Posts tagged with: subsidiarity

Blog author: lglinzak
posted by on Thursday, March 31, 2011

To provide water for people, communities have usually turned to  two different options: public or private utilities. However, if Bolivian President Evo Morales, leader of the Movement Towards Socialism Party, gets his way, the United Nations will pass a resolution blocking the sale of public water utilities to private companies. If adopted, this resolution will cause problems for many nations, especially the undeveloped countries receiving support from the U.N. that will be forced to abide by one option—public supply of water—instead of being permitted to consider privatization which may be more efficient and cost effective.  The makes the global water crisis much worse.

It will not help any country to limit its options when searching for the most efficient and cost effective solutions for providing a clean, sanitary, and abundant source of water.

Theories and examples in support and against both private and public water utility systems are numerous. A study conducted by the University of Michigan showed that water prices, in general, are too low. The study explains that direct and indirect subsidies, in both developed and undeveloped countries, have caused low prices, resulting in water waste. Furthermore, the study argues that if the subsidies are removed, the price of water will increase and provide an incentive for those utilizing water to not waste it. This, in turn,  will result in the investments that are needed to develop more efficient technologies. If subsidies are removed, then a lighter burden is placed on public funds.

Lending support to the findings of the University of Michigan study, a survey conducted in 2004 by Global Water Intelligence found that the under-pricing of water is widespread. The study analyzed the prices charged by water utilities in 132 major cities worldwide and found that 39 percent of water utilities had average tariffs that are set too low to cover basic operation and maintenance costs. Some 30 percent had tariffs that are set below the level required to make any contribution toward the recovery of capital costs.

Changing the price system may be a solution. Some argue for a metering that charges water users based on consumption. However, while subsidies are proving to be largely inefficient the question must be asked: Can those in undeveloped countries, who are already living in a state of grave poverty, afford increased prices on water?

The International Development Association and the World Bank are quick to point out the success of private water utilities. Examples can be found in Rwanda and Mozambique where the private sector helped provide, improve, and/or expand the water supply. The U.N. has acknowledged five reasons to pursue private sector partnerships.

A private sector supply of water can be more efficient and cost effective. According to the World Bank, it is estimated that in the United States each dollar of public funds raised for utilities has an opportunity cost of $1.30 of private consumption, and the average opportunity cost for each dollar of tax revenue raised is $1.17 for 38 African countries.

Critics of the privatization of water argue that while it is more efficient and cheaper, the private systems fall short of social equity in supplying water and charge higher prices. While there have been unsuccessful stories of privatization, the aforementioned examples in Rwanda and Mozambique are a just a few of the many success stories, and, as The Economist notes, when private utilities charge higher prices, that often corresponds to higher rehabilitation investments, better water quality, and better service.

Privatization will also promote the decentralization of  government, and in the case of many developing nations, remove the control of water out of the hands of corrupt bureaucrats. A large overarching centralized government is not needed. Instead, the principle of subsidiarity should be applied.

Private entities are able to supply an efficient and cost effective supply of water. Privatization is an effective solution, and its ability to meet the needs of consumers has improved. As a result, water supply can follow the principle of subsidiarity by utilizing other alternatives to supply water instead of through a system brought forth by a centralized government.

It is important to note that just as public utilities are open to corruption, inefficiencies, and poor management, so is privatization. Privatization can fall subject to a corrupt government. The example of Detroit is instructive here. For example, when a government decides to contract a private utility to supply water, instead of having an open bidding process, the government accepts no outside bids and picks a company that is owed a political favor. If privatization is to succeed government must take the appropriate actions to allow it to succeed and also nurture an environment that is open to decentralization, promoting business without unnecessary government interference.

Blog author: lglinzak
posted by on Monday, February 21, 2011

Budget battles have heated up recently throughout the United States, and President Obama’s budget proposal has not been exempted from the intense discussion.

The current proposal by the President pushes our national debt to $15.476 trillion or 102.6 percent of our GDP.  Furthermore, there are no cuts to entitlement spending which consist of 57 percent of the spending in the budget, or approximately $2.14 trillion.

