Humanizing Neo-liberal Globalization: A Christian Vision and Commitment in the Context of India
Author: Cyprian Tellis
Persistent link: http://hdl.handle.net/2345/2932
This work is posted on eScholarship@BC, Boston College University Libraries.
Boston College Electronic Thesis or Dissertation, 2011
Copyright is held by the author, with all rights reserved, unless otherwise noted.
BOSTON COLLEGE SCHOOL OF THEOLOGY AND MINISTRY
HUMANIZING NEO-LIBERAL GLOBALIZATION: A CHRISTIAN VISION AND COMMITMENT IN THE CONTEXT OF INDIA
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF SACRED THEOLOGY
BY CYPRIAN TELLIS, S.J
2011
© copyright by CYPRIAN TELLIS 2011
THESIS DIRECTOR
THOMAS J. MASSARO, S.J
READERS
STEPHEN J. POPE
O. ERNESTO VALIENTE
EXAMINER
MT. DAVILA
PROGRAM DIRECTOR
JOHN R. SACHS, S.J
Abstract
There is a substantial and growing corpus of literature that describes, with convincing statistics and analysis, globalization as the greatest achievement in the history of our modern world and that it has brought the greatest degree of prosperity and economic growth to poor countries. However, seen from the perspective of the poor and the marginalized, the current globalization has not helped them to end their misery and marginalization; indeed in most cases it has actually worsened their situation.
The Christian community cannot remain an idle spectator of this unjust, inhuman and sinful global reality. Analyzed from a Christian theological perspective, it is not only an economic issue but also a moral issue. It is a social sin to violate human dignity, to commodify human labor, and to marginalize the poor.
Based on the teachings of the Federation of Asian Bishops Conferences, the Catholic
Bishops Conference of India and some prominent Asian theologians, I contend that dialogue with other faith traditions, cultures and the poor must be an essential part of her mission of humanizing the current globalization. I argue that the Church in India should avoid the presumption that she already possesses a vision of the common good adequate to the Indian society. While remaining committed to gospel values, the Church must be an open-minded listening and learning.
Contents
Acknowledgements….…………………………………….………………………………………….………….viii
General Introduction...... 1
Methodology...... 6
Overview...... 7
Chapter One: Economic Globalization: Its Meaning, Ideology and Consequences for the Poor
Introduction...... 12
1. Meaning and Definitions...... 15 1.2. Some Definitions ...... 19 1.3. The Historical Background...... 24
2. Neo-liberalism: It’s Governing Ideology...... 27 2.1. Neo-liberal Capitalism and Globalization ...... 32 2.2. The Re-emergence of Neo-liberalism...... 33 2.3. The Unholy Trinity (the WB, WTO, IMF): the Main Agents ...... 35
3. Defining Elements of Globalization ...... 38 3.1. Free Market and Global Trade...... 39 3.2. Global Financial Markets...... 43 3.3. The Transnational Corporations (TNCs) ...... 47
4. The Impact of Globalization: An Unending Debate...... 53 4.1. Globalization and Poverty...... 64 4.1.1. Meaning of Poverty...... 65 4.1.2. Growing Poverty...... 68 4.1.3. Reasons for Global Poverty ...... 71 4.2. Globalization and Social Justice ...... 76 4.2.1. Globalization and Labor ...... 83 4.2.1.1 The Unskilled Workers...... 88 4.2.2. Peasant Communities in the Developing World...... 89 4.3. Globalization and the Human Person ...... 93 4.3.1. Commodification of Human Identity...... 93 4.3.2. Self-Identity and Consumerism ...... 95
Conclusion ...... 96
Chapter Two: Alternatives to Economic Globalization
Introduction...... 99
1. Emerging Global Alternatives ...... 102 1.1. People’s Social Movements...... 103 1.1.1. Globalization from Below...... 105 1.1.1.1. The Principle of Subsidiarity ...... 107 1.1.1.2. Its Vision and Actions...... 109 1.1.1.3. Contradictions and Future of the Movement ...... 110 1.1.2. World Social Forum...... 112 1.1.3. Fair Trade Movement ...... 116 1.2. Localization...... 120 1.3. Reformist Alternatives...... 123 1.3.1. Fair Global Governance...... 125 1.3.2. International Fair Trade ...... 127 1.3.2.1. Principles for Fair Trade Agreements...... 131 1.3.3. Developing Infrastructure and Human Capabilities ...... 133 1.3.4. Sustainable Development...... 135
2. Comprehensive Vision of Development...... 139 2.1. New Standard of Measurement...... 140 2.2. Joseph Stiglitz’s Vision of Development...... 142 2.2.1. Main Components of Development...... 144 2.2.1.1. Market and Private Sector...... 144 2.2.1.2. The Public Sector...... 144 2.2.1.3. Individuals and Community...... 145 2.3. Amartya Sen’s Capability Development Approach...... 147 2.3.1. Multifaceted Approach to Development...... 149
Conclusion ...... 152
Chapter Three: Catholic Social Teaching: A Critical Response to Neo-liberal Globalization
Introduction...... 154
1. The Church and Globalization...... 161 1.1. Globalization: “As a Moral Issue”...... 166 1.2. The Church: a Sign of God’s Kingdom ...... 172 1.3. The Church’s Commitment to Social Justice...... 177 1.3.1. Identifying Structures of Sin...... 179 1.3.2. The Christian Meaning of Justice ...... 184 1.3.2.1. The Biblical Understanding of Justice...... 186 1.3.2.2. Justice in Catholic Social Teaching ...... 189 1.4. The Preferential Love for the Poor ...... 196 1.4.1. The Meaning and Roots of this Concept...... 197 1.4.2. Biblical Roots...... 200 1.4.3. Implications for the Contemporary Context ...... 202
2. Humanizing Globalization: Integral and Authentic Development ...... 204 2. 1. Human Dignity as the Measuring Yardstick...... 209 2.1.1. The Human Person as Sacred ...... 211 2.1.2. The Human Person in Communion...... 213 2. 2. Solidarity...... 216 2.2.1. Solidarity as a Virtue ...... 217 2.2.2. Solidarity and Liberation ...... 219 2.3. The Common Good...... 222 2.3.1. Meaning of the Concept...... 222
Conclusion ...... 226
Chapter Four: Church in Action: Being a Prophetic Church in India
Introduction...... 229
1. The Context...... 232 1.1. Less-Skilled Informal Workers...... 238 1.2. Farmers’ Crisis...... 241
2. Church in Action...... 247 2.1. The Kingdom Mission of the Church of India...... 252 2.2. The Praxis-Oriented Dialogue and Collaboration...... 255 2.2.1. Empowerment of the Poor ...... 263 2.2.1.1. The Empowerment and Education...... 267 2.2.2. Basic Human Communities ...... 270
Conclusion ...... 272
General Conclusion...... 275
Bibliography ...... 280
Acknowledgements
I wish to thank my dissertation director Rev. Dr. Thomas J. Massaro, S.J. for his
guidance, direction, advice and constructive suggestions. His humane relational approach, his insightful suggestions, and helpful critical corrections made this research work an enjoyable and rewarding experience. I express my sincere gratitude to him for being a good mentor.
I am also thankful to my dissertation committee, Profs. Stephen J. Pope and O.
Ernesto Valiente, for their invaluable suggestions and constant encouragement. I am grateful
to MT Davila for being my examiner. I am grateful to Rev. Glenn F. William, S.J. for
patiently correcting my use of the English language and editing my thesis.
My special thanks to Rev. Bradley Schaeffer, S.J. and all the Jesuits at Faber Jesuit
Community in Brighton for their loving support and friendship. I am also grateful to the
Society of Jesus for giving me this privilege to study and all the financial support.
Finally, I sincerely thank all the professors and staff of the faculty of Theology at
STM/BC, Boston for their excellent service. I also express a word of thanks to all my fellow
students and friends who have contributed to make my stay here comfortable and my studies
fruitful.
viii GENERAL INTRODUCTION
Contemporary human history is passing through a pivotal period and we are standing at a great crossroads in history. Globalization is a buzzword today. Whether one applauds it or condemns it, one cannot simply ignore it as it has become an integral reality of the world.
Our society is, whether we like it or not, under the power of globalization and we live in the cultural milieu of privatization, free trade, liberalization, modernization, internet communication, networks and interconnectedness, job outsourcing, wealth accumulation, consumerism and individualism. Beyond being a concept that has to be analyzed and interpreted, but a reality that requires critical evaluation and constant taming. It is radically affecting and transforming every aspect of human life and society. It is drastically changing and challenging human identity, the meaning and direction of human life, human relationships, social traditions, cultures, economies, religious beliefs, and politics. It presents to the human community immense opportunities, possibilities, potentials, but also with new challenges of human misery and deep exploitation. It has created both winners and losers with competing hopes and fears about the future of human existence. Hence globalization has become a significant subject of analysis, debate and research among sociologists, anthropologists, economists, theologians, environmentalists, social scientists, activists, and common people.
There is a substantial and growing corpus of literature that describes its meaning, its origin and basic ideology, its causes, agents, priorities, and more importantly its positive and negative impact on human community and on the entire world. Is globalization a gift or a tragedy? Is it a curse or a blessing? So far there is little common ground for agreement. At one extreme, it is praised as an irresistible and benign force for delivering economic prosperity, progress, and peace to people throughout the world. At the other extreme, it is associated with deprivation, disaster and doom. It is blamed by some for all the evil in the 2 world.1 There is an enormous body of scholarly literature, which with convincing statistics
and analysis, argues that globalization is the greatest achievement in the history of our
modern world and that it has brought the greatest degree of prosperity and economic growth
to poor countries.
Though there are ongoing disputes and conflicting claims about this complex and
multidimensional reality, nevertheless I argue that the Church’s critical theological analysis
of it must start from the situation of the poor, the victims of neo-liberal globalization. From a
Christian perspective, the fundamental measure of an economy should be how the poor and
vulnerable are faring and not how prosperous the elite wealthy are.2 Consequently,
encounters and experiences of the poor, the marginalized and victims of globalization afford
a different picture of globalization and help observers to understand the often veiled inhuman
and sinful fallouts of globalization. From the perspective of the poor and marginalized the
current version of globalization, which is governed by neoliberalism and the Washington
Consensus, has not helped them to end their misery; indeed in most cases it has actually
worsened it. For millions of poor, unskilled, uneducated, and marginal farming families that
have no bargaining power it has not worked. They have lost their jobs, their land and are
displaced from their traditional livelihoods and cultural diversity. Their lives have become
more insecure and insignificant.3 More significantly, they have lost their human dignity and identity.
A critical and in-depth understanding of this complex reality challenges the Church to reflect creatively on her prophetic mission of denouncing the injustices and abuses of globalization and courageously announcing God’s justice and love for all humankind. Her concrete commitment to transform the current globalization should be constituted by her faith
1 World Commission on the Social Dimension of Globalization, A Fair Globalization: Creating Opportunities for All (Geneva: International Labor Office, 2004), 24. 2 Chuck Collins and Mary Wright, The Moral Measure of the Economy. Maryknoll (New York: Orbis Books, 2007), 23. 3 World Commission on the Social Dimension of Globalization, A Fair Globalization, 3. 3 in the God of love and justice and her special love for the poor and her dedication to the common good that opposes any form of marginalization and oppression of the powerless and the vulnerable.
The Church cannot remain an idle spectator of this unjust, inhuman and sinful global reality. It calls for the Christian community’s courageous and critical engagement with this global reality. From a Christian theological perspective, it is not only an economic issue but a moral issue, since it touches the meaning of human dignity, human existence, and social justice. Some of the most disastrous moral consequences of globalization are: the materialization of human dignity by reducing the human person to the homo economicus, commodification of human labor, and new and deeper forms of poverty, marginalization, oppression, and inequality leading to the neglect and forgetfulness of the poor. These are directly contrary to Kingdom values. There is a clear disconnect between the Kingdom vision and the neo-liberal vision of human life and of human society. Her commitment to the
Kingdom mission of universal love and justice demands that she denounces and counters all evil forces in society that are opposed to Kingdom values.4
Hence I argue that the current globalization should be evaluated within a moral framework. The Church must go to the depths of this complex reality and grasp the guiding
motives of neo-liberal globalization, the end it seeks, the means it uses to achieve the end,
and name its evil consequences for the vast majority of people, especially unskilled casual workers and marginal farmers in developing countries. The Church demands that human
persons and their relationship with each other must be the central focus of any economic development. The Church condemns an economic model as unjust and immoral if it fails to respect the dignity and freedom of each and every human person and if it fails to uphold the value of human interconnectedness. Therefore, as the U. S. Catholic Bishops recognize in
4 Neil J. Ormerod and Shane Clifton, Globalization and the Mission of the Church: Ecclesiological Investigations (New York: T&T Clark, 2009), 11. their Pastoral Letter Economic Justice for All, “Our faith calls us to measure this economy,
not only by what it produces, but also by how it touches human life and whether it protects or
undermines the dignity of the human person.”5
The Catholic community is not alone in its critical approach to globalization and in demanding its transformation and humanization. Several non-governmental and civil-society organizations, social activists, and the grassroots broad-based social movements around the world are challenging the claim of ardent adherents of neo-liberalism that there is no alternative to globalization. There is a growing awareness that it is not only possible but
absolutely necessary to alter, monitor, and humanize the present globalization. These
movements are in agreement that neo-liberal globalization is leading our world into human
and ecological disaster. They are working towards alternative approaches to make it more just
and human so that it ensures fairness and justice, respect for human dignity and rights,
environmental sustainability and the integral well-being of all people.
The direction of this study is not to develop or propose an alternative economic model
or a theory based on Catholic social principles. The focus is to identify and probe the deeper
questions about human dignity and human relationships that neo-liberal globalism has raised
today. It assumes that human welfare is equivalent to material welfare. It attributes
instrumental value to other human beings and nature rather than intrinsic value. Some
pertinent questions that I address in this study are: how should the Church understand her
faith that does justice? How should she conceive her mission of preaching and building God’s
Kingdom? Does the Church have anything specific to offer to the key project of making this
globalization more just, inclusive of human growth for all people, and of promoting
solidarity? How does the Church refine and implement her ideal moral vision and ethical
social principles into concrete actions to humanize a complex reality?
5 U.S. Catholic Bishops, “Economic Justice for All,” no. 1 in Catholic Social Thought: The Documentary Heritage, ed. David J. O’Brien and Thomas A. Shannon (Maryknoll, New York: Orbis Books, 1992), 572. 5
This study is an attempt to articulate the Church’s moral vision and her mission priorities -- based on the Catholic social principles of human dignity, the universal purpose of created goods, the common good, solidarity, the preferential option for the poor and integral development – and the imperative of applying them to the realm of actual practices. I explore some of the ways that the Church in India can implement Catholic social principles in concrete actions. Based on the teachings of the Federation of Asian Bishops Conferences, the
Catholic Bishops Conference of India and some prominent Asian theologians, I contend that dialogue with other faith traditions, cultures and the poor must be an essential part of her evangelical mission. I argue that the Church in India should avoid the presumption that she already possesses a vision of the common good adequate to the Indian society. While remaining committed to gospel values, the Church must be an open-minded listening and learning.
In particular, I recommend that the Church in India should develop a greater openness to new insights by developing a strong solidarity and mutual collaboration with the poor and civil-society organizations (CSOs) through creative dialogical actions, along with intellectual solidarity with other religious traditions and cultures, in promoting a globalization that prioritizes basic human dignity, well-being and participation in the common good of all people, especially the marginal farmers and casual daily workers. I propose that the Church in
India must work to transform the current unjust structures from the bottom up by opting to be for and with the poor, empowering them, mobilizing them and recognizing them as authentic agents of change.
The underlying assumption of this thesis is that the process of humanizing the current globalization cannot be accomplished in an ethical vacuum. It is necessary that globalization with a human face be founded on a moral vision and on some ethical values and priorities -- such as respect for human dignity and human rights, respect for cultural, socio-political diversity of expressions and opinions, solidarity of humanity to address global inequalities,
and respect for ecology.6 The Church, with her Biblical and rich moral traditions, has the
potential to provide an integral moral vision and human ethical values to guide the process of
building an authentic human globalization; a globalization that works for the global common
good, especially for the poor to improve their well-being.
Methodology
In order to contribute theologically to the process of humanizing the current
globalization, the Church first of all should have a firm grasp of the reality. As the Second
Vatican Council proposes, one has to scrutinize the signs of the times and interpret them in
the light of the Gospel (Gaudium et spes, 4). A theological interpretation of a reality and a
moral vision of society must be mediated by a mutual combination of careful and critical
analysis of a reality and theological reflections. From a Christian theological perspective, an
adequate understanding of reality must necessarily include the poor; in fact it should begin
from their stories and experiences.7
The method that I follow in this study is a dynamic integration of social analysis,
Christian scripture, Catholic traditions (particularly Catholic social teaching) and their
interpretations by some contemporary moral theologians. I use the pastoral circle
methodology, developed by Joe Holland and Peter Henriot, which includes: experience,
social analysis, theological reflection and pastoral response. This study stems from my
personal encounters with marginal families in India, whose breadwinners committed suicide because they were burdened with huge debts as a result of biotech farming and cash crops swayed by false promises by international agribusiness firms. Basing on my concrete experiences, narratives of the poor people and reading of the relevant literature, I critically
6 World Commission on the Social Dimension of Globalization, A Fair Globalization, 7-8. 7 Daniel G. Groody, Globalization, Spirituality, and Justice: Navigating the Path to Peace (Maryknoll, New York: Orbis Books, 2008), 25-26. 7 analyze the phenomenon of neo-liberal economic globalization from the victims’ point of view. I argue, based on a Christian understanding of the sacredness and social nature of the human person and the Kingdom values, that theologically the current globalization constitutes a social sin and therefore requires a conversion. I conclude this thesis by proposing some appropriate pastoral responses in the context of India.
Overview
In the first chapter I critically analyze neo-liberal globalization -- its meaning, basic
ideology, guiding principles, primary agents and its impact on the poor. Though the concept of globalization is complex and multidimensional, with inter-related dimensions of the social, political, technological, cultural, and economic, in this study I nevertheless focus my analysis only on economic globalization.8 I argue that the problem is not with economic globalization
per se, but rather with its propagation and imposition of the neo-liberal economic ideology --
the Washington Consensus9 -- and policies. Neo-liberal ideology advocates that competition
and profit maximization are absolute values and that capitalism is indispensable for the
development and growth of humankind. Hence I highlight the plight of the unskilled workers
and marginal farmers affected by the utilitarian logic of neo-liberal globalization.
I agree with defenders and cheerleaders of neoliberal globalization -- Jagdish
Bhagwati, Thomas L. Friedman, Michael Novak, Surjit Bhalla, and others -- that globalization has significant potential and capacity to affect our world positively. It can open
tremendous opportunities and initiatives to countries and individuals to improve their living standards if it is managed well. When markets are balanced properly with appropriate developments in socio-political and human capabilities, they can enrich and enhance
8 Economic globalization constitutes “integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology.” Jagdish Bhagwati, In Defense of Globalization (New York: Oxford University Press, 2004), 3. 9 It promotes privatization and liberalization of labor laws, trade, and foreign investment with the support of transnational corporations and business institutions with the goal of rocketing profits of shareholders. individual creativity and efficiency. I do see it as a sole cause for all the misery, injustices,
suffering, poverty and marginalization that exist in the world today.
However, I argue that benefits of current globalization are not equally distributed,
either within or between countries. It is far short of realizing its potential and its promise that
the liberalization of the economy will improve the living standards of all peoples. It facilitates the centralization of economic power on the part of a few multinational corporations that have become powerful empires capable of controlling governments, people’s attitudes, values, desires and extracting resources from them. Viewed from the eyes of the world’s majority of poor, especially unskilled workers and small-scale farmers in India, it has not improved their well-being and their holistic growth. Rather it has widened the gap between the rich and the poor.10 The outcome of the current globalization is that it has intensified the inequalities in our world, though it may not constitute the original source of social inequity.
We live in a world where at one extreme we have more than fourteen million children dying of hunger and curable sickness every year and more than 19 per cent of people are struggling
to survive on one dollar per day, while at the other extreme merely 2 per cent of the world’s
adults hold half of the world’s wealth and live a life of greatly superfluous wealth.11
In chapter two I discuss a general awakening of public consciousness to the dangers
of corporate monopoly and an unregulated and uncontrolled market economy. There is a
growing global solidarity among various civil-society organizations, human rights’ activists
and grassroots movements. Though these organizations display many differences, they all
agree that globalization is not a fixed creation of nature, but rather a historic creation of
human persons. Therefore they demand a transformation of the current globalization and the
development of an alternative global economic system that is grounded on values of justice,
democracy, and sustainability. Most of these organizations are not rejecting outwardly the
10 World Commission on the Social Dimension of Globalization, A Fair Globalization, 3. 11 Groody, Globalization, Spirituality, and Justice, 3-4. 9 necessity or wisdom of global trade and investment. Rather, they are putting forward alternative proposals with different visions, priorities, and values to build healthy communities, dignified work, sustainable development and human solidarity.12
These social movements emphasize that authentic development is not only about
rapid growth of the GDP of a country, but also about improving personal, social and
community dimensions of human life. It involves respect for human dignity, opportunities for
fundamental human freedoms, and protection of basic human rights of all people. Hence
these movements recommend several alternatives to the current globalization. Their call is to
focus more on the social and humanitarian implications of business and to find a good
balance between the claims of capital-driven globalization and people-oriented globalization.
In this chapter I discuss two alternatives: the bottom-up globalization and the comprehensive
developmental model proposed by Joseph Stiglitz and Amartya Sen.
The third chapter is a theological reading of globalization, predominantly from
Catholic social principles. In this chapter I argue that globalization is not only an economic
reality but also a moral issue -- as Pope Benedict XVI reminds us in his encyclical Caritas in
Veritate, “locating resources, financing, production, consumption, and all the other phases in
the economic cycle inevitably have moral implications. Thus every economic decision has a
moral consequence.”13 The current globalization affects not only production and distribution
of commodities and services, but also human identity, dignity and human values and virtues.
The global market ideology uses strategies to manipulate human desires, emotions, fears, and
imaginations. The human person’s identity and meaning of life are determined by and made
dependent upon the type of work one does and the amount of things one possesses. Thus it
has commodified the human person and depersonalized the individual so that the value and
12 John Cavanagh and Jerry Mander, eds., Alternatives to Economic Globalization: A Better World is Possible, 2d ed.(San Francisco: Berrett-Koehler Publishers, 2004), 5. 13 Pope Benedict XVI, Caritas in Veritate (Charity in Truth), no. 37 (San Francisco: Ignatius Press, 2009), 73. worth of a person is determined solely by his or her ability to produce more and consume more. In a way the human person has become a faceless cog in a global mega-machine.14
I also discuss how and in what way the Church, as a community of believers in Christ and co-workers with God in God’s Kingdom mission on earth,15 can face the challenges of globalization and work to promote human dignity, justice, and holistic human well-being. I argue that the Church, as a prophetic sign and servant of God’s Kingdom mission, should commit herself to economic, social, cultural and political transformation along with her
religious and spiritual ministries. Her holistic and integrated vision of mission should seek to
transform the whole person and all people. I argue that Catholic theological anthropology, the
Chrch’s virtue of solidarity, special love for the poor and the marginalized, and her vision of
integral development provide a moral vision, hope and directives to develop an economic
system that is more just, inclusive, responsible, people-oriented and fair. I argue that the
Church’s vision of authentic human development, which includes more than mere economic
growth, provides a strong rebuke to the current dominant notion of development and a
contrasting path towards sustainable and communitarian development.
The final chapter focuses on concrete and creative responses of the Church in India to
the process of humanizing globalization. I explore some of the ways that the Church in India
can put into practice her moral vision and the transformative power of her social ethical
principles. I recommend that, in the context of pluralism, the Church in India should become
truly a local Church and a dialogical Church by critically collaborating with people of good
14 Thomas Walker, “Who is My Neighbor? An Invitation to See the World with Different Eyes,” in Global Neighbors: Christian Faith and Moral Obligation in Today’s Economy, ed. Douglas A. Hicks and Mark Valeri (Grand Rapids, Michigan/Cambridge, U.K.: William B. Eerdmans Publishing Company, 2008), 3-4. 15 Though human projects and works of justice are not identical with the Kingdom of God, they have a significant part in creating the conditions to bring about God’s Kingdom on this earth. A worldly community of freedom and justice is seen as a fitting reflection of the Kingdom of God. The fullness of the Kingdom is an eschatological reality that surpasses and transcends all the human goods that can be achieved in this historical world. God is the ultimate source and author of the Kingdom and only God can bring about the Kingdom. No amount of human action is going to bring about the Kingdom. Judith A. Merkle, From the Heart of the Church: The Catholic Social Tradition (Collegeville, Minnesota: Liturgical Press, 2004), 55-57; David Hollenbach, The Common Good and Christian Ethics (Cambridge, U.K./ New York: Cambridge University Press, 2002), 134-35. 11 will at the grassroots and with civil-society organizations at local, national and international levels. I also argue that in the context of growing marginalization of the poor her involvement should be prophetic actions of social justice, which transcend traditional works of charity and benevolence. This demands that the Church in India becomes a Church of the poor and a
Church of India by incarnating herself into the reality of poverty and cultures of India. This implies that she learns new mission strategies and priorities through critical dialogical actions and networking with grassroots organizations and people of goodwill across the boundaries of religious and cultural traditions that are committed to counteract unjust structural forces and to promote social justice, peace, freedom and well-being of all people. One of the concrete implications of this is that the Church is should be more humble and open to become a more listening, learning, interacting, and cooperative Church.
Chapter One
ECONOMIC GLOBALIZATION: ITS MEANING, IDEOLOGY AND CONSEQUENCES FOR THE POOR
Introduction
The term globalization is a global buzz word today. Our world is under the sway of
globalization. Every business person, politician, academician, economist, social activist, and
ordinary peasant refers, talks, and frequently discusses about it. Furthermore, it is more than
a prevalent concept, but truly one of the most controversial issues today. It is drastically
affecting and changing the social structures, cultures, economies, ideas, value systems, and
politics around the world. It produces both losers and winners. Thus, it occupies an important
place in the research and writings of many sociologists, anthropologists, economists,
theologians, environmentalists, feminists and other social scientists. The purpose of this study
is not to resolve the debate about its meaning and effects but, rather to identify its basic
ideology and its impact on the poor and marginalized workers.
Globalization is a complex and multidimensional concept. It continues to be a
slippery term that has no one universally accepted and agreed upon definition. Various scholars, politicians, economists, sociologists and thinkers differ on the meaning, its origin, its direction, its impact on the poor and on local culture. While discussing globalization they might appear to be talking about the same subject, they may end up talking past one another.
The geographical, cultural, political, economic, historical and social realities play an important role in determining how a person understands it. Normally it is described as “the increasing scale, extent, variety, speed, and magnitude of international cross-border, social, economic, military, political, and cultural interrelations.”16 In general it can be
16 Howard J. Wiarda, “Introduction: Globalization in Its Universal and Regional Dimensions,” in Globalization: Universal Trends, Regional Implications (Boston: Northeastern University Press, 2007), 3.
13 conceptualized as a “multidimensional concept with great potential for sharing information and knowledge and for building solidarity and community at all levels of society.”17
In this chapter, I limit my analysis only to economic globalization, which implies the openness of markets, interpenetration of capital across borders, and freer access to a global pool of workers. It is driven and sustained by neo-liberal Capitalism,18 which espouses the values of free markets, privatization and individualism and antipathy toward state control of the markets.19 I take this limited and inadequate approach in order to focus my analysis, although I am aware that one cannot arbitrarily separate the economic sphere from its cultural, political and social dimensions as all of them are interwoven with each other. Some important questions that I address are: Is globalization a gift or a disaster; a curse or a blessing? Has it contributed to the reduction of global poverty or has it deepened and extended it? Is it a solution to global inequality and oppression or a cause for further expansion of it? Should the poor nations embrace globalization to end their poverty or should they guard against globalization? Is globalization in the long run sustainable development?
These and other similar questions occupy this chapter’s concern with globalization.
Globalization is all around us. It is woven into our culture and lifestyles. Few people
17 William F. Ryan, “Personal Comments, Reflections, and Hopes,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 249. 18 Economic globalization constitutes “integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and humanity generally, and flows of technology.” Jagdish Bhagwati, In Defense of Globalization (New York: Oxford University Press, 2004), 3. The neoliberal image of globalization is founded on the Adam Smith’s idea of labor specialization and the exchange of surplus output as a source for economic growth and David Ricardo’s theory of comparative advantage. It is an economic order that is driven by the belief that unfettered and universalized markets will generate an international division of labor, production and distribution. Free markets, science, and technology are expected to provide benefits to all people as producers and consumers. It affirms that specialization, innovation, trade and competition generate development and growth. Eva Nieuwenhuys and Foop de Kort, “The Challenges of Social Sustainable Globalization,” in Neo-Liberal Globalism and Social Sustainable Globalization, ed. Eva Nieuwenhuys (Leiden/Boston: Brill Academic Publishers, 2006), 1. 19 Michael Wallace and David Brady, “Globalization or Spatialization?: The Worldwide Spatial Restructuring of the Labor Process,” in Contemporary Capitalism and Its Crises: Social Structure of Accumulation Theory for the 21st Century, ed. Terrence McDonough, Michael Reich, and David M. Kotz (Cambridge/New York/ Melbourne/Madrid/Cape Town/Singapore/Sao Paulo/Delhi/Dubai/Tokyo: Cambridge University Press, 2010), 123. are willing to surrender benefits that they receive from globalization. We cannot completely
isolate ourselves from it. It has two faces: it contributes to economic productivity and growth,
but its benefits are not equally distributed.20 Hence the main question is not whether we want
globalization or not, but which of its agencies, institutions, policies, ideology, and structures
we denounce and want to change.21 In agreement with Joseph Stiglitz, I propose that the main
concern in the debate about globalization should not be whether one is “anti-” or “pro-”
globalization, but rather how to humanize and transform some of its current trends that are
inhuman and oppressive to the majority of poor people. The goal ought to be to make it more
fair and just for all people, especially for unskilled workers and small farmers. Though we
cannot overcome all problems of globalization it is possible to reform the current
globalization and make it more just and fair. Moreover, most of the problems within current
patterns of globalization are due to poor management with bad policies.22 The goal of
engaging in the study of globalization should be to realize the dreams of the Millennium
Development Goals set by the UN in 2000: to eradicate poverty, combat diseases and child
mortality, achieve primary education for all children, ensure environmental sustainability and
promote gender equality by 2015.23
I assert that globalization is neither a limitless source of benefit to all humanity nor is
it responsible for all the misery and deprivation in the world. It has the potential and the
capacity to affect positively the economic prosperity of our world if its policies are reformed
and its values are humanized. It has helped some countries reach unprecedented rates of
growth. For example, countries of East Asia who have embraced globalization on their own
20 Lee A. Tavis, “The Problem of Wealth Distribution in the Global Apparel Industry: Locating Responsibilities in the Supply Chain,” in Rediscovering Abundance: Interdisciplinary Essays on Wealth, Income, and Their Distribution in the Catholic Social Tradition, ed. Helen Alford, Charles M.A. Clark, S.A. Cortright, and Michael J. Naughton (Notre Dame: University of Notre Dame Press, 2006), 329. 21 Howard J. Wiarda, “Has the ‘End of History’ Arrived?: Globalization’s Proponents and Opponents,” in Globalization: Universal Trends, Regional Implications (Boston: Northeastern University Press, 2007), 61. 22 Joseph E. Stiglitz, Making Globalization Work (New York: W.W. Norton & Company, Inc., 2007), 22-23. 23 United Nations Development Program, The Millennium Development Goals http://www.beta.undp. org/undp /en/home/mdgoverview.html (Accessed June, 13, 2010). 15 terms and at their own pace have benefited from globalization. Wisely managed markets have the power to unleash individual creativity and to allocate goods and services more efficiently than any centrally planned and completely state-controlled economy. The inter-connected and inter-dependent economy on a global scale does bring about tremendous opportunities to humankind.24
However, in this study I analyze globalization from the perspective of the poor. I
concentrate mainly on its negative impact on developing countries. I argue that the current
version of globalization is far short of realizing its potential and its promises. Seen from the
eyes of the world’s poor -- unskilled workers, small-scale farmers in the developing
countries, migrant workers, workers in sweatshops and indigenous people – who form the
majority of the world’s population, globalization has not helped to improve their living
standards. Though poverty, marginalization, oppression, unemployment, and inequality have
always been a part of human history however, in the globalized world these have taken new
forms and acquired new depths.
1. Meaning and Definitions
Globalization, though not a twenty-first century invention, is a premier preoccupation.
Our society is, whether we like it or not, under the power of globalization and we live in the
cultural milieu of privatization, liberalization, free markets, computers, communications
satellites, Internet, speed, robots, consumerism and individualism. We are living in a global
change world that is affected by common economic, political and environmental
developments. We live in a world where people of the globe are increasingly economically,
politically, culturally and environmentally interconnected. These interconnections happen
through the increased flow of goods, capital, people, ideas, symbols, and styles across all
24 Michael Prison, “Introduction: Humanism in Business,” in Humanism in Business, ed. Heiko Spitzeck and Others (New York: Cambridge University Press, 2009), 2. boundaries.25 At the same time we also experience increased competitions, fluctuating
interest rates, speculative capital flows, the introduction of new technologies, the fall of
communism, environmental disasters, growing fundamentalism, and increasing terror threats
and drug abuse.26
Globalization is a complex, ambiguous and contested concept in the arena of public
discourse that carriers different meanings. Though it suggests many things it has no single
agreed upon definition.27 In general it refers to a host of different activities: immigration;
transnational travel; telecommunication; international trade; the movements of jobs to low-
wage countries; transnational investment; the ubiquity of McDonald’s and Coke in every
corner of the world; satellite broadcasts; pop music and Disney products, and multinational
companies. People use terms like ‘action by a distance,’ ‘time-space compression,’
‘accelerating interdependence,’ ‘a shrinking world, and global integration to describe this
phenomenon.28 Hence, in simple terms it refers to “an integration of global networks across
national borders – economic networks, primarily, but also networks of labor, information, and
so on.”29
Various groups view globalization differently. For example, neo-liberal enthusiasts
see it as a condition and a victory of capitalism over socialism. They argue that globalization
benefits everyone and it is irreversible.30 Marxian pessimists see it as a process of long
25 Stanley Eitzen and Maxine Baca Zinn, ed., Globalization: The Transformation of Social Worlds (Australia/Brazil/Canada/Mexico/Spain/Singapore/U.K./U.S.A: Thomson Wadsworth, 2006), 259. 26 Robert K. Schaeffer, Understanding Globalization: The Social Consequences of Political, Economic, and Environmental Change, 2d ed. (Lanham/Boulder/New York/Oxford: Rowman & Littlefield Publishers, 2003), 15. 27 Mark Engler, How to Rule the World: The Coming Battle Over the Global Economy (New York: Nation Books, 2008), 8. 28 David Held and Anthony McGrew, “The Great Globalization Debate: An Introduction,” in The Global Transformations Reader: An Introduction to the Globalization Debate (Oxford: Polity Press, 2000), 3. 29 James K. A. Smith, “Secularity, Globalization, and the Re-enchantment of the World,” in After Modernity? Secularity, Globalization, and the Re-enchantment of the World (Waco, Texas: Baylor University Press, 2008), 4. 30 Neoliberal enthusiast’s dominant argument is that globalization is a way of life and irreversible force. It is an impossible to escape from it and therefore submission to this force is both inevitable and desirable. It holds that globalization of markets and technologies are beyond the realm of politics. The state should adopt correct policies in order to draw on the opportunities that globalization offers. No individual country can afford to opt 17 development of capitalism. They see technology as a tool used by capitalist institutions to maintain and increase profitability. Globalization, they argue, is strengthening the powers of capital and weakening those of the labor movements. The skeptics recognize no usefulness of globalization. They argue that the flow of capital, investment and trade are no longer higher today than they were at the end of 19th century. According to them globalization is nothing
more than right-wing ideology.31 Main reasons for the ambiguity and vagueness in the
meaning of globalization could be the following: First, it is a multidimensional reality with so
many layers. Secondly, it is not experienced in a uniform way all over the world. Rapid
global change has varied consequences on people of different geographical, economic, and
human capability settings. Thirdly, it is not a finished product but a dynamic and uneven
evolutionary process. It is continuously evolving and changing. So, the meaning and
outcomes of globalization change according to a person’s economic status, social location,
and political power in society. Hence experiences of prosperity, opportunities, efficiency,
interconnectedness, inequality, hopelessness, poverty, insecurity, deprivation and exclusion
are all part of current globalization.32
The most prominent image of globalization is economic globalization. The economy
is seen as becoming global in its basic dynamics as market barriers to trade and investment
are dismantled. The global economy is perceived as one that is dominated by uncontrollable
market forces and flows of capital. The transnational corporations are its principal agents and
primary beneficiaries. These transnational corporations owe allegiance to no nation-state and
relocate to wherever the global market advantage dictates.33
The current economic globalization is a nurtured mainly by two factors: “the shift
out of globalization if it wants to develop. Ray Kiely, The Clash of Globalizations: Neo-Liberalism, the Third Way and Anti-Globalization (Leiden/ Boston: Brill academic Publishers, 2005), 83-84. 31 Byvic George and Robert M. Page, ed. Global Social Problems (Cambridge, U.K.: Polity Press, 2004), 10-13. 32 Eitzen and Maxine Zinn, “Globalization: An Introduction,” 1-2. 33 Paul Hirst and Grahame Thompson, “Globalization – A Necessary Myth?,” in The Global Transformations Reader: An Introduction to the Globalization Debate, 2d edition, ed. David Held and Anthony McGrew (Cambridge, U.K.: Polity Press, 2003), 98. from government-led to market-led development; and technological advancement that enhance production and marketing coordination on a global scale.”34 Transnational
corporations (TNCs), private financial institutions, private service industries, and
international institutions and agencies that TNCs have created, such as the Organization for
Economic Co-operation and Development, International Monetary Federation, the World
Bank and the World trade Organization, are the main actors and agents of globalization.35
The innovations in ‘computerization, miniaturization, and telecommunication and digitization technology’ have made it possible for hundreds of millions of people around the world to get connected and exchange information, knowledge, etc., in ways and to a degree that was never witnessed before.36 Improvements in the technology of transportation and communications
have reduced the cost of transporting goods, services and factors of production. Improved
communication links have led to the emergence of international production networks by
facilitating coordination of geographically dispersed production processes.37 Business firms
organize and manage the capital flow and other economic activities -- production,
management, and distribution -- through networks.38
Neoliberalism is the dominant and driving ideology of globalization. It is guided by the promise and strong presupposition that free markets are the principal if not exclusive engine of economic and social development. Any intrusion by the government into dynamics of the market is condemned as invalid and a deterrent to social progress. “The driving idea behind globalization is free-market capitalism—the more you let market forces rule and the more you open your economy to free trade and competition, the more efficient and
34 Tavis, “The Problem of Wealth Distribution in the Global Apparel Industry,” 328. 35 Stanley Hoffmann, “Cash of Globalizations,” in ibid., 107-08; Rebecca Todd Peters, In Search of the Good Life: The Ethics of Globalization (New York/ London: The Continuum International Publishing Group, 2004), 41. 36 Thomas L. Friedman, The Lexus and the Olive Tree (New York: Anchor, 2000), 50. 37 Ashish K. Vaiya, ed., Globalization: Encyclopedia of Trade, Labor, and Politics, Vol. 1(California/Colorado/ Oxford, England: ABC-CLIO, 2006), 306-07. 38 Manuel Castells, “The Network Society,” in The Global Transformations Reader: An Introduction to the Globalization Debate, ed. David Held and Anthony McGrew (Oxford: Polity Press, 2000), 76. 19 flourishing your economy will be.”39 It works on the assumption that a perfect global market exists and all nations are on a level playing field.
In summary we can conclude that currently there is no single universally accepted definition of globalization. However, there are some commonly agreed upon features that indicate that our world economy is heading toward a global market. They include: free movement of capital, goods and ideas between countries, opening up economies to global trade and foreign investment by developing countries, billion dollars-worth of transactions in seconds in the electronic circuits, expansion of international trade, reduction of nation-states’
power in shaping national policies and economic plans, social relations are acquiring
relatively distance-less and border-less qualities, and shifting of migration patterns from
South to North.40
1.2. Some Definitions
There are a range of definitions of globalization. Here I will mention some of them,
which are primarily related to economic globalization.
The most common understanding of globalization, in terms of economic and
technological structure, is “modern capitalism and its relationship to the process of the
internationalization and liberalization of trade and capital, which is empowered by
technological developments in communication, travel and commerce.”41
David Held and others define globalization much more than economic relations, but a
pattern of social relations and activities stretching beyond national borders. It represents not
just flow of trade, capital and people across the globe but the growing extensity, intensity and
velocity of spatio-temporal organization of human activity across regions and continents.
39 Friedman, The Lexus and the Olive Tree, 9. 40 Wayne Hudson, “What is Globalization?” in Managing the Global: Globalization, Employment and Quality of Life, ed. Donald Lamberton (London/New York: I.B. Tauris Publishers, 2002), 100. 41 Neil J. Ormerod, and Shane Clifton, Globalization and the Mission of the Church: Ecclesiological Investigations (New York: T&T Clark, 2009), 4. According to them globalization is “a process (or set of processes) which embodies a
transformation in the spatial organization of social relations and transactions – assessed in
terms of their extensity, intensity, velocity and impact – generating transcontinental or
interregional flows and networks of activity, interaction, and the exercise of power.”42 Thus
the events, decisions, developments and activities in a distant region of the world have
significant impacts on individuals and communities throughout the globe. Globalization
defined in this way helps to distinguish it from more restricted social developments such as
localization, nationalization, regionalization and internationalization.43
The IMF understands globalization as extension of markets beyond national borders.
It articulates, “Economic ‘globalization’ is a historical process, the result of human
innovation and technological progress. It refers to the increasing integration of economies
around the world, particularly through the movement of goods, services, and capital across
borders. The term sometimes also refers to the movement of people (labor) and knowledge
44 (technology) across international borders.”
Jan Aart Scholte defines the term globalization as “deterritorialization” or
“supraterritorial” relations between people. He argues that in order to attribute some special
meaning to the idea of globalization it has to be more than a synonym to already existing
terms like internationalization, liberalization, universalization or westernization. If the term globalization has become so common, there has to be something new and distinctive beyond what these older terms explain. So he has coined a new word, “deterritorialization,” to explain globalization. Although geographical territory still matters in the globalized world, it no longer constitutes the whole of our notion of geography. He argues that in a globalized world social space is no longer wholly mapped in terms of geographical territories. The social
42 David Held and others, “Rethinking Globalization” in The Global Transformations Reader, 2d edition, 68. 43 Ibid. 44 IMF Staff, Globalization: A Brief Overview, http://www.imf.org/external/np/exr/ib/2008/053008.htm (accessed November 10, 2010). 21 connection between people is detached from a territorial logic as globalization marks a distinct kind of space-time compression. Global transactions transcend territorial space substantially as global conditions such as Internet connections, global markets, global production and global money through credit cards can surface at any place on the earth that is equipped to host them.45 Along similar lines, Ulrich Beck also observes that the common dimension of globalization in its various forms is that “borders become markedly less relevant to everyday behavior in the various dimensions of economics, information, ecology, technology, cross-cultural conflict and civil society.” 46 It calls into question the very idea
that we live in societies that are at base territorial units separated from one another.
Most commonly agreed upon understandings of globalization can be grouped under
five headings:
First, perhaps the most common notion of globalization is that it is synonymous with
internationalization. Those who hold this position understand globalization as an extension of
cross border relations between countries. It designates a growth of international exchange and
interdependence.
Second, globalization is liberalization. Globalization means a process of removing
government-imposed restrictions on the movements of capital and trade between countries. It
is creating a ‘borderless’ global economy.
Third position is that globalization is universalization. It refers to the process of
spreading various commodities and experiences to the all corners of the earth.
Fourth group equates globalization with Westernization/ Americanization or
modernization. Here globalization is seen as a mechanism to spread the ideology and values
of capitalism, which include: materialism, individualism, rationalism, profit and
45 Jan Aart Scholte, “What is ‘Global’ about Globalization?,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 85. 46 Ulrich Beck, What is Globalization? translated by Patrick Camiller (Cambridge, U.K.: Polity Press, 2000), 20-21. consumerism. Globalization is seen as hegemony of Western culture and the destruction of
local cultures. Hence, some have described globalization as the McDonaldization of the
world. Amartya Sen says that this tendency to equate globalization with Westernization is
held both by pro-globalists and its opponents. The proponents see globalization as a
marvelous contribution of Western civilization to the world and the critics equate
globalization with Western imperialism and dominance. Sen, however, contests this idea. He
says that globalization has contributed to the progress of the world over thousands of years.
He asserts that the agents of globalization like science, mathematics, and technology were
often located far from the West. He concludes that to see globalization as merely Western and
imperialism “would be a serious and costly error.”47
Fifth, globalization is deterritorialization. Those who identify globalization with
deterritorialization recognize globalization as a process which entails a reconfiguration of
geography. They argue that in a globalized world social space is no longer wholly mapped in
terms of geographical territories.48 It refers to a far-reaching change in the nature of social
space and time wherein space is substantially transcended. However, it does not mean the end
of territoriality. There are still many situations where social life remains highly territorial.49
In the midst of diverse and unreconciling differences about the meaning and definition of
globalization it may be useful to specify some of the common features of globalization and
then attempt to construct a universally agreeable definition. The following are some of the
main trends of current globalization:
i. The current globalization is not a myth but one of the important defining trends of our
time. It has a massive transforming force that can affect different aspects of our
society.
47 Amartya Sen, “How to Judge Globalism,” in The Globalization Reader, 2d edition, ed. Frank J. Lechner and John Boli (Oxford, U.K.: Blackwell Publishing, 2004), 16-17. 48 Jan Aart Scholte, Globalization a Critical Introduction (New York: St. Martin’s Press, 2000), 15-16. 49 Ibid., 48-52. 23
ii. Current globalization is not entirely a new creation of this century. Trade, capital
flows, and immigration of people had flourished in the 19th century, before World
War I. However, the current trend is different and wider. Over the last 20-30 years
with the development of technology global economic interaction has skyrocketed. The
information technologies “allow companies to locate different parts of their
production, research and marketing in different countries.”50 The innovations in
communication technology have helped to create webs of control and networks of the
operation of production and distribution throughout the world. These networks and
webs have become the ‘hubs’ of power in the hands of MNCs. Multination business
firms manage their capital flow and other economic activities - production,
management, and distribution - through these networks.51
iii. The current globalization has changed international economic relations and systems.
In the past it was only rich countries that were involved in the international trade and
most of the poor countries were either closed economies or were excluded from
participation in international trade. Conversely, since the 1980s many developing
countries like China, Brazil, Mexico, India, Thailand, Vietnam, Argentina, and others
have opened up their economies to global trade.52
iv. Globalization is a process that is uneven and dynamic. It has more fully developed in
some parts of the world while others are left out as there are still millions of people
without electricity, computers and television sets.
v. It is a multifaceted process covering all aspects of life – economic, political, cultural
and social.
vi. It affects not only the production and distribution of goods and services but also
50 Friedman, The Lexus and the Olive Tree, 50. 51 Manuel Castells, “The Network Society,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 76. 52 Michbael M. Weinstein, “Introduction,” in Globalization: What’s New? ed. Michael M. Weinstein (New York: Columbia University Press, 2005), 2. human behavior and value systems – it influences the behavior of people in relation to
work, marriage, family, meaning of life, success and failures in life and human
relationships.
vii. It is not governed by ideologies and has coexisted with various ideologies over the
centuries. For example, in the second half of the 20th century it was accompanied by a
Keynesian pro-universal welfare-state ideology and then now a subsequent neo-liberal
ideology. viii. It has somewhat undermined the powers of the nation-state but not superseded them.
The nation-state retains a great deal of its powers and shapes the pressures of
globalization.
ix. Capital has gained more power over labor. The speed, the volume and complexity of
financial flows have increased in recent years due to technological inventions as well
as government policies. It has increased government aid from advanced countries to
the industrially developing countries.53
1.3. The Historical Background
Scholars differ about the origin and historical development of current globalization.
Some scholars argue that the current globalization is a new development dating back only to
mid-1980s or early 1990s. Others argue that sixteenth-century Europe is the original source of globalization. They claim that economically and culturally the modern world system already existed nearly five centuries ago.54 In recent years many scholars agree that the
current globalization is not a new innovation of the twentieth century. Rather, it closely
resembles a similar period of globalization at the end of nineteenth and the beginning of the
twentieth century. However, they also insist that the current globalization has some unique
aspects that are different from the earlier period. The early twentieth- century globalization
53 George and Robert M. Page, Global Social Problems, 13-16. 54 David Held, “The Great Globalization Debate,” in The Global Transformations Reader, 1-2. 25 occurred when many countries were under colonial power and when there was an intense inter-imperial rivalry. The current globalization occurs when the world is decolonized and there is an increasing cooperation between rich countries. The current era also differs from the Cold War period both in terms of its economic openness and political inclusion.55
Some scholars speak of three waves of globalization: the first wave from 1870 to
1914; the second from 1945 to 1980; and the third, the current wave starting in 1980.
Though, before the 1870s the flow of trade, capital and migration of people between countries was present, yet it was not sufficiently large enough to call globalization. The falling transport costs and reductions in tariff barriers in the 1870s gave impetus to increased trade of goods and to an enhanced flow of workers from Europe to North America and
Australia. In the South too, workers from China and India began to migrate in large numbers to less populated countries like Sri Lanka, Thailand, Burma, and the Philippines. Mass migration and export of land-intensive primary commodities from developing countries were the dominant features of the first wave of globalization.56
However, the First World War, the Great Depression, and the Second World War
impelled many governments to step back from global integration. Many countries embraced
protectionism and nationalism by concentrating more on their domestic markets. The years
after World War II witnessed the second wave of globalization, beginning in 1950 and going
up to the 1980s. During post war era international capitalism was regulated by the Bretton
Woods agreement that was signed by the developed capitalist countries in 1944. During this
second wave of globalization rich developed countries, mainly Europe, North America and
Japan, began to integrate through a series of multilateral trade liberalizations, like the General
Agreement on Tariffs and Trade (GATT). These developed countries expanded trade of
manufactured goods between themselves by lifting trade barriers. The second wave of
55 Schaeffer, Understanding Globalization, 9-10. 56 A World Bank Policy Research Report, Globalization, Growth, and Poverty: Building an Inclusive World Economy (New York: A Co publication of the World Bank and Oxford University Press, 2002), 24-25. globalization is called the “golden age” of globalization. It was indeed a golden age for many
developed countries, as it increased great economic prosperity and reduced inequality within
these countries.57 But this was not the case for developing countries. First of all, many of the
developing countries were left out of this process by placing many barriers on the export of agricultural commodities from these countries to developed countries. Secondly, for many developing countries it had little effect reducing poverty or inequality.
The third and current wave of globalization began in the 1980s. Many scholars describe it as distinctive because a large number of developing countries are involved in this process.58 The main difference between the current wave of globalization and earlier ones is
that it is no longer restricted to a few developed countries. Led by China, many developing
countries have plunged into this game. Bhagwati holds that the main difference between
earlier globalization and that of today is in the degree to which governments have intervened
to reduce obstacles to the flow of trade and investments worldwide. He writes, “The story of
globalization must be written in two inks: one colored by technical change and the other by
state action.”59 Others suggest that the biggest feature of current globalization is in the intensity and magnitude of the finance and capital flow between countries. Trillions of dollars is transferred from one side of the world to another each day.
David Held and others summarize the difference well when they state that “the framework of the extensity of global networks; the intensity of global interconnectedness; the
velocity of global flows; and the impact propensity of global interconnectedness provides
insights into changing historical forms of globalization in different epochs.”60 The rapid expansion of the current globalization can be explained mainly due to two factors: technological innovation and the spread of transnational liberalism among countries around
57 Kiely, The Clash of Globalizations, 51. 58 Ibid., 24-33. 59 Bhagwati, In Defense of Globalization, 11. 60 Held and Others, “Rethinking Globalization,” 69. 27 the world.61
One has to be conscious of the danger and the tendency to exaggerate the spread and
the benefits of current globalization. TNCs employ only a tiny proportion of the world
workforce. Global markets are not modeled to fit in for all countries and people. Many people
and countries have been left out. It has involved propertied and professional classes more
than poorer and less skilled circles. It is heavily concentrated in rich developed countries in
the North than in sub-Saharan African countries.62 It is true that the flows of goods, services,
people, and capital have increased in the current global world but they are at the same time
frequently barred or blocked by regulations. So the impact of globalization is strongly shaped
by those with the power to make and enforce the rules of the global economy.63 Moreover,
the intensification of global economic activity and capital flow is uneven, as it is not extended
to all parts of the world at the same level of intensity. For example, foreign direct investment
(FDI) inflow is mainly concentrated in the advanced countries. In the period 1999-2000 80
percent of FDI inflow went to advanced countries and only 18 percent to the developing
countries. FDI to Africa and the Middle East remained at less than 2.5 percent.64
2. Neoliberalism: It’s Governing Ideology
Most scholars today acknowledge that the dominant logic and ideology that governs
current globalization is the logic of free market capitalism,65 which is governed by neo-
61 Richard Grant and Jan Nijman, “Globalization and the Hyperdifferentiation of Space in the Less Developed World,” in Globalization and Its Outcomes, ed. John O’Loughlin, Lynn Staeheli, and Edward Greenberg (New York/London: The Guilford Press, 2004), 48. 62 Scholte, Globalization a Critical Introduction, 87. 63 Ngaire Woods, “Order, Globalization and Inequality in World Politics,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 465. 64 Vaiya, Globalization: Encyclopedia of Trade, 99. 65 It is possible to identify at least four different types of capitalism: entrepreneurial capitalism, state-directed capitalism, large-firm capitalism, and oligarchic capitalism. In entrepreneurial capitalism the small innovative firms play a significant role. In big-firm capitalism the most significant economic activities are carried out by established giant enterprise. In state-directed capitalism governments, through various policies, try to guide the market and economic growth and decide which sector or company should prosper. It is not the same as centrally controlled economies because, unlike centrally planned economies in state-directed capitalism, the state does not own the means of production. Oligarchic capitalism is one in which the bulk of the power and wealth is controlled and dominated by a small group of wealthy individuals and families. Here the main goal is not liberalism.66 Neo-liberalism is also called free market liberalism, classic liberalism, or economic liberalism. More often it is referred to as the Washington Consensus.67 The main elements of the Washington Consensus version of capitalism are: trade liberalization, financial market liberalization, privatization of production, deregulation, elimination of the
economic growth, but rather the enhancement of the economic position of the oligarchic few. William J. Baumol, Robert E. Litan, and Carl J. Schramm, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, (New Haven/London: Yale University Press, 2007), 60-61. 66 Neoliberalism is drawn from theories associated with the Austrian and Chicago schools of economics. It is opposed to Keynesian economics. The World Bank, the IMF, and the U.S. Treasury knit together a collection of neoliberal policies into a one-size-fits-all uniform for development. Engler, How to Rule the World, 10, 12. The term neo-liberalism was first used by a German economist, Alexander Rustow, in the 1920s to describe emerging currents of liberal thought of the time, which were hostile to collectivism and bureaucratic control of markets. The liberal thought sought a more market oriented type of economy as distinct from a state-controlled economy with numerous checks and controls. At its beginning neo-liberalism displayed at least two main strands: laissez-faire and social market. While the laissez-faire ideology proposed that markets should be allowed to function freely with as few impediments and restrictions as possible, on the other hand the social market strand suggested the need for state intervention for the free market to reach its full potential. The state has to be active in creating and sustaining the institutions that make the existence and continuation of free market possible. Though both strands recognized the role of a wise state for the sound functioning of the market, they differed in their judgments regarding the proper degree of involvement. The laissez-faire style restricted the role of the state primarily to remove any obstacles on the way to the free functioning of markets. The social market strand, on the other hand, advocated that the state should intervene to create the right kind of institutional settings within which the markets can function properly and effectively. This state involvement involves structural adjustment, development of social and human capital in developing countries, good governance, welfare safety nets, corporate social responsibility, and even some forms of redistribution. Andrew Gamble, “Two Faces of Neo-liberalism,” in The Neo-Liberal Revolution Forging the Market State, ed. Richard Robison (New York: Palgrave Macmillan, 2006), 21-22. Neoliberal ideology is marked by glorification of individual choice, markets, and private property. It views the state as inherently an enemy of individual freedom and economic efficiency. It promotes extreme individualist conception of society. It was supported by Milton Friedman, Friedrich Hayek, and Ronald Coase. David K. Kotz and Terrence McDonough, “Global Neoliberalism and the Contemporary Social Structure of Accumulation,” in Contemporary Capitalism and Its Crises: Social Structure of Accumulation Theory for the 21st Century (Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, Sao Paulo, Delhi, Dubai, Tokyo: Cambridge University Press, 2010), 94. 67 Joseph Stiglitz explains it as “(A) a consensus forged between the IMF (located on 19th Street), the World Bank (on 18th Street), and the U.S. Treasury (on 15th Street) - on what constituted the set of policies that would best promote development. It emphasized downscaling of government, deregulation, and rapid liberalization and privatization.” It is mainly focused on how to increase GDP and pays a little attention on sustainability, issues of equity, and other aspects of life. It believes in ‘trickle-down’ economics. Stiglitz, Making Globalization Work, 16-17. In 1989 John Williamson asked some economists and policy experts in Washington to propose policies that they think would foster the most rapid economic growth in the world and particularly in Latin America. These economists and experts came out with a list of proposals, and that list has come to be known as the “Washington Consensus”. The list includes: fiscal discipline, broadening of tax bases and reduction of marginal tax rates, liberalization of financial markets, competitive exchange rates, replacement of trade quotas with tariffs67, removal of barriers on market competition, privatization of state-owned enterprises, abolition of barriers on foreign direct investment, strong and effectively enforced property rights. Baumol and others, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, 54-55. The flexible labor market is its main element, which generally means policies to decentralize labor relations and cut protective and pro-collective labor regulations. It argues that there is no need for the public sector to boost public expenditure to absorb the unemployed. Workers and employers should work it out for themselves, through free market transactions. Debdas Banerjee, Globalization, Industrial Restructuring and Labor Standards: Where India Meets the Global (New Delhi/London/Thousand Oaks: SAGE Publications, 2005), 94, 96. 29 barriers to foreign investments, secure property rights, unified and competitive exchange rates, diminished public spending, broadening the tax base, cutting marginal tax rates, and flexible labor markets. There is no place for workers’ rights and workers’ dignity in this market logic approach.68 So, neo-liberal globalization revolves around “opening,
deregulating and privatizing your economy, in order to make it more competitive and
attractive to foreign investment.”69
Neo-liberalism “prescribes that the contemporary growth of global relations should be
approached with laissez-faire market economics through privatization, liberalization, and
deregulation.” 70 It is true that laissez-faire is not the only ideology of neo-liberalism, as it
has other ideologies within it. Nevertheless, its core idea is that of laissez-faire. It promotes
the primacy of the market as the principal, if not exclusive, engine of social development.
