Posts tagged with: Caritas in Veritate

The official release of Pope Benedict’s social encyclical Caritas in Veritate took place this morning at the Holy See Press Office in Rome.

There were four speakers at the presentation: Cardinal Renato Raffaele Martino, President of the Pontifical Council for Justice and Peace (PCJP), Cardinal Paul Josef Cordes, President of the Pontifical Council Cor Unum, Archbishop Giampaolo Crepaldi, the newly-appointed bishop of Trieste and former Secretary of PCJP, and Professor Stefano Zamagni, Professor of Economics at the University of Bologna and a consultor for PCJP.

All of the formal presentations in Italian can be found here.

It’s well-known but not often publicly revealed that the presenters of an encyclical were usually close collaborators with the pope on the encyclical, so it’s often worth listening to their explanations and more importantly their answers to the journalists’ questions.

I won’t provide a blow-by-blow account, but here is my summary of more interesting issues raised at the press conference:

- Both Cardinal Martino and Archbishop Crepaldi spoke of the ideology or problem of technique as one of the new, main themes of the encyclical.

- Cardinal Cordes denied that the encyclical or the Church proposes a “third way” between capitalism or socialism, as the Church has no technical model to offer. (This leads one to wonder if a moral critique can be made without an adequate technical understanding, as the former Cardinal Ratzinger once wrote.)

- Professor Zamagni noted the distinction between a market economy and capitalism (which was also made in Pope John Paul II’s Centesimus Annus, n. 42), adding that the Franciscans had a form of market economy in Italy long before the term “capitalism”, with its Marxist ideological connotations, ever existed.

- There were several questions about this very important distinction, with one French journalist noting an “anti-liberal, anti-capitalist” slant to the encyclical and another asking about the role of profit in a pre-capitalist, market economy. It was encouraging to hear Professor Zamagni deny the first and Cardinal Martino speak positively about the second.

- Professor Zamagni also addressed the nature of the ethical basis of the encyclical, stating that not all ethical systems are the same. The encyclical is based on “a virtue ethics that comes from Aristotle and Aquinas”.

- The most difficult questions concerned the nature of a “world political authority” mentioned in n. 67 of the encyclical, which refers to Pope John XXIII’s Pacem in Terris. Is this authority the same as the United Nations? Why would the Holy See, which has fought tooth-and-nail to protect the sanctity of life, marriage and the family at the UN, think such an authority would be a good thing? Would giving “real teeth” to the UN be a good idea? And why would Prof. Zamagni call for a Security Council for social and economic affairs, when the actual Security Council is widely regarded to be an ineffective way of dealing with international peace and security?

The answers to these questions usually referred to previous papal encyclicals, the difference between government (or a supra-state) and governance, which would presumably respect subsidiarity better than other supra-national entities such as the European Union. Others answered that the UN is the only game in town and the Holy See has to work with it.

I know, I know. These aren’t very satisfying answers to me either, and I used to work for the Holy See at the UN! Well, maybe Pope Benedict’s next social encyclical can take up issues of sovereignty and international relations. For now, we should carefully read and digest Caritas in Veritate.

Relativists beware. Whether you like it or not, truth matters – even in the economy. That’s the core message of Pope Benedict XVI’s new social encyclical Caritas in Veritate.

For 2000 years, the Catholic Church has hammered home a trio of presently-unpopular ideas into the humus of human civilization: that there is truth; that it is not simply of the scientific variety; that it is knowable through faith and reason; and that it is not whatever you want or “feel” it to be. Throughout his entire life, Benedict XVI has underscored these themes, precisely because much of the world, including many Christians, has lost sight of their importance.

Perhaps Caritas in Veritate’s most important truth-claim about economic life is that the market economy cannot be based on just any value-system. Against all relativists on the left and the right, Benedict maintains that market economies must be underpinned by commitments to particular basic moral goods and a certain vision of the human person if it is to serve rather than undermine humanity’s common good: “The economy needs ethics in order to function correctly — not any ethics whatsoever, but an ethics which is people-centred” (CV no.45)

“Without internal forms of solidarity and mutual trust,” the Pope writes, “the market cannot completely fulfill its proper economic function” (CV no. 35). This surely has been amply confirmed by the recent financial crisis. America’s subprime-mortgage market collapse was at least partly attributable to the fact that literally thousands of people lied on their mortgage application forms. Should we be surprised that mass violation of the moral prohibition against lying has devastating economic consequences? “The economic sphere”, the pope reminds us, “is neither ethically neutral, nor inherently inhuman and opposed to society. It is part and parcel of human activity and precisely because it is human, it must be structured and governed in an ethical manner” (CV no.36).