While it is imperative to our economic recovery to have a budget that is fiscally sound, it is also crucial to have a budget that is morally sound.  There are critics to cutting entitlement programs, however, a fiscally sound budget which may require a look at entitlement cuts and reforms, will help the poor and vulnerable.  If we continue the spending trend the United States has been fostering under previous budgets than economic recovery will be hampered which means less job opportunities.  The poor and vulnerable will be dependent on entitlement programs, violating the principle of subsidarity.

A fiscally responsible budget also abides by stewardship principles.  To be good stewards we must look long term and create a strong and stable prospering economy not just now, but for our children and grandchildren.  Monsignor Ignacio Barreiro-Carámbula addresses this issue in his blog post:

…we are leaving our debts to future generations. We are asking them to pay the principal and the interest on our debt with their labors. This is akin to forcing them into a form of indentured servitude to us, and it will last long after we have gone to meet our Maker. By law, one can reject an inheritance if has more liabilities than assets, but a citizen cannot reject public debt if he wants to remain a citizen…

Rev. Sirico also articulates the necessity of morality in the Federal Budget during his recent interview with Raymond Arroyo on EWTN’s World Over.

With health care moving back to center stage in Washington, we’re publishing Dr. Donald Condit’s Acton monograph A Prescription for Health Care Reform as a free eBook readable in a variety of formats. This excellent work continues to be available for $6 (paperback) in the Acton Bookshoppe.

For your free eBook, visit Acton’s Smashwords page. The Condit book will soon be available in the Kindle store (no charge for that, either) and in other eBook retail sites. We’ll keep you updated when they become available.

Via Smashwords, you can download digital versions of the 81-page health care monograph for eBook readers, smart phones and computer screens.

The monograph was released before the passage of the Patient Protection Act in March. Dr. Condit has recently authored an update in the November 2010 issue of the Linacre Quarterly, published by the Catholic Medical Association. The medical association has graciously offered readers of the Acton PowerBlog an open link to Dr. Condit’s new article, “Health-Care Counter-Reform.”

The Jan. 5 Acton commentary was based on the Linacre article. Read “Obamacare and the Threat to Human Dignity” by Dr. Donald Condit.

Blog author: jcouretas
posted by on Monday, January 10, 2011

From the Jan. 5 Acton News & Commentary. This is an edited excerpt of “Health-Care Counter-Reform,” a longer piece Dr. Condit wrote for the November 2010 issue of the Linacre Quarterly, published by the Catholic Medical Association. For more on this important issue, see the Acton special report on Christians and Health Care. Dr. Condit is also the author of the 2009 Acton monograph, A Prescription for Health Care Reform, available in the Book Shoppe.

Obamacare and the Threat to Human Dignity

By Dr. Donald P. Condit

Since President Obama signed the Patient Protection Act into law in March 2010, the acrimonious debate on this far-reaching legislation has persisted. For many, the concerns over the Obama administration’s health care reform effort are based on both moral and fiscal grounds. Now, with House Republicans scheduling a vote to repeal “Obamacare” in the days ahead, the debate is once again ratcheting up.

Perceived threats to the sanctity of life have been at the heart of moral objections to the new law. Despite a March 2010 executive order elaborating the Patient Protection Act’s “Consistency with Longstanding Restrictions on the Use of Federal Funds for Abortion,” many pro-life advocates fear a judicial order could reverse long-standing Hyde amendment restrictions on the use of federal tax dollars for abortion. Impending Medicare insolvency and the Patient Protection Act’s establishment of an “independent payment advisory board” to address treatment effectiveness and cost suggest bureaucratic restrictions on the horizon for medical care of the elderly and disabled.

The objections made on fiscal grounds are serious. Prior to the 2008 presidential election, Barack Obama voiced concern for 47 million Americans without health insurance. More recently, supporters of this legislation focused on 32 million Americans, with 15 million immigrants and others left out of the equation, yet still requiring care in United States emergency rooms. The Patient Protection Act increases eligibility for Medicaid recipients, yet state budgets are severely strained with their current underfunded medical obligations. Moreover, doctors struggle to provide health-care access to Medicaid patients when reimbursed below the overhead costs of delivering care.