Any state intervention and intrusion into the market is regarded as destructive and as a cause
of inefficiency and waste. Deregulation, liberalization, privatization and stabilization are its
bedrock policies.71 Its main driving force is the maximization of profit. Profits, it considers
and proclaims as the absolute value of humankind. It reduces all human goods and all human
meanings to the “modern capitalist financial calculus of the mechanistic cosmology’s
utilitarian ethics.”72
The neoliberal image of globalization is exclusively one of economic order that is
driven by the strong belief in unfettered and universalized markets. Neo-liberal approaches to
68 Banerjee, Globalization, Industrial Restructuring and Labor Standards, 94. 69 Friedman, The Lexus and the Olive Tree, 9. 70 Wil Hout, “European Social Democracy and the Neo-liberal Global Agenda: a Resurgent Influence or Capitulation?” in The Neo-Liberal Revolution Forging the Market State, ed. Richard Robison (New York: Palgrave Macmillan, 2006), 218. 71 Liberalization refers to freeing markets and firms from state regulation. Privatization refers to turning state enterprises over to the private owners and contracting out to private companies those services that had traditionally been directly delivered by the state. Stabilization refers to a shift in monetary policy to focus solely on preventing inflation rather than promoting lower unemployment or economic growth. Kotz and Terrence McDonough, “Global Neoliberalism and the Contemporary Structure of Accumulation,” 94-95. 72 Joe Holland, “Towards a Global Culture of Life: Cultural Challenges to Catholic Social Thought in Postmodern Electronic-Ecological Era,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 119. globalization mean “an integrated global economy that revolves around export-oriented trade,
which is best facilitated by a low-barrier market (deregulation) and a highly competitive
private sector (no government-owned corporations).”73 The neoliberal ideology is built on
convictions that market forces will bring prosperity, liberty, peace and democracy to all humankind. It strongly asserts that left to itself the free market system, if it is allowed to operate freely undisturbed by institutional rigidities and government interferences, would
solve the problems of unemployment, the price level, interest rates, distribution of income,
and other problems through the interaction of supply and demand.74 Thus, Friedman writes,
“the more you let market forces rule and the more you open your economy to free trade and
competition, the more efficient and flourishing your economy will be.”75
Though in general terms neoliberal capitalism is defined as a quantitative expansion
of trade or market exchange, it can also be described “as the generalization of commodity
production.”76 In capitalism goods are produced primarily for competitive markets and not
for direct use of the producer. Capitalism separates labor from the means of production as the
labor has no direct access to the means of production. This in turn results in the
commodification of labor-power.77 The main concern of and preoccupation of a capitalist is
to manage supply of commodities to match the market demand and to maintain profit
levels.78 The logic of capitalism is that “every observable phenomenon should be reduced to
a marketable commodity.”79
Friedman notes that the core guiding principles of neoliberal capital markets are
“creative destruction” and competition. The principle of creative destruction proposes the
73 Peters, In Search of the Good Life, 54. 74 Edward J. Nell, Making Sense of Changing Economy: Technology, Markets and Morals (London/ New York: Routledge, 1996), 23. 75 Friedman, The Lexus and the Olive Tree, 9. 76 Kiely, The Clash of Globalizations, 27 (emphasis original). 77 Ibid., 28. 78 William Greider, One World, Ready or Not: The Manic Logic of Global Capitalism (New York: Simon & Schuster, 1997), 45. 79 Francis Houtart, “Traditional Christian Ethics and the Social Reality: A Critique,” Dialogue 30 (2003): 94. 31 perpetual cycle of destroying the old and less efficient products and services and replacing them with new and more efficient ones. The principle of competition teaches that “only the paranoid, only those who are constantly looking over their shoulders to see who is creating something new that will destroy them and then staying just one step ahead of them, will survive.”80
Though neo-liberalism recognizes the role of the state to facilitate globalization, it
insists that the state powers should be limited chiefly to policing the market and enforcing
laws. The state should not interfere in deciding how the markets will operate. It should allow
individual capitalists to operate with greater freedom. It prescribes the abolition of state-
imposed limitations on the movements of money, trade, services, and capital between countries. It also advocates that the market should decide the prices, wages, and foreign exchange rates. Hence, neoliberals campaign vigorously for a thoroughgoing privatization and rejection of socialist, welfarist or statist forms of economic management. The IMF, the
World Bank, the WTO and the Organization for Economic Cooperation and Development
(OECD), North American Free Trade Agreement (NAFTA) and G8 countries are some the institutions and agents promoting and defending its logic and ideology. The Wall Street
Journal and the Financial Times have been faithful advocates of its policies.81
According to neoliberals global integration is a natural force driven by technological
innovations that advances individual liberty and material progress in the world. The global
community and all political groups ought to accept it and make the best use of this
unalterable situation. Any resistance to this process, they assert, is unnatural, irrational, and
dangerous.82 According to neoliberals the global market system would create an
international division of labor in which all deserving people and countries would benefit as
80 Friedman, The Lexus and the Olive Tree, 9-11. 81 Scholte, Globalization a Critical Introduction, 34-35. 82 Manfred B. Steger, “Introduction: Rethinking the Ideological Dimensions of Globalization,” in Rethinking Globalism (Lanham/Boulder/New York/Toronto/Oxford: Rowman & Littlefield Publishers, 2004), 5-6. producers and consumers of goods. The reason why some countries do not benefit from or
participate in this widespread economic opportunity is either because of their own
unwillingness or because of their inability to compete in the global market as they are still
protected by overweening welfare policies of paternalistic state governments.83
2.1. Neoliberal Capitalism and Globalization
Globalization is neither synonymous with neo-liberal capitalism nor can it be simply
reduced to the ‘logic of capitalism.’ Nevertheless, there is a close relation between neoliberal
capitalism and globalization. In order to understand contemporary globalization, we need to
unpack mutual links and interconnections between globalization and neo-liberal capitalism.
Neoliberal policies of free trade capital movement foster the globalization of trade, of
production and the dominance of capital over labor. The neo-liberalism refers globalization
as “an integrated global economy that revolves around export-oriented trade, which is best
facilitated by a low-barrier market (deregulation) and a highly competitive private sector (no
government-owned corporations).”84 The neo-liberal model of globalization is built on the
premise that the opening up a free market leads to more efficiency and greater economic
progress. It also argues that capitalistic free trade is also beneficial to customers. For, it states
that the competition that globalization generates fosters the markets to provide greater
availability and variety of consumer friendly goods and services to those customers with
purchasing power.85 On the other hand, globalization also fosters the rise of neoliberalism.
Increasing global economic integration gives rise to large corporations, which turn against
state regulations and social welfare programs. They pressure host governments to either
reduce them or abandon them completely.86
83 John W. Murphy, “The Traditional Ontology of Development, History, and Globalization from Below,” in Globalization with a Human Face, Jung Min Choi, John W. Murphy, and Manuel J. Caro (London: Praeger Publishers, 2004), 34. 84 Peters, In Search of the Good Life, 54. 85 Ibid., 55. 86 Kotz and others, “Global Neoliberalism and the Contemporary Structure of Accumulation,” 96. 33
The current version of global neo-liberal capitalism operates in collaboration with three spheres: the economic, the political and the cultural. The economic sector, through the transnational corporations, organizes the production and marketing of commodities and services at a global level. The political sector creates a conducive political environment within which the products and services can be successfully marketed all over the world irrespective of their origins and qualities. The culture-ideology sector, through the culture of consumerism, produces the values and attitudes that are essential to sustain capitalism.87
Neoliberal capitalism in the contemporary globalized world is fundamentally
dominated by transnational corporations (TNCs) which have strikingly increased and intensified their concentration of economic power in the global market. They have accelerated the flow of capital and trade between nations. Their principles are guided by the logic of maximizing the return on capital without regard for labor welfare or attention to the negative political, cultural, environmental and social repercussions and consequences of their policies.
2.2. The Reemergence of Neoliberalism
The neoliberal ideas, pioneered by Adam Smith in the eighteen century, were
pioneered in the twentieth century by philosopher-economist Friedrich von Hayek, his
student Milton Friedman and others. These were made popular by Margaret Thatcher in the
UK and Ronald Reagan in the U.S. through their radical economic policies. These economic
and political programs propagated neoliberal values of free markets, individualism,
consumerism, competitiveness, efficiency, and self-aggrandizement. They presented neo-
liberalism, with its capacity to generate material well-being and to raise productivity, as the
definite solution for all economic, social and political problems in the world.88 The former
87 Leslie Sklair, Globalization Capitalism & Its Alternatives (New York: Oxford University Press, 2002), 85, 114. 88 James H. Mittelman, “Ideologies and the Globalization Agenda,” in Rethinking Globalism, ed. Manfred B. U.S. treasury secretary Lawrence Summers’ words are a clear example for this belief. He
said, “Quite simply, rapid, market-led growth is the most potent weapon against poverty that mankind has ever known.”89
In the early 1970s the world began to witness the end of the much acclaimed ‘Golden
Age’ of capitalism. The world market started to experience an economic recession that was
characterized by lower profits, lower productivity, high inflation and rising unemployment.
The economic crises prompted the developed countries to reassert and reclaim their faith in
neo-liberalism. This resulted in the re-establishment of neo-liberalism in 1980 with its core
principles regarding the dominance of the free market, privatization, limited state intervention, de-regulation and trade liberalization.90 The neo-liberals at this time wanted not
just a reincarnation of laissez-faire ideology but also the extension of market values to every
aspect of human life. It reduced global society to a world-market. They proclaimed that
everyone and everything -- politics, science, culture, and behavior -- should be subordinated
to the primacy of the market.91
In the 1990s, with the triumphalism of neoliberal capitalism in the U.S and Britain, it
became the dominant ideology and an entity that was soon conceptually inseparable from
globalization. Neo-liberalism gave priority to the mobility of capital rather than to the
production cycle. Its main criterion for the direction of state policy is to re-create the best
conditions for the markets to flourish by removing as many restrictions on competition as
possible and empowering market agents by reducing the burdens of taxation. However, one must also recognize that it is not possible to implement fully neo-liberal ideology. As a result
“it has always been easier to set out what a neo-liberal program should be rather than actually
Steger (Lanham/Boulder/New York/Toronto/Oxford: Rowman & Littlefield Publishers, 2004), 17. 89 Martin Wolf, “Kicking Down Growth’s Ladder,” The Financial Times (London), April 12, 2000; quoted in Peters, In Search of the Good Life, 57. 90 Kiely, The Clash of Globalizations, 63. 91 Beck, What is Globalization?, 122. 35 to implement it in practice, particularly in the developed capitalist states.”92
2.3. The Unholy Trinity (the WB, WTO, IMF): the Main Agents
The current globalization is not an automatic natural process, but rather a “thoroughly
political project involving transnational players, institutions and discourse-coalitions.”93
Prominent economists, research institutes, business magazines, television media, TNCs and the IMF, the WTO, and the World Bank advocate the idea that globalization is good for all.
These voices also propagate the notion that every knowledgeable person desires it since it creates only winners and never losers.
Current globalization is mainly propagated and expanded by three Bretton Woods institutions: the IMF, the World Bank, and the WTO. These institutions propagate and impose the neoliberal ideology of economic globalization on developing nations. Expansion of the global free market is their overriding objective. Each of these international institutions were founded for a specific purpose. After the great depression of the 1930s and the World
War II, the delegates at Bretton Woods recognized the need to regulate the global economic system through strong international institutions. The International Monetary Fund (IMF) and the World Bank were created with the intention to provide such a structure. The prime responsibility of the IMF was to assist countries suffering from short-term trade imbalances.
The most important function of the IMF is to be a “lender of last resort” to member countries that cannot borrow money from other sources.94 The IMF was founded with the recognition
that markets often do not work well and that global economic stability needs global collective
action to monitor markets.95 The World Bank was set up with the purpose of assisting
struggling countries with long-term support. Its main purpose was to help countries to
develop the resources and productive capacity to raise their standard of living. The WTO,
92 Gamble, “Two Faces of Neo-liberalism,” 26-27. 93 Beck, What is Globalization?, 123. 94 Eitzen, Globalization: The Transformation of Social Worlds, 84. 95 Joseph Stiglitz, “The Promise of Global Institutions,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 477-78. which was created to replace GATT in 1994 with 135 member countries, is administrator of
multinational trade agreements, an overseer of national trade policies and settler of
international trade disputes.96
Unfortunately, however, today the IMF and the World Bank has undergone major
changes in their roles and purposes. Today the spread and enhancement of neoliberal market
ideology has become their primary goal. The most common strategy these institutions use to
force neo-liberal policies upon developing countries is the structural adjustment programs
(SAP), or what is often referred to as an “austerity plan.”97 The structural adjustment
programs forces a country to implement the following policies:
1. Drastic reduction in government expenditures on public services like education,
health care, environment and subsidies on the basic necessities of the poor like food
grains, cooking gas, and electricity.
2. Devaluation of the national currency and increase of exports by subsidizing export-
oriented foreign investments.
3. Liberalization of financial markets to attract speculative short-term investment.
4. Increasing interest rates to attract foreign capital while burdening the local businesses
and indebted local individuals.
5. Elimination of tariffs and other controls on imports and thereby increasing import of
consumer goods undermining local industry and agriculture.98
The structural adjustment program has not helped to eliminate poverty or improve
96 Woods, “Order, Globalization and Inequality in World Politics,” 469. 97 Kevin Watkins, The Oxfam Poverty Report (Oxford, U.K.: Oxfam, 1995), 73. 98 John Cavanagh and Jerry Mander, ed., Alternatives to Economic Globalization: A Better World is Possible, 2d ed. (San Francisco: Berrett-Koehler Publishers, 2004), 55-56. A research report, conducted by the Structural Adjustment participatory Review Initiative (SAPRI) in 2002, identified four basic ways in which adjustment policies have contributed to worsening poverty. First, it destroyed domestic manufacturing, throwing local employees and small businesses out of work. Second, the promotion of export-oriented agriculture threatened food security, particularly in rural areas. Third, privatization and labor market reforms suppressed wages and weakened workers’ bargaining power. Fourth, the cutting of the government services reduced poor people’s access to basic facilities, such as health care, education, and basic utilities. Engler, How to Rule the World, 110- 11. The Structural Adjustment Participatory Review International Network, The Policy Roots of Economic Crisis and Poverty, 173. http://www.saprin.org/SAPRI_Findings.pdf (accessed October 20, 2010). 37 infrastructure in developing countries. On the contrary, it has worsened the situation of the poor by reducing governmental social welfare schemes and subsidies on staples in developing countries. Most governments in developing countries have reduced investment on primary education and primary health care. For example, in Zimbabwe, due to the SAP, government spending on health services fell by one-third, and on education by 29 per cent. Per capita spending on primary education fell even faster.99
Many critics accuse the IMF and the World Bank of being often misguided or mistaken in
their policies toward developing countries. Since they are influenced and controlled by
American and European powers, they essentially promote and propose the American or
Western model of development for all developing countries without proper analysis of
specific problem or local contexts. They work on the assumption that Washington Consensus
is the best solution to end global poverty. The IMF has failed in several cases in its original
mission of promoting global stability and growth. The imposition of neoliberal capital policy
on developing countries that did not have proper financial institutions, infrastructure, and
strong governance has contributed to greater global instability and economic disaster in poor
countries.
The IMF has made mistakes in both its development policies and crisis management in
countries that were making the transition from communism to capitalism. The Asian crisis of
1997 and the crisis in Argentina in 2001 are some examples of failed IMF policies.100 The
IMF and the World Bank, even after these devastating experiences of failure, continue to
impose this neoliberal capitalist model on developing countries. They still believe in the myth
that “one-size-fits-all” without taking into account the cultural, political, and social systems
of a given country.101
One of reasons for the anti-poor policies of the IMF and the World Bank is their
99 Watkins, The Oxfam Poverty Report, 79-80. 100 Stiglitz, “The Promise of Global Institutions,” 478-79. 101 Wiarda, “Has the ‘End of History’ Arrived,” 63-64. governance structure. Both of these institutions are dominated by the commercial and
financial interests of the wealthiest people within rich countries, such as the United States and
its Western European allies.102 The neoliberal policies and programs of both these
institutions are set up and imposed on developing countries by the representatives from these
industrialized rich nations. Moreover, the IMF is represented by finance ministers and central
bank governors, and the WTO by trade ministers. Normally the trade ministers reflect the concerns of the business community. Since most of the decision makers in these institutions come from the financial community of rich countries, their decisions are influenced by the financial interests of the wealthy community of these countries.103 The WTO documents are
influenced by corporate lobbyists and representatives, who excel at getting protection for
corporations. Though in theory, the WTO operates on a system of “one country, one vote,”
but in practice “the trade ministers do not vote at all. Instead, deals are brokered by
‘consensus,’ which involves intricate backroom negotiations between major world
powers.”104
3. Defining Elements of Globalization
Many economists today emphasize that our world is rapidly integrating and that the
economy is increasingly becoming more global.105 Despite the fact that some firms are still
national or regional in nature and identity, the dominant feature of the current economy is an
integrated global economy. Current economies around the world are dependent on the performance of financial markets, international trade, transnational production, labor and
102 Engler, How to Rule the World, 167, 103. 103 Stiglitz, “The Promise of Global Institutions,” 479. 104 Engler, How to Rule the World, 155-56. 105 Economists make a distinction between the inter-national economy and the global economy. “An inter- national economy is one in which the principal entities are national economies. Trade and investment produce growing interconnection between these still national economies.” Hirst, “Globalization – a Necessary Myth?” 70. Whereas the global economy raises the nationally based interactions to a new power and the international economic system becomes autonomized and socially disembedded, as markets and production become truly global. Ibid. 71. 39 technology that are globalized.106 The innovation in information and communication
technologies and the implementation of deregulation and liberalization policies by several
governments have provided the necessary ingredients to the process of integration.
The global economy is predominantly characterized by free trade,107 global financial
markets and multinational corporations.
e3.1. Fre Market and Global Trade
The expansion of world trade or “economic integration” is one of the most significant
features of globalization. Global trade has expanded at a rapid rate over the past three decades
since the 1980s. The volume of manufactured goods in global trade has increased more than
80 percent since the 1990s. One of the biggest changes in global trade is the rising share of
Asia in world trade. The share of Asia in world trade has jumped from 16 percent in the
1980s to nearly 30 percent in 2000.108 The leading forces that have contributed to this swift
expansion of trade are the decline in import barriers maintained by governments and the
innovative and highly productive technological revolution that allows the fragmentation of
production through vertical specialization and outsourcing.
The European Union (EU), the North American Free Trade Association (NAFTA)
and the Association of South-East Asian Nations (ASEAN) are perceived as political
alliances that meet the needs of global entrepreneurs by redefining national and international
frameworks to facilitate the expansion of global trade. The General Agreement on Tariffs and
Trade (GATT) established a code of commercial conduct for its signatories. It sponsored
several efforts to reduce tariffs and other trade restrictions. The Uruguay Round in 1994
introduced agreements to liberalize trade in agricultural products, to open up trade in services
106 Manuel Castells, “Global Informational Capitalism,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 311. 107 Free trade is a misleading and ideologically loaded term. It is rhetoric. In reality there is no such thing as free trade, for every trade agreement includes protectionist measures that benefit select powerful corporations. Engler, How to Rule the World, 132. 108 Douglas A. Irwin, “Trade and Globalization,” in Globalization: What’s New?, ed. Michael M. Weinstein (New York: Columbia University Press, 2005), 20-21. and to liberalize rules on foreign investments related to trade. Along with GATT, which in
1995 became the World Trade Organization (WTO), there have been several regional and
bilateral agreements to reduce trade barriers, for example, the North American Free Trade
Agreement (NAFTA).109
The technological revolution and reduced transportation and communication costs have played a leading role in the fragmentation of production through vertical specialization and outsourcing. Vertical specialization refers to change in the production strategies of a company. Instead of producing all the parts of a product internally, a company purchases intermediate goods and components on the market. The automobile industry is a good example of vertical specialization. Today hardly any country produces an entire finished
product within its geographical boundaries. Most of the time, the main job of a firm is to
assemble various parts that are produced all over the world by specialized firms. Outsourcing is another important feature of today’s trade. The best examples of outsourcing involve
consumer electronics, textiles and apparel industries. Outsourcing occurs when part of the
production is shifted from one country to another. The developed countries produce certain
designs and ship them to developing countries for the actual production. The produced items
are shipped back to the developed countries for final processing.110
The current pattern of global trade is characterized by two types of international economic networks: “producer-driven” and “buyer-driven” value chains. In the “producer- driven” value chains the transnational manufacturers usually play the central role in coordinating the production networks. These are normally technology-intensive industries such as automobiles, computers, aircraft, and heavy machinery. On the other hand, the
“buyer-driven” value chains are those in which large retailers, marketers and branded manufactures play an important role. They set up decentralized production networks in a
109 Ibid., 28-29. 110 Ibid., 24-25. 41 variety of exporting countries, mainly in developing countries. This can be mainly observed in labor-intensive consumer goods industries such as garments, footwear, toys, handicrafts, and consumer electronics. Subcontractors in the developing world produce the finished products based on the specification given by MNCs for foreign buyers. Retailers like Wal-
Mart, Sears or footwear companies like Nike, Reebok or apparel companies like The Gap or
Liz Claiborne generally concentrate their work on designing and marketing the branded product. This type of production is called “manufacturers without factories.” 111
Recent trade liberalization has profound impact on the political, economic and social structures of a country and on the lives of people. The issue of the benefits and costs of free global trade has become an intensely debated issue. The advocates of free trade, basing their arguments on the Ricardian theory of comparative advantage,112 insist that free trade would
bring unprecedented economic growth and prosperity to all countries that participate in it.
They want the developing countries to liberalize their markets and the developed countries to
open their markets to exports from developing countries. They also speak about the positive
spillover effects of MNCs. One of the most effective spillovers is the shift of research and
development (R&D) from developed countries to developing countries. International trade
also improves the quality of inputs of the local production. The opening of local markets to
global markets allows the developing markets to gain exposure to new technologies,
innovative means of production and to efficient methods of production. This actually
increases the level of productivity and efficiency of local firms.113
However, the critics of free trade globalization call attention to the costs of free trade
on developing countries. They claim that falling wages, growing unemployment, loss of
111 Gray Gereffi and Olga Memedovic, “The Global Apparel Value Chain: What Prospects for Upgrading by Developing Countries?,” in Globalization and Its Outcomes, ed. John O’Loughlin, Lynn Staeheli, and Edward Greenberg (New York/London: The Guilford Press, 2004),69-70. 112 Ricardian model of comparative advantage illustrates that a country can gain by devoting more of its resources to the production of goods that it is best at producing, and exchange them for other goods through international trade. Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 38. 113 A World Bank Report, Globalization, Growth, and Poverty, 92-93. national sovereignty, and growing insecurity surpass the benefits of free trade. The idea of
free markets and a single global market assumes that the economic life of every country can
be fashioned in the image of the Washington Consensus. Moreover, free trade also assumes
that perfect markets and fair competitions characterize world trade. It presumes that the global market ground is flat. However, in reality there is neither free trade nor the flat market ground on which to compete. The main reason why the developed countries insist that the developing countries ought to liberalize their markets is that the developed countries want to export their surplus goods to those markets and to import natural resources from those countries. Meanwhile, the developed countries continue to keep a host of subtle but effective trade barriers in place so that their markets are not flooded with goods from developing countries. For example, even after signing the NAFTA accords with Mexico, the U.S. continued its agricultural subsidies and nontariff barriers to bar Mexican products that had begun to arrive in its markets. Even if one were to agree that the terms of trade are fair one must recognize the fact that not all countries enjoy a level playing field on which to take advantage of this new opportunity. Many developing countries lack proper infrastructure, capital, and know-how. Most of the developing countries are not able to meet the high standards that the developed countries demand from their products.
In theory trade liberalization promises that the country, by opening its economy for free trade, will benefit as a whole. If there are some losers, then the winners would compensate the losers. But in practice this never happens. Free trade only creates “rich countries with poor people.” There is always a danger that if liberalization is not managed well, the majority of citizens would be worse off.114 In general free trade has been good for
large, export manufacturing and service industries in the North. Western Europe, USA, and
Japan have benefited from free trade because they have been able to capture markets from
114 Stiglitz, Making Globalization Work, 62-63. 43 business that had long been protected by governments in Africa, Asia, Eastern Europe, Latin
America, and the Soviet Union. In the South certain countries indeed have benefited from free trade globalization. However, falling commodity prices, the collapse of domestic manufacturing industries, currency devaluations, and rising interest rates have outweighed the benefits. The benefits expected from trade globalization have not materialized in the South.115
3.2. Global Financial Markets
The current globalization is dominated by global financial markets. Finance has
become more dominant in the economic sphere because it has grown larger in size relative to
everything else. Financialization is the central feature of the contemporary social structure
and it has dramatically changed the way capitalist production is organized. Financialization
means that “stock prices, currency values, and interest rates shape the economic prospects of
working people and these in turn are at the mercy of speculators who increasingly constrain
and shape corporate strategies and the choices of politicians.”116
Capital has become global as billions of dollars’ worth of transactions take place in
seconds throughout the globe and around the clock through electronic circuits. In 1980s
world financial markets changed dramatically. Financial deregulation and internationalization
accelerated the global financial flows in the 1990s. With deregulation trends, international
lending exploded and capital became internationally mobile.117 One of the reasons for rapid
growth of capital markets is international agreement bills like the Multinational Agreement
on Investment (MAI) and Trade Related Investment Measures (TRIMs). These have reduced
the control of governments over the movement of capital into or out of their countries. The
IMF reported that in 2000 the world foreign direct investment (FDI) was at an all-time high
115 Schaeffer, Understanding Globalization, 244-45. 116 William K. Tabb, “Financialization in the Contemporary Social Structure of Accumulation,” in Contemporary Capitalism and Its Crises: Social Structure of Accumulation Theory for the 21st Century, ed. Terrence McDonough, Michael Reich, and David M. Kotz (Cambridge/ New York/ Melbourne/ Madrid/ Cape Town/ Singapore/ Sao Paulo/ Delhi/ Dubai/ Tokyo: Cambridge University Press, 2010), 149. 117 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 13. of $1.5 trillion.118 This staggering volume of financial trading across borders is mostly
transacted by a very small community. The world’s largest banks, 30 to 50 of them, and a
handful of major financial institutions are actually conducting the financial trade on behalf of
wealthy individuals and various pools of private capital, small banks, pension funds, mutual
funds, and so on.119
The movement of capital takes place through international borrowing and lending.
This can take place either through private lending and investing or official lending and
investing by governments or multinational organizations such as the World Bank and the
IMF. Private lending, which consists of the transactions and financial flows within bonds,
equity, derivatives, banking and exchange rate markets around the world, is an important
dimension of globalization. It is stimulated by a combination of improved technology, deregulation, and financial innovation. Stocks and bonds are traded around the world almost twenty-four hours a day on various exchanges. Information is a crucial component in the global financial system. However, a large portion of the international flow of capital does not
represent the actual transfer of real resources. Currency speculation is the main characteristic
of today’s financial economy. For example, in the 1990s the Bank for International
Settlements estimated $800 billion daily currency transactions, out of which only $25 billion
was conducted for trade and investment and the rest for speculation. The TNCs are the largest
speculators as almost all TNCs are involved in speculation.120 The financial crises
experienced in recent decades have exposed the risks of short-term speculative business
activity. Short-term loans often include options to flee at maturity, leading to financial crises.
Foreign direct investment (FDI) is one of the main mechanisms for international
capital flows. With the global expansion of multinational corporations, FDI rose rapidly.
118 The IMF, Foreign Direct Investment: Trends, Data Availability, Concepts, and Recording Practice http://www.imf.org/external/pubs/ft/fdi/2004/fditda.pdf , 4 (accessed December 10, 2010). 119 Greider, One World, Ready or Not, 23. 120 Douglas Dowd, Capitalism and Its Economics: A Critical History, new ed. (London/Ann Arbor, MI: Pluto Press, 2004), 185. 45
MNCs realized that they cannot depend solely on their domestic base for generating technological advantages. The rising costs of innovation and the need to tap into overseas innovation networks led many TNCs to invest in foreign countries either through joint ventures or alliances.121 FDI flows worldwide in 1999-2000 exceeded $1 trillion annually, a
historical high point. Private capital flows from the developed countries to developing
countries have risen at an alarming rate in the last three decades. With the aim of increasing
shareholders’ wealth TNCs are investing in foreign countries. The TNCs invest in FDI either
through wholly owned subsidiaries or through acquisitions or joint ventures of two or more
companies. In a wholly owned subsidiary a single company owns all the assets and therefore
is responsible for all the risks and loses. In the joint venture model, two or more enterprises
join together through a contract for doing business together, in sharing of business risks,
losses and profits.122
However, foreign direct investors are choosy in selecting in which countries to invest.
Most of FDI is concentrated in developed countries and in the service sector. In 1999-2000 around 80 percent of total FDI was absorbed by developed countries and only 18 percent by developing countries.123 There is also a high risk attached to foreign capital. The greatest risk is the danger of a financial collapse of a country. The economic collapse coincides with the
falling value of the domestic currency. Most FDI consists of short-term loans that have the
option to exit quickly if the economic circumstances become unfavorable. Thus, arises the
“sudden stop” problem where foreign investors suddenly reverse the capital flow at the onset
of trouble. Investors benefit from this type of liquidity, but it can lead to financial crisis in
developing countries.124
121 Jonathan Perraton and others, “Economic Activity in a Globalizing World,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 296-97. 122 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 88-89. 123 Ibid.,, 98. 124 Charles W. Calomiris, “Capital Flows, Financial Crises, and Public Policy,” in Globalization: What’s New?, ed. Michael M. Weinstein (New York: Columbia University Press, 2005), 44-45. The issue of control and influence of FDI on a country is another contentious issue in the debate over globalization. First of all, FDI has no simple definition and, secondly, its impact on a country is complicated to measure. Nevertheless, there is a large body of literature on the effects of capital flows in developing countries. Those who support liberalizing capital flow argue that FDI destination countries benefit from it in two ways.
First, it reduces the cost of funds and helps the economy to invest and grow faster. Second,
“diversification from cross-border trading in securities reduces the cost of capital by reducing
the risk of premium paid by firms.” In both ways, the flow of FDI promotes investment and
economic growth.125 Globalists maintain that FDI has both short term and long term effects
on a host country. They believe that it affects four areas of the economy of a host country:
resources, employment, growth and productivity, and balance of payments and trade. First of
all foreign direct investment brings capital into developing countries, something that many
poor countries lack. Furthermore, it offers not just new capital but also brings in advanced
technology and skilled personnel to developing markets. The transfer of new technology
stimulates economic development and increases the efficiency of local firms. The
technological spillover effect is considered a significant aspect of FDI. Secondly, FDI affects
employment in the destination country. The impact on employment may be positive or
negative depending on whether the TNC is investing in capital-intensive production or in
labor-intensive production. FDI on one hand increases real wages of the workers in a
developing country, but on the other hand it may force the closure of local companies that
cannot compete with large-size TNCs. Thirdly, the competitive pressure that TNCs bring in
may force local producers to improve their production and better their operations. Thus it will
result in higher productivity and growth. It also increases consumer choice, improves the
125 Ibid., 60-61. 47 quality and variety of products, modernizes the infrastructure and increases the GDP.126
3.3. The Transnational Corporations (TNCs127)
At the dawn of the twenty-first century the global corporation stands as a dominant institutional force at the center of human activity and the planet itself. TNCs can be defined as “a firm which has the power to co-ordinate and control operations in more than one country, even if it does not own them.”128 Overseas ownership is achieved either by mergers and acquisitions or by investing directly in new capacity creation.129 So, TNCs need not own assets in another country and yet they get involve through a web of collaborative relationships with other legally independent firms.130
TNCs are powerful actors and agents of current globalization. Some TNCs are richer than most developing countries of the world. For example, it is estimated that in 2004 revenues of General Motors were $191.4 billion, greater than the GDP of more than 148 countries. In 2005 revenues of Wal-Mart were $285.2 billion, larger than the combined GDP of sub-Saharan Africa.131 They have become primary organizing instruments for economic, political, cultural and social activities of our globe.132 They force developing countries, through the WTO and the IMF, to accept and implement the policies of liberal capitalism as
126 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 93-95. 127 TNCs are seen as agencies of integrated global economy without specific national identification and with an internationalized management. They are no longer based on one predominant national location. Hence TNCs cannot be controlled and governed by the policies of particular nation states. The TNCs are an institutionalized form of organization, which organize and manage cross-border business activity through the ownership of plants, outlets or subsidiaries in different countries. Hirst, “Globalization – a Necessary Myth?,” 72. Some scholars refer to them as multinational corporations (MNCs) or multinational enterprises (MNEs) instead. “From a business management perspective, the major difference between TNCs and MNCs is that TNCs pursue a worldwide intra-firm division of labor, locating parts of the production process wherever it makes the most sense, whereas MNCs replicate the entire production process within different countries or regions.” Doris Fuchs, Global Governance in Business Power, 10. https://www.rienner.com/uploads/47e2876cbebcc.pdf (accessed November 15, 2010). 128 Peter Dicken, “A New Geo-Economy,” in The Global Transformations Reader, 2d edition, ed. David Held and others, 306. 129 Soumyen Sikdar, Contemporary Issues in Globalization: An Introduction to Theory and Policy in India, 2d edition (New Delhi: Oxford University Press, 2006), 79. 130 Dicken, “A New Geo-Economy,” 307. 131 Stiglitz, Making Globalization Work, 187-88. 132 It is estimated that TNCs account up to “a third of world output and two-thirds of world trade, with around a quarter of world trade being between branches of the same company.” Perraton and others, “Economic Activity in a Globalized World,” 296. to serve their interests of maximizing profits. Through their wealth, political power, and
networking capacities they promote trade polices “that serve their interests above those of
less powerful actors such as smaller economies, indebted nations, or small and vulnerable
national enterprises.”133 Some reports state that “by the year 2000 the combined sales of the
world’s top two hundred corporations exceeded a quarter of all countries’ economic
activity.”134
More importantly TNCs, through their market power, political influence by contributing billions of dollars to election campaigns, and their monopoly over mass media,
create economic visions and political power structures for the global world. They have the
power to decide in the global market where to invest, where to produce, what to produce, where to live and where to pay taxes. Today corporations can produce in one country, pay
taxes in another and demand state infrastructural spending in yet another country.135
The growth of TNCs is mostly concentrated in the high-tech industries and in labor- intensive consumer goods like textiles, garments and footwear. TNCs are also engaged in the service sector such as software development, financial service, and call centers. They pursue the aim of increasing market share and enhancing their shareholders wealth, which remains the kingpin of their decisions to invest in foreign countries. Some estimate that some 65,000
TNCs with around 850,000 foreign affiliates account for at least 20 per cent of world production and 70 per cent of world trade. They are engaged in every sector of the global economy from raw materials to finance, from manufacturing to reordering economic activities within and across the world’s major economic regions.136 The guiding principles of
TNCs may be summarized as the following: the absolute necessity to make more profit; the
133 James E. Hug, “Economic Justice and Globalization,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 60, 61. 134 Cavanagh and Jerry Mander, Alternatives to Economic Globalization, 273. 135 Beck, What is Globalization?, 3-4. 136 Held, “The Great Globalization Debate: An Introduction,” 25. 49 imperative to continuously grow and expand territorially and functionally; and the need to maintain and control local and global government policies so that they function unregulated in their investment, access to any markets and resources and in their control of the labor force.137
The urgent need to find new customers and markets for the surplus production, the
immense new pools of cheap labor in developing countries, and maximization of profits are
driving forces for TNCs rapid expansion of their production and markets beyond their own
domestic markets. One of the key problems of our contemporary world is the oversupply of
goods. The outcome of technological advancement, besides improvement in quality and
efficiency, is a quantity of production that leads to a persistent excess supply of goods. It is a vicious cycle. Due to fierce competition, firms are forced to design innovative methods of production that can produce more goods by using less input resources. New technologies give rise to ever higher quantities of production in ever shorter periods of time. The presence of overproduction exacerbates price competition and threatens market shares. This leads to building new factories with even more and better cost-efficient technologies in order to match or surpass one’s rivals. The outcome of this continual process of competition and overproduction forces some factories to bow out of business. It also compels markets to create more consumers in developing countries. Neoliberals are confident that markets will overcome this problem. They assume that markets are always self-correcting and that the problem of surplus is only a temporary consequence of competition which would be quickly balanced by the market. However, the reality does not agree with this optimistic scenario.
The situation of over-productive capacity is neither temporary nor diminishing. The growing imbalance between supply and demand causes great anxiety as dislocations, closures and
137 Cavanagh and Jerry Mander, Alternatives to Economic Globalization, 279-80. shakeouts continue in the world.138
Another reason for the rapid expansion of TNCs is developing countries themselves.
Developing countries such as China, India, Brazil, South Africa, and other developing
countries are in competition with each other to become an important player in the global
market. They compete with each other to attract more and more foreign investments to their
countries and this leads to a process of political bargaining. TNCs make use of this situation
to their advantage and heighten the competition within and between these developing countries through a process of “global horse-trading” to find the cheapest labor and the most favorable infrastructure. They demand special political favors and protective benefits such as
state subsidies, exemption from taxation, suppression of workers’ protests, exemption from
import duties, etc. They, in a way, conduct a global job auction and award shares of
production to those countries that make highest bids, that is, in the form of greatest
concessions by the public sector.139
Though we cannot reduce all TNCs to a homogeneous model, as they vary in their
strategies and policies, nevertheless the most dominant model that most TNCs follow is the
shareholders model. The main object of TNCs is to multiply the wealth of shareholders as
swiftly as possible. This model holds that stock price maximization should be the ultimate
purpose that should guide all other goals of a firm. The relationship between a shareholder,
manager and the firm is defined on the basis of agency theory. The agency theory defines
relationships in terms of contracts between principals and agents. Accordingly shareholders
have entrusted their wealth to a manager who acts as a trustee in the matter of maximizing
their wealth. The firm then is an instrument in maximizing the wealth of shareholders.140
Today most TNCs are publicly traded, which means that their ownership shares are
138 Greider, One World, Ready or Not, 103-04. 139 Ibid., 81-82. 140 Helen Alford and Michael J. Naughton, “Beyond the Shareholder Model of the Firm.” in Rethinking the Purpose of Business: Interdisciplinary Essays from the Catholic Social Tradition, ed. S.A. Cortright and Michael J. Naughton (Notre Dame: University of Notre Dame Press, 2002), 30-31. 51 freely exchanged in public stock markets by a large number of people. Since publicly traded corporations are under tremendous pressure to promote optimistic impressions of investment opportunities, so as to attract new investors, expansion and high quarterly profits become their obsessive goals. Most TNCs do not pay proper consideration to ethical or social consequences in their drive to make huge profits.141
One of the main problems with TNCs and public shares is that it is very difficult to
hold a firm entirely responsible whenever it commits a crime that causes great harm to
society. Though certain individuals within a corporation make specific decisions that
determine what the firm does, these individuals are often not held responsible for disastrous
consequences of those decisions. It is too easy for corporate managers to hide behind the
corporate veil. For example, the case of gas tragedy in Bhopal, India in 1984. Warren
Anderson, the CEO of Union Carbide a subsidiary of a USA-based MNC, has not been
punished even 26 years after the tragedy that killed over 20,000 people, inflicting serious
heath damage upon over 100,000 people.142
TNCs strive for profits. One of the ways to gain sustainable profits is to acquire
market power and monopoly in the global market. Alliance is the usual method by which
TNCs try to reduce competition and establish monopoly in the market. Today many firms are
entering into strategic alliances143 through cooperative agreements. The year 1998 witnessed
several major mergers of large firms throughout the world. For example, oil firms Amoco and
BP merged together, Daimler Chrysler bought Citibank and named themselves Citigroup;
AT&T merged with Telecommunications Inc and with Media One. As a result in 1998 the
141 Cavanagh and Jerry Mander, Alternatives to Economic Globalization, 273-75. 142 K. Nageshwar, Bhopal Gas Tragedy: Nation Succumbs to MNCs Corporate Power, http://indiacurrentaffairs .org/bhopal-gas-tragedy-nation-succumbs-to-mnc%E2%80%99s-corporate-power-prof-k-nageshwar/ (accessed November 15, 2010). 143 The alliances are strategic because they are significant to the long-term competitive position of the firm. It is a means to obtain rapidly the critical capabilities that a firm lacks to take advantage of a global market. The main focus of these alliances therefore is not mass distribution of existing products but rather to create new technologies and new products that are innovative and less expensive, and more attractive than products from other firms. Alliance provides an alternative to mergers and acquisitions. Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 256-57. “Global 500” giant corporations more than ever were controlling global economy with revenues of $11.5 trillion; profits of $440 billion; assets of $39 trillion and employees of 40 million.144
The most commonly used method of alliance is the subsidiary. In the globalized world
TNCs are frequently restructured as a multilayered subsidiary form (MLSF). A corporation with a parent company at the top may have two or more levels of subsidiary corporations.
The difference between the earlier multidivisional form and the current multilayered subsidiary form is that current subsidiaries are legally separate entities. This is very advantageous to the parent company on different fronts: it frees it from any responsibility for any mishaps or breakdowns in its subsidiary corporations; it allows the parent company to raise its capital by selling stocks in its subsidiary corporations; it allows it to operate in foreign countries where there are greater advantages and it facilitates an escape from all the complications that are involved in acquisitions and mergers of firms.145
Many critics of globalization condemn TNCs as greedy and heartless entities that place profit above all else. They argue that TNCs are not interested in producing commodities that are essential to millions of people in order to satisfy their hunger and to eradicate life- threatening diseases. There is a fundamental asymmetry in the kind of issues that TNCs take up for research and innovation. Problems which are critical for developing countries but do not have a promising solvent market are neglected in research programs by these dominant firms. For example, an effective malaria vaccine is one of the most urgent and most important medical needs for Africa and other developing countries where millions of people, particularly children, die of malaria every year. However, few resources are dedicated to sustained research to discover an efficient and less expensive vaccine for malaria. The drugs
144 Dowd, Capitalism and Its Economics, 173-74. 145 Harland Prechel, “The Labor Process and the Transformation of Corporate Control in the Global Economy,” in Labor and Capital in the Age of Globalization: The Labor Process and the Changing Nature of Work in the Global Economy, ed. Berch Berberoglu (Lanham/Boulder/New York/Oxford: Rowman & Littlefield Publishers, Inc., 2002), 62-65. 53 produced in developing countries are so expensive that most people cannot afford to buy them. Moreover, multinational pharmaceutical companies holding patent rights block developing countries from producing similar drugs more cheaply or from finding alternative drugs.146
Hence, for most people in developing countries TNCs symbolize the wrong side of
globalization. Yet, as Stiglitz states, one has to give due credit to TNCs for being major
agents in bringing benefits of globalization to developing countries. They have been agents
for the transfer of technology from advanced industrial countries to developing countries.
They have created some high-paying new jobs in some developing countries and also have
brought less expensive and quality goods to the market of developing countries.147
4. The Impact of Globalization: An Unending Debate
Nothing so polarizes public opinion today than the notion of globalization. Does
globalization enhance or demote human development? Does it promote economic progress or
cause more despair and misery? Does it liberate the poor from their poverty trap or further
tighten its grip?
Scholars are sharply divided in their opinion about the impact of globalization on poor
countries, on the well-being of unskilled daily wage earners and marginal farmers, and on
deepening inequalities. One can easily recognize two extreme groups: the proponents and the
skeptics. One side claims that global trading is a disaster, and the other side asserts that free
global trade is the good thing for all countries that are involved in it.148 Both groups oppose each other with convincing arguments and statistical evidence. Both have produced copious literature with claims and counter claims that marshal statistical data and anecdotes to prove
146 Castells, “Global Informational Capitalism,” 321. 147 Stiglitz, Making Globalization Work, 187-89. 148 John O’Loughlin, Lynn Staeheli, and Edward Greenberg, “Globalization and its Outcomes: An Introduction,” in Globalization and Its Outcomes, ed. John O’Loughlin, Lynn Staeheli, and Edward Greenberg (New York/London: The Guilford Press, 2004), 7. their opponents wrong. Both groups accuse each other of being too unrealistic in their
understanding of globalization. Bhagwati, going a step further, even calls the anti-
cooperationists and anti-globalists “new guerrillas” using the world meetings of international
agencies such as the World Bank, the IMF, and the WTO to gain attention and publicity.149
David Held and others have categorized the ongoing debate as consisting of three
main groups: hyperglobalizers, the skeptics, and the transformationalists.
Hyperglobalizers and champions of corporate globalization such as Jagdish Bhagwati,
Thomas L. Friedman, Michael Novak, Johan Norberg, Surjit Bhalla, Douglas Irwin,150 and
others argue that globalization is “a common climb to the top”. They try hard to project
neoliberal globalization as natural, fair, and fundamentally better than any realistic
alternative. They assert, “The speed of capitalism has raised living standards higher, faster
and for more people than at any time in history. It has also brought more poor people into the
middle classes more quickly than at any time in human history.”151 Friedman thus wrote,
“The more you open your economy to free trade and competition, the more efficient and
flourishing your economy will be.”152 They often cite the economic miracles in East Asia or
the impressive economic growth of China and India as a testimony to the empowering power
of globalization. They argue that it depends on poor countries how well they manage to
integrate themselves into the global economic system.
The distinguishing feature of current economic globalization, the hyperglobalists
claim, is the existence of a single global economy transcending and integrating the world’s
major economic regions. There is an accelerated process of internationalization of
production, distribution, and management of goods and services. This process is comprised of
149 Bhagwati, In Defense of Globalization, 23. 150 See Bhagawati, In Defense of Globalization, Friedman, The Lexus and the Olive Tree, Surjit S. Bhalla, Imagine There’s No Country (2002), Douglas Irwin, Free Trade under Fire (2002), and Johan Norberg, In Defense of Global Capitalism (2001). 151 Friedman, The Lexus and the Olive Tree, 350. 152 Ibid., 9. 55 the growth of foreign direct investment, the decisive role of multinational corporations as producers in the global economy, and the formation of international production networks.
Foreign direct investment (FDI) outflows have continued to grow from the 1990s. Though most FDI is concentrated in developed countries, developing countries have increased their share in attracting FDI flows.153 They argue that globalization allows income growth for all, a win-win situation for all who participate in global markets. The removal of import-restricting policy barriers by developing countries that were designed to protect local producers has brought significant advantages to these developing economies. It has made available a wider variety of goods at lower prices and with higher quality.154
On the other hand, critics and trans-formationalist,155 such as Joseph Stiglitz, Amartya
Sen, Vandana Shiva, Felix Wilfred, John Cavanagh, Paul Krugman, Jeffrey Sachs, and others, highlight the failures of current globalization.156 They argue that, although globalization has the potential to raise the living standards of people, the current version of globalization has failed to realize its potential. The current globalization, which is governed by neoliberalism and the Washington Consensus and managed for the rich, is a disaster for millions of poor people in developing countries. They condemn it as a ‘the global trap’ for the poor. They claim that it undermines security, equity, and democracy.157 For millions of
153 Castells, “Global Informational Capitalism,” 317-18. 154 Raphael Kaplinsky, Globalization, Poverty and Inequality: Between a Rock and a Hard Place (Cambridge, U.K.: Polity Press, 2005), 202-03. 155 There are two anti-neoliberal globalization movements: reformist school and radical school. The reformist school advocates for a fair trade approach and believes that the market economy is not intrinsically harmful. It holds that the present market system needs reform since it is modeled to benefit the rich countries and it is harmful to developing countries. On the other hand, the radicals stress on local communities and call for the abolition of the WTO, the IMF, and the World Bank as they are seen the root causes for many evils of globalization. Albino Barrera, Globalization and Economic Ethics: Distributive Justice in the Knowledge Economy (New York: Palgrave Macmillan, 2007), 4. 156 Their main contention is that globalization has failed to deliver and fulfill its promises of prosperity and progress. The promises of globalization, including more rapid economic growth, greater poverty reduction through expanded opportunities, faster convergence of incomes through technology transfer and better wages and job opportunities for workers, have remained unfulfilled dreams for a large number of people. Keith E. Maskus, “A System on the Brink: Pitfalls in International Trade Rules on the Road to Globalization,” in Globalization and Its Outcomes, ed. John O’Loughlin, Lynn Staeheli, and Edward Greenberg (New York/London: The Guilford Press, 2004), 99. 157 Scholte, Globalization a Critical Introduction, 25. poor people it has not worked; as many of them have lost their jobs and their livelihood. It
has made their lives more insecure and unstable and has undermined their democracies and
their cultures. They point out the deplorable working conditions in developing nations that
are eager to attract foreign investment.158 They interpret it as the triumph of a “global capitalism” that supports the interests of the rich and exploits the poor, pollutes the environment, commodifies every resource and relationships, creates worldwide inequality, and generates a cultural homogeneity that destroys regional diversity.159
Ray Kiely summarizes the most common defects that the critics of globalization
denounce of neoliberal globalization as:
1. It intensifies exploitation and poverty: Globalization does not invite all territories
and all people into the benefits of global market. Its actual operation is extended only to
certain segments of economic sectors, countries and regions. Globalization is often associated
with exploitation of sweat-shop labor in the developing world. It has given rise to free-trade
zones or export-processing zones, which are specialized areas within a country that specialize
in manufacturing export goods. Multinational corporations are given incentives by the
respective governments, such as tax concession, duty-free import of inputs, controls over the
labor force, and export subsidies, to invest in these zones. Anti-globalization movements
argue that capital is so mobile today that it can move freely beyond nation-states and invest where it can profit more from low wages, low rates of taxation, and weak environmental regulations.
2. Growing social and economic inequality: The income gap between the richest and poorest countries has increased significantly. It has excluded most of the least developed countries (LDC) form the benefits of globalization. The growing poverty in sub-Saharan
158 Joseph E. Stiglitz, Globalization and Its Discontents (New York/ London: W.W. Norton & Company, 2002), 20. 159 Max L. Stackhouse, “General Introduction,” in God and Globalization, Vol. 1, Religion and the Powers of the Common Life, ed. Max L. Stackhouse and Peter J. Paris (Harrisburg, Pennsylvania: Trinity Press International, 2000), 19. 57
Africa, Asia and Latin America are direct consequences of globalization.160 The hegemony
of the finance market has helped corporations make huge profits at the expense of unskilled
and casual workers, small farmers, small business owners, and indigenous people. There is no
convergence between developed and developing countries as promised by trade liberalization
policies.
The powerful and rich countries such as the U.S., some countries of the European
Union and Japan set the rules of foreign trade. On one hand, these countries push hard for
international agreements on property rights, reduction of tariffs on investment and trade, but,
on the other hand, they are not ready to reduce subsidies and liberalize agriculture and labor-
intensive manufacturer sectors. The international trading system is unbalanced and driven by
the special interests of powerful rich countries.161 Economic globalization creates a more
affluent world for some at the expense of growing poverty for others. The growing poverty is
no longer confined to the South, the developing world, but is also extended to the developed
world.
3. Cultural homogenization: globalization is often associated with Americanization
and with Western cultural imperialism. Critics argue that globalization sells in effect the
Western lifestyle by selling Western brands and products throughout the world. The main
issue is not homogenization but rather cultural standardization. It is the spread of
consumerism, materialism, the commoditization of everything, and rationalization. It spreads
the notion that the good society is one that features the maximization of production, rapid
economic growth, and the gratification of all human desires, regardless of social and
environmental consequences.162
Skeptics dismiss globalization as a mere myth or as rhetoric, hype, and empty
160 Richard Kohl, “Introduction,” in Globalization, Poverty and Inequality, (Paris: OECD Publications, 2003), 13; World Commission on the Social Dimension of Globalization, A Fair Globalization: Creating Opportunities for All (Geneva: International Labor Organization, 2004), 38. 161 Maskus, “A System on the Brink”, 100. 162 Kiely, The Clash of Globalizations, 166-71. jargon.163 They consider globalization as “an ideological construction; a convenient myth which, in part, helps justify and legitimize the neoliberal global project that is, the creation of a global free market and the consolidation of Anglo-American capitalism within the world.”164 The pro-Marxists camp terms it as a “new mode of Western imperialism dominated by capitalists to exploit the new markets.”165 They contest that instead of developed and developing countries becoming more integrated, the developed countries are trying to increase their control over developing countries through various mechanisms and via international institutions like the IMF and the World Bank.
Further, Skeptics assert that current globalization is driven by people’s greed for hoarding wealth for themselves and not by an ambition to improve the living conditions of others in society. It is guided by the ideology of self-interest and profits and not by humanitarian concern. In the twenty-first century capitalism’s powerful economic forces see the world as a zero-sum game. Greed drives wealthy individuals and corporations to win by any means because it moves in a direction of getting everything one can get for oneself
163 Skeptics give at least six reasons for their claim that the idea of globally integrated world is a mere myth: First, they allege that the international economy has been in existence long before the 20th century. Moreover, the current economy is less open to migration and trade than it was at the end of the nineteenth century. Second, the transnational corporations are relatively rare. Most companies today are based nationally and trade multi- nationally on the strength of a major national location of assets, production and sales. Third, it is not true that international capital flows to all parts of the world. International giants (TNCs) have certain obvious preferences. They enter world markets from the upper end, that is, they try to enter the most lucrative markets. They are not interested in reaching out to the forgotten majority. They go to the world markets where the critical sales volume can be achieved with one-size-fits-all products. They are not quite as flexible as they claim to be in catering to the varying needs and smaller markets. Fourth, in contrast to the claim of hyper- globalists, the world economy is far from being truly global. Trade, investment and financial flows are concentrated in three blocs: the European Union, the U.S. and Asia-Pacific. Fifth, global markets are by no means beyond regulation and control. They are controlled and governed by the powerful blocks of Europe, North America and Japan. Sixth, there are no perfectly working markets that have no unemployment, no unequal competing grounds, and workers are fully secure in their jobs. The industrial developed countries with their strong economic base, good infrastructure, abundance of capital and human skill, and technological advancement were well placed to gain substantially from a global economy. By way of contrast, a large number of rural people in developing countries do not own telephones, computers, fax machines, televisions, refrigerators or washing machines. The technologies that are seen as the main driving force in globalizing the planet have very minimal impact on their lives. It bypasses a large portion of people and large parts of the world. Coskun A. Samli, Globalization from the Bottom Up: A Blueprint for Modern Capitalism (New York: Springer Science + Business Media, 2008), 44- 45; Hirst, “Globalization – A Necessary Myth?,” 98-99; Stiglitz, Making Globalization Work, 67-68; World Commission, A Fair Globalization, 37; Schaeffer, Understanding Globalization, 4-6. 164 Held, “The Great Globalization Debate: An Introduction,” 5 165 Ibid. 59 without limits and barriers. Certainly, ambition can be a positive force, but when it is unchecked it can easily turn into raw greed.166 Most of the critics of globalization are deeply
concerned about poor people who have been either left out or are adversely affected by
growing free market ideology. They denounce the policies of many nations that weaken or
devalue existing environmental and labor standards in an effort to be competitive in the
global marketplace. The skeptics argue that neo-liberal globalization has worsened the
working conditions of many unskilled women and children in developing nations.167
Transformationalists disagree with the skeptics’ idea that globalization is purely an
ideological construction or synonymous with Anglo-American imperialism. They consider
that globalization is one of the central driving forces, or even a powerful transformative force today. It is responsible for a “massive shake-out of societies, economies, institutions of governance and world order,” and for reshaping the modern globe.168 On the other hand,
they also believe that it is hyperbole to say that it is the most significant trend in today’s
society. The moderate transformationalists are discontent with the current version of
economic globalization but are not against the idea of globalization. They see the potential
capacity in the concept of globalization if it is implemented with proper policies and
frameworks. They propose to transform the current globalization through better policies,
strong global institutions and better global governance.
Transformationalists -- Joseph Stiglitz,169 Paul Krugman, Jeffery Sachs and others --
try to explore alternative economic policies for developing and transition countries. They
166 Samli, Globalization from the Bottom Up, 10-13. 167 Barrera, Globalization and Economic Ethics, 3, 10. 168 Held, “The Great Globalization Debate: An Introduction,” 7. 169 Stiglitz in his famous book Making Globalization Work does a multilevel analysis of globalization. He analyzes the issues such as the policies of international economic institutions, the primary goals of the financial and corporate community, the failures of free markets, the importance of state structures, and effects of globalization on different countries. He argues that the problem of growing poverty and inequality in the world is due to the way globalization is managed. He calls for reforming the way globalization is managed so as to make it work for more people. He advocates an alternative model of development that is “sustainable, equitable, and democratic development that focuses on increasing living standards, not just on measured GDP.” Stiglitz, Making Globalization Work, 44-45. advocate the idea that markets alone cannot direct national economies, as markets are prone
to commit mistakes. The reformists argue that in order to fully participate and benefit from
the global market, which is governed by high technology and sophisticated computer
networks, countries and individuals need to possess the resources, infrastructure, and
opportunities to gain the skills and technology that are essential to be a part of this process.
The nations, they argue, reap benefit from global exchange in proportion to their bargaining
power, level of development, quality of their institutions, and accessibility to the cutting-edge
of new technology.
Against the background of the East Asian economic crisis and the market scandals of
recent years there is an emergence of a Post-Washington Consensus. It emphasizes the need
for market-supportive institutions. Unlike the Washington Consensus it assumes that markets
can and do fail and therefore some kind of state intervention is necessary to readdress order
and to ensure the most effective functioning of the markets. It assumes that markets need
institutions for efficiency and sustainability.170 This idea of a right balance of interaction
between the government and the market is also supported by some hyperglobalists. For
example, Bhagwati also believes that, though globalization normally works well, it
occasionally can do harm that requires attention. Therefore he says, “We must create
institutions and policies that either reduce the probability of such downsides or can be
triggered so as to cope with them, preferably doing both.”171 He also states that attention needs to be paid to the speed at which globalization is best pursued. The best speed is not necessarily the fastest speed. So, globalization must be managed so that “its fundamentally benign effects are ensured and reinforced.”172
Analyzing the ongoing debate about globalization among neoliberal advocates,
170 Garry Rodan, “Neo-liberalism and Transparency: Political versus Economic Liberalism,” in The Neo-Liberal Revolution Forging the Market State, ed. Richard Robison (New York: Palgrave Macmillan, 2006), 199. 171 Bhagwati, In Defense of Globalization, 32. 172 Ibid., 34-35. 61 skeptics, and transformationalists indicates that these opposing groups are working on two different set of values, perspectives and worldviews regarding development, growth and human well-being. They seem to understand and promote a different kind of development.
The globalists measure the wealth and progress of a country on the basis of the Gross
Domestic Product (GDP173) and Gross National Product (GNP). The GDP measures the
growth of a society by the market value of the aggregate of all economic production. The
assumption of globalist is that an increase in the GDP automatically brings progress and national well-being to all people. Clear-cutting forests, strip mining of mountaintops, and construction of toxic dumpsites show up as positive indicators of growth because they increase GDP. Local production for local consumption is seen as less productive because it does not contribute much to the GDP. Unpaid household labor, care for the sick and elderly, and self-sufficient food growing within communities are not counted as assets since they do not contribute to the GDP. The GDP conveniently leaves out the actual costs of economic growth to society in the present and in the future. Applying such a standard of measurement to society’s growth has led to gross distortion of economic priorities and resource allocation.
The GDP treats overuse of any resource as income rather than depletion. Moreover, GDP reveals nothing about who benefits from the economic boom. It makes no distinction between production of goods and services that are necessary and would actually help the poor, on one hand, and the production of luxury goods that are demanded by the rich to live an extravagant way of life, on the other hand. GDP is therefore a misleading and a useless indicator to measure a society’s true progress.174
The social movements and critics that oppose current globalization, on the other hand,
perceive the current reality from an entirely different perspective. Their primary focus is the
173 GDP is the sum of the value of finished goods and services produced by a society during a given year. It is the wealth produced annually. GDP measures the national income of a country. Daniel Little, The Paradox of Wealth and Poverty: Mapping the Ethical Dilemmas of Global Development (Boulder, Colorado: Westview Press, 2003), 52. 174 Cavanagh and Jerry Mander, Alternatives to Economic Globalization, 199-202. poor people and the ordinary unskilled workers. Their analysis suggests that problems of inequality and poverty are growing deeper for these people. They measure true progress based on the total well-being of all people and of nature. In our contemporary world a relatively few wealthy people enjoy unimaginable wealth, while more than two million children under the age of five are underweight due to lack of proper nourishment. Some fourteen million children die each year from hunger-related diseases. They also see a world that is fast eroding the values of trust, human relationships, concern for fellow human beings and social responsibility. They fear the scenario of transnational corporations becoming more powerful than the sovereign governments and controlling the economic priorities and policies of a country. The current form of globalization, they insist, is governed by greed for more profit as the primary operative value. A system governed by these values would not work to bring sustained economic prosperity for all people, especially the poor.175
Hence, critics of neoliberal globalization raise five main concerns: 1. The guiding rules of globalization are unfair and they are designed to benefit the advanced industrial countries. 2. It promotes and prioritizes material values over all other values like concern for the environment or social responsibility. 3. It has taken away much of the developing countries’ sovereignty and their ability to make decisions and to prioritize their action plans.
