resources. They have
similar cultural, political and institutional backgrounds and
are both heavily dependent on external markets for econom-
ic development. Since 1960, the economies of the two areas
have grown at spectacular rates, higher than those of most
countries around the world during the same period. It is
often argued that the miracles are partly due to the British
governing style and the hard work and frugality of Confucian
ordinary people. In both regions some Confucian values can
still be identified (Redding, 1993; Chen, 1995; King, 1996).
Like Taiwan, both have prospered economically with
improved distribution of income. These three 'mini-dragons'

provide examples that a fast-growing economy need not also
experience deterioration in income distribution.
Mainland China
If my principles are to advance, it is so ordered. If they are

to fall to the ground, it is so ordered.
Confucius
Mainland China established social order only after 1949.

Before 1949, there had been no consensus among Chinese
people (Schrecker, 1991). Before the collapse of the Qing
Dynasty in 1911, the Han Chinese were under control of the
Manchus. Since then China was characterized by chaotic
domestic conflicts among local warlords without any central
authority or national consensus (Feuerwerker, 1995). There
is much controversy about the role of the Western powers
and Japan in China's industrialization before the Liberation.
Since 1949, the Communists attempted modernization in an
almost closed society. As a consequence of cultural isolation
and the continuation of traditional practice, the Cultural
Revolution further destroyed China in many aspects (Zhang,
1998). A turning point came in 1978 when economic reform
was started.
At that time, people were living at mere survival level; most
of the population was poorly educated, the cultural heritage
was in ruins, and the environment had deteriorated. The
critical turning point for economic policy came when the
Third Plenum of the Eleventh Central Committee was held
in December 1978. The Third Plenum officially declared that
the focus of the Party was now to be turned to economic de-
velopment. The purpose of the reform was to modernize the
economy by allowing market forces to guide allocation and
distribution decisions, to re-arrange economic structures, to
decentralize the over-concentration of central authority in
economic planning, and to use material incentives as the key
to raising economic efficiency. Chinese economic reform has
been characterized by a trial-and-error approach that calls
for a gradual transition and partial reforms focusing on
certain sectors and regions in a sequential process. The
economic reform was first started in the agricultural sector

before China carried out industrial reform and set up special
economic zones to lure foreign capital. Since the country was
opened, the size of the domestic economy has grown ex-
tremely rapidly by world standards. Its economic relations
with the rest of the world have also grown correspondingly.
Although the Communist Party has insisted on retaining a
monopoly on political power, ordinary people reaped enor-
mous benefits, including expanded personal freedom, from
the economic reform. The state lost its power to deny work
and thus affect an individual's livelihood as private employ-
ers offered an alternative source of survival. The standard of
living has steadily increased. The Chinese now enjoy more
choice regarding where and how they live. People travel
more, both within China and abroad (Harding, 1987; Riskin,
1987).
The rural reforms brought about a dramatic improvement
in production. Agricultural gross output value grew by no
less than 9 per cent per year between 1978 and 1984. The
structure of rural production became more diversified as a
result of the relaxation of the 'grain-first' policies of the past.
Rapid growth and diversification in agriculture finally began
to improve the quantity and quality of the average diet.
Moreover, cotton production also ended its stagnation with
an average annual increase of 17.5 per cent between 1978
and 1984. With growing output came higher incomes. The
average per capita net real income in a sample household
survey of the rural population more than doubled between
1978 and 1984. For the first time in many years, the Chinese
diet began to improve, with significant additions of protein
and fats. From 1978 to 1990, the amount of grain available
for human consumption increased from 195 kg to 240 kg per
capita. The amount of meat and vegetable oil increased from
8.1 kg to 20.1 kg and from 1.6 to 5.7 kg, respectively (Tuan
and Webb, 1993).
The introduction of market forces to industrial and urban
areas proceeded at a much slower pace than in the rural
areas. The urban reform was mainly started in 1984 with the
Party's Decision and the 7th Five-Year Plan, even though the
enterprise reform programme had been underway since the
end of 1978. In 1984, the government carried out the first
m~or price reform by decentralizing the control of several

hundred prices. In May 1988, price reform was further
carried out, in spite of mounting inflation. In September
1988, faced with rampant inflation, this plan was abandoned.
The policy was focused on improving the economic environ-
ment, establishing economic order, slowing down inflation
and checking corruption. But the Tiananmen Square inci-
dent of June 1989 further complicated the situation. The
pace of the reform revived only in early 1992. The econom-
ic reform ended the isolation policy and has opened China to
the world. After the two decades of reform, China has
become an important trading nation, exporting and import-
ing a wide range of products and product quality is
constantly improving. Foreign enterprises and overseas
Chinese have been encouraged to invest and to establish
joint ventures. Most of the ventures involve the exploitation
of natural fuels, labour-intensive manufacturing or tourism,
plus some infrastructure projects such as power, highways,
railways and port development. Since the reform, there have
been sharp increases in foreign trade, utilization of foreign
funds (including government loans from foreign countries),
direct foreign investment, imports and exports of technolo-
gies and international scientific, technological and economic
co-operation (Pearson, 1991; Lardy, 1992; Vi, 1992).
It may be argued that a main feature of modern China has
been that Chinese intellectuals have great ideological con-
flicts with the state (Goldman, 1981; Grieder, 1981). The
traditional harmony between scholars and the state was
broken under the influence of Western civilization. Since the
economic reform was started, great efforts have been made
to improve education and spread knowledge in China
(Wang, 1991; Hayhoe, 1996). In 1977, colleges and univer-
sities began to admit students through competitive entrance
examinations based on academic performance. For the first
time in more than a decade, China had a normal freshman
year. Many research institutions and professional societies
were either reconstituted or founded. Professional ranks and
titles were restored. The government turned its policy from
the anti-professional, anti-intellectual ideology of the
Cultural Revolution to the values of efficiency, educational
achievement, and technical competence. Elements of
freedom and democracy have been introduced into Chinese

life, but very slowly, in a manner similar to Japan's, Korea's
and Taiwan's initial stage of industrialization.
The Confucian Principles and Industrialization
No period of history has ever been great or ever can be

that does not act on some sort of high, idealistic motives.
Alfred North Whitehead (1861-1947)
This book is mainly concerned with Confucianism and its im-

plications for modernization. I believe that the Confucian
principles are basically suitable for modernization but (many
of) the concrete manifestations of these principles designed
for agricultural economies do not promote modernization.
From this basic point of view, I conclude that industrializa-
tion processes of each Confucian region should be a process
to further promote the Confucian principles rather than to
work against them. Instead, current policy is to abolish (some
of) the Confucian practices and design or imitate (from the
West) new rules and concrete moral standards and to try to
enforce them, rather than to pursue the traditional practice.
Having analysed various schools of Confucianism in the
preceding chapters, I intend now to summarize the main
Confucian principles (ethical, political and economic) which
are commonly held by all the schools of Confucianism re-
viewed in this book thus far:
1. Free will and rationality

Confucianism views society as changeable rather than sta-
tionary and as organic rather than mechanic. It admits the
existence of universal truth or the Way; but it does not hold
that the Way has been fully found by any individual. The
'Chinese bible', the I Ching, includes the traditional Chinese
belief:
all the movements under the sky are constantly subject to
the one and the same rule.
But in reality, over many centuries no rational Confucianist
had claimed that he could find a universal principle applic-
able everywhere. In The Doctrine of the Mean, Confucius says:
The empire, its State, and its families, may be perfectly

ruled; dignities and emoluments may be declined; naked
weapons may be trampled under the feet; - but the course
of the Mean cannot be attained to.
Lao Tzu said,
The way that can be spoken of is not the constant way; The
name that can be named is not the constant name,
a saying that is like a proverb in traditional China.

It is commonly held in Confucian tradition that the mind
is an 'isolated' existence in the sense that it is not determined
by any other external existence such as God or the State.
Each mind is individual but follows the Way or the universal
principle. Each mind is naturally equal to any other mind.
On the basis of this general vision, Confucian tradition holds
that the gentleman should employ others as an end but not
as a means just as the gentleman does not perceive himself as
a means to other men in society. This implies that the
Confucian gentleman is not a means to serve the State or
God (in a religious sense). The gentleman is capable of
rationally constructing a moral world in his own mind and
will make sincere efforts to follow the moral principles of his
world. There is no external concrete authority except one's
own mind which can identify concrete truth. Before truth
everyone is free and equal. Confucianism is rational and free
in this sense.
2. Natural equality and social inequality

Man is born naturally equal in the sense that each man's
social position is solely determined by his own quality in
being human and has nothing to do with any external factor
such as family background or race. In Confucian tradition
it is the mind that really matters in being human. For the
mind to be good, it needs to be active, constantly learning
and practising. Men are naturally equal but not necessarily
socially and economically so. There is a permanent belief in
Confucian tradition that a good society should be hierar-
chically organized with virtuous and talented men at the
top. This structure is not to serve any privileged class or
group of people, but to best serve the people. By putting

cultivated and talented people in important positions,
society benefits as a whole. A typical Chinese feature of social
structure is the close identification of the scholar with the
state. This close relationship is often traced back to the
policy of the Shang dynasty (to c.1100 Be), where literacy
emerged as a prerogative of the ruler, and the literate
person or scholar was by nature and tradition oriented
toward state problems. One's virtue, efforts, and talent are
the only factors determining one's social class.
3. Self-cultivation through education and equal opportunity in

education
Men are born without much difference at the time of birth,
even though men may display great difference in talent due
to life experiences and the initial 'small difference' (a small
difference may lead to a large difference in a nonlinear
dynamic world as we now know). Self-cultivation through
education and learning is emphasized. Since there is no dis-
crimination against men, education and social position
should be accessible to anyone in society.
In Confucian tradition self-cultivation exists to make one's
thinking sincere. This is explained in The Great Learning as
follows:
What is meant by 'making the thoughts sincere,' is the
allowing no self-deception .... Therefore, the superior man
must be watchful over himself when he is alone. There is
no evil to which the mean man, dwelling retired, will not
proceed, but when he sees a superior man, he instantly
tries to disguise himself, concealing his evil, and displaying
what is good.
Confucianism is against self-deception to such a degree that
the attitude might have played a negative role in developing
'colourful aspects' of the Chinese culture. It should be noted
that some contents of the 'self-deception' in the Confucian
sense may playa positive role in speeding up industrializa-
tion as they may orient people's mind towards marketing
values as Adam Smith had well recognized in his two great
books (1759, 1776).
4. The welfare of the people and the benevolence policy

