Brian R Corbin's Reflections on Religion and Life

Living Your Faith as Citizens and Leaders in Politics, Culture, Society and Business

September 20, 2008 • 6:49 pm 0

State Intervention: A wild week… Is faith against such action?

 

This week we witnessed a major transformation of the relationship between the state and free markets.  Besides a month long frenzy of buy out/support of Freddie Mac and Fannie Mae, with a Bear Sterns bail out by the Feds, now we see one of the largest insurance companies — AIG — being underwritten by the Fed Government while others are allowed to fail.

For many years, the policy policy makers of the US have articulated an ideological perspective of a “state -free” intervention position (except for the Resolution Trust Co. of the early 1990s).  This month, and notably this week, we see major governmental intervention to stabilize, and even now possibly manage,  the financial markets.  This weekend the US Government will debate the creation of a new regulatory framework and agency to maintain market stability with a $700 billion bail out of certain financial industries.

How can this intervention be justified by those in DC and on Wall Street who want State-free markets?

Does this recent action by the Feds find any relationship to Catholic social thought….especially any insights on how one’s faith is to be lived in the world?

In the Compendium of the Social Doctrine of the Church, the Vatican Pontifical Commisson on Justice and Peace, writes:

“352. The fundamental task of the State in economic matters is that of determining an appropriate juridical framework for regulating economic affairs, in order to safeguard “the prerequisites of a free economy, which presumes a certain equality between the parties, such that one party would not be so powerful as practically to reduce the other to subservience”.[735] Economic activity, above all in a free market context, cannot be conducted in an institutional, juridical or political vacuum. “On the contrary, it presupposes sure guarantees of individual freedom and private property, as well as a stable currency and efficient public services”.[736] To fulfil this task, the State must adopt suitable legislation but at the same time it must direct economic and social policies in such a way that it does not become abusively involved in the various market activities, the carrying out of which is and must remain free of authoritarian — or worse, totalitarian — superstructures and constraints.

353. It is necessary for the market and the State to act in concert, one with the other, and to complement each other mutually. In fact, the free market can have a beneficial influence on the general public only when the State is organized in such a manner that it defines and gives direction to economic development, promoting the observation of fair and transparent rules,  and making direct interventions — only for the length of time strictly necessary [737] — when the market is not able to obtain the desired efficiency and when it is a question of putting the principle of redistribution into effect. There exist certain sectors in which the market, making use of the mechanisms at its disposal, is not able to guarantee an equitable distribution of the goods and services that are essential for the human growth of citizens. In such cases the complementarities of State and market are needed more than ever.

354. The State can encourage citizens and businesses to promote the common good by enacting an economic policy that fosters the participation of all citizens in the activities of production. Respect of the principle of subsidiarity must prompt public authorities to seek conditions that encourage the development of individual capacities of initiative, autonomy and personal responsibility in citizens, avoiding any interference which would unduly condition business forces.

With a view to the common good, it is necessary to pursue always and with untiring determination the goal of a proper equilibrium between private freedom and public action, understood both as direct intervention in economic matters and as activity supportive of economic development. In any case, public intervention must be carried out with equity, rationality and effectiveness, and without replacing the action of individuals, which would be contrary to their right to the free exercise of economic initiative. In such cases, the State becomes detrimental to society: a direct intervention that is too extensive ends up depriving citizens of responsibility and creates excessive growth in public agencies guided more by bureaucratic logic than by the goal of satisfying the needs of the person.[738]”

369. A financial economy that is an end unto itself is destined to contradict its goals, since it is no longer in touch with its roots and has lost sight of its constitutive purpose. In other words, it has abandoned its original and essential role of serving the real economy and, ultimately, of contributing to the development of people and the human community. In light of the extreme imbalance that characterizes the international financial system, the overall picture appears more disconcerting still: the processes of deregulation of financial markets and innovation tend to be consolidated only in certain parts of the world. This is a source of serious ethical concern, since the countries excluded from these processes do not enjoy the benefits brought about but are still exposed to the eventual negative consequences that financial instability can cause for their real economic systems, above all if they are weak or suffering from delayed development.[760 ]

The sudden acceleration of these processes, such as the enormous increase in the value of the administrative portfolios of financial institutions and the rapid proliferation of new and sophisticated financial instruments, makes it more urgent than ever to find institutional solutions capable of effectively fostering the stability of the system without reducing its potential and efficiency. It is therefore indispensable to introduce a normative and regulatory framework that will protect the stability of the system in all its intricate expressions, foster competition among intermediaries and ensure the greatest transparency to the benefit of investors.”

******

The common good must always be the goal of the economy.  Persons always are the most important part. 

David Brooks in an editorial on Friday Sept 12, 2008 in the New York Times focuses on the ideological assumptions underway in current US thinking.  He calls for a new way of thinking that is less individualistic and more socially oriented.  This has been the perspective of the Catholic community for centuries: individualism and consumer/profit driven ideologies are incomplete theories inadequate for the full development of persons and societies.  We need as a country and culture a new way of thinking about social issues and the relationship betweent the State and markets.