4. The benefits of globalization have not reached all people; rather there are many losers in both developed and developing countries. 5. The Washington Consensus model of development that has been pressed upon the developing countries is inappropriate and is damaging the economy and culture of developing countries.176
I hold that a more realistic and reasonable position would be to argue that globalization produces both winners and losers between and within countries. Globalization has reduced the number of people living in extreme poverty in countries like China, India,
175 Ibid., 21-23. 176 Stiglitz, Making Globalization Work, 9. 63
Uganda, and Vietnam. At the same time, more than 2 billion people are left out from the process and benefits of globalization. Most of the people in Africa and in the former Soviet
Union are not benefiting from globalization. For these people globalization is not working.177
Many of the least developed countries (LDCs), mostly sub-Sahara countries, which are burdened with poverty, illiteracy, civil strife, sickness, geographical disadvantages, poor governance, external debt and lack of technology, have been excluded from sharing benefits of globalization.178
Globalization is therefore not a neutral, inexorable, and homogenizing process,
affecting all groups, countries, and continents in the same way. Some nations and people are
benefiting from it more than others. The main groups that are adversely affected by current
globalization are the indigenous peoples, small farmers and peasants in developing countries,
and unorganized and non-unionized daily casual workers, unskilled women workers, and
migrant workers. The countries and workers who have little or no resources, infrastructure,
skills, formal education, trade negotiators and global networks are not gaining from
globalization.179 Fernando Franco, in analyzing globalization in India from the perspective of
subalterns and poor, rightly observes that neo-liberalism has caused a considerable retreat of
the state from its social obligations to the poor. This has affected and has intensified the
suffering and exclusion of the subaltern people. For example, as he observes, “as health,
education, and sanitary services –including water distribution—are privatized, the access of
subalterns to these services become more and more limited.”180
I analyze the outcome of globalization from the perspective of two groups: the
unskilled workers and small farmers. I assert that current globalization has not allowed these
177 A World Bank Report, Globalization, Growth, and Poverty, 1-2. 178 World Commission, A Fair Globalization, 38. 179 Wiarda, “Has the ‘End of History’ Arrived, 70-73. 180 Fernando Franco, “Globalization: The Search for a Christian Standpoint,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 193. groups to overcome their poverty, exclusion and inequality.
Unskilled workers caught in the downward wage spirals, both in the North and the
South, and millions of farmers in the developing world, driven away from their lands, are losers in the process of globalization. It is hard to argue that it has benefited ordinary workers when their real wages have barely risen and most of them have been reduced to temporary work without any other benefits and support either from government or labor unions.
4.1. Globalization and Poverty
Is market access really an effective way to relieve global poverty? Does globalization spread relative poverty? These tricky questions have generated a lot of dispute and contesting counter-arguments among pro-globalists and its critics. There are intense debates about the exact numbers of poor people and how their living standards and economic conditions are changing over the last three decades. Many anecdotes and narratives are cited to prove either the failure or success of globalization in combating poverty. There are numerous statistical surveys that both camps use to support their conclusions.
The pro-globalists insist that economic globalization is the best formula for an unprecedented material prosperity across the world and the sure means to fight world poverty. Their basic contention is that free trade and liberalization encourages competition and therefore efficiency. This in turn leads to economic growth and improvement in living standards and thereby reducing poverty and narrowing of income inequalities between countries.181
According to World Bank economists Shaohua Chen and Martin Ravallion absolute poverty is declining. It has reduced to 1.1 billion people in 2001, down from 1.5 billion in
1981. According to them 93 percent of the world’s extreme poor live in East Asia, South Asia and sub-Saharan Africa. The numbers are falling in East Asia and South Asia but they are
181 Kiely, The Clash of Globalizations, 136-37. 65 rising in sub-Saharan Africa. However, the precision of the World Bank figures have been questioned in heated debates. The World Bank has relied on household surveys.182
The critics portray the current globalization as “casino” capitalism and the race-to-
the-bottom. Globalization, they argue, not solution to global poverty, rather it creates and
worsens the situation of global poverty. They argue that international trade degrades working
conditions in order to increase exports and national governments deny labor rights and
provide little political support for workers.183 The goal of agents of current globalization is
not promotion of pro-poor growth and sustainable economic development, but rather
maximization of profits. It is a highly speculative economy that threatens even a largest
economy. They cite the economic crises of Mexico, Korea and Argentina, in which speculative economic booms evaporated and brought them to their knees within a few days.
They argue that globalization has eliminated social welfare programs and labor security policies. Hence it has made the poor more vulnerable and scores of workers insecure in their jobs. According to them globalization is a ‘race to the bottom.’184
4.1.1. Meaning of Poverty
Before entering deeper into the analysis of impacts of globalization on global poverty
it may be useful to clarify the term poverty. Though poverty is routinely defined as the lack
of what is necessary to meet basic needs necessary for a healthy life, it is a multilayered term.
182 Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York: Penguin Books, 2005), 22. 183 It is argued that through the rise of export-processing zones (EPZs), which are on rise in the developing countries, globalization is exploiting developing poor countries. An export-processing zone is usually a specified area within a country that specializes in manufacturing exports. Companies are given incentives to invest in these zones, such as duty-free imports of inputs, tax concessions, controls on the labor force, and export subsidies. The zones attract more workers by offering more employment opportunities and higher pay but other working conditions and labor rights are weaker, such as restrictions on trade union rights and lack of enforcement of labor legislations. Thus it encourages relatively short careers by not upgrading workers skills. The increased rise of the EPZs and the growing visibility of sweatshop labor have led to the argument that global mobility has led to a ‘race to the bottom’. The core argument of the ‘race to the bottom’ argument is that capital is now so mobile that it invests where it can make more profit from low costs. Kiely, The Clash of Globalizations, 166-67; Robert J. Flanagan, Globalization and Labor Conditions: Working Conditions and Worker Rights in a Global Economy (New York: Oxford University, 2006), 72. 184 Scholte, Globalization a Critical Introduction, 27. It is “interlocking multidimensional phenomenon.”185 Most often the term poverty is used
with different connotations and meanings. These include: low income; having little or poor-
quality land, housing, livestock or other productive assets; having little or low education;
being excluded from decision-making processes that have an impact on their life; being
subjected to arbitrary discrimination on the basis of gender, ethnicity or social status.186
There are at least two approaches to identify and measure poverty. One is through
income distribution. This metric identifies those families whose income is below the income
that is necessary to satisfy the basic human need for food, clothing, shelter and health.
According to the World Bank, if the income of an individual is lower than $1 per day
(according to Purchasing Power Parity (PPP)187) then the person is “absolutely poor.” The other paradigm is a substantive approach to human well-being in terms of health, longevity, freedom, and education. In this approach poverty is seen as the failure to achieve full human
flourishing.188
Poverty can broadly, based on the degree of poverty, be categorized into three:
absolute poverty, moderate poverty and relative poverty. Absolute poverty or extreme
poverty is found where households and individuals lack minimum basic essentials to survive.
People living in absolute poverty struggle daily to have one decent meal per day. They live as
undernourished and disease-ridden without food, clean and safe drinking water, sanitation,
basic health care and proper shelter. Their children are deprived of basic health and education facilities. According to the World Bank standard, such people live on less than $1 per day per person. Absolute poverty is mostly concentrated in East Asia, South Asia and sub-Saharan
185 Deepa Narayan and others, Voices of the Poor: Can Anyone Hear Us? (New York: Oxford University Press, 2000), 31. 186 Neil McCulloch, L Alan Winters, and Xavier Cirera, Trade Liberalization and Poverty: A Handbook (London: Centre for Economic Policy and Research, 2001), 38. 187 Purchasing Power Parity (PPP) exchange rates are adjusted to take into account that the cost of living tends to be lower in developing countries than developed countries. Thus the PPP dollar is not the same as a US dollar. Kiely, The Clash of Globalizations, 138. 188 Little, The Paradox of Wealth and Poverty, 55. 67
Africa. It is rising in Africa in staggering numbers. Moderate poverty refers to conditions where basic needs are met but just barely. According the World Bank, the income of such people is between $1 and $2 per day per person. Poverty is considered relative when a household’s income level is below a given proportion of average national income. In developed countries relatively poor people lack access to quality education and health care, recreational facilities and annual holidays.189
It is also helpful to analyze poverty from poor people’s experiences. A research
report, done for the World Development Report 2000/2001, gathered narratives of the
experiences of more than 60,000 poor people from 60 countries around the world. According
to their study poor people see poverty as multidimensional, that is, including a lack of sufficient income, education, health, and food. They are excessively vulnerable and powerless. Often they are humiliated and experience low self-esteem. Poor people constantly experience hunger, pain, exclusion, rejection, isolation, loneliness, powerlessness, marginalization, and vulnerability as a result of their poverty. Poverty therefore includes not only material aspects, but also psychological effects. Overcoming poverty therefore involves
not only promoting material well-being but also social well-being, self-respect, peace,
security and confidence in the future. It involves freedom of choice and action. One of the
most common and universal aspirations of the poor is to have decent work to gain their
livelihood.190
Poor people feel that they are trapped into inescapable poverty because of multiple
disadvantages. They are disadvantaged by lack of information, education, skills and self-
confidence. These constrain the development of their capacities and lead to their further
marginalization in society. Their lack of knowledge and information about existing services,
rights, privileges, programs and economic opportunities renders them powerless and often
189 Sachs, The End of Poverty, 20. 190 Deepa Narayan and others, Voices of the Poor: Crying Out for Change (New York: Oxford University Press for the World Bank, 2000), 22-23, 34-35. without hope. Poor people’s isolation from information is compounded by their lack of access
to communication and information technology – telephones, Internet, television, and
computers.191 Poor families therefore lack the capacity to cope with global changes and
structural adjustments and to benefit from global opportunities. Their vulnerability leads to a
downward spiral and further pushes them into the deeper traps of poverty.192
4.1.2. Growing Poverty
Neoliberal globalists promise that with the expansion of global trade and investment
more and more people will experience prosperity and solidarity. The World Bank believes
that economic development and poverty reduction go hand in hand. It claims that
“globalization generally reduces poverty because more integrated economies tend to grow
faster and this growth is widely diffused.”193 In theory we can reasonably argue that
globalization, with advanced technology and better managerial skills, can improve input production by increasing the quantity, quality, and discovering new utilities of the existing
products. One can find some truth in the argument that reduction of barriers on trade and
investment across the borders helps developing countries, particularly those countries that
produce labor-intensive goods, to downsize their poverty. It is also possible that integration
of local financial markets with global financial markets can enhance the efficiency of
financial intermediation. This would facilitate the capacity of poor countries to invest more in
improving their physical and human capital infrastructure and capabilities. However, this
theoretical link between globalization and poverty reduction takes for granted that there is
free and equal access to world markets for all people and all countries.194
David Dollar and Aart Kraay, strong advocates of neoliberal globalization, in their
report to the World Bank’s Development Research Group, Growth is Good for the Poor,
191 Ibid., 237-39. 192 Watkins, The Oxfam Poverty Report, 12-13. 193 A World Bank Report, Globalization, Growth, and Poverty, 1. 194 T.N. Srinivasan, Trade, Growth and Poverty Reduction: Least-Developed Countries, Landlocked Developing Countries and Small States in the Global Economic System (London: Commonwealth Secretariat, 2009), 12-13. 69 vehemently argue that globalization is a powerful force for poverty reduction. They claim that there is correlation between opening one’s market to international trade and investment and faster growth. This trend can be clearly seen in the accelerating annual per capita growth rate from one percent to 5 percent of those countries that embraced globalization. However, it remained at one percent for the non-globalizing countries. They demonstrate that since 1975 poverty in the world has been reduced as China and India opened their economies to global market. In 1977-78 there were roughly one billion people in these two countries who were living on less than $1 per day (at PPP) by 1997-98 the estimated number had fallen to about
650 million. Furthermore, they say that since the 1980s the number of people living in absolute poverty has declined by 200 million in the world. Above all, the integration of poor countries with rich countries has provided many opportunities for poor people to improve their living standards. They claim that globalization, liberalization and free markets are only effective routes for poverty reduction.195
Critics of globalization dispute claims of pro-globalists and vehemently argue that
globalization “creates a more affluent world for some at the expense of growing poverty for
others.”196 There are roughly one billion people around the world, one sixth of humanity,
who are too ill, hungry or destitute and are struggling to survive. They are deprived of the
opportunities of global economic prosperity. These people are the “poorest of the poor” of the
planet. Most of these people are living in developing countries. Then we have the poor people, roughly 1.5 billion, who struggle in cities and countryside to make ends meet. They lack safe drinking water and hygiene. The extreme poor and the poor make up around 40 percent of humanity.197
Critics assert that the global spread of trade, investment, production, market and
195 David Dollar and Aart Kraay, “Growth is Good for the Poor,” in The Globalization Reader, 2d edition, ed. Frank J. Lechner and John Boli (Oxford, UK: Blackwell Publishing, 2004), 177, 182. 196 Held and McGrew, “An Introduction,” 28-29. 197 Sachs, The End of Poverty, 18. technology adversely affect families, local communities and local small enterprises by undermining choices and eliminating diversity. Foreign investment replaces local small-scale business and creates sweatshop export industries. The global agro-business firms displace farmers from their land and from their livelihood. The critics insist that globalization largely produces negative consequences by widening the gap between the poor and rich and deepening structural inequality.198 Felix Wilfred, an Asian theologian, observes that globalization and free trade has led people and society toward the culture of forgetfulness of the poor. He states that the condition of the poor in a globalizing world is worse than slavery or outcastes because the outcastes or slaves at least knew that they were wanted, but the poor today are told that they are a “burden and simply redundant.”199
Oxfam raises some serious concerns about globalists’ claim that the current pattern of globalization has reduced poverty. Oxfam challenges the claims of Dollar and Kraay and asserts that there is substantial evidence that the current pattern of globalization is reinforcing poverty and inequality in the world. The falling income growth of the rural poor in India after the 1990s, the widening income gaps between coastal and interior areas in China, and the growing inequality in most countries in Latin America are clear signs that globalization has not worked for the poor. Poor people are often excluded from market opportunities as they lack productive assets, infrastructure, education and proper skills. Oxfam maintains that the nucleus of the debate about globalization should be how to use the accelerating global economic growth as an instrument to reduce poverty in the world. They argue that current globalization must also pay attention to the just distribution of wealth to the poor and the development of human capital so that the poor can most effectively participate in global economic opportunities. The poor benefit from global free trade and the liberalization of markets only when governments address issues of education, health, infrastructure, and food
198 Schaeffer, Understanding Globalization, 10-11. 199 Felix Wilfred, Asian Dreams and Christian Hope: At the Dawn of the Millennium (Delhi: ISPCK, 2000), 47. 71 supply to the poor. The poor need to be empowered with proper capacities and skills to participate in the global economy and to share in the benefits of globalization.200
Economists like Dollar and Collier, Bhalla, Sachs, Bhagwati, and others who promote
current globalization often quote the economic growth of Japan, Korea, Hong Kong,
Singapore and Malaysia as examples to support their claim that strong integration with global
markets brings greater prosperity. However, they fail to mention that the reality of East Asia
is far more complicated than what they present. These economies had retained a significant
role for governments to intervene strategically in the domestic and international marketplace
when they opened their economies. They did not opt for a complete liberalization and
deregulation. Governments of these countries made sure that benefits of growth are widely
distributed and shared. Governments took an active role and intervened carefully in planning
and in advancing technology rather than leaving the economy completely to markets to
decide.201 The real story is that many countries that have achieved success from the global
market system did not follow the World Bank’s or the IMF’s neoliberal or the Washington
consensus strategies. Rather, they followed “a purposeful medley of state intervention – government policies that steered and subsidized enterprise, that suppressed domestic interest rates and controlled foreign capital, that protected their infant industries from the raw market forces…., that provided socialistic assistance to their general populations.”202 East Asia’s
brutal experience of economic crisis due to speculative free flow of foreign capital has taught
to the world that the Washington Consensus method of purely market-based determinations
can be disastrous to a country.203
4.1.3. Reasons for Global Poverty
There are at least three schools of thoughts among neoliberal globalists explaining
200 Oxfam, “Growth with Equity is Good for the Poor,” in The Globalization Reader, 2d edition, ed. Frank J. Lechner and John Boli (Oxford, UK: Blackwell Publishing, 2004), 186-87. 201 Maskus, “A System on the Brink, 103; Stiglitz, Globalization and Its Discontents, 91-92. 202 Greider, One World, Ready or Not, 276. 203 Stiglitz, Making Globalization Work, 31-35. main reasons for some countries inability to benefit from the current global economy.
One school argues that some countries are marginalized and remain poor because of
their poor policies and poor infrastructure, weak institutions and corrupt governance. The
only alternative for these countries is to “join the club” by opening up their markets to
international trade and capital investment along with improving their infrastructure and
cleaning up their political and other institutions.
Second school blames adverse geographical location and climatic conditions. Some
countries by their virtue of geographical location, are prone to diseases like malaria and to
frequent droughts. Moreover, because of their geographical locations (e.g. being land locked
or mountainous), transportation is difficult and expensive. These conditions discourage
international firms from investing in these countries.
Third school argues that as a result of poor policies some countries have lost the opportunity to industrialize. They hold that these countries have “missed the boat” as
international firms have already settled in other locations with good infrastructure and labor-
abundance.
All three schools suggest that if some countries are marginalized and poor, despite
embracing neoliberal globalization, the problem lies primarily with respective countries and
not with current globalization. These countries and regions did not adapt correct polices of
globalization. They did not fully embrace free market policies by deregulating their labor
markets and minimizing the role of the state purely to education and training of its people for
the labor market. The only available and effective solution is to fully adopt neoliberal policies
that should rule every aspect of the economy, not just basic production sectors and service
trade but also health, education, social security, water, energy, transportation and
communication, along with some necessary improvements in their infrastructure and 73 institutions.204
Though there is some truth in each of the above-mentioned arguments, they
nevertheless fail to address the root cause for global poverty in a globalized world. They fail
to explain why some countries still remain poor even after both opening their economy to the
global market and establishing fairly good governance and sufficient infrastructure. There
have to be some other reasons beside these. I mention five of them:
First, a key cause for the expanding and continuing poverty in developing countries is
poverty itself. The existence of extreme structural poverty paralyzes the ability and capacity
of a country and people to get even their first foot on the ladder of development. When
people struggle to survive and to feed their children each day, they cannot think of investing
their meager income in developing their human capabilities. The existing poverty also leads
to social exclusion of the poor, preventing them from equal and effective participation in
economic life.205 This is also the case with developing countries. Most of the developing
countries lack significant levels of human resources, transport and communications
infrastructure, and effective economic and social institutions that developed countries
enjoyed prior to current globalization. Most of the governments in developing countries are
struggling to feed their large hungry population and provide basic health care to their people affected by HIV+ AIDS, T.B or Malaria. These governments have no capital to invest in building their infrastructure and developing their human capital.206
Jeffrey Sachs points out that globalization and markets can be powerful means for the
economic development of a country only when the country has a basic infrastructure and
when all people of that country have good education, sufficient food to eat and safe water to
drink, and access to basic health facilities. “Without those preconditions, market can cruelly
204 A World Bank Report, Globalization, Growth, and Poverty, 7; Kiely, The Clash of Globalizations, 2. 205 Narayan and others, Can Anyone Hear Us?, 229. 206 Sachs, The End of Poverty, 195-96. bypass large parts of the world, leaving them impoverished and suffering without respite.”207
The second reason is disadvantageous geographical location. Several poor countries have failed to enter global markets because of their landlocked geographical location which lack navigable rivers, long coastlines or good natural harbors. Hence they face crushing transport costs and economic isolation. A landlocked, malaria-infested country, even one with a good government and infrastructure, cannot be competitive in the global market.208
Third, a lack of proper governance is the third reason for the continuation of poverty.
Many developing governments have failed to create a proper infrastructure that can attract
private investors to invest and to maintain a conducive and secure environment that promises
peace and protection of private property. The rising corruption, internal war, and unrest in a
country can cause economic disasters. Many poor people experience government institutions
as ineffective, corrupt and disempowering. Many government projects to protect the poor and provide basic services for them contribute too little for the poor to escape from their poverty.209
Fourth, lack of innovation is the fourth reason. Since the poor countries often have
limited markets for their goods, and since most of their customers are poor, there is less
incentive for the government and entrepreneurs to invest in research and innovations.
However, the rich countries and MNCs, with their capacity to reach global markets and
affluent customers, are ready to invest a huge amount of money in the development of new
technology and research. This further raises their productivity and expands their markets. The expansion of a market base and growing demand for their products further encourages more investment in new innovations. Economists call this pattern a chain of innovation and expansion. Rich countries today invest more than 2 per cent of their GDP in research and development process. The outcome of this unequal capacity among countries and firms to
207 Ibid., 3. 208 Ibid., 57-58; A World Bank Report, Globalization, Growth, and Poverty, 39-40. 209 Sachs, The End of Poverty, 59, 60; Narayan and others, Can Anyone Hear Us?, 83, 92-93. 75 invest in research and new technologies is that rich countries today control the production, prices and supply of most of the commodities in the global markets. For example, the top 20 countries account for 98 percent of all patent rights.210
Fifth, international indebtedness: International indebtedness refers to money owed by
governments on a global scale to private and public banks and international financial institutions such as the IMF and the World Bank. Indebtedness, which is a result of free global investment, has become one of the main causes for the continuing and deepening of poverty in developing countries. The debt crisis became acute due to two major developments in the 1980s: the rising interest rates in the United States to fight inflation in the U.S. and the falling commodity prices for exported goods from the developing countries. Increasing costs and falling incomes made it difficult for debtors to repay their loans.211
In the 1980s and the1990s, most developing countries in Latin America, Africa, Asia and Eastern Europe were trapped under huge debts. They sought the help of the IMF and the
World Bank to grant them more loans to clear their debts and to maintain lines of commercial credit. The IMF and the World Bank agreed to grant them loans, but under the condition that they restructure their economic system in line with the neo-liberal market system. So the debt crisis was indirectly used to impose neo-liberal ideology on developing countries. That meant further reductions in the already low levels of social security, a shift of production to more export cash crops to sell at international markets, and the diversion of a large percentage of their export earnings to debt payments. Many governments were forced to reduce or eliminate subsidies for food, fuel, and transport. The governments were also forced to cut back on public services, particularly on education and health care. These affected the poor people more as they were forced to pay more for the basic commodities.212 This further deepened
their poverty instead of solving their problem. These countries were taking out more loans to
210 Sachs, The End of Poverty, 56-62. 211 Schaeffer, Understanding Globalization, 95-96. 212 Ibid., 111. repay the old loans, producing a “debt spiral” leading to deeper debt. Most Sub-Sahara
African countries use more than 20 percent of their export earning to pay debt services besides paying debt interest and the debt principal. This has drained the ability of poor countries to invest in productive and sustainable economies.213
The crisis of indebtedness is not only due to over-borrowing by developing countries beyond their capacity to repay, but also a result of over-lending by developed countries.
Lenders encourage indebtedness because it is profitable for them. Developing countries are often pressured to over-borrow.214
4.2. Globalization and Social Justice
Social justice is another major contentious issue surrounding globalization. Do people
have equal opportunities to participate in the global economy? Do people fairly share costs
and benefits of globalization? Is globalization a force toward social equity or is it leading to
further marginalization and exploitation? Does globalization sacrifice equity in the name of
market efficiency?
There is a difference between poverty and inequality. Poverty refers to the failure by
an individual or household or a country to achieve a given minimally acceptable standard of
living. Equality refers to the distribution of well-being across individuals or households or
countries. It is therefore possible to have an unequal society where no one is poor or to have
an equal society where the poor exist.215
There are differing opinions about the meaning and the measurement of equality and
inequality in the world today. Inequality is a difficult concept to grasp. Economists study
inequality by looking at distributional patterns of income within sectors of modern
economies. For most part they use national income statistics to analyze inequality. Justice
213 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 144-45. 214 Stiglitz, Making Globalization Work, 216; Schaeffer, Understanding Globalization, 98. 215 McCulloch, Trade Liberalization and Poverty, 49. 77 demands fundamental equality. The fundamental equity, based on the principle of impartiality, requires equal respect for each person as an equal and autonomous person.216
The term inequality is commonly used to describe “imbalances in economic opportunities, benefits, or results between the rich and the poor, skilled and unskilled workers, women and men, whites and minorities, or developed and developing countries.”217 Nevertheless, it is a complex term with a variety of possible meanings.218
I argue that the demand for justice does not mean uniformity but fairness. It does not mean that everyone must have the same income. It is just that people who contribute more to the economy must be able to earn more.219 However, an excessively large disparity between the salaries of a CEO of a major corporation and that of its workers cannot be justified as just.
It is reported that in 2006, the CEOs of major corporations made annually, on average, $11.3 million, as much as 411 times more than an average worker.220 Justice demands that all people, irrespective of class, gender, race, nationality or location, have equivalent opportunity and access to resources to develop their potential.221 Fair institutions must provide equality of opportunities to fair access to education and health care, sufficient food, decent human
216 Stefan Gosepath, “The Global Scope of Justice,” in Global Justice, ed. Thomas W. Pogge (Oxford, U.K.: Blackwell Publishers, 2001), 148-49. 217 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 121. 218 Three major currents of thinking about global economic equality are: First, the utilitarian tradition that promotes the idea of unregulated markets as the essence of freedom and rejects the idea of relational equality. According to this tradition, economic inequalities are natural results of business and are even valuable for the market and society. It holds that inequality in wealth and income need not be solved by political intervention. The market ought to settle all matters of distribution. Second is the liberal egalitarian tradition. It rejects the idea that inequality is natural and desirable. Figures like John Rawls and Ronald Dworkin argue that it is impossible to attain justice without some measure of equality. They demand that there should be sufficient state regulation in the market economy. They support the idea of redistribution of income. Third consists of radicals and Marxists. They hold that equality and justice cannot be attained within capitalism. Marx and his followers argue that inequality and lack of freedom are core ideas of capitalism. They propose that only in a socialist model can one achieve economic equality. Ibid., 121-123. 219 Helen Alford, “Equitable Global Wealth Distribution: A Global Public Good and a Building Block for the Global Common Good,” in Rediscovering Abundance: Interdisciplinary Essays on Wealth, Income, and Their Distribution in the Catholic Social Tradition, ed. Helen Alford, Charles M.A. Clark, S.A. Cortright, and Michael J. Naughton (Notre Dame: University of Notre Dame Press, 2006), 237; Simon Caney, “Cosmopolitan Justice and Equalizing Opportunities,” in Global Justice, ed. Thomas W. Pogge (Oxford, U.K.: Blackwell Publishers, 2001), 124. 220 Daniel G. Groody, Globalization, Spirituality, and Justice: Navigating the Path to Peace (Maryknoll, New York: Orbis Books, 2008), 18. 221 Ibid. living conditions, and a fair distribution of productive assets.222 This means that arbitrary
privileges to some at the exclusion of a majority from the benefits of globalization must be
prevented. Here unequal outcomes between two individuals can be fair “provided that all
parties have minimum acceptable living conditions and that the inequality is not a result of
structural hierarchies of opportunity that accord some parties an inbuilt advantage over
others.”223
The measurement of inequality is a highly debated issue. Findings on global
inequality vary considerably depending on the approach one uses to analyze it. The
measurement of inequality is not a value free judgment. The use of statistics to support the
argument that globalization reduces inequality or widens it is dependent on what method of
measurement one uses. The proponents of globalization, for example, focus on inequality
between individuals and use aggregate measurements of poverty and inequality. They take
the entire world population as a single unit of analysis and show that the gap between rich
and poor is decreasing. The improvements in the lives of millions of people, not only in terms
of income but also education, health, and life expectancy, are clearly signs that globalization
is reducing inequality. On one hand, those who argue that economic globalization is widening
the gap between rich and the poor within and across countries use disaggregated data on
selected vulnerable segments of society that are at greatest risk, disregarding the total gains
accumulated by the whole. They use absolute rather than relative measures of inequality.
They argue that, far from reaping the benefits of globalization, many are affected negatively
by trade and capital liberalization.224
Most analyses on inequality rely on official government statistics such as gross domestic product per capita. Economists study inequality by looking at distributional patterns of income within sectors of modern economies. For the most part these studies use national
222 Little, The Paradox of Wealth and Poverty, 95. 223 Scholte, Globalization a Critical Introduction, 234. 224 Barrera, Globalization and Economic Ethics, 10-11. 79 income statistics. Income in these surveys refers to the money that comes from employment.
However, the scope and precision of such numbers has varied over time. These variables have resulted in different measurements of inequality. In 1990 the United Nations introduced a broader measure, called the Index of Human Development. It attempts to measure not only income or wealth but also various “quality of life” indicators such as literacy, health care, education, access to technology, and participation in the political decision making.225
Amartya Sen argues that the main issue with regard to inequality is not just whether the poor gain something from globalization but rather global justice. The real issue is fair distribution of globalization’s benefits and fair opportunity.226
The neoliberal globalization supporters assert that the global economy functions as a
solution to global inequality. They hold that the trickledown effect of globalization will lift
up the poor from their misery. The East Asia miracle and the progress in China and in India,
they claim, are clear examples of how free market policies can reduce poverty and inequality
in a country. The presence of poverty and inequality in free market economies are temporary
transitional conditions that will evaporate as a country becomes more and more integrated
into the global economy. The globalists insist that market forces will eventually correct the
problem of inequity and unemployment if there is no interference from the government.
People need to be patient and allow the market to work. In the long run, all people will
benefit from globalization. Moreover, they explain that the existence of inequalities is a result
of differences in individual capacities and talents and not due to globalization. They argue
that the wealthy benefit from globalization because they have necessary skills that are useful
in the market and that the majority suffers because they lack marketable skills and talents.
Critics, on the other hand, blame globalization for deepening and expanding the evil
225 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 123-24. 226 Sen, “How to Judge Globalism,” 20-21. of inequality in the world.227 They vehemently argue that globalization “creates a more
affluent world for some at the expense of growing poverty for others.”228 Contrary to its
promise of the rising tide lifting all boats, globalization has become a profitable oligopoly of
certain global elite entrepreneurs. It is generating unbalanced outcomes, both between and
within countries. Too many people do not have the required resources, knowledge,
infrastructure, and capabilities to participate in and share the benefits of globalization. A vast
majority of women and men have failed to meet their simple and legitimate aspirations for
decent jobs and a better future for their children.229 So, the have-nots are becoming have- nothings and the haves today, though small in number, are becoming have-mores.230
Afore mentioned claims of critics of globalization are supported by the findings of
two international organizations: a report by the ILO in 2004 and the United Nations
Development Reports of recent years. The World Commission on the Social Dimension of
Globalization, an organization established by the ILO, in its 2004 report states that there are
deep-seated imbalances in the current workings of the global economy. The benefits are
unequally distributed, both within and between countries. It notes that, although many of the
problems and evils like poverty, the lack of decent work, the denial of human rights and
human dignity existed long before the present phase of globalization, “there has been
growing exclusion and deprivation in certain regions of the world. For many, globalization
has dislocated traditional livelihoods and local communities, and threatens environmental
227 They argue that current globalization is maintained and expanded by deepening global inequality through the marginalization of developing countries. Instead of creating one world, the skeptics argue, globalization is deepening North-South chasm. They hold that it is a new mode of Western imperialism, as most of developing countries are bound by the conditions and rules the IMF and the World Bank, which are controlled by developed countries. Rich developing countries try to maintain their supremacy over developing countries through various mechanisms and international institutions. David Held and Anthony McGrew, “The Great Globalization Debate: An Introduction,” in The Global Transformations Reader: An Introduction to the Globalization Debate, 2d edition (Cambridge, UK: Polity Press, 2003), 31. 228 Ibid., 28-29. 229 World Commission, A Fair Globalization, x. 230 Samli, Globalization from the Bottom Up, 2-3. 81 sustainability and cultural diversity.”231 So it notes that the debate of globalization is
becoming a debate on social justice in a global economy.
The United Nations Development Report of 1999 illustrates that there is an uneven
distribution of the opportunities associated with economic and technological globalization
between countries. It shows that inequality between countries is on the rise. It notes, “55
countries, mostly in Sub-Saharan Africa and Eastern Europe and the Commonwealth of
Independent States (CIS), have declining per capita incomes.”232 The past decade, it states,
has shown an increasing concentration of income, resources and wealth among a few elite
individuals, corporations and countries. For example, “The world’s 200 richest people more
than doubled their net worth in the four years to 1998, to more than $ 1 trillion. The assets of
the top three billionaires are more than the combined GNP of all least developed countries
and their 600 million people.”233
In 2003 once again, The Human Development Report stated that some 54 countries
are poorer now than in 1990. In 21 countries a larger proportion of people are going hungry.
In 14 countries more children are dying before age five and in 12 countries primary school
enrollment rates have fallen. And in many countries things have simply stagnated—neither worsened nor improved. At the turn of the millennium more than 1.2 billion people were
struggling to survive on less than $1 a day and more than twice that number, around 2.8
billion, live on less than $2 a day. Living on one USA dollar a day does not mean being able
to afford what one USA dollar would buy when converted into a local currency, but the
equivalent of what one USA dollar would buy in the United States.234 The UNDP report of
2010, while acknowledging the economic progress in developing countries, also points out
231 World Commission, A Fair Globalization, 3. 232 United Nations Development Report 1999, “Globalization with a Human Face,” in The Global Transformations Reader: An Introduction to the Globalization Debate, 2d edition, ed. David Held and Anthony McGrew (Oxford: Polity, 2000), 342. 233 Ibid., 43. 234 Human Development Report Office, Priority Challenges in Meeting the Goals, 33, 39-40. http://hdr.undp.org/en/media/hdr03_chapter_2.pdf (accessed November 5, 2010). that the gap between rich and poor countries is widening. It records that the richest per capita
country today, Liechtenstein, is three times richer than the richest country in 1970. The
poorest per capita country today, Zimbabwe, is about 25 percent poorer than the poorest
country in 1970, which was also Zimbabwe. It is sobering to see, amid enormous material
prosperity in developed countries, that the real average income of people in 13 countries in
the bottom quarter of today’s world income distribution is lower than in 1970.235
Inequality is not only a problem between developed and developing countries, but
also within a country. In developing countries like India, North Korea, the former Soviet
Union and China the gap between rich and poor is increasing. For example, in India according to the World Bank estimate there are around 456 million people (41.6% of the total
Indian population) who now live under the global poverty line of US$ 1.25 per day (PPP).
Most of the disparity is related mainly to wage inequality between skilled and unskilled workers. This has directly contributed to the growing inequality within India. Since Indian
liberalization is mainly concentrated in the service sector (like information technology,
communication and entertainment), trade liberalization has definitely created some pockets of
prosperity in India. A small group of professional IT workers are receiving enormous
salaries. However, the agriculture sector on which more than 70 per cent of the population
depends for their livelihood is experiencing a crisis. The falling prices of agricultural
commodities and increasing prices of inputs and other services have contributed to the
increasing distress of the rural farmers.236
To summarize, one cannot hold up globalization as the original cause of inequality in
the world. However, it has surely contributed to the process of widening the gap between the
rich and poor. It contributes at least in the following ways: first, different countries, classes,
genders, races, and other groups do not have fair and equal opportunity to participate in the
235 Ibid., 42. 236 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 125-26. 83 global market. Second, guided by neoliberal ideology it often undermines the redistributive mechanisms that were present in the first three-quarters of the twentieth century. Third, globalization weakens the capacity of traditional, territorial based social movements and people’s organizations -- trade unionism and anti-colonialism -- to campaign for a fair distribution of market surplus and benefits.237
In the following section I discuss the situation of two groups who experience growing segregation and injustice in the current globalization: the unskilled casual workers and the marginal poor farmers in developing countries.
4.2.1. Globalization and Labor
In this competitive and speculative neoliberal global market economy laborers feel
economically threatened and insecure not only because they do not have decent jobs but also
due to the rapid transformation, downsizing, streamlining or obsolescence of their jobs by
globalization.238 One of the most dominant institutional features of neo-liberalism is the
power of capital over labor. This phenomenon is described by the term ‘financialization.’239
The mobility of capital is the defining characteristic of globalization and cause of worker’s predicament. The disparity between labor and capital is reflected in the rapid decline in unionizations in the private sector, the stagnation of real wages of workers, and growing inequality in income distribution between top CEOs and workers.240
The global restructuring of capitalism through the adaptation of free trade, neo-
liberalism, deregulation and privatization policies of government in most countries in the
world has weakened labor power considerably. All over the world workers are downsized and
237 Scholte, Globalization a Critical Introduction, 236-37. 238 Ibid., 331. 239 The financialization is guided by speculation rather than productive investments. Financialization creates a cycle of unproductive economic activity that must feed on itself. Michael E. Lewitt, The Death of Capital: How Creative Policy can Restore Stability (Hoboken, New Jersey: John Wiley & Sons, Inc., 2010), 117. 240 Victor D. Lippit, “Social Structure of Accumulation Theory,” in Contemporary Capitalism and Its Crises: Social Structure of Accumulation Theory for the 21st Century, ed. Terrence McDonough, Michael Reich, and David M. Kotz (Cambridge/ New York/ Melbourne/ Madrid/ Cape Town/ Singapore/ Sao Paulo/ Delhi/ Dubai/ Tokyo: Cambridge University Press, 2010), 68. outsourced, and permanent workers are turned into contingent ones. The job security,
working conditions, workers representation, healthcare benefits, pensions, and other social
benefits have been minimized or dropped. Workers are reduced to mere commodities without rights other than to sell their labor power to employers, the buyers of labor power.241 Falling
real wages, increasing poverty and income inequality, increasing violations of workers’
rights, deteriorating working conditions, and rising unemployment and underemployment are
some of the common problems shared by workers throughout the world, both in developing
and developed countries.242
Capital as a whole, with its sole motive to increase profits, tries to control global labor
power through various strategies and designs. In global economy partnerships, joint ventures,
subcontracting, and temporary relationships with independent contractors increasingly blur
organizational boundaries. These arrangements help to transcend national boundaries in order
to exploit market advantages held by one partner or the other, achieve economies of scale or
to pool information together.243 One of the important moves in this direction is to create a
global pool of surplus labor beyond national boundaries. Capitalist economy by its very
nature looks for opportunities to maximize its profits by driving down wages and gaining
control over labor. In the past workers had some support from their government, since
through labor movements workers were able to demand from their governments to defend
their interests and rights. Governments had some labor protective regulations and laws on
working conditions, maximum working hours, minimum wages, and other workers’ rights.
However, under current neoliberal capitalism these rights are threatened and the bargaining
241 Jeremy Brecher, Tim Costello, and Brendan Smith, “Globalization and Its Specter,” in Globalization: The Transformation of Social Worlds, ed. D. Stanley Eitzen and Maxine Baca Zinn (Australia/Brazil/Mexico/ Singapore/USA/UK: Thomson Wadsworth, 2006), 33. 242 Cyrus Bina and Chuck Davis, “Dynamics of Globalization: Transnational Capital and the International Labor Movement,” in Labor and Capital in the Age of Globalization: The Labor Process and the Changing Nature of Work in the Global Economy, ed. Berch Berberoglu (Lanham/Boulder/New York/Oxford: Rowman & Littlefield Publishers, Inc., 2002), 171. 243 Wallace and David Brady, “Globalization or Spatialization?,” 135. 85 power of workers is weakened. Several governments, under pressure from international financial institutions and TNCs, have significantly compromised the labor protective regulations regarding wages, labor standards, labor unions, and other social welfare benefits.
Most of business agreements between governments and TNCs do not include worker rights.
Workers are increasingly experiencing a denial of their rights.244
The capitalists seek absolute control over the workers to achieve their goal of higher
profits. One of the ways used to achieve this is by restructuring the division of labor. In the
current global economy labor is controlled through spatialization and technocratic control.
Spatialization involves restructuring of the labor process so that different work tasks are done
in different locations without loss of profit or control. It is accompanied by the use of computers, information technology and technological expertise to organize and direct the labor process across spatially distant networks of organizations.245 Thus today “work is
deskilled and degraded so as to remove from it all discretion on the part of workers, who
might use that discretion to resist exploitation.”246 The main motive behind in the division of
labor, for example in the U.S. automobile industry, is not the decrease of wages, but rather to
overcome the resistance of a powerful skilled labor force which had exercised a great deal of
power over their work because of their knowledge and skills.247
Some economists have termed globalization as “flexibilization”. Workers in a global
market are expected to be more ‘flexible’ with regard to hours of work, wages, benefits, health, working conditions, safety standards and location of work. The demands of markets are the deciding factors in all these things. This has deteriorated the working conditions of workers, especially the less-skilled workers. Rising unemployment and job insecurity are the
244 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 178-79. 245 Wallace and David Brady, “Globalization or Spatialization?,” 133. 246 David Gartman, “Labor, Capital, and the Struggle for Control at the Point of Production,” in Labor and Capital in the Age of Globalization: The Labor Process and the Changing Nature of Work in the Global Economy, ed. Berch Berberoglu (Lanham/Boulder/New York/Oxford: Rowman & Littlefield Publishers, Inc., 2002), 30. 247 Ibid., 36. major fallouts of globalization, which affect other aspects of the lives of workers. For
example, it has heightened tensions in the household, and lessened available time to be with
their children and/or spouses/partners and time for leisure. Some of the consequences of the growing job tension and anxiety are the growing violence in society, increasing family breakdowns, and steady rise in suicides among young.248
In ruthlessly competitive and speculative casino-like global markets TNCs and
business firms are always in search of high-skilled and flexible professional laborers. It
results in the sharp decline and the closure or merger of low-skilled industries, which leaves
thousands of workers without work overnight. The unskilled and casual workers are the first
and most harshly affected group in this process. Since they neither have the required skills
nor necessary connections to make it to the fast-moving competitive global market, they
experience exclusion and powerlessness. Their jobs are “rapidly transformed, downsized,
streamlined or made obsolete by globalization.”249 This problem of unemployment and job
insecurity is not limited to developing countries alone, but rather extends to developed
countries. There is a global sharp decline in the demand for unskilled workers leading to a dwindling in daily wages and a steep increase in under or unemployment. Thus, in this hyper- competitive capital market, in order to acquire a job or to retain one’s job one needs not only more skills, but also “multiple skills to keep your job from going to a robot.”250
Unemployment causes not only economic hardships but also degradation of the
personality of the human person. For, it destroys “human dignity, self-confidence and self -
esteem; ….”251 When “work is lacking and unemployment reigns, people learn that they are
not needed in the universe. Feeling unneeded, in turn, engender self-hatred and the deadening
248 Scholte, Globalization a Critical Introduction, 223-24. 249 Friedman, The Lexus and the Olive, 331. 250 Ibid., 333. 251 Gloria Kan, “Creating Opportunities for More Humane Work,” in Work as Key to the Social Question: The Great Social and Economic Transformations and the Subjective Dimension of Work: Proceedings of the Conference Held in Rome and Vatican City 12-15 September 2001, by Pontifical Council for Justice and Peace (Vatican: Libreria Editrice Vaticana, 2002), 181. 87 of the self-found in alcohol and drug abuse…and other forms of self-punishment.”252
Neoliberals try to repudiate the above-discussed problems of the labor community by
assuring that problems of unemployment and job insecurity are temporary. They would
disappear once countries have successfully liberalized their economies. They claim that in the
long run it would lead to substantial job creation. They emphasize that export processing
zones (EPZ) have been powerful engines for generating new employment in a number of
countries. Industries like textiles and communication sectors have massively hired young,
literate, mostly female, but not highly qualified people. They earn much better wages than
what local firms offer.253
Free trade advocates also suggest that, although globalization may cause the loss of
some jobs, it nevertheless creates new jobs that are highly productive and lucrative. Since
globalization replaces low-wage jobs with good earning jobs, those who lose jobs can always
move to high-earning jobs. However, this is ideal thinking. In many developing countries, the
unemployment rate is so high that those who lose jobs rarely have an alternative. This is even
true in highly developed industrial countries. Moreover, even when the unskilled and low
rank workers do not lose their jobs they constantly live in insecurity of losing their jobs or
becoming temporary casual workers. The workers repeatedly are told that in order to compete
with the global workforce, they have to agree to lower wages, less benefits and weaker job
protections.254
Current globalization has also caused a growing polarization of workers. At one side
globalization develops a flexible, highly skilled and well-paid professional working class.
This group most often does not want to be a part of any labor organization that demands labor
rights. This group includes top business managers, financial analysts, advanced services
252 Mathew Fox, The Reinvention of Work: A New Vision of Livelihood for Our Time (New York: Harper Collins, 1995), 60 (emphasis original). 253 World Bank Report, Globalization, Growth, and Poverty, 110-11. 254 Stiglitz, Making Globalization Work, 67. consultants, scientists and engineers, computer programmers and biotechnologists. This
group is normally free from the usual regulations regarding immigration laws, wages or work
restrictions. Though it is a small group, it is a decisive group for the performance of business
networks, media networks and political networks. Hence the market for this labor group has
become highly globalized.255 At the other extreme are numerically flexible, casual, unorganized, and unskilled, often female workers. This group too is less likely to respond to trade unionism than skilled or semiskilled male employees.256
4.2.1.1 The Unskilled Workers
In theory the ideology of free trade and free markets assumes that it would allow
developing countries to take advantages of the cheap labor force and achieve higher returns
for their capital and higher wages for their workers. It envisions that globalization will drive
up demand for unskilled labor in developing countries and better their wages and living
standards. However, in reality one of the primary groups adversely affected by globalization
is poor, the asset-less, illiterate and unskilled workers. In this technology-controlled
economy, the low-skilled and unskilled workers are net losers since they find it hard to adapt
to new technologies and to the internationalization of production. They are forced either to
become unemployed or to employ themselves in firms at much lower wage rates, longer
hours and harsher and poorer working conditions.257 The easy replacement of workers with
less skill has made their jobs more insecure and their bargaining power for better wages and
working conditions weaker. There is greater pressure on governments to dismantle the social
welfare programs that were primarily aimed to help these people.258
255 Castells, “Global Informational Capitalism,” 322-23. 256 Bill Dunn, Global Restructuring and the Power of Labor (New York: Palgrave Macmillan, 2004), 181. 257 Guillermo de la Dehesa, Winners and Losers in Globalization (Malden/Oxford/Victoria: Blackwell Publishing, 2006), 180. 258 Wim Dierckxsens, The Limits of Capitalism: An Approach to Globalization without Neoliberalism, translated by Jayne Hutchcroft (London /New York: Zed Books, 2000), 96- 100. 89
In order to reduce costs of production and gain more profits, multinational corporations are outsourcing their production to subcontractors. These subcontractors offer manufactured goods and services at a lower cost. They often hire unorganized low skilled workers by paying them lower wages and providing hazardous working conditions. The unskilled workers, mainly women and children, especially in the garment factories, work under these subcontractors with sweatshop conditions and with high rates of exploitation.
Lack of basic facilities, poor working conditions, exposure to toxic chemicals, low wages, lack of job security and lack of basic human rights are some common experiences of poor workers employed by transnational companies in these factories.259
4.2.2. Peasant Communities in the Developing World
The first world super market chains have tightened their grip over developing countries’ agriculture. The importance given to cultivate cash crops to export than to
subsistence foods by TNCs is causing suffering to peasant communities in developing
countries. Roughly half of the world’s population still depends on agriculture to grow its own
food staples and to feed their families. It is important to analyze the impact of trade
liberalization on agriculture. Because, although the importance of agriculture in the global
economy is currently shrinking as it counts for less than 5 percent of the world’s gross
domestic product, nevertheless it continues to employ over 40 percent of the global labor
force. In developing countries agriculture still continues to be a dominant occupation and the
most important source of income for poor households. For example, in India 60 percent of
people are still dependent on agriculture and in sub-Saharan Africa about 75 to 80 percent of
the labor force is engaged in agriculture.260
Trade liberalization has caused growing food insecurity and despair in the rural areas
259 Berch Berberoglu, Globalization of Capital and the Nation-State: Imperialism, Class Struggle, and the State in the Age of Global Capitalism (Lanham/Boulder/New York/Oxford: Rowman & Littlefield Publishers, 2003), 7. 260 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 314. of developing countries. The primary reason for growing starvation in Africa, Asia, Latin
America, and Middle East is not because there is lack of food supply -- the food supply has increased and food stocks are building up, Rather, as Amartya Sen has argued, it is due to poor’s “entitlement” to food either because the poor lack land to grow food or lack income to buy food.261 Food insecurity in rural areas takes place minimally at four levels: transfer of resources from peasants to agro-business industries; conversion of agricultural land from the cultivation of staple foods to luxury and non-food crops for export; diversion of cereals from domestic markets to exports; and rising prices of commodities and the reduction of government food subsidies to the poor.262
Transnational corporations with the help of the World Bank and the WTO are converting the traditionally owned agricultural land of farmers to grow single-crop export- oriented monocultures that are managed by absentee landlords. They justify their move through global propaganda that claims that small farmers are ineffective and inefficient in producing food adequate to feed a hungry world. These agro-business firms promise to produce cheap and high quality food for the hungry masses, but they grow food not for local consumption but for export to rich markets. They concentrate in cultivating high-priced, high- margin luxury items like cut flowers, potted plants, cotton, coffee beans, beef, gourmet vegetables, soybeans, and so on to be shipped to rich countries where the majority is already overfed. The people who used to feed themselves by cultivating their own farms have become landless, cashless, homeless, hungry and dependent. This has sparked an epidemic of farmer suicides.263
The incidence of growing suicides of farmers in India illustrates the devastating
261 Sen characterizes famines as economic disasters more than merely natural disasters. Amartya Sen, Poverty and Famines: An Essay on Entitlement and Deprivation (Oxford: Clarendon, 1981), 162. 262 Vandana Shiva, “Globalization of Agriculture, Food Security and Sustainability,” in Sustainable Agriculture and Food Security: The Impact of Globalization, ed. Vandana Shiva and Gitanjali Bedi (New Delhi: Sage Publications, 2002), 24. 263 Cavanagh, Alternatives to Economic Globalization, 41. 91 effects of globalization on peasant communities. The studies done on the households of suicide victims in India show that the farming community is passing through high stress during this economic reform period. The main reasons listed for the increase in farmers’ suicide are: increasing input costs, decreasing profitability, volatile commodity prices, growing risks, and degradation and depletion of land and water resources.
There has been a sharp rise in farmer’s suicide in rural India, especially since 1997.
With the 1991 economic reforms, many important policy changes and reform-measures relating to Indian agriculture were introduced. Beginning in 1997, international trade in agriculture was liberalized. By 2000 all agricultural products were removed from quantitative restrictions. The seed industry was fully opened to private trade, as 100 percent foreign equity was allowed in the seed industry in India. Government also relaxed the restrictions on the import of seeds. Fertilizer subsidy has been considerably reduced from 3.2 percent of GDP in
1990-1 to 0.69 per cent of GDP by 2003-04.264 The main official source of data on suicide
deaths is police records made available by the National Crime Records Bureau (NCRB).
According to NCRB data, between 2001 and 2006 there were 56,946 suicide deaths by
farmers in 4 states: Karnataka, Andhra Pradesh, Kerala, and Maharashtra. There were more
than 103,982 farmers’ suicide cases in the country as a whole. By and large the suicides have
been higher among small-marginal farmers who moved from subsistence agriculture to the
high-value crops without adequate technological support.265 I will discuss this further in chapter four.
Developed countries claim that they are promoters and supporters of free trade and investment. However, their agriculture sector is far from being fully open to free trade. It continues to be one of the most protected industries in the world. The standard free trade model fails to justify the present agriculture trade patterns in the developed world. For
264 D. Narasimha Reddy and Srijit Mishra, “Agriculture in the Reforms Regime,” in Agrarian Crisis in India, (New Delhi: Oxford University Press, 2009), 21-22. 265 Ibid., 34-36. example, the U.S. import tariffs on peanut butter is 130 percent, and Canadian import tariffs on dairy products is 300 percent. Moreover, farmers in developed countries are protected by
high subsidies. This adversely affects the farmers in developing countries. The high subsidies
cause over-production of agricultural commodities and depression of world commodity
prices. The poor farmers from developing countries without subsidies are unable to compete
with farmers from developed countries. For example, the total annual agricultural subsidy in
developed countries totals over $300 billion. It is double the value of total agricultural
exports from developing countries. Subsidies total about $100 billion in the EU, $55 billion
in the U.S. and $50 billion in Japan.266
Agricultural subsidies have been a major bone of contention in the ongoing trade
negotiations between developed and developing countries. The developed countries refuse to
reduce agricultural subsidies. It is estimated that the EU provides a daily subsidy of US$2.7
per cow and Japan US$8, whereas the bulk of India’s people live on less than US $2 a day.
The massive agriculture subsidies have a two-fold impact upon the developing
countries: on the one hand, it greatly restricts the export of agricultural commodities from a
developing country to developed countries’ markets and, on the other, it floods domestic
markets with cheaper agricultural imports, thereby reducing the prices of commodities to a
level at which local small farmers cannot compete. In 2001, the 25,000 US cotton-growers
received roughly US $3.9 million in subsidy payments for producing cotton that was worth
only US $3 million at world market prices. In 2002 export subsidies by a number of countries
destroyed millions of livelihoods in West-African countries. Employment in the Kenyan
textile industry has dropped.267
Export dumping is another common problem that many developing countries are
facing today. This is mainly due to high agricultural subsidies in developed countries. The
266 Vaiya, Globalization: Encyclopedia of Trade, Labor, and Politics, 318-19. 267 Per Pinstrup- Andersen and Peter Sandoe, ed., Ethics Hunger and Globalization: In Search of Appropriate Policies (Netherland: Springer, 2007), 263-276. 93 practice of selling cheap products in foreign markets at prices much below the cost of production is called ‘dumping’. Agricultural dumping has made it impossible for many developing countries to thrive, even in their own national markets. Moreover, developed countries use the Uruguay Round Agreement on Anti-Dumping268 to limit the access of
products from developing countries to developed countries markets, especially products
where poor countries are most competitive.269
4.3. Globalization and the Human Person
Globalization not only affects the economic, social, cultural and political structures of
society, but it also exerts strong effects on the identity and meaning of the human person. The
tragedy and the paradox of the global market is that human beings who are busy developing
systems of greater economic development, with the goal of creating immense wealth and prosperity, are in fact endangering meaningfulness of their human existence.270 The main
danger of globalization is commodification of the human person. The global market, which is
governed by shareholder market model, tempts human beings to dispose of themselves as
persons by ‘commercializing’271 human life.
4.3.1. Commodification of Human Identity
Globalization has commodified272 and materialized the identity of the human person.
The human person is no longer seen as the ‘irreducible other’ but as one who is constantly
268 The anti-dumping agreement states that if an enterprise is found to be dumping its products and if such dumping is causing injury to the domestic industry in the importing country, the importing WTO member country can impose a countervailing duty on the imports up to the maximum extent of the margin of dumping. McCulloch and others, Trade Liberalization and Poverty: A Handbook, 293. 269 Kristin Dawkins, “U.S. Agriculture Policy and the Uruguay Round: Implications for Food Security and Global Democracy,” in Sustainable Agriculture and Food Security: The Impact of Globalization, ed. Vandana Shiva and Gitanjali Bedi, 211. 270 William Schweiker, “Responsibility in the World of Mammon: Theology, Justice, and Transnational Corporations,” in God and Globalization, Vol.1, Religion and the Powers of the Common Life (Harrisburg: Trinity Press International, 2000), 109. 271 Commercialism refers to a social world in which “there could be no ‘outside’ to commerce; everything would be commodified and saleable.” Ibid., 118. 272 According to Marxist’s understanding, ‘commodities’ are the objects that are used through production and exchange to create and amass surplus value. A resource becomes commodified when it is incorporated into the capitalist accumulation processes. Scholte, Globalization a Critical Introduction, 112-13. preoccupied with “utility-maximizing tasks driven by narrow self-interest.”273 Human identity is primarily associated with material possessions, ownership, control, individualism, autonomy, and self-gratification.274 Global capitalism is trying to create a global culture that seeks to “reduce all human goods and all human meaning to the modern capitalist financial calculus of the mechanistic cosmology’s utilitarian ethics.”275 Its moral vision of good life of a person is therefore constituted on three main values: individualism, prosperity, and freedom. Neo-liberalism, built on an individualistic and utilitarian approach, proclaims that what is best for the individual is also best for whole society.276 In conformity with John
Stuart Mill, who defined the human person as Homo economicus with the sole desire for wealth maximization, neo-liberalism has lowered the meaning of the human person merely to the economic aspect of the person.277
Commenting on the consequences of reducing human worth and human dignity to a mere economic commodity, Zygmunt Bauman speaks of how human life has become a wasted life. He holds that the poor, the refugees, asylum seekers, and immigrants are today considered the ‘waste products’ of globalization, without any useful functions for society. He writes,
They all tell the same story: that no one except a few solitary winners is truly indispensable, that a human is of use to other human beings only as long as she or he can be exploited to their advantage, that the waste bin, the ultimate destination of the excluded, is the natural prospect for those who are no longer fit or no longer wish to be exploited in such a way … and the ultimate stake of survival is outliving the others.278
273 Jean Bethke Elshtain, “Catholic Social Teaching and the Meaning of Work,” in Work as Key to the Social Question: The Great Social and Economic Transformations and the Subjective Dimension of Work: Proceedings of the Conference Held in Rome and Vatican City 12-15 September 2001, by Pontifical Council for Justice and Peace (Vatican: Libreria Editrice Vaticana, 2002), 32. 274 Lemert Charles and Anthony Elliott, Deadly Worlds: The Emotional Costs of Globalization (Lanham/ Boulder/ New York/Toronto/ Oxford: Rowman & Littlefield Publishers, 2006), 36. 275 Joe Holland, “Towards a Global Culture of Life: Cultural Challenges to Catholic Social Thought in Postmodern Electronic-Ecological Era,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis books, 2005), 119. 276 Peters, In Search of the Good Life, 59. 277 Ibid., 37-38. 278 Zygmunt Bauman, Wasted Lives: Modernity and Its Outcasts (Cambridge: Polity Press, 2004), 131. 95
4.3.2. SelfIdentity and Consumerism
Globalization has affected not only the global economic system but also the human
meaning system. It is a process that involves “a transformation of ideas, values, attitudes, and
aspirations. It is a package that has economic aspects, but also contains cultural
consequences.”279 One of the effects of globalization on our society is the spread of
consumerism280 in the world. It has spread to all corners of the world, though it applies
relatively more to city dwellers, youth, and the middle class.281 Zygmunt Bauman calls the
modern world a “liquid world” where human life is precarious as it is lived under constant
uncertainty. It is a world where in no time “assets turn into liabilities and abilities into
disabilities.” Liquid life is a consuming life. It casts the world and all its animate and
inanimate fragments as objects of consumption.282
Globalization constantly creates new public consciousness, with the help of mass
media, to maintain and expand its drive for greater profits. It succeeds in fashioning an unsatisfied desire in human life and to eliminate the sense of “enough” from the human heart.
The consequence is that the human heart is never satisfied with what it possesses and accumulates.283 Therefore capitalist neo-liberalism not only sells products but also confers
identity to the buyer.
Current globalization has also affected the meaning and value of human work. The changing meaning and dignity of work in return affect the meaning and dignity of the human
person. In the current global economy a person’s work is bought and sold merely on the basis
279 M. Litonjua, “Global Capitalism: The New Context of Christian Social Ethics,” Theology Today 56 (1999): 222. 280 Consumerism is a human behavior in which a person rejoices in excess and constant accumulation. Consumerism propagates instant consumption and instant gratification. It promotes rapid circulation, a limited use of a commodity and immediate new replacement of goods. Speed, excess and waste are the guiding forces of consumerism. The consumeristic culture syndrome centers on an emphatic denial of the procrastination, the ‘delay of satisfaction’ precept. “It has put the value of novelty above that of lasting.” Zygmunt Bauman, Liquid Life (Cambridge: Polity Press, 2005), 59, 62. 281 Scholte, Globalization a Critical Introduction, 113-15. 282 Bauman, Liquid Life, 1-2. 283 Bob Goudzwaard, Globalization and the Kingdom of God (Grand Rapids, Michigan: Baker Books, 2001), 32-37. of market logic, that is supply and demand analysis. Moreover, most of the workers are engaged in producing only a small part of a product without ever knowing what the end product might be. In such a scenario human work has become nothing more than a commodity.284 Matthew Fox insightfully observed that if there is no bliss in our work, or no passion or ecstasy in what we do, then we have not yet found our work. We may have a job, but we do not have work.285 In a globalized world people may be holding jobs but may not be doing ‘work’ in its true meaning.
Conclusion
In this chapter I have highlighted some of the economic failures of globalization: growing gap between the rich and poor, massive inequalities of income and wealth, and worsening instability of unskilled workers and marginal farmers. These same concerns are some of the possible reasons that people from developing countries have lost faith in the current globalization and demand a transformation of its current policies and institutions.