The real meaning of any government is to promote the
welfare of the people, but to serve neither the special inter-
ests of any minority, nor a special group of power holders.
The government should provide social order and stability
for people to enjoy life. A ruler is good only when he can
and will enjoy (suffer) when his people enjoy (suffer). The
government should provide benevolent policies for the
people and the people should carry out their duties.
5. Hierarchical social structure supported by talent and merit

Men are different as far as talent is concerned and different
social positions require different talents. It is necessary to
employ people according to their talents. Confucian society
is hierarchical but each level can be occupied by any member
of society as long as the individual's human capital corre-
sponds to that level in the hierarchical system. The
foundation of this hierarchical structure is self-cultivation. In
The Doctrine of the Mean, we find the following saying of
Confucius:
To be fond oflearning is to be near to knowledge. To prac-
tise with vigour is to be near to magnanimity. To possess
the feeling of shame is to be near to energy. He who knows
these three things, knows how to cultivate his own charac-
ter. Knowing how to cultivate his own character, he knows
how to govern other men. Knowing how to govern other
men, he knows how to govern the empire with all its States
and families. All who have the government of the Empire
with its States and families have nine standard rules to
follow: - viz., the cultivation of their own characters; the
honouring of men of virtue and talents; affection towards
their relatives; respect towards the great ministers; kind
and considerate treatment of the whole body of officers;
dealing with the mass of the people as children; encourag-
ing the resort of all classes of artizans; indulgent treatment
of men from a distance; and kindly cherishing of the
princes of the States.
We may argue that the Confucian socioeconomic structure is
designed to produce increasing returns to scales economies
in society as a whole (Zhang, 1996, 1999).
6. Mutual obligation rather than law in maintaining social justice

A civilization is characterized by its moral codes and legal
systems. These provide criteria for the punishments and
rewards in social games. They are essential factors which
affect the incentives of human behaviour in the long term.
Moral codes and legal systems vary over time and space.
Their evolution is one of the most significant aspects of
human evolution. It may be argued that a basic step in
understanding a culture is the investigation of its moral codes
and legal systems. In Confucian tradition, social order and
justice are maintained by mutual obligation in terms of virtue
and ceremony rather than law. In some sense this tradition
can still be identified in modern Japan (Hajime, 1967;
Okimoto and Rohlen, 1988; Wolferen, 1989). It is tradition-
ally believed that the ritual order constitutes the basis of the
social order. The emphasis on situational judgement rather
than logic and situation-independent rule is a serious
problem for maintaining social justice in mainland China's
modernization.
It should be remarked that as far as thought is concerned,
Confucius did not argue that law should not be obeyed and
that society should not have law. But due to the lifestyles of
the farmer and the isolated character of the traditional
Chinese agricultural society it might be more advantageous
to employ virtuous models and ceremonies in the Confucian
way than law in order to run traditional Chinese society. This
practical reason might explain why most Confucianists pre-
ferred ceremony to law in order to maintain social order and
justice. In fact, conflicts in choice between mutual obligations
and law have never ceased throughout China's intellectual
history. For instance, there is one philosophy, Legalism,
which advocates the universal standardization of behaviour
by explicit laws impartially applied. Law is the means for en-
forcing the principle of natural equality. It has no favourites.
Han Fei-tzu who died in 233 Be held that the law does not
fawn on the noble. He said that whatever the law applies to,
the wise or powerful cannot reject nor can the brave defy. He
advocated that punishment for fault should never skip minis-
ters and reward for the good never miss commoners. His
belief may be summarized in one sentence: 'Everyone is equal
before the law'. But orthodox Confucianism stands directly
Industrialiwtion of the Confucian Regions 183
opposed to the Legalists. But there are exceptions even

among the Confucian schools. For instance, Wang An-shih, a
Sung Confucianist, proposed a heavy reliance on laws and
institutions in order to maintain society in terms of the
Confucian image of good order. His insistence on laws and
institutions, and wealth and power made him an extreme
Confucianist. His proposed reforms were mostly related to
wealth and power. His reasoning was that the emphasis on
wealth was tied to the legitimate Confucian goal of ensuring
the people's livelihood, and the defence of the realm was
necessary to peace and harmony.
7. The values of social symbols and the rectification of names

Social symbols, like wealth, teacher and emperor or ruler, are
significant in society. People should show respect to different
symbols according to what they stand for. On the other hand,
the doctrine of the rectification of names requires that there
should be a correct correspondence between the actuality
and the essence that the symbol is supposed to stand for. If
one is virtuous and talented, one should hold power, obtain
riches, become respected, and live long as well. This is to
follow rather than be against the Way. This is illustrated by
Confucius' following saying in The Doctrine of the Mean:
Therefore having such great virtue [like Shun], it could
not but be that he should obtain the throne, that he should
obtain those riches, that he should obtain fame, that he
should attain to his long life. Thus it is that Heaven, in the
production of things, is surely bountiful to them, accord-
ing to their qualities.
In fact, the Confucian system is quite unique in the sense that
it treats morality, ethics, talent, efforts, income and wealth
distribution, 'distribution of social symbols', punishment and
rewards within a single organic whole.
8. Market mechanism with government intervention

In a good society, the government should intervene as little
as possible in people's economic affairs. Taxation should be
as low as possible. The less involved in economic activities
(and education) the government is, the better for society.
People should be rewarded differently according to merit
rather than according to working hours. Moreover, the

government should maintain public infrastructures (in par-
ticular, irrigation systems) in good condition.
9. Love with different degrees of intensity

Love should be cultivated with different degrees of intensity.
There is no such concept as the love of God or of Heaven in
Confucianism. True love begins with self-cultivation.
Without a cultivated mind, man cannot achieve true love.
One should extend this self-cultivation to the love of one's
own parents, then to one's brothers and sisters (blood-tied
family), and then to society in general. In China, family is
treated as the basic unit of social, economic and emotional
calculation; while in Japan it is the group (Zhang, 1998).
Confucianism holds that human relationships should be
established on the basis of 'gains' (in terms of communication
pleasure, or virtue, or monetary profit), rather than on the
assumption of serving some abstract principle or symbol.
10. Respect for hard work and appreciation of frugality

Hard work and frugality are highly valued in Confucianism.
Since wealth is a respectable symbol in a just environment,
hard work for the purpose of acquiring wealth is also highly
valued in Confucianism. Knowledge accumulation for the
purpose of earning a high salary is considered a commonly
acceptable purpose of education. Education in general is not
supposed to serve some abstract principle.
11. Emphasizing social harmony and justifying rebels against

corrupt governments
Confucianism emphasizes harmony among various social
groups on the basis of virtue, talent and merit. But this does
not mean that Confucianism requires that people blindly
obey authority. Since truth is given (or discovered) by man,
society does not have a god-like figure who is able to make a
final decision about truth. Truth is uncertain and requires
that the concrete mind judge it in special circumstances. No
concrete authority, like the emperor, is entitled to be the final
judge of truth. People are entitled to be against any authority
ifit is wrong. The people are endowed with the right to rebel,
not to mention freedom of speech in Confucian tradition.
There have been many studies about how each of the

Confucian regions is Confucian in modern times (Smith,
1959; Jansen, 1965; Morishima, 1982; Tu, Heitmanek and
Wachman, 1992; Tu, 1996). There has also been an increas-
ing concern with the impact of Confucianism on
industrialization of the Confucian regions. This book is not so
much concerned with these kinds of (scientifically almost not
provable) issues. As the orthodox philosophy for Chinese
civilization for over 2500 years, Confucianism has influenced
the Chinese mind on both conscious and unconscious levels.
Confucianism has influenced the Chinese mind in multiple
ways, through the Confucian teachings, the arts (which were
inspired by Confucianism), literature, poetry, customs and
ceremony. The mind affects action. The connection between
Confucianism and action (including political and economic
decision making) is found in the mind. It is obviously difficult
to precisely measure how Confucianism affects the minds of
the Confucian regions in modern times.
Because of their 'inferior' position since the Opium War,
some people of the Confucian regions may tend to devalue
their own cultural achievements. A modern Chinese may be
proud of being called rational or Westernized but be
ashamed of being called Confucian. This emotion may influ-
ence one's judgement of Confucianism and its impact.
Shakespeare's saying:
Yet who knows not, conscience is born of love?
illustrates my point. In the Confucian classics, The Great
Learning, we read:
Men are partial where they feel affection and love; partial
where they despise and dislike; partial where they stand in
awe and reverence; partial where they feel sorrow and
compassion; partial where they are arrogant and rude.
Thus it is that there are few men in the world, who love,
and at the same time know the bad qualities of the object of
their love, or who hate, and yet know the excellence of the
object of their hate.
It is not an easy matter for people in the Confucian regions to
judge Confucianism impartially. Since Confucianism was
created in mainland China and Confucianism had influenced
the Confucian regions for such a long time, it is reasonable to

expect that there are varied feelings toward Confucianism
among the Confucian regions (Tu, 1996).
Even if we assume that the entire industrialization process
of the Confucian regions has been due to Western influence
without any direct impact from Confucianism, this does not
imply that the Confucian principles do not suit moderniza-
tion. Confucian doctrines exist, independent of whether the
Chinese or the Japanese or the Koreans use them. A modern
Chinese may like to read Adam Smith's The Theory of
Sentiments but disregard the existence of the Analects. But this
does not mean that there is no similarity between the two
thought systems. Mencius says:
There are the foot-paths along the hills; - if suddenly they
be used, they become roads; and if as suddenly they are
not used, the wild grass fills them up. Now, the wild grass
fills up your mind.
I consider it meaningful to re-examine Confucianism since I
hold that if we use the old roads constructed by Confucius
and his followers, we may be able to more deeply understand
the processes of industrialization of the Confucian regions
and gain new insights about the futures of these regions. It is
quite possible that by following these forgotten ways (and if
necessary, making some improvements for modern travel-
lers) one might discover some new areas of civilization.
In the remainder of this chapter, I will use the Confucian
principles to explain some common features of the successful
economic stories of the Confucian regions. It should be em-
phasized here again that it is not my purpose to prove that
any particular aspect in any particular Confucian region is
actually due to the impact of Confucianism in modern times.
But I argue that, at least, if the Confucian regions had deeply
understood the Confucian principles and had applied them
to reality, they might have made social and economic
progress more rapidly and there might have been less cul-
tural misunderstanding between the West and the Confucian
regIOns.
THE PEOPLE'S LIVELIHOOD AND MASS EDUCATION
If a truly royal ruler to arise, it would still require a gener-

ation, and then virtue would prevail.
Confucius
Knowledge about nature, man and society plays an essential

