Social plenary session

The Seventh Plenary Session of the Pontifical Academy of Social Sciences was concerned this year with the effects of globalisation. Its aim was to clarify not only the economic, technological and financial dimensions of this subject but also, as the Holy Father himself said at his meeting with the Academy’s members, the cultural and ethical aspects of a phenomenon “that is neither good nor bad a priori, but which will become what men make of it. Globalisation should be at the service of mankind and serve the common good and solidarity.”

This meeting, which was held at the Vatican from 25to 28 April 2001, was attended by members of the Academy from twenty-three countries representing all the regions of the world. The meeting was presided over by its Chairman, Professor E. Malinvaud, of France. Prior to the meeting, the members studied a report on the social dimensions of globalisation prepared by a group of experts and published under the direction of Professor L. Sabourin of Canada. The Assembly began with an address by the Reverend Father J. Schasching S.J. of Austria on the position of the Church on globalisation.

Professor D. Crocker of Maryland University and President of the International Association for Ethics in Development then analysed the possibilities of humanising internationalisation. He outlined the different approaches currently voiced and called for throughout the world.

Professor P. Dembinski of Freiburg, director of l'Observatoire de la Finance in Geneva reviewed the new forms of interdependence generated by internationalisation and highlighted the effects of new technologies and the new mentalities that accompany globalisation.

The contracting of territorial space affects the redistribution of wealth and cultural identities both within and between countries that are influenced by the movements of the market. The last two aspects were analysed by M. Z. Diabré, Assistant Director of the United Nations Development Programme, and Professor P. Morandé of Chile. The discussions that followed shed light on the differing opinions that exist with regard to the direct and indirect effects of globalisation on the existence and above all on the increase of poverty in the world.

Professor J. Braga de Macedo from Portugal, the President of the Centre of Development of the OECD in Paris, then explained how transparency, accountability, and the struggle against corruption have become essential components in pursuit of better governance at both national and international levels.

For her part, Professor S. Griffith-Jones of Sussex University examined the nature and impact of flows of capital on developing countries. She then reviewed current initiatives to restructure world finance.

The last paper was given by Msgr. J. Homeyer, Bishop of Hildesheim in the North of Germany and President of the Episcopal Conference of the European Union. This concerned the challenges posed to the Church by globalisation, particularly in Europe.

Comments were made on each of the papers by three members of the Academy or invited experts. These were followed by open and lively discussions. In their report on the summary of this Seventh Plenary Session, Msgr. R. Minnerath of France and Professor M. Ramirez of the Philippines concluded, with the agreement of the members, that the Academy should continue its reflections on this complex and topical theme of globalisation as part of the wider development of the Church’s social Doctrine.

La septième session de l’Académie Pontificale des Sciences Sociales a porté, cette année, sur les effets de la globalisation, dans le but de mettre en lumière non seulement les dimensions économiques, technologiques et financières mais aussi, comme le Saint Père l’a lui-même déclaré lors de sa rencontre avec les membres de l’Académie, les aspects culturels et éthiques d’un phénomène «qui n’est ni bon, ni mauvais a priori mais qui sera ce que les hommes en feront. La globalisation doit entre au service de l’homme et servir le bien commun et la solidarité.»

Réunis au Vatican, du 25 au 28 avril 2001, les membres de l’Académie, originaires de plus de 23 pays représentant toutes les régions du monde, et présidée par le professeur E. Malinvaud de France, ont auparavant pris connaissance d’un rapport sur les dimensions sociales de la globalisation, préparé par un groupe d’experts, et publié sous la direction du professeur Louis Sabourin du Canada. Ces actes ont servi à la préparation du programme de l’Assemblée qui a d’abord entendu une communication du Rev. Père J. Schasching S.J. d’Autriche sur la position de l’Eglise face à la globalisation.

Le professeur D. Crocker de l’Université du Maryland et président de l’International Association for Ethics in Development a ensuite analysé les possibilités d’humaniser la mondialisation. Il a mis en lumière les différentes voies présentement suggérées et réclamées à travers le monde.

La troisième session a permis au professeur P. Dembinski de Fribourg, directeur de l’Observatoire de la Finance à Genève, de traiter des nouvelles formes d’interdépendance que génère la mondialisation et de dégager notamment les effets des nouvelles technologies et des nouvelles mentalités qui accompagnement la globalisation.

Le rétrécissement de l’espace territorial a des effets sur la répartition des richesses et sur les identités culturelles à l’intérieur et entre les pays qui sont influencées par les jeux du marché. Ces deux derniers aspects ont été analysés par M. Z. Diabré, Administrateur adjoint du Programme des Nations Unies pour le développement (PNUD) et le professeur P. Morandé du Chili. Les discussions qui ont suivi ont mis en lumière les désaccords qui existent quant aux effets directs et indirects de la globalisation sur l’existence et surtout sur l’augmentation de la pauvreté dans le monde.