The purpose for exploring some of the dehumanizing aspects of globalization is to argue that current globalization needs transformation. It is to suggest, as was done by Mary
Robinson the former United Nations High Commissioner for Human Rights, a form of human globalism. It is a globalism that gives priority to human-centered and participatory -- of all citizens, workers, employers, managers, administrators, and everyone – approach to development. The global task is to achieve the millennium development goals of 2000. It is now a growing concern that to achieve the millennium goals we need a new approach and a new paradigm to development, which is grounded in the moral, social as well as the economic imperatives. It should be built on the foundations of sustainable development, poverty reduction, and fair share to the world’s poor in the benefits of global prosperity. The
284 Gilbert C. Meilaender, ed., Working: Its Meaning and Its Limits (Notre Dame: University of Notre Dame Press, 1992), 9. 285 Mathew Fox, The Reinvention of Work: A New Vision of Livelihood for Our Time (New York: Harper San Francisco, 1995), 94. 97 aim is to create an international finical system that captures benefits of global markets, maximizes opportunities for all, and lifts up the most vulnerable.286
However, I am not supporting the idea of economic protectionism as an alternative to
current global neoliberal market economy. I propose that globalization has the potential to
contribute to countries seeking to develop and prosper provided it is better guided by proper
policies and by fair and independent international institutions. I have shown that unregulated
free markets have produced devastating results for the poor and that they are not interested in
reducing either poverty or inequality in the world. I have argued that the core problem of current globalization is in its neoliberal vision and policies, its exclusiveness, and structures of capitalism that give rise to injustice and poverty. Globalization, when well managed with fair and just policies, has helped some countries to reach unprecedented rates of growth. For example, the countries of East Asia who have embraced globalization on their own terms and at their own pace have benefited from globalization.
However, critical analysis shows that current globalization is far short of realizing its potential and promises. It has not worked for millions of people and has even made their lives insecure and their livelihood unstable. It has generated immense wealth in the world but at the same time horrendous poverty and inhuman misery. Its adverse effects on the unskilled workers and poor farmers in developing countries demonstrate deep-seated and widespread imbalances in the workings of current globalization. There are imbalances in the distribution of global opportunities and benefits. The polarization between the winners and losers is too wide to justify. Social justice demands that the current globalization ought to be humanized so as to make it more fair and beneficial for the poor and the marginalized.287 We may not succeed in solving all problems at once, but by putting basic economic structures in place we
286 Gordon Brown, “Governments and Supranational Agencies: A New Consensus,” in Making Globalization Good: The Moral Challenges of Global Capitalism, ed. John H. Dunning (New York: Oxford University Press, 2003), 323-24. 287 World Commission, A Fair Globalization, 3. can move closer to a truly human world. The important first step in the process of
humanizing globalization, as Joseph Stiglitz observes, is to create mind-sets that understand
that, “Caring about the environment, making sure the poor have a say in decisions that affect
them, promoting democracy and fair trade are necessary if the potential benefits of globalization are to be achieved.”288
There is a growing discontent among people about current process of globalization,
which is managed and controlled by a few powerful TNCs and developed countries with the
interest of making huge profits. This corporate globalization is perceived as inattentive and
insensitive to the problems and cries of the poor. Protests at G8 Summits, the WTO meetings,
the annual events of Davos economic summits and the general meetings of the IMF and the
World Bank suggest that people desire a transformation of globalization. The participate at
these protests -- trade unions, farmers, social democrats, women groups, casual workers,
environmental groups and indigenous people – represent the range of the victims of the
globalization.289 The demand abounds to humanize and reform globalization by promoting
sustainable development and fair distribution of global resources. This I will explore in the
second chapter. I will argue that globalization ought to pay attention to the fair distribution of
and participation in the benefits of globalization to all people in all countries. The main issue
with current globalization is not whether the poor also gain from globalization, but whether
they get a fair share and a fair opportunity.290
288 Stiglitz, Globalization and Its Discontents, 216. 289 Chris Brown, “A World Gone Wrong?,” in The Global Transformations Reader: An Introduction to the Globalization Debate, 2d ed., ed. David Held and Anthony McGrew (Cambridge, UK: Polity Press, 2003), 564. 290 Sen, “How to Judge Globalization,” 21. 99
Chapter Two
ALTERNATIVES TO ECONOMIC GLOBALIZATION
Introduction
‘Globalization with a Human Face,’ ‘A Better World is Possible,’ ‘Globalization from
Below,’ ‘Fair and Safe Trade for All,’ are some of the most prominent voices and dreams of
millions of people around the world, who desire an alternative to the current version of
globalization. As I have discussed in chapter one, the potential of globalization is immense
and it can contribute considerably to human well-being, if it is managed wisely. However, the
current process of globalization is falling far short of realizing its potential.
Does globalization require a human face? The exponents of the current globalization argue that globalization does not need a human face because it already has a human face.
They claim that anti-globalization movements, by demanding that globalization needs a
human face, are raising a false and an exaggerated alarm.291 They also declare that
globalization is inevitable and that there are no alternatives. Any voice that opposes or
criticizes the current globalization is branded as anti-development, irrational and therefore to
be opposed.292 However, in recent years, particularly after the agitation at Seattle in 1999,
millions of people – blue-collar and farm workers, environmentalists and consumer
advocates, women’s organizations and indigenous communities, pacifists and human rights
associations, students and intellectuals, small business owners and landless peasants of every
age, religion, class, caste, nationality, and political ideology -- are mobilizing around the
world to resist and reform the neoliberal model of globalization. There is a growing
consciousness at the grassroots level, based on their own experiences and of their fellow
persons, that the current model of globalization is not helping the vast majority of poor to
291 Jagdish Bhagwati, In Defense of Globalization (New York: Oxford University, 2004), 32. 292 Ulrich Duchrow and Franz J. Hinkelammert, Property for People, Not for Profit: Alternatives to the Global Tyranny of Capital (London/New York: Zed Books, 2004), 107. meet their legitimate human needs. They have recognized its devastating effects on their lives
and on the environment. Public demonstrations of their discontent aimed at global institutions
and policies, which support neo-liberal globalization, are growing. The grave Asian financial
crisis of 1997 confirmed their doubts and fears about the promises of prosperity heralded by
neoliberal propaganda. There is an increasing convergence of opinions and voices that avow
that the current form of globalization ought to change. They envision a globalization that
regards the well-being of all people as its end and seeks a fair and inclusive form of
globalization.293
There is a growing solidarity and networking between various civil society groups
and movements, which are opposed to the current version of globalization. This is unfolding
at a global level crossing beyond all national and interest-group boundaries. They are
recognizing that they share a common goal of freeing our world from the grips of neoliberal
corporate logic and a common vision of promoting the social values of human dignity for all,
democracy, economic justice, environmental protection, equality, and human solidarity.294
For example, the unionized factory workers in developed countries, who are agitated that their jobs are being outsourced to developing countries, are networking with other social movements that position themselves against neoliberal policies. On the other hand, the impoverished peasants in developing countries, alarmed by falling prices for their products as their markets are flooded with highly subsidized food commodities from developed countries and agro-business firms, are joining hands with environmentalists, human right movements, and indigenous people, who are struggling to protect their land and cultural identity, to oppose the policies of current globalization.295 They are seizing this moment as an opportunity to reclaim their rights, dignity, a healthy environment, and social and political
293 World Commission on the Social Dimension of Globalization, A Fair Globalization: Creating Opportunities for All (Geneva: International Labor Organization, 2004), Xi, 5. 294 Jeremy Brecher, Tim Costello, and Brendan Smith, Globalization from Below: The Power of Solidarity (Cambridge, MA: South End Press, 2000), 14-15. 295 Joseph E. Stiglitz, Making Globalization Work (New York: W.W. Norton & Company, Inc., 2007), 7. 101 security to live with dignity and peace.
Chapter one illustrated that the main opposition to globalization is not globalization per se but to its particular ideology, the Washington Consensus, which the IMF, the World
Bank and some developed countries try to impose on developing countries. The movement toward alternatives to globalization is not a movement for “no globalization,” but rather, for a globalization with a human face.296 The primary aim of proponents of alternatives to neo-
liberal globalization is neither proposing completely new and perfect global economic
institutions and organizations nor finding right solutions to all the problems of neo-liberal globalization. The alternative voices are aware that they need to concentrate on what is good in the present system, while denouncing all that is oppressive and unjust, and work toward building global solidarity to achieve their vision of fair and people-oriented globalization.
They are also becoming conscious that, in order to create a more fair and just globalization, there has to be networking between various actors and institutions – including the developed and developing countries, international organizations, local social movements, labor unions,
NGOs, civil society organizations, intellectuals, and other individuals. All these stakeholders need to assume their responsibilities and honor their commitments.297
Amartya Sen argues that “the subject of justice is not merely about trying to achieve –
or dreaming about achieving – some perfectly just society or social arrangements, but about
preventing manifestly severe injustices.”298 My aim in presenting some of the alternatives to
the current version of globalization is not to present a fully worked out and globally accepted
blueprint of an alternative to globalization, for there is none. Rather, it is to show how
different people, the illiterate at grassroots level and world acclaimed economists, the local
NGOs and the international social movements, are recommending that it is possible to reduce
296 Joseph E. Stiglitz, Globalization and Its Discontents (New York/London: W.W. Norton & Company, 2003), 220-21. 297 World Commission, A Fair Globalization, 130. 298 Amartya Sen, The Idea of Justice (Cambridge, MA: Harvard University Press, 2009), 21. and control some of the adverse effects of the current version of globalization and to render it more inclusive, people-centered, just and fair.
In this chapter I expound, through the examples of various alternative movements, the basic idea that our world needs a new paradigm of development to achieve the
Millennium Development Goals (MDGs). A paradigm that is built on the foundations of sustainable development, poverty reduction, greater participation, expansion of human freedom, and a fair share for the poor in the world’s wealth and prosperity.299 This vision of globalization entails hard work. It demands multiple and multilateral initiatives and networking at global, national, and grassroots levels.300 I also claim that, contrary to the pessimistic views of neo-liberal globalization proponents, the growing solidarity between various social movements and groups at the local and global level signifies that the process of developing a new paradigm of development has become a global issue. The discussion regarding a comprehensive model of development, based on the models offered by Amartya
Sen and Joseph Stiglitz, lays out some perspectives, wide-ranging directives, principles, and values that an alternative model of globalization needs to incorporate to make it fair and inclusive.
1. Emerging Global Alternatives
The key question that many people grapple with is this: how do we transform the current version of globalization into a humane globalization, which is socially just, morally acceptable, economically fair, politically democratic, environmentally sustainable, and culturally diverse? Though currently we do not have a globally acclaimed comprehensive alternative to the current globalization, nevertheless there is a strong global recognition that alternatives to current globalization are possible and are crucial. Several movements and
299 Gordon Brown, “Governments and Supranational Agencies: A New Consensus,” in Making Globalization Good: The Moral Challenges of Global Capitalism, ed. John H. Dunning (New York: Oxford University Press, 2003), 323-24. 300 World Commission, A Fair Globalization, 7. 103 organizations at the local, national and global levels are seriously engaged to develop alternatives to neo-liberal global management. Some of the common values and principles that guide these groups and social movements in developing alternatives are: respect for human dignity and basic human rights, respect for diversity of cultures and lifestyles, political and social participation of all people, fairness and social justice, solidarity and sustainability, and equality.301
At the dawn of the new millennium we see signs of hope. There is a growing
recognition of the need to build global solidarity to put an end to the dehumanizing global
poverty and discriminations. The global movements, such as the Jubilee 2000 campaign for debt cancellation for poor countries, the World Social Forum, United Nations Millennium
Development Goals (MDGs) adopted in September 2000, the International Conference on
Finance for Development in 2002, (in which the advanced industrial countries committed themselves to provide financial aid to developing countries), and the Johannesburg Summit on Sustainable Development in 2002, are some of the positive signs that people of North and
South are taking concrete steps to create a just and equal world, a world quite different from the one propagated by proponents of neo-liberalism.302 The following sections examine a
sampling of these movements and developments.
1.1. People’s Social Movements
People’s social movements are powerful modes to beget social change. Basically
people’s social movements are informal networks based on solidarity and common beliefs.
They mobilize on conflictual issues to resist and protest them. The fundamental characteristic
of social movement is “its ability to develop a common interpretation of reality to nurture
301 Ibid., 8. 302 Joseph E. Stiglitz and Andrew Charlton, Fair Trade for All: How Trade can Promote Development (New York: Oxford University Press, 2005), 2-3. solidarity and collective identifications.” 303 The social movements try to develop new
visions of the world and value systems that are alternatives to the current dominant visions
and value systems. They develop solidarity among various groups at various levels, through
informal networks, by developing a common identity, and by identifying a common target of
the protest.304
Globalization has provided social movements opportunities and means to build
solidarity among various groups on global issues. This has given rise to transnational social
movement organizations (TSMOs).305 Over the years, transnational campaigns and
demonstrations, challenging the assumptions of neo-liberal globalization’s inevitability and
its “one size fits all” development model, are growing globally. Since the 1980s, the
campaigns and battles against globalization have become more international. Protests against
international corporations, for example against Monsanto, McDonald’s Exxon, and Nike,
established a network of international organizations. The student movement against
sweatshops in the 1990s brought young blood and new dynamism into anti-globalization
movements.306
The protests by over fifty thousand demonstrators at the third WTO meeting, assembled to launch the Millennium Round in Seattle in 1999, accelerated the anti-
globalization protests and laid a foundation for further anti-neoliberal demonstrations around
the world. The Seattle protest was followed by several demonstrations and rallies in different
parts of the world. Some examples of ongoing people’s opposition to neo-liberal
globalization include: the protests by anti-neoliberals at the Asia-Pacific Summit of the
World Economic Forum in Melbourne in 2000; demonstrations at the IMF, the World Bank,
303 Donatella Porta, and others, Globalization from Below: Transnational Activists and Protest Networks (Minneapolis/London: University of Minnesota Press, 2006), 18-19. 304 Brecher, Globalization from Below, 26. 305 Porta, Globalization from Below, 16. 306 Josè Corrèa Leite, The World Social Forum: Strategies of Resistance, trans. Traci Romine (Chicago: Haymarket Books, 2005), 47. 105 and the G8 Summit in Washington 2000 and at the G-8 meeting in Genoa in 2001; the failure of global trade talks (the WTO) between trade ministers and representatives of NGOs and government delegates from developing countries in Cancun, Mexico in 2003; and the breakdown of negotiations for a new Free Trade Area of the Americans in Miami in 2003.
These groups are not opposing globalization per se, but rather, are demanding a global system that is grounded on principles and institutions that embody values of justice, democracy, and sustainability.307 The key point of contention is not whether to globalize but how to do so.
1.1.1. Globalization from Below
The failures of top-down globalization to fulfill its promise of economic prosperity for
all and to address the problems of poverty and exclusion of the majority poor have provoked a worldwide movement to demand globalization from below. Since top-down globalization has come to mean “selective trickle-down of benefits to the upper tiers”308 bottom-up
globalization aims at building solidarity among various people’s movements at the grassroots
level around the world. Numerous groups, associations, movements, organizations, and
individuals at the grassroots, with their diverse origins, histories, forms of action, interests
and goals, are forming global alliances through various networks of association. These
networks cut across the national borders and particular interests. The movement for
globalization from below is trying to facilitate cooperation among its various participants by
advocating the idea that diversity is a value and decentralization of power is strength. Its
solidarity is based on mutuality and acceptance of common values, such as democracy,
participation, environmental protection, community, economic justice, equality, and
subsidiarity.309 Their aim is not to abandon the process of the current globalization, but rather to correct its ill effects and its worldview. The goal is to humanize it so that it responds to the
307 John Cavanagh and Jerry Mander, ed., Alternatives to Economic Globalization: A Better World is Possible, 2d ed. (San Francisco: Berrett-Koehler Publishers, 2004), 1-2, 33. 308 Coskun A. Samli, Globalization from the Bottom Up: A Blueprint for Modern Capitalism (New York: Springer Science + Business Media, 2008), 65. 309 Brecher, Globalization from Below, 10-16. needs of poor and voiceless people.
Globalization from below is driven by the masses of people who have little influence in the corporate world. It is opposed to the ideology and value systems of neo-liberal capitalists who regard people as merely cheap source of labor or possible consumers for their cheap goods. The globalization from below believes that history can be made and not merely experienced. It propagates a community-based human solidarity that recognizes and appreciates the uniqueness and interconnectedness of each individual. It is a solidarity of individuals that recognizes that, though each human person is unique and distinctive, all are interconnected. This reorganization of human interconnectedness of all individuals would put an end to the exploitation of one individual by another individual or of one group by another group.310
One of the strategies that globalization from below uses to organize itself is the informal network structure. Hence, it is called “a movement of movements”. The network structure is well suited to the movement, as it is composed of different national and international NGOs, local groups, intellectuals, activists, trade unions, peasants movements, women groups, indigenous groups, religious associations, student organizations, health activists, peace and human rights organizations, and many others. These diverse groups and associations cooperate with each other to address common global issues such as injustices and inequalities. However, at the same time, they preserve their own autonomy and particular identities. The modern communications technologies have become a great resource to facilitate interactions between these different groups. Moreover, the network structure gives it the needed flexibility to mobilize different groups at different levels to achieve its objectives.
These groups can easily move back and forth between major common events and their own
310 Jung Min Choi, John W. Murphy, and Manuel J. Caro, “Introduction,” in Globalization with a Human Face (London: Praeger Publishers, 2004), 6-9. 107 daily struggles and responsibilities in particular localities and on particular issues.311
Constructing a collective identity is another strategy that ‘globalization from below’
utilizes to build solidarity between various social movements, associations, supporters, and sympathizers. Collective identity is created by building collective master frames to be shared by the individual mobilizations. The master frames enable one to interconnect different
themes and issues in a logical way. They also help to reduce and compress the various causes
for economic and social evils in the globe to a single root cause. Thus, the globalization from
below tries to narrow down the global evils of social inequality, lack of democracy, war, environmental degradation, unemployment, poverty, discrimination, and so on into the one macro cause: the process of neoliberal globalization. After establishing the prime cause for
all global evils, it engages itself to propose some commonly shared solutions, based on
common values of solidarity and subsidiarity, social justice, participation, and environmental
justice, to neo-liberalism. These frameworks operate as a bridge to link different organizations and sectors. Though building a strong identification with a collective process is important for globalization from below, however, the process of identity building is an ongoing process that requires continual negotiations.312
1.1.1.1. The Principle of Subsidiarity
The globalization from below strongly supports the idea of empowering local
communities. It argues that local communities should have control over their own lives and
on their own resources. In the context of current economic globalization, which operates by reducing economic and political powers of local communities, states, and nations and fostering the powers of multinational corporations, the principle of subsidiarity advocates a
division of labor and authority at multi-levels of powers. It propagates the idea of strengthening non-market powers at every level – local, national, and global. It proposes
311 Brecher, Globalization from Below, 85-86. Also see Porta, Globalization from Below, 237. 312 Porta, Globalization from Below, 70, 74-75, 82, 89-90. greater community participation at the local level in the process of decision making and
implementation of economic, social, political and cultural actions. It insists that whatever
decisions and activities can be made and undertaken at a competent lower level should be
made and undertaken at that level. Whatever power can reside at the lower level rightly
resides at the lower level. The higher authority or level of power should exercise its authority
and help the lower level only when the lower level is unable to fulfill an activity or make a
decision. Economic structures should be designed to move economic and political powers
downward, toward the local. Decisions should constantly move closer to people. The
outcome of this principle would be greater ownership and greater self-reliance at local and
national levels to meet their essential needs to the extent that these are possible.313
Globalization from below, based on the principle of subsidiarity, promotes
partnerships at the level of small businesses. It argues that small business firms are more
efficient and flexible to reach out to the forgotten majority because of their special
characteristics. They are more innovative, as they do not feature a rigid corporate culture, and
can generate new practical ideas and act on them rather quickly. Second, they are more
flexible, as they can change their strategic activities quickly and adjust to sudden market changes. Third, since they are very close to local markets they can understand market conditions well and be sensitive to the needs and tastes of consumers. They can easily enter
the market from the lower end and satisfy the needs of poor people. Fourth, they are more
prone to establishing partnerships. They can move faster in finding partners and can become
a part of network. Since local markets of poor clientele are extremely diversified in their
tastes, needs and incomes, they are a more fitting target for small and local enterprises. The
bottom-up market can easily reach out to these groups and cater to their needs. The governing
idea of localization is to have economic policies that enable nations, local governments, and
313 Cavanagh, Alternatives to Economic Globalization, 151-63. 109 communities to reclaim their economies, make them as diverse as possible, and to ensure more sustainable forms of development. 314
At the same time, globalization from below recognizes the need of global regulations
for the economy to be sustainable and people oriented. Globalization from below recognizes
the necessity of being interconnected with state and global levels at every stage of non-
market functions to protect people and the planet. Empowering local communities and global
agreements are reciprocal as they have impact on each other. In a global economy
international coordination, cooperation, and institutions are necessary to enable local and
national governments effectively to fulfill their obligations and commitments to their
people.315 Hence, the principle of subsidiarity recognizes that both varieties, the top-down
and bottom-up styles of globalization, can coexist and can jointly contribute immensely to the
whole world.316
1.1.1.2. Its Vision and Actions
The vision of globalization from below is in its evolving stage, and thus its vision is
an ongoing social process. Through constant dialogue and interaction among various
movements and countries, it strives to create a common vision. Its vision is not narrow, as it reflects the diversity of situations and convergence of many elements. It does not propose one universal answer to global issues, but rather allows people to develop their own approaches.
The values and goals it propagates resemble the values and goals articulated by the UN in its documents and in its Universal Declaration of Human Rights. It also draws heavily from the
UN declarations on the environment, human rights, social dimensions of development, women equality, and the like.317
Globalization from below expresses its vision through different forms. It involves
314 Samli, Globalization from the Bottom Up, 65-69. 315 Brecher, Globalization from Below, 42-44. 316 Samli, Globalization from the Bottom Up, 69. 317 Brecher, Globalization from Below, 62-64. engagement in concrete heterogeneous programs and activities based on certain specific
policies and norms. In general it advocates nonviolence as its strategic choice. It makes use of
the forms of actions that earlier movements used, such as party activism, lobbying,
campaigns, boycotts, civil disobedience, sit-ins, signing petitions, occupation of public
buildings, public meetings, strikes, street demonstrations, and counter summits, in its protest
activities. Nevertheless, the movement is also innovative, displaying new forms of actions. It
seeks to make its activities more pluralist, media-oriented, and networked than the past
mobilizations. The movement has also recognized that in order to make its protests and vision
global it should engage in a global activity. Most of the activities of the movement are mainly
limited to opposing and resisting the globalization from above. The movement is aware that it
has to move from resistance to proposing some good constructive solutions to the
problems.318
1.1.1.3. Contradictions and Future of the Movement
There is fairly solid consensus within globalization from below on some broad areas.
It unanimously opposes the functioning and policies of the World Bank, the IMF, and the
WTO. It supports policies and initiatives to strengthen national governments to counteract the
power of the global economy and the empowerment of local communities to control their own lives and resources. It also champions the organization of workers and oppressed groups in civil society.319
However, globalization from below is not without contradictions and conflicts. As an
organization of networks, it reflects several internal conflicts. Its participants hold different
and conflicting interests, ideologies and perspectives. For example, there are sharp divisions
between Northern and Southern movements, between human need development activists and
the environmental protectionists, and between the localist and the nationalist proponents of
318 Ibid., 66. 319 Ibid., 38-39. 111 alternatives to globalization. While the nationalists argue for the restoration of the power of governments over market and corporations, the localist on the other hand argue for the empowerment of workers, communities, and civil social actors. This conflict is primarily due to a false premise, which assumes that more power at one level of governance necessarily means disempowerment of the other. Globalization from below has to recognize the fact that local communities, in order to establish greater control over their social, economic and political lives, need a “stronger governmental control and increased organization in civil society at every level from local to global.”320 The movement has no formal mechanisms to
resolve these conflicts and to control groups that disrupt their activities. It has no single authority to settle its internal disputes.321
Many people are skeptical about the future of the movement of globalization from
below. Some scholars even question the global nature of the movement, as its organizational
structure is too weak and its collective identities are overly heterogeneous.322 Globalization
from below can succeed in challenging the evil effects of top-down globalization only if the various groups transcend their difference and form a strong solidarity through cooperation.
Fostering cooperation within the movement demands constant dialogue and networking of multiple actors. There has to be exchange of each other’s experiences and concerns and broadening of common interests. Cooperation also requires mutual respect for differences and openness to compromise whenever it is necessary.323 The creation of collective solidarity
“presupposes the acceptance of the value of individual subjectivity.”324 In the following
section I discuss two grassroots movements: The World Social Forum and Global Fair Trade
movement.
320 Ibid., 39-40. 321 Ibid., 87. 322 Porta, Globalization from Below, 233. 323 Brecher, Globalization from Below, 47-48. 324 Porta, Globalization from Below, 244. 1.1.2. World Social Forum
“Another world is possible” was the proclamation of the second World Social Forum that was held in 2002, in the city of Porto Alegre in Brazil. This slogan has continued to inspire and guide the successive World Social Forums that meet every year at the global level, drawing together thousands of people from all continents and from different walks of life rallying around a shared opposition to corporate globalization.325 The World Social
Forum (WSF) is one of the best examples of globalization from below. It is the largest transnational movement, an umbrella group that brings together various movements, groups, associations, unions, activists, intellectuals, and thousands of individuals who are involved in opposing neo-liberal globalization. Boaventura Santos calls it a critical utopia that asserts the existence of alternatives to neo-liberal globalization.326 Its novelty is absence of hierarchical structure, its emphasis on networks, and its flexibility to engage in experimentations.
Though initially the international media described World Social Forum as Anti-
Davos, its intention is to go beyond that purpose. Its initial goal was to bring together at a global level different NGOs, social movements, unions, and associations that were involved in isolated protests to counter neo-liberal policies and build a humane society based on the social values of social justice, participatory democracy, sustainability, and equality. It is therefore a “movement of movements” or the “network of networks”.327 Its Charter of principles328 defines the WSF as a plural, nongovernmental, nonparty, and diversified “an open meeting place.”329 It regards itself not so much as an organization or as a deliberative body, but rather as an open meeting space for dialogue, reflective thinking, democratic
325 Luis Carlos Susin, “Introduction: This World Can be Different,” in A Different World is Possible, ed. Luiz Carlos Susin, Jon Sobrino, and Felix Wilfred (London: SCM Press, 2004), 17. 326 Boaventura de Sousa Santos, The Rise of the Global Left: The World Social Forum and Beyond (London/New York: Zed Books, 2006), 10. 327 Ibid., 7. 328 After the first World Social Forum, in Porto Alegre in 2001, the committee of Brazilian organization drew up a Charter of Principles to guide the organizations of future WSF. It was approved by the World Social Forum International Council on June 10, 2001. Leite, The World Social Forum, 9, 13. 329 Ibid., 9. 113 debates over ideas, free exchange of experiences and interlinking for effective actions by movements and groups. It intends to bring together different organizations and movements of civil society without becoming a global body representing global civil society. It makes clear that the WSF events are not meant to develop and propose a common position or a final resolution for global action on behalf of all its participants.330 It declares, “No one, … will be
authorized, on behalf of any of the editions of the Forum, to express positions claiming to be
those of all its participants.”331
The first World Social Forum, with 4,000 delegates and 16,000 registered participants
from 117 countries, met in January 2001 in the city of Porto Alegre in Brazil. Though the
majority of its participants were from Brazil, representatives from various other countries
gave it an international dimension. The different types of workshops, discussions, a large
number of autonomous activities, marches, demonstrations, concerts, cultural activities, and
peace protests declared that different types of initiatives and diversified resistance struggles
could coexist. It also demonstrated that there is a massive force that is engaged in a search for
alternatives.332 The International Council of the WSF in 2003, with the intention of
expanding its participation to the grassroots level movements and also to address regional,
gender and thematic imbalances, decided to stimulate multiplication of regional, national, and
thematic forums besides the annual and centralized World Social Forum. As a result today,
besides the annual event of the WSF, there are regional social forums, such as the African
Social Forum, the European Social Forum (ESF), and the Asian Social Forum. The
multiplication of social forums has made it possible to meet more frequently, establish
330 Thomas Ponniah and William F. Fisher, “Introduction,” in Another World is Possible: Popular Alternatives to Globalization at the World Social Forum, ed. William F. Fisher and Thomas Ponniah (New York/London: Zed Books; Nova Scotia: Fernwood Publishing; Cape Town: David Philip Publishers, 2003), 4-6, 25-26. Also see Leite, The World Social Forum, 9-13. 331 Ibid., 10. 332 Ibid., 82-83. stronger ties, and a greater participation of people that are affected by neo-liberalism.333
Heterogeneity and recognition of diversity is the main defining characteristic of
World Social Forum. It celebrates social, cultural, and political diversity and asserts that it is
a source of strength. It advocates broad openness to all individuals, groups and movements
that are opposed to neo-liberal globalization and war and are involved in creating a just
society. The forum is an open invitation for any group or association to participate and
promote their diverse activities within the limits of its charter of principles. The two
conditions that it imposes on its participants are: opposition to the use of violence as a means
to achieve ends and non-representation to any political party. It neither subscribes to any
specific goal, beyond the normative orientation to oppose neo-liberal globalization, nor to any
particular mechanism, other than opposing violence. It strongly believes that it is possible to
build networks and solidarity among non-homogeneous groups and organizations for a
common purpose.334 The WSF propagates the impossibility of a general theory of social
change as it does not accept the idea that our world is an inexhaustible totality. It argues that such a general theory presupposes the monoculture of a given totality and homogeneity of its parts.335 Hence, at the WSF events any group, as long as it respects the WSF Charter, can
organize its own activity, present its own concerns, and participate in innumerable other
activities.
One of the main criticisms against the WSF is that it lacks the clarity of a defined
ideology. Its defining character of rich diversity is seen as its main weakness. Skeptics consider that its policy of all-inclusiveness is ineffective to tackle neo-liberal capitalism and to address the problems of discrimination and exploitation. Hence, critics dismiss it a vast
‘talk show’. However, its supporters argue that the WSF has contributed in giving voice and recognition to many absentee struggles and protests. It has created a global consciousness for
333 Ibid., 123-24. 334 Santos, The Rise of the Global Left, 38. 335 Ibid., 131-32. 115 the movements and organizations that oppose neo-liberal globalization. Its efficaciousness must be assessed in terms of local and national changes and not only in terms of global change.336
Another limitation of the WSF is the sharp internal conflicts on some basic issues and
proposals. There are sharp differences within the WSF about reformism and post-capitalism,
about progress and modernity, and about the role of the State, civil society and global
governance. The forum is also not free from its relationship with political parties. Moreover,
the WSF has no clear answers on global issues, such as distributional justice, fair and
sustainable development, global inequalities, and poverty.337 There are also sharp differences in defining its nature: is it a space or a movement? On the one hand, it is considered as a
‘movement of movements.’ The assumption behind this position is that the WSF must become a global political actor in order to be effective in opposing global neo-liberalism. On the other hand, it is considered as a meeting space for different organizations and movements.338
Critics of World Social Forum also question its transnational nature. They argue that
most of the participants at its global events are largely from host countries, like Brazilians,
NGOs and movements from Latin America and the Northern Atlantic regions. Since
participation in the WSF events is self-funded, most of the grassroots movements and NGOs
from Asia and African continents have no financial capacity to support their participation in
the WSF events. It is also pointed out that the most oppressed people, the unemployed,
dispossessed peasants, the undernourished and victims of the harshest exploitation hardly
participate in these forums and their voices are not heard. It is feared that some powerful
336 Ibid., 127-29. 337 Francine Mestrum, “The World Social Forum: A Democratic Alternative,” trans. Victoria Bawtree, in Globalizing Resistance: The State of Struggle, ed. Francois Polet (London: Pluto Press, 2004), 200-02. 338 Santos, The Rise of the Global Left, 120-21. NGOs have hijacked the WSF.339
Though the World Social Forum suffers from many internal contradictions and
organizational limitations it, nevertheless, is gradually evolving as a process. Since the World
Social Forum is a new and innovative type of organization, dedicated to counter-hegemonic
thinking, it cannot be evaluated merely on the basis of the common prevailing criteria and strategies of social movements and thus be dismissed as a failure. It has made great efforts to address its organizational problems and other deficits. Its International Council has demonstrated that it is ready to learn from its past experiences and mistakes and to transform itself. Some have recommended that, in order to promote a more comprehensive and consistent alternative to neo-liberal globalization, the WSF should concentrate more on identifying what is common within its diversity and reinforce that, without denying what separates them.340
1.1.3. Fair Trade Movement
Corporate-run and export-oriented monocultures are primary causes of the growing
poverty and food insecurity facing farmers and agricultural workers in many lands. Corporate
agriculture is threatening the self-reliance of small-scale community agriculture and local
communities. There are several peasant movements and NGOs all over the world opposing
industrial agriculture. Millions of farmers and landless peasants in India, Japan, Bolivia, the
Philippines, Germany, Brazil, Kenya, and other countries are mobilizing to reclaim their
rights to land, healthy food, biodiversity, safe environment, and traditional crops.341 Global
Fair Trade movement is one such dynamic and fast-growing international movement. It
demonstrates that international trade can be used as a tool to address global inequality, small
and poor farmers’ poverty, and social and economic injustice.
339 Ibid., 69, 85-86. 340 Ibid., 81, 133. 341 Cavanagh, Alternatives to Economic Globalization, 218. 117
Fair trade is a social movement, an alliance between Alternative Trade Organization
(ATO) and Fairtrade Labeling Organizations (FLO). It primarily aims to provide market opportunities for products from poor producers in developing countries. It is a reaction to the neo-liberal free-trade policies. So, it strongly opposes the conventional free-trade networks and powerfully critiques the North South trade inequalities. It seeks to direct the transformative powers of market and international trade to address the problem of global inequality, economic instability, global hunger, socio-political injustices and create a greater social equity at the global level. It encourages production cooperatives, small farming, and organic agricultural practices.342 Several producers, customers, and distributors around the
world have become a part of this movement. Numerous dedicated organizations and
associations, such as Fair Trade organizations, Alternative Trade Organizations, Fair trade
brands, solidarity and development NGOs, anti-sweatshop movements, and church groups
have contributed to the development of this movement.343
The two key distinct goals of the fair trade movement are: “(1) to foster egalitarian
trade links between Northern consumers and Southern producers and (2) to campaign for
changes in conventional (unequal) trade practices.”344 These two broad goals are further
spelled out into several concrete and clear objectives, though some may appear overly
ambitious. Some of them are: 1. to improve the livelihood and well-being of producers in developing countries by encouraging small farming, improving market access, better market prices and strengthening producers’ cooperatives. 2. to raise awareness among Northern consumers about the negative consequences of conventional trade. 3. to protect human rights by promoting social justice, sound environmental practices, and economic security. 4. to set
342 Ibid., 259-60. 343 Stephanie Barrientos, Michael E. Conroy, and Elaine Jones, “Northern Social Movements and Fair Trade,” in Fair Trade: The Challenges of Transforming Globalization, ed. Laura T. Raynolds, Douglas L. Murray, and John Wilkinson (London/New York: Routledge, 2007), 59. 344 Laura T. Raynolds and Michael A. Long, “Fair\Alternative Trade: Historical and Empirical Dimensions,” in Ibid., 18. an example of a fair partnership in trade. 5. to campaign for the change of rules and practices
of conventional international trade.345
Fair Trade movement developed in North America and Europe in the 1940s, through
the initiatives of faith-based Christian associations and other civil society organizations like
Oxfam, with the intention of helping disadvantaged Southern producers and workers. They
created alternative trade networks by selling the products of producers from developing
countries through “World Shops.” Until the late 1980s their activities were mainly limited to purchasing handicrafts of poor producers from the South and selling them directly to consumers in Northern markets without middlepersons. From the late 1980s, with the establishment of product certification and Fair Trade Labeling Organizations (FLO), Fair
Trade movement grew rapidly into the domain of large transnational corporate traders and retailers. Today, the total sale of Fair Trade commodities has grown significantly, reaching annual sales of over US$ 1.6 billion.346 The major share comes from the labeled
commodities.
Fair Trade Labeling Organizations has been laboring hard to maximize its sale of
certified commodities. It began with coffee, imported from Guatemala into the Netherlands in
1973 (IFAT), and coffee continues to be a major product in Fair Trade. However, other
commodities, such as tea, cocoa, chocolate, rice, sugar, bananas, fresh fruits, fruit juices, and
other goods are added to its list. In 2004 it had 18 certified commodities and 433 certified
producer organizations registered under it, spread over 53 countries. Moreover, the global
South has become a key player in this movement, as most of the labeled commodities are
originating across Latin America, Africa, and Asia. For example, Latin America represents
the hub of certified Fair Trade production. It has 314 producer organizations that export more
than US$ 95 million labeled commodities per annum. Most of the certified coffee comes
345 Douglas L. Murray and Laura T. Raynolds, “Globalization and its Antinomies: Negotiating a Fair Trade Movement,” in Ibid., 5. 346 Ibid., 8. 119 from Latin America.347 Besides, it has provided market access to producers with whom
multinational corporative business was not interested in trading. It has also successfully
campaigned, at various levels of policy making, to pass pro-poor legislation. It has raised
global awareness of millions of consumers about the unfair and unsustainable corporate
business practices and helped to change their attitudes toward business and development.348
The expansion of Fair Trade movement and demand for its labeled commodities has,
however, caused a number of challenges and conflicts within the movement. Diverse and
conflicting approaches and perspectives to fair trade within the movement is one of the main
challenges that it faces today. The tension between those who demand a profound
transformation of the market system and those who argue for reforming the market’s
priorities, practices and institutions has been a continual challenge to the movement.349 This
tension can be seen in persistent frictions between the ATO and the FLO approaches. Though
both are committed to the goals of Fair Trade movement, both pursue them quite differently.
The ATO functions through exchange networks and partnerships by direct involvement with
producers in importing and retailing products. Hence, it tries to create alternative exchange
networks and egalitarian norms in their face-to-face relations with producers and consumers.
On the other hand, Fair Trade Labeling does not handle importing and sales directly, but
rather works through more formalized and institutionalized rules, standards, and product
labeling procedures within mainstream markets. There is no direct communication with
producers and consumers. The communication is essentially reduced to a small certification
label. It has developed formal standards for traders and producers. The FLO has become
347 Raynolds, “Fair\Alternative Trade,” 19-20, 25. Also see John Wilinson and Gilberto Mascarenhas, “Southern Social Movements and Fair Trade,” in Fair Trade: The Challenges of Transforming Globalization, ed. Laura T. Raynolds, Douglas L. Murray, and John Wilkinson (London/New York: Routledge, 2007), 126. 348 Andy Redfern and Paul Snedker, Creating Market Opportunities for Small Enterprises: Experiences of the Fair Trade Movement (Geneva: International Labor Office, 2002), 1. http://www.bdsknowledge.org/dyn/bds/ docs/220/ WP30-2002.pdf (accessed February 20, 2011). 349 Laura T. Raynolds and Douglas L. Murray, “Fair Trade: Contemporary Challenges and Future Prospects,” in Fair Trade: The Challenges of Transforming Globalization, (London/New York: Routledge, 2007), 223. more bureaucratic and industrial in nature.350
Moreover, the expansion of Fair Trade labeled commodities, to meet the Northern market demand for volume, quality, and variety of labeled products beyond the traditional
food items, has raised other challenges. Skeptics argue that the rapid integration of the FLO
with large-scale producers, branders, and with supermarkets has given opportunity to some
corporations, which have little visible commitment to social justice, to misuse Fare Trade
labels to improve their public image and redouble their profits. This has raised considerable
doubts about the future of Fair Trade’s core values and its historical mission. Questions are
also raised about the place of small-scale producers within the organization, as many small-
scale producers fear that the participation of TNCs would displace the cooperatives from the
Fair Trade market.351
The Alternative Trade Organization (ATO) and Fair Trade Labeling groups have tried
to work together to achieve their common goal through an alliance of the Fairtrade Labeling
Organizations (FLO), the Network of European Worldshops (NEWS), the International
Federation of Alternative Trade (IFAT), the Fair Trade Federations (FTF) in the United
States and Canada, and European Fair Trade Association (EFTA).352
1.2. Localization
In the context of the current wave of globalization adversely affecting local
communities -- their economic life, cultural and traditional values, identity and dignity –
emphasis on empowering the local communities has gained momentum. Based on the
context, local is defined as “a subgroup within a nation-state; it may also be the nation-state
itself, or occasionally, a regional grouping of nation-states.”353 The principle of subsidiarity is
the underlying principle of the localization movement. The principle of subsidiarity supports
350 Raynolds, “Fair\Alternative Trade,” 18-19. 351 Barrientos, “Northern Social Movements and Fair Trade,” 58-60. Also see Murray, “Globalization and its Antinomies,” 9-10. 352 Murray, “Globalization and its Antinomies,” 3-5. Also see Raynolds, “Fair\Alternative Trade,” 16-18. 353 Cavanagh, Alternatives to Economic Globalization, 149. 121 the notion that economic, political, social and cultural decisions should be made at the local level whenever it is possible. It advocates the idea of moving power and responsibility closer to the people. Based on this principle, localization demands a redirection of economic policies and structures in order to enable nations, local governments, and communities to reclaim their economies, diversify their economic activities as much as possible, and to ensure more sustainable and fair forms of development. Localization encourages small-scale local production and consumption and thereby shortening the lines of economic activities.
However, localization does not mean autarky. It supports exports and imports as long as these exchanges do not destroy local communities.354
Localization requires many short-term and long-term changes in subsidy policies,
taxation and investment policies. For example, it involves changing subsidy policies from
giant development projects to local enterprises, such as small-scale organic agriculture,
small-scale energy, transport infrastructures, community banking, development funds, and so
on. It also demands changing investment policies from foreign direct investment into ones
that favor local direct investment. Foreign investment may be encouraged only when it has
positive impact on local employment with decent wages and on the quality of local life.355
One of the ways to empower local community is by protecting and supporting local production systems and markets. National and international policies should reinforce local efforts by providing access to capital, technology, global information networks, and infrastructure. Empowerment of local community also requires clustering together different local enterprises through inter-firm cooperation. This can enable them to become globally competitive. Empowerment of local communities helps to build capabilities that are essential to take advantage of the global opportunities.356 Many suggest that the development of
adequate education and health facilities for the poor is the most important requirement for
354 Ibid., 149-151. 355 Ibid., 152-57. 356 World Commission, A Fair Globalization, 67-70. successful empowerment of local people. Effective education and health systems are essential
pre-requisites for a community to lead a self-determined life and to participate fully in the
economy. Proper education not only empowers an individual but also a society. Without
developing adequate and appropriate capabilities of local people, it is not possible for them to
participate fully in the global economy.357
Vandana Shiva, a great supporter of localization, proposes the idea of internal
liberalization as an alternative to corporate agro-business agriculture. Internal intensification,
which is based on biodiversity intensification of farming, she argues, would free a country
from external dependence upon seeds, agrichemicals, and foods produced by transnational
corporations. The integration of farms with diverse local markets would allow small
producers to produce for local markets and for local consumption. It would free the poor farmers from the bondage of debt and its evil effects. According to Shiva’s analysis, the farmers must remain the masters of the markets.358
Critics of the localization alternative point out that the fundamental difficulty with the
localization model is that it is blind to its costs. Localism fails to take advantage of the cost-
reducing advanced technologies in international communications and transportation. It
confirms production at local levels and locks in an emphasis upon a smaller range of goods at
a higher price.359 The advocates of localization argue that the cheaper products that globalization brings to the market signify export dumping and not market efficiency.
Moreover, they argue that the goal of societies should be to ensure that all the needs of all people are met, rather than merely to promote cheaper prices for products.360
357 Ibid., 62. 358 Vandana Shiva, “Globalization of Agriculture, Food Security and Sustainability,” in Sustainable Agriculture and Food Security: The Impact of Globalization, ed. Vandana Shiva and Gitanjali Bedi (New Delhi: Sage Publications, 2002), 62-64. 359 Jay R. Mandle, Globalization and the Poor (UK: Cambridge University Press, 2003), 51 360 World Commission, A Fair Globalization, 162-63. 123
1.3. Reformist Alternatives
Between the two extremes of the over-enthusiastic neo-liberals and the radical transformers, we find reformists, who advocate a fair trade approach within the market economic system. Their main argument is that global free trade, when it is managed wisely and fairly, has the potential and positive ability to increase economic growth and thereby effectively reduce global poverty. They strongly believe that through proper public policies to integrate economic and social goals, adequate political and legal institutions at all levels, and by reforming global governance as well, the current globalization can be reformed into a positive force to overcome global poverty and inequality. However, the reformist model does not challenge the existing deeper capitalist system. It works within the bounds of the capitalist production system and rationalist knowledge. It does not advocate a full-scale social transformation.361
The reformists argue that the primary concern of alternatives to the current globalization should not be whether or not our world needs globalization, but rather, how to reform the current globalization so that it works for all, both the rich and the poor and for present and future generations. Enthusiasts for alternatives must engage in propagating international trade agreements and negotiations that are fair and just and that reflect the interests and concerns of the developing countries.362 Oxfam International, which advocates a
reformist model regarding the current globalization, in its 2002 report Rigged Rules and
Double Standards, argues that the main problem with present international trade is that its
rules are ‘rigged in favor of the rich’. It suggests that changing certain institutions, rules, and
policies would make it fairer for the poor.363 The European Social Democrats also propose
reform and regulation of neo-liberal globalization rather than its outright rejection. Their
361 Jan Aart Scholte, Globalization a Critical Introduction (New York: St. Martin’s Press, 2000), 36-37, 285. 362 Stiglitz, Making Globalization Work, 23. 363 Oxfam International, Rigged Rules and Double Standards: Trade, Globalization, and the Fight against Poverty (Oxford: Oxfam GB, 2002), 6. main recommendations are establishing and strengthening global governance institutions,
regulating international markets to avoid undesirable and unjust outcomes, and reforming the
international financial institutions-- the IMF, the World Bank, and the UN.364 Joseph Stiglitz
advocates reforming the IMF, the World Bank, and the WTO so that every country can
meaningfully participate in the formation of global trade policies. Peter Singer and Barber,
The World Commission on the Social Dimension of Globalization, and others propose a greater role for the UN and strengthening its multilateral system.365
Reformists recommend several proposals and broad directives to make global trade more inclusive, poor people-oriented, and just. The World Bank policy research report,
Globalization, Growth, and Poverty, suggests that dismantling of protectionist trade barriers in developed countries is the first important step in reforming international trade. Developed countries must remove all trade barriers and open their markets to all developing countries in order to export their commodities. Second, the developing countries should invest in creating a welcoming climate and infrastructure for development. They must invest in developing good governance, well-functioning bureaucracies, contract enforcement, and legal mechanisms to protect property rights. The national governments must also invest to improve education and health services. Third, developed countries should contribute more financial and technological aid to developing countries to upgrade their agricultural methods, seeds, and technologies. Fourth, priority must be given to freeing very poor countries from their debt.366 Jeffrey Sachs exhorts antiglobalization movements to make greater efforts at
reforming globalization so that it addresses the needs of the poorest of the poor in the world.
364 Wil Hout, “European Social Democracy and the Neo-liberal Global Agenda: a Resurgent Influence or Capitulation?,” in The Neo-Liberal Revolution Forging the Market State, ed. Richard Robison (New York: Palgrave Macmillan, 2006), 226-27. 365 Eva Nieuwenhuys, “Social, Sustainable Globalization Requires a Paradigm Other Than Neo-Liberal Globalism,” in Neo-Liberal Globalism and Social Sustainable Globalization, ed. Eva Nieuwenhuys (Leiden/ Boston: Brill Academic Publishers, 2006), 69. 366 World Bank Policy Research Report, Globalization, Growth, and Poverty: Building an Inclusive World Economy (New York: Oxford University Press, 2002), 18-21. 125
He endorses the idea that to end global poverty alternatives to the current globalization should focus on developing at least five types of capital: 1. human capital – education and health. 2. Business capital, infrastructure capital – roads, power, sanitation, airports, ports, telecommunication. 3. Natural capital – protection of ecosystems, healthy soils, biodiversity.
4. Public institutional capital – commercial laws, judicial systems, policing. 5. Knowledge capital – scientific and technological know-how.367
In general, the reformists demand that alternatives to neo-liberal globalization should
be based on certain principles. The most common core principles that they propose are:
participation, ecological sustainability, effective democracy, social justice, respect for
diversity and equity, and subsidiarity.
1.3.1. Fair Global Governance
Joseph Stiglitz, with his experience in the World Bank as its chief economist and
senior vice president, argues that the main problem is not globalization per se, but with how it is managed by international institutions. He assumes that trade liberalization, when managed well, has enormous potential to bring about welfare-enhancing results to people. He proposes
that the most fundamental change required, to make it more human and work for the poor, is
reform of the IMF, the WTO, and the World Bank.368 He argues that there is a democratic
deficit in the way the current globalization is managed. A key issue in the global trade
agreements is that inequalities in economic power translate into bargaining power in
negotiations. The rich corporate entrepreneurs decide the terms and conditions of global trade
agreements. The powerful TNCs lobby hard and influence the policies of the WTO. The
combination of the domination of voices of corporate interests and lack of transparency and
accountability about the outcomes of these international institutions leads to the international
367 Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York: Penguin Books, 2005), 24 368 Stiglitz, Globalization and Its Discontents, 226. financial institutions promoting pro-corporate interests.369 Thus, the most “daunting challenge in reforming globalization is to make it more democratic.”370
Several reforms in the major elements of the IMF, the World Bank, and the WTO are recommended to ensure that they respect human rights, the sovereignty of nations, wider participation and representation, promote entrepreneurship, and become more accountable.
The most common principles suggested to reform global governance are: universality, fairness, subsidiarity, efficiency, and accountability.371 Greater accountability and greater transparency in their policies is the most pressing demand. Transparency about the policies of the international financial institutions involves making public the true beneficiaries and victims of their policies, their proposed developmental model and the assumptions about their forecast results. This evaluation of their models, policies, and forecasts should be conducted by an independent agency, preferably by the UN.372 Beside these broad changes, reformists also make some concrete recommendations to reform global governance. Some of them are:
First, replace the current voting and representation structure at the IMF and the World Bank with a fairer system of voting rights by increasing representation from developing countries.373 Second, widen the representation at the IMF and the WTO by including other representatives besides trade and finance ministers. Third, enhance the ability of developing countries to participate more meaningfully in the decision-making process by providing them information about the impacts of the proposed agreement on their country. These changes will not be easy to implement, as the developed countries are unlikely to give up their privileges and voting rights, which give them an effective veto regarding such reforms.374
369 World Commission, A Fair Globalization, 77-78. 370 Stiglitz, Making Globalization Work, 132. 371 Jack Boorman, “IMF Reform: Congruence with Global Governance Reform,” in Global Governance Reform: Breaking the Stalemate, ed. Colin I. Bradford Jr. and Johannes F. Linn (Washington D.C.: Brookings Institution Press, 2007), 17. 372 Stiglitz, Making Globalization Work, 283. Also see Joseph E. Stiglitz, “The Overselling of Globalization,” in Globalization: What’s New?, ed. Michael M. Weinstein (New York: Columbia University Press, 2005), 248-49. 373 World Commission, A Fair Globalization, 116. 374 Stiglitz, Making Globalization Work, 281-84. 127
The issue of reforming the Bretton Woods Institutions, though urgent, is complicated by conflicting needs and global politics. While on the one hand, there is a legitimate demand from the large and emerging market economies to acquire a greater voice and participation in these institutions, there is fear on the other hand that the poorer and smaller nations may be excluded. There is also the issue of maintaining a proper balance between efficiency of these institutions and increasing the participation of more countries into them.375
Strengthening the U.N. system and its mandate by providing it with more human and financial resources is the recommendation of those who argue for decommissioning the
Bretton Woods Institutions. They argue that the role and responsibility of international institutions be limited to those functions that national governments cannot reasonably carry
out. The capacity of the WHO, the International Labor Office, and the United Nations
Environment Program must be upgraded to address global trade-related health, labor, and
environmental issues. Other than reforming and strengthening the U.N. bodies, creating new global institutions, such as the U.N. International Insolvency Court, U.N. International
Finance Organization, Regional Monetary Funds, U.N. Trade Dispute Courts, and U.N
Environmental Organization, are also proposed.376
1.3.2. International Fair Trade
The principle of social justice demands that the international trade agreements and
regulations should be governed by fairness. According to Stiglitz fair trade is “the trade that
would emerge if all subsidies and trade restrictions are eliminated.”377 The principle of fair
trade has become important in the context of unequal power relations between developed and
developing countries. It is true that in a global market the issue of fair trade is controversial
and contentious, as trade agreements in different circumstances and in different countries
375 Colin I. Bradford Jr. and Johannes F. Linn, “Global Governance Reform: Conclusions and Implications,” in Global Governance Reform: Breaking the Stalemate, ed. Colin I. Bradford Jr. and Johannes F. Linn (Washington D.C.: Brookings Institution Press, 2007), 116. 376 Cavanagh, Alternatives to Economic Globalization, 321-29. 377 Stiglitz, Making Globalization Work, 73. give rise to different effects and results. However, any agreement that is intentionally drawn
to become more beneficial to a developed country than to a developing country should be considered unfair. One cannot justify greater protection of TNCs from developed countries at the cost of the domestic firms and small businesses.378 Fairness in trade also demands that
developing countries should be treated differently and should receive special treatment as
they operate on an unequal playing field. One proposal that is widely supported by many
economists is that the rich countries should open their markets to the poor countries without
reciprocity and political conditionality.379
The issue of social justice is complex. There are pluralities of principles that claim to
be relevant to assess justice in society. The most common principles of social justice could be
summed up as: “to each an equal share, to each according to individual need, to each
according to personal effort, to each according to social contribution, and to each according
to merit.”380 Each of these principles has some merits and some limitations. None can be
brushed aside as foundationless nor can be elevated as the single universal principle of justice
in all circumstances and at all times. Based on these principles, philosophers have developed
the utilitarian, the libertarian, and the egalitarian theories of justice.381
John Rawls’s “justice as fairness” is a well-known social justice theory. He considers
that fairness should be the foundational basis in public social institutions for the pursuit of
social justice. Justice as fairness means avoiding bias in our evaluations by taking into
account the interests and concerns of others, and in particular the “need to avoid being
influenced by our respective vested interests, or by our personal priorities or eccentricities or
prejudices.”382 Rawls develops his basic principles of justice in his hypothetical and
378 Stiglitz, Fair Trade for All, 74-79. 379 Stiglitz, Making Globalization Work, 82-83. 380 William H. Shaw and Vincent Barry, Moral Issues in Business, 10th ed. (Australia/Brazil/Canada/Mexico/ Singapore/Spain/UK/USA: Thomson Wadsworth, 2007), 106. 381 Ibid., 106. 382 Sen, The Idea of Justice, 53-54. 129 nonhistorical ‘original position’. The ‘original position’ is an imagined situation, in which people under the veil of ignorance, having no knowledge of their personal identities or their vested interests or their social position and status in society, deliberate over for an agreement for the principles of fairness. He argues that in the original position people are free and equal, objective and impartial, and supported by reason. Thus it satisfies the conditions of a fair agreement. Thus the principles agreed upon under these conditions can be claimed as principles of justice.383 In this veil of ignorance people will choose two principles of justice
as the most basic governing principles to specify basic rights and liberties, and to regulate social and economic inequalities.
Rawls’s two principles of justice are: First, “each person is to have an equal right to
the most extensive basic liberty compatible with a similar liberty for others.” And second,
“social and economic inequalities are to be arranged so that they are both (a) reasonably expected to be to everyone’s advantage, and (b) attached to positions and offices open to
all.”384 His second principle states that inequalities with regard to wealth, power, positions,
honors and rewards are permitted only if they result in compensating benefit for everyone,
particularly for least well off. Once these principles of justice are chosen, the next step should
be to identify institutions of a basic structure of society based on these principles. He
emphasizes the need for just and fair institutions to ensure that all citizens’ equal basic rights
and liberties and fair opportunities are secure, in other words, to ensure that all citizens have
access to the primary goods.385
Rawls’s idea that fairness is central to justice is inspiring and new. His central
concern for liberty as an overriding value in assessing and evaluating the justice of social
arrangements highlights the role of liberty in pursuing justice. Despite these and many other
383 John Rawls, Justice as Fairness: A Restatement (Cambridge, MA: Harvard University Press, 2001), 14-16. Also see John Rawls, A Theory of Justice (Cambridge, MA: Harvard University Press, 1971), 12; Sen, The Idea of Justice, 10. 384 Rawls, A Theory of Justice, 60. 385 Sen, The Idea of Justice, 60. Also see Rawls, Justice as Fairness, 58-60. positive lessons, his theory of justice falls short in certain regards. One of the problems with
the theory is that it is primarily concerned to work out, theoretically, just and right basic
institutions rather than working on the actual realization and accomplishment of justice in society. Critics of his theory hold that the issue of justice is not primarily having theoretically worked out perfect principles of justice, but rather how just institutions can be set up here and now to advance justice by enhancing liberties, freedoms, and the well-being of people who wrestle with injustices in their daily concrete lives.386
Amartya Sen argues that the primary focus of justice should be on the advancement
of justice based on a framework of comparison of justice and not on identifying perfectly just
institutions. He thus proposes a comparative route that concentrates on actual realizations in
the societies involved, rather than the transcendental route that concentrates on institutions.
He states, “If the theory of justice is to guide reasoned choice of policies, strategies or institutions, then the identification of fully social arrangements is neither necessary nor sufficient.” 387 The understanding of justice then needs to take into account the concrete lives
that people manage to live and their experiences. Taking into account the well-being of
people means analyzing human freedom and their capabilities to choose between different
kinds of lives. I will deal more with this topic later in this chapter.
Based on Rawls’s and Sen’s understanding of social justice, we can argue that the
main aim of demanding fairness in international trade should be to eliminate and reduce some
of the outrageous unjust global trade arrangements that deprive the majority of people an
opportunity to live their lives in a free and dignified way. The goal is to make our world a
more just and equal and not to establish perfect international economic institutions. Keeping
this frame in mind, I discuss some of the concrete recommendations that are made to make
international trade more just and fair to enhance the well-being of all people.
386 Sen, The Idea of Justice, 81. 387 Ibid., 15. 131
To achieve multilateral, balanced, and fair trade, The World Commission on the Social
Dimension of Globalization recommends that a special space should be provided for
developing countries by reviewing the WTO rules. It suggests that the Agreement on
Subsidies and Countervailing Measures, the Agreement on Trade-Related Investment
Measures, the Agreement on Trade-Related Aspects of Intellectual Property Rights, the
Review of Standards and Codes, and others that make strategic promotion of domestic firms
in developing countries more difficult must be changed in favor of allowing developing
countries to accelerate their development. It also recommends that the intellectual property
rights policy must be changed. It has to be more balanced so that it protects the interests of
both the inventers of new technology and of its users, particularly the users from low-income
countries.388 The Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPs), which deals with patents and copyrights, has become a controversial trade
agreement. There is no doubt that intellectual property rights lead to innovation and better
economic performance. However, at the same time intellectual property rights must also
respect principles of social justice and traditional knowledge. To make it more just, a
recommendation is made that instead of having a single globally standardized intellectual
property regime, there should be distinct and separate intellectual property regimes for least
developed, developing, and advanced developed countries.389
1.3.2.1. Principles for Fair Trade Agreements
Most of the reformists recognize that the main problem with current international
trade agreements is that their principles and policies guiding international trade negotiations are concerned with safeguarding corporate interests. These should be fundamentally changed.
Even some pro-neoliberal economists suggest changes in the policies of international trade to
make the benefits of globalization reach broader humankind. Among the principles of fair
388 World Commission, A Fair Globalization, 82-85. 389 Stiglitz, Making Globalization Work, 118-19, 127. trade, the following three are most important:
First, all trade agreements should be based on proper economic analysis. The
participating countries must have proper information about the precise distributional impacts
and consequences of the proposed international trade agreements on their countries and on various groups within their countries. The WTO should take responsibility for producing a general equilibrium incidence analysis that looks objectively at the consequences of alternative proposals for all the countries involved in the agreement. The analysis should be sensitive about its assumptions and avoid the danger of embracing the assumptions of the neo-classical model, which assumes full employment of resources, perfect competition, perfect information, and well-functioning markets. It needs to take into account that the most common features in developing countries are high unemployment rates, weaker safety nets, poorer risk markets, and larger adjustment costs.390 This transparency would help the developing countries to make their decisions based on reasonable information.