Hopefully this week’s and month’s actions by the federal government will allow us as faithful persons to engage each of us individually and socially to re-think the proper role of the state, regulations and laws, when it comes to a free market that sometimes might lead to failure based on goals other than the common good.

 

So what do you think?

Filed under: Economic Policy

September 14, 2008 • 6:37 pm 0

Economic Justice for all. A primer for Catholics living in the US regarding economic and market place

Consider reading the US Catholic Bishops Statement, Economic Justice for All, published in 1986.  Though over 20 years old, this document provides an excellent overview of Catholic theology engaged in economic theory and every day work life experience.

Filed under: Economic Policy, Market Place, Social Doctrine, Social Justice, , ,

September 13, 2008 • 9:08 pm 1

A Framework to Discuss the role of faith/organized religion in society

I ask that you please consider reading the US Catholic Bishops’ Statement on Political Responsibility to help inform any reflective conversation.

Filed under: Church-State, Culture, Economic Policy, Market Place, Official Statements, Papal Teachings, Personal Reflections, Politics, Social Doctrine, Social Justice, Uncategorized,

September 3, 2008 • 1:51 pm 0

VATICAN TO PUBLISH DOCUMENT ON POVERTY

ZE08090205 – 2008-09-02
Permalink: http://www.zenit.org/article-23534?l=english

Cardinal Says Economic Inequality a “Dramatic” Problem

DAR-ES-SALAAM, Tanzania, SEPT. 2, 2008 (Zenit.org).- The president of the Pontifical Council for Justice and Peace announced the forthcoming publication by the Holy See of a document analyzing poverty in the context of globalization.

Cardinal Renato Martino revealed news of the publication during a 4-day congress on evangelization last week in Dar-Es-Salaam organized by the dicastery.

The theme of the conference was “Toward a New Evangelization of African Society in Accordance with the Social Doctrine of the Church.”

During the conference Cardinal Martino officially presented the Compendium of the Social Doctrine of the Church, which was published in October 2004, to the Church in Africa.

The cardinal stated that “since the Second Vatican Council, the preferential option for the poor is one of the points that most characterizes the social doctrine of the Church,” reported Vatican Radio.

“Poverty and, above all, the growing inequality between areas, continents and countries, including within the latter, constitutes the most dramatic problem facing the world today,” he added.

The cardinal explained that the new document of the dicastery will attempt to offer concrete answers to the problem of poverty in keeping with the Church’s social doctrine.

Evangelical approach

“The intention is to point out an evangelical approach to combat poverty, to identify — both at the national and the international level — those responsible for combating poverty, to sensitize the Church to greater and more articulated attention to and awareness of the problems of poverty and of the poor of the world,” he said.
“It must not be forgotten that today extreme poverty has, above all, the face of women and children, especially in Africa,” the cardinal added.

Cardinal Martino said that the dynamism of evangelization “must drive the Church to privilege the poor, to direct our strength to the poor, to consider the renewal of society from the needs of the poor.”

In regard to globalization, the cardinal pointed out that “an indispensable act of charity” is the “determination that has as its end the organization and structure of society so that a neighbor does not have to live in misery.”

He said this determination must be all the greater if one takes into account that poverty “is a situation facing a great number of people, including whole populations, a situation that today has acquired the proportions of a real worldwide social issue.”

Filed under: Cor Unum, Economic Policy, Papal Teachings, Social Doctrine, Social Justice

April 10, 2008 • 9:22 pm 0

Urbanized World

Holy See: Urbanized World Brings New Challenges
Human Person, Not Money, at Heart of Phenomenon, Says Aide
NEW YORK, APRIL 10, 2008 ( Zenit.org ).-

 

 

As the world’s cities, for the first time in history, boast more inhabitants than the globe’s rural areas, the Holy See’s permanent observer to the United Nations says that the needs of urban migrants need to be met.Archbishop Celestino Migliore affirmed this Wednesday at the Economic and Social Council’s 41st session of the Commission on Population and Development. The topic at hand was world population monitoring, focusing on population distribution, urbanization, internal migration and development.The archbishop noted the session’s timing “at this historic juncture when, for the first time in history, the number of urban inhabitants will surpass the number of people living in rural areas.””This session therefore calls on us to reflect on this phenomenon and take stock of the opportunities and challenges that lie ahead,” he said.

 

 

The prelate affirmed that the urbanization of populations provides new opportunities for economic growth: “With access to higher wages and better social services such as education, health, transportation, communications, safe water supplies and sanitation, migrants from rural to urban settings are more likely to advance their personal and social development.”Still, the Holy See representative urged, “We must place the needs and concerns of peoples first.”

