Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 47

CONCLUSION

78. Without God man neither knows which way to go, nor even understands who he is. In the face of the enormous problems surrounding the development of peoples, which almost make us yield to discouragement, we find solace in the sayings of our Lord Jesus Christ, who teaches us: “Apart from me you can do nothing” (Jn 15:5) and then encourages us: “I am with you always, to the close of the age” (Mt 28:20). As we contemplate the vast amount of work to be done, we are sustained by our faith that God is present alongside those who come together in his name to work for justice. Paul VI recalled in Populorum Progressio that man cannot bring about his own progress unaided, because by himself he cannot establish an authentic humanism.

Only if we are aware of our calling, as individuals and as a community, to be part of God's family as his sons and daughters, will we be able to generate a new vision and muster new energy in the service of a truly integral humanism. The greatest service to development, then, is a Christian humanism[157] that enkindles charity and takes its lead from truth, accepting both as a lasting gift from God. Openness to God makes us open towards our brothers and sisters and towards an understanding of life as a joyful task to be accomplished in a spirit of solidarity. On the other hand, ideological rejection of God and an atheism of indifference, oblivious to the Creator and at risk of becoming equally oblivious to human values, constitute some of the chief obstacles to development today. A humanism which excludes God is an inhuman humanism.

Only a humanism open to the Absolute can guide us in the promotion and building of forms of social and civic life — structures, institutions, culture and ethos — without exposing us to the risk of becoming ensnared by the fashions of the moment. Awareness of God's undying love sustains us in our laborious and stimulating work for justice and the development of peoples, amid successes and failures, in the ceaseless pursuit of a just ordering of human affairs. God's love calls us to move beyond the limited and the ephemeral, it gives us the courage to continue seeking and working for the benefit of all, even if this cannot be achieved immediately and if what we are able to achieve, alongside political authorities and those working in the field of economics, is always less than we might wish[158]. God gives us the strength to fight and to suffer for love of the common good, because he is our All, our greatest hope.

79. Development needs Christians with their arms raised towards God in prayer, Christians moved by the knowledge that truth-filled love, caritas in veritate, from which authentic development proceeds, is not produced by us, but given to us. For this reason, even in the most difficult and complex times, besides recognizing what is happening, we must above all else turn to God's love. Development requires attention to the spiritual life, a serious consideration of the experiences of trust in God, spiritual fellowship in Christ, reliance upon God's providence and mercy, love and forgiveness, self-denial, acceptance of others, justice and peace. All this is essential if “hearts of stone” are to be transformed into “hearts of flesh” (Ezek 36:26), rendering life on earth “divine” and thus more worthy of humanity.

All this is of man, because man is the subject of his own existence; and at the same time it is of God, because God is at the beginning and end of all that is good, all that leads to salvation: “the world or life or death or the present or the future, all are yours; and you are Christ's; and Christ is God's” (1 Cor 3:22-23). Christians long for the entire human family to call upon God as “Our Father!” In union with the only-begotten Son, may all people learn to pray to the Father and to ask him, in the words that Jesus himself taught us, for the grace to glorify him by living according to his will, to receive the daily bread that we need, to be understanding and generous towards our debtors, not to be tempted beyond our limits, and to be delivered from evil (cf. Mt 6:9-13).

At the conclusion of the Pauline Year, I gladly express this hope in the Apostle's own words, taken from the Letter to the Romans: “Let love be genuine; hate what is evil, hold fast to what is good; love one another with brotherly affection; outdo one another in showing honour” (Rom 12:9-10). May the Virgin Mary — proclaimed Mater Ecclesiae by Paul VI and honoured by Christians as Speculum Iustitiae and Regina Pacis — protect us and obtain for us, through her heavenly intercession, the strength, hope and joy necessary to continue to dedicate ourselves with generosity to the task of bringing about the “development of the whole man and of all men”[159].

Given in Rome, at Saint Peter's, on 29 June, the Solemnity of the Holy Apostles Peter and Paul, in the year 2009, the fifth of my Pontificate.