role in modern economic development. A main feature of
Confucianism is that it highly values knowledge and its social
and economic role. Classical Confucian tradition holds that
the first thing for the government to be concerned with is
providing the people with a basic livelihood. Once the
people's livelihood is secured, education should be spread.
As has been said, Confucius advised that the government
should make the people rich and then make them educated.
This is further explained by Mencius as follows:
They are only men of education, who, without a certain
livelihood are able to maintain a fixed heart. As to the
people, if they have not a certain livelihood, it follows that
they will not have a fixed heart. And if they have not a
fixed heart, there is nothing which they will not do, in the
way of self-abandonment, of moral deflection, of depravi-
ty, and of wild license .... Therefore an intelligent ruler
will regulate the livelihood of the people, so as to make
sure that, above, they shall have sufficient wherewith to
serve their parents, and, below, sufficient wherewith to
support their wives and children; that in good years they
shall always be abundantly satisfied, and that in bad years
they shall escape the danger of perishing. Mter this he
may urge them, and they will proceed to what is good, for
in this case the people will follow after that with ease .... It
never has been that the rulers of a state where such results
were seen, - the old wearing silk and eating flesh, and the
black-haired people suffering neither from hunger nor
cold, - did not attain to the Imperial dignity.
The people's livelihood, rather than an ideology or religion,
is the essence for the state. The government should first
guarantee the livelihood of the people so that they will work
in harmony (with the state). But material living conditions
are the 'initial concerns' of the government in socioeconomic
development processes. As soon as livelihood is secured, the

government should spread education. It should be noted
that the contents of traditional education are different from
those of modern education. This implies that even if the
government is economically oriented, a modern government
should emphasize science and technology for economic pur-
poses because science and technology are basic to economic
development. A man does not need much training in order
to dig the earth in a traditional economy; but a man must
have basic education in order to become a modern worker.
This change in economic production means that it is neces-
sary to carry out policies and mass education at the same time
in order to secure the people's livelihood. The industrializa-
tion of the Confucian regions was initiated with economic
reforms as well as education.
Human capital plays an increasingly important role in
economic production in modern times. Education and train-
ing are significant in determining qualitative aspects of the
labour force. It will not be surprising to learn that the eco-
nomic success of Japan and the four tigers, these five
resource-poor regions, is closely related to their emphasis on
human capital accumulation by education. As far as patterns
of industrial processes are concerned, Japan and the four
tigers had followed similar patterns of economic develop-
ment. Political freedom was not emphasized but the people's
livelihood and training in science and technology were em-
phasized in the initial stages of their economic development.
These regions were once called 'economic animals' because
they were extremely economic-oriented in their take-off
stages.
In modern China, Confucius was repeatedly criticized
before the economic reform was started. Confucianism was
perceived as a symbol ofthe evils of society. Moral education
(ideology) rather than the people's livelihood was the main
concern of Chairman Mao and the Party. With regard to the
reason for mainland China's poverty before the economic
reform, we quote Mencius:
Now, the livelihood of the people is so regulated, that,

above, they have not sufficient wherewith to serve their
parents, and below, they have not sufficient wherewith to
support their wives and children .... In such circumstances

they only try to save themselves from death, and are afraid
they will not succeed. What leisure have they to cultivate
propriety and righteousness?
RATIONALITY WITHOUT EXTREME IDEOLOGY
The people may be made to follow a path of action, but

they may not be made to understand it.
Confucius
Confucianism considers society to be an organic whole. It is a

rational force that flows in a dynamic sense and has different
currents. It has the capacity to interact with other religions
and thought systems. There is no Confucian community that
one may join analogous to a church, shrine, or synagogue.
But this does not mean that there is no belief. From the very
early days the Chinese believed that each existence implies a
certain principle. In the Book of Odes which is one of the basic
Confucian classics, consisting of 305 poems from the Shang
dynasty (1766-1045 BC) and the various states of the early
Chou (1045-256 BC) we read:
Heaven produces the terming multitude;

As there are things, there are their specific principles (tse).
In Confucian tradition it is deeply believed that inherent in

every single thing there are specific principles about its
being.
In Confucian tradition it is held that everything is change-
able and it is not proper to fix one's thought in extremes (yin
or yang in popular terms). When the Confucian mind is con-
cerned with social systems, it will not accept either socialism
or capitalism (the two extremes of Western rationalism) as
its ideal. The good in reality (not necessarily with regard to
intellectual speculation) lies somewhere in between. This
mentality is illustrated by Mencius' following saying:
The principle of the philosopher Yang was - 'Each one for

himself.' Though he might have benefited the whole
empire by plucking out a single hair, he would not have

done it. The philosopher Mo loves all equally. By rubbing
smooth his whole body from the crown to the heel, he
could have benefited the empire, he could have done it.
Zimo holds a medium between these. By holding that
medium, he is nearer the right. But by holding it without
leaving room for the exigency of circumstances, it becomes
like their holding their one point. The reason why I hate
that holding to one point is the injury it does to the way of
right principle. It takes up one point and disregards a
hundred others.
We see that neither socialism nor capitalism will find a
lasting home in the (educated) Confucian mind. Although I
do not intend to expand upon 'the two extremes of Western
rationalism', for illustration on the limitations of capitalism,
I refer the reader to Schumpeter (1928, 1950) and on the
limitations of socialism to von Mises (1981). These books
explore the issues from a dynamic viewpoint, even though
each of them is unidirectional. If one carefully reads them
in parallel, one may form more than a partial judgement
about the dynamics of socialism and capitalism as a result.
The traditional scientific mind seems puzzled by the polit-
ical practice of the successful Confucian regions. Japan,
South Korea, Taiwan and Singapore did not seem to accept
any Western ideology such as socialism or capitalism. Hong
Kong is an exceptional but complicated case in this respect. It
may be argued that these regions are characterized by polit-
ical flexibility. Since the economic reform started, this
Confucian character had also been reflected in the political
practice of mainland China.
OBJECTIVE SYMBOLS AS SOCIAL SUCCESS
The love of praise-worthiness is by no means derived al-

together from the love of praise. Those two principles,
though they resemble one another, though they are con-
nected, and often blended with one another, are yet, in
many respects, distinct and independent of one another.
Adam Smith (1759: 114)
Industrialiwtion of the Confucian Regions 191
Socioeconomic transformation is not only a process of de-

veloping and applying science and technology to economic
production and consumption, but also a process of trans-
forming values of social symbols. 'Social values distribution'
of varied professions differ in agricultural and industrial
economies. For instance, social rank in China had been de-
termined more by qualification for office than by wealth. This
qualification was determined by education. Traditional
China made literary education the yardstick of social pres-
tige. Successfully completing one's examination was the most
important step toward class advancement. The literati had
definitely been the ruling stratum in China before the col-
lapse of the Qing Dynasty. Their dominance was often
interrupted; but it was always renewed and expanded.
Merchants on the other hand tended to be looked down
upon in practice. Contemporary Chinese people tend to have
a 'balanced' view of merchants and scholars. The 'social value
distribution' of the various professions shift so rapidly in
modern times that it is difficult to foresee what professions
will be socially or economically 'profitable' in the next decade
in the developed economies. It may be argued that whether
or not a society is able to create and maintain new 'social
value structures' in a proper way strongly affects its econom-
ic development. If a society does not adapt a new value
system of social symbols which is more suitable for promoting
economic development than its traditional one, then its eco-
nomic development may be delayed. In this sense it is
important to examine how each industrial Confucian region
has adapted and developed new symbol systems in order to
understand its industrialization process.
In Zhang (1998) it is argued that the contents of tradition-
al Confucian learning did not benefit economic development
because it wasted talent, time and resources and the educat-
ed officials had few opportunities to improve the economic
efficiency of the rice economy. Hence, despite the high
respect for learning in China and the practice of social mo-
bility as a result of learning, Chinese life had not become
materially comfortable. However, as a result of industrializa-
tion, the operation of economic laws changed. The secret of
Japanese success is that Japan practised the traditional
Chinese principles: social positions are determined by merit
and learning. The reason for China's slow economic devel-

opment until the economic reform is that it had destroyed
this traditional Chinese practice. It is important to remark
that each industrial Confucian region has adopted, except
the Confucian principles mentioned above, Confucius' own
attitude toward profit:
If the search for riches is sure to be successful, though I
should become a gatekeeper with whip in hand to get
them, I will do so. As the search may not be successful, I
will follow after that which I love.
It can be seen that modern proponents of the Confucian
regions appear to be quite 'Confucian' in their social and aca-
demic activities.
Irrespective of its emphasis on self-cultivation,
Confucianism greatly values objective symbols such as official
positions, wealth and educational degrees. As far as practice
is concerned, the Chinese always paid high respect to the
people sporting high social symbols (such as power and
learning). To have power almost means to be rich in
Confucian tradition. The association of (just) power with
wealth is theoretically justified. In traditional China and
Korea education is seen by most people to be a prerequisite
for power (and consequently social respect and money).
Since the Meiji Restoration, education has become a signifi-
cant symbol of social position in Japan.
An important feature of capitalism is an intense personal
interest in the pursuit of profit on the part of the people who
are most involved, for instance, the businessmen, capitalists,
entrepreneurs, and so forth. The all-consuming passion is
capital accumulation for its own sake. Keynes put it very well
when he said that the essential characteristic of capitalism is
an intense appeal to the money-making instinct of individ-
uals (Keynes, 1936). He characterized capitalism as the belief
that the nastiest of men for the nastiest of motives will work
for the good of us all. The emphasis on seeking after objec-
tive symbols as concrete goals of one's life (rather than
serving some abstract symbol) means that it is theoretically
not difficult to switch the Confucian mind from scholarship
to materialism. Objective rather than spiritual symbols are
concrete and have a clear fixed goal in sight. People might
search for that goal without deeply inquiring into the

'meaning' of that goal.
The Chinese mind is pragmatic and devoted to seeking
'profit'. But in traditional (agricultural) China this profit was
defined in a complicated way. It included 'academic face'
(intellectual standing), material rewards and other social
rewards. People work hard to accumulate their 'wealth',
which was not necessarily oriented to economical activities. It
is important to note that the Chinese mind is traditionally
devoted to hard work in order to pursue concrete goals (such
as scholarship or official position) because the Chinese official
and economic markets are merit-dependent and competi-
tive. Chinese people of traditionally peripheral regions (such
as South China) did not 'benefit' from traditional practice but
basically held the same value structure. When they found
themselves in a new environment and escaped the control of
the central regions (which benefited from traditional prac-
tice), they rapidly accepted symbols such as wealth (rather
than scholarship, which is controlled by the central region).
This partially explained why the Chinese in South China and
overseas have adapted to materialism much more rapidly
than the so-called cultural regions of China.
In the case of Japan, the situation is different to that of
China. Before the Meiji Restoration, the social structure was
almost fixed. Birth rather than education determined one's
social class. The Japanese chose different symbols of social
importance before the Meiji Restoration from the tradition-
al Chinese. Education was socially respected since
Confucianism was accepted as the state ideology. But in
practice education did not playa large role in social mobil-
ity. There was no dominant elite class that would prevent
new knowledge from being introduced into Japanese
society. The real significance of the Meiji Restoration for
Japan was to restore the Confucian principle that a man's
social value is determined not by birth but by merit and ed-
ucation. Since Japan traditionally respected rationality and
learning (the main characteristic of Confucianism) and there
was no dominant social group to 'control' learning, the
Japanese mind was able to rapidly switch from Tokugawa
Confucianism (of the fixed-class system) to the traditional
Chinese symbol system of mobile class structure with
education as the main criterion (Morishima, 1982; Zhang,

