"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."

Some economic fundamentalists argue that 'the market' operates by its own laws which we must follow or die. The laws of the market, they posit, must govern human economic activity, and we must change the way we live to conform to this new gospel. The latest treatise by the Roman Catholic Church on social, economic and political matters, released on June 29 last, makes it clear that the market (and globalisation which is its extension) is human activity, and therefore is governed by the laws of ethics and morality, and not the other way around.

"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. 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."

"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 market is not, and must not become, the place where the strong subdue the weak."

Fundamentally unjust

If the market is left to operate the way the market fundamentalists want it to, wealth will become concentrated in the hands of a few, producing unstable countries and an unstable world. Such a situation is fundamentally unjust, and should be opposed by Roman Catholic Christians, since the principles of 'distributive justice' and 'social justice' would be lacking.

"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.

"Globalisation, a priori, is neither good nor bad. It will be what people make of it. We should not be its victims, but rather its protagonists, acting in the light of reason, guided by charity and truth. Blind opposition would be a mistaken and prejudiced attitude, incapable of recognising the positive aspects of the process, with the consequent risk of missing the chance to take advantage of its many opportunities for development. The processes of globalisation, suitably understood and directed, open up the unprecedented possibility of large-scale redistribution of wealth on a worldwide scale; if badly directed, however, they can lead to an increase in poverty and inequality, and could even trigger a global crisis. It is necessary to correct the malfunctions, some of them serious, that cause new divisions between peoples and within peoples, and also to ensure that the redistribution of wealth does not come about through the redistribution or increase of poverty: a real danger if the present situation were to be badly managed."

Religious fundamentalists

Life is not as simple as either the religious fundamentalists or the market fundamentalists would have us believe. Those who wish to see these ideas developed and fleshed out can read Caritas in Veritate (Charity in Truth) on the Internet. The goal is human development, the building of His Kingdom here on Earth.

Peter Espeut is a rural development sociologist and a Roman Catholic deacon.