Global Economic Justice – Is It Possible?
Jim Vogt 10/24/08

I had the opportunity last week to attend a workshop on Global Economics in New York City sponsored by the Partnership for Global Justice Program.  I was joined by fellow Marianists Fr. Ted Cassidy, Bro. Steve O’Neil and novice Ray Dominguez.  Coming as it did in the midst of the economic crisis facing our nation and world, it was a particularly timely gathering.  Since I personally have always been somewhat mystified by economics in general, it was a great opportunity to get some economics basics (part of the workshop was entitled “Economics 101”!), plus a justice perspective on what’s happening in our global economic system.

Current Economic Crisis

First, here are a few comments on the current economic crisis.  Both economists who presented during the workshop agreed that the bailout or rescue of the banks was crucial.  One of the things we learned from the Great Depression is that it is economic suicide to let banks fail.  The availability of credit is critical in our economic system.  The ripple affect of bank failure and lack of credit is devastating to an economy.  The roots of the crisis are many, including:

There was agreement that we are moving into a recession involving “six months of pain and two years of serious economic adjustment.” 

The more important issue is what we do about the economic crisis in the coming months.  The important things to be worked out include:
* The need for greater transparency in the banking and lending system;
* Shaping effective regulations for the new kinds of financial entities that have sprung up;
* Another economic stimulus, but this one aimed at the people nearer the bottom of the economic ladder, that might include an increase in food stamps and the Earned Income Tax Credit, direct assistance for those who are losing their homes, etc.;
* Reauthorization of the Community Reinvestment Act;
* Expansion of bankruptcy laws dealing with foreclosures;
* Finding ways to put people back to work.
These are the kinds of issues we should be involved with as we advocate for a fairer, more humane economic system.

We also have to remember that good things can come out of this crisis.  For example, it was the Great Depression that led to passage of the Social Security Act which has basically eliminated poverty among the elderly.

The Bigger Picture

But the workshop also covered a much broader swath in looking at economic justice issues. Economics is basically the organized way we use our resources to provide for the needs and wants of our people.  For a capitalist economic system to work well, it should be both efficient and equitable.  Our focus has been much more on efficiency.  Within a market economy, there will always be inequality, but we do not need to have injustice (an inequitable distribution of resources). 

In many respects, the degree of inequality in our system is immoral:
* 1.2 billion people live on $1 or less per day (a $50 billion investment was the figure mentioned as what was needed to eliminate such absolute poverty);
* 20% of the world’s population controls 85% of the resources.

Social justice calls us to change this reality.  I particularly liked the definition of social justice quoted from Peter Henriot: “Loving persons so much that I work to challenge any structures that violate their dignity.”
 
For us as Christians and as participants in the economic system, we are called to engage our culture with critical eyes and to bring an alternative consciousness based on (from the writings of John Paul II):
* The needs of the poor have priority over the desires of the rich.
* The rights of workers have priority over the maximization of profit.
* The preservation of the environment has priority over uncontrolled industrial expansion.
* The production of goods for social needs has priority over the production of goods for military purposes.

The Reality of Globalization

A globalized world means an increasingly interdependent world.  We are now called to a solidarity with everyone else on the planet.
* We are linked by transportation and almost instantaneous communication.
* Everyone is potentially affected by global warming, global pandemics, terrorism.
* Poverty hurts all of us.
* Pollution is caused both by poverty and overconsumption.

Economic globalization is a mixed blessing.  Major power shifts include:
* Corporations focus more on their stock prices, which often means that productivity increases without a proportionate increase in jobs created.
* Labor rights and standards are more easily ignored and workers have less power to influence outcomes.  This is manifest in:
o NAFTA, which has very little in the way of worker protection;
o Downsizing of corporations to be competitive;
o Sweatshops;
o Anti-union activity and growth of union-busting firms;
o Higher unemployment;
o Outsourcing of jobs.
* Governments withdraw from
o Social welfare functions – no safety nets
o Regulatory functions – little protection for workers or consumers
o Taxing functions – inadequate revenue for social needs or infrastructure
* Finance capital (speculative money) gains power as it can change locations rapidly in search of greatest profits (moving money around).

Our challenge, as articulated by Camus, is to make economic justice imaginable again.

The International Forum on Globalization has identified ten principles for creating a sustainable world.  They are:
1. New Democracy, which is a much more participative democracy in which people organize to protect their communities and rights and hold their elected officials accountable.
2. Subsidiarity – whatever decisions and activities can be undertaken locally should be.
3. Ecological Sustainability – meet the genuine needs of people today without compromising the ability of future generations to meet their needs and without diminishing the natural diversity of life on earth or the viability of natural environmental systems.
4. Common Heritage - there is a collective birthright of the whole human species to be shared equitably among all.
5. Diversity – includes cultural, economic and biological diversity.
6. Human Rights, based on the UN Universal Declaration of Human Rights.
7. Jobs, Livelihood, Employment – protect the rights of workers in both the formal and informal economic sectors as well as those who have no work or are underemployed.
8. Food Security and Safety, assuring that all people have access to enough food and safe food.
9. Equity – in most economic systems you have inequality, but you should not have inequity.  Everyone must be guaranteed the basic things needed for human dignity. In particular, this means reducing the gap between the rich and the poor.
10. The Precautionary Principle – When a practice or product raises potentially significant threats of harm to human health or the environment, precautionary action should be taken to restrict or ban it, even if there is scientific uncertainty about whether or how it is actually causing that harm.

Social change depends on many people engaging in various kinds of efforts.  No one person’s actions, however significant, are sufficient.  We need to act in community (sounds a bit Marianist, doesn’t it?) if we are to be successful.  We need a new intentionality about creating a new world.  Some of the different kinds of actions we need:
* Study and teach about issues to raise awareness.  Keep up on current events.  Read the alternative press.
* Build counter-cultural value systems wherever we are.  Focus more on enough-ness, nonviolence, care of the earth, people are more important than things, etc.
* Choose lifestyles congruent with equity and building a new, sustainable world.
* Work to create alternative structures – Fair Trade efforts are one example.
* Work to transform institutions we are part of from within.
* Participate in organized change actions with groups like NETWORK, Pax Christi, Jubilee USA.
* Oppose all that goes in the wrong direction – vote your values, for example.
* Live out of a “kindom-centered” spirituality.
In other words, no one, regardless of your situation in life, is off the hook.  Everyone can do something.

It’s critical that in all of these efforts we find ways to reach out to people who may not see things the same way as us, who might have a different vision, and engage them rather than demonize them.  Telling stories can really help with this.

In short we have to
 Keep Hope Alive
  Collaborate
   Develop a long term vision

Key Issues

If we want to make a difference in moving toward greater global economic justice, the following are critical issues to address.
1. Trade – Make it fairer.  We have to make the playing field more even.  Promoting Fair Trade is one approach.  We also have to learn more about and be involved in eliminating agricultural subsidies to rich farmers.
2. Aid – The developed nations pledged to give .7% of their GDP to developing countries as aid.  Currently the US gives .16%.  This needs to change.
3. Debt – we need to advocate for the Jubilee Act and continuing debt forgiveness for developing countries.
4. Military spending and the arms trade, especially nuclear arms – 41% of all our Federal tax dollars goes to the military.  This has to change.

Some Final Questions

Several questions that we were left with that are worth all of us pondering:
* What is our role in the world?
* What does our generation owe to the next?
* What do we have’s owe to the have-not’s?
* What of our individual freedom are we willing to give up for the common good?