By Father John Flynn, L.C.
ROME, JUNE 24, 2007 (Zenit.org).- Confrontations over globalization no longer make headlines, but many concerns remain over the future of the world economy. In past months the question of growing economic inequality has come under increasing attention.
Globalization has delivered many benefits, argued a front-page article published May 24 by the Wall Street Journal. The article did concede, however: “As trade, foreign investment and technology have spread, the gap between economic haves and have-nots has frequently widened, not only in wealthy countries like the United States, but in poorer ones like Mexico, Argentina, India and China as well.”
The experience of the last few years is showing that those with education and skills benefit from globalization. Others, without these advantages, are not so fortunate. While not forgetting the benefits of globalization for many millions of people, the Wall Street Journal also expressed concern that the growing inequalities could provoke a backlash that would damage trade and investment.
Earlier this year, U.S. Federal Reserve Chairman Ben Bernanke also warned of problems stemming from economic inequality. In a speech given Feb. 6 to the Greater Omaha Chamber of Commerce in Nebraska, Bernanke defended the idea that the free market does not guarantee an equality of economic outcomes, allowing as it does the possibility for unequal rewards due to differences in effort and skill.
Slipping down the ladder
“That said, we also believe that no one should be allowed to slip too far down the economic ladder, especially for reasons beyond his or her control,” he added in the text posted on the Federal Reserve Board site.
Outlining evidence from a variety of sources, the Federal Reserve chairman pointed out that over the last few decades economic well-being in the United States has increased considerably. At the same time, he observed that “the degree of inequality in economic outcomes has increased as well.”
Bernanke admitted the difficulty of resolving the question of how to maintain a balance between a market system that uses economic incentives and stimulates growth, and the need to protect individuals against adverse economic outcomes.
Proposing solutions to this problem involves value judgments beyond the realm of economic theory, Bernanke concluded. He did, however, suggest a range of possible measures, ranging from education and job training, to helping individuals and families bear the cost of economic change, as ways to affront the problem of inequality.
A similar position was expressed in an opinion article by Danny Leipziger and Michael Spence, published in the Financial Times on May 15. The authors, respectively a vice president at the World Bank and a 2001 Nobel laureate in economics, argued that in the globalization debate the most important issue is “who benefits and who loses.”
“Globalization is a positive sum game in the aggregate but one that produces both winners and losers,” they also observed.
Leipziger and Spence supported improvements in education to help workers affront the current situation. In addition, they called for better safety nets, more investment in infrastructure and assured access to services such as health care.
Dignity of the person
Amid the ongoing debate over issues of economics and ethics, Benedict XVI has addressed these issues on several occasions in recent months. On May 26 he spoke to a group of young people from Confindustria, the General Confederation of Italian Industry.
Every business, the Pope noted, should be considered first and foremost as a group of people, whose rights and dignity should be respected. Human life and its values, the Pontiff continued, should always be the guiding principle and end of the economy.
In this context, Benedict XVI acknowledged that for business, making a profit is a value that they can rightly put as an objective of their activity. At the same time the social teaching of the Church insists that businesses must also safeguard the dignity of the human person, and that even in moments of economic difficulties, business decisions must not be guided exclusively by considerations of profit.
The Pope also dealt briefly with the theme of globalization. This is a phenomenon, he commented, that gives hope of a wider participation in economic development and riches. It is a process not without its risks, however, leading in some cases to worsening economic inequality. Echoing the words of Pope John Paul II, Benedict XVI called for a globalization characterized by solidarity and without marginalization of people.
Other principles that need to guide the economy are justice and charity, Benedict XVI explained in a message, dated April 28, to the president of the Pontifical Academy of Social Sciences, Mary Ann Glendon. The letter was sent on the occasion of the plenary session of the academy, held April 27-May 1.
The pursuit of justice and the promotion of the civilization of love, the message stated, are essential aspects of the Church’s mission in its proclamation of the Gospel. Justice and love cannot be separated, the Pope observed, because of the Church’s experience of how the two were united in “the revelation of God’s infinite justice and mercy in Jesus Christ.”
Justice, he continued, must be “corrected” by love, a love which inspires justice and purifies our efforts to build a better society. “Only charity can encourage us to place the human person once more at the center of life in society and at the center of a globalized world governed by justice,” the Pope stated.
The Pope took a closer look at some of the problems facing workers in a couple of speeches earlier this year. In a message dated March 28, sent to participants in the 9th International Youth Forum organized by the Pontifical Council for the Laity, Benedict XVI commented that in recent years economic and technological changes have radically changed the labor market.
This has given hope to young people, the Pontiff conceded, but it also brings with it the need for greater skills and education, and the demand that workers be prepared to travel, even to other countries, in searching for jobs.
Work, he explained, is part of God’s plan for humanity and through it we participate in the work of creation and redemption. We will live this better, the Pope urged, if we remain united to Christ through prayer and sacramental life.
Then, on March 31, Benedict XVI spoke to a gathering of Confartigianato, an association of Italian artisans. Work is part of God’s plan for man, even if because of original sin it has become more of a burden, the Pope explained.
It is important, he exhorted, to proclaim the primacy of the human person and the common good over capital, science, technology and even private ownership. As Christians, we can testify to the “Gospel of work,” in our daily lives, the Pope reminded them.
The Pontiff also had words for those directing workers, in an address to a group from the Italian group, the Christian Union of Business Executives on March 4. Justice and charity, the Pope said, are inseparable elements in the social commitment of Christians.
“It is incumbent on lay faithful in particular to work for a just order in society, taking part in public life in the first person, cooperating with other citizens and fulfilling their own responsibility,” said the Pope.
“Unfortunately, partly because of current economic difficulties, these values often run the risk of not being followed by those business persons who lack a sound moral inspiration,” he also noted. Values which, together with sound economic policies, could go a long way in finding solutions to the ethical challenges in a globalized world.