Second, any trade agreement should be fair so that the developing countries benefit from it. Oxfam International and others insist that developed countries should reduce their protectionism, by reducing all tariff peaks and eliminating non-tariff barriers on exports from developing countries, and allow greater market access to developing countries.391 Joseph
Stiglitz and Andrew Charlton have developed a framework, the “Doha Market Access
Proposal (MAP),” in the place of the failed ‘Development Round’ of the WTO.392 It is designed to give a special and differential treatment to developing countries because the developing countries are not on level terrain with more developed countries. The MAP demands a commitment by and an obligation upon all the WTO member countries to provide free market access for all countries that are poorer and smaller than them. They argue that it
390 Stiglitz, Fair Trade for All, 70-71. 391 Oxfam International, Rigged Rules and Double Standards, 17-18. Also see World Bank, Globalization, Growth, and Poverty, 155. 392 Stiglitz, Fair Trade for All, 94. 133 would expand trade liberalization between all countries, especially in South-South relations.
Moreover, the MAP proposes that the liberalization obligations are to be distributed progressively, that is, it requires greater liberalization from the more developed and larger countries and very little from the poorest and most vulnerable countries. The proposal provides an option to developing countries to protect some of their key industries by imposing higher tariffs on imports from more developed or larger countries. The advantage of the MAP framework is that it does not demand reciprocity from poor countries to rich countries, and yet places obligations on both the developed and developing countries.393
Third is the principle of procedural fairness. It demands an openness and transparency
in the procedure of trade negotiations and in the discussions of trade negotiations. Taking into
account the asymmetry of power and information among WTO member countries, procedural
fairness becomes an important element in fair trade. The issue of procedural fairness involves
greater participation from developing countries in the setting up of the agenda, in the
decision-making process, and in the process of resolving trade disagreements. Transparency
and openness enable more voices in the negotiating process and a check on the abuses by the
powerful countries.394
1.3.3. Developing Infrastructure and Human Capabilities
The quality of infrastructure plays an important role in a country’s participation in
global development. It is a commonly agreed upon conclusion today that lack of adequate
social, political, and economic infrastructure in developing countries becomes a main
obstacle for poor people to participate in the process of globalization. The rural poor in
developing countries are excluded from the benefits of international trade as they face
barriers such as inadequate roads and irrigation, weak marketing infrastructure, lack of telecommunications and information networks, inadequate basic education and health
393 Ibid., 95-102. 394 Ibid., 82. services, and lack of capital. In the globalized world, people have to be highly skilled to
participate in market opportunities. Development of non-market institutions demands a
stronger commitment on the part of national governments, with good policies, programs, and
institutions, to allocate greater resources to develop good health care, education, basic
infrastructure, and to protect the environment. It is the responsibility of local governments to
create strong and just institutional frameworks to implement pro-poor schemes and help the
impoverished people to improve their quality of life.395 Proper education and health care
facilities should become the central concerns of any national government’s strategy that aims
to expand the benefits of international trade and economic liberalization to its entire
people.396
The major problem with the current economic system is that the issue of poverty and
inequality is reduced in the popular imagination only to the deprivation of income. This
overemphasis on income has resulted in the neglect of other deprivations -- health, education,
social exclusion, land reforms, and unemployment.397 However, experiences around the
world show that even when a country experiences rapid growth in its national income a significant portion of its population can continue to experience extreme poverty and deprivations. For example, some parts of northern India have remained extremely poor
despite the country registering around 8 percent of annual GDP growth. Most of these poor
are disconnected from the market forces as they lack proper human capabilities – good
education and health and proper skills.398 It is important to recognize that improving
educational, health and other basic capabilities of people not only has instrumental value to
improve their economic and social performance but also has an intrinsic value to improve
395 Oxfam International, Rigged Rules and Double Standards, 240-242. 396 Deepa Narayan, and others, Voices of the Poor: Crying Out for Change (New York: Oxford University Press for the World Bank, 2000), 270. 397 Amartya Sen, Development as Freedom (New York: Anchor Books, 1999), 109. 398 World Commission, A Fair Globalization, 62-63. 135 their quality of life.399
1.3.4. Sustainable Development
The consumeristic and unlimited profits maximization approach associated with the neoliberal model of development is unsustainable. It urgently demands alternative models that respect the ability of future generations to meet their needs. The Brundtland Report, published by the World Commission on Environment and Development in 1987, defines sustainable development as “development that meets the needs of the present without
400 compromising the ability of future generations to meet their own needs.” The commission
includes every dimension of present and future well-being of economic, social and
environmental aspects of life. The well-being of future generations depends on several things.
It depends on the magnitude of stocks of exhaustible resources that we leave to the next
generations, on the maintenance of the quantity and quality of all the renewable natural
resources that are necessary for life, on how much physical capital we pass on to future
generations, and on how much we are investing in institutions to develop the human
capability of future generations.401 The Johannesburg Declaration, the third conference on
sustainable development by the United Nations in 2002, speaks about the three pillars of
sustainable development: economic development, social development and environmental
protection.402 Amartya Sen asserts that sustainability should take into account not just
preservation or increase of quantities of life, but also qualities of human life. It should include
people’s freedom and capability to have what they value and have reason to value as
important to their lives. He defines sustainable development as “the preservation, and when
399 Jean Dreze and Amartya Sen, India: Development and Participation, second edition (New York: Oxford University Press, 2002), 7. 400 Report of the World Commission on Environment and Development, Our Common Future. http://www.un-documents.net/wced-ocf.htm (accessed January 10, 2011). 401 Joseph E. Stiglitz, Amartya Sen, and Jean-Paul Fitoussi, Mismeasuring our Lives: Why GDP Doesn’t Add Up (New York/London: The New Press, 2010), 98. 402 Cornelis de Groot, “Can Corporate Governance Contribute to Sustainable Development?,” in Neo-Liberal Globalism and Social Sustainable Globalization, ed. Eva Nieuwenhuys (Leiden/Boston: Brill Academic Publishers, 2006), 203. possible expansion, of the substantive freedom and capabilities of people today ‘without compromising the capability of future generations’ to have similar – or more – freedom.”403
Sustainable development demands a greater corporate social responsibility. Many
civil and labor movements all around the world are campaigning to resist the powers of the
corporate world with stronger regulations and legislations that demand greater corporate
responsibility and accountability. They assert that there should be stronger regulations that
publicly endorse the protection of the environment, labor and human rights, and avoid a race
to the bottom. The criminal conduct of several corporations, the abuses of limited liability at
the global level, the habitual lying of corporations to their shareholders, and their disregard of
codes of conduct – as they are confident that their financial power can protect them -- have
raised serious doubts about the effectiveness of voluntary and self-monitored codes of
corporate conduct. Corporate accountability campaigns seek to establish legally enforceable
standards for corporate conduct. They want stronger legislation on just wages and safe
working conditions for all workers in corporate firms, public health and safety, the
environment, financial institutions and transactions, political campaign contributions, and on
lobbying practices.404 Besides these, recommendations are also made to have global
competition laws with a global authority to enforce them with criminal sanctions and to
create international legal frameworks and international courts.405
Sustainable development also demands the empowerment of local communities by empowering local governments, local values, and economies. It must protect local economic space to make it more productive through rural industrialization, small enterprises, market assistance, and inter-firm cooperation.406
Measuring sustainable development is a complicated task. Though there are wide
403 Sen, The Idea of Justice, 250-52. 404 Cavanagh, Alternatives to Economic Globalization, 284-85. 405 Stiglitz, Making Globalization Work, 203. 406 World Commission, A Fair Globalization, 68-70. 137 varieties of sustainability measurement approaches, there is still no one consensual and comprehensive global approach to assess sustainability. Sets of indicators or dashboards measurement is one of the widespread approaches used today to measure sustainable development. This involves gathering and directing a series of indicators that bear a direct or indirect relationship to socio-economic progress and its durability. We observe extreme variability in these indicators and this diversity is its main drawback. Adjusted GDP, another sustainability measurement, begins with the GDP and then tries to correct it by taking into account those elements that GDP has neglected but nevertheless remain important for sustainability. The Index of Sustainable Economic Welfare (ISEW), The System of
Environmental Economic Accounting (SEEA), and the Genuine Progress Indicator (GPI) are among the several versions of the adjusted GDP approach. These measures account for the loss of wetlands, farmland, forests, and other natural resources and add value for air pollution and ozone depletion. The value of the natural resource depletion is calculated by measuring the investment necessary to generate a perpetual equivalent stream of renewable substitutes.
For example, the SEEA, through “Green GDP” and environmentally-adjusted NDP (ea-
NDP), purports to measure the contribution of the environment to the economy and the impact of the economy on the environment. It takes into account the overuse of environmental assets and value of the decline in the quality of resources. The problem with the SEEA and other adjusted GDP measurements is that they only charge GDP for the depletion or damage to environment, but fail to measure overconsumption of resources or underinvestment on resources.407
Ecological Footprint analysis tries to overcome the limitation of aforementioned
sustainability measures by focusing on humanity’s overconsumption or excessive pressure on
biological resources and services. It is inspired by the general approach of comparing current
407 Stiglitz, Mismeasuring our Lives, 99-107. flows of consumption and their effects on the environment. It measures a population’s impact
on nature in a single metric: area of global biocapacity. Ecological footprint analysis calculates a nation’s footprint by tracking consumption and translating that into the amount of productive land and water area needed to sustain the human consumption and absorb its ensuring wastes.408 It indicates whether or not our present use of crop lands, fisheries, forest
lands, pasture lands, built space, and energy lands can be sustained. “When a population’s
footprint is smaller than available biocapacity, then it is considered sustainable.”409 The
present rate of humanity’s consumption is unsustainable, as it exceeds its ecological limits by
39 percent. The footprint analysis also has a number of shortcomings. It excludes footprints for water consumption, toxins, greenhouse gases, other species, and a vast portion of the earth where productivity is assumed negligible. It also fails to factor the entire planet into the carbon cycle. To address some of these shortcomings Footprint 2.0 has been developed.
Energy land is one of the main additions to the standard biocapacity estimates in the
Footprint 2.0. It adds 8.27 global hectares per capita to the final global biocapacity estimates and thus increases the size of the average ecological footprint.410
There are several other recommendations and policy changes that reformists propose
to reform the current mode of globalization. The one common theme that runs through all
their recommendations is this: to reform the current globalization and make it work for the
well-being of all people in developing and developed countries, we need a multi-faceted
strategy. Both developed and developing countries should seriously commit themselves to
fulfill their responsibilities. The developed countries have a greater commitment and responsibility to put into practice what they preach about fair and free trade regime to the developing world. The developed countries must be more willing to share their know-how
408 Ibid., 113-15. 409 Gary M. Kroll and Richard H. Robbins, ed., World in Motion: The Globalization and the Environment Reader (Lanham/New York/Toronto/Plymouth, UK: Rowman & Littlefield Publishers, Inc.2009), 19. 410 Ibid., 20-23. 139 and expertise with developing countries, especially about lifesaving medicines. They have to be more committed to reform the international financial and legal institutions.411 On the other
hand, the developing countries must also assume greater responsibility for their well-being by
managing their budgets within their means, tackling corruption, improving infrastructure, overcoming gender-based barriers, and investing to provide better health and education
services to the poor. They must also work to develop effective, strong, honest, accountable, and transparent bureaucracies and judiciaries.412 Besides, reform of globalization also
requires committed NGOs and civil society organizations. The NGOs, at the domestic and
international level, can play an important role in monitoring firms’ actual practices as the
NGOs are in touch with reality on the ground and committed to social issues.413 They also
make the major contribution of raising public awareness, documenting the impacts of
globalization on poor people and on the environment, mobilizing grassroots people to resist
unjust corporate practices, and mobilizing public opinion to ensure democratic
accountability.414
2. Comprehensive Vision of Development
The meaning of economic development changes according to social status, economic
position, geographical location, and gender. In our current globalized world the dominant
vision of development is one-dimensional: the growth of income. The ultimate goal of
development is aimed at sustained growth of GDP. However, many poor people regard
development as much wider and multidimensional. For them development is the
enhancement of their quality of life. It involves opportunities for adequate livelihood, decent
wages, proper education and health facilities, greater equity, strong organizations, greater
411 Stiglitz, Making Globalization Work, 285-86. 412 Oxfam, Rigged Rules and Double Standards, 6, 17-18, 121. Also see Mestrum, “The World Social Forum: A Democratic Alternative,” 192. Stiglitz, Globalization and Its Discontents, 251. 413 Bhagwati, In Defense of Globalization, 223. 414 World Commission, A Fair Globalization, 125. participation in decision-making processes, better basic infrastructure, and free and fair democratic government. Development for poor people involves material, social, physical, psychological, and political dimensions.415
Amartya Sen and Joseph Stiglitz, among others, have been propagating a broader and
a more comprehensive understanding of development. They are trying to recapture the
multidimensional meaning of development, which classical economists such as Adam Smith
and John Stuart Mill advocated, by demonstrating and expounding the idea that growth of
income is only one of the means, along with several others, to promote the more basic end of
the human person.416 Sen and Stiglitz speak of a more inclusive nature of development –
development of well-being and development of human capabilities. Creating proper
opportunities and structures to expand human capabilities and capacities to live a life with
dignity and basic human rights is considered as an end of development.
2.1. New Standard of Measurement
The gross domestic product (GDP) per capita is the dominant and most widely-used
standard of measurement to evaluate the economic success of a country. It measures the
progress of a society on the basis of one standard: the market value of the aggregate of all
economic production. It assumes that higher GDP growth of a country is correlated with or
even identical to superior well-being of its entire people. However, the GDP measurement
has several limitations and drawbacks. The most obvious drawback is that it excludes various
nonmonetary activities that are important for the well-being of people and society. It also
fails to account for the actual costs of some economic activities on society and on
environment.417 Moreover, the relation between well-being of people and income depends on
a number of personal contingent and social circumstances. Sen identifies at least five of them:
415 Narayan, Voices of the Poor: Crying Out for Change, 264-66. 416 Dreze, India: Development and Participation, 34-35. 417 Cavanagh, Alternatives to Economic Globalization, 198-99. 141 personal heterogeneities, environmental diversities, variations in social climate, differences in relational perspectives, and distribution within the family. For these and many other reasons,
GDP is considered to be an inadequate indicator to measure the well-being and quality of life.418
The inadequacy of the GDP to evaluate quality of life and the adverse effects of
globalization on individual and community life-style, on environment, and on social values
have stimulated and induced economists and philosophers to suggest other metrics that can
assess well-being of human life. Quality of life metrics is one of them. It shifts the emphasis
from measuring economic production to measuring people’s well-being. Though
measurement of people’s well-being or quality of life is much more inclusive and broader
than the GDP measurement model, it does not completely dismiss or replace the GDP
approach, but rather complements it. It recognizes that we need multiple metrics to capture
adequately the quality of human life that is so complex and multidimensional.419
Quality of life is a multidimensional concept as it encompasses a different range of
factors that influence people’s way of living, going beyond material well-being. It includes
material living standards -- household income, wealth, consumption, and distribution of
income, and non-market activities -- education, health, social connections, political voice, personal activities, environmental conditions, personal and economic security, and capabilities and freedoms to pursue and choose a lifestyle that one values and has reason to value. 420 It includes both subjective and objective dimensions of well-being. Measuring the
subjective and objective well-being requires types of data that is not captured by market
transactions. The subjective measure of quality of life is based on subjective data on people’s
cognitive evaluation of their life as a whole, and positive and negative actual feelings
(affects). The subjective measures provide “information about the determinants of quality of
418 Sen, Development as Freedom, 70-71. 419 Stiglitz, Mismeasuring our Lives, 10-11. 420 Ibid., 15-20, 87-88. life at the level of each person.”421 Objective measures of well-being regard expansion of
people’s capabilities and opportunities that emerge as an important factor in people’s well-
being. Improving education, health, political participation, social and environmental conditions, and personal and economic security are important in shaping the quality of people’s lives. The quality of life measurement demands that inequalities in the quality of life of individuals should be assessed in a comprehensive way by taking into account both the distribution of economic resources and non-monetary dimensions of life. It highlights that it is important to look at differences in the quality of life across peoples, socio-economic groups and generations in measuring inequalities in individual’s quality of life.422
2.2. Joseph Stiglitz’s Vision of Development
Joseph Stiglitz emphasizes a more comprehensive approach to development in place
of the Washington Consensus model of development. The Washington Consensus model of
development identifies development primarily with economics, increasing the capital stock
by privatization, trade and capital market liberalization, and minimizing the role of
government. One of the main problems with this approach is that it confuses means with ends
and cause with effect. It takes privatization and trade liberalization as ends in themselves,
when they are only means to transform the lives of people with high living standards, with
less poverty, better health, and improved education.423
Stiglitz defines the term development as “a transformation of society, a movement
from traditional relations, traditional ways of thinking, traditional ways of dealing with health
421 Ibid., 66. 422 Ibid., 64-68, 92-94. 423 Joseph E. Stiglitz, “Towards a New Paradigm for Development: Strategies, Policies, and Processes,” his Prebisch Lecture at UNCTAD, Geneva October 19, 1998, 3-5. http://siteresources.worldbank.org/NEWS/ Resources/prebisch98.pdf; http://www2.gsb.columbia.edu/faculty/jstiglitz/download/1998 2 Towards_a_New _Paradigm for_Development.pdf (accessed December 14, 2010). Also see Joseph Stiglitz, “Towards a New Paradigm of Development,” in Making Globalization Good: The Moral Challenges of Global Capitalism, ed. John H. Dunning (New York: Oxford University Press, 2003). 143 and education, traditional methods of production, to more ‘modern’ ways.”424 Based on this
definition he argues that there is need for a new paradigm of development to replace capitalist
and socialist modes of development. Both these models have limited development to
increasing the capital stock and improving the allocation of resources. They differ in how
best to improve resource allocation, and what role government should play. The problem with
these development strategies is that they “saw development as a technical problem requiring technical solutions— better planning algorithms, better trade and pricing policies, better macroeconomic frameworks. They did not reach deep down into society, nor did they believe such a participatory approach was necessary.”425
Stiglitz argues that a new development strategy must see development as “a process
that involves every aspect of society, engaging the efforts of everyone: markets,
governments, NGOs, cooperatives, not-for-profit institutions.”426 Hence, he stresses the
equal importance of both markets and government in promoting development and protecting
the poor. A comprehensive strategy of development acknowledges the necessity of a more
active part of government in creating proper infrastructure, a proper climate that allows
business to thrive, and in promoting employment, social justice, and protection of the environment. The success stories of East Asian countries are good examples to support the claim that an active role for government is essential to achieve economic growth with social justice and equality. His new paradigm of development also highlights the necessity of active participation of the community in planning, designing, and executing development projects.427
424 Stiglitz, “Towards a New Paradigm for Development,” 3. 425 Ibid., 7. 426 Stiglitz, Making Globalization Work, 26. 427 Ibid., 27, 48-53. 2.2.1. Main Components of Development
Stiglitz argues that true development must have a vision of transforming society and
the lives of people. This vision should include some essential elements, such as increasing
income, improving health and literacy standards, reduction of poverty, strengthening of the
environment, transformation of institutions, and creation of new social capital and
capacities.428 To achieve such a comprehensive vision of development the development model should include the following important components: market, the state (the public sector), the community, and individuals.
2.2.1.1. Market and Private Sector
Strengthening markets is an important element for successful development of any
country. Markets help to allocate resources and to ensure that all resources are mobilized,
optimally employed and well developed. The strategy of development should aim at creating
a strong, competitive, stable and efficient private sector. Markets will contribute to economic
growth when there is perfect information, perfect competition, and perfect a risk market.429
The private sector should be strengthened by providing some essential infrastructures. Some of them are: 1. a legal infrastructure, which includes competition laws, bankruptcy laws, and commercial laws, 2. a regulatory framework, 3. a stable macroeconomic framework, 4. a stable and effective financial system, and 5. an adjustment strategy -- a strategy for the elimination of those distortions in the economy that interfere with the efficient deployment of resources.430
2.2.1.2. The Public Sector
History illustrates that markets thrive well when they are guided by competent
nonmarket institutions. The success stories of East Asia in achieving economic growth and
428 Ibid., 46. 429 Stiglitz, “Towards a New Paradigm for Development,” 48. 430 Ibid., 24-25. 145 stability, where governments played an important role of managing trade and promoting growth, and the contributions the governments had made in developed countries when they were industrializing -- in ensuring social justice or mitigating market failures, providing institutional infrastructure, education, regulation of the financial sector, and promotion of technology -- prove the point that government has a large role to play in the process of development.431 In developing a comprehensive developmental plan for a country, the major
concern should involve balancing the role of the government and markets so that they both
complement each other, acting as partners in the developmental efforts. In the present
context, China and India provide good examples for the importance of maintaining a sound
balance between government and markets in achieving economic prosperity. Both these
countries, while liberalizing their markets, did not follow the orthodox policies favoring
completely free trade. They opened their economies only gradually, maintaining at the same
time a certain amount of government control.432
The list of areas where governmental intervention is necessary is large. However, almost everyone agrees that government should intervene to provide basic education, basic health services, infrastructure, legal frameworks, and social safety nets in regulating competition, banks, and environmental impacts.433 In developing countries, strengthening
economic capabilities of rural people by investing to improve infrastructure like markets,
transport networks, electricity and water management, substantial investment in education and health are regarded as some of the important functions of government.434
2.2.1.3. Individuals and Community
Development should primarily be considered as a process of transforming the lives of
people and the community. If a large section of a country’s people are unable to live up to
431 Stiglitz, Globalization and Its Discontents, 218. 432 Stiglitz, Fair Trade for All, 37-38. 433 Stiglitz, Making Globalization Work, 49. 434 World Commission, A Fair Globalization, 59. their potential as a result of lack of proper education or poor health and undernourishment,
then that country cannot experience real development. Proper policies to improve education
standards and other human capacities of all people should be seen as enhancing quality of human lives and not merely as means to promote greater economic growth.435
Another key ingredient for a successful development strategy is ownership and participation by the community. An effective change cannot be imposed from the outside, because all social change relies heavily upon changing hearts and minds, basic attitudes, and values of people. These cannot be forced from outside. The process that leads to the transformation of society must be marked by broad participation. It necessarily requires greater participation of those groups in civil society whose voices are often excluded in the
process of development. This will, in most probability, elicit greater commitment, ownership,
and long-term involvement of the community to ensure that a project succeeds and is sustained. Moreover, the exercise of participation, in the process of developing a project,
itself becomes a transformation activity.436 Outside agents can help a community by providing evidence, both theoretical and empirical, that a particular strategy is better than others.437 The success story of Grameen micro-credit bank in rural Bangladesh and so many
other success stories of rural self-help women groups in developing countries convincingly
prove that a development project enjoys higher success rates when the local communities are
actively involved in choosing, planning, and designing projects and programs.438
Successful development also requires proper resources, knowledge, and institutions.
Resources are an important component in development. A comprehensive development
strategy must outline plans for developing physical, capital and human capabilities, preserving natural resources, and encouraging savings and investment. It also needs to outline
435 Stiglitz, “Towards a New Paradigm for Development,” 16. 436 Ibid., 21. 437 Stiglitz, “Towards a New Paradigm of Development,” in Making Globalization Good, 89. 438 Stiglitz, Making Globalization Work, 53. 147 a strategy for knowledge management. Knowledge and capital in fact complement each other.
Investments in human capital, in research institutions, and in technologies are essential to achieve all people’s well-being. Development cannot be assured if there are no proper institutions and relations that mediate transactions and resolve disputes. Each country must take responsibility to develop good private and public institutions that make use of the available resources well and take full advantage of the new opportunities.439
Stiglitz’s vision of comprehensive development involves an ongoing process. Its
implementation requires the setting up of priorities, encouraging partnership between
developed and developing countries, and taking into account the global and regional
environment. This broader perspective on development should affect not only strategies and
policies, but also the processes of development itself.440
2.3. Amartya Sen’s Capability Development Approach
Amartya Sen proposes a fundamental shift in the standard of evaluating human
development and assessing social justice. He proposes, in the place of widely used income-
based or utility-based approach, a freedom-centered approach of development. He argues that
development should be judged by the expansion of substantive human freedoms.
Development should aim at the expansion of the real freedoms that people enjoy and the
removal of major sources of unfreedom. His freedom-centered approach concentrates on
what kind of life a person has actually managed to achieve (functionings) and the set of real
opportunities that a person enjoys (capabilities) to choose between different styles and ways
of living. The central point of a freedom-centered approach is to focus on the direct
assessment of human freedom, which is the end of development, rather than on the means
that are used to achieve human freedom.441 Sen argues that the success of development
439 Ibid., 55; Stiglitz, “Towards a New Paradigm for Development,” 27-30. 440 Ibid., 30-31. 441 Sen, The Idea of Justice, 3, 231, 253. projects and programs cannot be judged merely in terms of their effects on incomes and outputs, but, at a basic level, by their contribution to the quality of life that people are actually living.442
The capability of a person refers to a kind of freedom that a person has “to achieve alternative functioning combinations.”443 Functionings “represent parts of the state of a person – in particular the various things that he or she manages to do or be in leading a life.”444 Freedom-centered development comprehends the human person as a being with a set of capabilities and talents which can be actualized through a normal process of development.
These capabilities, however, can be blocked by numerous obstacles. Creating proper opportunities and structures to realize these capabilities should be the ultimate goal of development. Sen explains that economic well-being is best defined when an individual’s capabilities to become fully functioning are realized.445
Sen’s capability approach accords a central place to a person’s actual ability to choose between different styles and ways of lives that she/he values and has reason to value. It focuses on the different features and concerns of human life, the various combinations of functionings that a person may value and not merely on some detached objects of convenience, such as income or commodities that a person may possess. He uses the term freedom in a broader sense. It involves both the actual achievement of opportunity that a person values and also the process of choice and actions, that is, whether or not he/she has freedom to choose that opportunity. He thus argues that the freedoms and the actual opportunities that a person enjoys are important, since the well-being of a person is closely linked to both of these. He also stresses that it is important to pay attention to both aspects of
442 Dreze, India: Development and Participation, 37. 443 Sen, Development as Freedom, 74-76. 444 Amartya Sen, “Capability and Well-Being,” in The Quality of Life, ed. Martha Nussbaum and Amartya Sen (New York: Oxford University Press, 1993), 31. 445 Daniel Little, The Paradox of Wealth and Poverty: Mapping the Ethical Dilemmas of Global Development (Colorado/Oxford: Westview Press, 2003), 17-18. 149 freedom: the process and the opportunity.446
2.3.1. Multifaceted Approach to Development
Sen proposes an integrated and multifaceted approach to human development.
Development is not only overcoming income deprivation but also other social and political
deprivations of the people. The accumulation of wealth, growth of GDP, modernization,
industrialization, and technological progress are important. However, these must be seen only as important means to expand human freedoms and not as ends in themselves. These need to be complemented by other freedoms by improving social and political opportunities of people through education and health care, and protection of political and civil rights. Economic freedom, social freedom, and political freedom are interconnected with one another and are
“constituent components” of development.447
The freedom-centered approach to development is not only inclusive but also properly labeled a people-centered approach. It is much concerned with the social opportunities that
people enjoy to expand their quality of life. It considers that expanding real freedoms of
people, which are diverse, should be valued both as “(1) the primary end and (2) the principle
means of development.”448 Freedom as an end of development demands, besides income, the
expansion of political liberty, political participation, proper education and health facilities,
and security and peace as the constituent elements of development. Therefore, elimination of
all obstacles to human freedoms, such as poverty, lack of economic opportunities, tyranny,
social deprivation, neglect of public facilities, and state restrictions on the freedom of
individuals to participate in the social-political-economic life of society must be overcome.449
Achieving these freedoms should be seen primarily as expansion of ‘human resources’ to achieve better economic gains but as valuable for their own sake. It is important to stress their
446 Sen, The Idea of Justice, 233-36. Also see Sen, Development as Freedom, 17. 447 Sen, Development as Freedom, 3-4. 448 Ibid., 36. 449 Ibid., 36, 40, 53. intrinsic importance in today’s overly materialistic world.450
However, the emphasis on the enhancement of freedoms as ends does not mean denial
of their importance as instruments of economic development and social progress. The
effectiveness of freedoms as instruments lies in the fact that there are different kinds of
freedoms – political freedoms, economic facilities, social opportunities, protective security,
and transparency guarantees – and they are interrelated and interlinked with each other. These
various freedoms not only enhance human capabilities but also supplement and reinforce one
another.451 Therefore, these interlinkages spotlight the need for policies and initiatives to develop and support a plurality of institutions, such as democratic institutions, educational and health provisions, communication facilities, legal mechanisms, and so on, along with market liberalization. Market liberalization must be seen as only one part of a broader picture.452
The freedom-centered development approach acknowledges the role of markets in the
development of human lives. It is not that market mechanisms per se are the key problem, but
rather lack of adequate social opportunities for all people to participate in the benefits of markets and to enrich their lives. Market mechanisms have achieved great success in those countries where they have been supplemented by the creation of basic social opportunities for all people. For example, in East Asia the development and expansion of social opportunities to all people has served well to facilitate higher economic development. They have done remarkably well in spreading economic opportunities to all their people through adequately developed social freedoms, such as higher levels of literacy, basic education, sound general health care, land reforms, and so on. On the contrary, in India, though it has achieved rapid
GDP growth after market liberalization beginning in 1991, economic growth has not transformed the living conditions of the majority of the poor and the marginalized. One of the
450 Dreze, India: Development and Participation, 7. 451 Sen, Development as Freedom, 37. 452 Ibid., 142-43. Also see Dreze, India: Development and Participation, 20-21. 151 main reasons for the failure to translate rapid economic growth into improving the quality of its people is India’s failure to prepare all her people to participate in the growth. India continues to face overwhelming illiteracy, poor health facilities, and social inequalities.453
One of the positive sides of a freedom-centered approach is that it helps us to
understand the problem of poverty and inequality on a deeper level as it brings out the
interconnectedness of different freedoms. The problem of inequality and poverty becomes
magnified when attention is paid to the distribution of substantive freedoms and
opportunities. It reveals that the relationship between income and capability is strongly
affected by various conditions, such as age, gender, social roles, location, and other
variations. It also shows an instrumental relation between income deprivation and capability
adversity. For example, a disabled person with low income would find it hard not only to earn
income but also to convert his or her income into capability or into well-being. Hence, the
interrelation between income-earning ability and income-using ability widens the problem of
inequality and poverty.454
The aim of a freedom-centered approach to development is not to develop a unique
and universal criterion of development on the basis of which various countries can design
their development plans. Rather, the focus is to provide an informational basis for evaluation
of aggregative and distributive concerns, based on individual opportunities, in assessing
societies and social institutions. This informational basis plays an important role in pursuing
social justice, as theories of social justice, to a great extent, are characterized by their
informational base. For example, the classical theory of utilitarianism tries to make use of the
information of different people’s respective happiness or pleasures.455 Sen’s theory of
development underlines the point that policies of development should pay attention to much
wider information than income. It does not propose that equality of capability should be the
453 Ibid., 22, 309. 454 Sen, Development as Freedom, 118-19. 455 Ibid., 57. central feature of social justice. Sen makes it clear that, though capability plays an important
role in judging people’s substantive opportunities, it “cannot pay adequate attention to
fairness and equity involved in procedures that have relevance to the idea of justice.”456
One of the contributions of understanding development as expansion of human
capabilities is to evaluate different policies and programs on the basis of their impact on the
enhancement of people’s opportunities and capabilities and not merely growth of GDP. It
also helps to focus on the concrete reality of people and not just on conceptual theories of
social justice. It provides a perspective to examine and assess what kinds of institutions exist
and how they function. It also underscores the need to view different institutions together.
Sen’s approach helps to clarify the role of market in development neither uncritically
exaggerating its importance nor blindly dismissing it as evil. It reasserts the idea, which
others have been promoting, that markets need complementary interventions. It argues that
state intervention, the market mechanism, and social cooperation are essential components in
achieving people’s well-being. All three are highly complementary institutions.457 In a
globalizing world, where market mechanisms have become the dominant factor in evaluating
a country’s success, the capability approach is a useful supplementary approach to make
market opportunities inclusive and fairer to all people.
Conclusion
People at the grassroots level, NGOs both at local and national levels, Civil Society organizations (CSOs), economists, parliamentarians, labor unions, academicians, social activists, and so many other committed individuals around the globe are proposing new alternatives to neo-liberal globalization. Many of them are actively involved in the process of creating a better world for all people. Voices from different walks of life and sections of society are demanding that a human face be added to the current process of globalization.
456 Sen, The Idea of Justice, 295. 457 Dreze, India: Development and Participation, 56-57. 153
Though some of these voices differ in their perspectives and priorities regarding alternatives, they are trying to lay down some key principles and values that should become bedrock for any alternatives to neo-liberal globalization. People desire and aspire for a globalization with social values that respects the human dignity and human rights of all people, fairness and social justice, solidarity and subsidiarity, and values eco-diversity and viability of the planet’s ecosystem. This chapter, on the alternatives to neo-liberal globalization, has highlighted that achieving a fair and inclusive globalization, a globalization with human values and social dimension, requires deep commitment and the involvement of diverse stakeholders. It needs participatory, democratic and transparent national and international governments; a strong, inter-connected, and vibrant civil society; and international and grassroots movements; socially conscious entrepreneurs, mass media, and reformed global institutions. It demands policies, at international, national and local levels, that integrate economic and social goals. It demands broad-based dialogue and interaction between government and non-state actors. A people-oriented globalization should address, in an integrated way, the issues of education, health, human rights, environmental sustainability, security, and equality along with aggregate economic prosperity as it is conventionally measured.458
The alternatives to globalization recognize the necessity of the market economy for
development and growth. Most of the critics of the current version of globalization are rather
discontent with portraying market liberalization as the end of human development or as the
surest single remedy for all human problems in all countries. The challenges that the vision of
creating a globalization with a human face presents require global involvement and greater
commitment. The task ahead of us is long and arduous. It calls for change of our mind-sets,
attitudes, values and structures. It demands greater responsibility at all levels to promote a
free, fair, equitable, and sustainable globalization.
458 World Commission, A Fair Globalization, 130, 5. Chapter Three
CATHOLIC SOCIAL TEACHING: A CRITICAL RESPONSE TO NEOLIBERAL GLOBALIZATION
Introduction
The Vatican Council II document Gaudium et Spes calls for “scrutinizing the signs of
the times and interpreting them in the light of the gospel.”459 The ever-growing global
poverty, the gross disparity between rich and poor within countries and between developed
and developing countries, and mounting global injustice and marginalization are some of the
signs of our times. These problems challenge the Church’s moral stance on the human person
and society and call for a response. The Church, based on her moral principles, evaluates and
critiques any economic progress and policies on the basis of how they protect human dignity,
serve the common good, and how the most vulnerable people in society are faring.460 Hence,
the guiding criterion that the Church uses to evaluate the current globalization is, as emphasized by John Paul II in his encyclical Redemptor Hominis, the totality of the human person’s existence, which includes family, society, and the whole world. The pope identified,
“the primary route that the Church must travel in fulfilling her mission: the human person is the primary and fundamental way for the Church, the way traced out by Christ himself…”461
After analyzing the current epoch of globalization -- its guiding ideology, structures
and institutions, its effects on the world’s poorest people and developing nations and discussing some alternatives suggested by civil society movements -- in this chapter I argue that addressing the problems of poverty and inequality as moral issues and strongly propagating an integral human development, which is based on respect for the dignity of all
459 Gaudium et Spes, no. 4, in Catholic Social Thought: The Documentary Heritage, ed. David J. O’Brien and Thomas A. Shannon (Maryknoll, New York: Orbis Books, 1992). (references to all texts of Catholic Social Encyclicals are taken from this book). 460 Chuck Collins and Mary Wright, The Moral Measure of the Economy (Maryknoll, New York: Orbis Books, 2007), 23-24. 461 John Paul II, Redemptor Hominis, no. 14. http://www.vatican.va/holy father/john_paul_ii/encyclicals/ documents/ hf_jp-ii_enc_04031979 redemptor-hominis_it.html (accessed May 15, 2011). 155 people, solidarity with poor, and a commitment to the common good, must be the central concern of the Church’s mission. In the first section of this chapter I will develop theological- moral reasons why the Church must take up the issue of globalization. In the second part I will propose a possible response of the Church to the process of humanizing the current globalization, which is based on her moral traditions.
As analyzed in chapters one and two, with the help of social analysis, the current globalization is inter-linked with various structures and dimensions of society. A deeper analysis of the reality demonstrates that the task of humanizing the current globalization requires various transformations at various levels: personal, ideological, institutional, and structural. The standpoint of this chapter is to argue that, to humanize the current globalization, the first focus should be on identifying its evil structures and stressing social conversion, besides individual conversion. This position is in accord with Gaudium et Spes, which states “numerous reforms are needed at the socio-economic level, along with universal changes in ideas and attitudes.”462 It also coheres with the social vision of Pope Benedict
XVI who, in his encyclical Caritas in Veritate, affirms that the Church's social mission for the common good requires dealing with "that complex of institutions that give structure to the life of society, juridically, civilly, politically and socially, making it the pòlis, or 'city'."463
The Church’s commitment to structural change and social conversion demands that a
society be organized according to gospel values, such as a preferential love for the most
vulnerable, solidarity, concern for the common good, social justice, and respect for the human dignity of all people. It surely remains true, as Pope Paul VI acknowledges, that the
Church’s main function is not to present ideal modes of society, as her capacity is restricted when it comes to suggesting certain models of society. One sure path for the Church is to play a role of helping human sciences by making critical judgments and offering a
462 Gaudium et Spes, no. 63. 463 Benedict XVI, Caritas in Veritate, no. 7 (San Francisco: Ignatius Press, 2009), 15.. comprehensive perspective upon humanity by “showing the relative character of the behavior
and values presented by such and such a society as definitive and inherent in the very nature
of man.”464 Nevertheless, Catholic social teaching, from its rich treasures of core social
principles: holistic understanding of “integral development”, the common good, solidarity
with the poor, respect for human dignity, and commitment to justice and charity, can offer an
ethical vision and theological hope for the process of humanizing the current wave of
globalization; a globalization that is more just, inclusive, responsible, people-oriented and
fair.465 This is a vision of development that aims not only to raise the material living
standards of all people to the level enjoyed by the richest countries, “but rather of building up
a more decent life through united labor, of concretely enhancing every individual’s dignity
and creativity, as well as his capacity to respond to his personal vocation, and thus to God’s
call.”466
I also argue that the Church, based on her faith in the redeeming power of Jesus Christ and his Kingdom mission, offers a solid hope. It is a hope that proclaims that God’s promise of creating a new heaven and a new earth is already at work in human history with the
Incarnation and resurrection of Jesus Christ. Christian faith reveals that God is continually
laboring in the world to bring about its complete fulfillment. With the resurrection of Jesus
“the end-time has arrived, when the reign of God is to be accomplished, starting with Jesus,
in this world.”467 Therefore, this hope is not mere wishful thinking about the unknown future; it does look forward to a promised future, but one which reflects what God has already accomplished in Christ Jesus and what God will do at the end of all times. This hope is
464 Paul VI, Octogesima Adveniens, no. 40. 465 Daniel G. Groody, Globalization, Spirituality, and Justice: Navigating the Path to Peace (Maryknoll, New York: Orbis Books, 2008), 119. 466 John Paul II, Centesimus Annus, no.29. 467 Norbert F. Lohfink, Option for the Poor: The Basic Principle of Liberation Theology in the Light of the Poor, trans. Linda M. Maloney (N. Richland Hills, TX: BIBAL Press, 1987), 5. 157 principally about the present experience of God’s providence and care.468 It can provide a great motivation and inspiration to those who are actively involved in humanizing the current globalization. It can also help the committed people to conduct themselves as children of the promise, who make best use of all present opportunities and wait patiently for the fullness of glory that is to come.469 Christian hope is therefore about empowering people to face
frustrations and failures that their work for human freedom and justice involves. It is a key
motivator for the Church’s mission in the complex reality of globalization where adequate
responses to poverty and inequality are not easily forthcoming.470
In chapter one, while analyzing the reality of globalization from the perspective of the economically marginalized and powerless, I highlighted some of its problems: accelerating and suffocating poverty, growing disparity of income and wealth between rich and poor, and the exclusion of poor, unskilled workers and small-scale farmers from participation in the benefits of globalization. The promise of the neoliberal capitalists that
high levels of growth in wealth will ‘trickle down’ after a period of painful adjustment to new global realities has not come to pass for a vast majority of poor people. The ideology of neoliberalism appears to be a strategy of the powerful and rich to accelerate their wealth and profits. I also pointed out some of its guiding values: instrumentalization and commodification of human life, extreme individualism, consumerism, materialism and immediate gratification. These are some of the signs of our times to which the Church needs to respond, based on her heritage of social concern and ethical principles.
Over the years, as I discussed in chapter two, a number of civil society movements,
NGOs, grassroots organizations and transnational associations have been actively involved in challenging and resisting the destructive neo-liberal globalization. These organizations and
468 Neil J. Ormerod and Shane Clifton, Globalization and the Mission of the Church: Ecclesiological Investigations (New York: T&T Clark, 2009), 190. 469 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 578-79 (Dublin: Veritas Publications, 2005), 271. 470 Ormerod, Globalization and the Mission of the Church, 190-91. movements have proposed alternative development models to create a more just and equal society for people. The institutional Church and many individual Catholics are also actively involved in this process contributing to, humanizing the current globalization at various levels and through a variety of activities.
One can identify some common elements in the analysis and remedies suggested for the current globalization both by civil society movements471 and the Church. For example, both analyze the negative outcomes of the globalization process from the perspective of the poor, workers, farmers, and marginalized groups of our society. They argue that serving the basic needs of the poor, protection of the human rights of all people, and equitable distribution of wealth and power should take priority over the desires of a few rich and powerful people to accumulate even greater wealth and power. They also analyze the institutionalized structural causes of poverty and injustice in the world and stress that, in order to humanize it, there should be transformation and change of evil structures. Both condemn the concentration of economic and political power in the hands of a few powerful and elite corporations and the exclusion of the majority of people from the benefits of the economy and from the decision-making process regarding the direction of the economy. They also warn about the adverse effects that the values of neo-liberalism – extreme individualistic view of society, priority for profits and efficiency over the well-being and basic needs of people, consumerism and accumulation of wealth as the sole criterion for human happiness, and commodification of everything on this earth – exert on families and on humanity at large.
Moreover, there are also several converging points between the Church’s holistic and
471 The concept civil society is fluid and unstable. There are dilemmas over its definition, its relationship to the state, and its accountability. There are conflicting and divided theories about what constitutes civil society, its terms of membership, its beginning and end, and its activities. Christine Bell and Catherine O’Rourke, “The People’s Peace? Peace Agreements, Civil Society, and Participatory Democracy,” International Political Science Review 28 (2007): 294-95. In standard usage civil society is referred to “the array of voluntary associations that stand between the state and the individual or family.” R. Scott Appleby, “Global Civil Society and the Catholic Social Tradition,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 131. 159 integral vision development and that of Joseph Stiglitz, Amartya Sen and other grassroots groups, which I discuss in chapter two. Both recommend a more people-oriented and all- dimensional model of development, which includes an authentic human flourishing of all people.472
However, there are differences between the Church’s vision of proper economic order
and that of secular civil society movements. The main difference pertains to their ultimate
end. Catholic social thought teaches that the ultimate end of human life is union with God, while for secular theories it is some version of intermediate ends. The Catholic vision and values about economic and social life must be considered along with its anthropology and the
notion of the common good.473 Moreover, the Church also brings in a more developed ethical
framework that can help to refine, correct and develop the analysis and critique of civil
movements against the current globalization.474 Catholic social thought also provides the
discernment as a method to ‘scrutinize the signs of the time.’ Her discernment is not only
ethical but also theological. It presupposes both social analysis and faith. A faith perspective
helps to avoid the risk of social analysis being manipulated by ideological biases. Therefore
the social ethics of the Church is “based on discernment and reading the gospels as source of
moral imagination capable of moving people beyond status quo, as status quo is determined
by narrow frameworks of interpretation.”475
At the same time, there are many critics who are skeptical about the Church’s
approach to social transformation in the civil society. For example, Catholic social teaching is
472John Sniegocki, Catholic Social Teaching and Economic Globalization: The Quest for Alternatives (Milwaukee ,Wisc: Marquette University Press, 2009), 242-43. 473 Charles M.A. Clark, “Economic Life in Catholic Social Thought and Economic Theory: Reflections on Compendium Chapter 7,” in Catholic Social Thought: American Reflections on the Compendium, ed. D. Paul Sullins and Anthony J. Blasi (Lanham/Boulder/New York/Toronto/Plymouth, UK: Rowman & Littlefield Publishers, 2009), 78. 474 James E. Hug, “Economic Justice and Globalization,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 62. 475 Johan Verstraeten, “Catholic Social Thinking as Living Tradition that Gives Meaning to Globalization as a Process of Humanization,” in Ibid., 40, 28. criticized for its lack of systematic, well-developed, and critical analysis of capitalism and its
inner structural dynamics. It is also criticized for its top-down approach which includes an
over reliance on appeals for the top elite class to bring about a social transformation rather
than from the grassroots organizations.476 Though the social teaching encourages workers’
organization in demanding their rights, the overall thrust is that the Church should concentrate on the moral formation of political and economic elites of society, who in turn will implement just and people-oriented policies. Critics argue that this approach is unrealistic and non-achievable, because it is unlikely that the beneficiaries of the current system will renounce any of their privileges in order to sincerely work to change it.477
Though there are differences in the foundational principles and approaches to social
change between the Church and secular civil society groups, thinkers and activists
recommend that in order to reform the current globalization there has to be a dialogue
between faith communities and national and international civil organizations, NGOs, and
people’s movements that are actively engaged in humanizing the current globalization. Pope
John Paul II was aware of this need. His encyclical Sollicitudo rei Socialis emphasized the
necessity of collaboration and solidarity of all people by overcoming political rivalries and
renouncing all desire to manipulate the international organizations.478 Gaudium et Spes also
recommends a dialogue between Christian faith and other religious and cultural traditions in
pursuit of greater truth about what is good for people. The Church’s role in the modern world
should involve both being faithful to the Gospels and engaging herself in dialogue with those
who hold various faith beliefs and ideologies. David Hollenbach argues that the Christian
humanism envisioned in the Second Vatican Council “calls the Church to be a partner with
the many other forces that seek to create a more human, and therefore more Christian, world.
476 Sniegocki, Catholic Social Teaching and Economic Globalization, 314. 477 John Sniegocki, “Implementing Catholic Social Teaching,” in Faith in Public Life, ed. William J. Collinge (Maryknoll, New York: Orbis Books, 2008), 40-41. 478 John Paul II, Sollicitudo rei Socialis, no. 43. 161
Collaboration rather than control should be the Church’s mode of operation in society.”479
Moreover, there is a growing awareness that the process of humanizing the current globalization demands attention not only to the transformation of economic structures, but also to non-economic and non-market values. A growing number of people are recognizing that any version of globalization developed in an ethical vacuum will not succeed in creating a fair and just global human community. It is necessary that globalization with a human face should be founded on ethical and moral values that respect the human dignity and human rights of all people. Besides, it should accept and respect cultural, economic, and socio- political diversities, promote human solidarity, contribute to the common good, and show concern for ecology.480
I argue that Christian love and anthropology, which demands love for neighbor,
especially for those who are socially marginalized, and teaches that full realization of human
life occurs only in interpersonal communion and solidarity, can contribute positively to
secular civil society organizations. It can challenge market fundamentalism and individualism
and guide those seeking to build a more humane and just global society.481 The principles of
Catholic social teaching offer "an invaluable set of ethical coordinates that can help steer the
ship of globalization in the right direction.”482
1. The Church and Globalization
The Roman Catholic Church is attempting to contribute to the process of humanizing
the current globalization through a wide variety of projects and programs. The Jubilee 2000
campaign for debt relief for poor countries was a major step in that direction. Christians are
479 David Hollenbach, “Commentary on Gaudium et Spes (Pastoral Constitution on the Church in the Modern World),” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes (Washington, D.C.: Georgetown University Press, 2004), 275. 480 World Commission on the Social Dimension of Globalization, A Fair Globalization:Creating Opportunities for All (Geneva: International Labor Office, 2004), 7-8. 481 David Hollenbach, The Common Good and Christian Ethics (Cambridge, UK/ New York: Cambridge University Press, 2002), 175-76. 482 Groody, Globalization, Spirituality, and Justice, 118. involved in developing alternative models of economic development that recognize a balanced role of both profits and social values and priorities. The Caritas International483 and the Catholic Campaign for Human Development are just two examples among many.484 In many developing countries the Church (through schools, hospitals, social welfare projects, human rights commissions, research and advocacy organizations, income-generating and rural credit projects, and women’s and small-scale farmers’ empowerment initiatives) is actively engaged with the grassroots. Some attempts are also made by the institutionalized
Church and Catholic associations to conscientize and mobilize people at the grassroots to protest against injustices and marginalization of the poor. Many bishops’ conferences try to lobby for issues like debt relief for poor countries, arms control, land reforms, the fight against AIDS, refugees and migration, female education, health care for the poor, and the struggle against hunger and malnutrition in poor nations. Through a range of NGOs and charities -- Catholic Relief Services, Caritas International, the Pontifical Council for Justice and Peace, and Refugee Services – the Church is involved with humanitarian aid programs and social justice issues.485 However, there are several areas in which the Church needs to be more prophetic and practical in her commitment.
Theologically the primary reason for the Church’s commitment to issues of social justice and charity is her faith in God, who is seen as liberator of the oppressed and defender of the poor. It is also founded on a profound understanding of Christian vocation. The mystery of Trinity reveals that God is constantly active in creating, sustaining, judging, renewing and preparing for the final transformation of creation in Christ.486 God’s plan, as unveiled in the Scriptures through the prophets, is “to call a people together, to transform
483 For information on Caritas Organization see http://www.caritas.org/about/index.html 484 For information on the Catholic Campaign for Human Development see http://usccb.org/cchd/grants/ principles.shtml 485 John A. Coleman, “Making the Connections: Globalization and Catholic Social Thought,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll /New York: Orbis Books, 2005), 21-22. 486 John A. Coleman, An American Strategic Theology (New York/Ramsey: Paulist Press, 1982), 21. 163 them, and through them to transform the whole world.”487 God desires that the followers of
Christ, as a community and as individuals, proclaim the actions of God by following the
example of Jesus Christ. It implies being a sign of love, compassion, justice, and hope to our
broken and unjust world. Hence, Gaudium et Spes aptly expresses this perspective when it
declares, “The joys and the hopes, the griefs and the anxieties of the men of this age,
especially those who are poor or in any way afflicted, those too are the joys and hopes, the
griefs and anxieties of the followers of Christ. Indeed nothing genuinely human fails to raise
an echo in their hearts.”488 This affirms that the Christian faith plays a potentially important
role in public life. It challenges the projects of some to privatize religion by isolating it from
the public domain. It shows that “‘Differentiation’ means distinction, not isolation into
separate, airtight compartments. …Religious influence in public and even political life can
occur, however, even where state and church are institutionally distinct.”489
The Church also believes that her involvement for justice and commitment with and
for the poor should be motivated by gratitude and joy. It should be an outgrowth of a
response to the gift of God, who has liberated the whole of humanity from sin and oppression
out of love and mercy. Hence, the primary reason for an individual Christian’s or the
community’s involvement for economic and social justice is not to please God or to earn
God’s grace by good deeds, but rather it is a loving human response to God’s gratuitous
gift.490
To be effective, Christian love cannot remain merely at a sentimental level without
any content. The love of God in the Scriptures is shown in deeds to concrete people and in
actual historical events. For example, in the Old Testament God responds to the cries of
487 Lohfink, Option for the Poor, 11. 488 Gaudium et Spes, 1. 489 Hollenbach, The Common Good, 118. 490 Kenneth R. Himes, “Commentary on Justitia in Mundo (Justice in the World),” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R Himes, et al. (Washington, D.C.: Georgetown University Press, 2004), 345. enslaved Israelites in Egypt by transforming their unjust and oppressive socio-historical
reality and liberates them from their slavery. So, love in Christian tradition is comprised of
charity, justice and love for the poor. Though love and justice are not identical, there is a
dynamic relationship between these two. They form a complementary and dynamic unity.
Justice draws interpersonal relationships into the realm of love, and love lifts interpersonal
relationships above the strict demands of justice. Love helps us to go “beyond the question
‘What is due to this person?’ to ask ‘What is the highest good for this person?’ …. True
justice transcends itself and blossoms into love.”491 Therefore, though justice does not
include the fullness of love, it is “at least a minimum measure of love’s content.”492
Christianity understands “love as power that heals, corrects and transmutes justice. To do so it must be closely involved in issues and struggles for justice.”493 The problems of poverty,
structural injustice, and marginalization are historical realities and therefore they cannot
escape the attention and commitment of the Church.
Though the Church does not have sufficient power to bring about an immediate
transformation to our global structures and institutions, nevertheless as Second Vatican
Council acknowledges, she has a mission of transforming the world as a leaven. The Council
sees the Church as “the universal sacrament of salvation.”494 Salvation is understood not only
in spiritual terms, but also as integral, which includes spiritual, social and economic
liberation. It was affirmed by the Synod of bishops in their 1971 document Justice in the
World. In the document they declare, “Action on behalf of Justice and participation in the transformation of the world fully appear to us as a constitutive dimension of the preaching of the Gospel, or, in other words, of the Church’s mission for the redemption of the human race
491 Thomas D. Williams, Who is My Neighbor: Personalism and the Foundations of Human Rights (Washington D.C.: The Catholic University of America Press, 2005), 186-87. 492 Himes, “Commentary on Justitia in Mundo,” 345-46. 493 Coleman, An American Strategic Theology, 22. 494 Gaudium et Spes, no. 45. 165 and its liberation from every oppressive situation.”495 Though the use of the term
“constitutive” has become controversial and has generated much debate over the years, it is safe to say that the bishops at their 1971 Synod make it clear that there is an intimate connection between justice and the gospel. Justice is at the heart of the gospel and “the social mission is a particular and necessary element of the overall religious mission. Working for justice is central and indispensable to the Church’s preaching and witnessing to the gospel.”496 Hence Gaudium et Spes states, “Thus, through her individual members and her
whole community, the Church believes she can contribute greatly toward making the family
of man and its history more human.”497
The vocation of Christians demands that disciples should be both “hearers and doers
of the word, discerners of the signs of the times, and accomplishers of what is offered them as
promise.”498 It is precisely this call and the experiences of God in Jesus Christ that inspire
and nourish Christians laboring for justice in the world. Therefore, Caritas in Veritate,
African theology, Latin American liberation theology, and other theologies of liberation
“attest to the inherent and indispensable unity of love of God and love as work for structures
that positively affect the lives, sufferings, hopes, and joys of near and distant neighbors.”499
All Christians have a vocation to live their lives marked by love, compassion and justice.
Works of justice and charity are an integral part of Christian discipleship. One cannot compartmentalize one’s spiritual and secular life as two unrelated, independent and separate spheres of life. Faith is personal, but it is not private. It is related to every aspect of life.500
The above discussion shows that there are solid theological reasons for the Church’s
495 Synod of Bishops, Justice in the World, Introduction, paragraph 6. 496 Himes, “Commentary on Justitia in Mundo,” 341-42. 497 Gaudium et Spes, no. 40. 498 Ignacio Ellacuria, “Utopia and Prophecy in Latin America,” in Mysterium Liberationis: Fundamental Concepts of Liberation Theology, ed. Ignacio Ellacuria and Jon Sobrino (Maryknoll, New York: Orbis Books, 1993), 313. 499 Lisa Sowle Cahill, “Caritas in Veritate: Benedict’s Global Reorientation.” Theological Studies 71 (2010): 319. 500 J. Milburn Thompson, Introducing Catholic Social Thoght (Maryknoll, New York: Orbis Books, 2010), 37- 38. involvement in the process of denouncing the current globalization and collaborating with
civil groups in humanizing it. In the following section, I will develop four main theological
and moral reasons why the Church should more actively involve herself in current global
issues. The four reasons are: 1. The current globalization is a moral issue, 2. her mission as an
agent of God’s Kingdom, 3. her commitment to social justice, and 4. her special love for the
poor and marginalized.
1.1. Globalization: “As a Moral Issue”
The Church’s commitment to the Kingdom of God and her steadfast support of the
sacred and social nature of the human person will never allow her to accept the neoliberal’s
proposition that morality has no function in the market economy. The primary reason for her denouncement of neo-liberal ideology is not economics but her commitment to protect and promote human dignity. The neo-liberal’s market logic is intrinsically dehumanizing and therefore contradictory to Kingdom values. It prevents people from realizing the fullness of their human life.501
John Paul II, in his encyclical Centesimus Annus, said that the Church through her
social teachings formulates “a corpus which enables her to analyze social realities, to make
judgments about them and to indicate directions to be taken for the just resolutions of the
problems involved.”502 It suggests that the Church should take up the pressing social
questions of each day and age and analyze them under the light of the gospel and human
reason. It suggests that Christian faith linked with a proper social analysis503 can guide a
501 Ellacuria, “Utopia and Prophecy in Latin America,” 298. 502 John Paul II, Centesimus Annus, no.5. 503 Joe Holland and Peter Henriot have defined social analysis as a tool to diagnose a social situation. It is “the effort to obtain a more complete picture of a social situation by exploring its historical and structural relationships.” Joe Holland and Peter Henriot, Social Analysis: Linking Faith and Justice (Maryknoll, New York: Orbis Books, 1983), 11. Also see Douglas J Elwood, "Social Analysis, Theological Reflection, and Pastoral Planning," Asia Journal of Theology 1 (1987): 131. The aim of social analysis is to understand the interrelationships between different structures “by systematically studying the institution, breaking up the whole into its components in order to understand its nature, proportion, relation, and function in society.” Thomas Schubeck, Liberation Ethics: Sources, Models, and Norms (Minneapolis: Fortress Press, 1993), 87. 167 community to discern and choose right actions to create a just society. Based on this criterion, the Church analyzes and judges that the current globalization is a moral issue with moral and human consequences. The Church argues that economic models and economic policies are human creations, which are based on a set of values, value judgments, assumptions and priorities. They reflect the particular nature of the human person and society.504 The perspective on neo-liberal globalization is therefore not only about market interactions and economic relationships, but essentially about power, human relationships, human identity, social priorities, and social organizations.505
Neoliberals justify a “survival of the fittest” social arrangement because they hold that the freedom to act in self-interest spontaneously promotes a fair and ethical order where social and economic positions are simply reflections of an individual’s merit, talent, or ambition. The extreme inequality and poverty, generated by market competition, they argue are neutral outcomes, without any ethical burden.506 The Church refutes these claims and those of many liberal economists507 who argue that market operations are “value-free” and that economic decisions are simply “rational” outside the realm of moral concerns. The
Church argues that “the process is not a mysterious force beyond human influence; rather,
504 Rebecca Todd Peters, “Economic Justice Requires More than the Kindness of Strangers,” in Global Neighbors: Christian Faith and Moral Obligation in Today’s Economy, eds. Douglas A. Hicks and Mark Valeri (Grand Rapids, Michigan/Cambridge, U.K.: William B. Eerdmans Publishing Company, 2008), 91. 505 Joerg Rieger, No Rising Tide: Theology, Economics, and the Future (Minneapolis, MN: Fortress Press, 2009), 20. 506 Luigi Esposto, “Toward an Embodied Global Ethic,” in Globalization with a Human Face, Jung Min Choi, John W. Murphy, and Manuel J. Caro (London: Praeger Publishers, 2004), 149. 507 The economic liberals base their claim, market as value-free, on Adam Smith’s ‘invisible hand’ theory of free market. However, it is a claim that is based on a misreading of Adam Smith. This misreading results due to separating his economic theory from his moral framework. It is important to remember that Smith was a moral philosopher and a natural law deist before being an economist. He wrote Theory of Moral Sentiments prior to his well-known book The Wealth of Nations. His economic theory is based on his moral framework, as developed in his book Theory of Moral Sentiments, and therefore should be read alongside his moral framework In this book he illustrates that human behavior is governed by a set of natural law principles and that there is a divine Being who watches over and cares for the universe. According to him compassion is a most important principle that serves as a foundation for human social interaction. It enables people to care and have concern for community. It prevents people from living as isolated individuals only with self-interest. His presentation of individualism and self-interest as motivating factors of a person’s economic life are therefore tempered by his moral principle of compassion. Hence, his economic theory is relational and social. Thus, he presented “a model of human behavior in which people made economic decisions based on self-interest, but they did so within a moral context of obligations that included the family, community, and nation.” Peters, “Economic Justice Requires More than the Kindness of Strangers,” 92-94. globalization is subject to ethical assessment. Both in the ends it seeks and in the methods it employs, globalization cannot be treated as immune from moral guidance and evaluation.”508
The Church is neither totally opposed to market economy nor to globalization per se.
