In the following Video, Istituto Acton Director and conference moderator, Kishore Jayabalan, spoke candidly to UniRoma TV along with morning panelist, Dr. Raquel Vaz-Pinto of the Catholic University of Portugal.
Kishore Jayabalan says that when difficult ethical problems arise in economies, we are expected to use our “reason and faith” to resolve moral dilemmas and that the Church plays a most vital role in educating society in basic moral principles. Dr.Vaz-Pinto says that in terms of advancing the necessary foundations of a free society, Asia has made great progress in demanding higher standards for human and political rights as businesses are left freer to grow and develop on their own.
Last week in Rome the Acton Institute presented a promotional video for the PovertyCure initiative before an international audience of businessmen, scholars, journalists, graduate students and missionaries in attendance at the Institute’s May 18 development economics conference: “Family-Enterprise, Market Economies, and Poverty: The Asian Transformation.” The Acton Institute is one of many partners in this new initiative made up of a network of individuals and organizations looking for free-enterprise solutions to poverty.
The video caused quite a stir in the hearts and minds of the attendees. So I solicited some feedback from the audience, a great percentage of whom hailed from countries with developing and emerging markets.
A missionary Ph.D. student at the Pontifical Gregorian University told me after the presentation: “This brief trailer has already brought to my clear attention the real hindrances to economic growth in South America and throughout (other) developing and emerging markets. And more importantly, what impressed me was what we have to do — through our own pastoral outreach — to begin changing the pervasive dependency on government hand-outs.”
One of the Vatican beat journalists present at the showing, Edward Pentin (who contributes to the National Catholic Register and Zenit, among others) had the chance to interview Acton’s president, Rev. Robert Sirico, about the video’s purpose and potential impact on changing common opinions on failing aid-based development economic systems.
In responding to Pentin’s questions, Rev. Sirico said the video’s aim is “to challenge the development community to really focus on developing, that is, opening spheres of economic productivity and cooperation … allowing the others to contribute to their own prosperity.”
Below you can find the May 19 Zenit article (or go here) and the Poverty Cure video.
Fostering prosperity by Edward Pentin
Vast amounts of state aid and governments imposing endless regulations are not the way to solve global poverty; rather it will be done through trade, private enterprise and helping populations in poor countries to contribute to their own prosperity.
This is the view shared by members of PovertyCure — an international network of individuals and NGOs who are seeking to encourage anti-poverty solutions through fostering opportunity and unleashing the entrepreneurial spirit in the developing world.
A leading partner and one of the main organizers of the network is the Grand Rapids-based Acton Institute for the Study of Religion and Liberty. Its president and co-founder, Father Robert Sirico, told ZENIT there is “plenty of data across the board” that has long been known to create prosperity — namely low taxation, low regulation and increased market globalization. “This doesn’t come without some problems as the Pope and others have indicated, but this is the first time in human history where we know how to solve poverty.”
Father Sirico said one of the overarching aims of PovertyCure is “to challenge the development community to really focus on developing, that is opening spheres of economic productivity and cooperation,” allowing the others to “contribute to their own prosperity.” “When I put it like that it sounds so clear and simple,” he said, “but it is and that’s what’s frustrating.”
The American priest noted the challenges of overcoming a static mindset that believes government aid is the only real solution to global poverty. But he also highlighted a “perhaps more sinister” problem which is a “huge institutional vested interest in leaving the situation as it is.” He was referring to the thousands of people employed through aid program bureaucracies that are averse to change for fear it will put them out of a job. Father Sirico said it is “ridiculous to spend significant proportions of development money on supporting bureaucracies to administer programs.”
Instead he prefers what, in Caritas in Veritate, Benedict XVI calls “fiscal subsidiarity” — a form of creating credits in various nations not for foreign governments to invest in developing nations but for the citizens to invest in businesses in poor countries, and to have their tax burden lightened with respect to the investment that they give. “That’s one approach,” he said. “The other is to obviously drop the scandalous trade barriers that separate people and create pockets of interest in maintaining unfair portions of the market.”
When put to him that some aid agencies believe international aid should be a mix of private entrepreneurship and state aid, Father Sirico said governments should be “the last in and not be the most dominant” in a development situation which tends to always be very delicate. “The problem is that government is very heavy handed and bureaucrats develop self interest in justifying their existence,” he said. “So it sounds very reasonable to say you want to have a partnership but when the partner is a huge gorilla, and the other partners are small little enterprises, the gorilla has the say.”
He therefore prefers to approach the issue “through the lens of subsidiarity.” Otherwise, he said, there’s a tendency on the part of government to “suck all the air out of the room” and not allow scope for enterprise.