BENEDICTUS PP. XVI

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 46

76. One aspect of the contemporary technological mindset is the tendency to consider the problems and emotions of the interior life from a purely psychological point of view, even to the point of neurological reductionism. In this way man's interiority is emptied of its meaning and gradually our awareness of the human soul's ontological depths, as probed by the saints, is lost. The question of development is closely bound up with our understanding of the human soul, insofar as we often reduce the self to the psyche and confuse the soul's health with emotional well-being. These over-simplifications stem from a profound failure to understand the spiritual life, and they obscure the fact that the development of individuals and peoples depends partly on the resolution of problems of a spiritual nature.

Development must include not just material growth but also spiritual growth, since the human person is a “unity of body and soul”[156], born of God's creative love and destined for eternal life. The human being develops when he grows in the spirit, when his soul comes to know itself and the truths that God has implanted deep within, when he enters into dialogue with himself and his Creator. When he is far away from God, man is unsettled and ill at ease. Social and psychological alienation and the many neuroses that afflict affluent societies are attributable in part to spiritual factors.

A prosperous society, highly developed in material terms but weighing heavily on the soul, is not of itself conducive to authentic development. The new forms of slavery to drugs and the lack of hope into which so many people fall can be explained not only in sociological and psychological terms but also in essentially spiritual terms. The emptiness in which the soul feels abandoned, despite the availability of countless therapies for body and psyche, leads to suffering. There cannot be holistic development and universal common good unless people's spiritual and moral welfare is taken into account, considered in their totality as body and soul.


77. The supremacy of technology tends to prevent people from recognizing anything that cannot be explained in terms of matter alone. Yet everyone experiences the many immaterial and spiritual dimensions of life. Knowing is not simply a material act, since the object that is known always conceals something beyond the empirical datum. All our knowledge, even the most simple, is always a minor miracle, since it can never be fully explained by the material instruments that we apply to it. In every truth there is something more than we would have expected, in the love that we receive there is always an element that surprises us.

We should never cease to marvel at these things. In all knowledge and in every act of love the human soul experiences something “over and above”, which seems very much like a gift that we receive, or a height to which we are raised. The development of individuals and peoples is likewise located on a height, if we consider the spiritual dimension that must be present if such development is to be authentic. It requires new eyes and a new heart, capable of rising above a materialistic vision of human events, capable of glimpsing in development the “beyond” that technology cannot give. By following this path, it is possible to pursue the integral human development that takes its direction from the driving force of charity in truth.

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 41

66. Global interconnectedness has led to the emergence of a new political power, that of consumers and their associations. This is a phenomenon that needs to be further explored, as it contains positive elements to be encouraged as well as excesses to be avoided. It is good for people to realize that purchasing is always a moral — and not simply economic — act. Hence the consumer has a specific social responsibility, which goes hand-in- hand with the social responsibility of the enterprise.

Consumers should be continually educated[145] regarding their daily role, which can be exercised with respect for moral principles without diminishing the intrinsic economic rationality of the act of purchasing. In the retail industry, particularly at times like the present when purchasing power has diminished and people must live more frugally, it is necessary to explore other paths: for example, forms of cooperative purchasing like the consumer cooperatives that have been in operation since the nineteenth century, partly through the initiative of Catholics. In addition, it can be helpful to promote new ways of marketing products from deprived areas of the world, so as to guarantee their producers a decent return. However, certain conditions need to be met: the market should be genuinely transparent; the producers, as well as increasing their profit margins, should also receive improved formation in professional skills and technology; and finally, trade of this kind must not become hostage to partisan ideologies. A more incisive role for consumers, as long as they themselves are not manipulated by associations that do not truly represent them, is a desirable element for building economic democracy.


67. In the face of the unrelenting growth of global interdependence, there is a strongly felt need, even in the midst of a global recession, for a reform of the United Nations Organization, and likewise of economic institutions and international finance, so that the concept of the family of nations can acquire real teeth. One also senses the urgent need to find innovative ways of implementing the principle of the responsibility to protect[146] and of giving poorer nations an effective voice in shared decision-making.