 

 

Archbishop Migliore cautioned against a reversal in priorities.”Placing the human person at the service of economic or environmental considerations creates the inhuman effect of treating people as objects rather than subjects,” he said. “Migration and the urbanization of societies should not be purely measured in terms of their economic impact. In finding ways to address the serious challenges posed by massive internal and transnational migrations, let us not forget that at the heart of this phenomenon is the human person. “Thus we must also address the reasons why people move, the sacrifices they make, the anguish and the hopes that accompany migrants. Migration often places great strain on migrants, as they leave behind families and friends, sociocultural and spiritual networks.”

 

 

Slums

 

Archbishop Migliore cited the secretary-genera’s report in noting the many challenges that also come with urbanization.”Indeed,” he said, “new environmental, social and economic problems emerge with the birth of mega cities. But one of the most pressing and painful consequences of rapid urbanization is the increasing number of people living in urban slums. As recently as 2005, over 840 million people around the world lived in such conditions. Lacking in almost everything, these individuals can lose their sense of self-worth and inherent dignity.”The archbishop noted some of the problems faced by slum-dwellers, “trapped in a vicious cycle of extreme poverty and marginalization.””They squat on state or other people’s properties. They feel powerless to demand even the most basic public services. Children are not in schools, but in waste dumpsites eking out a living from scavenging. Policy makers and civil society actors must put these people and their concerns among the priorities in their decision-making.”

 

 

Archbishop Migliore also contended that residents of rural areas not be forgotten. “If we are to achieve the [millennium development goals] by 2015, greater concern must be given to those communities, in which approximately 675 million still lack access to safe drinking water and 2 billion live without access to basic sanitation. National and international policies would do well to ensure that rural communities have access to higher quality and more accessible social services.”He concluded by affirming the Holy See’s commitment to “addressing the concerns of all migrants and to finding ways to collaborate with all, in order to ensure a proper balance between the just concerns of state and those of individual human beings.””Helping migrants meet their basic needs does not only aid their transition and help keep families together,” the prelate stated. “It is also a positive way to encourage them to become productive, responsible, law-abiding and contributors to the common good of the society.”

 

 

 

Holy See on Urban Growth”Problems Emerge With the Birth of Mega Cities”NEW YORK, APRIL 10, 2008 ( Zenit.org ).-

 

Here is the address given Wednesday by Archbishop Celestino Migliore, the Holy See’s permanent observer to the United Nations, at the Economic and Social Council’s 41st session of the Commission on Population and Development.

 

 

The meeting discussed world population monitoring, focusing on population distribution, urbanization, internal migration and development.* * *

 

 

Mr. Chairman, This session of the Commission on Population and Development comes at this historic juncture when, for the first time in history, the number of urban inhabitants will surpass the number of people living in rural areas. This session therefore calls on us to reflect on this phenomenon and take stock of the opportunities and challenges that lie ahead.The urbanization of world populations provides new opportunities for economic growth. With access to higher wages and better social services such as education, health, transportation, communications, safe water supplies and sanitation, migrants from rural to urban settings are more likely to advance their personal and social development.When addressing the issues of migration and development, we must place the needs and concerns of peoples first. Placing the human person at the service of economic or environmental considerations creates the inhuman effect of treating people as objects rather than subjects. Migration and the urbanization of societies should not be purely measured in terms of their economic impact. In finding ways to address the serious challenges posed by massive internal and transnational migrations, let us not forget that at the heart of this phenomenon is the human person. Thus we must also address the reasons why people move, the sacrifices they make, the anguish and the hopes that accompany migrants. Migration often places great strain on migrants, as they leave behind families and friends, socio-cultural and spiritual networks. As the secretary-general’s report rightly illustrates, while urbanization has created better opportunities for individuals and their families, the move from agricultural settings to urban centers also create myriad challenges. Indeed, new environmental, social and economic problems emerge with the birth of mega cities. But one of the most pressing and painful consequences of rapid urbanization is the increasing number of people living in urban slums. As recently as 2005 over 840 million people around the world lived in such conditions. Lacking in almost everything, these individuals can lose their sense of self-worth and inherent dignity. They become trapped in a vicious cycle of extreme poverty and marginalization. They squat on state or other people’s properties. They feel powerless to demand even the most basic public services. Children are not in schools, but in waste dumpsites eking out a living from scavenging. Policy makers and civil society actors must put these people and their concerns among the priorities in their decision-making.While urbanization provides a net growth in terms of economic development, we must not lose sight of the daunting challenges that rural communities face, particularly those in developing countries. If we are to achieve the MDGs by 2015, greater concern must be given to those communities, in which approximately 675 million still lack access to safe drinking water and two billion live without access to basic sanitation. National and international policies would do well to ensure that rural communities have access to higher quality and more accessible social services. Mr. Chairman,For its part, the Holy See and its institutions remain committed to addressing the concerns of all migrants and to finding ways to collaborate with all, in order to ensure a proper balance between the just concerns of state and those of individual human beings. Helping migrants meet their basic needs does not only aid their transition and help keep families together. It is also a positive way to encourage them to become productive, responsible, law-abiding and contributors to the common good of the society.Thank you, Mr. Chairman.

Filed under: Economic Policy, Migration, Social Doctrine, Social Justice

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