She does recognize the opportunities that markets and globalization create for human
development and prosperity.509 In her social teachings the Church positively defends and
promotes free enterprise and private initiative.510 The Compendium of the Social Doctrine of
the Church argues that ‘free and responsible initiative in the economic sphere can also be
defined as an act that reveals the humanity of men and women as creative and relational
subjects.”511 However, it maintains that private enterprise must be clearly subordinated to the
service of justice and to social and moral goals. For example, John Paul II in his encyclical
Centesimus Annus, while emphasizing a positive approach to business by asserting that
"modern business economy has positive aspects" (CA, 31), underscores the point that "the
goal of business is not solely to make a profit, ….; other human and moral factors must be
considered which, in the long-term, are at least equally important for the life of a
business.”512 Accordingly, the Church’s recognition of the individual person’s right to ownership “comes attached with a certain debt to society. The enterprise must be considered a society of persons in which labor and capital play complementary, rather than antagonistic, roles.”513
Catholic social teaching also recognizes the legitimate role of profit for business to
survive. However, the Church insists that profits cannot be the sole end of economic
enterprise. The service of the common good and the integral development of all people must
508 Kenneth R. Himes, “Globalization with a Human Face: Catholic Teaching and Globalization,” Theological Studies 69 (2008): 272. 509 John Paul II, Centesimus Annus, 58. 510 For example, RN 32, QA 51, 136, MM 19, 51, CA 31, the Compendium 336. Bernard Laurent, “Caritas in Veritate as a Social Encyclical: A Modest Challenge to Economic, Social, and Political Institutions,” Theological Studies 71 (2010): 528. 511 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 336. 512 John Paul II, Centesimus Annus, 35. 513 Laurent, “Caritas in Veritate as a Social Encyclical”: 529. 169 be its fundamental and higher priority.514 It argues that “the legitimate pursuit of profit should be in harmony with the irrenounceable protection of the dignity of the people who work at various levels in the same company.”515 Therefore, as the U.S. Catholic Bishops recognized
in their Pastoral Letter, Economic Justice for All, “Our faith calls us to measure this economy,
not only by what it produces, but also by how it touches human life and whether it protects or
undermines the dignity of the human person.”516
The main reason for the Church’s involvement in denouncing the current
globalization and her commitment to contribute in its humanizing is her concern to protect
the dignity of the human person and her preferential love for the poor. John Paul II affirms
this in his encyclical Centesimus Annus stating, “The main thread, and in a certain sense, the
guiding principle of Pope Leo’s encyclical, and of all the Church’s social doctrine, is a
correct view of the human person and of the person’s unique value.”517The Church holds that
respect for the dignity of every person undergirds all other social values. Hence, it argues that
economic development and the nature of business should be measured in terms of their
effects on the quality of human life, especially on the lives of the poor and on society. The
U.S. Catholic bishops in their pastoral letter Economic Justice for All state, “Every economic
decision and institution must be judged in light of whether it protects or undermines the
dignity of the human person. … by what it does for and to people and by how it permits all to
participate in it.”518 The Church therefore, evaluates policies, social institutions, and ideologies based on her vision of the human person and society. She argues that a society is well ordered when it is “structured and functions not according to the maximization of profit, the needs of a nation, or the greed of the disordered human heart but, beyond all else,
514 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 348. 515 Ibid., no. 340. 516 U.S. Catholic Bishops, “Economic Justice for All,” no.1. 517 John Paul II, Centesimus Annus, 11. 518 U.S. Catholic Bishops, Economic Justice for All, no. 13. Emphasis is original. according to the intrinsic worth, freedom, and dignity of every human person.”519
Today neo-liberal globalization has reduced the human person solely to homo
economicus, that is, the human person as an isolated, rationalistic, profit-maximizing, self- interested, and competitive individual. It sees the person merely as a consumer who satisfies his or her preferences via instrumental reason, which is choosing the most efficient means available for achieving any given end with maximum efficiency.520 It reduces all human
decisions and actions to the market logic, which are a calculus of costs and benefits.521 In
short, it depersonalizes individuals by reducing their value and worth to what they produce,
possess, own and consume. This narrow and individualistic understanding of the human
person is in stark contrast to Christian anthropology. The Church argues that the fundamental
dignity and worth of the human person is not measured on the basis of wealth that an
individual possesses the income he generates, but rather in being created in the image of God.
It is matter of being, not merely having. Moreover, against such a narrow and individualistic
understanding of the person, the Church asserts that an authentic human development takes
place only within a human community. The individualistic and materialistic view of the
human person fails to recognize the social obligations and responsibilities of a human person
for the common good.522 The Church rejects the “individual pursuit of self-interest, guided by
no purpose other than a material one, and obeying no normative constraint of a moral order,
can only result in an ethics of desire, craving, imitation, and rivalry.”523
The Church firmly argues that “the economy exists to serve the needs of the people;
the people do not exist to serve the needs of the economy.”524 Moreover, as asserted by the
519 Groody, Globalization, Spirituality, and Justice, 109. 520 Kent Van Til, “Human Nature and Human Needs in Recent Economic Theory,” in Global Neighbors: Christian Faith and Moral Obligation in Today’s Economy, eds. Douglas A. Hicks and Mark Valeri (Grand Rapids, Michigan/Cambridge, U.K.: William B. Eerdmans Publishing Company, 2008), 73-74. 521 Clark, “Economic Life in the Catholic Social Thought and Economic Theory,” 80. 522 Collins, The Moral Measure of the Economy, 84. 523 Laurent, “Caritas in Veritate as a Social Encyclical”: 523. 524 Clark, “Economic Life in the Catholic Social Thought and Economic Theory,” 97. 171
U.S. bishops, the moral criterion to judge and evaluate economic policies, their success, and claims must be shaped by three questions: “what they do for the poor, what they do to the poor, and what they enable the poor to do for themselves.”525 Pope Benedict XVI analyzes the current globalization and gives reasons for the Church’s denouncement of it. He states,
"We cannot remain passive before certain processes of globalization which not infrequently increase the gap between the rich and the poor worldwide. We must denounce those who squander the earth's riches, provoking inequalities that cry out to heaven."526
As discussed in chapter one, the current globalization is not helping the majority of
the poor; rather it has worsened their situation. The economic inequality between the
superfluously rich and the poor is accelerating as the disparity of wages, opportunities, and
skills is ever widening. The mere fact that there are rich and poor people in the world does
not constitute social injustice. However, from the moral perspective the dehumanizing
poverty alongside extravagant and superfluous wealth of a few elite is morally unacceptable and unjustifiable. Respect for human dignity means little if the basic needs of billions are not met. Without proper access to adequate food, basic education, medical care and opportunities for meaningful and dignified work, a person cannot fully participate in society and realize the fullness of her/his human dignity. The Christian understanding of the human person demands that “nobody, no matter what they have done or how frail they are, falls outside the scope of concern and justice and therefore of the community of faith.”527
Today more than 40 percent of the world’s population (around 2.5 billion people) is
living on less than $2 a day, while the richest 10 percent people of the world own 54 percent
of the world’s wealth.528 The UNICEF’s 2009 report reveals that an average of 25,000
525 U.S. Catholic Bishops, “Economic Justice for All,” 24. Emphasis in original. 526 Benedict XVI, Sacramentum Caritatis no. 90. http://www.catholic.org/international/internationalstory.php?Id =23370&page=31 (accessed May 15, 2011). 527 Christopher Budd, “Forward,” in Catholic Social Justice: Theological and Practical Explorations, ed. Philomena Cullen, Bernard Hoose, and Gerard Mannion (London/New York: T&T Clark, 2007), xiii. 528 Rieger, No Rising Tide, 42. children under the age of five are dying each day mostly from causes that are preventable
with low-cost prevention and more than one billion children are deprived of their rights to
proper education, clean drinking water and sanitation, access to information, essential health
care, nutrition and shelter.529 When faced with these hard realities one cannot argue that the
economic system is outside the realm of morality. Hence, as asserted by John Paul II in his
encyclical Sollicitudo rei Socialis, political and economic marginalization is not only an economic problem but also a “moral evil, a social sin, and a crisis of values”.530
As Pope Benedict XVI reminds us in his encyclical Caritas in Veritate, “locating
resources, financing, production, consumption, and all the other phases in the economic cycle
inevitably have moral implications. Thus every economic decision has a moral
consequence.”531 Kenneth Himes aptly summarizes this point saying, “globalization's evolution will be a matter of value preferences by persons exercising moral agency.
Portraying globalization as anything else shields us from our accountability for the future direction of the world we are shaping.”532
1.2. The Church: a Sign of God’s Kingdom
The heart of the Church’s mission is a total commitment to the universal and integral salvation of all God’s people and service to the kingdom of God. Though the Church herself
is not the Kingdom of God, she is a sign and sacrament of God’s Kingdom. The Church, as a
community of believers in Christ, constantly engages herself in discerning the signs of the
times in the light of the Gospel and responding to them. As an historical embodiment of Jesus
Christ, the task of the Church is to engage herself in the complexities of the world to fulfill
her mission of unmasking the active presence of God’s reign in concrete historical events of
529 UNICEF, The State of the World’s Children: Special Edition, 2009, 16, http://www.childinfo.org /files/ SOW CSpecEd_CRC_EN_2010.pdf (accessed May 20, 2011). 530 Gregory Baum, “Structures of Sin,” in The Logic of Solidarity: Commentaries on Pope John Paul II’s Encyclical ‘on Social Concern,’ ed. Gregory Baum and Robert Ellsberg (New York: Orbis Books, 1989), 117. 531 Pope Benedict XVI, Caritas in Veritate, no. 37. 532 Himes, “Globalization with a Human Face”: 271. 173 our world. This involves engaging herself with people in their liberation from all kinds of evil that manifests in various forms.533 The 1971 Synod of Bishops document Justice in the World
observed, “The present situation of the world, seen in the light of faith, calls us back to the very essence of the Christian message, … unless the Christian message of love and justice shows its effectiveness through actions in the cause of justice in the world, it will only with
difficulty gain credibility with men [women] of our times.”534 The theological reason for
linking the Kingdom mission with concrete situations of people is that Jesus’ plan of
Redemption “touches the very concrete situations of injustice to be combated and of justice to
be restored.”535
The Church believes and proclaims that the Kingdom of God is already present in our
midst transforming the whole person, the whole society, and all of creation. Hence, it is not a
reality that we wait to unfold in the unknown future, outside of this material world and time.
The synoptic Gospels proclaim that through the words and actions of Jesus the reign of God
has already broken into the fabric of our world and it is present within and among the human
community. It is a present reality, though its fullness and perfection will be realized at the end
of time.536 The historical social-political and economic progress cannot be identified with the
fullness of God’s reign. The kingdom, as religious category, has transcendental and
eschatological dimensions. The Kingdom of God, which embraces all people, will be fully
realized only in God beyond human history. Nevertheless, the Kingdom of God also contains
an immanent dimension, one that needs to be historicized and therefore there is a relationship
between the Kingdom of God and socio-political and economic realities. The Church,
533 Ignacio Ellacuria, “The Church of the Poor, Historical Sacrament of Liberation,” in Mysterium Liberationis: Fundamental Concepts of Liberation Theology, ed. Ignacio Ellacuria and Jon Sobrino (Maryknoll, New York: Orbis Books, 1993), 546. 534 Synod of Bishops, Justice in the World, chapter 2, in Catholic Social Thought: The Documentary Heritage, ed. David J. O’Brien and Thomas A. Shannon (Maryknoll, New York: Orbis Books, 1992), 293-94. 535 Paul VI, Evangelii Nuntiandi, no. 31. 536 William C. Spohn, Go and Do Likewise: Jesus and Ethics (New York: The Cintinuum Publishing Company, 2000), 83-85.. through her prophecy, can historicize and concretize the Kingdom of God and place it in
contrast with our current historical situation. This contrasting will help to show the
limitations and evils of our present world situation and to pull the reality beyond the evils of
the present into the direction of fullness of the Kingdom.537 The Church’s engagement in
public life, though religiously rooted, has significant political and economic consequences.538
The reign of God in history exposes not only personal sin but also “sin of the world.”539
The “already/but not yet” tension of God’s Kingdom or the eschatological hope of perfect realization of God’s justice at the end time does not weaken the Church’s obligations to commit itself to social justice. Rather, it is a “specification of how this sharing [in the death and resurrection of Christ] is to be made present in the relations between persons in history.”540 The Second Vatican Council reminds us that our eschatological expectations of
God establishing a new earth and a new heaven “must not weaken but rather stimulate our
concern for cultivating this one.” While recalling the need to make a careful distinction
between earthly progress and the growth of Christ’s Kingdom, it continues, “Nevertheless, to
the extent that the former can contribute to the better ordering of human society, it is of vital
concern to the Kingdom of God.”541 The eschatological hope provides a vision to a believer
in Jesus and to the community to value their lives in the world and to accept their
responsibilities to society.542 Thus, the eschatological hope of fullness of new earth and new
heaven should stimulate the Church’s commitment to justice and charity here and now in concrete actions. The Church, through her works of proclaiming and propagating human
537 Ellacuria, “Utopia and Prophecy in Latin America,” 291-92. 538 Lamoureux, The Christian Moral Life, 255. 539 Sin of the world is “fundamentally historical and structural, communitarian and objective, at once the fruit and cause of many other personal and collective sins.” Jon Sobrino, “Central Position of the Reign of God in Liberation Theology,” in Mysterium Liberationis: Fundamental Concepts of Liberation Theology, ed. Ignacio Ellacuria and Jon Sobrino (Maryknoll, New York: Orbis Books, 1993), 355. 540 David Hollenbach, “Modern Catholic Teachings Concerning Justice,” in The Faith that Does Justice: Examining the Christian Sources for Social Change, ed. John C. Haughey (New York/Ramsey/Toronto: Paulist Press, 1977), 227. 541 Gaudium et Spes, no.39. 542 Patricia Lamoureux and Paul J. Wadell, The Christian Moral Life: Faithful Discipleship for a Global Society (Maryknoll, New York: Orbis Books, 2010), 61. 175 dignity, communion of persons, compassion, justice, and peace, should actively engage herself in unmasking the presence of the Kingdom in human history.543 Christians are called
to live their faith and their mission in a constant tension well expressed as the “already, not
yet” nature of God’s reign.
The synoptic Gospels proclaim that God’s reign is both a gift and a task. It is an
unmerited and gracious gift from God, offered to humanity out of love. It is “not something
we bring about; rather, God brings it about. In the meantime we await it with hope for the
fullness of that kingdom and try to act in a way that is appropriate to its claims.”544 It is
experienced as the power that can give “freedom, wholeness, meaning, and authority to our
lives.”545 Nonetheless, it is also a task given to humanity. The universal and integral salvation
offered to all humankind by God in Jesus Christ and transmitted by the Holy Spirit requires a free human response and acceptance. This implies freely committing one’s self to God by loving one’s brothers and sisters. Thus, Christian salvation makes an indissoluble link between love for God and love for neighbor.546 The Kingdom of God demands human
collaboration with God. Human beings have a responsibility to further it by their firm
commitment to practice the Kingdom values547 in their daily lives and in their relationships
with others. The Kingdom values are based on God’s own primary mission of “the bringing
into creation, sustenance, restoration when broken, and eschatological completion of a
covenant community whose main characteristics are peace (shalom) and justice
(sedequah).”548 God’s reign is therefore closely related to the establishment of a just world.
The Church’s mission of being a sign and sacrament of God’s universal and integral
543 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 63. 544 Daniel Harrington and James Keenan, Jesus and Virtue Ethics: Building Bridges between New Testament Studies and Moral Theology (Lanham/Boulder/New York/Toronto/ Plymouth, U.K.: Rowman & Littlefield Publishers, 2002), 39. 545 Lamoureux, The Christian Moral Life, 57. 546 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no.38-40. 547 Some of the important Kingdom values are: truth, justice, love, respect for human dignity, inclusiveness, forgiveness, kindness to the neglected ones, and peace. 548 Coleman, An American Strategic Theology, 10. salvation leads her to embrace all people and the whole person. Helping men and women on
the path of salvation touches every dimension of the person, which includes the spiritual,
moral, social, economic, political, and cultural dimensions.549 The Church’s obligation to
proclaim the liberating word of God therefore includes not only individual consciences but
also public institutions that oppose human liberation and bury God’s reign.550 Pope Paul VI in his Apostolic Exhortation Evangelii Nuntiandi (1975) states that, though proclamation of salvation in Jesus Christ is at the center, “evangelization would not be complete if it did not take account of the unceasing interplay of the Gospel and man’s concrete life, both personal and social. This is why evangelization involves an explicit message … about life in society, about international life, peace, justice and development – a message especially energetic today about liberation.”551 The Second Vatican Council and many post-Councilor documents
reaffirm that “the Gospel has to be proclaimed in an actual situation, with attention to its
implications for the reordering of society.”552 Therefore, the Church’s mission calls her to
denounce all sin and evil, including sinful structures, which destroy human dignity and
prevent the spreading of God’s reign here on this earth. Defending social justice and
denouncing gross economic inequalities are part and parcel of the Church’s mission of being
a sign and sacrament of God’s Kingdom.
Making the Kingdom of God the center of the Church’s mission means to see-judge-
act the reality of globalization from the perspective of Kingdom values and the poor. It
involves analyzing the reality of globalization in all its dimensions, especially in relation to
its victims, judging it in the light of God’s design for the world, and through her solidarity
549 I do recognize that there are differences between human promotion and salvation, though authentic historical human promotion is related to Christian salvation. The socio-political liberation from social sin is an essential part of salvation, though not the fullness of it. Ellacuria, “The Church of the Poor, Historical Sacrament of Liberation,” 553-54. 550 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 70-71. 551 Paul VI, Evangelii Nuntiandi, no. 29. 552 Avery Dulles, “The Meaning of Faith Considered in Relationship to Justice,” in The Faith that Does Justice: Examining the Christian Sources for Social Change, ed. John C. Haughey (New York/Ramsey/Toronto: Paulist Press, 1977), 11. 177 with the poor and people of good will the Church should act to promote an integral development of all people and human communities.553
1.3. The Church’s Commitment to Social Justice
The third theological reason for the Church’s involvement in the issue of globalization is her commitment to social justice. Christian faith and its demand to love God and neighbor necessarily require direct commitment to justice.554 Various people within the Church have
tried to articulate the dynamic interrelationship between faith and justice or faith and praxis.
Bill Watters coined the term “Faithjustice,” a single word of the two concepts, to stress the
intimate connection and unitive understanding of justice and faith.555 The Second Vatican
Council in its Pastoral Constitution of the Church in the Modern World called upon
Christians to give “the witness of a living and mature faith,” a faith that proves its fruitfulness
“by penetrating the believer’s entire life, including worldly dimensions, and by activating him
toward justice and love, especially regarding the needy.”556
In many post-Conciliar documents, especially in Evangelization in the Modern World,
the Church emphasizes that the propagation of faith must not be limited to word alone, but
also should be linked to a commitment to create a just social order. She makes it clear that
ignoring the issues of justice, liberation, development and peace means “to forget the lesson
which comes to us from the Gospel concerning love of neighbor who is suffering and in
553 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 524; Peter C. Phan, “Christian Social Spirituality: A Global Perspective,” in Catholic Social Justice: Theological and Practical Explorations, ed. Philomena Cullen, Bernard Hoose, and Gerard Mannion (London/New York: T&T Clark, 2007), 29. 554 Avery Dulles develops three elements of Christian faith: “a firm conviction regarding what is supremely important, dedication or commitment to that which one believes in, and trustful reliance on the power and goodness of that to which one stands committed.” He argues that without a sincere commitment to heal and reconcile our broken world “we could not have either discernment or the trust that is proper to children of God who share already, by grace, in the divine life opened up to us in Christ.” Dulles, “The Meaning of Faith Considered in Relationship to Justice,” 13. 555 Fred Kammer, Doing Faithjustice: An Introduction to Catholic Social Thought (New York/Mahwah: Paulist Press, 1991), 8-9. 556 Gaudium et Spes, no. 21. Dulles, “The Meaning of Faith Considered in Relationship to Justice,” 11. need.”557 Pope Benedict XVI in his encyclical Deus Caritas Est speaks of “social charity.”
Social charity, he notes, is directed toward the transformation of the social order. While stressing the various roles of the Church and of the state in works of justice he states, “A just society must be the achievement of politics, not of the Church. Yet the promotion of justice
through efforts to bring about openness of mind and will of the demands of common good is
something which concerns the Church deeply.”558
As people of faith, both individuals and a community of believers, all Christians are
called to participate in the process of reflection and action regarding the issue of the current
globalization from the perspective of the unity of love for God and for one’s neighbor. This
implies, as recommended by the Second Vatican Council, a careful discernment and analysis
of the deep structural roots of oppression and poverty that exist in our world. As discussed in
chapter one, the current operation of the market system is marked by injustice, lack of
reciprocity, marginalization, and exclusion of poor people. Its structures, strategies, policies
and institutions are inadequate to improve the quality of life for the vast majority of people in
developing countries. The 1971 Synod of Bishops’ document Justice in the World rightly
recognizes that one of the central issues that lie at the heart of the current model of
development is creating structural injustices that prevent the majority of people from participating economically and politically to determine their own destiny. These poor people
and nations have become ‘voiceless victims of injustice’.559 John Paul II reaffirmed this in his
encyclical Centesimus Annus. He states that a majority of people do not have the means to participate in an effective and dignified way within the modern business economy and thus,
“they are to a great extent marginalized; economic development takes place over their
557 Paul VI, Evangelii Nuntiandi, no. 31 558 Pope Benedict XVI, Deus Caritas Est, no 28. http://www.vatican.va/holy father/benedict xvi/encyclicals/ documents/hf_ben-xvi_enc_20051225 deus-caritas-est_en.html (accessed May 15, 2011). 559 Donal Dorr, Option for the Poor: A Hundred Years of Catholic Social Teaching, revised ed. (New York: Orbis, 1992), 233. 179 heads.”560
In order to create, what liberation theologian Ignacio Ellacuria calls “civilization of
poverty,”561 first of all neo-liberal globalization must be analyzed as a structural evil and as a
social sin. In the following section I will develop the concept of social sin to emphasize the
point that social justice necessarily demands a conversion away from social sin.
1.3.1. Identifying Structures of Sin
The current socio-economic reality of growing poverty in the midst of superfluous
wealth, poor people dying before their time due to hunger, ill health, despair, and the
experiences of exclusion, discrimination, and powerlessness of workers, the breakdown in
community services, a growing greed to acquire more wealth and power by any means are
some of the symptoms of the structures of sin reaching to the very fabric of our
community.562 Dehumanizing poverty, as discussed in chapter one, is a result of economic,
political, and social structures that prevent large numbers of people from participating in the
benefits of development. It is a social sin because it violates God’s social ordering and God’s design for this earth. The scriptures affirm that God envisioned abundant life with adequate material provisions for the survival and sustenance of all people here and now.563
Over the years the Catholic Church has come to realize that her efforts to bring God’s
justice and peace are blocked by the embodiment of evil and its effects in established
structures. She has recognized that inequality and discrimination of people are built into the
560 John Paul II, Centesimus Annus, no.33. 561 Ellacuria, “Utopia and Prophecy in Latin America,” 315-317. Ellacuria was not aiming for universal pauperization by writing on the civilization of poverty. He was arguing that the civilization of wealth does not meet the basic needs of everyone, rather it dehumanizes the poor. Therefore it should be rejected as a solution to reduce poverty. Instead he proposed the civilization of poverty, which is based on principles of materialistic humanism that aim at the universal satisfaction of basic needs. It suggests that the structuring of a society must give primacy to the human being by guaranteeing their basic needs, the freedom of personal choices, solidarity and common enjoyment of common property. Jon Sobrino, No Salvation outside the Poor: Prophetic-Utopian Essays (Maryknoll, New York: Orbis Books, 2008), 9, 13-14. 562 Sin is seen not only as breaking our relationship with God, but also breaking our relationship with God’s living images, the human beings. Any structures that harm human dignity are seen as sin. O’Keefe, What Are They Saying About Social Sin?, 59; Ormerod, Globalization and the Mission of the Church, 43. 563 Albino Barrera, God and the Evil of Scarcity: Moral Foundations of Economic Agency (Notre Dame, Indiana: University of Notre Dame Press, 2005), 25. structures of our society and therefore justice requires transformation of the unjust social, political, and economic structures.564 These structures are a result of human decisions of the past and human choices of the present. The sinful structures through the complicity of social systems and institutions enforce tainted values on the human community that violate the dignity of the majority of people.565 So, injustice is not simply a condition; rather it is a structured and institutionalized reality. The fight for justice and liberation of the poor necessarily requires changing those unjust structures and not merely addressing isolated instances of injustice.566
Social sin, a term popularized by liberation theology, the Latin American bishops’ conferences,567 and German political theology, emphasizes the dimension of sin in social institutions and socio-economic, political and cultural structures that cause exploitation and oppression.568 Liberation theologians, influenced by dependency theory,569 used the term to refer to the “existing social, economic, and political structures and institutions that incorporate the interests of the powerful at the expense of the powerless and oppressed and stand in the way of true justice.”570 Today theologians use the term “sinful social structures” or “systematic sin” to highlight the social reality of sin. A social structure can be sinful in its
564 A structure starts as human creations, and in the course of time it gains a reality of its own in individual human lives, communities, and world shaping the values, commitments, and lives of people. A social structure has capacities to produce good and evil effects side-by-side. 565 Kammer, Doing Faithjustice, 174-75. 566 Lebacqz Karen, Six Theories of Justice: Perspectives from Philosophical and Theological Ethics (Minneapolis, MN: Augsburg Publishing House, 1986), 104. 567 The relationship of injustice to structures was a major focus in Latin American liberation theology and in the statements of Latin American bishops’ Medellin and Puebla meetings. O’Keefe, What Are They Saying About Social Sin?, 15-16. 568 Baum, “Structures of Sin,” 111. 569 Dependency theory claims that the political, economic, cultural, and social institutions do not function autonomously, as claimed by capitalist liberal theory, but are interrelated and unified for the service and support of rich to exploit the poor. It explains that the real cause for underdevelopment of the poor countries is the oppressive structures imposed by the rich developed nations on the developing countries. It sees a systematic and strategic marginalization of poor nations by rich countries in the name of ‘economic support’. It proposes a radical structural change of a society for a genuine social transformation. Schubeck, Liberation Ethics: Sources, Models, and Norms, 93; Himes, “Commentary on Justitia in Mundo,” 342. However, today liberation theology hardly makes use of it. 570 Charles E. Curran, The Moral Theology of Pope John Paul II (Washington: Georgetown University, 2005), 82. 181 source and in its consequences. The unjust social, economic, political, religious and cultural structures are built up and maintained by human greed that oppresses and exploits the poor who are powerless and helpless to oppose them.571
Sin is normally defined as a free act of an individual person; therefore it is personal in
its essence and root. However, because of human interconnectedness, every personal sin in
some way or other affects other people. Social sin is more than just the indirect effects of
personal sin. It refers to “every sin committed against the justice due in relations between
individuals, between the individual and the community, and also between the community and
the individual.”572 Oscar Romero in his Second Pastoral Letter written in 1977 explained social sin as “the crystallization, in other words, of individuals' sins into permanent structures
that keep sin in being, and make its force to be felt by the majority of the people.”573 Social
sin does not mean that structures commit sin, but rather “structures manifest and actualize the
power of sin.”574 Theologians have recognized at least four possible relations between social sin and personal sin. 1. Social sin represents the social effects of individual personal sin, 2. it is an embodiment of personal sin and injustice in social structures, 3. both personal and social sin are co-essential components of sin, and 4. Social sin is the primary meaning of sin of which personal sin is the manifestation.575
John Paul II first referred to the concept of social sin in his 1984 apostolic
exhortation, Reconciliation and Penance. In that document he defined social sin as sin against justice in interpersonal relationships, committed by an individual, or by one community against another.576 In 1987, in his second social encyclical Sollicitudo rei
571 O’Keefe, What Are They Saying About Social Sin?, 33, 63. 572 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 118. 573 Oscar Romero, The Church, the Body of Christ in History, Second Pastoral Letter, August 6 1977, 5. http:// www.romerotrust.org.uk/documents/pastoral%20letter/second%20pastoral%20letter.pdf (accessed May 30, 2011). 574 Sobrino, “Central Position of the Reign of God in Liberation Theology,” 355. 575 O’Keefe, What Are They Saying About Social Sin?, 17. 576 John Paul II, Reconciliation and Penance, 16. http://www.vatican.va/holy_ father/john_paul_ii/apost_ exhortations/documents/hf_jp ii_exh_02121984 reconciliatio-et-paenitentia en.html (accessed June 15, 2011). Socialis, he further developed the idea and referred to injustices of our world as “structures of
sin” and thereby applied it directly to social, economic, and political problems.577 He warned
about “rigid ideologies” that would make our world subject to structures of sin. He stressed
that, in order to gain a profound understanding of the reality that confronts us, we need to name the root of the evils that affect us. The desire for profit and thirst for power, he said, are two powerful forces that build up structures of sin. These structures of sin, he explained,
“enter into the will of the triune God, his plan for humanity, his justice and his mercy.”578 In the same encyclical he presents three aspects of the operation of social sin: First, every free personal sin has social effects, second, some personal sins have a direct effect on the neighbor, and third, in an analogical sense it refers to relationships between various human communities.579
Though John Paul II admits that it is not always easy to demarcate the boundaries
between social and personal sin,580 nevertheless, he places heavy emphasis on personal sin
and is reluctant to admit an independent existence of structures of sin, separated from human
intentionality and freedom. He insisted that the usage of social sin is analogical and the
ultimate root is personal sin. So, he emphasizes that the political and economic
marginalization are “moral evil, a social sin, and a crisis of values” which come from
“individuals’ actions and omissions.” The remedy, he suggests, is growth in the spiritual
attitudes and human solidarity.581
Unearthing the sinful structures of our globalized society highlights the need for a
stronger commitment to works of justice and charity. Gaudium et Spes explicitly states that in
577 O’Keefe, What Are They Saying About Social Sin?, 15. 578 John Paul II, Sollicitudo rei Socialis, no 36. 579 Curran, The Moral Theology of Pope John Paul II, 82. 580 Kenneth R Himes, “Liberation Theology and Catholic Social Teaching,” in Hope and Solidarity: Jon Sobrino’s Challenge to Christian Theology, ed. Stephen J. Pope (Maryknoll, New York: Orbis Books, 2008), 237-38. 581 Curran, The Moral Theology of John Paul II, 83; John Paul II, Sollicitudo rei Socialis, no 36. Also see Baum, “Structures of Sin,” 117. 183 the context of enormous numbers of people lacking absolute necessities of life “numerous reforms are needed at the socio-economic level, along with universal changes in ideas and attitudes.”582 The Church insists on the importance of both, charity and justice, in
transforming society. Changing one’s attitudes and structural changes are interrelated. Hence,
the document Evangelii Nuntiandi states, “the Church evangelizes when she seeks to convert,
… both the personal and collective consciences of people, the activities in which they engage, and the lives and concrete milieu which are theirs.” The document continues by saying that the Church aims to affect humankind’s “criteria of judgment, determining values, points of interest, lines of thought, sources of inspiration, and models of life.”583 In a situation that is marked by structural injustice and marginalization, Christian love necessarily demands a commitment to works of charity and justice. It requires prophetic denunciation of inhuman
injustices and poverty and the evil structures that create and perpetuate these inhuman evils.
Hence, changing the hearts of individual persons and changing the evil structures of society
are essential and interlocking aspects of the process of humanizing the current globalization.
There is a dialectical relationship between personal and social conversion.584
The Church proclaims that the mission of promoting justice should be guided by the
law of love and charity and never by hatred. Pope Benedict XVI speaks of charity in truth,
which he defines as the dynamic of “received and given” of God’s creative and redemptive
love, as the heart of the Church’s social teaching. He also says that “Not only is justice not
extraneous to charity, not only is it not an alternative or parallel path to charity: justice is
inseparable from charity.”585 Moved by Christian love, engagement in transforming the evil
structures into just structures that promote the human dignity of all becomes a passionate
582 Gaudium et Spes, 63. 583 Pope Paul VI, Evangelii Nuntiandi, no. 18-19, 309-10. 584 Mark O’Keefe, What Are They Saying About Social Sin? (New York/Mahwah: Paulist Press, 1990), 93. 585 Benedict XVI, Caritas in Veritate, no.6. mission of the Church.586 This may include activities such as lobbying, grassroots
mobilization, conscientization, and advocacy.587 The Church is already, through Vatican
diplomatic interventions as well as national episcopal conferences, trying to advocate for
structural justice in numerous national and international venues. The Vatican representative
to the United Nations in Geneva, formerly Archbishop Celestino Migliore and now
Archbishop Francis Assisi Chullikatt, is a firm voice advocating Catholic principles of justice and the common good in world politics.588
1.3.2. The Christian Meaning of Justice
The concept of justice is not a simple and straightforward concept to understand.
There is confusion, conflict, and wide diversity in understanding and defining it. Most
contemporary political philosophers regard social justice within the paradigm of distributive
justice. Very often social justice and distributive justice are used interchangeably.589 Though there are disputes and varying opinions over what justice demands,590 the most common
explanations of justice address appropriate distribution of social benefits and penalties among
contending parties.591 The main focus is on fairness of exchange, distribution of goods and services, or creation of wealth. Therefore, justice is defined according to the classic formulation “to each according to his/her due.”592 A just state of affairs is explained as one
“in which each individual has exactly those benefits and burdens which are due to him by
586 Kammer, Doing Faithjustice, 181. 587 Sniegocki, Catholic Social Teaching and Economic Globalization, 322-23. 588 Cahill, “Caritas in Veritate: Benedict’s Global Reorientation”: 309. 589 David Miller, Principles of Social Justice (Cambridge, MA: Harvard University Press, 1999), 2. 590 For example Utilitarians like John Stuart Mill, Jeremy Bentham, and others hold that justice is grounded in utility; Rawls argues that fairness should be the guiding principle of justice and justice requires the basic structures of society, which protects the least advantaged in society; Robert Nozick argues that it is freedom, not equality, that constitutes the core of justice. Lebacqz, Six Theories of Justice, 116-18. 591 Chris Marshall, The Little Book of Biblical Justice: A Fresh Approach to the Bible’s Teachings on Justice (Intercourse, PA: Good Books, 2005), 6-7. 592 There are radically different content in deciding what is “due.” For example, the utilitarians would say it is maximizing utility; Rawls argues it is basic structure that benefits the least advantaged; the Catholic social tradition holds that it is respecting human dignity and liberation theology argues that it is liberating the poor and oppressed. Lebacqz, Six Theories of Justice, 118. 185 virtue of his personal characteristics and circumstances.”593 The notion of social justice
presupposes three assumptions: a bounded society with a determinate membership, second,
identifiable institutions, and third, some agency capable of changing the institutional
structures.594
The pluralism of definitions of justice is also present within Christian moral theology.
In a broad sense, Christian theology has two notions of justice: internal and external justice.
Internal justice refers to one’s right relationship with God and external justice refers to one’s
humanizing activity that seeks right relationship with self, the community, its social
structures, and environment. Justice in Christian theology is primarily about fidelity to the
demands of right relationships.595 Right relationships always demand respect for human
dignity. The justice of human relationships is judged in terms of the way they promote human
dignity by enhancing mutuality and participation in community.596 The normative notion of
justice in modern Catholic tradition is, therefore, an “essentially social concept – it is
relational and mutual.”597
The above discussed meaning of justice in Christian theology is rooted in the
righteousness of God and in the covenantal love of God for all people, as portrayed in the
Scriptures.598 A brief discussion of the biblical understanding of justice will help to
illuminate some of the theological reasons for the Church’s argument that economic justice is
not an optional, but rather an essential aspect of her faith as demanded by God.
593Andrew Hartropp, What is Economic Justice?: Biblical and Secular Perspective Contrasted (Milton Keynes/Colorado Springs/Hyderabad: Paternoster, 2007), 2. 594 Miller, Principles of Social Justice, 4. 595 Groody, Globalization, Spirituality, and Justice, 26-27. 596 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 213. 597 Ibid., 210. 598 Ibid., 226. 1.3.2.1. The Biblical Understanding of Justice
In the Bible justice is a central theme and concern. The Bible portrays justice as an
intrinsic aspect of God’s being and nature. It is the heart of who God is and what God
does.599 However, it is difficult to provide a definite biblical definition of justice. It is a
many-faceted term and applied to a wide variety of things. In the Bible justice involves at
least three things: appropriate treatment of people -- in the way God desires and commands,
second, special love for the needy and oppressed, and third, concern for the quality of life.600
In general, the biblical idea of justice can be described as “fidelity to the demands of a relationship.”601 In the Bible there are two significant events that reveal God’s justice: the
Exodus event, where God liberates Israel from their slavery from Egypt and forms them into
a covenant community, and the Incarnation of Jesus Christ, who brings deliverance from sin
and inaugurates a new covenant.602
The two principal terms used in the Bible to speak of justice are sedeqah
(“righteousness”) and mispat (“Justice or judgment”). In the Old Testament justice and
righteousness are closely related terms. They occur with virtually identical meaning. The
semantic field of Mispat captures more of what is done and sedeqah is the quality that fills
what is done.603 The foundation of biblical justice is God’s covenant with God’s people. It is
modeled on God’s righteousness, which is expressed in God’s fidelity to covenantal
relationship, which is nothing but God’s act of steadfast love, mercy, victory over evil, and
God’s saving power.604 In the Old Testament justice means to be loyal to the covenant
relationships and its conditions that are spelled out in the Torah. God demands that the people
599 Marshall, The Little Book of Biblical Justice, 22. 600 Hartropp, What is Economic Justice?, 30-31. 601 John R. Donahue, “The Bible and Catholic Social Teaching: Will This Engagement Lead to Marriage,” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes, et al. (Washington, D.C.: Georgetown University Press, 2004), 14. 602 Marshall, The Little Book of Biblical Justice, 9. 603 Hartropp, What is Economic Justice?, 16. 604 Ibid., 18; John R. Donahue, “Biblical Perspectives on Justice,” in The Faith that Does Justice: Examining the Christian Sources for Social Change, ed. John C. Haughey (New York/Ramsey/Toronto: Paulist Press, 1977), 73. 187 of Israel, the covenant people, should act toward one another in the same way that God acted toward them.605 Justice in the Bible therefore demands both vertical and horizontal
dimensions of relationships. Hence, being faithful to the covenant means to be in right
relationship with God, fellow human beings, and self. In the Bible love and justice are closely
linked, though justice is not synonymous with love. Love for one’s neighbor means to have
an active desire for the well-being of the other and communion with the neighbor.606
The Hebrew prophets constantly remind the people of Israel that God’s demand to be
in right relationship with God and with others necessarily involves practicing compassion and love for the least and poorest among them.607 Whenever Israel forgets its covenantal duty to
love the poor the prophets, especially Amos, Isaiah, and Jeremiah, remind them that their
fidelity to God’s covenant must be manifested in concern for the poor and oppressed. The
people cannot know Yahweh if they do not heed God’s call to defend the rights of the poor and the oppressed in their community.608 The prophet Amos strongly accuses Israel of its sin
against the poor indicating, “they who trample the head of the poor into the dust of the earth, and push the afflicted out of the way” (Amos 2:7) and therefore, he says that God has rejected their worship. He speaks of God creating a new society where “justice rolls down like waters
and righteousness like an ever-flowing stream” (Amos 5:24). Thus, the prophet declares that
without justice and concern for the poor Israel’s life would be totally barren.609
Concern and compassion for the oppressed and exploited is rooted in the nature of
God’s justice. Exodus chapter 3 is a clear example. God responds to the cry of Israel which is
oppressed in Egypt: “I have observed the misery of my people … I know their suffering”
605 Marshall, The Little Book of Biblical Justice, 24-25. 606 Hartropp, What is Economic Justice?, 70. 607 Mary Katherine Birge, “Biblical Justice,” in The Heart of Catholic Social Teaching: Its Origins and Contemporary Significance, ed. David Matzko McCarthy (Grand Rapids, Michigan: Brazos Press, 2009), 20-21, 25. 608 Donahue, “Biblical Perspectives on Justice,” 74, 77. 609 Groody, Globalization, Spirituality, and Justice, 39. (Exodus 3:7).610 Therefore God’s love and justice is not totally impartial. God does not treat everyone anonymously, but looks at human needs and struggles to become fully human. God is partial to the people most affected by oppression and exploitation. The Bible has several meanings for poor: bent down or afflicted, humble and lonely, wretched and miserable, bent over, and destitute. They are powerless and experience economic and social deprivation.611 In the Bible they are symbolized by widows, orphans, the poor, and the strangers.612
Jesus’ life and ministry is the fulfillment of all righteousness. It is expressed in his right relationship with the Father, with human beings, and his deliverance of those who were oppressed.613 He begins his public ministry with a bold and radical proclamation of the arrival of God’s reign. He proclaims that through his life and ministry God’s promise of justice and liberation is breaking into human history. The whole ministry of Jesus is about promoting justice, which is establishing right relationships with God and with one another.
His proclamation of God’s reign is characterized by love, justice, fidelity and concern for the well-being of the weak and needy.614 His proclamation of God’s kingdom challenges the deep-seated expectations of his hearers. His acceptance and friendship with marginal groups and sinners counters the evaluation of people by class and social status. His life and death is a paradigm for those who take the side of the poor and marginal.615 Jesus in the gospels connects justice with love. For Jesus, justice is to love one another as God has loved us, with no distinction of persons and without reservation. He demands that his followers must be trustworthy and must have special love and concern for the poor, hungry, women, and strangers.616
The biblical understanding of justice provides a moral framework to develop a
610 Harrington, Jesus and Virtue Ethics, 129. 611 Donahue, “The Bible and Catholic Social Teaching,” 21-22. 612 Donahue, “Biblical Perspectives on Justice,” 73. 613 Hartropp, What is Economic Justice?, 95. 614 Lamoureux, The Christian Moral Life, 55-56. 615 Donahue, “The Bible and Catholic Social Teaching,” 25. 616 Walter J. Burghardt, Justice: A Global Adventure (Maryknoll, New York: Orbis Books, 2004), 18-20. 189
Christian commitment to economic justice. The Biblical justice, understood in the context of covenant relationship and God’s concrete actions towards oppressed Israel and the poor, calls for a commitment to resist oppressive structures and set free the oppressed.617 It places a heavy responsibility on the rich and powerful to defend and respect the needy, the poor and the powerless.618 Justice in the Bible is not an abstract idea, but rather it is a concrete
commitment to action. It involves resisting the oppressor and setting the oppressed free. The
biblical version of justice demands a radical intervention, as the prophet Isaiah portrayed, to
“loose the bonds of justice, and undo the thongs of yoke, to let the oppressed go free, and to
break every yoke” (Isaiah 58:6).619
1.3.2.2. Justice in Catholic Social Teaching
Rooted in the righteousness of God, which is manifested in its fullness in the paschal
mystery of Christ, Catholic social teaching has a broader and positive understanding of
justice. It is based on the Christian norm of agape and on “the conviction that human dignity
is social rather than a purely private affair.”620 The demands of justice in the Catholic tradition are based both on philosophical and theological foundations.621Justice in the social
teaching of the Church is closely related to the common good. It “has the first and defining
aspect of being an active contribution to the common good of temporal society.”622 Justice
from the common good perspective “calls for the minimum level of solidarity required to
enable all of society’s members to live with basic dignity.”623
The discussion of social justice in the modern Catholic tradition is in terms of mutual
rights and obligations. It argues that Christian agape and human interrelatedness demand “to
617 Marshall, The Little Book of Biblical Justice, 32-33. 618 Hartropp, What is Economic Justice?, 208. 619 Marshall, The Little Book of Biblical Justice, 32-33. 620 David Hollenbach, Claims in Conflict: Retrieving and Renewing the Catholic Human Rights Tradition (New York/Ramsey/Toronto: Paulist Press, 1979), 55. 621 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 211. 622 Thomas Hughson, “Social Justice and Common Good: Where Are They For?,” in Catholic Social Teaching in Global Perspective, ed. Daniel McDonald (Maryknoll, New York: Orbis Books, 2010), 3. 623 Hollenbach, The Common Good, 192. aid persons in need, to participate in the maintaining of the public good and to share in efforts
to create institutions which promote genuine mutuality and reciprocal respect.”624 It makes
claims both at individual and public level. At an individual level, it claims that an individual
person has obligations to contribute to the common good. It also claims obligations of the
state to create adequate opportunities for all citizens to fulfill their basic needs.625 In other
words, the state has an obligation to promote distributive justice.626
Three Models of Justice
Catholic social teaching, based on Thomas Aquinas’s understanding of justice, has
developed three models of basic justice: commutative, distributive, and contributive/social.
They correspond to three various relationships: individuals to individuals, society to individuals, and individuals to society.627All three models of justice are interrelated and
mutually limiting. They are an attempt to express the demands of Christian agape and human
interdependence. All three models contain an egalitarian dimension. Commutative justice
demands equal claims to mutual freedom and fidelity to contracts, distributive justice
demands equal rights in the mutual participation in the public good, and contributive justice
demands equal obligation by all to contribute to the common good and to create social and
political structures that allow participation of all.628
1. Commutative justice
Commutative justice is the basic building block of society. Thomas Aquinas called it
“particular justice.” It is between individual and individual or between groups which are essentially private. The reciprocity and equivalence in what is gained and lost on both sides
624 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 211. 625 Verstraeten, “Catholic Social Teaching and the European Project,” 149; Hollenbach, “Modern Catholic Teachings Concerning Justice,” 210. 626 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 220. 627 Charles E. Curran, “The Reception of Catholic Social and Economic Teaching in the United States,” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes et al. (Washington, D.C.: Georgetown University Press, 2004), 480. 628 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 220-21. 191 of an exchange are essential dimensions of commutative justice.629 It demands fidelity,
fairness of exchange, equality and freedom among persons or groups involved in an
agreement or contact. However, commutative justice does not give a complete picture of
what justice requires. Human beings are social beings and their well-being is affected by
social frameworks and conditions.630 Justice is therefore not just about agreements and exchanges between two individuals or groups. The larger social framework also influences the ability of individuals to engage in certain kinds exchanges and agreements. Moreover, commutative justice demands that individuals or parties involved must enjoy equality of relationships and should be genuinely free. Any exchange or agreement that is marked by radical differences of power and freedom cannot be called justice. Therefore, for example
Catholic social teaching argues that it is impossible to determine whether a wage is just based on the argument that it has been agreed upon by employer and employee.631
2. Distributive Justice
Distributive justice primarily pertains to public life. It is related to how the
community as a whole treats its individual members. It is a concern about the duty of the
ruling authority, which has care of a community, to provide the minimum material resources
that are necessary for individuals to have a humane and dignified life.632 However, it is not
about dividing public goods in an arithmetic standard, but rather recognizing “the right of all persons to have access to those goods which are essential for the protection of their dignity in the actual conditions of social life.”633 The fulfillment of minimum human needs and equal
opportunities for all to participate in public activities are two important claims of distributive
629 Hollenbach, The Common Good, 193. 630 Ibid., 193. 631 Ibid., 194. 632 Groody, Globalization, Spirituality, and Justice, 99-100. Also see Joshua P. Hochschild, “Natural Law: St. Thomas Aquinas and the Role of Reason in Social Order,” in The Heart of Catholic Socail Teaching: Its Origins and Contemporary Significance, ed. David Matzko McCarthy (Grand Rapids, Michigan: Brazos Press, 2009), 122 633 Hollenbach, Claims in Conflict, 149. justice. It demands that all enjoy rights to have access to public goods which are essential for the protection of their dignity. The principle of distributive justice orders fundamental human rights.634 From a Christian theological perspective, the fundamental reason for distributive justice is the universal destination of goods. God desires that all people participate in God’s abundant blessings. So, the emphasis is not solely with regard to meeting the basic needs but also about the wider notion of human flourishing. Distributive justice ensures that everyone has a chance to participate in God’s blessings. Economic injustice indicates the failure of some people to respect God’s desire that the riches of this earth are meant for the benefit of all people.635
3. Contributive or Social Justice
The Catholic tradition emphasizes that justice is “not simply a matter of proper distribution of goods (distributive justice) but also of permitting and indeed requiring each person to participate in the production of those goods (social justice).”636 Contributive justice or social justice, a term coined by Pope Pius XI in 1931, means that all members of society have duties and responsibilities to contribute to the good of the community according to their capacity. It is “a measure or ordering principle which seeks to bring into existence those social relationships which will guarantee the possibility of realizing the demands of distributive justice.”637
Modern Catholic social teaching gives greater importance to social justice. Social justice can be defined as “institutionalized patterns of mutual action and interdependence which are necessary to bring about the realization of distributive justice.”638 It deals with how people live their lives and make choices in relation to one another. It demands the creation of institutions that protect the rights of all people. It examines the social structures
634 Ibid., 151. 635 Lebacqz, Six Theories of Justice, 75. 636 Ibid., 69. 637 Hollenbach, Claims in Conflict, 152. 638 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 220. 193 that people set up and how these structures promote and protect human dignity and the universal common good.639 The core of social justice in the Catholic social tradition involves
respect for the dignity of each human person and commitment to the common good.
The modern social tradition has tried to translate the attractive and inspiring Christian
vision of justice into concrete norms. The U.S bishops called them “norms of basic or
minimal justice.” 640 Using the natural law tradition, Catholic social teaching has proposed
certain specific human rights and duties as concrete demands of justice.641 From the unique
dignity of each person flow certain inherent, inviolable, and universal social, political,
economic, and cultural rights, which are necessary for an integral development of the human
person. They ensure that people have access to adequate food, clothing, housing, medical
care, schooling, work, and social services.642 Human dignity demands not mere satisfaction
of the basic needs, but also the social well-being of people. The social well-being requires
addressing the structural barriers that prevent people from having proper access to such basic
needs.643
In the context of globalization where wages are primarily paid in strategic terms644 I
want to highlight that the Church’s demand for a “living wage”645 is a basic human right.
This has been a constant theme in the modern Catholic social tradition as a concrete
expression of social justice. John Paul II describes the question of just remuneration as the
key problem of social ethics, and as the concrete means of verifying the justice of the whole
639 Elias Omondi Opongo and Agbonkhianmeghe E. Orobator, Faith Doing Justice: A Manual for Social Analysis, Catholic Social Teachings and Social Justice (Nairobi: Paulines Publications Africa, 2007), 43-44. 640 U.S. Catholic Bishops, Economic Justice for All, no. 68 (emphasis original). 641 Hollenbach, “Modern Catholic Teachings Concerning Justice,” 214. 642 Groody, Globalization, Spirituality, and Justice, 110-11. 643 Rebecca T. Peters, In Search of the Good Life: The Ethics of Globalization (New York/London: The Continuum International Publishing Group, 2004), 29. 644 The strategic term concerned with beating the competition, increasing market share, enhancing quality, raising customer satisfaction, increasing efficiency, motivating performance, and maximizing shareholder wealth. It is based on how payment to a worker affects profits, productivity, and quality. Helen J. Alford and Michael J. Naughton, Managing As If Faith Mattered: Christian Social Principles in the Modern Organization (Notre Dame: University of Notre Dame, 2001), 126-28. 645 The idea of just wage or a living wage has been a consistent teaching of Catholic social teachings. Some references are: Rerum Novarum 20, Quadragesimo Anno 71-72, Mater et Magistra 71, Pacem in Terris 64, Gaudium et Spes, 67 and Laborem Exercens 19. socio-economic system.646 Pope Leo XIII argued that remuneration of a worker “must be
enough to support the wage earner in reasonable and frugal comfort.”647 Though there are
numerous explanations for Leo’s phrase “reasonable and frugal comfort,” in general we can
say that a person “must have sufficient goods and opportunities for the exercise of all his
[her] faculties and the development of his [her] personality.”648 The most prominent
American proponent of Leo’s analysis, John Ryan argues that the fundamental principles for the Church’s moral defense behind a living wage are: First, all persons have equal claims upon the earth because God intended the earth for the support of all persons. Second, this equal right is not absolute but conditioned by the universal obligation to perform a reasonable amount of useful labor. Third, all persons who are willing to work must have reasonable facilities to participate in the benefits of the earth by proper labor. So, the moral basis of the living wage is that all persons have an “indestructible right of access to the goods of the earth on reasonable terms.”649
In recent Catholic social teaching, an increased prominence is given to the right of
participation. Participation means involvement of people in a series of activities, “either as
an individual or in association with others, whether directly or through representation,
contributes to the cultural, economic, political and social life of the civil community to which
he belongs.”650 John Paul II further emphasized this idea by arguing that workers desire more
than due wages. He emphasized that a worker “also wishes that within the production
process provision be made for him to be able to know that in his work, even on something
that is owned in common, he is working ‘for himself.’”651 Thus, he proclaimed that a labor
system can be ‘intrinsically true and also morally legitimate’ (L.E. 13) only if it tries to
646 John Paul II, Laborem Exercens, no. 19. 647 Leo XIII, Rerum Novarum, no.34. 648 John A. Ryan, “A Living Wage,” in American Catholic Social Teaching, ed. Thomas J. Massaro and Thomas A. Shannon (Collegeville, Minnesota: The Liturgical Press, 2002), 51. 649 Ryan, “A Living Wage,” 53-54. 650 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 189. 651 John Paul II, Laborem Exercens, no.15. 195 realize the principle of worker-participation.652 The United States Catholic bishops
summarized the importance of participation by stating, “Basic justice demands the
establishment of minimum levels of participation in the life of the human community for all
persons.”653 As discussed in chapter one, in the current globalization the poor, the small-scale
rural farmers, illiterate and unskilled workers are marginalized as they are left out of adequate
participation in this high tech-controlled economy. Not only poor individuals but also poor
countries are marginalized as most of the economic decisions are made behind closed doors
by high-level powerful political and economic elite countries. The Church’s insistence on
justice as participation therefore challenges the marginalization of people and countries in our
globalized world.
The social justice framework proposed by Catholic social teaching may not provide
detailed and concrete answers to the complex and challenging problems of the current
globalization. However, it does provide some key principles of discernment and priorities that
should govern economic policies, institutions, trade agreements, and business interactions.
The fulfillment of the basic needs of the poor, increasing active participation of the
marginalized in economic life, social responsibility for the common good, concern for
individual dignity and solidarity with the poor should be the guiding values of economic
decisions, policies, priorities, and international economic institutions.654 Biblical justice, seen
as restoration of broken relationships, is concerned with the concrete reality of people,
especially those who are marginalized. It calls for denouncing structures that cause injustice and the exploitation of poor. It questions individualism and calls for solidarity with all people.655 John Paul II has emphasized the need for the virtue of solidarity to overcome
structural injustices. In his encyclical Sollicitudo rei Socialis he states, “The ‘evil
652 Miroslav Volf, “On Human Work: An Evaluation of the Key Ideas of the Encyclical Laborem Exercens,” Scottish Journal of Theology 37 (1984): 69. 653 U.S. Catholic Bishops, Economic Justice for All, no. 77. 654 Ibid., nos. 89-93. 655 Joerg, No Rising Tide, 137; Hollenbach, “Modern Catholic Teachings Concerning Justice,” 226 mechanisms’ and ‘structures of sin’ of which we have spoken can be overcome only through
the exercise of the human and Christian solidarity to which the Church calls us and which she tirelessly promotes.”656
1.4. The Preferential Love for the Poor
In the contemporary global context, where poverty and injustice are institutionalized,
the Church affirms that “this love of preference for the poor, and the decisions which it
inspires in us, cannot but embrace the immense multitudes of the hungry, the needy, the
homeless, and those without health care and, above all, those without hope of a better
future.”657 In the context of the scandalous poverty of Latin America, the Latin American
bishops at Medellin (1968) and Puebla (1979) conferences recognized that reading the signs
of the times entails a deep commitment to and with the poor. They argued that “human justice
and God’s justice demanded ‘the option for the poor’: that is, solidarity with the poor and
their struggle for emancipation.”658 Their unequivocal stand to be with the poor and to question evil social structures was influenced by John XXIII’s encyclical Mater et
Magistra.659 Confirming what the bishops had proclaimed, John Paul II declared that in the
case of structural sin, solidarity and the option or love of preference for the poor represent
necessary theological responses (SRS 38).
The Church’s commitment to social justice is not blind to the oppression and needs of
the poor.660 It takes sides with those who are excluded and marginalized.661 The biblical
656 John Paul II, Sollicitudo rei Socialis, no 40. 657 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 182; John Paul II, Sollicitudo Rei Socialis, no. 42. 658 Gregory Baum, “An Ethical Critique of Capitalism: Contributions of Modern Social Teaching,” in John Paul II and Moral Theology: Readings in Moral Theology, no.10, ed. Charles E. Curran and Richard A. McCormick, (New York/ Mahwah: Paulist, 1998), 239. 659 Dorr, Option for the Poor, 146. 660 The term poverty is a contested item. As there are different forms of poverty a question is raised over which poverty the Church is opting to address. While accepting the fluidity of the term as a generic term, it is important to understand it in its human, anthropological, and social depth. Thus, taken in its depth it expresses the denial and oppression of humanness, the contempt, voicelessness, hunger, and anonymity. Sobrino, No Salvation outside the Poor, 24. 661 Rieger, No Rising Tide, 136. 197 understanding of justice presents that “justice of a community is measured by its treatment of the powerless in society, most often described as the widow, the orphan, the poor, and the stranger (non-Israelite) in the land.”662 As Dorr argues, to make an option for the poor means
“a commitment by individual Christians and the Christian community at every level to
engage actively in a struggle to overcome the social injustices which mar our world.”663
The Church’s commitment to the poor is a moral demand, one based on the Bible. It is
not an idea that is based on some arbitrary social ideology. It is linked to her proclamation of
the good news of Jesus Christ and God’s universal love for all people. It is also based on her
social principle of the universal destination of earth’s created goods. This is clear in the
statement of Gaudium et Spes when it declares, “God intended the earth and all that it
contains for the use of every human being and people. … Whatever the forms of ownership
may be, … attention must always be paid to the universal purpose for which created goods
are meant.”664 Violation of this right held by poor people and countries demands
condemnation by the Church.
1.4.1. The Meaning and Roots of this Concept
The term preferential option for the poor, which was coined by liberation theology665 in the early 1970s and developed in Latin American Church, has become a widely embraced motif within the modern Catholic social tradition. Though the earlier Catholic social
662 U.S. Catholic Bishops, Economic Justice for All, no. 38. 663 Dorr, Option for the Poor, 3. 664 Gaudium et Spes, 69. 665 Liberation theology calls the Church to become the Church of the poor, which means the poor must determine her vision of God, world, doctrine and her theology, her mission, and her faith in God. Liberation theology also holds that it is important to reflect on what the poor can do for the Church. It is not just about giving to the poor, but also of receiving from them. It sees the poor as evangelizers of the Church. They evangelize the Church by their evangelical values, their openness to God, their solidarity and by their sense of community. Sobrino, “Communion, Conflict, and Ecclesial Solidarity,” 623-24; Sobrino, No Salvation outside the Poor, 52-53. The idea of ‘an option for the poor is present both in Medellin and Puebla Conferences. The Medellin documents, though did not use the concept ‘option for the poor,’ did proclaim “the Church of the Poor.” It recognized the need for the Church to give effective preference to the poorest and the most needy through solidarity with the poor and her commitment to struggle against injustice. The Puebla Conference adopted the phrase by entitling a chapter of its document ‘A Preferential Option for the Poor.’ Dorr, Option for the Poor, 207, 262. encyclicals did not use the term, “preferential option for the poor,” a special concern for the
poor and the powerless, has been a constant theme in the Catholic social encyclicals. Leo
XIII in his first social encyclical Rerum Novarum wrote, “there is no question whatever, that
some remedy must be found, and quickly found, for the misery and wretchedness which
presses so heavily at this moment on the large majority of the very poor.”666 The pope, by
taking a major step to intervene in defense of workers in the context of the Industrial
Revolution, firmly declared that the Church is not indifferent to the injustices against the
poor. He insisted that the Church intervenes directly in the interest of the poor for she desires
that the poor “should rise above poverty and wretchedness, and should better their conditions
in life; and for this it strives.”667 Rerum Novarum marks an important step toward putting the
Church on the side of the poor.668 This special concern for the poor is further developed and concretized in the subsequent social encyclicals of the Church.669
The term “preferential option for the poor,” though widely used in the Church today,
is not clearly defined. It has diverse meanings and connotations within the Catholic Church.