Who Should Pay?

The perception among consumers of third-party responsibility for health, including payment for health-care resource consumption, is the major factor for unsustainable escalation of medical spending in the United States. Yet the Patient Protection Act augments third-party authority and threatens doctor-patient relationship autonomy, by increasing responsibility of government and employers for health care. Patients and physicians will face increasing involvement of third parties in decision making in exam rooms and at the bedside. (more…)

Last Thursday at Rome’s (but technically part of Vatican City) Pontifical Lateran University, Istituto Acton held a day-long conference on “Ethics, Aging and the Coming Healthcare Challenge.”

It was a successful event, if a bit unusual compared to some of our other Roman gatherings. It’s not often that an Acton conference is so focused on the finality of death, after all; we often stick to the other “inevitability” of life, i.e. taxes. Yet in both spiritual and economic terms, there’s no sense in denying it.

The conference covered many different aspects of the changing demographics affecting health care, ranging from declining fertility rates to pharmaceutical research to pensions to hospice care. One of the main objectives of the conference was to help participants understand how both ethics and economics can work together to help us confront the challenge of aging populations.

The conference was co-sponsored by the Pontifical Council for the Family, the John Paul II Institute for the Study of Marriage and Family, the Centro di Orientamento Politicio, Associazione Famiglia Domani, Human Life International, and Health Care Italia. As you can tell from the nature of these organizations, we sought to place health care issues in the context of the family, following Catholic social teaching’s emphases on this fundamental institution and the principle of subsidiarity.

Here are audio clips from three of our speakers who appeared on Vatican Radio’s English World News service:

Bishop Jean Laffitte, secretary of the Pontifical Council for the Family, click here

Dr. Daniel Sulmasy of the University of Chicago, click here

Dr. Michael Hodin, executive director of the Global Coalition on Aging, click here

For the first time, we live-streamed a conference on the Acton website, and we’ll soon post the conference papers and presentations as well as related media on the Istituto Acton webpage.

Blog author: jcouretas
posted by on Wednesday, November 24, 2010

Kevin J. Jones of the Catholic News Agency interviewed Acton’s Rev. Robert A. Sirico and Dr. Steven Schneck, Director of the Institute for Policy Research & Catholic Studies at the Catholic University of America, to find out how the Tea Party lines up with Catholic Social Teaching. Here’s a snip:

Fr. Sirico described the Tea Party as “an amorphous thing” with a lot of variety and as a “populist, spontaneous movement.” He thought its common themes include a desire for less government and a desire “to limit the power that politicians have over peoples’ lives.”

Participants find motivation in a variety of philosophies. Some have “well-developed Catholic sensibilities” while others’ sensibilities are “almost anarchistic.” He thought it was “remarkable” that the Tea Party could bring so many non-political people into the political process. The Church’s teaching on subsidiarity can meet these people and “augment what they’re doing,” he said, while also guarding against “the more fanatical edges of the tea party.”

Fr. Sirico explained subsidiarity as being the principle that higher levels of society should not intervene in lower levels without “manifest and real necessity,” and such intervention should only be temporary. “Needs are best met at the local level,” he said, calling government “the resource of last resort.”

Read the entire article at “Catholic thinkers examine Tea Party movement and Church teaching” on Catholic Online.

Published today in Acton News & Commentary. Sign up for the free weekly email newsletter from the Acton Institute here.

Juan Williams’ Firing Might Produce Desired Results

By Bruce Edward Walker

It was a tough few days last week in Radio Wobegone. And it promises to get tougher in the days, weeks and months ahead. The base of operations for Prairie Home Companion and Car Talk is in serious hot water.

National Public Radio dismissed newsman Juan Williams for an on-air discussion he conducted with Fox News host Bill O’Reilly in which Williams confessed discomfort when observing fellow airline passengers dressed in Muslim garb. Although the conversation occurred on another network, NPR’s reaction was swift: Williams was fired, and a hailstorm ensued.