Contrary to the pre-encyclical hype of certain American commentators and the ever-unreliable British press, predictions of papal anathemas against “global capitalism” have – as usual – been found wanting. In economic terms, the pope describes as “erroneous” the tired notion that the developed countries’ wealth is predicated on poor nations’ poverty (CV no.35) that one hears customarily from the likes of Hugo Chavez and whatever’s left of the dwindling band of aging liberation theologians. That’s a pontifical body-blow to a central working assumption of many professional social justice “activists”.

Nor will they be happy with the pope’s concerns about the ways in which foreign aid can produce situations of dependency (CV no.58), not to mention Benedict’s strictures against protectionism (CV no.42) as well as his stress that no amount of structural change can possibly compensate for people freely choosing the good: “Integral human development presupposes the responsible freedom of the individual and of peoples: no structure can guarantee this development over and above human responsibility” (CV no.17).

Nor does Benedict regard the market as morally problematic in itself. “In and of itself,” the Pope states, “the market is not . . . the place where the strong subdue the weak. Society does not have to protect itself from the market, as if the development of the latter were ipso facto to entail the death of authentically human relations” (CV no.36). What matters, Benedict claims, is the moral culture in which markets exists.

At the heart of the economy are human persons. People whose minds are dominated by crassly hedonistic cultures will make crassly hedonistic economic choices. “Therefore”, Benedict comments, “it is not the instrument that must be called to account, but individuals” (CV no.36).

The implications of truth for economic life do not, however, stop here. For Benedict, it is a lens through which to assess ideas such as “business ethics”, “ethical investing” and “corporate social responsibility.” The notion that investment and business choices have a moral dimension is hardly new. What matters for Benedict is the understanding of morality underlying these schemes. Merely labeling an investment scheme as “ethical”, Benedict notes, hardly tells us whether it is moral (CV no.45).

A second major truth underscored by Benedict is the indispensability of a strong civil society for both undergirding and limiting the market and the state. By this, he does not mean a plethora of government-funded NGOs, many of whom Benedict identifies as intent upon imposing some of the very worst aspects of Western lifestyle-libertarianism upon developing nations (CV no.28). Certainly, Benedict believes, there is a need to re-evaluate (CV no.24) how the state regulates different parts of the economy. Ultimately, however, Benedict stresses that the virtue of solidarity, he argues, is about people concretely loving their neighbour; it “cannot therefore be merely delegated to the State” (CV no.38). This is reminiscent of Alexis de Tocqueville’s attention to the manner in which the habit of free association both limits the size of government while also discouraging people from retreating into their own little bubbles.

The economist John Maynard Keynes is famous for many things, including the saying that “in the long run, we’re all dead.” The horizon of Benedict XVI’s perspective on economic life is rather different. The pope asks people to live their economic lives in the short, medium, and long-term as if living in the truth is eternally important, not to mention eternally relevant to their soul’s salvation.

That’s change we can all believe in.

My commentary on the forthcoming social encyclical was published on National Review Online. Here’s the complete text:

On Tuesday, Pope Benedict XVI will release his first social encyclical, Caritas in Veritate. The pre-release buzz from the Catholic Left on each of his two previous encyclicals has so far proven wrong each time, so the rule should be to wait and see what the pope will actually say.

Each time, with previous encyclicals, we have been told that the pope is preparing to lambaste capitalism and call for state measures to heavily regulate it with an eye to redistributing wealth, cleaning up the environment, controlling consumption, etc. Each time, the final text has demonstrated that the pope’s conversion to progressivist causes has been greatly exaggerated. Invariably, his arguments have been highly sophisticated and have defied easy political categorization.

In advance of Caritas in Veritate, Catholic “progressives” are working themselves into a frenzy of predictions, recommendations, and anathemas — and not one of them, to my knowledge, has seen even an early draft of the encyclical which has been two years in the making.

Will the document draw attention to the weaknesses of Western-style capitalist systems? One hopes so. We might expect the pope to call on market forces to be regulated by moral concerns, within a strong juridical framework, and an exogenous apparatus of standards to curb excesses.

But here is the operative question: In what sense would such a call be a blow against the idea of free economic institutions? The short answer is that it will not be.

There are few advocates of market economics who advocate a complete lack of regulation rightly understood. Every transaction in the marketplace is in fact regulated by contract law, reputation, industry standards, competition, certification and monitoring, and profit and loss systems that reward prudence and punish excess over the long term.

Do these need strengthening? Certainly, and it should be noted that a main force for weakening them is not the market as such, but partisan interventions in the market. (more…)

Pope Benedict XVI’s much anticipated economics encyclical, Caritas in Veritate, is scheduled to be released early next week, according reports. For a good sense of this pope’s thinking on economics, we offer an article the then-Joseph Cardinal Ratzinger presented in 1985 at a symposium in Rome.  The Acton Institute published it under the title “Market Economy and Ethics.”  As indicated by the following quote, the pope believed in integrating morals into economics in order to have sound and successful economic policy:

This determinism, in which man is completely controlled by the binding laws of the market while believing he acts in freedom from them, includes yet another and perhaps even more astounding presupposition, namely, that the natural laws of the market are in essence good (if I may be permitted so to speak) and necessarily work for the good, whatever may be true of the morality of individuals. These two presuppositions are not entirely false, as the successes of the market economy illustrate. But neither are they universally applicable and correct, as is evident in the problems of today’s world economy.