This seems necessary in order to arrive at a political, juridical and economic order which can increase and give direction to international cooperation for the development of all peoples in solidarity. To manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result; to bring about integral and timely disarmament, food security and peace; to guarantee the protection of the environment and to regulate migration: for all this, there is urgent need of a true world political authority, as my predecessor Blessed John XXIII indicated some years ago. Such an authority would need to be regulated by law, to observe consistently the principles of subsidiarity and solidarity, to seek to establish the common good[147], and to make a commitment to securing authentic integral human development inspired by the values of charity in truth.

Furthermore, such an authority would need to be universally recognized and to be vested with the effective power to ensure security for all, regard for justice, and respect for rights[148]. Obviously it would have to have the authority to ensure compliance with its decisions from all parties, and also with the coordinated measures adopted in various international forums. Without this, despite the great progress accomplished in various sectors, international law would risk being conditioned by the balance of power among the strongest nations. The integral development of peoples and international cooperation require the establishment of a greater degree of international ordering, marked by subsidiarity, for the management of globalization[149]. They also require the construction of a social order that at last conforms to the moral order, to the interconnection between moral and social spheres, and to the link between politics and the economic and civil spheres, as envisaged by the Charter of the United Nations.

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 38

60. In the search for solutions to the current economic crisis, development aid for poor countries must be considered a valid means of creating wealth for all. What aid programme is there that can hold out such significant growth prospects — even from the point of view of the world economy — as the support of populations that are still in the initial or early phases of economic development? From this perspective, more economically developed nations should do all they can to allocate larger portions of their gross domestic product to development aid, thus respecting the obligations that the international community has undertaken in this regard.

One way of doing so is by reviewing their internal social assistance and welfare policies, applying the principle of subsidiarity and creating better integrated welfare systems, with the active participation of private individuals and civil society. In this way, it is actually possible to improve social services and welfare programmes, and at the same time to save resources — by eliminating waste and rejecting fraudulent claims — which could then be allocated to international solidarity. A more devolved and organic system of social solidarity, less bureaucratic but no less coordinated, would make it possible to harness much dormant energy, for the benefit of solidarity between peoples.


One possible approach to development aid would be to apply effectively what is known as fiscal subsidiarity, allowing citizens to decide how to allocate a portion of the taxes they pay to the State. Provided it does not degenerate into the promotion of special interests, this can help to stimulate forms of welfare solidarity from below, with obvious benefits in the area of solidarity for development as well.

61. Greater solidarity at the international level is seen especially in the ongoing promotion — even in the midst of economic crisis — of greater access to education, which is at the same time an essential precondition for effective international cooperation. The term “education” refers not only to classroom teaching and vocational training — both of which are important factors in development — but to the complete formation of the person. In this regard, there is a problem that should be highlighted: in order to educate, it is necessary to know the nature of the human person, to know who he or she is. The increasing prominence of a relativistic understanding of that nature presents serious problems for education, especially moral education, jeopardizing its universal extension. Yielding to this kind of relativism makes everyone poorer and has a negative impact on the effectiveness of aid to the most needy populations, who lack not only economic and technical means, but also educational methods and resources to assist people in realizing their full human potential.

An illustration of the significance of this problem is offered by the phenomenon of international tourism[141], which can be a major factor in economic development and cultural growth, but can also become an occasion for exploitation and moral degradation. The current situation offers unique opportunities for the economic aspects of development — that is to say the flow of money and the emergence of a significant amount of local enterprise — to be combined with the cultural aspects, chief among which is education. In many cases this is what happens, but in other cases international tourism has a negative educational impact both for the tourist and the local populace. The latter are often exposed to immoral or even perverted forms of conduct, as in the case of so-called sex tourism, to which many human beings are sacrificed even at a tender age. It is sad to note that this activity often takes place with the support of local governments, with silence from those in the tourists' countries of origin, and with the complicity of many of the tour operators.

Even in less extreme cases, international tourism often follows a consumerist and hedonistic pattern, as a form of escapism planned in a manner typical of the countries of origin, and therefore not conducive to authentic encounter between persons and cultures. We need, therefore, to develop a different type of tourism that has the ability to promote genuine mutual understanding, without taking away from the element of rest and healthy recreation. Tourism of this type needs to increase, partly through closer coordination with the experience gained from international cooperation and enterprise for development.