Imagine if HBO’s Bill Maher had made a similar confession: That, as an atheist, he was disturbed to see Lake Wobegone’s Pastor Inkfist boarding a plane, wearing Lutheran clerical garb. Oh, wait, Maher takes potshots at clergy, church and religion, in general, whenever his lips are moving. True, the ABC Network fired Maher shortly after 9/11 – but his remarks were far more egregiously offensive than Williams’.

Perhaps an unfair analogy, since Maher is ostensibly a comic and Williams a newsman, but it does present a comparative basis on how thin-skinned and politically correct the suits at NPR have become. When it serves their purposes, that is.

You see, I don’t believe Williams’ comments caused his firing. His words only granted cover for his firing, a move long-desired by NPR’s leadership in light of Williams’ too-often straying from the leftwing party line. Whatever the reason, it is NPR’s method that is especially deplorable. One would be more inclined to understand the executives’ decision if only they would have considered their actions in relation to the dignity that their employees deserve. Pope Leo XIII, writing in his 1891 encyclical Rerum Novarum, provided a perfect vaccine against NPR’s current public relations debacle.

Leo wrote: “Should it happen that either a master or a workman believes himself injured, nothing would be more desirable than that a committee should be appointed, composed of reliable and capable members of the association, whose duty would be, conformably with the rules of the association, to settle the dispute.” In other words, Leo called for employers to demonstrate a basic level of respect for the people who comprise their company. Dismissing Williams out-of-hand without following such simple advice has left NPR open for legitimate negative criticism.

It has also raised the issue of cutting government subsidies for the entire Corporation for Public Broadcasting enterprise. And it’s about time. Although relatively miniscule compared to other government-financed boondoggles, NPR should be allowed to sink or swim based on its own merits in the marketplace. Massive public fundraisers as well as corporate donations and sponsors foot the majority of NPR’s bills already. Liberal fat cat George Soros recently bequeathed $1.8 million of his personal fortune to NPR for the hiring of state-based reporters.

Indeed, NPR’s existence as a government-funded entity is an affront not only to secular free-market principles, but to Judeo-Christian views on subsidiarity as well. Succinctly stated, providing public monies to a direct competitor of private industry is morally wrong.

Williams, fortunately, was able to land on his feet. Fox News Network hired the revered analyst in the wake of his firing. NPR, however, may not be so lucky.

NPR’s hubris may yet be its undoing as a freeloader on the public dole. We can only hope.

Blog author: jcouretas
posted by on Tuesday, October 19, 2010

A new Detroit News column by Acton Institute President and co-founder Rev. Robert A. Sirico:

Tea party must define ideas

By Father Robert Sirico

If the recent analysis by the New York Times on the success of the tea party movement is correct, the influence of this movement favoring limited government and low levels of taxation may have a decided impact in the upcoming elections, particularly in holding the Republican leadership’s feet to the fire on a variety of related issues.

The influence and more especially the authenticity of the tea party movement also is being debated in religious circles where some writers have expressed a skepticism as to how the evident religious sentiments expressed by many (but not all) tea party activists can be compatible with the undeniable Christian obligation to tend to the needs of “the least of these my brethren.”

Stephen Schneck, director of the Institute for Policy Research and Catholic Studies at The Catholic University of America, said in critique of the tea party approach, “Much as we might like otherwise, the Catholic argument is that government and citizen are equally expected to be our brother’s keeper.”

One of the leaders of the evangelical left, Jim Wallis, renders what I think is a wholly inaccurate image of tea party folks when he says, “When government regulation is the enemy, the market is set free to pursue its own self-interest without regard for public safety, the common good, and the protection of the environment — which Christians regard as God’s creation. Libertarians seem to believe in the myth of the sinless market and that the self-interest of business owners or corporations will serve the interests of society; and if they don’t, it’s not government’s role to correct it.”

From my conversations with numerous supporters of the tea party movement from around the country, these comments fail to grasp the essential point of what this movement is about, and why religious people are attracted to it.