1998).
MARKET MECHANISMS AND GOVERNMENT

INTERVENTION
He who knows himself and other,

Will also recognize that East and West cannot be separated.
Goethe (in Clarke, 1997)
It may be argued that as far as economic policy is concerned

the economic successes of the industrial Confucian regions
and mainland China are mainly due to practising market
mechanisms with government intervention Oohnson, 1982;
Nakamura, 1983; Okimoto, 1989; Scitovsky, 1990; Ito, 1992;
Sheridan, 1993; Pempel and Muramatsu, 1995). Although
the development of market economies of the Confucian
regions have been heavily influenced by Western economic
theories and inspired by Western practice, the idea of eco-
nomic freedom with proper government intervention is
actually not new in the Confucian regions. Economic
freedom with minimum government intervention is a main
feature of Confucianism.
The significance of the influence of the East on the West
has been interpreted in widely differing ways. As Clarke
(1997) pointed out, if we divide the significance into two
poles - the West owes everything to Eastern civilization on
the one hand, and the West owes the East nothing on the
other, we may note that the space between the two poles is
fully occupied. Voltaire stands for the pole that the West
owes almost everything to the East's civilization. Some
people may believe that the West owes nothing to the East.
Goethe and Needham are examples located between the two
poles. As far as the Confucian political economic principle is
concerned, the most important figure in the West is Franc;;ois
Quesnay (1694-1774).
Quesnay lived in the age of Enlightenment which was an
epoch in which the Europeans re-examined European
culture and learned from other cultures. In the
Enlightenment China was perceived as a model of society,
subject to the rule of law and the maximization of the happi-

ness of the people (Maverick, 1938, 1946; Ching and Oxtoby,
1992). Both in France and in England the fact that China,
under the impulse of Confucianism, had long since virtually
abolished hereditary aristocracy, was used as a weapon to
attack hereditary privilege. French thinkers paid close atten-
tion to Confucianism in the early period of the
Enlightenment (Clarke, 1997).
Quesnay admired the rational principle of the Chinese
constitution. In particular, he greatly admired the education
system in China which helped the state select talented people
for public service through a rigorous programme of study
and a competitive examination system. Quesnay began the
political principles of his influential Physiocratic doctrine
with an exposition of the government of China. In 1758 he
published his celebrated Table of Economy. In 1767 Quesnay
and his followers formally announced themselves as 'physio-
crats,' advocating the economic theory that land was the
source of all wealth and that land alone should be taxed
(Blaug, 1991). Politically they hoped for an economic reform
initiated from above by an open-minded monarch. Quesnay
considered China as a model which built its national
economy on the basis of agriculture while adhering to the
reasons and principles regulated by Heaven. In his concern
with the natural principles in accord with which prosperous
governments are constituted, he wrote:
a systematic account of the Chinese doctrine, which de-
serves to be taken as a model for all states.
In fact in his lifetime Quesnay was called 'the Confucius of
Europe' (Shen, 1996). The impact of Confucius on his school
has been actually well-recognized. Maverick (1938) stated:
The influence of the Chinese upon the physiocrats was
probably more extensive and more significant than has
generally been appreciated. If one will but look into the
matter, he can readily discern similarities in thought on
the part of Chinese sages and French economistes '"
This similarity is more than mere coincidence; it is due
to an actual borrowing on the part of the physiocrats.
With regard to the possible influence of Quesnay on Adam
Smith, Blaug (1991) held that it is Quesnay's vision that was

admired by Smith.
It is well known in the history of economics that Smith
went to France in 1764 and remained there until late 1766.
In Paris Smith met the physiocrats. He considered Quesnay
to be one of the worthiest men in France and one of the best
Physicians that one could meet in any country. Here, we see
the mental connectivity between Confucianism and Adam
Smith's economic doctrine (even though I have no idea about
whether or not Smith's economic doctrine was directly influ-
enced by Confucianism). As my three books on economic
theory show (Zhang, 1991, 1996, 1999), Smith's theory on
exchange values is quite limited as it is mainly concerned
with a stationary economy; but his theory of the division of
labour and market mechanisms is still largely valid today. As
argued before, Confucianism holds a view about the division
of labour and market mechanisms similar to that of Adam
Smith.
HARD WORK AND FRUGALITY
The psychic development of the individual is a short rep-

etition of the course of development of the race.
Sigmund Freud (1856-1939)
It appears that economic conditions have tended to converge

rather than to diverge in recent years among the various
Confucian regions. The speed of japan's growth has slowed
. down and the four tigers have quickly caught up with Japan
in terms of per capita income. Apart from the four tigers,
mainland China has already displayed the fastest growth rate
in the world for almost two decades. This tendency to con-
verge results from the fact that these regions tend to apply
similar political and economic principles. I would suggest
that these principles are mainly Confucian in a 'visionary
sense'. Successful industrialization of the Confucian regions is
characterized by strong government leadership, strict com-
petition in education, a disciplined work force, and principles
of equality (in the Confucian sense) measured in terms of
merit and frugality. The savings rates of the industrial
Confucian regions have been sustainably high for many years

(Horioka, 1990; Lau, 1990; Ito, 1992). The competition in
education is especially unique among the industrial
Confucian regions and mainland China.
A FEW REMARKS
Anciently, men had three failings, which now perhaps are

not to be found. The high-mindedness of antiquity showed
itself in a disregard of small things; the high-mindedness
of the present day shows itself in wild license. The stern
dignity of antiquity showed itself in grave reserve; the
stern dignity of the present day shows itself in quarrelsome
perverseness. The stupidity of antiquity showed itself in
straightforwardness; the stupidity of the present day shows
itself in sheer deceit.
Confucius
I have argued that the industrial processes of the Confucian

regions are characterized by converging towards rather than
diverging from Confucian principles. The continued influ-
ence of Confucianism is possibly due to the fact that it is
conducted in the form of folk tales, proverbs, historical
stories, literature, poetry, traditional customs, traditional in-
stitutions and values, traditional thought patterns and so on,
rather than as direct inspiration from reading the Confucian
classics. In fact, since Western thought has been introduced
into these regions, the Confucian classics have rarely been
read. As has been said, Confucianism had been criticized in
mainland China before the economic reform and in Japan it
has basically been neglected altogether. Since the economic
reform, however, mainland China has stopped criticizing
Confucianism on a national scale. So Confucianism has
played a subtle and complicated (and perhaps not scientifi-
cally provable) role in influencing these regions to adapt new
patterns of civilization and to join in creating new, modern
cultures.
To explain what I mean by similarity and difference
between the regions, it is obvious that human society is so
complex that no two societies can be the same. If one finds
two persons identical in all aspects, this is perhaps due to a

weakness of one's own capacity for differentiation. When we
compare two individuals, it is necessary to be clear about
what we compare and by what standards. If one makes a
comparison on the genetic level, great similarity between
men is found. If one compares knowledge structure and
morals, great differences among men of different societies is
found. When we say that the European countries, America,
Australia and Canada practise the same democratic prin-
ciples, this does not mean that there are no great differences
among them. This is similarly true between the Confucian
regions. Industrial Confucian regions may have converged
towards the Confucian principles but this does not mean that
these regions are becoming the same. In fact, differences
between the regions are growing as these societies become
more and more complicated. For this reason I emphasize
that my concern for the Confucian regions is conducted on a
visionary level of ethical, political and economic principles.
11 Democracy and
Confucianism
It would be highly foolish and presumptuous on our part

. . . to want to condemn such an ancient doctrine
[Confucianism] simply because it does not appear to agree
at first glance with our ordinary scholastic notions.
Leibniz, 1646-1716 (1994)
Great philosophies, for instance those of Socrates, Plato,

Aristotle, Kant, Confucius and Lao Tzu, are read repeatedly
and interpreted differently as time passes. They are often ne-
glected, often for many years, but they have such vitality that
they always come back with strong intellectual as well as emo-
tional force. They are subject to repeated analysis but there is
no agreement of interpretation about what they really mean.
This divergence is perhaps due to the character of intellect-
ual communication among minds: rarely are meetings
among great minds harmonious; and it is impossible for a
small mind (in the Confucian sense) to penetrate a great one.
Lao Tzu said a long time ago:
The whole world says that my way is vast and resembles
nothing. It is because it is vast that it resembles nothing. If
it resembled anything, it would, long before now, have
become small.
In China's recorded history, as far as thought about man and
society is concerned, no-one is able to compete with
Confucius in greatness, since no-one has had a greater vision
than Confucius. Mencius' and Chu Hsi's assumptions about
the goodness of human nature and Hsiin Tzu's hypothesized
evil did not lead them to a more comprehensive vision of
man and society than that perceived by Confucius, even
though they might had mastered more knowledge and con-
structed more 'logical' systems than Confucius. It seems that
Confucius followed the rule of ' one should be silent on things
which one is not sure about'.
199
One would not expect an ordinary Chinese person, living

in the West even for many years, to have a particularly sophis-
ticated understanding of Western civilization. What that
person might be able to know about are phenomena such as
divorce rates and material well-being, but not where these
phenomena come from in any deep and comprehensive
sense. Before modern times, because of communication bar-
riers, great minds from different cultures rarely had the
opportunity to meet. Few great thinkers had the opportunity
to read the work of the great thinkers of other remote cul-
tures. Some great Western philosophers displayed an interest
in and high appreciation of Confucianism during the age of
Enlightenment. But none of them travelled to China and the
material which was available to them about Chinese intellec-
tual achievements was quite limited in scope. It is interesting
to remark that even when they possessed rather limited infor-
mation about China, some great philosophers had a deep
understanding of the essence of Chinese culture. Leibniz is
an interesting case in this respect.
Leibniz's encounter with the philosophy of Confucianism
and the I Ching is the first case of a major Western thinker
seriously engaging with Asian philosophy (Shen, 1996;
Clarke, 1997).
Gottfried Wilhelm Leibniz (1646-1716), born at Leipzig in
Saxony on 23 June 1646, is one of the greatest thinkers of
Western civilization. He was one of the foremost mathemat-
icians of his time and a philosopher of enduring fame (Russell,
1937). He was the great transitional thinker between 17th-
and 18th-century rationalism in Europe. He wrote original
works on subjects as diverse as geometry, biology, geology,
theology, metaphysics and statistics. He was interested in
China from his early years and it is well known that Chinese
culture, such as philosophy, history, geography, language,
flora and fauna, and technology, interested him throughout
his life. Leibniz was enthusiastic about the mathematical impli-
cations of diagrammatic representations of philosophical
ideas in the I Ching. Mter reading the Confucius Sinarum
Philosophus, Leibniz began to consider himself a follower of
Confucianism. Leibniz wrote (Cook and Rosemont, 1994):
my philosophy is fully compatible with those elements of