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 36

56. The Christian religion and other religions can offer their contribution to development only if God has a place in the public realm, specifically in regard to its cultural, social, economic, and particularly its political dimensions. The Church's social doctrine came into being in order to claim “citizenship status” for the Christian religion[135]. Denying the right to profess one's religion in public and the right to bring the truths of faith to bear upon public life has negative consequences for true development. The exclusion of religion from the public square — and, at the other extreme, religious fundamentalism — hinders an encounter between persons and their collaboration for the progress of humanity. Public life is sapped of its motivation and politics takes on a domineering and aggressive character.

Human rights risk being ignored either because they are robbed of their transcendent foundation or because personal freedom is not acknowledged. Secularism and fundamentalism exclude the possibility of fruitful dialogue and effective cooperation between reason and religious faith. Reason always stands in need of being purified by faith: this also holds true for political reason, which must not consider itself omnipotent. For its part, religion always needs to be purified by reason in order to show its authentically human face. Any breach in this dialogue comes only at an enormous price to human development.

57. Fruitful dialogue between faith and reason cannot but render the work of charity more effective within society, and it constitutes the most appropriate framework for promoting fraternal collaboration between believers and non-believers in their shared commitment to working for justice and the peace of the human family. In the Pastoral Constitution Gaudium et Spes, the Council fathers asserted that “believers and unbelievers agree almost unanimously that all things on earth should be ordered towards man as to their centre and summit”[136]. For believers, the world derives neither from blind chance nor from strict necessity, but from God's plan.
 
This is what gives rise to the duty of believers to unite their efforts with those of all men and women of good will, with the followers of other religions and with non-believers, so that this world of ours may effectively correspond to the divine plan: living as a family under the Creator's watchful eye. A particular manifestation of charity and a guiding criterion for fraternal cooperation between believers and non-believers is undoubtedly the principle of subsidiarity[137], an expression of inalienable human freedom. Subsidiarity is first and foremost a form of assistance to the human person via the autonomy of intermediate bodies. Such assistance is offered when individuals or groups are unable to accomplish something on their own, and it is always designed to achieve their emancipation, because it fosters freedom and participation through assumption of responsibility. Subsidiarity respects personal dignity by recognizing in the person a subject who is always capable of giving something to others.
 
By considering reciprocity as the heart of what it is to be a human being, subsidiarity is the most effective antidote against any form of all-encompassing welfare state. It is able to take account both of the manifold articulation of plans — and therefore of the plurality of subjects — as well as the coordination of those plans. Hence the principle of subsidiarity is particularly well-suited to managing globalization and directing it towards authentic human development. In order not to produce a dangerous universal power of a tyrannical nature, the governance of globalization must be marked by subsidiarity, articulated into several layers and involving different levels that can work together. Globalization certainly requires authority, insofar as it poses the problem of a global common good that needs to be pursued. This authority, however, must be organized in a subsidiary and stratified way[138], if it is not to infringe upon freedom and if it is to yield effective results in practice.

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 34

CHAPTER FIVE

THE COOPERATION

OF THE HUMAN FAMILY

53. One of the deepest forms of poverty a person can experience is isolation. If we look closely at other kinds of poverty, including material forms, we see that they are born from isolation, from not being loved or from difficulties in being able to love. Poverty is often produced by a rejection of God's love, by man's basic and tragic tendency to close in on himself, thinking himself to be self-sufficient or merely an insignificant and ephemeral fact, a “stranger” in a random universe. Man is alienated when he is alone, when he is detached from reality, when he stops thinking and believing in a foundation[125]. All of humanity is alienated when too much trust is placed in merely human projects, ideologies and false utopias[126]. Today humanity appears much more interactive than in the past: this shared sense of being close to one another must be transformed into true communion. The development of peoples depends, above all, on a recognition that the human race is a single family working together in true communion, not simply a group of subjects who happen to live side by side[127].

