Cardinal Turkson mentioned the sixth summit meeting of heads of government of the G-20 nations, due to take place in Cannes, France, on 3 and 4 November to discuss issues related to finance and the global economy. “The Holy Father and the Holy See”, he said, “are following these matters with particular concern, constantly calling not just for ‘joint action’, but for ‘examination of every facet of the problem: social, economic, cultural and spiritual’. It is in this spirit of discernment that the Holy See, with the note of the Pontifical Council for Justice and Peace, wishes to make a contribution which might be useful to the deliberations of the G-20 meeting”.

Bishop Toso explained that the aim of the note is “suggest possible paths to follow, in line with the most recent social Magisterium, for the implementation of financial and monetary policies … that are effective and representative at a global level, and which seek the authentic human development of all individuals and peoples”.

The Church does not wish to enter into the technical issues behind the current economic crisis, but remains within the ambit of her religious and ethical functions. Thus she highlights not just the moral causes of the crisis but more specifically, the ideological causes. Old ideologies have been replaced by new ones, “neo-liberalist, neo-utilitarian, and technocratic which, by reducing the common good to economic, financial and technical questions, place the future of democratic institutions themselves at risk”.

Bishop Toso spoke of the need to overcome these ideologies by “a new global humanism, open to transcendence, … an ethic of brotherhood and solidarity, and by subordinating economy and finance to politics, which is responsible for the common good”.

The Pontifical Council for Justice and Peace, drawing from the social Magisterium of recent Pontiffs particularly John XXIII and Benedict XVI, proposes “that globalisation be regulated by a global public authority”, Bishop Toso explained. The council also suggests the reform of current international institutions. They “must become an expression of free and shared agreement among peoples; more representative, and with greater levels of participation and legitimacy. … They must be ‘super partes’, at the service of the universal good, capable of offering effective guidance and, at the same time, of allowing each country to express and pursue its own common good, according to the principle of subsidiarity and in the context of the global common good. Only in this way will international institutions manage to favour effective monetary and financial systems; in other words, free and stable markets regulated by an appropriate legal framework and working towards sustainable development and social progress for everyone”.

This global authority “must see its power to lead and to deicide – and to impose penalties on the basis of the law – as a form of service to the various members States, a way of ensuring that they possess efficient markets”.

To this end, Bishop Toso concluded, “it is necessary to restore the primacy of ethics and, therewith, the primacy of politics, which is responsible for the common good”.

Edmund Rice International has joined a group of like-minded organisations in campaigning to demand tax justice at the G20 summit in France in November 2011.

You can add your voice by visiting the campaign website and joining the call to end tax haven secrecy.

According to Global Financial Integrity (GFI) a US based think-tank, developing countries are currently losing ten times the amount of money they receive in aid each year through activities such as bribery, theft, drug trading, tax evasion and mispricing of exports and imports.

Most of the misappropriated money finds its way into western economies.

This massive transfer of wealth out of poorer nations is the most damaging economic condition undermining poverty alleviation and sustainable growth efforts in these countries, which are home to 80 percent of the world’s population.

The enormous transfers of financial resources have been facilitated for decades by a shadow financial system that has expanded globally since the beginning of the 1960s.

Edmund Rice International has accepted an invitation to join a global coalition of organizations lending their names in support of the work of Task Force on Financial Integrity and Economic Development a consortium of governments and research and advocacy organizations, founded by GFI to push for improved transparency and accountability in the global financial system.

Transparency rather than regulation is seen as the key to addressing the re-building of a fair global economic system.

The following article was taken from ‘Ekklesia’

An initiative involving Christian charities and others was launched last night in Westminster to highlight the situation of street children.

The Street Child World Cup aims to bring teams of street children from around the world to take part in a football competition to coincide with the FIFA World Cup which will be held in South Africa in 2010.

Campaigners, including the Amos Trust who organised last nights event, say that the World Cup should be a celebration for the whole country, but especially for street children, the “world’s biggest football fans”.

Whilst many children on the streets are abused and ignored, football allows them moments to escape where can they play with “complete commitment” say the charities.

The aim of the initiative which will take place in Durban in March 2010, is to give a voice to street children and highlight their situation for policy makers.

Street childen from eight countries will come together, supported by some of the world’s leading street child charities.

The teams will work with international coaches and [also] with specially trained artists who will help the street children to tell their stories.

It is hoped that decision-makers will hear about the issues which matter to street children and will be challenged to make changes so that children around the world who are forced onto the streets get a chance at a future which is “healthy, dignified and safe.”