Il revint ensuite au professeur J. Braga de Macedo du Portugal, Président du Centre de développement de l’OCDE à Paris, de montrer comment la transparence, l’imputabilité, la lutte contre la corruption deviennent des éléments fondamentaux dans la recherche d’une meilleure gouvernance aux échelons national et international.

Pour sa part, le professeur S. Griffith-Jones de l’Université de Sussex a examiné la nature et l’impact des flux financiers sur les pays en voie de développement, puis traité des initiatives actuelles pour restructurer l’architecture financière mondiale.

La dernière séance a fait l’objet d’une communication de Mgr J. Homeyer, évêque d’Hildesheim dans le Nord de l’Allemagne et président de la conférence épiscopale de l’Union européenne. Telle a été consacrée aux défis que la mondialisation pose à l’Eglise, notamment en Europe.

Chacune de ces communications a fait l’objet de commentaires par trois membres de l’Académie ou d’experts invités, suivis de discussions ouvertes et animées. Dans leur rapport de synthèse de cette septième assemblée, Mgr R. Minnerath de France et le professeur M. Ramirez des Philippines ont conclu, ce qui a été accepté par les membres, que l’Académie devrait poursuivre ses réflexions sur ce thème complexe et actuel de la globalisation dans la perspective d’un approfondissement de la Doctrine sociale de l’Eglise.

ADDRESS OF THE HOLY FATHER
TO THE PONTIFICAL ACADEMY OF SOCIAL SCIENCES

Friday, 27 April 2001

Ladies and Gentlemen of the Pontifical Academy of Social Sciences,

1. Your President has just expressed your pleasure at being here in the
Vatican to address a subject of concern to both the social sciences and the
Magisterium of the Church. I thank you, Professor Malinvaud, for your kind
words, and I thank all of you for the help you are generously giving the
Church in your fields of competence. For the Seventh Plenary Session of the
Academy you have decided to discuss in greater depth the theme of
globalization, with particular attention to its ethical implications.

Since the collapse of the collectivist system in Central and Eastern Europe,
with its subsequent important effects on the Third World, humanity has
entered a new phase in which the market economy seems to have
conquered virtually the entire world. This has brought with it not only a
growing interdependence of economies and social systems, but also a
spread of novel philosophical and ethical ideas based on the new working
and living conditions now being introduced in almost every part of the
world. The Church carefully examines these new facts in the light of the
principles of her social teaching. In order to do this, she needs to deepen
her objective knowledge of these emerging phenomena. That is why the
Church looks to your work for the insights which will make possible a
better discernment of the ethical issues involved in the globalization
process.

2. The globalization of commerce is a complex and rapidly evolving
phenomenon. Its prime characteristic is the increasing elimination of
barriers to the movement of people, capital and goods. It enshrines a kind of
triumph of the market and its logic, which in turn is bringing rapid changes
in social systems and cultures. Many people, especially the disadvantaged,
experience this as something that has been forced upon them, rather than as
a process in which they can actively participate.

In my Encyclical Letter Centesimus Annus, I noted that the market economy
is a way of adequately responding to people’s economic needs while
respecting their free initiative, but that it had to be controlled by the
community, the social body with its common good (cf. Nos. 34, 58). Now
that commerce and communications are no longer bound by borders, it is the
universal common good which demands that control mechanisms should
accompany the inherent logic of the market. This is essential in order to
avoid reducing all social relations to economic factors, and in order to
protect those caught in new forms of exclusion or marginalization.

Globalization, a priori, is neither good nor bad. It will be what people
make of it. No system is an end in itself, and it is necessary to insist that
globalization, like any other system, must be at the service of the human
person; it must serve solidarity and the common good.

3. One of the Church’s concerns about globalization is that it has quickly
become a cultural phenomenon. The market as an exchange mechanism
has become the medium of a new culture. Many observers have noted the
intrusive, even invasive, character of the logic of the market, which reduces
more and more the area available to the human community for voluntary and
public action at every level. The market imposes its way of thinking and
acting, and stamps its scale of values upon behaviour. Those who are
subjected to it often see globalization as a destructive flood threatening the
social norms which had protected them and the cultural points of reference
which had given them direction in life.

