The economy must work for people, and not the other way around. The economy is legitimate in Catholic tradition only to the extent that it is able to meet the material needs of every member of the human family and the moral demands of justice and solidarity.

Trade is a key component of economy. The concept of trade is centered around the simple activity of the exchange of good and/or services. These exchanges may be the ones that simply take place between two parties. These exchanges may also take place amongst more than two parties.

In earlier times, trade was done through barter i.e. the exchange of goods and services of a recognised equal value that is equally desirable to both parties. Today trade is facilitated through the use of a medium of exchange, i.e. money.

Trade is a concept that exists largely due to the differences in the cost of production of some tradable commodity in the various locations i.e. it is cheaper to produce some commodities in particular locations therefore that location produces the product or service for trade.

“Trade represents a fundamental component of international economic relations, making a decisive contribution to the specialisation in certain types of production and to the economic growth of different countries”.

The Compendium tells us, “Today more than ever, international trade — if properly oriented — promotes development and can create new employment possibilities and provide useful resources. The Church is however aware that there have been challenges particularly for poor countries as the international trade system has evolved.

 “The Church's social doctrine has time and again called attention to aberrations in the system of international trade, which often, owing to protectionist policies, discriminates against products coming from poorer countries and hinders the growth of industrial activity in and the transfer of technology to these countries.

The continuing deterioration in terms of the exchange of raw materials and the widening of the gap between rich and poor countries has prompted the social Magisterium to point out the importance of ethical criteria that should form the basis of international economic relations: the pursuit of the common good and the universal destination of goods; equity in trade relationships; and attention to the rights and needs of the poor in policies concerning trade and international cooperation. Otherwise, ‘the poor nations remain ever poor while the rich ones become still richer’.” 

How can we make a difference in this area where we may think we have limited ability to make an impact? Fair Trade and Catholic Social Teaching (www.crsfairtrade.org) says “Consumers are moral agents in economic life; by our choices…we enhance or diminish economic opportunity, community life, and social justice.” 

We must promote human dignity, by ensuring that persons who are likely to be disadvantaged in trade relations, for instance small farmers in developing countries without access to technology and up-to-date equipment are not exploited by predators in the economic system.

As consumers me must make ourselves aware of the conditions under which goods and services are produced and exchanged and only support those that promote mutually respectful long-term trading relationships with disadvantaged producers around the world

Pope John Paul II wrote in his encyclical Centesimus Annus that a business should act not as a “society of capital goods” directed solely toward the attainment of financial goals, but rather as a “society of persons” that serves the common good of everyone.

This suggests that economic activities should bring producers, business owners and consumers together that leads to each party’s fulfilment and creates additional value to society. 

Our Catholic faith requires that we demonstrate special concern for the most vulnerable members of our human family, and take concrete actions on their behalf. In today’s international trading system, “bigger is better”.

Large companies reduce operating costs because of economies of scale. Small-scale farmers and artisans are therefore at a great disadvantage and often squeezed out of the market by larger firms. These vulnerable producers must be supported by mechanisms which will enable them to compete more effectively.

Mechanisms such as cooperatives, technical assistance, access to technology, equipment and information and adequate compensation for their work.   

Next week we look at Globalisation and Human Rights.

Persons interested in purchasing the Compendium of the Social Doctrine of the Church, nay contact the Justice Desk, Archbishop’s House, 622-6680.