He readily concedes, however, that what he is advocating is not a panacea, nor that the free market is naturally moral. “People caricature my approach, saying [I believe] the market is virtuous,” he said. “But the market will reflect all of the vices and virtues that people will reflect in their own private life because that’s in fact what the market is.”
For this reason, he calls “for a more robust form of evangelization.” It’s evangelization, he said, that “really shows us what we need to do rather than covering it over with regulations and giving the impression that if we made regulations then we’ve solved the problem. That’s simply not the truth in terms of human misery.”
Father Sirico was speaking on the sidelines of a May 18 Acton conference in Rome on the transformation of the Asian economy through the expansion of trade, commerce, and entrepreneurship. He said that Asia is one of the “great examples” that “really underscores our point.”
In its vision statement, PovertyCure states that Christ calls us to solidarity with the poor, but this means more than just material assistance. “It means seeing the poor not as objects or experiments, but as partners and brothers and sisters, as fellow creatures made in the image of God with the capacity to solve problems and create new wealth for themselves and their families. At a practical level, it means integrating them into our networks of exchange and productivity.”
The Acton Institute and its co-members of PovertyCure are inviting other partners and NGOs to join the network. More details can be found on its Web site at: www.povertycure.org
The following RomeReportsvideo is an excellent overview of some of the obstacles that China still faces if it expects to sustain its current economic success.
In the video Dr. Raquel Vaz-Pinto, a panelist from the Catholic University of Portugal and an expert on Chinese culture, spoke frankly about such issues, while criticizing the welfare time-bomb, the one-child policy, and the state of religious freedom in China while pleading for a more active Church in promoting a socially responsible economic culture.
Fr. Bernardo Cervellera, the outspoken missionary of the Pontifical Institute of Foreign Missions (PIME) and editorial director of AsiaNews (a leading Catholic news agency) recounted some controversial stories from his nearly twenty years experience in China as a professor of Western civilization and foreign journalist.
Fr Cervellera, author of Mission China: The Empire between Market and Repression, expressed his concern for the “conversion of China” before it can truly become successful economically in the long term (coincidentally on the same day the pope asked us to do the same for China during his Wednesday public audience. See also the video of the audience.).
During the afternoon session of the Acton’s international conference series dedicated to Poverty, Entrepreneurship and Integral Development, Fr. Cervellera followed the inspiring testimony and practical proposals of successful Christian entrepreneurs in Asia, including financial moguls Charles Gave and Michael Hintze and social venture capitalist Kim Tan, of Malaysian origin, who has financed successful businesses throughout the developing world.
The PIME missionary spoke frankly about moral-anthropological underpinnings to sustain hard working, enterprising economies while referring to a tragic case in the booming industrial province of Guangdong where the free market experiment is underway.
Fr. Cervellera told the shocking story of “a wave of recent worker suicides at Foxconn”, a leading manufacturer of electronic components for Apple’s iPhone, Nokia, Siemens, and Sony.
Within the last year, Cervellera said there has been about “about twelve or thirteen suicides at the company where, every now and then, another worker would jump from a window of the adjacent workers’ dormitory.”
He noted that the Foxconn employees enjoyed a nice housing perk in addition to decent wages of about 1800 yuan a month, much more than average pay in the Chinese manufacturing sector.
But they worked like cogs in a machine with strictly calculated bathroom breaks and were forbidden to talk to one another at work stations.
Cervellera explained that the string of Foxconn worker suicides could not be remedied by “professional counseling, 70 percent salary increases, …or even a no-suicide clause written into Foxconn employees’ contracts”.
“The suicides continued and only came to a halt only when the company added safety nets to under the apartment building’s windows.”
Cervellera said the Foxconn suicides was a clear indication of a widespread spiritual vacuum in Chinese business culture, as most companies do not inspire or foster meaning in their workers’ daily lives.
He forewarned the audience that China must seek a symbiosis between economic and spiritual growth, where a “ a boom in faith and economic production occur together.”
Fr. Bernardo Cervellera said that all human success, especially economic success, must flourish under protected religious freedom – “the freedom to seek and apply spiritual value in our daily work and enterprise.” Without this, such freedom to succeed at the workplace ends up being meaningless, hollow, without real human significance:
“What does this all mean?… Many Chinese businesses have imbalanced focus in production and profit, without giving deep value to work itself and to the person who labors in a unique, talented capacity”, Cervellera said.
At the end of the conference, Acton introduced the extended trailer to its new documentary – Poverty Cure – where some of the moral anthropological obstacles to an enterprise culture in developing regions are brought to vivid light.