"[Ajahn Buddhadāsa's] understanding of 'socialism' was not a Marxist understanding. The Thai translation literally means 'in favor of society' or 'to be on the side of society.' In this sense, socialism means taking the side of society and can be contrasted with individualism. While individual responsibility is important in Buddhist ethics, 'the individual' cannot ultimately be found and Buddhism was never meant to be individualist, though it may often look that way in the modern era. Rather, Dhamma [aka Dharma] teachings naturally emphasize the collective good — not at the expense of the individual, he didn’t go that far — but social well-being cannot be sacrificed to personal desires.
This notion of socialism arises from the core perspective that Dhamma is nature and nature is Dhamma — inseparably. Since everything is Dhamma; there is nothing that is not Dhamma. Dhamma also means 'natural law,' which is the law of conditionality and inter-relatedness. If you look at our world, and our place in the world, from these eyes, it’s not hard to see a socialist nature, as opposed to an individualistic one. In an interconnected world, individual responsibility is emphasized over individual rights and is as responsible to the collective as to oneself.
The most prominent forms of socialism at that time, and probably still today, were materialist visions of socialism. Buddhism, however, is not a form of materialism, nor is it the kind of idealism that sees the world as just an unimportant derivative illusion. Reality is the interdependence of body and mind, group and individual, and so on. Therefore, Ajahn Buddhadāsa insisted that a Buddhist socialism could never be a materialist socialism.
In addition, the primary historical forms of socialism have been violent, and clearly a Buddhist socialism would be non-violent. Ajahn Buddhadāsa critiqued communism and Marxism, with their terminology of class war, as primarily motivated by revenge. He contrasted 'blood-thirsty capitalism' with 'vengeful Marxism,' and endeavored to create an alternative, middle-way understanding. Thus, he described a socialism that is primarily a moral system based in spirituality. This sort of socialism can only work if we curb egoism; it won’t work with the usual incentives — such as greed and fear — employed by non-Dhammic systems."
- Santikaro, from "Buddhadāsa Bhikkhu and His Practice of Dhammic Socialism"