Democracy and Confucianism 201
Christian theologian which there is a large measure of

agreement between Catholics and Protestants; my philoso-
phy is fully compatible with (early) basic beliefs of the
Chinese; therefore Chinese basic beliefs are fully compat-
ible with those basic beliefs shared by Catholic and
Protestants.
He stressed the need to seek harmony between competing

European national groups as well as other cultures in the
world on the basis of some agreed high principle(s).
Leibniz emphasized plurality, diversity, harmony, and a
higher-order unity that could be grasped by reason, and ex-
pressed in linguistic terms without ambiguity. Leibniz
believed in the existence of an infinitely large number of
substances, called 'monads'. They were self-contained and
could not causally affect others of their kind. They all moved
in a harmony established by God. This metaphysical vision
was claimed to bear a close resemblance to the Chinese meta-
physical view of the world. He greatly admired ancient
China's legendary 'model monarchs' of Yao and Shun,
Confucius and Mencius. Influenced by Confucianism, he be-
lieved that the rationalization of power would bring about a
'sagacious government'. Leibniz conceived the possibility of
the binary number system which is now the basis of most
computer operations. But he conceived this system not only
as a purely mathematical scheme, but also as a universal cal-
culus. It was intended to be a language that could help
reconcile the various religious factions in the European
nations as well as the nations of Asia and Europe. It is well
known that the I Ching had been supposed to be such a lan-
guage in traditional China. Like Chu Hsi, who made
attempts to combine and synthesize various Chinese philo-
sophical systems in a compact framework, Leibniz had the
ambition of establishing a universal philosophy which would
combine and synthesize all other philosophical systems.
Leibniz believed in this as the way to harmonize the nations
of the world. As the result of his study of China, he pub-
lished a book Novissima Sinica (in Latin) in 1697. In his book
Leibniz described Chinese culture as a model for Europe in
its exemplary ethical standards. Leibniz greatly appreciated
Chinese civil life, saying that the Chinese surpassed Europe
in the precepts of ethics and politics adapted to the present

life and the use of mortals. He argued that China was far
ahead of Europe in social practice and, especially, in ethical
behaviour (Cook and Rosemont, 1994). He considered the
fine morality of the Chinese nation as an essential merit
which enabled the Chinese to continue absorbing the elem-
ents of foreign cultures and keep on changing. Leibniz held
that the Chinese ideal of beginning from self-cultivation,
obeying one's superior, putting one's family in order and
contributing to the success of the nation and the whole
world, was consistent with his conviction that 'freedom is a
force which obeys reason'. He recognized that the concept
of natural law in Europe is very like the Confucian concep-
tion of the Way (Mungello, 1977; Ching, 1977; Young,
1983). To the affective reader, it is not difficult to under-
stand why Confucianism was welcomed by this great rational
and logical mind.
It is obvious that there are close similarities between
Leibniz's theories and the Chinese systems of thinking.
There are disputes about the extent of Leibniz's indebted-
ness to Chinese philosophy. These kinds of disputes are
never settled because great creative thinkers, like Leibniz,
read widely, think deeply, and have the high capacity and
the vitality necessary to construct their own worlds. The
point is illustrated by Heidegger (1993:281):
All great insights and discoveries are not only usually

thought by several people at the same time, they must also
be rethought in that unique effort to truly say the same
thing about the same thing.
DEMOCRATIC AND CONFUCIAN PRINCIPLES
Not only do we lack any criterion that would permit us to

evaluate the perfection of an epoch of metaphysics as com-
pared with any other epoch; the right to this kind of
evaluation does not exist. ... Each epoch of philosophy has
its own necessity.
Heidegger (1993:432-3)
I will compare the basic principles of democratic theory with

those of Confucianism without becoming too deeply involved
in the theory itself. Like Confucianism, the term 'democracy'
is highly complex because of the existence of multiple schools
of democracy (Skinner, 1978; Held, 1996). It may be argued
that if any rational theory has a universal appeal for indus-
trial civilization in modern times, it is democracy. It is the
main ideology of all industrial and rational societies. The in-
dustrial Confucian regions are democratic, even though they
practise democracy in a way that is different from the West.
Institutional structures designed under the same democratic
principles display a great difference within the Western
nations. Like Confucianism in the Confucian regions before
modern times, democracy is now the language by which
rationally civilized nations are intellectually connected.
Like the concept of Confucianism, the concept of democra-
cy means different things to different people. For the Greek
democrats society was ruled by the virtuous and wise few.
Everyday business was the lot of the less worthy multitude,
with the most menial work left to the slaves. They did not
believe that 'all men are created equal'. In his social philoso-
phy Aristotle justified the slave system. In the Enlightenment
modern values of progress, equality, liberty, human rights,
individual dignity and law were developed. Although they
have been interpreted differently (just as with the main
schools of Confucianism), there are common 'key elements'
which characterize democracy. Merriam (1939) identified the
following principal elements of democracy: (1) the essential
dignity of man and the importance of protecting and culti-
vating his personality on a fraternal rather than a differential
principle; (2) belief in the perfectibility of mankind; (3) the
assumption that the gains of commonwealths are essentially
mass gains; (4) the desirability of popular decision in the final
analysis on basic questions of social direction and policy and
of recognized procedures for the expression of such deci-
sions and their validation in policy; (5) confidence in the
possibility of conscious social change accomplished through
the process of consent rather than by the methods of vio-
lence.
I summarized the Confucian principles in the previous
chapter as follows: (1) free will and rationality; (2) natural
equality and social inequality; (3) self-cultivation through

education and equal opportunity in education; (4) the
welfare of the people and the benevolence policy; (5) hierar-
chical social structures supported by talent and merit; (6)
mutual obligation rather than law in maintaining social
justice; (7) the rectification of names; (8) the operation of a
market mechanism with government intervention; (9) love
with different degrees of intensity; (10) respect for hard work
and appreciation of frugality; and (11) an emphasis on social
harmony and the justification of rebellion against corrupt
governments.
It is not difficult to see that the principal elements of
democracy basically exist in the Confucian principles. The
exception is number 4, a practical measure related to the
masses voting in modern times. It appears that this idea was
never thought of in the Confucian tradition and no
Confucianist seems to have conceived of any way in which the
mass of the people could control the government. Instead of
a vote, Confucian tradition innovated the examination
system to select the right people for governing. Another sig-
nificant difference between Confucianism and democracy is
that Confucianism uses moral codes in handling concrete
affairs and democracy strictly follows the law.
THE TRADITIONAL MANIFESTATIONS OF THE

CONFUCIAN PRINCIPLES
There is certainly more than one form ... of democracy.

I have argued that the Confucian principles are similar to

the democratic principles in many respects. But this does not
imply that the manifestations of Confucian principles are
similar to the modern manifestations of democratic prin-
ciples. In fact, it is well argued that although the economic
aspects of Confucianism were actualized, for instance, in
China, the humanistic aspects of Confucianism have never
been practised in mainland China. The main reason for this
failure in Confucian China is that traditional institutional
structures designed under the Confucian principles do not
provide accountable social mechanisms to check absolute

powers. It seems universally true that absolute power is abso-
lutely corrupt, at least in a long-term sense. The Confucian
hierarchical system with the emperor at top might be suitable
for a traditional, isolated rice-economy like China. There
were certainly some peaceful, prosperous and culturally rich
periods in the Confucian regions before modern times. But
these achievements cannot be compared with what modern
civilization is able to bring about for ordinary people. The
development of mass education on a modern scale and
society'S capacity to deal with the social and economic com-
plexity of a free society were certainly beyond the dreams of
Confucius. Although his principles are (fortunately) suitable
for modernization, many of the traditional manifestations of
these principles are unfortunately less well suited to promot-
ing modernization.
Traditional Confucianism does not believe in the unique
correspondence between a principle and its manifestations.
Multiple forms of trees can grow from the same kind of seed,
depending on the environment. Nonlinear theory provides
the same view. This implies that multiple forms of institu-
tions can be constructed on the same principle. Aristotle did
not perceive of a single form of democracy. As an environ-
ment changes, manifestations of the principle may become
varied. This is also applicable to the Confucian principles. As
far as the modernization of the Confucian regions is con-
cerned, this implies that the minds of the people of these
regions do not need new principles (there already being a
similarity between Confucianism and democracy) in order to
accept Western democratic institutions. The problem is to
get away from the traditional manifestations and disseminate
new ones. Since the principles, after many hundreds of years
of history, are deeply rooted in the Confucian regions,
democracy will itself be deeply rooted in these regions once
they complete the transformation from the traditional mani-
festations to modern ones. In fact, China has already
experienced various manifestations of the same Confucian
principles under various environments. The different
Confucianists themselves suggested varied manifestations of
the Confucian principles but at the same time they all
claimed to be loyal followers of Confucius. This adaptability
and flexibility of Confucian tradition is much due to the

