When we speak of the international community as it relates to the economy, the organisations that come readily to mind are the World Bank and the International Monetary Fund (IMF). The Social Doctrine of the Church speaks to the role that these institutions should have in this globalised economy. 

Globalisation has resulted in individual countries losing a great deal of control over things that impact on their internal affairs. Actions by one country or a group of countries have effects on other countries.

The Social Doctrine of the Church says “The loss of centrality on the part of States must coincide with a greater commitment on the part of the international community to exercise a strong guiding role. In fact, an important consequence of the process of globalisation consists in the gradual loss of effectiveness of nation-states in directing the dynamics of national economic-financial systems.

The governments of individual countries find their actions in the economic and social spheres ever more strongly conditioned by the expectations of international capital markets and by the ever more pressing requests for credibility coming from the financial world.

Because of the new bonds of interdependence among global operators, the traditional defensive measures of States appear to be destined to failure and, in the presence of new areas of competition, the very notion of a national market recedes into the background.”

The world economy is now complex. Bearing this in mind it is therefore necessary that there is cooperation at a global level among countries. 

“The more the worldwide economic-financial system reaches high levels of organisational and functional complexity, all the more priority must be given to the task of regulating these processes, directing them towards the goal of attaining the common good of the human family. There is the clear need not just for States but for the international community to take on this delicate chore with adequate and effective political and juridical instruments.

“It is therefore indispensable that international economic and financial institutions should be able to identify the most appropriate institutional solutions and formulate the most suitable plans of action aimed at bringing about a change that, if it were to be passively accepted and simply left to itself, would otherwise produce a dramatic situation detrimental above all to the weakest and defenceless classes of the world'spopulation.”

Further, the poor should be seen not as a problem, but as people who can become the principal builders of a new and more human future for everyone. The Church has long been a tireless advocate for socio-economic development and poverty reduction around the world.

The Compendium states: “In international agencies it is necessary that the interests of the whole human family be equally represented. It is necessary moreover that in evaluating the consequences of their decisions, these agencies always give sufficient consideration to peoples and countries which have little weight in the international market, but which are burdened by the most acute and desperate needs, and are thus more dependent on support for their development”.

This issue of all countries regardless of their economic strength having a say in the global economy and particularly in these institutions came to fore recently with the resignation of former World Bank President Paul Wolfowitz. The rich donor nations were asked to use this opportunity to reform the way in which the heads of the World Bank and IMF are appointed.

It is widely felt that they should be appointed on the basis of merit and as a result of an open and public appointment process and not on the basis of the choices of the United States of America and Europe.  This is necessary in order to give developing and transition countries a greater voice, in light of their rights, population and growing influence in the world today.

Another important area in the international economy and globalisation is politics. “The sphere of politics too, just like that of the economy, must be in a position to extend its range of action beyond national boundaries, quickly taking on an operative worldwide dimension which alone will permit it to direct the processes now underway not only according to economic parameters but also according to moral criteria.

The basic goal is to guide economic processes by ensuring that the dignity of man and his complete development as a person are respected, in the context of the common good. Taking on this task entails the responsibility of accelerating the consolidation of existing institutions and the creation of new entities responsible for this.

Economic development, in fact, will be lasting only to the extent that it takes place within a clear and defined normative context and within a broad plan for the moral, civil and cultural growth of the entire human family.”

As a Catholic community, we have an obligation to remain an invaluable player in the development process and be a source of influence in helping to build broad ownership across society of the economic, political and social reforms necessary for more rapid and inclusive development. 

This means convincing people that policies designed to reduce vulnerabilities are necessary for achievement of the broader social objectives of poverty reduction and greater income equality.
Next week we look at the topic “An integral development in solidarity”.
Persons interested in purchasing the Compendium of the Social Doctrine of the Church, nay contact the Justice Desk, Archbishop’s House, 622-6680.