Attended by celebrities and footballers, the launch event at the Cinnamon Club in London was addressed by, amongst others, former England striker and presenter of BBC’s Match of the Day, Gary Lineker.

Gary Lineker told Ekklesia: “For the children it is of great value that they can play a sport which teaches them so many things. But bringing them together to play football in this way also means that their situation will be brought to public attention.”

“Football is a rich game” he continued, “and it is important that it gives to those who need it most. And the great thing is that the children wll get out there and enjoy it and have a great time too.”

• Aid agency representatives
• October 24, 2008

Aid and financial crisis. Photo: Dyson

Governments are spending billions to save stricken companies. From another quarter comes a plea for them to offer as much in aid for struggling nations.

EARLIER this month, the US Government gave another bail-out of $US37.8 billion ($A56.2 billion) to giant insurance company AIG, bringing the total of rescue loans to that company in the past two weeks to nearly $123 billion. This is $18 billion more than the annual aid to poor countries and twice that needed to achieve the internationally agreed Millennium Development Goals.

In Europe the bail-outs continue. The British Government has thrown in a further £50 billion ($A121.9 billion) to recapitalise the British banking sector – roughly what’s needed for poor countries to adapt to climate change each year.

The urgency shown by rich countries to tackle the financial meltdown is in stark contrast to their foot dragging and broken promises over aid and poverty alleviation, human rights and climate change.

It is too soon to predict exactly how badly the poorest countries will fare in the financial crisis and resultant economic downturn. But it is clear that reduced demands for exports to developed countries and lower foreign investment will mean less growth and government revenue for already fragile social protection and services.

For millions of the world’s poorest citizens, it is literally a matter of life and death. Too few developing countries have adequate safety nets and the very poor have few coping mechanisms. Late last month, while Wall Street was reeling from its financial failures in the glare of publicity, a meeting organised by the United Nations in another part of Manhattan revealed that few governments will meet the targets set by the Millennium Development Goals to reduce poverty by 2015, and that rising food and energy prices have wiped away much of the progress made so far.

The human rights prognosis is not good. Not only are economic and social rights – including the right to housing, health and education – under increased pressure, there is a risk of more human rights violations. As economies shrink and countries tighten their belts, migrants and refugees could be pushed back to untenable situations. Social tensions could increase, leading nervous governments to clamp down on dissent and impose tough public security policies, curbing civil liberties.

Already fragile states could be further weakened by the crisis and slide back into instability and violence. Worse could follow if rich countries decide to use the crisis as an excuse to cut aid and trade. During the 1972-73 recession, global aid spending fell by 15% to just $US28.8 billion. In 1990-93, donors slashed their spending by 25% over five years to $US46 billion, and aid did not return to 1992 levels until 2003. Humanitarian aid – what we spend to help people hit by natural disasters and conflict – also fell sharply and over a similar time as a direct result of the 1990-93 recession (only the years of the Rwanda and Kosovo conflicts bucked that trend). In terms of trade, for instance, countries reacted to the 1929 Wall Street crash and global depression by erecting tariff barriers and world trade fell by two-thirds.

A replay of that in 2009 would be a disaster for poor exporting countries. Reduced aid and trade could mean that the people in the poorest countries pay the highest price for the profligacy of the credit bubble in North America and Europe.

Human rights are not a luxury for good times. Inaction in the face of climate change is not a viable option. Global poverty does nothing for global stability. Rich countries will be following a myopic and self-defeating strategy if they ignore the most pressing challenges of our times and focus solely on narrow financial interests.

This is not just about money. It is about sustained attention, international collaboration and clear political will to tackle big issues. The signs of concerted action by the G7 finance ministers and the Euro-zone finance ministers on the crisis are welcome, but they are not enough.

Governments must reduce volatility in energy and food prices and the financial markets by ensuring sensible regulation, adequate protection for the rights of poor and vulnerable people, and long-term environmental sustainability.

Governments must show decisive leadership to build a global economy that is green and where better lives and livelihoods for all is more important than a system that rewards a privileged few.

This article was written by Andrew Hewett, executive director, Oxfam Australia; Tim Costello, chief executive, World Vision Australia; Claire Mallinson, national director, Amnesty International Australia; Dr Julia Newton-Howes, chief executive, CARE Australia; Ian Wishart, national executive director, PLAN Australia; and Steve Shallhorn, chief executive, Greenpeace Australia-Pacific.

Article taken from the Melbourne ‘Age’ newspaper Oct 2008