The Latin American bishops refer to it as a pastoral guideline that calls the Church to have
special solidarity with the poor. John Paul II described it as a moral principle that should
govern the use of goods by all people and should direct all Christians to solidarity with the
materially poor. For liberation theology, especially for Sobrino, it is hearing the cries of the
poor and the oppressed and reacting to the suffering by locating themselves with the poor and
empowering them to eliminate their suffering.670 Liberation theology identifies it not so much
with social charity, but rather with social justice and sees the poor as agents of social change.
666 Leo XIII, Rerum Novarum, no.2. 667 Ibid., 23. 668 Dorr, Option for the Poor, 14. 669 MM 124, 150, 157-74, PT 88, 96, 101, 103-107, GS 1, 29, 63-72, PP 12, OA 23, JW 77, SRS 42, and CA 57 are some of the references that show the Church’s special concern for the poor. Thompson, Introducing Catholic Social Thoght, 90-91. 670 Joseph Curran, “Mercy and Justice in the Face of Suffering: The Preferential Option for the Poor,” in Hope and Solidarity: Jon Sobrino’s Challenge to Christian Theology, ed. Stephen J. Pope (Maryknoll, New York: Orbis Books, 2008), 201. 199
It is a commitment to resist the structural injustice that marks our reality.
In Catholic social teaching there is a tension between, on one hand, the Church’s deep concern about the plight of the poor and, on the other hand, her desire to avoid disharmony and divisions within society and her understanding of society as organic. The Church seems to be hesitant to identify too closely with the interests of one particular group or prophetically announce a radical restructuring of the current socio-economic and political system.
Generally the popes stress the idea of cooperation between all sectors of society rather than supporting the grassroots movements to demand structural change. They normally envision social change from top down, which connotes the powerful and elite initiating social change for the poor as a result of change of their heart and voluntarily adopting compassion for the poor.671 Amidst the differences and tensions with regard to its meaning and approaches to address the issue of poverty, the Church firmly believes that the Gospel of the Beatitudes and her faith in Jesus clearly demand that the marginalized and poor in all cases should be the focus of her special concern.672
The term “preferential option for the poor” includes an indication that it is preferential
and not an exclusive or discriminatory option.673 It does not denote rejection and exclusion of
the affluent. Gustavo Gutierrez clarifies this when he explains that the “term preference
obviously precludes any exclusivity; it simply points to who ought to be the first – not the
only – objects of our solidarity.”674 At the same, time the term emphasizes that it requires an
ongoing, deep and voluntary involvement with the world of the poor. Therefore an option for
the poor “is not optional in the sense that a Christian need not necessarily make it, any more
than the love we owe every human being, without exception, is optional.”675 Option here
671 Dorr, Option for the Poor, 235-36; Himes, “Liberation Theology and Catholic Social Teaching,” 232-33. 672 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no 182. 673 John Paul II, Centesimus Annus, no. 57. 674 Gustavo Gutierrez, “Option for the Poor,” in Mysterium Liberationis: Fundamental Concepts of Liberation Theology, ed. Ignacio Ellacuria and Jon Sobrino (Maryknoll, New York: Orbis Books, 1993), 239. 675 Ibid., 240. means a conscious effort to change the existing social order by giving primacy to the most
vulnerable. The term ‘poor’ has various possible meanings. Here it is primarily understood as
material poverty. It involves those who lack basic goods that are necessary to live in human
dignity – food, shelter, clothing, adequate education, health care, and living wages. In other
words, the word poor refers to those individuals and groups whom society considers
insignificant and whose lives count for nothing in society.676 The preferential option for the
poor is ultimately about friendship. It is choosing to become friends of the poor.677
1.4.2. Biblical Roots
One can trace the roots of the ‘option for the poor’ back to the Scriptures. Throughout
Scripture, and particularly in the prophets, one can read God’s special concern for the
widows, the orphan, and the stranger.678
In the Hebrew Scriptures, God hears the cries of distress of the Hebrews, when they
fell into slavery in Egypt. God intervenes and saves them from their oppression.679 Thus, the
Exodus event in the Bible, as formulated in Deut 26:5-10, is a prototype of God’s concern for the poor and oppressed people. God intervenes not just to lighten their suffering without touching the oppressive structures; instead God removes the poor from their impoverishing situation and creates a new society out of them, which knows no poverty and exploitation.680
The prophets in the Hebrew Scripture clearly speak of Yahweh’s special concern for the anawim – the widow, the orphan, the stranger, and all who are economically poor. All four groups are linked “in the interconnection of poverty, powerlessness, and exclusion from the community and in the oppression they suffer at the hands of others.”681 Just as Yahweh
reached out to Israel to liberate them from their oppression, Yahweh commands that the
676 Groody, Globalization, Spirituality, and Justice, 196-97. 677 Gerald S. Twomey, The ‘Preferential Option for the Poor’ in Catholic Social Thought from John XXIII to John Paul II (Lewiston/Queenston/Lampeter: The Edwin Mellen Press, 2005), 29. 678 Himes, “Liberation Theology and Catholic Social Teaching,” 232. 679 Thompson, Introducing Catholic Social Thoght, 89. 680 Lohfink, Option for the Poor, 27, 32. 681 Kammer, Doing Faithjustice, 27. 201 liberated Israelites ought to show mercy and love for the poor. For example, the prophet
Isaiah condemns those who observe rites of worship but fail to perform works of justice and mercy (Isaiah 58:1-7). 682 Thus, God wills that the liberated Israelite community must
become a divinely-willed contrast-society to all other existing societies. As chapter 25 of the
book of Leviticus demonstrates, loving the poor means not to develop structures that exploit
the poor. Whenever Israel forgets to respond to the cries of the poor and abuses its power to
oppress the poor, the prophets rebuke them with strong words. The prophets fight for the
protection of the vulnerable.683 The Bible also insists that love for the poor requires advocacy
for poor people. A king in the Hebrew Scriptures is judged good if he stands up for the poor
and defends them. For example, King Josiah is judged as a good king because he defended
the poor (Jer. 22:16).
Jesus’ teaching – his inaugural speech in Nazareth, his beatitudes, his parables, his
vision of the reign of God in his parable of the last judgment, and his actions -- sharing
fellowship with public sinners, tax collectors, outcasts, women and healing the sick, lepers,
and blind testify that he had special love and commitment to the poor and the marginalized.
His central vision of establishing the Kingdom of God is a symbol of the establishment of
God’s rule of justice, peace, and love on the earth.684 The Kingdom of God that Jesus
proclaimed is God’s all-embracing love that radically includes everyone, especially those
whom the world rejects. This all-embracing love for the poor prompts Jesus to challenge all
evil forces, laws, and structures that oppress human dignity and perpetuate inequality.685
The theological reason for the Church’s love for the poor is not the poor themselves, but God, who favors and loves the poor.686 The Beatitudes of Jesus, his identification with
682 Til, “Human Nature and Human Needs in Recent Economic Theory,” 69-71. 683 Groody, Globalization, Spirituality, and Justice, 38-39. 684 Kammer, Doing Faithjustice, 48-50. 685 Groody, Globalization, Spirituality, and Justice, 52. 686 Gutierrez, “Option for the Poor,” 240. Poverty in the bible is a many-sided concept. It means not only a lack of material goods but also oppression, incapacity, illness, suffering, and so on. The Scriptures indicate that the the poor, and his attention and compassion for the poor and outcast are foundations and
inspirations for the Church’s special love for the poor.687 It is also a criterion for knowing
God’s sure presence, which Jesus himself laid out when he proclaimed that “feeding the
hungry, clothing the naked, and visiting the sick and imprisoned is the privileged place for us
to find and come to know Jesus.”688 The Bible reveals that forgetting the poor is a sign of
dismissing the truth that creation is a generous gift of God and that God dwells in the midst of
God’s people with deep concern for their well-being. Forgetting the poor, therefore, leads to
forgetting God, the giver of creation to humankind as a gift of love, and also forgetting that
we are interconnected with God and with one another.689
1.4.3. Implications for the Contemporary Context
A Christian option for the poor is more than mere compassion for poor people or
some sizable monetary donation by the rich to aid the poor, thus making the poor the objects
of their charity. Rather, it strives to unmask and denounce “the structures of sin, the idols of
this world – the accumulation of wealth, the security of States – and by anathematizing the
ancient and modern wielders of all kinds of power …”690 The goal is to create a more just
society in solidarity with the poor.691 Concretely, an option for the poor involves taking a
prophetic stand against structural injustices, not as an outsider but, as the bishops in Medellin
stated, in being in solidarity with the poor. This implies that the Church makes the struggles and problems of the poor her own.692
Standing with the poor means to see and judge the world from the perspective of the
poor are defenseless and cry to God for help. Til, “Human Nature and Human Needs in Recent Economic Theory,” 72. 687 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 184. 688 Kammer, Doing Faithjustice, 133. 689 Ibid., 28. 690 Jon Sobrino, “Communion, Conflict, and Ecclesial Solidarity,” in Mysterium Liberationis: Fundamental Concepts of Liberation Theology, ed. Ignacio Ellacuria and Jon Sobrino (Maryknoll, New York: Orbis Books, 1993), 623. 691 Dorr, Option for the Poor, 3. 692 Second General Conference of Latin American Bishops, “The Church in the Present-Day Transformation of Latin America in the Light of the Council,” no. 14.10, in Liberation Theology: A Documentary History, ed. Alfred T. Hennelly (Maryknoll, New York: Orbis Books, 1990), 116-17. 203 poor. Standing with the poor transforms the Church; it affects the priorities and judgments of the Church about economic, social and political realities, even though it may not specify a particular action.693 The option for the poor has three dimensions: First, to see reality from
the perspective of the poor; second, the needs of the poor should be the main concern while
contributing to the common good; and third, to develop strategies to empower the poor so
that they become agents of their own liberation.694
First, the option for the poor affects the Church’s process of seeing. It enables her to
see that sin and injustice are more widespread, systematic, and more destructive than they
might appear. It helps her to perceive that poor people do not take life for granted.695 It also
helps the Church to move from mere sympathy for the poor toward solidarity with them in
their struggles to overcome the structures of oppression and marginalization.
Second, it enables the Church to analyze and judge economic development and international trade policies and agreements based on their impact on the lives of the poor. The
U.S. bishops, affirming what John Paul II had said, confirm this when they state, “The needs of the poor take priority over the desires of the rich; the rights of the workers over the maximization of profits; the preservation of the environment over the uncontrolled industrial expansion.”696 Thus, the Church declares, “The fundamental moral criterion for all economic
decisions, policies, and institutions is this: They must be at the service of all people,
especially the poor.”697
Third, seeing and analyzing a reality from the perspective of the poor compels some
concrete prophetic actions. The works of Jesus among the poor were not only about a promise
of life beyond this earth, but also involved real and historical works of liberation from their
693 Kammer, Doing Faithjustice, 151-52. 694 Kenneth R. Himes, Responses to 101 Questions on Catholic Social Teaching (New York/Mahwah: Paulist Press, 2001), 39-40; Dorr, Option for the Poor, 2. 695 Dean Brackley, “Theology and Solidarity: Learning from Sobrino’s Method,” in Hope and Solidarity: Jon Sobrino’s Challenge to Christian Theology, ed. Stephen J. Pope (Maryknoll, New York: Orbis Books, 2008), 6. 696 U.S. Catholic Bishops, Economic Justice for All, no.94. 697 Ibid., no. 24. oppression.698 The option for the poor involves at least three actions by the Church: First,
unmasking the evil structures that are the root causes of poverty and misery in our globalized
world. Second, making a decisive and conscious choice to stand in solidarity with the
marginalized and excluded people of society. This implies an ongoing and conscious
commitment to stand with the poor. Third, as the Medellin bishops’ conference documents
recognize, it involves empowering the poor to speak for themselves against injustices and to
become agents of their liberation. It requires conscientization at the grassroots and
stimulating an action for justice from bottom-up. The Church needs to support the poor as
they strive to become the conscious and active agents of their own integral development and
liberation.699 Pope Paul VI in his social Apostolic Letter Octogesima Adveniens indicates that
an option for the poor demands the political empowerment of the poor, who cannot be merely
the recipients of justice but must be active agents of justice. He insists that the participation
of the poor in the decision-making process is absolutely necessary for the creation of
substantive social justice.700
2. Humanizing Globalization: Integral and Authentic Development
A key response to current economic problems, modern Catholic social teaching
proclaims, is an integral and authentic human development. This is emphasized strongly by
Benedict XVI in his encyclical Caritas in Veritate, John Paul II in Sollicitudo rei Socialis,
Paul VI in Populorum Progressio, in Gaudium et Spes, and John XXIII in Mater et Magistra.
It is based on a vision of Christian humanism701 that emphasizes an unfolding of the ever
698Ellacuria, “The Church of the Poor, Historical Sacrament of Liberation,” 559-60. 699 Dorr, Option for the Poor, 208. 700 Christine E. Gudorf, “Commentary on Octogesima Adveniens (A Call to Action on the Eightieth Anniversary of Rerum Novarum),” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes et al. (Washington, D.C.: Georgetown University Press, 2004), 323. 701 Christian humanism sees all things in the light of God’s revelation in Jesus Christ. It assumes that the human person is created by God in God’s image, wounded by sin, yet redeemed in Jesus Christ. Its vision of human betterment involves the healing of the human conditions and the created order from the effects of sin. It also reminds Christians of their vocation as stewards of the created order here and now. John P. Bequette, Christian Humanism: Creation, Redemption, and Reintegration (Dallas/Lanham/Boulder/New York/Oxford: University 205 greater depths and ranges of human capacities.702 Based on her teaching on the primacy of
human dignity, the Church argues that the development of each person and of the whole
person is an antidote to the world’s poverty and marginalization.703
The Church teaches that, to overcome global poverty and marginalization, the world
needs more than mere economic growth. Though she does not ignore the importance of
economic development as she is aware of its importance for human flourishing, nevertheless
she insists that an authentic development must also include spiritual, political, cultural, and
moral considerations.704 The primary purpose of an authentic development, the Church
argues, is complete humanism (Populorum Progressio 42). She believes that human nature is
multifaceted, which includes personal, cultural, economic, political and religious dimensions.
Therefore, the protection of human dignity requires attention to various dimensions of the
person and not only to her or his material growth. It requires, besides satisfying the basic
material goods, opportunities to preserve one’s creativity, to pursue one’s vocation, to follow one’s conscience, to own property, and to develop personal intelligence.705 Pope Benedict
XVI argues that authentic development can take place “not by merely technical progress and
relationships of utility, but by the potential of love that overcomes evil with good (cf. Rom
12:21).”706
Moreover, authentic development should be aimed not only at the development of an
individual person but also the development of the whole human family. Hence, it must also
include concern and service of other people, respecting their dignity, cultures and right to
own and use the common goods of the earth.707
Press of America, 2004), Xi. 702 Drew Christiansen, “Metaphysics and Society: A Commentary on Caritas in Veritate,” Theological Studies 71 (2010): 11. 703 Thompson, Introducing Catholic Social Thoght, 95-96. 704 Alford, Managing As If Faith Mattered, 73; Curran, The Moral Theology of John Paul II, 211. 705 Renee Formicola, Pope John Paul II: Prophetic Politician (Washington: Georgetown University, 2002), 82. 706 Benedict XVI, Caritas in Veritate, 9. 707 Peter J. Henriot, “Who Cares about Africa? Development Guidelines from the Church’s Social Teaching,” in Pope Paul VI stands as a central figure in the modern Catholic tradition in
articulating a broader notion of development in the Church. He stressed the essential link between Christian humanism and development. In his great encyclical Populorum
Progressio, adopting the broader humanistic ideas of Louis-Joseph Lebret, Barbara Ward,
and others who had refused to identify development with growth in productivity or export
sales,708 he emphasized that the proper response to the global reality is integral development.
He proposed that a vision of man and society could not be reduced to economic aspects
alone. He argued that integral development “has to promote the good of every man and of the
whole man.”709 He did not dismiss the importance of material well-being. Rather, as David
Hollenbach rightly points out, though he clearly insists that the economic dimension cannot
be the sole criterion of integral development, he is “equally clear that the improvement of
material conditions is an essential aspect of this development.”710 Economic well-being does
become a positive value to human dignity when it includes other key elements, such as
cultural, social, moral, interpersonal, spiritual, environmental, emotional, bodily, aesthetic,
and cognitive dimensions of the human person and society. The ultimate purpose of
development is the growth of the fullness of humanity.711
Against an individualistic understanding of development, Paul VI insisted that
authentic human development can take place only in society and in solidarity. There has to be
a proper balance between personal and communal development in order that development
becomes integral and authentic. He argued that “there is a correlation between the destitution
of some and the moral deficiency of others. Oppression by social structures is linked with
Catholic Social Thought and New World Order: Building on One Hundred Years, eds. Oliever F. Williams and John W. Houck (Notre Dame: University of Notre Dame Press, 1993), 211-228. 708 Himes, “Globalization with a Human Face”: 274. 709 Paul VI, Populorum Progressio: On the Development of Peoples, no. 14. 710 Hollenbach, Claims in Conflict, 79. 711 Allan Figueroa Deck, “Commentary on Populorum Progressio (On the Development of Peoples),” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes et al. (Washington, D.C.: Georgetown University Press, 2004), 298-99, 305; Hollenbach, Claims in Conflict, 82. 207 absence of respect for human dignity.”712 Thus he insisted that, besides attaining self- fulfillment, self-sacrifice, mutual respect for dignity and freedom, cooperation for the common good and a will for peace are essential aspects of integral development.713 Hence, he
stated, “There can be no progress toward the complete development of man without the
simultaneous development of all humanity in the spirit of solidarity.”714 This places certain
moral obligations on rich people and nations. The rich nations must work to build solidarity
with other nations and build “a more humane world community, where all can give and
receive, and where the progress of some is not bought at the expense of others.”715
Paul VI has given us principles and norms of discernment in developing and directing
economic systems, which are “an expression in thought of the reality of human dignity.”716
His critical and structural analysis of poverty and hunger in the world and his stress on the need for structural transformation to overcome them have encouraged others to further nuance the Church’s understanding of development.717 For example, John Paul II, developing the idea of integral development, said that an authentic and integral development
“must be achieved within the framework of solidarity and freedom, without ever sacrificing either of them under whatever context.”718 Benedict XVI in his first social encyclical affirms
Paul VI’s idea of authentic human development and says that it should involve “the principles
of human rights, the option for the poor, and an ethic of solidarity and fraternity,
participation, and social justice.”719 The pope demands that, in order to achieve integral
human development, greed must be replaced with a sense of gratuity and the common good.
He argues that the primary purpose of business should be to create a society that is conducive
712 Hollenbach, Claims in Conflict, 80. 713 Dorr, Option for the Poor, 182. 714 Paul VI, Populorum Progressio, no.43. 715 Bernard V. Brady, Essential Catholic Social Thought (Maryknoll, New York: Orbis Books, 2008), 139. 716 Hollenbach, Claims in Conflict, 84. 717 Sniegocki, Catholic Social Teaching and Economic Globalization, 135. 718 John Paul II, Sollicitudo Rei Socialis, no.33. 719 Thompson, Introducing Catholic Social Thoght, 95. to human flourishing.720
The notion of integral development, which is proposed in Catholic social teaching, can challenge the neo-liberal model of development. It implicitly rejects the neo-liberal approach and the notion that increasing the production of material goods through the free market system can solve global poverty. The modern Catholic social tradition provides a larger moral framework to develop an authentic human development.721 This framework is
very similar to the one suggested by Amartya Sen and Joseph Stiglitz, which I discussed in
chapter two. It provides a positive scope for the Church to engage in dialogue with people of
good will and to exchange insights to develop a more integral and fair model of development
to our globalized world. We need to rediscover an economy that not only enforces stringent
rules for efficiency and productivity but also one that is concerned about the conditions of the
input, such as good and healthy conditions of land, labor, capital, and the environment.722
The Church’s integral development suggests that “development demands bold transformations, innovations that go deep. Urgent reforms should be undertaken without delay.”723 The Church’s vision of integral development requires structural reforms of the
current economic system, “which considers profit as the key motive for economic progress,
competition as the supreme law of economics, and private ownership of the means of
production as an absolute right that has no limits and carries no corresponding social
obligation.”724 It also demands a greater role of the state to ensure that all people have a
share in the goods of the earth and that there is a greater participation of the poor in deciding
the direction of development.725 Hence, an integral development, which is based on social
justice, demands not only conversion of individual hearts and attitudes, but also
720 Ibid., 96-97. 721 Deck, “Commentary on Populorum Progressio,” 304. 722 Bob Goudzwaard, “Economic Growth: Is More Always Better?,” in Economic Justice in a Flat World: Christian Perspectives on Globalization, ed. Steven Rundle (Colorado Springs: Paternoster, 2009), 337-38. 723 Paul VI, Populorum Progressio, no. 32. 724 Ibid., no. 26. 725 Sniegocki, Catholic Social Teaching and Economic Globalization, 125. 209 transformative social conversion.
The Church’s concept of authentic and integral development is founded on certain
Christian values and principles: human dignity, the common good and solidarity. I will develop each of them in the following section and argue that the process of humanizing the current globalization should prioritize these values as its bedrock values.
2. 1. Human Dignity as the Measuring Yardstick
The Church affirms and upholds the irreducibility of the dignity of the human person
and the primacy of the person above all other things. It strives to defend and protect the
sacred and social nature of the person whenever it is threatened and destroyed by evil forces
in society. Therefore, John Paul II in his encyclical Centesimus Annus ardently proclaimed,
“the main thread and, in a certain sense, the guiding principle of Pope Leo’s encyclical, and
of all the Church’s social doctrine, is a correct view of the human person and of the person’s
unique value…”726 The Catholic social tradition proclaims that respect for human dignity,727 which is experienced in community, should be the foundational value to measure any aspect of economic life. “Man is the primary and fundamental way for the Church, the way traced out by Christ himself” (R.H. 14.1). In our context of globalization that has reduced human value and worth to market utility and accumulated possessions, the Church reaffirms that human life is fundamentally sacred and social. It asserts that economic life, market choices, and economic institutions must be guided with the main purpose of protecting and promoting the dignity of the human person, especially of the poor and vulnerable.728 The Church is
convinced that “attainment of a proper understanding of the human person is essential if we
are to develop political, economic, and cultural institutions that will promote the authentic
726 John Paul II, Centesimus Annus, no.11. 727 Dignity refers to “the inherent value of the person, as a ‘someone’ and not merely ‘something,’ and this confers an absoluteness not found in other beings.” Williams, Who is My Neighbor, 118. 728 The metaphor ‘created in the image of God’ (imago Dei) is found exclusively in the so called ‘primitive history’ of the book of Genesis (1:26-27; 5:1; 9:6). Brady, Essential Catholic Social Thought, 11; Collins, The Moral Measure of the Economy, 22. development of humankind.”729
Founded on Thomistic personalism,730 the Catholic social tradition emphasizes the
“basic dignity of the human being, who is an image of God through reason and the power of
self-determination.”731 It asserts that the Church’s understanding of the human person is
“theocentric.” The dignity of the human person flows from the relationship between God and
the person and not as a result of some qualities or material possessions that a person
possesses.732 Therefore, human dignity is transcendental in character and all people, as God’s
creatures, possess it independent of their material wealth, political and social status in society,
race, class, nationality, gender, intelligence, religion, culture, and language. It exists wherever
a human person exists.733 It cannot be reduced to a calculus of utility and disutility. This
teaching has at least two important assertions: First, all human persons have dignity and it is
not something that is granted by other people or by institutions, including governments.
Second, it exists in all situations claiming respect and recognition from others. Hence, the
Church asserts that “everyone must consider his every neighbor without exception as another
self, taking into account first of all his life and the means necessary to living it with
dignity.”734
729 Himes, “Globalization with a Human Face”: 274. 730 Personalism has no single and universally accepted definition. It can be applied to “any school of thought or intellectual movement that focuses on the reality of the person (human, angelic, divine) and on his unique dignity, insisting on the radical distinction between persons and all other beings (nonpersons).” Williams, Who is My Neighbor?, 108. The distinctive characteristics of personalism are: the person is distinct from other creatures, an affirmation of the dignity of the person, the human person is a rational subject, the person as object of human action and therefore should be treated as an end and never as a mere means, and particular regard to the social (relational) nature of the person. Ibid., 118. 731 Charles E. Curran, Catholic Social Teaching 1891-Present: A Historical Theological, and Ethical Analysis (Washington, D.C.: Georgetown University Press, 2002), 67. 732 Lucas Thumma, “Human Person, Human Dignity and Human Society: Biblical Foundations and Theological Perspectives in the Social Teaching of the Church.” Indian Theological Studies 39 (2002): 220. 733 Hollenbach, Claims in Conflict, 90. 734 Gaudium et Spes, no. 27. 211
2.1.1. The Human Person as Sacred
The human person as sacred and social by nature is a constant theme in all the major
social doctrines of the Church.735 With the Second Vatican Council, the Catholic social tradition has moved from its strongly natural law basis to a more theological and historical
consciousness in defending human dignity. Gaudium et Spes, basing its understanding of
human dignity on the ‘imago Dei’ metaphor and on Christ, portrays human dignity “as the
grounding of the whole teaching by making this phrase the title of its very first chapter.”736 J.
Bryan Hehir aptly summarizes the shift in this short statement, “Gaudium et Spes roots
human dignity in theological soil.”737
The Church’s strong emphasis on the primacy of human dignity and its social nature are
founded on the interpretations of the biblical metaphor ‘imago Dei,’ as found in Genesis
1:26-28.738 The etymology of ‘imago’ derives from the Hebrew word tselem, which means
‘to carve’ or ‘to cut’. Hence, the metaphor imago indicates a reproduction or an artistic representation that is either cut or engraved in wood, stone or on some other material.739 The
human being is presented as God’s representative who continues to preserve and maintain the
God-made world.740 The biblical verse, “Let us make humankind in our image, according to
our likeness; and let them have dominion over the fish of the sea…and over every creeping
thing that creeps upon the earth.” (Gen. 1:26), presents a special relationship of God with human beings. It reveals that the human being is a unique creature with extraordinary dignity
735 Hollenbach, Claims in Conflict, 109, 71. Also see Thompson, Introducing Catholic Social Thoght, 58. 736 Curran, Catholic Social Teaching 1891-Present, 75. Also see Thumma, “Human Person, Human Dignity and Human Society”: 237. 737 J. Bryan Hehir, “John Paul II: Continuity and Change in the Social Teaching of the Church,” in Official Catholic Social Teaching, Readings in Moral Theology, no.5, ed. Charles E. Curran and Richard A. McCormick (New York: Paulist, 1986), 131. 738 Willem A.M. Beuken, “The Human Person in the Vision of Genesis 1-3: A Synthesis of Contemporary Insights,” Louvain Studies 24 (1999): 5. Also see Goran Collste, Is Human Life Special?: Religious and Philosophical Perspectives on the Principle of Human Dignity (Bern/Berlin/Bruxelles/Frankfurt/New York/Wien: Peter Lang, 2002), 32. 739 John Peters Sandanam, “In His Image after His Likeness: From the Perspective of Gaudium et Spes,” Indian Theological Studies 40 (2003): 242. 740 Beuken, “The Human Person in the Vision of Genesis 1-3,” 8. and that the human person is “the only creature on earth God has wanted for its own sake.”741
The metaphor ‘image of God’ also reveals that the intrinsic value and worth of the
human person is a divine gift and it is not earned by human merits. The explanation of the
“image of God also brings out a profound relationship between the human person and God,
between human person and with human community, and between human persons and the
world.”742 Therefore, it gives a theological foundation for the Church’s emphasis on the social nature of the human person. It argues that the human person as a relational being can realize the fullness of his or her being as a person only in mutual relationship with God and with one another.743
The metaphor ‘imago Dei’ envisions at least four characteristics of the human person:
“self-knowledge, self-possession, communion with others and covenant with God.”744 The
human person possesses self-knowledge and this enables a person to act with genuine
freedom and responsibility.745
The Christian anthropology is also Christological. The Incarnation of Christ reaffirms
and even intensifies human dignity.746 The fact that God chose to reveal God’s self to
humankind in the form of a human being confirms that God holds human persons in high
esteem.747 The relevance of this Christological dimension to human dignity is not merely that
“Christ is seen as adding something on humanity or merely rescuing the human race from sin.
It is more profound than that…it is in Christ that we learn what it really means to be human.”748 John Paul II in his first encyclical Redemptor Hominis declares that Christ is the
full revelation of human dignity. He states, “in Christ and through Christ, man has acquired
741 Gaudium et Spes, no. 24. 742 Sandanam, “In His Image after His Likeness” : 249. 743 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, nos. 108-10. 744 Bequette, Christian Humanism, 9. 745 Roger Ruston, Human Rights and the Image of God (London: SCM Press, 2004), 55. 746 James P. Scullion, “Creation-Incarnation: God’s Affirmation of Human Worth,” in Made in God’s Image: The Catholic Vision of Human Dignity, ed. Regis Duffy and Angelus Gambatese (New York/ Mahwah: Paulist, 1999), 14. 747 Williams, Who is My Neighbor?, 215. 748 Dorr, Option for the Poor, 272. 213 full awareness of his dignity, …, of the surpassing worth of his own humanity, and of the meaning of his existence.”749The mystery of Incarnation reveals that every human being
possesses dignity and must discover its fullness in Christ, which humanity has lost due to
sin.750
God’s creation is a continuing process and so is the human person. The human person
should be seen as dynamic and not static. Though all human beings have been blessed with
human dignity by virtue of their birth as human beings, each person has to grow toward its
fullness. It has both present actuality and future potentiality. Both these aspects -- the already
attained and its dynamic aspects -- are important in order to respect and cooperate with each
other to facilitate the fuller realization of the dignity of each. The dynamic dimension of the
human dignity is an invitation by God to all people to contribute to each other to achieve the
fullness of life.751
2.1.2. The Human Person in Communion
The imago Dei metaphor demonstrates the social nature of the human person,
entailing social obligations and responsibilities. The Church’s Trinitarian understanding of
God presents the human person, as an image of this God, as a being in communion, as
persons-in-community, in co-operation and not as isolated individuals. This Christian vision
of the human person promises to provide a moral vision to an economic model that strives to
serve the well-being of all people and to create opportunities to participate and enjoy the
benefits of economic growth by all people, especially the poor.752
The Church teaches that “God did not create man a solitary being. From the beginning
he created them as ‘male and female’ (Gen 1:27). …Because of this fact, by his very
749 Redemptor Hominis, no. 11.3. 750 Bequette, Christian Humanism, 30-31. 751 Fraser Watts, “Human Dignity: Concepts and Experiences,” in God and Human Dignity, ed. R. Kendall Soulen and Linda Woodhead (Grand Rapids, Michigan/Cambridge, U.K.: William B. Eerdmans Publishing Company, 2006), 249-51. 752 Thumma, “Human Person, Human Dignity and Human Society”: 219. innermost nature man is a social being; and if he does not enter into relations with others he
can neither live nor develop his gifts.”753 Social life is therefore a natural characteristic of the
human person, which is willed by God. All human beings are a set of relationships: with God,
with one another, with self, and with all creation. The relationships with other human beings
are based on equality and reciprocity and with non-human creation on stewardship.754 The
creation story in Genesis 1:26-27 teaches that the first man and woman in their
complementarities and reciprocity reflect the image of Trinitarian Love.755 The understanding
of the human person as a social being “lends itself to a view of community as natural and
necessary if persons are to achieve their full stature.”756 Therefore community is not an option for the human person; rather it is an expression of the basic unity of humankind.
“These beliefs have shaped CST to such an extent that a consistent theme is this: ‘human dignity can be realized and protected only in community.’”757
The theological reason for the interrelated communitarian nature of the human person
is clearly the Christian belief that the human person is an image of the Trinitarian God. It is
the God in loving communion of three co-equal, co-divine, and co-eternal persons. The
Compendium of the Social Doctrine of the Church declares that “to be human means to be
called to interpersonal communion, because the image and likeness of the Trinitarian God are
the basis of the whole of ‘human ethos.’”758
The social nature of the human person indicates that mutuality and not individuality is
753 Gaudium et Spes, no. 12. This idea was developed by Cappadocian Fathers based on their Trinitarian theology. They said that as God is communion, we as persons cannot exist in isolation. “It is the other and our relationship with him that gives us our identity, our otherness, making us ‘who we are,’ i.e. persons.” John D. Zizioulas, “The Doctrine of the Holy Trinity: The Significance of the Cappadocian Contribution,” in Trinitarian Theology Today: Essays on Divine Being and Act, ed. Christoph Schwobel (Edinburgh: T7T Clark, 1995), 56. 754 Christoph Schwobel, “Recovering Human Dignity,” in God and Human Dignity, ed. R. Kendall Soulen and Linda Woodhead (Grand Rapids, Michigan/Cambridge, U.K.: William B. Eerdmans Publishing Company, 2006), 47. Also see Ruston, Human Rights and the Image of God, 279. 755 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 36. 756 Himes, Responses to 101 Questions on Catholic Social Teaching, 25. 757 Himes, “Globalization with a Human Face”: 276. 758 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 33. 215 the defining characteristic of the human person.759 It presupposes cooperation, solidarity, sharing and caring for each other as essential aspects of being a human person. The truth that human dignity is realized in community implies creating adequate opportunities for all people to participate in the common good and to exercise their responsibilities in social, economic, political, cultural, and educational life.760 The 1971 Synod of Bishops recognized that in the
context of rapid economic and technological growth the chief threat to personal dignity is the
exclusion of large segments of the population from any active participation in shaping social
structures and institutions. Participation in the process of social change and economic
development is regarded as an important condition for the realization of all human
potentialities. Hence, they argued that “lack of participation becomes the primary criterion for
judging if human dignity is being violated.”761
The Church’s assertion that the human person is an image of God with inherent
dignity and interrelatedness asserts at least four things: 1. All human persons possess some
fundamental basic rights, 2. All persons have obligations and responsibilities for society, 3.
All persons with a rational soul and freedom are moral agents, 4. All human beings have a
natural inclination and longing for God as their ultimate end.762 In modern Catholic social
teaching, human dignity is intimately connected with human rights. The Church teaches that
the ultimate source of human rights is God, the creator. Therefore she regards human rights
as “universal, inviolable, inalienable.”763 Gaudium et Spes teaches that, though there are differences among human beings with regard to their physical, intellectual, or even moral resources, these differences must not be used as a justification to discriminate against human beings with regard to their fundamental human rights. Such discriminations, the Council
759 Gerard Mannion, “Working and Being: Social Justice and a Theology for Workers,” in Catholic Social Justice: Theological and Practical Explorations, ed. Philomena Cullen, Bernard Hoose, and Gerard Mannion (London/New York: T&T Clark, 2007), 93. 760 Curran, Catholic Social Teaching 1891-Present, 77-78. 761 Hollenbach, Claims in Conflict, 86. 762 Clark, “Economic Life in the Catholic Social Thought and Economic Theory,” 82. 763 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 153. argues, are contrary to God’s intent.764 Human rights “give specificity to the language of
human dignity; they articulate the freedoms, the goods, and the relationships that are
expressive of a person’s dignity.”765 Thus, the human rights tradition in the Catholic Church
is a continuing endeavor to specify the concrete conditions for the realization of human
dignity in action.766 The Church believes that human rights offer an extraordinary opportunity
for more effective recognition of human dignity and therefore she has become an important
champion in promoting and protecting the basic rights of all people.
2. 2. Solidarity
Pope Paul VI stated that “[T]here can be no progress toward the complete
development of man without the simultaneous development of all humanity in the spirit of
solidarity.”767 Solidarity means, the pope asserted, that the rich nations must be concerned
about the poor nations. He spelled out the threefold obligation of rich nations: giving aid to developing countries, establishing fair and equitable trade relations between developed and developing nations, and the effort to bring about a world where all human beings are included in the progress.768 Continuing the importance of solidarity to address the current problems of
our world, John Paul II proposed that solidarity is a solution to the existing economic systems769 that are based on the “all-consuming desire for profit and the thirst for power, with
the intention of imposing one’s will upon others.”770 The Church firmly proclaims that, unless individuals and nations recognize that they are interconnected with each other, there cannot be an authentic development. To transform the evil structures of our current globalized world and to create a more just and equal society, we need what John Paul II
764 Gaudium et Spes, no. 29. 765 Himes, “Commentary on Justitia in Mundo,” 343. 766 Hollenbach, Claims in Conflict, 91. 767 Pope Paul VI, Populorum Progressio, no. 43. 768 Ibid., no. 44. 769 John Paul II, Centesimus Annus, no 49; Sollicitudo rei Socialis, nos.38-39. 770 Clifford Longley, “Structures of Sin and the Free Market: John Paul II on Capitalism,” in The New Politics: Catholic Social Teaching for the Twenty-First Century, ed. Paul Vallely (London: SCM, 1998), 103. 217 referred to as, “a globalization of solidarity.”771 Developing further this idea in his 2000
World Day of Peace Message he said,
there will be peace only to the extent that humanity as a whole rediscovers its fundamental calling to be one family, a family in which the dignity and rights of individuals – whatever their status, race or religion – are accepted as prior and superior to any kind of difference or distinction. This recognition can give the world as it is today - marked by the process of globalization -- a soul, a meaning and a direction. Globalization, for all its risks, also offers exceptional and promising opportunities, precisely with a view to enabling humanity to become a single family, built on the values of justice, equity and solidarity.772
Solidarity in Catholic social teaching is about interdependence of people that are more
equal and reciprocal, which respects the dignity of all persons as agents.773 In the current
context of growing individualism and unequal interdependence, where the poor are
subordinated to the rich, the social principle of solidarity becomes a counter virtue to
individualism, atomism, and the fragmentation of human life. It demands moral obligations
from individuals and nations for the common good.774
2.2.1. Solidarity as a Virtue
Since the Second Vatican Council the social principle of solidarity has become a
prominent social principle in the modern Catholic social tradition. It highlights the intrinsic
social nature of the human person, the equality of all persons in their dignity and rights, and a
common path for unity among individuals and nations.775 The theological basis for the
principle of solidarity in the Catholic social tradition is the doctrine of the Trinity. The
mystery of Trinity reveals that a strong communion of Three Persons is at the heart of the
771 John Paul II, Ecclesia in America, no. 55 (Washington: United States Catholic Conference, 1999). http:// www. catholic-pages.com/documents/ecclesia_in_america.pdf (accessed May 20, 2011). 772 John Paul II, "Peace on Earth to Those Whom God Loves," World Day of Peace Message (January 1, 2000) no. 5, http://www.vatican.va/holy_father/john_paul_ii/messages/peace/documents/hf_jp-ii_mes08121999 xxxiii- world-day-for-peace_en.html (accessed May 20, 2011). 773 Hollenbach, The Common Good and Christian Ethics, 187. 774 Uzochukwu Jude Njoku, Examinig the Foundations of Solidarity in the Social Encyclicals of John Paul II (Frankfurt: Peter Langh, 2006), 59. 775 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 192. divine mystery.776 The Church argues that, as an image of the Triune God, each human
person must be committed to the good of one’s neighbor and to the common good.
John Paul II, in his encyclical Centesimus Annus, claims that the principle of
solidarity is one of the fundamental principles of Catholic social teaching. Though the term
“solidarity” is not explicitly used in the earlier social encyclicals, nevertheless the idea is very
much present and expressed in various terms in the encyclicals. For example, Leo XIII used
the term friendship or social harmony, Pius XI referred to it as social charity, and Paul VI as
civilization of love with an identifiable meaning.777 However, with John Paul II it received a
special and explicit elaboration in Catholic social tradition. With its repeated invocation in his
encyclical Sollicitudo rei Socialis it became a central and foundational part of Catholic social
teaching.778 He uses the term solidarity with diverse meanings: ‘a duty’ (Sollicitudo rei
Socialis 9), ‘a principle’ (CA10.3), ‘a virtue’ (SRS 38, 40), and an attitude. However, he holds that solidarity as a virtue should receive primacy.779 He defines solidarity not as a
vague compassion or shallow distress at the misfortunes of many people, but as “a firm and
persevering determination to commit oneself to the common good…because we are really responsible for all”780 David Hollenbach contends that solidarity, as a virtue, is not simply an
affective sensitivity to the needs of others, but it “also calls for an intellectual recognition that
interdependence is a necessary quality of human existence and that this interdependence must
be reciprocal if the equal human dignity of the participants is to be respected in action.”781
The Christian understanding of solidarity as a moral virtue radicalizes the ethical
understanding of solidarity. Solidarity as a virtue prompts human beings to transcend
776 Himes, “Globalization with a Human Face”: 276. 777 John Paul II, Centesimus Annus, no. 10; Mater et Magistra, no. 65. 778 Charles E. Curran, Kenneth R. Himes, and Thomas A. Shannon, “Commentary on Sollicitudo rei Socialis (On Social Concern), in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes et al. (Washington, D.C.: Georgetown University Press, 2004), 426. 779 Curran, The Moral Theology of John Paul II, 98; Curran, “Commentary on Sollicitudo rei Socialis,” 430. 780 John Paul II, Sollicitudo rei Socialis, no.38. 781 Hollenbach, Common Good and Christian Ethics, 189. 219 themselves and to accept the specific Christian dimensions of complete unselfishness, forgiveness, and reconciliation. It enlarges one’s personal vision and responsibility by helping to recognize that other individuals are persons and to “see the ‘other’ – whether a person, people, or nation – not just as some kind of instrument …, but as our ‘neighbor,’ a
‘helper’ (cf. Gen. 2:18-20), to be made a sharer, on a par with ourselves, in the banquet of life to which all are equally invited by God.”782 This induces selfless love and self-sacrifice for
one’s neighbor because one sees the other as a living image of the Trinitarian God. However,
the Church does not spiritualize the principle of solidarity by describing it as a virtue, because
the ethics of solidarity is closely connected with the Christian’s preferential love for the poor.
The ethics of solidarity aims at creating a more just global society.783 It is an expression of
Christian love in action to overcome the social sin.
2.2.2. Solidarity and Liberation
The principle of solidarity is action oriented for social justice, though not through
class struggle, but through unity and collaboration. Dorr claims that for John Paul II, who
called for solidarity with the poor, “the word ‘solidarity’ seems to play a role analogous to the
phrase ‘class struggle’ in Marxist writings.”784 Solidarity as a virtue highlights the need for
change of heart and change of structures to bring about a social change.785 Modern Catholic social teaching interprets solidarity as social harmony, social charity, and social justice.
Solidarity is understood not only in terms of rich individuals and nations helping and sharing
their wealth with the poor and undeveloped countries, but also changing the giver in a radical
way.786 The object of solidarity can be a person, a people, or a nation. Church teachings
782 John Paul II, Sollicitudo rei Socialis, no. 39. 783 Johan Verstraeten, “Solidarity and Subsidiarity,” in Principles of Catholic Social Teaching, ed. David A. Boileau (Milwaukee: Marquette University Press, 1998), 143-44; Baum, “An Ethical Critique of Capitalism,” 249. 784 Ibid., 303. 785 Curran, “Commentary on Sollicitudo rei Socialis,” 427, 430. 786 Cathy Molloy, “Solidarity in Catholic Social Teaching,” in Catholic Social Teaching in Action, ed. Jesuit Centre for Faith and Jusice ( Co Dublin: The Columba Press, 2005), 132. promote the claim that the principle of solidarity at an individual level can transform the
interpersonal relationships and make “the powerful to feel responsible for the weak and ready
to share with the weak, and the weak or poor to reject destructive or passive attitudes while
claiming their own rights, work for the good of all.”787 It would spontaneously stir up minds
and hearts of people to commit themselves to serve the common good, even in the face of oppositions and difficulties.788 At the national and international level it demands a universal
responsibility and moral obligations by rich and powerful nations that transcend nation, culture, and geography to protect the dignity of every human person and to prevent any form of oppression, exploitation, and marginalization that would reduce human persons and
nations to mere means. It opposes any form of imperialism and domination of rich and
powerful nations over the developing nations.789 It also urges that rich nations take the
culture and value system of other nations seriously and not impose their mode of development and value systems on the developing countries.790
In the Church we see at least two approaches in practicing the virtue of solidarity. One
approach is proposed by liberation theology and another by Catholic social encyclicals. The
liberation theology approach emphasizes the solidarity from bottom-up, which is opposed to the top-down approach. The bottom-up approach emphasizes solidarity among the poor and the marginalized. For example, Sobrino explains solidarity as “poor people and nonpoor people mutually bearing one another, giving ‘to each other and receiving ‘from each other’
the best they have, in order to arrive at being ‘with one another.’”791 Liberation theology
recognizes the role of praxis and conflicts in overcoming the structures of sin. On the other
787 Donal Dorr, “Solidarity and Integral Human Development,” in The Logic of Solidarity: Commentaries on Pope John Paul II’s Encyclical ‘on Social Concern’, ed. Gregory Baum and Robert Ellsberg (New York: Orbis, 1989), 149. 788 J. Michael Stebbins, “The Meaning of Solidarity,” In Labor, Solidarity and the Common Good: Essays on the Ethical Foundations of Management, ed. S.A. Cortright (Durham, North Carolina: Carolina Academic Press, 2001), 130. 789 Curran, “Commentary on Sollicitudo rei Socialis,” 427. 790 Dorr, Option for the Poor, 327. 791 Sobrino, No Salvation outside the Poor, 63. 221 hand, Catholic social teaching, particularly the approach followed by John Paul II, is a top- down approach to solidarity. This approach emphasizes putting into practice agreed upon moral truths at the top. So, it insists upon a solidarity of all humanity based on an agreed upon moral concept of solidarity. Though Catholic social teaching recognizes the need for
‘worker solidarity’ and some role of conflict and power, for example in Laborem Exercens, in general it insists on seeing solidarity in a broader context, a solidarity of the entire human race.792
In the context of present globalization, where on the one hand there is a growing interdependence and interconnectedness, but on the other hand human relationships are shaped by stark inequalities and marginalization, the social principle of “solidarity ensures that the emerging global order is one that will truly serve the well-being of all people and not simply a segment of the world's population at the expense of the rest of humankind.”793 It
argues that global interdependence must “be transformed into relationships tending towards genuine ethical-social solidarity.”794 As a moral virtue it calls for the transformation of the
existing unjust economic, political, and social institutions so as to make possible the active
participation of the poor and marginalized in the global economy.795 It particularly insists that
one ought to be particularly attentive to the voices of the marginalized whose aspirations and
perspectives are systematically ignored.796 Hence, we can conclude that the solidarity
framework provides an important ethical foundation for the process of humanizing the
current globalization. It “ensures that the emerging global order is one that will truly serve the
well-being of all people and not simply a segment of the world's population at the expense of
792 Curran, “Commentary on Sollicitudo rei Socialis,” 427-28. 793 Himes, “Globalization with a Human Face”: 277. 794 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 193. 795 Hollenbach, The Common Good and Christian Ethics, 227-28. 796 Christopher P. Vogt, “Fostering a Catholic Commitment to the Common Good: An Approach Rooted in Virtue Ethics,” Theological Studies 68 (2007): 402-03. the rest of humankind.”797
2.3. The Common Good
In order to address the problems of global poverty and inequality we need what
Hollenbach calls “interdependence in solidarity.”798 This phrase describes an intimate bond
between solidarity and the common good. The interdependence in solidarity shows that the
good of each person does not compete with the good of others in a zero-sum relationship, but
rather the good of each individual is linked with that of others through their reciprocal
relationship. In the long term, the achievement of dignity and the well-being of individuals is
a shared achievement. The common good of a community and the well-being of an individual
is therefore mutually engaging.799 The common good is therefore “the good that comes into
existence in a community of solidarity among active, equal agents.”800
2.3.1. Meaning of the Concept
The notion of the common good is a dynamic term and its definition partly depends
on one’s view of society. In Catholic thought the common good is understood as the good
that human beings share in common as the source of their fulfillment. It does not consist in
the “simple sum of the particular goods of each subject of a social entity.”801 Pope John
XXIII described it as “the sum total of those conditions of social living, whereby men are enabled more fully and readily to achieve their own perfection.”802Gaudium et Spes
explained it as embracing “the sum of those conditions of social life by which individuals,
families, and groups can achieve their own fulfillment in a relatively thorough and ready
way.”803 The common good in Catholic social teaching is identified as societal and economic
797 Himes, “Globalization with a Human Face”: 276. 798 Hollenbach, The Common Good and Christian Ethics, 183. 799 Ibid., 188. 800 Ibid., 189. 801 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 164. 802 Pope John XXIII, Mater et Magistra, no. 65. 803 Gaudium et Spes, no. 74. 223 conditions that “(1) guarantee access to any goods that are, as such, public goods; (2) enable true social participation in the goods of society…; (3) establish the possibility for (at least minimal) human flourishing both as individuals and in one’s fated or chosen groups.”804 The
emphasis is on the participation of all in the benefits of the common good.805
The Christian understanding of the common good is wider than concepts such as general welfare, public interest, and public goods. It is not only about sharing in the extrinsic goods that are present for all members of a community, but also about immanence in mutual human relationships. These human relationships are not only instrumental to human
flourishing, but are also aspects of flourishing itself.806 The common good is then “not simply
a means for attaining the private good of individuals; it is a value to be pursued for its own
sake. …a key aspect of the common good can be described as the good of being a community
at all.”807 The common good can be summarized as “the social and community dimension of
the moral good.”808
The social principle of the common good is rooted in the Church’s understanding of
the social nature of the human person and on the principle of the universal destination of
goods. It recognizes that persons are neither simply isolated individuals pursuing isolated
goods nor cogs in a larger social collective, but rather they achieve their dignity as human
persons in community. The common good indicates that there is an interconnection between
individual good and the quality of society. The individual freedom and common good are
complementary and not contradictory. Consequently Catholic social teaching insists that a
community should become “the kind of place within which each of the persons who belong
804 John A. Coleman, “The Future of Catholic Social Thought,” in Modern Catholic Social Teaching: Commentaries and Interpretation, ed. Kenneth R. Himes et al. (Washington, D.C.: Georgetown University Press, 2004), 538. 805 David Hollenbach, “Common Good,” in The New Dictionary of Catholic Social Thought, ed. Judith A. Dwyer (Collegeville, Minn.: Liturgical Press, 1994), 193. 806 Hollenbach, The Common Good, 8-9. 807 Ibid., 81-82. (emphasis original) 808 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 164. to it is able to achieve his or her proper fulfillment as a human being made in God’s
image.”809 Vatican Council II makes it clear that the progress of the human person and the
advance of society itself hinge on each other.810
The universal right to participate in the common goods of the earth is founded on the
Christian principle of the universal destination of goods. The principle holds that God is the
original source of the earth and has given all created things for the sustenance and well-being
of all people. Hence, it is a natural right of each person to use the goods of the earth for his or her full human development.811 The Second Vatican Council states, “God intended the earth
and all that it contains for the use of every human being and people. Thus, as all men follow
justice and unite in charity, created good should abound for them on a reasonable basis.”812
The principle of universal destination of goods directs us to develop an economic vision that promotes the well-being of all people without exclusion and exploitation of any person or community. This principle also entails an obligation on the owners of goods to use their resources in a way that benefits the common good. 813
John XXIII, in his encyclical Pacem in Terris, emphasizes respect for human rights as
a criterion for honoring the common good. He interprets the common good as “the
recognition, respect, safeguarding, and promotion of the rights of the human person.”814
Based on the principle of the common good, human rights are recognized not in individualistic terms, but rather as communal. It argues that persons can live in dignity only in a community that values and respects both personal initiative and social solidarity.815
Individual human rights are seen as positive claims to participate actively in the common life.
Protection of human rights and the advancement of the common good are seen as mutually
809 Stebbins, “The Meaning of Solidarity,” 121. 810 Gaudium et Spes, no. 25. 811 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, nos. 171-72. 812 Gaudium et Spes, no. 69. 813 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, no. 178. 814 Pope John XXIII, Pacem in Terries, no. 139. 815 Hollenbach, The Common Good and Christian Ethics, 228. 225 correlative and not opposed to each other.816 The common good based on love, solidarity, and
our common humanity avoids the extremes of individualism and collectivism. It involves the
participation of all in the life of the community, including its economic life, justice and
human rights for all.817 This common good-based understanding of human rights therefore
demands that globalization develop economic and political institutions that respect both
individual rights and obligations for the common good.
Upholding the common good principle is indispensable in debates about
globalization. David Hollenbach argues that in the context of globalization, where human
well-being is increasingly interdependent and interconnected, the idea of common goods and
common bads “must play central roles in a normative framework adequate to guide response
to new forms of global connection.”818 It challenges the neo-liberals’ proposition that self-
interest and absolute right to private property should govern human and international
relationships. The Catholic Church argues that some goods are public goods and endorses
‘the priority of a common possession of the goods of the earth over a legitimate, but
derivative, right to private property.”819
The common good principle provides a constructive contrast to the neo-liberals’
understanding of the human person, social relationships, and the purpose of economic
development. The central idea of the common good, that is the person-in-relationships,
advocates a greater inclusion and solidarity of all people as a necessary requirement in order
to grow as a human person. It also provides a directive and basis to develop an authentic
economic development. It sees economic development primarily as a means to participate in
the common good and not an ultimate end in itself.820As Vatican II states, “The fundamental
816 Hollenbach, “Commentary on Gaudium et Spes,” 280-81. 817 Curran, “The Reception of Catholic Social and Economic Teaching in the United States,” 480. 818 Ibid., 44. 819 Coleman, “Making the Connections,” 16. 820 John Atherton, Transfiguring Capitalism: An Enquiry into Religion and Global Change (London: SCM Press, 2008), 222-27. purpose of this productivity must not be the mere multiplication of products. It must not be
profit or domination. Rather, it must be the service of man, and indeed of the whole man.”821
In the context of globalization where there is a declining trust in a central public authority who can ensure the common good, the Church needs to emphasize a range of networks for social change and for the protection of the common good. This means that the
Church, guided by her principles of subsidiarity and solidarity, should encourage Catholics to cooperate with other religious and cultural traditions, civil society movements, and ‘from- below’ organizations to actualize the common good. The challenge for Catholic social
teaching is to acknowledge that in the context of globalization any attempt to define the
content of the common good must be inductive and dialogical. It is carried out in a more
pluralistic, decentralized, and practical manner than we may have previously imagined.822
Conclusion
In the current context -- where a majority of poor people are lacking basic resources for proper nutrition, health service, housing, education and employment opportunities -- social justice calls for the transformation of the current version of globalization. The transformation requires multiple steps at various levels. It requires adequate government policies and initiatives to change unjust structures and to level the playing field for the poor people and nations to benefit from globalization. However, the Church also has an important role to play. The Church, as a sign of hope and a prophetic voice against human injustice by being in solidarity with the poor and all who work to make our world a better place for all people, provides a moral framework to rethink an economic model with justice and holistic human flourishing as its core moral values.
The Church, based on her spiritual discernment, core social principles, and her special
821 Gaudium et Spes, no. 64. 822 Lisa Sowle Cahill, “Globalization and the Common Good,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll /New York: Orbis Books, 2005), 44-45. 227 love for the marginalized, renders important contributions to the debate of globalization. It helps to read the signs of our time and engage in the issue of globalization critically and creatively, neither embracing it fully nor rejecting it wholesale. It urges Christians and people of good will to question free market values and taken-for granted elements of neo-liberal ideology.823 Her commitment to human dignity, solidarity and the common good are not ends
in themselves, but are means for human flourishing or human well-being. They will not solve
all the problems that our current globalized world is facing. Nevertheless, they provide a
vision and directions to the process of humanizing the current globalization. Her vision of a
multi-layered development, where every person has a right to participate and a duty to
contribute to the common good, ensures that no person is excluded from his or her basic right
to participate in the common good. In the context of contemporary globalization, where a
majority of poor people are denied this right, the Church calls for solidarity in action of all
people, especially with the poor, to change the evil structures that prevent the poor from
realizing the fullness of their human dignity.
In order to make the Church’s people-oriented integral vision of society and her rich
social principles concrete and more relevant to our time, many people recommend that she,
based on her principles of subsidiarity and solidarity, be more open to dialogue at various
levels: within itself at local, nation, and regional level, but also with other faiths, cultures, and
all people of good will.824 She should positively recognize that the Church is not alone in the
struggle to humanize the current globalization and that she cannot pretend to have complete
answers to all complex problems to our world. Many NGOs, grassroots organizations, and
civil society movements are denouncing the neo-liberal dominance and are proposing
823 Douglas A, Hicks and Mark Valeri, “Christian Faith and the Global Market,” in Global Neighbors: Christian Faith and Moral Obligation in Today's Economy, ed. Douglas A. Hicks and Mark Valeri (Grand Rapids, Michigan/Cambridge, U.K: William B. Eerdmans Publishing Company, 2008), 258. 824 William F. Ryan, “Personal Comments, Reflections, and Hopes,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll /New York: Orbis Books, 2005), 256. alternatives that promote participation, accountability, and transparency. Collaboration,
dialogue, social coordination with these movements and organizations emerge as a most
effective path for the Church to take in order to make her contribution significant to the process of humanizing the current globalization. This demands that the Church speak about her understanding of society, the interdependence of people, social justice and a special concern for the most vulnerable groups within society. But dialogue also demands an open-
minded listening to others.825
825 Hollenbach, The Common Good and Christian Ethics, 156-57. 229
Chapter Four
CHURCH IN ACTION: BEING A PROPHETIC CHURCH IN INDIA
Introduction
Pope Paul VI stated in his 1971 apostolic letter Octogesima Adveniens, “It is up to these Christian communities, with the help of the Holy Spirit, in communion with the bishops
…, to discern the options and commitments which are called for in order to bring about the
social, political, and economic changes seen in many cases to be urgently needed.”826 In the
context of religious and cultural pluralism,827 overwhelming poverty and marginalization of the vast majority of people, and widespread gender, class and caste inequality the Church in
India has been constantly engaging in a process of reflection in order to define and articulate her pastoral vision and priorities. She has proposed that dialogue and cooperation with various religious traditions, cultures and the poor themselves are powerful ways to witness and to fulfill its roles as a sign of God’s vision for a just, peaceful, free, and loving human society. She is aware that she has much yet to accomplish in order to be truly an active, participative and prophetic Church of the poor and with the poor.828
In the face of neo-liberal economic globalization, which in egregious ways
dehumanizes the poor and exploits their dignity, especially the majority of unskilled casual
workers and landless marginal farmers in India, the Church in India is faced with challenging
questions about her identity and mission priorities. She is confronted with a range of hard
questions of: how can she faithfully and prophetically proclaim her Kingdom mission of love
and justice by denouncing the destructive and oppressive social structures that perpetuate
826 Pope Paul VI, “Octogesima Adveniens,” no. 4, in Catholic Social Thought: The Documentary Heritage, ed. David J. O’Brien and Thomas A. Shannon (Maryknoll, New York: Orbis Books, 1992), 266. 827 India has twenty-two official languages, and hundreds of other languages, over 4, 635 ethnic communities and several religious traditions. Francis Minj, “Jesus Christ Paramadivasi: An Indian Adivasi Construal of Jesus Christ,” in Jesus of Galilee: Contextual Christology for the 21st Century, ed. Robert Lassalle-Klein (Maryknoll, New York: Orbis Books, 2011), 187. 828 Miguel Marcelo Quatra, At the Side of the Multitudes: The Kingdom of God and the Mission of the Church in the FABC Documents (Quezon City, Philippines: Claretian Publications, 2000), 169. injustice and violations of human dignity? How can she, representing a small minority,
become a transformative power and a voice for the voiceless and vast majority of the Indian
poor? How can she effectively translate her social principles and ethical ideals of the
preferential option for the poor, social justice and the common good into concrete actions?
What urgent changes and reforms are necessary in her institutional structure and self- understanding in order to become a Church of India and a Church of the poor? There are no clear answers to these complex questions. Experience teaches us that it is harder to come up with concrete solutions to complex problems than to describe them. However, these questions challenge the Church in India to reflect critically and rethink creatively about her mission methodology and identity. These questions challenge her to reinterpret, within the Indian socio-cultural and economic situation, her identity, mission, and commitment to human dignity and social justice.
In this chapter I argue that one of the most valuable contributions that the Church in
India can make to the process of humanizing the current globalization is promoting solidarity with the poor and civil society organizations through a commitment to dialogue of action and active collaboration. To succeed in this action-oriented dialogue I propose that the Church in
India must concentrate on at least the following three things.
First, the universal reign of God, which fosters fellowship, empowers the weak and promotes justice, must be the central vision and mission of the Church, without disavowing explicit proclamation of Jesus Christ as the Savior.829 The mission vision of the Indian
Church must be an integral evangelization, which includes integration of proclamation of
faith and the promotion of justice.830 A careful balance needs to be maintained between a
message of universal social concern and the particularities of Christian faith.
