E. F. Schumacher

**Ernst Friedrich Schumacher**  (16 August 1911 – 4 September 1977) was a German-born British statistician and economist. He is best known for ideas about human-scale, decentralized and appropriate technologies. He worked as Chief Economic Advisor to the British National Coal Board from 1950 to 1970 and started the Intermediate Technology Development Group (now Practical Action) in 1966.

In 1995, his book _Small Is Beautiful: A Study of Economics As If People Mattered_ (1973) was named one of the 100 most important books since World War II by _The Times Literary Supplement_. In 1977 he published _A Guide for the Perplexed_, criticizing materialism and exploring knowledge and how it is organized.

## Early life

Schumacher was born in Bonn, Germany. His father was a professor of political economy. He studied in Bonn and Berlin, then in England as a Rhodes Scholar at New College, Oxford and later at Columbia University in New York, earning a diploma in economics. He also worked in business, farming, and journalism. His sister, Elizabeth, married physicist Werner Heisenberg.

### Protégé of Keynes

Before World War II, Schumacher returned to England. During the war, he was briefly interned on a farm as an "enemy alien". While there, he wrote a paper called "Multilateral Clearing". John Maynard Keynes was impressed by it and helped get him released. Schumacher then helped the British government with economic and financial planning during the war and worked at Oxford University.

According to Leopold Kohr, Schumacher's paper was almost copied into Keynes' "Plan for an International Clearing Union".

### Adviser to the Coal Board

After the war, Schumacher helped rebuild the German economy as an advisor to the British Control Commission. From 1950 to 1970, he was Chief Economic Adviser to the National Coal Board. He suggested using coal instead of oil for energy, warning about oil shortages and high prices. He also predicted issues with OPEC and nuclear power.

### Development and Appropriate Technology

In 1955, Schumacher went to Burma as an economic consultant. There he developed "Buddhist economics", focusing on work that improves human life. He believed local production for local needs is best. He encouraged self-reliant economies in developing countries and started the Intermediate Technology Development Group in 1966. He supported small-scale, easy-to-use, and eco-friendly technology. He was a trustee of Scott Bader Commonwealth and president of the Soil Association in 1970.

He was influenced by Mahatma Gandhi and J. C. Kumarappa. In a lecture in Varanasi in 1973, he called Gandhi the greatest "people's economist".

### Influences

Schumacher was inspired by thinkers like Richard Henry Tawney, Gautama Buddha, Adam Smith, Karl Marx, John Maynard Keynes, Leopold Kohr, John Ruskin, and the Catholic Church. His ideas influenced the Schumacher Center for a New Economics and many activists.

## Writing

Schumacher wrote for _The Times_, _The Economist_, and _Resurgence_. He advised the India Planning Commission and governments of Zambia and Burma. His essay "Buddhist Economics" comes from this experience.

_Small Is Beautiful_ (1973) explained that economic growth should not harm future generations by using up resources. He became popular with environmentalists and community activists. In 1976, he won the Prix européen de l'essai Charles Veillon for the book. _A Guide for the Perplexed_ (1977) criticized materialism and discussed knowledge.

### The question of size

Following Leopold Kohr, Schumacher warned that "bigger is not always better". Small nations and organizations often work better economically and socially. Large countries and companies face problems of management, social stress, and alienation. He argued for decentralization, regional development, and smaller communities.

## Later life

Schumacher started as an atheist but later explored Buddhism and then Catholicism. He appreciated Christian mysticism and thinkers like Thomas Merton and Christopher Derrick. He converted to Catholicism in 1971. He loved gardening and continued writing. He died of a heart attack on 4 September 1977 in Romont, Switzerland.

## Legacy

His books and papers are kept at the Schumacher Center for a New Economics in Great Barrington, Massachusetts. The **Schumacher Circle** is a group of organizations inspired by him, including Schumacher College, Practical Action, and the New Economics Foundation.

## Selected bibliography

- _Small Is Beautiful: A Study of Economics As If People Mattered_ (1973, )
- _A Guide for the Perplexed_ (1977, )
- _This I Believe and Other Essays_ (1977, )
- _Good Work_ (1979, )

## See also

- Community development
- Distributism
- Microcredit
- Sustainable development
- Social entrepreneurship

## Infobox (economist)

- **name**: E. F. Schumacher
- **birth name**: Ernst Friedrich Schumacher
- **birth place**: Bonn, German Empire
- **death place**: Switzerland
- **nationality**: British
- **institution**: University of Oxford
Columbia University
- **contributions**: Appropriate technology
Buddhist economics
- **alma mater**: University of Bonn
University of Berlin
New College, Oxford
Columbia University