Without developing the problem in its details here — which is not my task — let me merely underscore a sentence of Peter Koslowski’s that illustrates the point in question: “The economy is governed not only by economic laws, but is also determined by men…” Even if the market economy does rest on the ordering of the individual within a determinate network of rules, it cannot make man superfluous or exclude his moral freedom from the world of economics. It is becoming ever so clear that the development of the world economy has also to do with the development of the world community and with the universal family of man, and that the development of the spiritual powers of mankind is essential in the development of the world community. These spiritual powers are themselves a factor in the economy: the market rules function only when a moral consensus exists and sustains them.

According to the Catholic News Agency, an Italian newspaper claims to have acquired some parts of the upcoming Caritas in Veritate encyclical of Pope Benedict XVI.  Some of the quotes published by Corriere della Sera are claimed to be from the encyclical and align with the predictions that the Pope will be advocating for morality to be the basis of solving our economic crisis. Here is a quote:

Without truth, without trust and love for what is truthful, there is no conscience or social responsibility, and the social action falls under the control of private interests or logics of power, with the destructive effect on society, even more on a society on the way to globalization, in difficult moments like the current ones.

Corriere della Sera also says that the encyclical will address a number of global issues, including world hunger.  The Italian paper pulls a few other claimed quotes from the Pope’s encyclical: Charity in truth requires an urgent reform to confront courageously and without hesitation the great problems of injustice in the development of the nations; Food and water are universal rights; [and] the development of all nations depends above all in recognizing that we are one single family.

Despite all of the rumors, predictions, and claims to know what the Pope’s encyclical actually says, we are going to have to wait until to release to finally hear the Pope’s words.  The PowerBlog will continue to cover the encyclical prior to and after its release.

Only if there are new human beings will there be a new world, a renewed and better world.

When the Pope said these words at Vespers on Sunday, perhaps he had Bernie Madoff in mind.

Today, Madoff was sentenced to 150 years in prison for defrauding his investors of nearly $65 billion over the course of 20 years. His corruption and crimes ruined the livelihoods of thousands of businesspeople, charity workers, and families that trusted his sterling reputation to protect everything that they had worked to earn.

Unfortunately, Madoff is not the only man to have betrayed his financial responsibilities to others. The last few years saw financial scandals at Enron and WorldCom shake the public’s trust in corporations. Just two weeks ago, Texas billionaire R. Allen Stanford was arrested by the FBI on charges that he used a bank in Antigua to mask his $8 billion fraud, stealing from his investors.

When Pope Leo XIII published his encyclical Rerum Novarum in 1891, he wrote that “A small number of very rich men have been able to lay upon the teeming masses of the laboring poor a yoke little better than slavery itself.” The global economy has come a long way since then, with the rise of laws designed to fight white-collar crime, the expansion of opportunities for Third World entrepreneurship with the removal of tariffs, and the creation of enough wealth to eliminate most of the horrific working conditions of the Victorian Era. (more…)

There has been much discussion, commentary, and debate on Pope Benedict’s much anticipated encyclical on the economy Caritas in Veritate (remarkable for a statement that has not yet been released).  At the PowerBlog, we will keep you informed on what is being said about the encyclical and, when it is released, we look forward to providing great coverage.

Two of the most recent commentaries came from John Allen Jr. in the National Catholic Reporter and Michael Novak in First Things.  In Allen’s preview of the new encyclical he states:

In effect, what Benedict laid out last night likely amounts to the theological and spiritual substructure of the encyclical, minus the specific economic prescriptions.

The core of what Benedict said, during an ecumenical vespers service at the grand basilica of St. Paul Outside the Walls, is that building a better world requires forming better people.  Structural reform thus presuppose personal moral and spiritual renewal, including a life devoted to prayer and the sacraments.

Allen further hints at the theme of the encyclical with his statement:

The idea that a better world must be built on better people is likely to be a core theme in Caritas in Veritale, and the pope dealt with it at length yesterday.

“Paul tells us [that] the world cannot be renewed without new human beings,” Benedict said. “Only if there are new human beings will there be a new world, a renewed and better world.”

There is much speculation that the new encyclical will be in favor of free markets and Novak responds to the criticism from those on the left:

For moralists, it is essential to see how often (not always) government itself sins grievously against the common good, out of a lust for power and domination over others.  Furthermore, government often (not always) generates foolish and destructive regulations, and often dispenses justice that winks rather than justice that is blind.  Government is more frequently the agent of injuring the common good than the ordinary lawful actions of free citizens.  During the twentieth century, governments too often destroyed the common good of their citizens for years to come.