Global governance and the Church

These days everything carries a price. Take ageing. There was a time when the elderly were cared for by their families, now growing old has become an expensive experience. We have been made to believe in the supremacy of the market, even though reality shows that this often leads to dominion by a few firms. It has long been said that “money makes the world go round”; globalisation has created a new dimension to this dictum.

In the free market there is no place for ethics and spirituality as these do not carry a price- Joseph Vella Bonnici

In the last 30 years or so, globalisation has been presented as a panacea that will lead to enhanced global efficiency and increased prosperity for each one of us. We were told that the world will become a “global village” where market capitalism and democracy will triumph as they represent the apex of human organisation. We are still far away from such utopia and modern societies continue to be characterised by big divides and contradictions.

There is a growing feeling among Western citizens that democracy is often being used as a smokescreen for powerful interests. Many do not even bother to vote, as evidenced by low turnout at elections. The legitimacy of capitalism is also being increasingly questioned. The 2007 financial crisis exposed its greed and short-sightedness. Today, the world economy is driven more by “casino” (speculative) capitalism than by the production and transaction of goods and services. A bit of regulation, taxing financial transactions and other tweaking of the present economic system are not good enough.

Economic growth has become dependent on purposeless consumption, which is severely challenging the limits of our planet. Free markets are not fair as poor people are unable to participate fully. Globalisation is giving rise to new forms of poverty both within as well as among countries. Governments and national institutions are unable to cope with the pace of change and this is leading to a significant void in governance. In particular, Western leaders seem to lack the political will and statesmanship to deal effectively with global concerns.

Although the modern world owes a lot to Western thinking and values (suffice to mention that the people’s desire for liberty, equality and fraternity emerged from the French Revolution), the West did not fail to exploit its superior knowledge and technology to push its own interests. The West’s political hegemony has faded but its interests still underpin global economic structures and policies.

These concerns have prompted the Pontifical Council for Justice and Peace to publish a document entitled Towards Reforming The International Financial And Monetary Systems In The Context Of The Global Public Authority. The authoritative Vatican agency, responsible for stimulating thinking on social justice, confirms the commitment of the Catholic Church to express its views and raise awareness on issues critical for the well-being of our societies.

The Pontifical Council acknowledges that the recent financial and economic crisis is just a symptom of a deeper malaise afflicting the global economy. Utilitarian philosophy, neo-liberal ideology and a consumerist culture cannot provide the solution to equitable and sustainable development. Economics has to be people-centred, at the service of society and driven by ethics.

The document calls for individuals and societies to re-examine the principles and moral values at the basis of social existence. Every individual and community share the responsibility of promoting the common good. Individualism finds its fulfilment not just in utilitarianism but also in the common good. This thinking builds upon that of Benedict XVI who in his encyclical Caritas in Veritate, emphasises the need for each one of us to set new rules, embrace changed commitments and replan our life journey.

The document also calls for the creation of a world political authority entrusted with promoting the “universal common good”. This global organisation is to be given broad powers to regulate financial markets and rein in the “inequalities and distortions of capitalist development”. It is to derive its authority through participation and reciprocal trust, using the United Nations as its reference. In his 2009 encyclical, Benedict XVI states that there is “an urgent need of a true world political authority” which would give poorer nations a bigger voice in economic decision-making.

The document is visionary and brave in challenging conventional wisdom and endorsing solutions which threaten existing powers and vested interests. Various analysts expressed their reservations on the social orientation and shallow economic analysis of the document. Others slammed it as being “realpolitik” by the Church (given that two-thirds of all Catholics live in poor, non-Western countries). Some Catholic commentators even accused the Vatican agency of living in a “fantasy world”. Perhaps these commentators need to rediscover Christ the Reformer, who was not afraid to stand up to the powers of his time. Was it not Jesus who drove out the merchants and money changers from the temple? Those that are well fed and sit comfortably in their sofas cannot be expected to be agents of change.

Despite all the document’s deficiencies, it is commendable that the Church takes up complex technical issues which appear to be beyond the grasp of Joe Citizen. In the free market there is no place for ethics and spirituality as these do not carry a price.

fms18@onvol.net