What is happening is that changes in technology and work relationships
are moving too quickly for cultures to respond. Social, legal and cultural
safeguards – the result of people’s efforts to defend the common good – are
vitally necessary if individuals and intermediary groups are to maintain
their centrality. But globalization often risks destroying these carefully built
up structures, by exacting the adoption of new styles of working, living and
organizing communities. Likewise, at another level, the use made of
discoveries in the biomedical field tend to catch legislators unprepared.
Research itself is often financed by private groups and its results are
commercialized even before the process of social control has had a chance
to respond. Here we face a Promethean increase of power over human
nature, to the point that the human genetic code itself is measured in terms of
costs and benefits. All societies recognize the need to control these
developments and to make sure that new practices respect fundamental
human values and the common good.

4. The affirmation of the priority of ethics corresponds to an essential
requirement of the human person and the human community. But not all
forms of ethics are worthy of the name. We are seeing the emergence of
patterns of ethical thinking which are by-products of globalization itself and
which bear the stamp of utilitarianism. But ethical values cannot be dictated
by technological innovations, engineering or efficiency; they are grounded
in the very nature of the human person. Ethics cannot be the justification
or legitimation of a system, but rather the safeguard of all that is human
in any system. Ethics demands that systems be attuned to the needs of man,
and not that man be sacrificed for the sake of the system. One evident
consequence of this is that the ethics committees now usual in almost every
field should be completely independent of financial interests, ideologies
and partisan political views.

The Church on her part continues to affirm that ethical discernment in the
context of globalization must be based upon two inseparable principles:

– First, the inalienable value of the human person, source of all human
rights and every social order. The human being must always be an end and
not a means, a subject and not an object, nor a commodity of trade.

– Second, the value of human cultures, which no external power has the
right to downplay and still less to destroy. Globalization must not be a new
version of colonialism. It must respect the diversity of cultures which,
within the universal harmony of peoples, are life’s interpretive keys. In
particular, it must not deprive the poor of what remains most precious to
them, including their religious beliefs and practices, since genuine religious
convictions are the clearest manifestation of human freedom.

As humanity embarks upon the process of globalization, it can no longer do
without a common code of ethics. This does not mean a single dominant
socio-economic system or culture which would impose its values and its
criteria on ethical reasoning. It is within man as such, within universal
humanity sprung from the Creator’s hand, that the norms of social life
are to be sought. Such a search is indispensable if globalization is not to be
just another name for the absolute relativization of values and the
homogenization of life-styles and cultures. In all the variety of cultural
forms, universal human values exist and they must be brought out and
emphasized as the guiding force of all development and progress.

5. The Church will continue to work with all people of good will to ensure
that the winner in this process will be humanity as a whole, and not just a
wealthy elite that controls science, technology, communication and the
planet’s resources to the detriment of the vast majority of its people. The
Church earnestly hopes that all the creative elements in society will
cooperate to promote a globalization which will be at the service of the
whole person and of all people.

With these thoughts, I encourage you to continue to seek an ever deeper
insight into the reality of globalization, and as a pledge of my spiritual
closeness I cordially invoke upon you the blessings of Almighty God.

Wednesday, 25 April

8.00	Holy Mass celebrated by H. E. Mgr. D. Squicciarini in commemoration of the deceased Prof. Janusz A. Ziolkowski at the Altare della Tomba di San Pietro.
9.00	*Word of Welcome* : Prof. E. Malinvaud, President of the Academy.
9.15	*The Theme of the Assembly* *: Aims, Limits, Approaches* : Prof. L. Sabourin, Chairman of the Committee on Developing Countries.
9.30	The Church’s Views on Globalization : Father J. Schasching, S.J., member of the Academy
	First session : Chair : Prof. J.G. Zubrzycki
10.15	Globalization and Human Development : Ethical Approaches Prof. David Crocker, University of Maryland, President, International Development Ethics Association Comments : - Prof. R. Rémond, member of the Academy - Prof. W. Villacorta, member of the Academy - Dean S. Bernal Restrepo, Gregorian University
11.30	Break.
12.00	Discussion.
13.00	Lunch.
	Second Session : Chair : Judge J.N. McNally
15.00	The Global Economy : Emerging Forms of (Inter) dependence Prof. Paul Dembinski, University of Fribourg, Director, Observatory of Finance Geneva) Comments : - Prof. P.S. Dasgupta, member of the Academy - Prof. T. Nojiri, member of the Academy - Prof. S. Zamagni, University of Bologna
17.00	Break.
17.30	Discussion.
19.00	Dinner.

