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Many scholars believe that Shangri-La is based on Shambala, a mythical kingdom in Tibetan Buddhist tradition, sought by both Eastern and Western explorers.
Early Soviet leaders became interested in Shambala, and planned various expeditions to find it, though most fell apart before anyone left Russia. The Nazis, with an enthusiasm for all things occult, were also interested in Shambala, where they hoped to find an ancient master race similar to the Nordic race, but unspoiled by Buddhism.
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Whether or not there ever was a real Shambala, the realm came to be seen as a Buddhist Eden, a fabulous kingdom whose reality is visionary or spiritual as much as physical or geographic. It was in this form that the Shambala myth reached the West, where it influenced non-Buddhist as well as Buddhist spiritual seekers — and, to some extent, popular culture in general.
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According to one story in Tibetan Buddhism, Shambala is actually located inside the earth, closely related to the underground realm of Agartha, another legendary city that is said to reside in the earth's core. It is related to the belief in a hollow Earth.
The concept of a hollow Earth recurs in folklore the world over and as the premise for subterranean fiction, with such varied proponents as Dante Alighieri, Jules Verne, L. Frank Baum, Edgar Rice Burroughs, Lewis Carroll, and the Wachowskis. It is also featured in some present-day pseudoscientific and conspiracy theories.
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TSW’s Agartha is occupied by the World Tree, which is another story.
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