Vatican sees roots of economic crisis in a lack of ethical reference points

(May 6, 2010) The "financialization" of the economy as a source of global crisis, which has affected mainly the weaker countries, confirmation "essentially ethical" nature of the economy and the need for greater public intervention in the matter and, finally, the possibility of "a new treaty to better ensure the foundations of the common currency" in Europe, in the wake of the Greek crisis. These are the main points arising from the sixteenth plenary session of the Pontifical Academy of Social Sciences, which was held from April 30 to May 4 on "Crisis in a Global Economy. Re-Planning the Journey", was presented to journalists by the chairman of Pontifical Academy, Mary Ann Glendon. Glendon said the work followed the indications offered by Pope Benedict XVI to the assembly that the crisis “has also shown the error of the assumption that the market is capable of regulating itself, apart from public intervention and the support of internalized moral standards. The Pontifical Academy followed up on Pope Benedict's recommendation for stronger regulation of international financial markets, and considered policies that might "ensure greater transparency in financial instruments and avoid the moral hazard problems arising from bailouts." Glendon added that a focus on financial instrument reform should not distract from basic development policy and investment in rudimentary human capital, nutrition, health and basic education". José Raga, economics professor at the Complutense University in Spain, said that education is focused on "employability," such that society does not seem to concern itself with training persons, but rather professionals, as he presented conclusions from the academy's plenary assembly. Raga spoke of four elements: a) Economic aspects; b) moral considerations; c) social framework; and d) education fundaments. Regarding the last element, he said that education is continually spoken of, and therefore we must ask what our education provides to young people and what the real goal of the educational process is.