Thursday, 26 April

Saturday, 28 April

Klub Parliamentarny Unii Wolnosci (Parliamentary Caucus of the Freedom Union) SEJM RP

Prof. Wilfrido V. VILLACORTA

1. Given the increasing importance of globalisation and its impact upon the lives of people all over the world, members of the Pontifical Academy of Social Sciences, and in particular the Committee for Relations with Developing Countries, expressed the desire that this theme be included in the Academy's work programme. In the first place, it was proposed that a seminar bringing together a select group of experts and academics could use an analytical plan to study the dimensions of globalisation and prepare the intellectual ground for the holding of a subsequent general meeting.

2. This seminar was held in the Vatican in February 2000. The proceedings of this meeting contain the papers and propositions prepared for the next general meeting to be held in the Vatican from 25 to 28 April 2001, the programme for which can be found below.

3. The seminar pointed out that in addition to the many facets and multiple effects of globalisation and the various approaches and reactions that it gives rise to, it was important to define those aspects requiring further consideration with regard to the proper formulation of a Christian point of view. Particular emphasis was placed upon the examination of the human and ethical dimensions of globalisation and the need to analyse the possibilities of reform at an institutional level within a perspective which takes special account of developing countries. Strategies will thus be prioritised which can be elaborated with a view to supporting the Universal Common Good which underpins the Church's activity within the contemporary world system, as the Holy Father has reiterated many times during the last decade and particularly throughout the events which took place at the time of the Great Jubilee. The centuries-old concept of the Universal Common Good particularly deserves to be promoted in today's climate, given the many concepts which have come to occupy a decisive position, beginning with economic liberalism.

4. Many observers regard globalisation as the new frontier for economic expansion, while others view it in the light of its side-effects, such as marginalisation and impoverishment.
The reality lies somewhere between these two approaches in the phenomenal development of technology which reduces territories and contracts space. This contraction of geographical space through communications has a corollary in the growing uniformity of cultural behaviour, leading in turn to the resistance of national cultures. The convergence of cultural practices provides a new dynamic to the convergence of systems and brings about the emergence of a new order of values, threatening the disappearance of national identities. The multiple identities which make diversity positive and part of a common heritage may feel their survival to be at risk but are equally prone to succumb to the temptation of fundamentalism and identity withdrawal.

5. This contraction of cultural space appears to be the consequence of an enlargement of economic space. Economic liberty is deployed on a global scale. International commerce is intensifying under the promotion of free trade while conflicting voices are raised to demand an equitable trading system. The anonymous masses of individuals find themselves marginalised and social inequalities reinforced. These inequalities continue between states.
Through its effects, globalisation does not appear an equal contest but rather as a duel with winners and losers. The behavioural norms which prevail in this global space give rise to ethical questions and the formulation of propositions which reinforce human dignity.

6. At an institutional level, various paths are followed in the search for an authority that is able to act as a restraining element on the parties involved or can arbitrate between the often conflicting interests which are defended within the framework of globalisation. While the G7 attempts to mould globalisation at the state level, economic organisations permit the conduct of economic, financial and commercial activities, while summit meetings such as Davos offer a tribune for the principal protagonists. States retreat behind the citadels of sovereignty in the face of the regulatory dynamic of international economic organisations and the power of financial sectors as well as multinational business. At the same time, civil society is mobilising itself to demand more transparency and to promote the defence of social interests.

7. With regard to relations with the Third World, the theme of the next meeting will be developed by examining recurrent questions, particularly movements of capital at a world scale and the impact of the flow of finance on the Third World, free trade and an equitable trading system, and competitive or conflicting trends. Developing countries are trying to attract investment but fear the erosion of entire aspects of their sovereignty. This fear is reinforced by studies from the CNUCED, which, in its Annual Report on direct investment in the world, draws attention to the harmful consequences of mergers and acquisitions, which can often take the form of 'recolonisation.'

8. In this context, the search for a common universal good becomes an essential cause of concern. This permanent quest for an ethical grounding to globalisation can be systematised as the concept of a global public good, promoted by the PNUD. The search for a common good within the framework of globalisation in effect postulates a new ethic of international cooperation supporting a system based on liberalism but directed by a spirit of equity and fundamental human values. The questions broached by the Academy concern the whole of the international scientific community. In a context of globalisation, the circulation of ideas can bring about the emergence of a social thought oriented towards action and based on Christian values. Exchanges between experts in the social context of globalisation can also facilitate inter-confessional dialogue and serve as a basis in the search for an ethical dimension which is institutional but consensual in addressing the spread of globalisation.

9. In order to develop a clear approach to globalisation it was ultimately decided to limit matters to an analysis of certain decisive questions and to tackle other important aspects such as those relating to technology and bio-ethics at subsequent meetings. The themes chosen for the next meeting will address the Church's stance on globalisation, the main ethical questions posed by globalisation, institutional changes under way or foreseeable in the future, the consequences of capital movements on developing countries, free trade and an equitable trading system, conflicting or complementary trends in international business, the effects of globalisation, particularly as regards poverty and the crisis of cultural identities, and globalisation and the development of the Church's international relations.