depth and wide scope of Confucius' own mind and his recog-
nition of some basic elements of 'the invariant laws' of man
and society.
Due to the traditional agricultural environment, the
Confucian principles result in traditional Confucian institu-
tions and customs. But the development of science and
technology has changed man's relation to nature as well as
to himself. One may naturally ask what will happen to man-
ifestations of the Confucian principles under a changed
environment. In mainland China it has been suggested that
Confucian principles should be completely rejected and
democratic principles accepted in their stead. This would be
unwise as the democratic principles are similar to the
Confucian principles. Since modern manifestations of the
democratic principles have been created and operated
under an industrial environment, they are quite different
from the traditional manifestations of not only the
Confucian principles, but also the democratic principles.
The justification of slave systems by Aristotle under demo-
cratic principles is due to the socioeconomic environment in
which Aristotle lived. In fact, in the West democratic insti-
tutions made their dramatic gains in connection with the
American and French Revolutions. Before the two revolu-
tions the democratic institutions, like traditional Confucian
institutions, did not guarantee human rights according to
modern standards. I believe that as far as the Confucian
regions are concerned, modernization (or Westernization) is
not to adapt new principles but to imitate, adapt and create
new manifestations of the Confucian principles. I have
argued this viewpoint when examining the modernization of
Japan and China (Zhang, 1998).
The sage appears and disappears from the public eye
according to social demand. The disappearance of
Confucianism does not deny its greatness as a grand vision of
man and society. The survival of its essence is reflected in
how it suits the essence of modern civilization. Its greatness
lies in its capacity to join the mainstream of modern civiliza-
tion rather than in serving as opium for sick minds. We have
shown that Confucianism, like modern science, continually
changes. It evolves towards a more and more comprehensive
system. It has absorbed various ideas from other philosophi-

cal schools into its framework and innovated new ideas to
extend the scope of its investigation. Since Confucius' time,
each generation has added something new to the original
complex system. This continuity is largely due to the general-
ity and richness of the Confucian principles. Unfortunately,
Confucius has been rarely appreciated for his principles in
modern times; instead, he has been often criticized for the
customs and institutions which he and his followers promot-
ed for China as a rice economy. For instance, Shils (1996:71)
says this about Confucius:
He [Confucius] knew nothing of elections; competing
political parties; representative institutions; the separation
of legislature, executive, and judiciary; public discussion
and public opinion; freedom of expression and the press;
freedom of association, assembly, and petition or repre-
sentation. He is nearly as silent on the rights of
individuals. He had little interest in nationality or the con-
stitution of society by reference to the common existence
of a people living in a territory that has moral value or
metaphysical meaning to them. All of those elements of
civil society which are present in our modern idea of a
liberal democratic national society are almost totally
absent from the Analects.
It is true that Confucius knew nothing of elections (by the edu-
cated as well as the uneducated) masses in the modern sense,
but he knew of 'elections' in the sense of choosing talented and
moral men through educational processes. He knew nothing
about competing political parties (each of which is supposed to
represent truth in the genuine sense), but he said that a gen-
tleman although social, is not involved in party participation.
He was a master of analysing power struggles and actively par-
ticipated in political activities. He knew nothing about
modern representative institutions, but he emphasized the
rectification of names for each level of institutions. He knew
nothing about the separation of legislature, executive, and
judiciary, but he knew that officials must be virtuous and tal-
ented and elected through educational processes in order that
society maintain order and justice. He knew nothing about
public discussion and public opinion-making through TV and
modern media, but he adduced the investigation of people's

opinions in society and judged social situations through what
people said and felt. He knew nothing about freedom of ex-
pression and the press in the modern sense, but he himself
was not only a free speaker on varied subjects but even
'allowed' rebellions against corrupt governments. He knew
nothing about freedom of association, assembly, petitions or
representation in the modern sense, but he was alone in estab-
lishing a school conducting free education and assembled
talented pupils around himself. It is not true to say that
Confucius is almost silent on the rights of individuals (one
should not judge solely by the number of words) - the whole
doctrine of Confucianism is about the human right in the
higher sense. It is true that Confucius had little interest in
nationality or the constitution of society by reference to the
common existence of a people living in a territory that has
moral value or metaphysical meaning to them, simply
because, for him, what is human is determined by quality of
mind rather than by any superficial symbols such as race or
nationality or religion. He is a truly universal thinker. The
race problem, like the existence of God, is simply not a
concern of rational Confucianism. In this respect, Leibniz,
living in the 17th century, correctly recognized the universal
character of Confucianism. We may conclude that it is def-
initely true that 'All of those elements of civil society which are
present in our modern idea of a liberal democratic national
society are almost totally absent from the Analects'; but it is
also true that all the principles that these special forms are
supposed to represent in reality are included in the Analects
(but not in any other ancient doctrine as a whole!). The unique
continuation of Chinese civilization is due to the unique
fortune that the Chinese cultural soil and climate created a
man called Confucius.
THE EXAMINATION SYSTEM VERSUS VOTING

PROCEDURES
In the strict sense of the term, a true democracy has never

existed, and never will exist.
Perhaps the most important difference between Confucian

and democratic institutions is the selection process of officials
and leaders of various levels of institutions or social groups.
The Confucian practice is to select virtuous and talented
men through the examination system while the democratic
practice is to do so through voting by the members of a
society entitled to vote. Although it is beyond the concern of
this book to discuss the merits and disadvantages of each
procedure in detail, I argue that the voting procedure is not
necessarily superior to the examination procedure under all
social and economic conditions. This is particularly true with
regard to traditional agricultural societies in which the
majority devote their life to working the land.
In China the Mandarins who ran China for centuries were
chosen by examinations that determined their understand-
ing of the Confucian classics. Intelligence was considered
very important in traditional China since human affairs were
maintained by situational judgements rather than by law.
The Chinese examinations did not test any special technical
skills as examinations do in modern times. The examinations
of China tested whether or not the candidate had mastered
literary skills, which were essential for becoming an official.
Education was secular in nature and was bound to the fixed
norm of the orthodox interpretation of the classical authors.
The election process was fair in the sense that anyone had
the chance to go to the top of the administration. The game
has the relatively stable rule: master the classical writings and
some literary skills. The civil service examination system,
through which government officials were selected, rendered
remarkable service in traditional China.
Any concrete manifestation of an abstract principle is influ-
enced by the environment. The traditional Chinese is a
farmer. Since the majority of the population in traditional
China was attached to the land, only a few people had the
opportunity to receive higher education and few could be
well-informed about society in large. In comparison to a mass
voting procedure, the Confucian examination procedure
may be more economical and efficient for selecting talented
officials in an agricultural country with a large territory in
which lifestyles and habits were almost 'invariant' with time.
D nlike Confucius, who did not justify the existence of any
privileged class by birth, Aristotle did so in that he justified

the existence of a supply of slaves. This means that Aristotle
could perceive of the existence of a group consisting of cul-
turally more cultivated members. It is within this special
group that voting should be conducted. Aristotle argued for
democratic voting on the basis of natural inequality, while
Confucius emphasized examination on the basis of natural
equality among men under traditional economic conditions.
I have tried to show that a Confucian ruler is neither sup-
posed to be sent down from Heaven to rule the people nor
to serve some man-independent existence like God. He is
supposed to be virtuous and talented in judgement. This
virtue is reflected practically in his ability to experience joy
when the people experience joy and to suffer when the
people suffer. This leadership quality is described by
Mencius as follows:
When a ruler rejoices in the joy of his people, they also
rejoice in his joy; when he grieves at the sorrow of his
people, they also grieve at his sorrow. A sympathy of joy
will pervade the empire, a sympathy of sorrow will do the
same; - in such a state of things, it cannot but that the ruler
attain to the Imperial dignity.
The ruler is to provide the conditions for the people to live
a happy life. It is not difficult to see that the genuine purpose
of democratic voting is to elect such a Confucian leader.
By the beginning of this century, the examination proce-
dure had already been abolished in the Confucian regions.
Before the Meiji Restoration there was no elite class formed
through examination in Japan. Mter the Meiji Restoration
Japan practised this traditional Confucian procedure in
order to establish an effective bureaucratic system (Zhang,
1998). japan's successful use of the examination procedure
in its industrialization shows that traditional Confucian prac-
tice may not be an obstacle to a Confucian region set on
initiating industrialization. In fact, the four tigers had also
practised traditional Confucianism in their initial stages of
industrialization. When the masses of each of these regions
became rich and properly educated, society began to practise
voting procedures in a meaningful sense. Mainland China
appears to be following the same process.
The goal of the traditional Confucian examination system

is similar to that of democratic voting - to select a capable
leader who loves the people and who in turn is loved by the
people. Because of the complexity of modern knowledge,
high variation and rapid changes of human preferences in
industrialized societies, the traditional Confucian way does
not seem to be able to provide respectable leaders of society
in a relatively long-term sense. For better or worse, it seems
likely that democratic voting will inevitably replace tradition-
al Confucian practice in order to achieve the Confucian goal
in the Confucian regions.
DEMOCRATIZATION IN THE CONFUCIAN REGIONS
Aristotle arrives at a qualified defense of democracy; for

most actual governments are bad, and therefore, among
actual governments, democracies tend to be best.
Bertrand Russell (1946:501)
I have argued that the Confucian ideal of man and society is

in no sense in conflict with industrialization and democrat-
ization on the level of principles. Since the end of the Second
World War, the Confucian regions, led by Japan, have sus-
tained economic growth rates unprecedented in world
history. Japan and the four tigers have already become in-
dustrial economies and mainland China, with its 1.2 billion
population, has marched towards industrialization with the
highest economic growth rate in the world in the last 15
years. Of the Confucian regions only North Korea has failed
to experience a period of high growth rate. This book has
covered some philosophical background for these economic
miracles. The rapid industrialization of the Confucian
regions has transformed their social, political and ideological
spheres. These regions have experienced rapid urbaniza-
tion, a steady decline of the percentage of the population
employed in agriculture and changes of lifestyles. There
have emerged new social and political forces for transform-
ing traditional societies into post-industrial or industrial
societies. Most of the Confucian regions are becoming eco-
nomically industrial and politically democratic. It is believed
that the spread of education and democratic voting will

promote actualization of the humanistic aspects of
Confucianism which has never been practised in China, as
still validly claimed by Chu Hsi (1130-1200):
The way of Confucius had not been put into practice for a
single day.
Modern Confucian regions are not traditionally Confucian.
They are obviously creating new cultures under the influ-
ence of Western cultures. The modern cultures of these
regions are being 'melted' into a modern rational civilization
which is neither traditionally Western nor traditionally
Confucian. Irrespective of great differences in living stan-
dards and social and political systems among these regions,
they have experienced similar patterns of socioeconomic
development since Western influence became increasingly
strong after the Opium War. Each region started its period of
fast economic growth by introducing market mechanisms
with strong government intervention. Moreover, each
region's fast growth period was preceded by a period of state
planning. Immediately after the Meiji Restoration, the Meiji
government directly owned and managed a very large share
of the Japanese economy. After failures in state planning, the
government started to decentralize. Both Korea and Taiwan,
before they started industrialization, were under the absolute
control of Japan. In Singapore government intervention has
been extremely firm. Mainland China was planning its
economy before the economic reform was started in 1978.
Hong Kong is an exceptional case. It should be noted that no
region had experienced 'catastrophic' transformation from
planned economy to market economy like Russia. If one
reads what Mencius said about first 'state planning', then
'market-led' and finally a 'mean way', one may gain insight
into the Confucian mind on social and economic transforma-
tions. More than 2000 years ago, Mencius wrote:
Those who are fleeing from the errors of Mo [socialism]
naturally turn to Yang [capitalism], and those who are
fleeing from the errors of Yang naturally turn to ortho-
doxy [Confucianism in tradition sense, democratic policy
and market economy with government intervention in
modern sense). When they so turn, they should at once

