Its a good question. I of course do not know the perspective of animals so I can only speculate. But I don't think that animals "understand" the world, at least not intellectually. Animals do not try to reason about the way things are and they do not pass judgement over their experience. It may be something like what Buddhist's call "being in the moment." Perhaps they are in a constant state of being in the moment? In such a state, an individual can still function and survive as easily as any other organism; they simply do not pass judgement over their experience or try to make sense of it. Again, I can only speculate but it is something to ponder. Good question :)
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