Historically speaking a twofold trend towards the globalisation can be noted in the Social Teaching of the Catholic Church.

The first social enciclicals limited themselves to the social problems of the industrialised countries (Rerum novarum 1891; Quadragesimo annus 1931).

Mater et Magristra (1961) extended its view already towards the developing countries.

This enlargement continued in Populorum progressio (1967), Laborem exercens (1981) and in a particular way in Sollicitudo rei socialis (1987) which used the critical expression ”structures of sin”. After the breakdown of communism Centesimus annus offered a global view for the renewal of a just economic, social and political order.

The first social enciclical was adressed to the hierarchy. Quadragesimo annus extended its message also to all catholics. Pacem in terris (1963) further extended its message to ”all men of good will”. Pope John II in his social enciclicals Sollicitudo rei socialis and Centesimus annus insisted for a close collaboration of all christians but also the great religions of the world and all men of good will.

This means: There is a growing trend in the Catholic Social Teaching towards a global view of the social problems and at same time a willingness towards a global collaboration.

It is worthwhile to quote Centesimus annus: “Today we are facing the so-called ‘globalisation of the economy‘, a phenomenon which is not to be dismissed, since it can create unusual oppotunities of greater prosperity. There is a growing feeling however, that this increasing internationalisation of the economy ought to be accompanied by effectiv international agencies which will oversee and direct the economy to the common good, some that an individual State even if it were the most powerful on earth, would not be a position to do. In order to achieve this result, it is necessary that there be increased coordination among the more powerful countries, and that in international agencies the interests of the whole human family be equally represented. It is also necessary that in evaluting the consequencens of their decisions, these agencies always give sufficient consideration to peoples and countries which have little weight in the international market but which are burdended by the most acute and desperate needs, and are thus more dependent on support for their devolopment. Much remains to be done in this area” (58).

It has to be noted that this quotion concerns first of all the economic globalisation but it is evident from the whole context that globalisation in Chatholic Social Teaching has a more general meaning. It can be summarised the following way:

first: The Catholic Social Teaching sees globalisation as an instrument for the increase of the wellbeing of mankind, an ethical principle always defended by the Catholic Social Teaching.

second: The free national market non-guarantees automatically the common good but is in need of laws and rules. This is not only valid for national markets. Globalised markets are in the same way in need of a legal frame and orientation.

third: In a global market this can not be done on a purely national level but is in need of international agreements and institutions. The Catholic Social Teaching is aware that this is a very difficult task. It says explicitly that this can be done only if the big economic powers and countries agree. But these countries are not only under political but also under economic pressure, for instance the pressure of the financial markets.

fourth: It is important that this control of the global market is not only safeguarded by national and international authorities but also by the social forces. This corresponds the principle of subsidiarity saying that the intermediate forces between the induvidual and the State have the priority in ordering the free market towards the common good.

fifth: In all these efforts particular attention has to be given to the developing countries. This is to say: The advantages of the globalisation should not be restricted to the privileged countries, for instance the Unided States, Western Europe and Japan but extended in a particular way to countries and continents which are not or not yet prepared to enter the competition of the global market.

sixth: The Catholic Social Teaching is convinced that globalisation requires a good amount of economic and political measures. But it is at the same time convinced that this political and economical measures have to be based upon ethical principles and motivation. The main question in this respect regards the sources and contributers of these ethical values. It is important that the Catholic Social Teaching speaks in this context of a new ecomenical spirit. This meas it is conviced that the challenges of the new globalisation can only be answerded by an ecomenical effort of the Christian Churches, the great religions of the world and all men of good will.

Concluson: globalsition is a challenge not only for the ecomonic, social and political forces. It is a challenge as well for the the Social Teaching of the Churches. This teaching has progessed from a rather limeted point of view towards a growing awareness of the new challenges of globalisation. But, as the enciclical Centesimus annus says: “much remains to be done” (58) for instance in regard to the influence of the financial markets, the growing gap between the rich and the poor, the open question of the intergenerational solidarity and the protection of nature.

Wednesday, 25 April

The Church’s Views on Globalization : Father J. Schasching, S.J., member of the Academy

First session : Chair : Prof. J.G. Zubrzycki

Globalization and Human Development : Ethical Approaches

The Global Economy : Emerging Forms of (Inter) dependence

Thursday, 26 April

The Impact of Global Financial Flows on Developing Countries

Saturday, 28 April

Prof. Wilfrido V. VILLACORTA