Posts tagged with: Chicago school of economics

The President of Chile, Sebastián Piñera, visited Pope Benedict XVI in the Vatican yesterday, and the Vatican’s daily newspaper L’Osservatore Romano carried a front-page article by Piñera on “Economic Development and Integral Development,” a theme of great interest to us at Acton and the subject of our current conference series Poverty, Entrepreneurship and Integral Development.

Chile is justly famous for its acceptance of free-market economics through the influence of the “Chicago Boys” who studied under Milton Friedman and others at the University of Chicago. Chileans can and should be grateful that their dictator, Agosto Pinochet, decided to leave the economy alone, unlike the other meddling dictators in Latin America who submitted their peoples to decades of economic planning and resulting misery. (Watch this clip from the fascinating PBS documentary The Commanding Heights on the Chicago Boys and Pinochet.)

Piñera’s article is noteworthy because 1) he takes economics seriously as a moral and human endeavor and doesn’t simply assume that it is vulgar albeit necessary aspect of life, and 2) he realizes that as important as economics is, it is just one aspect of life. He also backs up his economic arguments with facts and gives concrete examples of what his government plans to achieve.

If I were to quibble with anything, it would be his support of the United Nations Millennium Development Goals (MDG). No one will deny that the MDG are laubable goals, but as someone who worked for the Holy See Mission to the UN when these were being drafted, I find it a stretch to support them from a Catholic free-market perspective. The MDG rely far too much on mechanisms of the state to re-distribute wealth and do far too little to encourage entrepreunership through the core functions of the state – fighting crime, protecting private property, etc. Acton followers will recognize these arguments in our Poverty Cure initiative.

All in all, the President of Chile should be forgiven this misstep. His article nicely encapsulates what many of us know to be the surest way to promote material and spiritual advancment – through the promotion of a limited government, free entreprise, and a civil society based on sound religious and moral principles.

It doesn’t sound like rocket science, I know, but it’s always surprising how many religious leaders and development “experts” miss the boat on this.

Here’s my translation of Piñera’s piece from the Italian:

Economic Development and Integral Development
by Sebastián Piñera, President of the Republic of Chile
L’Osservatore Romano Italian daily edition, 3 March 2011

Development has always been a central objective of humanity and constitutes a top priority for nations, governments and the international community. Countries are usually classified as developed or developing, but in recent years a third category has arisen: emerging nations.

True development, however, is much more than the simple production of goods or the attainment of a certain economic output. In Caritas in veritate, Benedict XVI has deepened and emphasized the concept and necessity of an integral development, as proposed by Catholic social doctrine. Such development must favor the realization of the human person in his material and spiritual dimensions. So conceived – embracing the whole dimension of man – development is called to promote the quality of life, the common good, and defend the life and inalienable rights of the human person at all times and in all places and circumstances, with a view to a transcendent humanism. (more…)