Catholic development agencies react to Holy See calls for reform of global finance ahead of G20
(Brussels, 26 October 2011) On Monday (24 October), ahead of the G20 summit in Cannes (France) next week, the Pontifical Council for Justice and Peace called for the reform of the global financial system. In a paper entitled “Towards reforming the international financial and monetary systems in the context of a global public authority”, the Vatican supports among others the idea of Financial Transaction Tax (FTT). The Vatican says that such a tax, which CIDSE is strongly advocating for, could be useful in ‘promoting global development and sustainability according to the principles of social justice and solidarity.’
CIDSE has long argued that the FTT is an opportunity for the financial sector to repay the global community for all the benefits it has accrued in all these years of globalisation.
CIDSE Secretary General Bernd Nilles said: “Finance, after all, is an instrument directed towards wealth creation that should finally benefit society as a whole. A Financial Transaction Tax is an excellent tool to meet this objective and counter the kind of casino capitalism that marks our world today. As CIDSE we share the Pontifical Council Justice and Peace emphasis on the need to ‘abandon all forms of petty selfishness and embrace the logic of the global common good,’ and to recognise ‘the primacy of being over having and of ethics over the economy’.”
Responding to the paper, CIDSE’s US member Center of Concern said that the document contained an indictment of the economic liberalism that ‘spurns rules and controls’ and the utilitarian thinking as the cause of the problematic development in the economy and inequality and distortions. It noted that the document’s call for commitment for some form of global monetary management should be a wake-up call for the G20.
Aldo Caliari, who directs the Center of Concern’s Rethinking Bretton Woods Project, said: “Unfortunately, the type of reform required for a monetary system that avoids recessionary adjustments and helps countries draw benefits from trade seems already not in the cards for this G20 Summit.”
CAFOD, CIDSE’s member from England and Wales also noted the document’s clear call to world leaders for greater vision, greater collaboration and real reforms if the world is to emerge stronger, better and wiser from the global economic crisis.
CAFOD’s economist Christina Weller said: “As the Vatican’s thinking suggests, one of the underlying problems is the G20 itself – a self-appointed forum that lacks the legitimacy, the vision and the democratic drivers to deliver a better world economy. A forum that includes the interests of all countries and all stakeholders is overdue – ideas for a Global Economic Cooperation Council were mooted at the start of the crisis three years ago.
World leaders at Cannes and beyond need to cooperate on a global scale to tackle global problems – for example plugging the billion dollar leaks from tax evasion by multinational companies. They need to be prepared to actively intervene in markets to achieve greater objectives of food security, environmental sustainability, and economies where even the poorest can contribute and benefit.
Finally, they need to be able to listen to a broad range of interests, not just allow access to economic interests and industry groups in these critical discussions that affect us all.”
Contact:
Roeland Scholtalbers, Media & Communication Officer, scholtalbers@cidse.org, +32(0) 2 282 40 73, +32(0)477068384