I have no doubt there are people on the fringes of the tea party movement who hate government. Most of these, however, I would suggest hate government the way most of us “hate” the dentist — that is, we are not in favor of abolishing dentistry; we just want to make sure it hurts as little as possible and does not do permanent damage.

It is not that tea party folk believe in “the myth of the sinless market.”

It is that they, and most believers, indeed most Americans, believe that politicians and bureaucrats are not immaculately conceived and require limits to their interventions.

And so we come to what may be the real deficiency of this popular movement — it has yet to define a set of clear principles that permit it to consistently outline its view of society and the proper role of the state.

Such a set of principles exists within both the Roman Catholic and Reformed Protestant traditions and are known respectively as subsidiarity and sphere sovereignty. Each term in different yet complementary ways states that needs are best met at the most local level of their existence and that higher orders of social organization (that is, mediating institutions and the public sector) may only temporarily intervene into lower spheres of social organization in moments of great crisis. This intervention by higher authorities should happen to assist, not replace, local relationships.

In his monumental encyclical “The Hundredth Year” Pope John Paul II outlined the principle of subsidiarity and demonstrated an understanding of the reaction that can occur in the social sphere when the limits of the state are not clearly maintained. Although written almost a decade ago, his cautions and observations could have been penned today:

By intervening directly and depriving society of its responsibility, the Social Assistance State leads to a loss of human energies and an inordinate increase of public agencies, which are dominated more by bureaucratic ways of thinking than by concern for serving their clients, and which are accompanied by an enormous increase in spending. In fact, it would appear that needs are best understood and satisfied by people who are closest to them and who act as neighbors to those in need. It should be added that certain kinds of demands often call for a response which is not simply material but which is capable of perceiving the deeper human need. One thinks of the condition of refugees, immigrants, the elderly, the sick, and all those in circumstances which call for assistance, such as drug abusers: all these people can be helped effectively only by those who offer them genuine fraternal support, in addition to the necessary care.

Blog author: jcouretas
posted by on Wednesday, October 13, 2010

A good give-and-take on the tea party movement on Our Sunday Visitor. Rev. Robert A. Sirico, president and co-founder of the Acton Institute, weighs in:

Many of the stances tea party activists have taken on political issues also would resonate with Catholic voters, Father Sirico said. For example, many practicing Catholics would likely agree with the tea party’s concern about the overreaching involvement of government in schools and health care, he said, and though the movement has hesitated to identify itself as pro-life, the majority of tea party activists appear to be in agreement with the Church’s stance on abortion.

But while he doesn’t feel that there is a conflict for Catholics to join the tea party, Father Sirico said, he does think tea party advocates could benefit from a greater understanding of Catholic teaching.

“The thing Catholics could teach the tea party is that not every social obligation needs to be viewed with suspicion,” he said. “We recognize that human nature is social as well as individual, and we balance these things out. To say I have an obligation to the poor is [to say] society has an obligation to the poor.”

Read “Is the tea party movement in sync with Catholic teaching?” on the website of Our Sunday Visitor.

Blog author: jcouretas
posted by on Tuesday, August 17, 2010

In an audio commentary produced for Ave Maria Radio and Catholic Exchange, Paul Kengor says it is “incumbent among Catholics to learn more about this blessed concept of subsidiarity.” As part of this education, he recommends “The Principle of Subsidiarity” by David A. Bosnich in Acton’s Religion & Liberty quarterly.

Here’s some of what Kengor, a professor of political science and executive director of the Center for Vision & Values at Grove City College, had to say:

I’m convinced, from study after study, and years of observing public policy, from the New Deal to the Great Society, that addressing poverty in the narrow federal, collectivist way preached by modern progressives—in the language of “social justice”—is counter-productive, fostering rather than lessening dependency.

In fact, the long experience of economies shows that those titled toward collectivism—to a single central government—become so unproductive and lacking in prosperity that they can’t produce the very wealth that progressives want to redistribute in the first place. That’s the self-defeating danger that social-justice engineers face as they shift private charity to a federal collective.

Listen to Kengor’s audio commentary, “Subsidiarity Over Social Justice,” and access the transcript, at Catholic Exchange.