Pope Paul VI noted that “the world is in trouble because of the lack of thinking”[128]. He was making an observation, but also expressing a wish: a new trajectory of thinking is needed in order to arrive at a better understanding of the implications of our being one family; interaction among the peoples of the world calls us to embark upon this new trajectory, so that integration can signify solidarity[129] rather than marginalization. Thinking of this kind requires a deeper critical evaluation of the category of relation. This is a task that cannot be undertaken by the social sciences alone, insofar as the contribution of disciplines such as metaphysics and theology is needed if man's transcendent dignity is to be properly understood.

As a spiritual being, the human creature is defined through interpersonal relations. The more authentically he or she lives these relations, the more his or her own personal identity matures. It is not by isolation that man establishes his worth, but by placing himself in relation with others and with God. Hence these relations take on fundamental importance. The same holds true for peoples as well. A metaphysical understanding of the relations between persons is therefore of great benefit for their development. In this regard, reason finds inspiration and direction in Christian revelation, according to which the human community does not absorb the individual, annihilating his autonomy, as happens in the various forms of totalitarianism, but rather values him all the more because the relation between individual and community is a relation between one totality and another[130]. Just as a family does not submerge the identities of its individual members, just as the Church rejoices in each “new creation” (Gal 6:15; 2 Cor 5:17) incorporated by Baptism into her living Body, so too the unity of the human family does not submerge the identities of individuals, peoples and cultures, but makes them more transparent to each other and links them more closely in their legitimate diversity.

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 31

48. Today the subject of development is also closely related to the duties arising from our relationship to the natural environment. The environment is God's gift to everyone, and in our use of it we have a responsibility towards the poor, towards future generations and towards humanity as a whole. When nature, including the human being, is viewed as the result of mere chance or evolutionary determinism, our sense of responsibility wanes. In nature, the believer recognizes the wonderful result of God's creative activity, which we may use responsibly to satisfy our legitimate needs, material or otherwise, while respecting the intrinsic balance of creation. If this vision is lost, we end up either considering nature an untouchable taboo or, on the contrary, abusing it. Neither attitude is consonant with the Christian vision of nature as the fruit of God's creation.

Nature expresses a design of love and truth. It is prior to us, and it has been given to us by God as the setting for our life. Nature speaks to us of the Creator (cf. Rom 1:20) and his love for humanity. It is destined to be “recapitulated” in Christ at the end of time (cf. Eph 1:9-10; Col 1:19-20). Thus it too is a “vocation”[115]. Nature is at our disposal not as “a heap of scattered refuse”[116], but as a gift of the Creator who has given it an inbuilt order, enabling man to draw from it the principles needed in order “to till it and keep it” (Gen 2:15). But it should also be stressed that it is contrary to authentic development to view nature as something more important than the human person. This position leads to attitudes of neo-paganism or a new pantheism — human salvation cannot come from nature alone, understood in a purely naturalistic sense. This having been said, it is also necessary to reject the opposite position, which aims at total technical dominion over nature, because the natural environment is more than raw material to be manipulated at our pleasure; it is a wondrous work of the Creator containing a “grammar” which sets forth ends and criteria for its wise use, not its reckless exploitation.

Today much harm is done to development precisely as a result of these distorted notions. Reducing nature merely to a collection of contingent data ends up doing violence to the environment and even encouraging activity that fails to respect human nature itself. Our nature, constituted not only by matter but also by spirit, and as such, endowed with transcendent meaning and aspirations, is also normative for culture. Human beings interpret and shape the natural environment through culture, which in turn is given direction by the responsible use of freedom, in accordance with the dictates of the moral law. Consequently, projects for integral human development cannot ignore coming generations, but need to be marked by solidarity and inter-generational justice, while taking into account a variety of contexts: ecological, juridical, economic, political and cultural[117].

Caritas in Veritae - Encyclical Letter Pope Benedict XVI - Part 30

46. When we consider the issues involved in the relationship between business and ethics, as well as the evolution currently taking place in methods of production, it would appear that the traditionally valid distinction between profit-based companies and non-profit organizations can no longer do full justice to reality, or offer practical direction for the future. In recent decades a broad intermediate area has emerged between the two types of enterprise. It is made up of traditional companies which nonetheless subscribe to social aid agreements in support of underdeveloped countries, charitable foundations associated with individual companies, groups of companies oriented towards social welfare, and the diversified world of the so-called “civil economy” and the “economy of communion”. This is not merely a matter of a “third sector”, but of a broad new composite reality embracing the private and public spheres, one which does not exclude profit, but instead considers it a means for achieving human and social ends.