and simply be received. Those who now-a-days dispute
with the followers of Yang and Mo, so do as if they were
pursuing a stray pig, the leg of which after they have got it
to enter the pen, they proceed to tie.
One may get hints about why some Confucian regions had
gradually but steadily introduced market mechanisms rather
than rapidly replaced socialist practice with capitalist prac-
tice. It should be remarked that even if their economies are
characterized by strong government intervention, there are
great differences among these regions as regards what
aspects the governments chose to intervene in. For instance,
Japan is characterized by informed guidance; South Korea
by active leadership; Taiwan by passive interference, and
Singapore by direct management.
I believe that even for the purpose of actualizing the
Confucian principles, it is advantageous for the Confucian
regions to accept democratic voting. Hints about the long-
term development processes of democracy in the Confucian
regions may be gained by referring to Confucius' attitude
towards the timing of economic development and education.
Confucius taught that the central task of the state should be
primarily concerned with people's living conditions. As living
conditions are improved, education should be spread among
the people.
When Confucius went to Wei, Ran You acted as the driver
of his carriage. Confucius observed, 'How numerous are
the people!' Ran You said, 'Since they are thus numerous,
what more shall be done for them?' 'Enrich them', was the
reply. 'And when they have been enriched, what more
shall be done?' Confucius said, 'Teach them.'
From this comment on the order of economic development
and learning, one may gain some hints as to why the peoples
of the Confucian regions were obedient to their govern-
ments, who provided economic freedom but not political
freedom at the initial stages of industrialization. But the
human mind is changeable. As soon as its industrialization
was secured, each Confucian region began to rapidly intro-
duce democracy. As living conditions are improved,
education is spread, values are changed and judgement

capacity is increased in society, a democratic voting process
seems to be the only available way for each rational Confucian
region to find socially acceptable leaders. By comparing
Confucianism and democracy, we conclude that as far as
principles are concerned there are few psychological barriers
for educated people whose minds have been influenced by
Confucianism to accept democratic principles and voting
procedures. Indeed, some democratization in the Confucian
regions has already taken place. As in other aspects of the
Confucian regions' modernization, Japan led the process.
Singapore, South Korea and Taiwan all successfully conduct-
ed national elections in 1992. This clearly indicates that
democracy in the Confucian regions is not only possible but
also practicable.
Only a few explicit attempts have been made to revive the
essence of Confucianism in the Confucian regions. But
Confucianism, with its humanistic attitudes and emphasis on
rational learning, has silently but profoundly joined modern
civilization in the Chinese sage-like style described in the I
Ching:
'The superior man produces his changes as the leopard
does when he changes his spots.' - their beauty become
more elegant.
'Small men change their faces:' - they show themselves
prepared to follow their ruler.
Its spots, that is the traditional manifestations of the
Confucian principles, may be replaced by the modern demo-
cratic manifestations; but its essence remains the same. Many
excellent rational Chinese minds have made great efforts to
deny Confucius over 2500 years; but no one has succeeded in
dispatching him. His essence continues to permeate.
The convergence of the Confucian regions towards
modernization is not accidental if one is aware of the fact that
Enlightenment philosophers in the West had been greatly
inspired by Confucianism (Maverick, 1938; Guy, 1963;
Ching and Oxtoby, 1992; Bailey, 1992; Clarke, 1997). The
Confucian regions assuredly provide a fertile soil for democ-
racy. Even the following saying of Confucius can be used to
illustrate how far each Confucian region can go in the future:
When a man's knowledge is sufficient to attain, and his

virtue is not sufficient to enable him to hold, whatever he
may have gained, he will lose again. When his knowledge
is sufficient to attain, and he has virtue enough to hold
fast, if he cannot govern with dignity, the people will not
respect him. When his knowledge is sufficient to attain,
and he has virtue enough to hold fast; when he governs
also with dignity, yet if he try to move the people contrary
to the rules of propriety: - full excellence is not reached.
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edited by M.J. Beckmann, B. Johansson, F. Snickars, and R. Thorn.
Heidelberg: Springer-Verlag.
Zhang, W.B. (1999) Capital and Knowledge - Dynamics of Economic Structures
with Non-Constant Returns. Heidelberg: Springer-Verlag.
Zhang, W.B. (1999a) On Lao Tze - A Way of Chinese Thinking (in press).
Index
action Chu Hsi 9,212

Chu Hsi on 150-1 life and social environment
and knowledge 55-7, 161-2 141-4
Advancing Peace Stage (of social metaphysical system of 144-5
evolution) 42-3 on rationalism 140-51
aristocracy of merit 68-70 cities, development of 20
Aristotle 59,70,81,89,204 Clarke,].]. 194,195,200,214
common people 86-7
Bacon, F. 70 compassion 101
Bailey, P. 214 communications 53
behaviour 64-5 Confucianism
moral 107-8 and democracy 199-216
benevolence 31-2,49 as philosophy 2,74
Chu Hsi on 147-8 principles: and democracy
in government 109-14 202-4; and development of
and industrialization 181 science 206; traditional
Mencius on 102-4 204-8
Bentham, J. 2 relevance of 1-9
Blaug, M. 195,196 Confucius 1,187,189,197
Bolyai, W. 15 concerns and influence 23-7
early life 15-16
Capra, F. 4 life of 13-27
Chan, W.T. 14,22,23,29,32, as paradox 38-9
60,98,99,102,125,127-9, social environment of 18-22
141,143,154,159,162 status of in China 14
Chang, C. 141,142 success of 26-7
Chang, C.H. 173 as teacher 24
Chen, H.C. 41,42,43,44,60, Cook, D.]. 200, 202
78,93 Creel, H.G. 14, 23
Chen,].P. 15,19,26
Chen, M. 174 Darwin, C. 63
Ch'eng Hao 141-2 Dawkins, R. 63
Ch'eng I 142 democracy and Confucianism
China 199-216
Confucius in 14 democratization in Confucian
examination system 209-11 regions 211-16
industrialization of 175-8 Descartes, R. 55
knowledge accumulation in, desires 39-40, 84-5
neglected 90 Hsiin Tzu on 128, 129-33
political systems in 19 and resources 130-1
Ching,]. 195,214,202 Disorderly Stage (of social
Chiu, S.W.K. 167 evolution) 42
224
Index 225
division of labour 92, 112 Fung, Y.L. 14, 15, 18,22-3,29,
Dore, R. 167 60,97-9,102,108,124,
DullS, P. 167 141-2,154
economic welfare and political Galton, F. 63

stability 114-15 Gauss, C.F. 15
economics 80 gentleman 40
education 17 and desires 39-40
Chu Hsi on 148-9 employment of 88
equal opportunity 180 as free man 30
Hsiin Tzu on 134 Hsiin Tzu on 133
and industrialization 180 quality of mind 64-5
investment in 83-4 see also small man; superior man
mass, and industrialization geography, role of 166
187-9 Gleik,j. 3
purpose of 57-8 Goethe,j.W. von 95,171,194
spread of 22-3 good and evil, distinguishing
universal 68-70 between 158
as wealth 83 goodness, in man 128-9
efforts in social organization 105 government 61-2
emotions, importance of 130 benevolence in 109-14
empiricism 152-3 effective, Confucius on 75-6
employees/employers 39 intervention, and industrializa-
equality of people tion 183-4
Hsiin Tzu on 136 and market mechanisms 91-4,
and industrialization 179-80 118
Mencius on 104-5 and social organizations 59-79
ethics and society 135-6
as dominant theme 66-7 virtue and merit in 68-70
names and actuality 60 virtue and propriety in 70-3
examination system, and welfare of people 66-8, 81-2
Confucianism 208-11 Great Similarity Stage (of social
Extreme Peace Stage (of social evolution) 42, 43-5
evolution) 42, 43-5 stages of 44-5
Great Ultimate (Chu Hsi) 145
family and state 79 Gulik, R.H. van 21
feudal system in China 19 Guy, B. 214
Feuerwerker, A. 175
filial piety 33 Hajime, N. 182
flexibility in Confucius' thought Haken, H. 3, 166
24-5,37,49 Han Fei-tzu 182
Fogelin, R. 152 Harding, H. 176
Francks, P. 167 harmony in society 60, 184-6
free will 30 Hauser, W. 167
and industrialization 178-9 Hayashi, T. 168
freedom 28-31 Hayhoe, R. 177
Freud, S. 32, 196 Hegel, G.W.F. 37
friendship 34 Heidegger, M. 24, 54, 152, 202
frugality 184,196-7 Heitmanek, M. 185
226 Index
Held, D. 203 Jansen, M. 185

Herodotus 169 Japan: industrialization of 167-9
Herrnstein, R.J. 63 Johnson, C. 194
Hesse, H. 35 justice 71
hierarchy in society 60, 181
Hobbes, T. 122 Kant, I. 28,41,46,59,73,97,
Hong Kong: industrialization of 140,141,144-5,148-9,150,
173-5 153
Hook, D.F. 35 Kao Tzu 97
Horioka, C.Y. 197 Kenji, S. 162
Howe, C. 168 Keynes, J.M. 90, 192
Hsii 67 King, A.Y.C. 174
Hsiin Tzu 9, 10, 25, 97 knowledge 48-9
on human nature 122-39 and action 55-7, 161-2
and Mencius, compared 138-9 Chu Hsi on 148,150-1
social environment of 124-6 in division of labour 112
Huang Tsung-hsi 154 and human interaction 53-4
human capital 91-2 innate 29, 158-61
and education production 188 man and 46-51
Mencius on 106 Mencius on 106
human effort 84 Plato on 46
human interaction and knowledge practical use of 91
53-4 purpose of 113
human nature unity of 36-7
Chu Hsi on 145-8 utility of 50
controlling 136-9 as wealth 84
as evil (Hsiin Tzu) 126-9 Kung Fang-shu 15
as good (Mencius) 100-2
as state of war 122 Lagrange, J.L. 83
Hume, D. 101, 140, 152-3 land and wealth in China 92-3
Huntington, S.P. 5, 6 land tenure, Mencius on 116-17
Hussed, E.C.A. 152 Lao Tzu 1, 14, 29, 68, 79, 179,
Huxley, T.H. 133 197
Lardy, N. 177
I Ching 1,35,36, 178 Lau, D.C. 218
ideal individual 42 Lau, L.J. 29, 197
ideal society 42-5 law 70
idealism, Chu Hsi on 143 Hsiin Tzu on 129-33
ideology, extreme 189-90 learning
industrialization of Confucian Chu Hsi on 148
regions 165-98 and doing 56
inequality, and industrialization purpose of 55
179-80 and self-improvement 133-5
innate knowledge 29, 158-61 and thinking 54-5
intellect, role of 105-6 Leibniz, C.W. 5, 140, 141, 199,
intellectual capacity 49 200,201-2
intelligence, in human capital 63 leisure 89
invisible hand (Smith) 92 Lethbridge D. 174
Ito, T. 194, 197 Levenson,J.R. 18
Index 227
Li (Confucius' son) 16 Moulder, F. 168

