Catholic Social Thought and Global Financial Systems PDF

Understanding CST Catholic Social Thought (CST) and Global Financial Systems Seal of the Society of Jesus...

Understanding CST Catholic Social Thought (CST) and Global Financial Systems Seal of the Society of Jesus By Fred Kammer, S.J. In October 2011, the Pontifical The Note underscores the call by Catholic social teaching underscores Council on Justice and Peace applied both Blessed Pope John XXIII and Pope the need for ethical and moral Catholic social teaching [CST] to global Benedict for a world political authority to “boundaries” around economic and financial systems.1 The “Note” reiterates deal with global issues. This means reform financial markets. In August 2011, Pope four strong CST themes: of international financial and monetary Benedict restated this fundamental First, there must be a strong ethical and systems, including a world central bank. principle in these words: legal framework to regulate “an economic Respect for the traditional principle of The economy does not function with a liberalism that spurns rules and controls.” subsidiarity requires any such world public self-regulation of the market alone, but An unfettered economic market poses authority to serve global society and it needs an ethical reason if it is to grave dangers to human dignity, regional and national institutions. Such function for man. And once again Pope community, world equilibrium, and peace. reform should “proceed with the United John Paul II’s words in his first social Pope Benedict has warned of “the pitfalls Nations as its reference.” encyclical become apparent: man must which exist on the African continent and In light of the responsibility of global be the centre of the economy and the elsewhere, such as unconditional economy cannot be measured according surrender to the law of the market or that to the maxim of profit but rather of finance.”2 Second, the growing economic ”An unfettered economic according to the common good of all, that it implies responsibility for others inequalities between and among individuals market poses grave and only really functions well if it and nations threaten solidarity. Between functions humanly, with respect for 1900 and 2000, while world population dangers to human dignity, others.3 increased almost fourfold, globalization produced worldwide wealth much more community, world A triple responsibility for one’s own rapidly, “resulting in a significant rise of nation, for the world, and for future average per capita income.” But the Note equilibrium, and peace.” generations has and will continue to immediately adds, “At the same time, distinguish Catholic thought from a free however, the distribution of wealth did market ideology, which is all too popular not become fairer but in many cases financial institutions for the recent today. worsened.” financial crash, the Note calls us to Third, individualism and utilitarianism consider taxing financial transactions to ENDNOTES produce dangers that undermine the common generate revenue for “promoting global good. It is erroneous to think that “what is development and sustainability” and 1 Pontifical Council for Justice and Peace, Reform useful for the individual leads to the good contributing to a world reserve fund “to of the International Financial System with a View of the community.” While containing support the economies of countries hit by Toward a General Public Authority, October 24, 2011, unofficial English text at some truth, “individual utility—even where crisis.” It also urged that recapitalization http://www.news.va/en/news/full-text-note-on- it is legitimate—does not always favor the of banks with public funds require financial-reform-from-the-pontif [accessed common good.” “virtuous” behaviors aimed at developing November 25, 2011]. Fourth, we need a strong ethic of the “real economy” (instead of financial 2 Pope Benedict XVI, Address at welcoming solidarity embracing the logic of the common transactions producing no goods or ceremony, International Airport, Cotonou, good and the common dignity of all peoples. services) and the separation of the Benin, Friday, November 18, 2012. This ethic of solidarity means abandoning “domains of ordinary credit and of 3 Pontiff’s Press Conference en Route to Madrid, all forms of petty selfishness, embracing Investment Banking,” which could have Zenit, August 18, 2011. the logic of the global common good, and helped prevent the crises which toppled a “keen sense of belonging to the human many banks here and abroad. family, which means sharing the common dignity of all human beings.” JustSouth Loyola Quarterly University Winter 2012 New Orleans Copyright 2012 by the Jesuit Social Research Institute. 3