Whether such companies distribute dividends or not, whether their juridical structure corresponds to one or other of the established forms, becomes secondary in relation to their willingness to view profit as a means of achieving the goal of a more humane market and society. It is to be hoped that these new kinds of enterprise will succeed in finding a suitable juridical and fiscal structure in every country. Without prejudice to the importance and the economic and social benefits of the more traditional forms of business, they steer the system towards a clearer and more complete assumption of duties on the part of economic subjects. And not only that. The very plurality of institutional forms of business gives rise to a market which is not only more civilized but also more competitive.


47. The strengthening of different types of businesses, especially those capable of viewing profit as a means for achieving the goal of a more humane market and society, must also be pursued in those countries that are excluded or marginalized from the influential circles of the global economy. In these countries it is very important to move ahead with projects based on subsidiarity, suitably planned and managed, aimed at affirming rights yet also providing for the assumption of corresponding responsibilities. In development programmes, the principle of the centrality of the human person, as the subject primarily responsible for development, must be preserved.

The principal concern must be to improve the actual living conditions of the people in a given region, thus enabling them to carry out those duties which their poverty does not presently allow them to fulfil. Social concern must never be an abstract attitude. Development programmes, if they are to be adapted to individual situations, need to be flexible; and the people who benefit from them ought to be directly involved in their planning and implementation. The criteria to be applied should aspire towards incremental development in a context of solidarity — with careful monitoring of results — inasmuch as there are no universally valid solutions. Much depends on the way programmes are managed in practice. “The peoples themselves have the prime responsibility to work for their own development. But they will not bring this about in isolation”[114]. These words of Paul VI are all the more timely nowadays, as our world becomes progressively more integrated. The dynamics of inclusion are hardly automatic. Solutions need to be carefully designed to correspond to people's concrete lives, based on a prudential evaluation of each situation. Alongside macro-projects, there is a place for micro-projects, and above all there is need for the active mobilization of all the subjects of civil society, both juridical and physical persons.

International cooperation requires people who can be part of the process of economic and human development through the solidarity of their presence, supervision, training and respect. From this standpoint, international organizations might question the actual effectiveness of their bureaucratic and administrative machinery, which is often excessively costly. At times it happens that those who receive aid become subordinate to the aid-givers, and the poor serve to perpetuate expensive bureaucracies which consume an excessively high percentage of funds intended for development. Hence it is to be hoped that all international agencies and non-governmental organizations will commit themselves to complete transparency, informing donors and the public of the percentage of their income allocated to programmes of cooperation, the actual content of those programmes and, finally, the detailed expenditure of the institution itself.

Caritas in Veritate - Encyclical Pope Benedict XVI - Part 29

45. Striving to meet the deepest moral needs of the person also has important and beneficial repercussions at the level of economics. The economy needs ethics in order to function correctly — not any ethics whatsoever, but an ethics which is people-centred. Today we hear much talk of ethics in the world of economy, finance and business. Research centres and seminars in business ethics are on therise; the system of ethical certification is spreading throughout the developed world as part of the movement of ideas associated with the responsibilities of business towards society. Banks are proposing “ethical” accounts and investment funds. “Ethical financing” is being developed, especially throughmicro-credit and, more generally, micro-finance. These processes are praiseworthy and deserve much support. Their positive effects are also being felt in the less developed areas of the world. It would be advisable, however, to develop a sound criterion of discernment, since the adjective “ethical” can be abused. When the word is used generically, it can lend itself to any number of interpretations, even to the point where it includes decisions and choices contrary to justice and authentic human welfare.