Li T'ung 141 Mungello, D.E. 202
Liu, P.K.C. 172 Munro, D.]. 97
Liu Hsiang 98 Muramatsu, M. 194
livelihood of people, and industri- Murray, C. 63
alization 187-9 mutual obligation 182-3
living standards, inequality in III
Locke,]. 63,122-3 Nakamura, T. 194
love 32-5 names, rectification of 59-63
and self-cultivation 184 and industrialization 183
Mencius on 101 Needham,]. 14
Neo-Confucianism 142-3, 156
market mechanisms and govern- Nietzsche, F. 163
ment 91-4, 118
and industrialization 183-4, Okimoto, D.l. 182, 194
194-6 Ortega, ]. 123
Marshall, A. 93, 105 Oxtoby, W. 195,214
Maruyama, M. 167
material force, in Chu Hsi's system patriarchal system in China 19
144-5 Pearson, M.M. 177
Maverick, L.A. 195,214 Pempel, T.]. 194
Meiji Restoration 168, 193 people
Mencius 9, 10,25,67, 186, 187, classification of 63-6
210,212 common 86-7
and Hsiin Tzu, compared living conditions of 81-2
138-9 perceptions 152
on human nature 97-121 personal interest in human
life and environment of 98-9 relationships 88
merit 68-70, 181 Pilat, D. 170
Merriam, C.E. 203 P~to 22,23,46,47,57,68
military system in China 19 Plotinus 17
Mill, ].S. 80, 119 political stability and economic
mind welfare 114-15
classification of men by 52-3 Popkin, R. 152
depth of 51-3 Prigogine, 1. 3, 166
loss of 107 principle in Chu Hsi's system
motion of 119-21 144-5, 146, 149-50, 156
and principle, in Chu Hsi's Wang Yang-ming on 157
system 146, 149 profit
quality of 64 and virtue 86-9
Wang Yang-ming on 157 and wealth 80-94
and wealth 83-5 propriety and virtue 70-3
Mo Tzu 99, 103
Montaigne, M. de 89, 104 Quesnay, F. 194,195,196
Moore, S. 35
moral behaviour 107-8 racial discrimination 78
moral judgement 81 rational knowledge 47
morals 70 rational reciprocity 31
Morishima, M. 14, 168, 185 rationalism, Chu Hsi on 143
228 Index
rationality 189-90 173-5

and industrialization 178-9 Skinner, Q. 203
reciprocity 31-2,33 small man
Redding, S.G. 174 in changed environment 39
Reischauer, E.O. 168 and desires 39-40
Reiss, H. 140 in government 77
resources and desires 130-1 in poverty S7-S
respect, Mencius on 101 quality of mind 64-5
revolution, justification for 67, see also gentleman; superior man
119-21,184-6 Small Tranquility Stage (of social
righteousness 88, 102-4 evolution) 42-3
Riskin, C. 176 Smith, A 37,71, SO, Sl, 91-2,
rites, Hsiin Tzu on 129-33 113-14,166,180, lS6, 190,
Rohlen, T.R. 182 195-6
Rosemount, H. 200, 202 Smith, W.W. 185
Rousseau, J.-J. 31, 100, 102, 109, So, AY. 167
123, 135,208 social contract (Rousseau) 100
ruler's duty 66-7 social environment of Confucius
ruler's virtue 76 lS-22
ruler's wealth 113-14 social evolution 42-5
ruling principles 111-14 social justice lS2-3
Russell, B. 9,17,29,211 social organization 59-79
and names 59-63
Schoenholtz, L. 36 people, classification of 63-6
Schonberger, M. 36 talents and efforts in 105
Schopenhauer, A 1, 13,51-2, society 35-7
124, 129, 154, 156-8, 161 as connected whole 37-S
Schrecker,J.E. 175 and government 135-6
Schumpeter, J.A 190 hierarchical structure 73-9
Schwartz, B.I. 97, 102 ideal 42-5
Scitovsky, T. 194 man III 123, 131
Seldes, G. 32 Rousseau on 100
self-cultivation South Korea: industrialization of
Chu Hsi on 148-9 169-71
as ideal 6S,77-S space 165-6
and industrialization ISO spending, less 89-91
and learning 55 Ssu-ma Ch'ien 26
Mencius on 107 Stengers, I. 3, 166
self-improvement and learning Stough, C.L. 152
133-5 strength, role of 105-6
self-interest 122 Suh, S.M. 171
Shakespeare, W. IS, 23, S6, 122, Sun Tzu S
126, 167 superior man, in changed
Shen, F.W. 195,200 environment 39
Sheridan, K. 194 symbols in society 59, 190-4
Shih Shih 97 and industrialization IS3
Shils, E. 207
sincerity 40 Taiwan: industrialization of
Singapore: industrialization of 171-3
Index 229
talents Warring States Period 22,99
differences in 11 0 the Way see Tao
and industrialization 181 wealth
natural 50 in China 193
in social organization 105 display of 85
Tao (the Way) inequality in III
and Hsiin Tzu 127, 129 land as in China 92-3
loyalty to 28-31 the mind 83-5
names and actuality 60 and profit 80-94
taxation, Mencius on 116 Webb, S.E.H. 176
things, investigation of 149-50 Weber, M. 2, 3,4, 7
thinking and learning 54-5 welfare of people 66-8, 81-2,
time 165-6 181
Tocqueville, A de 66,98 well-field economic system
truth 47-8 114-19
Tu, W.M. 3, 185, 186 Whincup, G. 36
Tuan, F.C. 176 Whitehead, AN. 178
Tung Chung-hsu 98 Wilhelm, H. 35
Tzu Ssu 98 Wilhelm, R. 35
Tzu-chang 108 will, sincerity of 157-8
Tzu-hsia 108 Wilson, E.O. 63
Wolferen, K. 168, 182
virtue 48 Wollf, C. 141
conditions for 108 women, Confucius on 78-9
in government 68-70 work
and profit 86-9 and industrialization 184,
and propriety 70-3 196-7
ruler's 76 and leisure 89
vital force, in Chu Hsi's system and spending 89-91
144-5 Woronoff, J. 174
Voltaire 173
von Mises, L. 190 Yan,J.F. 36
voting procedures, and Yan Yuan 13
Confucianism 208-11 Yang Chu 99, 103
Yang Hsiung 98
Wachman, A 185 Yi, D. 177
Wade, R. 172 Young, J.D. 202
Waldrop, M.M. 3
Walter, K. 4, 36 Zeidler, E. 15, 83
Wang, Y.F. 177 Zeno 53, 136
Wang Pi 14, 15 Zhang, W.-B. 3,4, 14,29,48,90,
Wang Yang-ming 9, 142, 152-62 119,166-8,175,181,184,
and Chu Hsi 156-7 191, 196,206,210
life and social environment
154-5

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CONFUCIANISM AND MODERNIZATION

Also by Wei-Bin Zhang

KNOWLEDGE AND VALUE: Economic Structures with Time

JAPAN VERSUS CHINA IN THE INDUSTRIAL RACE

CAPITAL AND KNOWLEDGE: Dynamics of Economic Structures

Published by PALGRAVE MACMILLAN

Outside North America

Library of Congress Catalog Card Number: 99-26132

Transferred to digital printing 2003

Part I Confucius and His Doctrines 11

Part II The Dynamics of Confucianism 95

Part III Modernization of the Confucian Regions 163

If love be blind, love cannot hit the mark.

The history of civilization shows that a sophisticated intellec-

shaped the social fabric, forged status consciousness and pro-

Grateful acknowledgement is made to HarperCollins

To truth only a brief celebration of victory is allowed

Geniuses are the 'boundary setters' of civilization in the sense

Confucianism is more rationalist and sober, in the sense

yardsticks, than any other ethical system, with the possible

Confucianism is a philosophy that had been implemented as

economics since the end of the Second World War. Thus,

similar pattern of economic development. This further

The superior man is sociable, but not a partisan.

civilizations display a tendency to converge rather than to

Overall, there is now a tendency to credit the Confucian

THE STRUCTURE OF THE BOOK

When an intelligent man expresses a view which seems to

his followers. Historically then, what is called Confucianism

But who would have believed that there is on earth a

Many of Confucius' pupils followed their master loyally but

Historical consciousness of this 'time gap' is important in

There is a basis for all affairs and a foundation for all

the same, and there may be a hundred deliberations but

For Wang Pi, a superior man sees similarity in general prin-

CONFUCIUS (551-479 BC)

It is not the knowledge but the learning, not the possess-

As with most ancient Chinese thinkers, little is known of the

care and instruction of his widowed mother. His first school-

Confucius regarded three things, the people, wealth and

I do not murmur against Heaven. I do not grumble

THE SOCIAL ENVIRONMENT

Senseless trees they cannot hear thee,

Confucius lived during the Spring and Autumn period

1965; Chen, 1990). The feudal system, highly developed

selfishness and faithlessness reigned. Besides the many dark

Confucius' thought in detail. China is a continental country

physical valour and excessive boldness of action. He himself

THE FREE ENVIRONMENT FOR INTELLECTUALS

A great work - yet; but not greatest, unless he finds a State

The Warring States Period (481-221 Be), in which Confucius

Chinese history. Great intellectual freedom co-existed with

CONFUCIUS' CONCERNS AND INFLUENCE

Love is too young to know what conscience is;

Socrates said that the subject of moral philosophy deals with

imbued with a profound sense of purpose and an intense

should draw a line beyond which he would not compromise

feeling, and will. Confucius, unlike Plato, showed no interest

The Book of Poetry says, 'High is the mountain I look up

ten generations. By all, from the emperors, kings and

It is the duty of man ... to construct for himself an

Each human society is characterized by the ways in which

FREEDOM (LOYALTY TO THE WAY)