Much in fact depends on the underlying system of morality. On this subject the Church's social doctrine can make a specific contribution, since it is based on man's creation “in the image of God” (Gen 1:27), a datum which gives rise to the inviolable dignity of the human person and the transcendent value of natural moral norms. When business ethics prescinds from these two pillars, it inevitably risks losing its distinctive nature and it falls prey to forms of exploitation; more specifically, it risks becoming subservient to existing economic and financial systems rather than correcting their dysfunctional aspects. Among other things, it risks being used to justify the financing of projects that are in reality unethical. The word “ethical”, then, should not be used to make ideological distinctions, as if to suggest that initiatives not formally so designated would not be ethical. Efforts are needed — and it is essential to say this — not only to create “ethical” sectors or segments of the economy or the world of finance, but to ensure that the whole economy — the whole of finance — is ethical, not merely by virtue of an external label, but by its respect for requirements intrinsic to its very nature. The Church's social teaching is quite clear on the subject, recalling that the economy, in all its branches, constitutes a sector of human activity[11

Caritas in Veritate - Encyclical - Pope Benedict XVI - Part 21

35. In a climate of mutual trust, the market is the economic institution that permits encounter between persons, inasmuch as they are economic subjects who make use of contracts to regulate their relations as they exchange goods and services of equivalent value between them, in order to satisfy their needs and desires. The market is subject to the principles of so-called commutative justice, which regulates the relations of giving and receiving between parties to a transaction. But the social doctrine of the Church has unceasingly highlighted the importance of distributive justice and social justice for the market economy, not only because it belongs within a broader social and political context, but also because of the wider network of relations within which it operates.

In fact, if the market is governed solely by the principle of the equivalence in value of exchanged goods, it cannot produce the social cohesion that it requires in order to function well. Without internal forms of solidarity and mutual trust, the market cannot completely fulfil its proper economic function. And today it is this trust which has ceased to exist, and the loss of trust is a grave loss. It was timely when Paul VI in Populorum Progressio insisted that the economic system itself would benefit from the wide-ranging practice of justice, inasmuch as the first to gain from the development of poor countries would be rich ones[90]. According to the Pope, it was not just a matter of correcting dysfunctions through assistance.

The poor are not to be considered a “burden”[91], but a resource, even from the purely economic point of view. It is nevertheless erroneous to hold that the market economy has an inbuilt need for a quota of poverty and underdevelopment in order to function at its best. It is in the interests of the market to promote emancipation, but in order to do so effectively, it cannot rely only on itself, because it is not able to produce by itself something that lies outside its competence. It must draw its moral energies from other subjects that are capable of generating them.

36. Economic activity cannot solve all social problems through the simple application of commercial logic. This needs to be directed towards the pursuit of the common good, for which the political community in particular must also take responsibility. Therefore, it must be borne in mind that grave imbalances are produced when economic action, conceived merely as an engine for wealth creation, is detached from political action, conceived as a means for pursuing justice through redistribution.

The Church has always held that economic action is not to be regarded as something opposed to society. In and of itself, the market is not, and must not become, the place where the strong subdue the weak. Society does not have to protect itself from the market, as if the development of the latter were ipso facto to entail the death of authentically human relations. Admittedly, the market can be a negative force, not because it is so by nature, but because a certain ideology can make it so.

It must be remembered that the market does not exist in the pure state. It is shaped by the cultural configurations which define it and give it direction. Economy and finance, as instruments, can be used badly when those at the helm are motivated by purely selfish ends. Instruments that are good in themselves can thereby be transformed into harmful ones. But it is man's darkened reason that produces these consequences, not the instrument per se. Therefore it is not the instrument that must be called to account, but individuals, their moral conscience and their personal and social responsibility.

The Church's social doctrine holds that authentically human social relationships of friendship, solidarity and reciprocity can also be conducted within economic activity, and not only outside it or “after” it. The economic sphere is neither ethically neutral, nor inherently inhuman and opposed to society. It is part and parcel of human activity and precisely because it is human, it must be structured and governed in an ethical manner.

The great challenge before us, accentuated by the problems of development in this global era and made even more urgent by the economic and financial crisis, is to demonstrate, in thinking and behaviour, not only that traditional principles of social ethics like transparency, honesty and responsibility cannot be ignored or attenuated, but also that in commercial relationships the principle of gratuitousness and the logic of gift as an expression of fraternity can and must find their place within normal economic activity. This is a human demand at the present time, but it is also demanded by economic logic. It is a demand both of charity and of truth.