829 George M. Soares-Prabhu, “The Kingdom of God: Jesus’ Vision of a New Society,” in The Dharma of Jesus, ed. Francis X. D’Sa (Maryknoll, New York: Orbis Books, 2003), 64. 830 George M. Soares-Prabhu, “The Church as Mission: A Reflection on Mathew 5:13-16,” in ibid., 260. 231
Second, she must discover her true Indian identity by participating in the socio- political, economic, and cultural realities of Indian society and through a dialogue831 with the poor. The Church must truly immerse herself in the world of the poor and be open to being tutored and even evangelized by them. She must allow herself to be affected by the hard realities faced by the poor and in honesty, humility and deep faith in Jesus’ Kingdom mission should take “responsibility for reality.”832 Taking hold of the depth of the situation of the
poor and naming their realities by critically analyzing them through careful social analysis
and ethical reflection should be an important dimension of her mission. Her social
discernment should be informed by faith and social analysis.833
Third, empowerment and education of the poor and formation of basic human
communities to work for justice and liberation of all people should be a primary modus
operandi of church social ministries. These inclusive and committed human communities can
be signs of service and solidarity to transform Indian society.
In exploring the nature and challenges of being a Church in dialogue and a Church of
and with the poor in the current reality of India, I divide this chapter into two parts. In the first part, I analyze some of the structural causes behind the deplorable situation of the marginal farmers and the unskilled casual workers in globalizing India. In the second part, I develop the Church’s prophetic response and concrete commitment to transform this reality.
831 The Pontifical Council for Inter-Religious Dialogue defines the term dialogue with a variety of meanings: a good communication between or among persons; an attitude of respect and friendship; openness to, respect for, and sincerity toward other religious ways, ideologies, cultures, and faiths. In the context of religious pluralism, the document defines dialogue as, "all positive and constructive interreligious relations with individuals and communities of other faiths which are directed at mutual understanding and enrichment in obedience to truth and respect for freedom." Pontifical Council for Inter-Religious Dialogue, Dialogue and Proclamation: Reflection and Orientations on Interreligious Dialogue and the Proclamation of the Gospel of Jesus Christ (1991), no.9. http://www.vatican.va/roman curia/pontificalcouncils/ interelg/ documents/rc_pc_i nterelg doc 19051991_dialogue-and-proclamatio_en.html; Stephen B. Bevans and Roger P. Schroeder, Prophetic Dialogue: Reflections on Christian Mission Today (Maryknoll, New York: Orbis Books, 2011), 21. 832 Jon Sobrino, No Salvation Outside the Poor: Prophetic-Utopian Essays (Maryknoll, New York: Orbis Books, 2008), 2. 833 John Verstraeten, “Catholic Social Teaching and the European Project: From Applying Principles to Scrutinizing the Signs of the Times in the Light of the Gospel,” in Catholic Social Teaching in Global Perspective, ed. Daniel McDonald (Maryknoll, New York: Orbis Books, 2010), 153. 1. The Context
To communicate the Good News of Jesus Christ and to be a sign of God’s Kingdom the Indian Church needs, as recognized by John Paul II in his post-Synodal apostolic exhortation Ecclesia in Asia, a critical awareness of the social, political, economic, religious, and cultural realties of India.834 In this section I explore the concrete economic situation of the marginal farmers and unskilled casual workers in India.
India is a heterogeneous economy, with wide productivity dispersion. On the one hand, it is becoming a top player in global innovation in biotechnology, pharmaceuticals, automotive parts and assembly, information technology, and in software and IT-enabled services. On the other hand, it continues to be primarily a rural agrarian economy, with over
60 per cent of her workforce engaged in agriculture. Over 46 per cent of Indian women are still illiterate and more than a quarter of the population lives below the national poverty line.835 Roughly 90 per cent of her workforce in rural area is in the informal sector -- either self-employed in low-productivity subsistence agriculture sector and allied activities or as casual workers. In the urban sector more than 60 per cent of workforce consists of casual workers without any social security.836
834 John Paul II, Ecclesia in Asia, no.5, in The Future of the Asian Churches: The Asian Synod and Ecclesia in Asia, ed. James H. Kroeger and Peter C. Phan (Quezon City, Philippines: Claretian Publications, 2002), 132. 835 There is no singular uniform measure line to measure poverty in India. There is a considerable debate on the ‘true’ measure of poverty in India. Different groups use different measuring lines to assess poverty in India. For example, the National Sample Surveys (NSS) uses growth in household average consumption, but the Planning Commission of India uses price deflators as the measuring line. The government of India in 2005 accepted U.S. $ 1.02 (PPP) per day as the poverty line. So there are different statistics about the number of people below the poverty line in India. According to the Tendulkar Committee report, which the Planning Commission of India has accepted as an official figure, around 37 per cent of people in India live below the poverty line. Two other reports have pegged poverty at higher levels. The Arjun Sengupta report says that 77 per cent of Indians live on less than rupees 20 per day and the N C Saxena Committee report says that 50 per cent of people in India live below poverty line. http://ibnlive.in.com/news/its-official-37-live-below-poverty-line/113522-3.html (accessed August 5, 2011). Oxford Poverty and Human Development Initiative, using the Multidimensional Poverty Index (MPI), estimates that 55 per cent (645 million) are poor in India. http://www.ophi.org.uk/wp- content/uploads/Country-Brief-India.pdf (accessed August 5, 2011); R. Radhakrishna and S. Chandrasekhar, “Overview Growth: Achievements and Distress,” in India Development Report 2008, ed. R. Radhakrishna (New Delhi: Oxford University Press, 2008), 4-5. 836 Mark A. Dutz and Carl Dahlman, “The Indian Context and Enabling Environment,” in Unleashing India’s Innovation: Toward Sustainable and Inclusive Growth, ed. Mark A. Dutz (Washington, D.C.: The World Bank, 2007), 23. 233
In 1991 India introduced economic liberalization by accepting structural adjustment and substantially removing the state from direct intervention in the economy. It has been called a paradigm shift837 in India’s economy. The process of India’s integration with the
world economy involved a sharp devaluation of the rupee, qualitative removal of restrictions
on imports, substantial reduction of import traffic, liberalization of foreign direct investment,
and unification of the exchange rate. It also considerably shortened the list of items reserved
for the small-scale producers.838 Reforms in industrial and trade policies were central foci of
India’s economic reform. Industrial licensing by the central government, except for a few
hazardous and environmentally sensitive industries, was abolished.839
The post-liberalization economy of India has been cheered as one of the fastest
growing developing economies in the world. Commercial mass media in India regularly
carries stories of the ‘booming’ Indian economy with job opportunities for youth abounding and unending business prospects and profits. India’s robust annual GDP growth at a rate of
7.20 per cent is highly impressive.840 The Reserve Bank of India’s quarterly survey predicts
that the GDP growth will accelerate to 8.2 per cent for the financial year 2010/11841 and the
Eleventh Five Year Plan (2007-12) has set the target of the GDP growth 9%. The major contributors to India’s vigorous economic growth are “a spurt in exports, resurgence of the manufacturing sector, and substantial flow of foreign direct investment (FDI) that has
837 After independence, with the aim of achieving self-reliance and greater redistribution, India adopted a mixed economy with both state and private initiatives. It featured centralized planning and state regulation of the private sector. All basic management decisions regarding investment, production, technology, prices, imports, exports, and foreign capital were controlled by the state. In essence it was the industrial-cum-trade licensing system. It was designed with the aim of ensuring that growth of the economy would take place in a planned and self-reliant direction. It was directed to create a just society based on social justice. Stanley A. Kochanek, “Liberalization and Business Lobbying in India,” in India’s Economic Transition: The Politics of Reforms, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), 413; Rahul Mukherji, “Introduction: The State and Private Initiative in India,” in ibid., 1. 838 Dipak Mazumdar and Sandip Sarkar, Globalization, Labor Markets and Inequality in India (London/ New York: Routledge, 2008), 2. 839 Montek S. Ahluwalia, “Economic Reforms in India since 1991: Has Gradualism Worked,” in India’s Economic Transition: The Politics of Reforms, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), 92. 840 http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=INR#ixzz0lbWfLirQ (accessed July 20, 2011). 841 http://economictimes.indiatimes.com/India. complemented the domestic investment.”842
Though high GDP growth is enormously helpful in advancing living standards and in
battling poverty in India, taking the growth of GNP as an end in itself, rather than seeing it as
an important means for achieving things we value can be dangerous.843 Moreover, the
euphoria around exceptional GDP growth and the projection of India as a fast flourishing
country by the government, neo-liberal economists and some section of the mass media are
deceptive and misleading. They have a proclivity for presenting only exaggerated rosy
success stories portraying prosperous and affluent upper and middle class families in fast-
developing metropolis and bourgeoning urban cities. More worrisome, relatively privileged
Indians can easily fall prey to the temptation to focus exclusively on economic growth as
benevolent for all. This also conceals the hard realities of India’s vast impoverished people
by covering over the facts of growing distress of the marginal farmers, illiteracy and ill health
of a vast majority of rural women, malnourished children, the insecurity and exploitation of
casual and migrant workers who live in overcrowded and unhygienic slums in the cities, and
the misery of the displaced tribal communities in the name of development and structural
adjustment programs in innumerable Indian villages.844
The ongoing debate over the impact of India’s economic liberalization (20 years after
its formal introduction) in combating poverty and inequality in India has mobilized enormous
attention and energy.845 The advocates of economic liberalization in India argue that
842 Radhakrishna and Chandrasekhar, “Overview Growth,” 1. 843 Amartya Sen, “Quality of Life: India vs. China,” New York Review of Books, 12 May 2011, 1 844 Income inequality in India has been rising at an unprecedented rate in the last couple of decades. For example, India boasts of having 50 billionaires, with 2 making the list of the world’s top 10 richest people, when more than 800 million of her population lives on less than 20 rupees (approximately US$2 PPP) per day. The crushing income disparity is demonstrated by a recent news story. One of India’s richest men, Mukesh Ambani, is constructing a 27 story luxury home for his family, which has three helipads on the top floor, a swimming pool, a health club, a salon, a mini-theatre, and a garage to park more than 160 cars and nine elevators. It is estimated that its price may be around one to two billion U.S. dollars. This billion dollar house stands in the midst of 42% of Indian children starving without even one proper meal per day. http://www.greenworldinvestor.com /2010/10/13/crushing-income-disparity-in-india-worlds-most-expensive-2- billion-home-coexists-with-largest-number-of-hungry-children/ (accessed August 20, 2011). 845 This year India celebrates the 20th anniversary of her economic liberalization. On August 10, 2011 there were 235 liberalization of the Indian economy was the sorely needed remedy to an uncompetitive and unwieldy interventionist system that was preventing Indian industry from taking the advantage of the opportunities presented by the global economy. Some economic journals and neo-liberal economists strongly argue that the 1991 market reforms have succeeded in reducing poverty to an exceptional degree. They also rightly argue that economic liberalization has stimulated production, trade, and foreign capital flow and investment. This has brought to the country new technologies, new products and well-paying job opportunities to the well-educated and highly-skilled urban youth. Many of the metropolitan cities have become global headquarters for high-tech and consulting firms. These cities are witnessing rising prosperity and improved living standards.846
However, critics of the current economic boom in India question its inclusiveness and
sustainability. Skeptics raise several relevant questions: is it an equity-promoting growth?
Has it increased rural agricultural productivity and non-farm employment? Has it freed
millions of people from starvation and oppression? Has it improved the health, education,
nutrition, and sanitation of the vast majority of Indians who are not within the purview of the
market? Empirical studies show that, despite acceleration in the GDP, the process of poverty
reduction in India is sluggish. India may have become one of the strongest emerging markets,
but the economic growth has not contributed to improving the living standards of the poorer
and marginalized masses. Critics rightly argue that India’s recent industrial growth has been
capital and skill-intensive growth. Many of India’s dynamic companies are in the service
sector, which require skilled labor. Hence, growth in India’s information technology sector
cannot answer the employment needs of millions of poorly educated and unskilled labor force
over 19,700,000 search results on the Google web search engine on the topic “Debate on 20 years of India’s economic reforms.” 846 Ahluwalia, “Economic Reforms in India since 1991,” 87-90; Jagdish Bhagwati, “What Went Wrong?,” in India’s Economic Transition: The Politics of Reforms, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), 32-35, 48; Jennifer Dirmeyer, Paola Revelo, and Walter E. Block, “Poverty, Dignity, Economic Development, and the Catholic Church,” Journal of Markets & Morality 12, no.1 (Spring 2009) : 67-68. in rural India.847
The economic growth in India is concentrated in some sectors and regions and has not
spread to places where the poor are concentrated. For example, over 54 per cent of India’s poor are concentrated in the poorer states of Bihar, Madhya Pradesh, Uttar Pradesh and
Orissa. These states also have a high rate of rural poverty. The pace of poverty reduction in these states is very slow. The multiple deprivations -- lack of assets such as land, skills,
health, capital, and human resources – have prevented the poor from participating in and benefiting from the globalization.848
One of the main problems with India’s economic liberalization is that it was
introduced without adequately changing the existing unequal socio-political and economic
structures. The social sector in India is not properly developed along with economic reform.
India’s economy is handicapped by its overwhelming illiteracy, inadequate health services in rural areas, lack of sanitation and clean drinking water, debilitating social inequalities and rampant corruption at all levels of government machinery. Hence, economic liberalization of
Indian markets has failed to expand the social opportunities and to improve the welfare of all people. The overall picture of India demonstrates that there may be an overall growth rate of national income, but it still does not display an equitable and participatory growth.849
Child malnutrition and infanticide in rural India are among the clearest examples of
India’s lack of holistic and inclusive growth. According to the National Family Health
Survey (NFHS-3) 2005-06, child malnutrition rates in India are disproportionately high. It is
estimated that more than forty per cent of the world’s severely malnourished children under
the age of five live in India. The report shows that 46 per cent of children under the age of
847 Roger Jeffery and Anthony Heath, “Incongruities, Ironies, and Achievements: India’s Tryst with Modernity,” in Diversity and Change in Modern India: Economic, Social and Political Approaches, ed. Anthony F. Heath and Roger Jeffery (New York: Oxford University Press, 2010), 7. 848 Radhakrishna and Chandrasekhar, “Overview Growth,” 5; Jean Dreze and Amartya Sen, India: Development and Participation, 2nd ed. (New York: Oxford University Press, 2002), 325, 4-5. 849 Ibid., 308, 317, 325. 237 three are underweight (compared with 28 per cent in Sub-Saharan Africa and 8 per cent in
China), 39 per cent are stunted, 20 per cent are severely malnourished and 80 per cent are anemic. More than 6,000 children below the age of five die every day in India due to malnourishment or lack of basic micronutrients such as vitamin A, iron, iodine, zinc or folic acid.850
The primary reason for malnutrition in India is not lack of food, but rather the
government’s ineffective food polices, inadequate public distribution system, and the
government’s unrealistic minimum support price program. The government’s commitment to
‘minimum support prices’ for food grains has helped growth in the production of food grains.
It has forced the government to buy the food in order to sustain the artificially high prices.
The outcome is that India has an overabundance of food grains in stock when it has the
highest number of undernourished children.851
To achieve an inclusive and sustainable growth, which includes economic growth and
the well-being of the poor, India needs a multi-dimensional developmental model. It should
include, besides industrial and service sector GDP growth, revival of the agricultural and
rural non-farm sector by egalitarian land reforms, improving rural infrastructure, irrigation,
literacy, safe drinking water, sanitation, and other facilities. Faster growth of the rural non-
farm sector can provide jobs to the labor force released from agriculture.852 The poor should
850 Anil B. Deolalikar, “Human Development in India: Past Trends and Future Challenges,” in The Indian Economy Sixty Years after Independence, ed. Raghbendra Jha (New York: Palgrave Macmillan, 2008), 162; Sam Mendelson, Child Malnutrition in India: Why does it Persist?, 6. http://www.cini.org.uk/childmalutrition. pdf (accessed July 21, 2011). 851 Dreze and Sen, India: Development and Participation, 336-37. An Indian newspaper Hindustan Times on its 26 and 27 July 2010 edition reported that over 1068.8 million tons of food grains were found damaged in the Food Corporation of India depots. It is estimated that this food is enough to feed over six hundred thousand people for over 10 years. Indo-Asian News Service, “Food Grains Rot in FCI Godowns across India,” Hindustan Times, 27 July 2010. http://www.hindustantimes.com/Food-grains-rot-in-FCI-godowns-across- India/Article 1-578444. aspx; Samar Halarnkar and Manpreet Randhawa, “India Lets Grain Rot Instead of Feeding Poor,” Hindustan Times, 26 July 2010. http:// www. hindustantimes.com/India-lets-grain-rot-instead- of-feeding-poor/Article1-577688.aspx (accessed July 22, 2011). More information on this topic can be found at web site http://www.ndtv.com/article/india/hunger-spreads-as-foodgrains-continue-to-rot-in-madhya-pradesh 39514? cp. 852 Prabhat Patnaik and C.P. Chandrasekhar, “The Indian Economy under ‘Structural Adjustments,’” in India’s Economic Transition: The Politics of Reforms, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), be given adequate chances to improve their capacities and skills in order to become active participants in dynamic sectors of growth. Thus any meaningful and authentic development strategy must aim at improving living conditions of the marginal working class in urban areas and the rural chronically poor households.853
Though economic liberalization has adversely affected thousands of women, children, tribal communities, peasants, urban casual labor households, migrant workers, fishing- community, unskilled youth, small-scale indigenous business community, and many other groups, in this chapter I discuss only the situation of the marginal farmers and informal workers. The reason for choosing these two groups, without suggesting that other groups are less important, is that they are the most neglected, adversely affected, and distressed groups in India today. Without much political and economic power and influence, they have become voiceless and marginalized.
1.1. LessSkilled Informal Workers
India’s labor force is growing rapidly. It is estimated that from 2005 to 2020 an additional 200 million people will be added to the age group of those 15 to 64 years old, the core of the workforce age cohort. However, India has failed to create productive jobs for unskilled workers. One of the main reasons for this failure is the slow transition of the labor force from the agricultural sector to the industrial sector. 854 Post-reform Indian economy displays a modest growth in the labor-intensive manufacturing sector. India’s impressive
GDP growth rate is often attributed to the rise of the Information Technology sector, particularly the software industry.855 However, the software employment and investment are
80-81. 853 Radhakrishna and Chandrasekhar, “Overview Growth,” 8-9, 18. 854 Vijay Joshi, “Economic Resurgence, Lopsided Reform and Jobless Growth,” in Diversity and Change in Modern India: Economic, Social and Political Approaches, ed. Anthony F. Heath and Roger Jeffery (New York: Oxford University Press, 2010), 101-02. 855 According National Association of Software & Services Companies’ (NASSCOM) 2010-11 report revenues of IT-BPO industry for the fiscal year 2010-11 are estimated to aggregate 76 billion U.S. dollars, a growth of over 19 per cent from the previous year. NASSCON Annual Report 2010-11. http://nasscom.in/upload/docs/ 239 concentrated in a small number of urban areas in the Southern part of India.856 Though
India’s achievement in the service sector over the past decade is significant, labor absorption
in this sector is merely one per cent of the total employment in the country. Moreover,
employment in information-technology services naturally has a skill-intensity bias and thus it
is inaccessible to the rural poor and marginal workers who lack the required skills or
education.857
India’s economic liberation and integration with the world economy at a rapid pace
has adversely affected the unskilled and informal working group in India. The manufacturing
sector in India, with its low rate of job growth -- only 2 percent per annum -- is unable to
absorb much unskilled labor.858 The bulk of new jobs created in the manufacturing sector in
the post-reform period are of a low quality and/or informal jobs. There has been a steady rise
of unorganized contract workers in the organized manufacturing sector due to the growing
phenomenon of subcontracting and temporary workers. They have grown from 83.2 per cent
in 1993-94 to 85.0 per cent in 2004-05, at a rate of more than 4.5 per cent per annum. At the same time the growth of regular employment is negative.859 The data from National Sample
Survey’s (NSS) 61st round on Employment and Unemployment Situation among Social
Groups in India 2004-05 shows that wages and employment benefits received by casual
workers are much lower than those obtained by regular workers. The average wage per day
for a regular wage worker in an organized manufacturing industry is around 169 rupees,
while a casual worker earns only about 55 rupees.860 Moreover, globalization has also
annual report_2010-11/NASSCOM_Annual_Report_2010-11. pdf (accessed August 25, 2011). 856 Annalee Saxenian, “Bangalore the Silicon Valley of Asia?,” in India’s Economic Transition: The Politics of Reforms, ed. Rahul Mukherji (New Delhi: Oxford University Press, 2007), 375-76. 857 Raghbendra Jha, ed., The Indian Economy Sixty Years after Independence (New York: Palgrave Macmillan, 2008), 109. 858 K.V. Ramaswamy, “Globalization, Employment, and Labor Market Flexibility: The Case of India,” in India Development Report 2008, ed. R. Radhakrishna (New Delhi: Oxford University Press, 2008), 178. 859 Ibid., 184-85. 860 Bishwanath Goldar and Suresh Chand Aggarwal, Informalization of Industrial Labor in India: Are Labor Market Rigidities and Growing Import Competition to Blame? (a paper presented at the 6th Annual Conference affected the real wages of these workers. The real wages are calculated on the basis of the
purchasing power that a worker enjoys form her/his earnings. The main reason for the decline
in real wages, among several others, is high inflation of food prices and service costs.861
The widening wage gap between formal skilled and casual unskilled workers proves that the assumption of the neo-liberalization trade policy that liberalization of the economy works in favor of unskilled workers is not true. The positive outcome of economic liberalization on abundant unskilled workers depends on the ability of a country to compete in international markets and to expand its exports to international markets. In the case of
India, Indian firms fall short in competing with China, Thailand and other developing countries in international markets. Moreover, the Indian domestic market is flooded with imported goods from China and Thailand.862
The micro and small scale industries, which range from handloom to carpet weaving
and from shelling nuts to crafting jewelry, are expanding rapidly and contributing to the
employment market in India. Since in the domestic market the demand for final products
from these industries is inadequate to keep them in business, they are mostly linked with
certain export-oriented industries. However, normally the export-oriented industries try to
make huge profits by exploiting this cheap and unorganized labor market. Hence, though the
unorganized and informal sector provides employment to poor unskilled workers, in most
cases they are underpaid, overworked, and deprived of their basic rights and privileges.
Furthermore, since most of the workers in this sector are contract workers, they experience great insecurity and fall outside labor laws protection. The employer can hire them when there is a greater demand for goods and services from foreign markets and fire them during
on Economic Growth and Development, December 16-18, 2010), 2. http://www.isid.ac.in/~pu/conference/ dec_ 10 conf/Papers/BishwanathGoldar.pdf (accessed July 30, 2011). 861 Robert E. Hall, “The Macroeconomy and Determinants of the Earnings of Less-Skilled Workers,” in Working for the Poor: How Economic and Policy Changes are Affecting Low-Wage Workers, ed. Rebecca M. Blank, Sheldon H. Danziger, and Robert F. Schoeni (New York: Russell SAGE Foundation, 2006), 96-97. 862 Soumyen Sikdar, Contemporary Issues in Globalization: An Introduction to Theory and Policy in India, 2d ed. (New Delhi: Oxford University Press, 2006), 164-65. 241 the slack season. Their situation as workers hired through subcontractors renders them powerless to demand proper wages, compensation, security, and other services from merchant producers as they deal only with labor subcontractors and escape from taking any responsibility for workers.863
1.2. Farmers’ Crisis
The small-scale marginal peasant community is one of the worst affected groups in
India from economic liberalization. The reduction of subsidies has crippled their income and
the privatization of important public services has deprived them of access to essential
services.864 The case of large numbers of farmers’ suicides in the states of Andhra Pradesh,
Karnataka, Kerala, Maharashtra, and Punjab is symptomatic of the deep-rooted crisis in
agriculture in India.865
Agriculture still dominates India’s economy. It is the largest labor-intensive sector.
The rural Indian economy continues to remain by and large an undiversified economy, which
is primarily dependent on agriculture. Two-thirds of the Indian population (mostly from low caste/dalits and Indigenous/Adivasi communities) is thoroughly dependent on agriculture.
Today around 247 million workers, out of a total 341 million workers, (72.5 per cent) are engaged in agriculture. Out of these numbers, approximately 83 per cent are small-scale marginal farmers operating in less than 19 per cent of the cultivating area. Lack of employment diversification has resulted in the concentration of the workforce in the agricultural sector. Over the years there has been an increasing concentration of marginal and small farmers working on land holding that are decreasing in size. This has resulted in overcrowding in the agricultural sector. Moreover, there has been a continuous decline in
863 Dipankar Gupta, “The Blind Side of Globalization: Auditing Merchant Producers in India’s Export Sector,” in Diversity and Change in Modern India: Economic, Social and Political Approaches, ed. Anthony F. Heath and Roger Jeffery (New York: Oxford University Press, 2010), 121. 864 Ruchira Ganguly-Scrase and Timothy J. Scrase, Globalization and the Middle Classes in India: The Social and Cultural Impact of Neoliberal Reforms (London/New York: Routledge, 2009), 13-14. 865 Radhakrishna and Chandrasekhar, “Ovnerview Growth,” 12-13. agriculture’s share of the national GDP. It declined from 41 per cent in 1972-73 to 22 per
cent in 2004-05.866 The main reasons for the stagnation of growth and decline in the net flow
of income are rising input costs and falling prices of agricultural commodities. This has
disordered and distressed the once self-sustaining rural farming community. It is estimated
that in 2004-05 nearly 357 million people from the agrarian community were undernourished,
out of which approximately 83.1 per cent were small-scale marginal farmers.867
The phenomenon of the growing number of agrarian suicide cases from the rural
peasant community is disturbing and depressing. This suggests and signifies that there is a
deeper agrarian crisis in the Indian society.868 Though there is no accurate statistical record of
total number of suicides by farmers in the post-reform period, according to the National
Crime Records Bureau (NCRB) of India there were over 199,132 farmers’ suicides from
1997 to 2008 in India. The official data shows that on average 16,000 farmers committed
suicide per year over the last decade.869
Debate about real causes for the epidemic of farmers’ suicides is continuing. Though
there are a number of explanations and theories circulating that purport to explain the
complex nature of the suicide phenomenon, a number of studies and analysis conducted by
various agencies, committees, activists and research groups on the issue have identified
several social, economic, political and ecological reasons and factors.870 Most of them
866 M.S. Sidhu, “Globalization Vis-à-vis Agrarian Crisis in India,” in Agrarian Crisis and Farmers Suicide, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 157-60. 867 D. Narasimha Reddy and Srijit Mishra, “Economic Reforms, Small Farmer Economy and Agrarian Crisis,” in ibid., 55; R.S. Despande and Khalil Shah, “Globalization, Agrarian Crisis and Farmers’ Suicide: Illusion and Reality,” in ibid., 118. 868 Indian farming community forms a three-tiered pyramid. At the wide base are the poverty-struck farmers who are poor and are landless or own a small plot of land. The middle tier is formed by the upwardly mobile farmers engaged in a prolong battle to rise above the poverty line and to join the mainstream. The top tire is a politically powerful farm lobbies. V.M. Rao, “Farmers’ Distress in a Modernizing Agriculture- the Tragedy of the Upwardly Mobile: an Overview,” in ibid., 111. 869 K. Nagaraj, Farmers’ Suicides in India: Magnitudes, Trends and Spatial Patterns, 3-4. http://www.macroscan .org/anl/mar08/pdf/Farmers_Suicides.pdf (accessed August 10, 2011). 870 For example, Tata Institute of Social Sciences, who conducted a study and prepared a report on the guidance of The Bombay High Court, has identified repeated crop failure, inability to meet the increasing cost of input- intensive cultivation, and indebtedness are the important reasons for farmer’s distress leading to suicides. The Indira Gandhi Institute of Development Research also conducted a household survey in Western Vidarbha 243 contend that socio-economic factors and failures of government policies are primary reasons.
From various reports and analysis one can reasonably conclude that among the major reasons for this agricultural crisis are: inadequate governments agricultural policies to promote industrial agriculture with the aim of increasing agricultural production for export rather than for local consumption, lack of public investment on agricultural research and extension (as low as 0.49 per cent of GDP),871 the changing of agrarian structures, globalization and trade
liberalization, declining area of cultivation per agricultural worker, growing indebtedness,
poor credit financial management, increasing cost of production, natural disasters like
droughts and floods, crop failures due to adulterated and spurious inputs, absence of safety
nets, and the slowdown in food grain production.872
The Expert Group, a committee appointed by the Ministry of Finance of India on 10
August 2006 to look into the problems of the agricultural crisis in its totality and suggest measures to provide relief to farmers across the country, in its report in 2007 highlighted that the root cause of the crisis is not indebtedness alone. It argues that indebtedness is just a symptom. The underlying causes are: stagnation in agriculture, increasing production and marketing risks, collapse of the extension system and a growing institutional vacuum, and lack of alternative livelihood opportunities. It also points out that the government’s neglect in designing proper agricultural development programs and effectively implementing them at the micro level is also a main cause for the agricultural crisis.873 The report also argues that
region of Maharashtra. According to this report among multiple factors the most common reasons are indebtedness (86 per cent), decline in economic position (74 per cent) and crop failure (40 per cent). As quoted in Srijit Mishra, “Agrarian Distress and Farmers’ Suicide in Maharashtra,” in Agrarian Crisis in India, ed. D. Narasimha Reddy and Srijit Mishra (New Delhi: Oxford University Press, 2009), 141-45. 871 Radhakrishna and Chandrasekhar, “Overview Growth,” 13. 872 R.S. Deshpande and Saroj Arora, “Editor’s Introduction,” in Agrarian Crisis and Farmers Suicide: Land Reforms in India. Vol.12, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 17; Despande and Shah, “Globalization, Agrarian Crisis and Farmers’ Suicide,” 125-26. 873 The Report of the Expert Group on Agricultural Indebtedness, by R. Radhakrishna, chairman (New Delhi: Department of Economic Affairs Government of India, July 2007), 96. http://www.igidr.ac.in/pdf/publication/ PP-059.pdf; http://www.indianfarmers.org/news_singlepage/EXPERT_GROUP_ARTICLES.html (accessed August 4, 2011); Radhakrishna and Chandrasekhar, “Overview Growth,” 13; R.S. Despande and Shah, “Globalization, Agrarian Crisis and Farmers’ Suicide,” 134-42. the drive towards diversification in favor of high value commercial crops has exacerbated the
situation of farmers, especially in rainfed areas. Since rainfed areas are prone to droughts due
to frequent absence of rainfall, farmers in these areas are at risk of large fluctuations in
output. Failure of high input-cost cash crops has driven many farmers to distress and
despair.874 Though in the short-term commercial crops have improved crop yields and
farmer’s income, yet it increases credit needs. Since most credit cooperatives and regional
rural banks do not function properly, the farmers are increasingly dependent on non-
institutional sources, paying exorbitant rates of interest. The faulty credit delivery mechanism
and the shrinking net income have led to growing indebtedness and widespread despair
among marginal farmers.875
Others have argued that the economic globalization and commercialization of
agriculture in India, which is taking place rapidly, boosting demand for fertilizers, pesticides,
and high-yielding seed varieties, are the root causes for agrarian distress. Social activist,
environmentalist and thinker Vandana Shiva attributes the farmers’ crisis to globalization of
agriculture that is a result of the combination of Structural Adjustment Programs of the World
Bank and the Agreement on Agriculture of the WTO. Their policies are motivated by concern
for corporate profit and the export of luxury goods and not by regard for the protection of
poor people’s livelihood and satisfaction of their basic needs.876 Shiva states that two of the
most important causes for the agrarian crisis are: 1). introduction of ecologically vulnerable
hybrid seeds and 2). the increased dependence of farmers on agro-chemical inputs such as
874 The Report of the Expert Group on Agricultural Indebtedness, 33, 73. 875 Radhakrishna and Chandrasekhar, “Overview Growth,” 13. Studies reveal that 70 per cent of marginal/landless farmers in India do not have bank accounts and 87 per cent do not have access to credit from a formal source. So they often borrow money from their relatives, friends and local moneylenders. The rural banks also regard financial services to the rural poor as highly risky and costly as repayments of loans are mostly irregular. On the other hand, small rural borrowers are also reluctant to borrow money from banks as they cannot easily borrow and repay in small installments. Besides, they are unwilling to undertake elaborate procedures that are required to open a bank account. Jha, The Indian Economy Sixty Years after Independence, 180-81. 876 Vandana Shiva, “Globalization of Agriculture, Food Security and Sustainability,” in Sustainable Agriculture and Food Security: The Impact of Globalization, ed. Vandana Shiva and Gitanjali Bedi (New Delhi: SAGE Publications, 2002), 11-12. 245 pesticides and fertilizers, which are associated with the use of hybrid seeds.877
In 1998 the World Bank forced India to open its seed sector to global agro-business
firms such as Monsanto, Cargill and Syngenta. These and other multinational seed companies
introduced new breeding strategies of uniformity and non-renewability with the aim of
increasing the profits of multinational companies (MNCs) and controlling genetic resources
of developing countries.878 This replaced traditional farm-saved seeds with economically
vulnerable hybrid seeds. Hybrid seeds promise a high yield, but they are also more prone to
pests and diseases. Moreover, the introduction of monoculture and the destruction of
biodiversity have increased pesticide resistance in pests and have increased farmers’
dependence on agro-chemical inputs such as pesticides and fertilizers.879 The privatization of
the seed sector has also changed the culture of agriculture. Instead of growing food that
maximizes ecological security and food security, farmers are induced to grow cash crops for
exports without proper assessment of the risk, cost, and vulnerability factors.880 Indian
agriculture has become a high-cost and market-led sector.881
The outcome of globalizing and commercialization of the agriculture sector is growing food insecurity among the rural poor, destruction of diverse sources of food, non- sustainable use of land and water, and the degradation of agricultural land due to excessive use of chemical fertilizers and soil erosion as a result of extensive cultivation.882 It has also
contributed to a growing culture of individualism among the farming community. The
877 Vandana Shiva and Afsar H. Jafri, “Seeds of Suicide: The Ecological and Human Costs of Globalization of Agriculture,” in ibid., 170. 878 Ibid., 171. 879 Shiva, “Globalization of Agriculture, Food Security and Sustainability,” 59; Shiva and Jafri, “Seeds Suicide,” 170; Ravikesh Srivastava, “Credit through Participatory Management: The Way for Rural Smile,” in Agrarian Crisis and Farmers Suicide: Land Reforms in India. Vol.12, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 332. 880 Shiva and Jafri, “Seeds of Suicide,” 173. 881 Amitava Mukherjee, “International Trade and Food Security in India,” in Sustainable Agriculture and Food Security: The Impact of Globalization, ed. Vandana Shiva and Gitanjali Bedi (New Delhi/Thousand Oaks: SAGE Publications, 2002), 298-99; A.R. Vasavi, “Contextualizing the Agrarian Suicides,” in Agrarian Crisis and Farmers Suicide: Land Reforms in India. Vol.12, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 74. 882 Shiva, “Globalization of Agriculture, Food Security and Sustainability,” 63; Reddy and Mishra, “Economic Reforms, Small Farmer Economy and Agrarian Crisis,” 49. customary traditions of sharing agricultural knowledge and interdependence of farmers are replaced by intense competition and growing distrust among farmers. One of the results is that any loss of crops and failure to repay the loans on time become a deeply personalized loss. In many cases, the fear of humiliations and shame in front of fellow farmer for failing to repay loans have coerced farmers to take the extreme step of committing suicide.883
The Central and State governments have undertaken various short-and long-term
schemes to handle the situation of farmers’ crisis. For example, the Indian government has
introduced schemes that include such measures as the following: immediate relief packages
to next-of-kin of suicide victims, packages of debt waiver of both institutional and non-
institutional loans, and measures to address the issue of sustainability of small farm and
marginal farmers.884 However, most of these schemes are introduced without involving the
farming community in the planning, implementation, monitoring and evaluation of these activities. In most cases the government planners and bureaucracy avoid the bother of encouraging the people affected to take responsibilities for their future lives.885
Linking the complex issue of agrarian distress to any one factor, including
globalization, is problematic. One cannot convincingly contend that globalization is the sole
responsible factor for the agrarian crisis. The roots of the present agrarian crisis can be traced
back to the mid-1980s. Since the mid-1980s the government of India, under the illusion that
India has achieved sustainable food self-sufficiency, began to neglect the agricultural sector.886 Hence, many study reports suggest multi-pronged approaches to address the crisis.
Several recommendations have been made to empower marginal and small-scale farmers and
883 Vasavi, “Contextualizing the Agrarian Suicides,” 77-79. 884 R.S. Deshpande and Saroj Arora, “Way Forward,” in Agrarian Crisis and Farmers Suicide: Land Reforms in India. Vol.12, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 411- 14. 885 Meeta Rajivlochan and M. Rajivlochan, “Providing a Level Playing Field for the Small Farmer,” in Agrarian Crisis and Farmers Suicide: Land Reforms in India. Vol.12, ed. Deshpande R.S. and Saroj Arora (New Delhi: SAGE Publications India Pvt Ltd, 2010), 398-99; Srivastava, “Credit through Participatory Management, 329. 886 D. Narasimha Reddy and Srijit Mishra, “Crisis in Agriculture and Rural Distress in Post-Reform India,” in India Development Report 2008, ed. R. Radhakrishna (New Delhi: Oxford University Press, 2008), 41-42. 247 to develop community-driven development projects. The Expert Group on Agricultural
Indebtedness suggests that the farmers’ crisis necessitates a whole range of programs -- from relief and rehabilitation to better infrastructure, watershed development, access to insurance, streamlined markets and enhanced rural-urban linkages and connectivity. But more importantly, it recommends that the farmers need to organize themselves into functional groups, such as SHGs, cooperatives and farmers’ associations, for collective actions from the grassroots level to policy-making bodies.887 Others have recommended a participatory credit
management model as a way out of the cycle of indebtedness and distress. This involves the
launching of small local self-help groups that are organized around income-generating
activities. These farmers can access credit from these groups at low rates of interest and on
easy conditions.888
2. Church in Action
John Paul II, in his encyclical Redemptoris Missio, speaks of “the paths of mission.”
He offers a list of such paths, including evangelical witness, proclamation of Christ the
Savior, conversion and baptism, forming local Churches, forming ecclesial basic
communities, incarnating the Gospel in peoples' culture, dialogue with other religions,
promoting development by forming consciences, and charity. These are the strategies the late
pontiff recommended for the manifestation and fulfillment of God's plan in our complex
world and history.889 In a similar way, the Catholic bishops of India acknowledge that within
the pluralistic fabric of the Indian society the Church in India needs a pluralistic approach to
her mission. They recognize that paths of “inter-religious dialogue, liberation of the poor,
transformation of the society according to the values of the Gospel, inculturation of the
Church and evangelization of cultures, services through various types of institutions and
887 The Report of the Expert Group on Agricultural Indebtedness, 91-92. 888 Srivastava, “Credit through Participatory Management,” 337-39. 889 John Paul II, Redemptoris Missio, nos. 41-60. http://www.vatican.va/edocs/ENG0219/P7.HTM (accessed July 18, 2011). promotion of the integrity of creation are all to be understood as legitimate and valid, important and urgent.”890
The Church in India is aware that to address the new challenges of the current globalization she “cannot afford to be merely an inward-looking Church. We have to be outward-and forward-looking as we go along with him. … We need now to rearrange our priorities and redirect our ecclesial energies to undertake our journey as an outward-looking
Church.”891 In this spirit the Church in India is engaged in discerning various ways and strategies to respond more creatively and effectively to the challenges of our time and to serve the Kingdom of God, which involves the whole person and all people of India. She is conscious of the importance of the active participation of the entire Church community, lay and ordained, for the service of one mission of the Church. One can find sufficient well researched theological and doctrinal reflections about the vision and mission priorities of the
Indian Church in various documents of the Federation of Asian Bishops’ Conferences
(FABC) and its numerous plenary assemblies, in the Synod of Asia (1998), in pastoral letters and statements of the Catholic Bishops’ Conference of India (CBCI) and in theological research works of Asian theologians.
The Church in India over the decades has made some efforts to respond to the situation of the poor and the marginalized through a range of healing and prophetic ministries. Committed individual Christians and several religious congregations are involved in works of charity and mercy, education and health services, welfare-related projects and in the mobilization and empowerment of the poor at the grassroots. Though the pendulum tends to swing more towards charitable works, several religious women and men and lay Christians
890 The Holy Cross International Justice Office, The Social Teaching of the Church in India, 54 http://www. Holycrossjustice.org/pdf/Asia/SocialTeachingoftheChurch inIndia/Part%20II-4.pdf (accessed July 20, 2011). 891 The FABC IV, no. 4.3.2. http://www.ucanews.com/html/fabc-papers/fabc1986.htm (Accessed July 10, 2011); Quatra, At the Side of the Multitudes, 97. 249 are actively engaged with dalits892, tribal communities and with rural women to empower them through conscientization and economic self-reliance projects. The critical self- awakening has helped many of these groups to organize themselves into agents and architects of social change. It has strengthened solidarity and confidence among the downtrodden to work together for social justice and structural transformation.893
Two of the most significant contributions for the poor by the Church in India are education and health service. Christians have been pioneers in the education of women, especially from the untouchables and tribal communities.894 According to the Catholic
Bishops Conference of India, the Catholic Church manages around 15,142 educational institutions – pre-primary schools (kindergarten & Nursery) 3,785; primary schools 7,319; secondary schools 3,765; colleges 240; medical/nursing colleges 28; and engineering colleges 5.895 In the area of health service, many Christian groups try to provide quality health service to the poor through their over 14,672 health-related institutions. Besides these formal institutions, the Church also runs schools for crafts and professional training, agricultural schools, technical schools, and several adult and rural education programs with the aim of enabling weaker sections of society to develop their capabilities and skills.896
In the context of growing rural poverty, mounting insecurity among casual unskilled
892 The word Dalit comes from the Sanskrit, which literally means "suppressed", "crushed", or "broken to pieces". The term Dalit is used by low caste people, traditionally regarded as untouchables, to describe their own community. Dalit activists define this word as, "A member of Scheduled Castes and Tribes, neo-Buddhist, the working-people, the land-less and poor peasants, women, and all those who are being exploited politically, economically, and in the name of religion." Who are the Dalit? http://www.nacdor.Org/TEXT%20FILES/Dalit. htm (accessed August 23, 2011). 893 Yvon Ambrose, “Oppression and Liberation: A Base for Theological Reflection on Indian Experience,” in Leave the Temple: Indian Paths to Human Liberation, ed. Felix Wilfred (Maryknoll, New York: Orbis Books, 1992), 42-44. 894 The Holy Cross International Justice Office, The Social Teaching of the Church in India, 128. 895 Church in India (C.B.C.I), http://www.cbcisite.com/church%20in%20india.htm (accessed July 22, 2011). These statistics vary according to different reports. For example, The Catholic Directory of India 2005-06 gives the following statistics about Catholic educational institutions: Colleges (359), Higher Secondary Schools (1,465), High Schools (3,372), Upper Primary schools (3,198), Lower Primary Schools (5,872), Nursery Schools (4,428), Training Schools (513), Technical Schools (900), and Professional Institutions (263). The Church has total 20,370 institutions with over 10 million students. As quoted in The Holy Cross International Justice Office, The Social Teaching of the Church in India, 139. 896 Leonard Fernando and G. Gispert-Sauch, Christianity in India: Two Thousand Years of Faith (New Delhi: Penguin Books India Pvt. Ltd., 2004), 236-39. workers and distressing despair within the marginal peasant community, the Church in India,
as recommended by the FABC, needs a more holistic and an integrated vision of mission. It
must be inclusive of both social praxis and internal liberation of individuals. The
accomplishment of the Church’s mission depends upon a mutual interaction of self-
awareness and social-awareness leading to total liberation of all people.897 Her mission
priorities should integrate the ministry of the Word and healing the broken world;
transformation of social structures and individual behaviors and attitudes for better living.898
In order to make an effective contribution to the process of humanizing the current globalization, the Church in India should concentrate on two dimensions of mission: first, as the Synod of Asian Bishops have rightly recognized, she “must be a prophetic voice for the poor, the oppressed, and the exploited.”899 In the current context of India the Church must
serve as a voice for unskilled casual workers, landless marginal peasants, and migrant
workers. This means that she not only addresses the symptoms of structural oppressions and
injustice, but more prominently commits herself to confronting the structural root causes of
poverty and injustice and transforming them.
Second, this necessarily requires that she becomes more a dialogical Church. In the
orientation of the FABC,900 this is a matter of becoming a Church that engages in dialogue and critical collaboration901 with the poor, NGO’s, civil-society organizations, all humanists
897 Xavier Irudayaraj, “Interiority and Liberation,” in Leave the Temple: Indian Paths to Human Liberation, ed. Felix Wilfred (Maryknoll, New York: Orbis Books, 1992), 122-24; Felix Wilfred, “Introduction,” in ibid., 6-7. 898 Michael Amaladoss, “Dialogue at the Service of Life,” (Paper presented for workshops of the Sixth Plenary Assembly of the Federation of Asian Bishops' Conferences at Manila, Philippines, January 10-19, 1995), http://www.ucanews.com/html/fabc-papers/fabc-72b.htm (accessed July 10, 2011); Aloysius Pieris, Fire & Water: Basic Issues in Asian Buddhism and Christianity (Maryknoll, New York: Orbis Books, 1996), 147 899 Peter C. Phan, ed., The Asian Synod: Texts and Commentaries (Maryknoll, New York: Orbis Books, 2002), 89. 900 Felix Wilfred holds that “if we were to summarize the orientation of the FABC in one word, then it is dialogue. It is around this focal point that the FABC’s understanding of the Church and its mission revolves.” Felix Wilfred, “The Federation of Asian Bishops’ Conferences (FABC): Orientations, Challenges and Impact,” in For All the Peoples of Asia: Federation of Asian Bishops’ Conferences Documents from 1970 to 1991, ed. Gaudencio B. Rosales and C.G. Arevalo (Maryknoll, New York: Orbis Books/ Quezon City, Philippines: Claretian Publications, 1992), xxiv-xxv. 901 I argue that the Church must be vigilant and cautious while collaborating with some NGOs, civil society and religious organizations, which under the name of service are promoting rightist religious activities. The growing 251 with or without faith, and other faith traditions that are committed to confront powerful evil structures and systems and to transform them. She must respect them as her collaborators and active partners in the Kingdom mission.902 This means that the Church in India should take conscious initiatives and make consistent efforts to recognize in them the presence and activities of the Holy Spirit and work together through a spirit of communion, collaboration, solidarity, participation, and co-responsibility to unveil and to build God’s Kingdom.903
Hence, her works of evangelization, inculturation, dialogue, justice, and option for the poor cannot be separate areas of concern, but rather will become integrated and dynamic aspects of one mission of love and service.904
The practical implications of being a prophetic and collaborative Church are many.
They include the admonition that the Church in India must read the signs of the times and discern her mission commitment in the context of the socio-cultural, economic and religious situation of India. This challenges her not to blindly implement an abstract and imported list of mission priorities that were developed by the Church in Rome. This demands that the
Church in India should re-evangelize herself, her theology and her vision of mission, through inculturation and indigenization.905 The Indian Church requires a profound transformation to become a Church truly of India and a Church of the poor. The Church in India, borrowing
Hindutva movement, that challenges the principles of liberal secular ideology, is spreading its ideology through myriad ways and projects across classes, castes, ethnic groups, and gender. Sujata Patel, “Seva, Sangathanas and Gurus: Service and the Making of the Hindu Nation,” in Religion, Communities and Development: Changing Contours of Politics and Policy in India, ed. Gurpreet Mahajan and Surinder S. Jodhka (New Delhi: Routledge Taylor and Francis Group, 2010), 102-04. 902 Quatra, At the Side of the Multitudes, 50. 903 Jeffrey G.L. Chang, Communion and Spiritual Leadership in Asia: Ordained Ministry in the Mission and Ministry of the Church in Asia in Light of the Documents of the Federation of Asian Bishop’s Conferences, 1970-2005 (Roma: Editrice Pontificia Universita Gregoriana, 2008), 176-80; Peter C. Phan, In Our Own Tongues: Perspectives from Asia on Mission and Inculturation (Maryknoll, New York: Orbis Books, 2003), 43. 904 The FABC, A Renewal of Church in Asia: A Mission of Love and Service (The Final Statement of the Seventh Plenary Assembly of the Federation of Asian Bishops' Conferences, 2000), III, http://www.Ucanews.com/html/ fabc-papers/fabc-93.htm (accessed August 10, 2011). 905 Aloysius Pieris, An Asian Theology of Liberation (Maryknoll, New York: Orbis Books, 1988), 39-40. Aloysius Pieris argues that to have authority, credibility and to be a sign of true liberation, the Church of Asia has to identify itself, through “baptismal immersion," in the liberative religious socialism of Asian tradition, which is practiced by the cosmic religiousness of the Asian peasants and the monastic communities of Buddhist and Hindu origin. Ibid., 43-45. Jon Sobrino’s idea, “should not be ashamed to be itself and act itself in a world of
poverty.”906
2.1. The Kingdom Mission of the Church of India
The FABC in its Fifth Plenary Assembly envisioned the mission of the Church in
Asia, in the context of poverty, injustice and oppression, as
…. being with the people, responding to their needs, with sensitiveness to the presence of God in cultures and other religious traditions, and witnessing to the values of God's Kingdom through presence, solidarity, sharing and word. Mission will mean a dialogue with Asia's poor, with its local cultures, and with other religious traditions.907
This implies that the Church in India must embrace a Kingdom-centered approach to her
mission. The primary concern of the Church should be to become a prophetic sign of God’s
Kingdom by promoting God’s universal love, justice, peace, and freedom in collaboration
with all people who are committed to harmony, justice, peace and fullness of life. Though the desire of the Church to expand her community by adding more baptized members into her ranks and to spread the institutional Church as fruits of her mission are genuine, these cannot be her primary goals in the context of India.908
In the current complex reality of India service to God’s universal love and fullness of
human life calls for various approaches, including a broad range of ministries and
commitments, such as proclamation of the Gospel and religious conversions. However, the
context of unjust social structures and institutionalized poverty cries for a living and concrete
prophetic witness to God’s integral Kingdom mission. This is more than mere verbal proclamation of Jesus Christ as the only savior for all humankind.909 The integral and holistic
906 Sobrino, No Salvation Outside the Poor, 32. 907 The FABC, "Journeying Together Toward the Third Millennium: The Final Statement of the Fifth Plenary Assembly, 1990,” no. 3.1.2. http://www.ucanews.com/html/fabc-papers/fabc 1990.htm (accessed July 10, 2011). 908 Peter C. Phan, “Challenges for Asian Christianity,” in The Future of the Asian Churches: The Asian Synod and Ecclesia in Asia ed. James H. Kroeger and Peter C. Phan (Quezon City, Philippines: Claretian Publications, 2002), 90. 909 George M. Soares-Prabhu, “Expanding the Horizon of Christian Mission: A Biblical Perspective,” in The 253 prophetic mission inevitably encompasses economic, socio-political, cultural and religious facets of people’s lives. The Church, as a symbol and servant of God’s salvific plan, must therefore courageously denounce the realities of poverty, injustice, oppression, exploitation, and marginalization of the poor that violate their right to experience the fullness of life.910
This prophetic commitment to integral Kingdom mission requires that the Church recognizes immense gifts and treasures within her own community and in other religions and in people’s movements and organizations. It would make the Church more humble and realistic to recognize that the Kingdom mission is neither the monopoly of the Church nor is she the sole possessor and proclaimer of God’s mission.911
The Indian Catholic bishops present a vision of society that is based on the Kingdom
values of justice, peace, harmony, freedom, equality, participation and love. They envision a
new society that fights for the liberation of all and pursues “the fulfillment of the deepest
personal aspiration and longings, as well as a radical transformation of society in all areas,
including its values, meaning systems, social relationships, policies, structures and
institutions.”912 This vision is in conformity with the vision developed by the FABC.913 The
Asian bishops, based on the universal, integral and inclusive salvific plan of God, declare that they are committed to “a new and just society, where men will uphold the dignity of the human person, provide the opportunities for development and progress, and promote that quality of life which would enable them to reflect their sonship in God.”914 The primary
reason for their condemnation of poverty is that it offends God’s plan and desire for all
humankind.
Dharma of Jesus, ed. Francis X. D’Sa (Maryknoll, New York: Orbis Books, 2003), 255-56. 910 Chang, Communion and Spiritual Leadership in Asia, 149-50. 911 Quatra, At the Side of the Multitudes, 196. 912 The Holy Cross International Justice Office, The Social Teaching of the Church in India, 64. 913 For a summary statement of the Church of Asia’s vision for a renewed Church of Asia, which is developed into eight movements, see the FABC’s document “The Final Statement of the Seventh Plenary Assembly, 2000,” Part I. http://www.ucanews.com/html/fabc-papers/fabc-93.htm 914 Quatra, At the Side of the Multitudes, 35-36. I propose that, alongside the FABCs Kingdom vision and ecclesiological models, the
Gandhian praxis model can complement and provide some insights for the Church in India to become a new way of being Church in India. Mahatma Gandhi’s life is an excellent example of a constructive fusion of theory and praxis; a vision and its actualization. Gandhi, a seeker of Absolute Truth as God, proposed that service of humankind through active participation in the life and struggles of people should be the path to realize the Truth. He comprehended that a society that was divided and devastated by colonial power, mass illiteracy, poverty, exploitation, caste discrimination, and fragmented on the basis of caste, gender and religion, the best way to bring transformation and unity was by awakening the masses, organizing them, and leading them by identifying with them through nonviolence into political and social freedom. Thus he successfully led a people’s movement by awakening the masses’ conscience and constructive programs, such as basic education, cottage industries, eradication of untouchability, equality of women, caste reforms, and communal harmony. His aim was to liberate people into true freedom from the enslaving political and economic dependency through the fullest utilization of human power and resources.915
Gandhi showed the world, through concrete actions, that we can more positively integrate various religious and cultural values and popular religious symbols with political, social and economic programs to transform society. He also proposed a model of development that is formed, controlled and managed by the active participation of the working class and a majority of people through cooperatives.916 He is also a good example of employing more creatively voluntary poverty, adherence to truth and love (Satyagraha), and non-violence as an effective path to protest, denounce and fight against institutionalized and organized structures of violence, exploitation and injustice that force people into poverty and
915 T.K. John, “Theology of Liberation and Gandhian Praxis: A Social Spirituality for India,” in Leave the Temple: Indian Paths to Human Liberation, ed. Felix Wilfred (Maryknoll, New York: Orbis Books, 1992), 80- 86. 916 Ibid., 99; Walter Fernandes, “A Socio-Historical Prospective for Liberation Theology in India,” in ibid., 20- 21. 255 marginalization.917
2.2. The PraxisOriented Dialogue and Collaboration
In the context of pluralism of religions, cultures, spiritualties and ethnicities where
Christianity, as a tiny minority (according to 2011 census Christians are about 2.3 per cent in
India918), is struggling to articulate her identity and her vision for human society, dialogue and collaboration with other religions, cultures and people of goodwill become an essential part of the Church’s mission. It is highly impossible for the Church in India, without cooperation and solidarity with others, to make visible and spread Kingdom values.919 Her mission models and approaches must be fruits of mutual inspiration, enrichment, critique, and sharing of experiences through dialogue, encounters, and critical engagement with people of other faith traditions or none, ideologies, civil society organizations and affected poor people.
Hence, she needs to collaborate with others in a spirit of, as the Asian Synod of Bishops in
1998 had envisioned, “openness to other believers, willingness to listen, and a desire to respect and understand others in their differences.”920
917 Pieris, An Asian Theology of Liberation, 37. 918 http://en.wikipedia.org/wiki/Demographics_of_India#Religious_demographics (accessed July 24, 2011). 919 The Pontifical Council for Inter-Religious Dialogue in its document Dialogue and Proclamation develops four types of interreligious dialogue: a) dialogue of life, where people strive to live in an open and neighborly spirit, sharing their joys and sorrows, their human problems and preoccupations. b) Dialogue of action, in which Christians and others collaborate for the integral development and liberation of people. c) Dialogue of theological exchange, where specialists seek to deepen their understanding of respective religious heritages and to appreciate each other's spiritual values. d) Dialogue of religious experience, where persons, rooted in their own religious traditions, share their spiritual riches with regard to prayer and contemplation, faith and ways of searching for God or the Absolute. Pontifical Council for Inter-Religious Dialogue, Dialogue and Proclamation: Reflection and Orientations on Interreligious Dialogue and the Proclamation of the Gospel of Jesus Christ, no.42.http://www.vatican.va/romancuria/pontificalcouncils/interelg/documents/rcpcinterelg_doc_19051991_ dialogue-andproclamatioen.html (accessed July 23, 2011). 920 Phan, The Asian Synod: Texts and Commentaries, 158. Dialogue expects the participant to be forthright and honest about one’s own faith and beliefs in God. At the same time it demands a deep humility to listen and openness to other partners in dialogue. It does not want a Christian participant to compromise his or her belief in the uniqueness of Christ’s mediation in human salvation. The purpose is not to embrace a pluralist position, as proposed by Paul Knitter, Roger Haight and other theologians, and relativize salvation through Jesus Christ. The focus should be on witnessing and testifying to the truth of one’s own religious faith without making arrogant judgments about the beliefs and practices of other religions. While recognizing that one’s own religion offers a path to salvation and truth but humbly recognizing one’s ignorance about the presence or absence of salvific truth in other religious traditions. True dialogue is therefore interplay between humility and convictions. In dialogue a Christian seeks to identify signs of Christ’s presence and activities of the Spirit in other religions and traditions. Catherine Cornille, “The Role of Witness in Inter-Religious Dialogue,” in From World Mission to Inter-Religious Witness, ed. Linda Hogan, Solange Lefebvre, Norbert Hintersteiner, and Felix Wilfred, Besides, over the past two decades, as a consequence of communalization of national politics, there has been a revival of extreme religious fundamentalism and communal polarization in India. The Hindutva921communal movement, which is robustly sponsored and championed by Sangh Parivar, Rashtriya Swayamsevak Sangh (RSS) and other communalist groups, is actively engaged in spreading hatred and false allegations about the Christian community and thus raising serious concerns about the security of the Christian community.
Christians are accused of being a Western and privileged institution that is engaged in proselytizing and maintaining the legacy of colonial powers by perpetuating the colonial projects and the supremacy of Western culture.922
Often most leaders of fundamentalist groups, in collaboration with corrupt civil authorities who want a bigger share of economic benefits and political power, use religion as a most effective weapon to maintain the status quo of marginalized groups to play their game.
They try to suppress any movements and organizations that question the existing unjust socio-political, economic and religious structures. Hence, while these groups praise
Christians for their relief works, education and medical services, and various charitable projects, they condemn any social and economic-action commitments to mobilize and raise critical awareness of the poor as another subtle strategy to convert the poor to Christian faith.
Therefore any individual Christian or Christian institution, organization, or association that is
Concilium 2011/1 (London: SCM Press, 2011), 64-65; Avery Cardinal Dulles, “World Religions and the New Millennium: A Catholic Perspective,” in In Many and Diverse Ways: In Honor of Jacques Dupuis, ed. Daniel Kendall and Gerald O’ Collins (Maryknoll, New York: Orbis Books, 2003), 10-12; Claude Geffre, “From the Theology of Religious Pluralism to an Interreligious Theology,” in ibid., 52-53. 921 Hindutva should not be identified with Hinduism, as some Hindu communalists do. Hinduism is more of faith and a way of life, while Hindutva is a political ideology that propagates the idea that India is Hindu and Hindu is India (Hindu Rashtra). It is obsessed with a communal agenda. It asserts that all people living in India must identify themselves as Hindus, at least culturally. Crusaders of this ideology work by creating a fear that Hindu community is under a serious threat of being “swamped demographically, swayed away culturally and subjugated economically by other communities/nations.” Therefore they call upon the Indian people to preserve, promote, and develop Hinduism and its culture from other communities and nations. They claim that their mission is to construct a strong and powerful Hindu India. Their objective is to convert the demographic majority of Hindus into a political majority. Pralay Kanungo, “Hindutva’s Discourse on Development,” in Religion, Communities and Development: Changing Contours of Politics and Policy in India, ed. Gurpreet Mahajan and Surinder S. Jodhka (New Delhi: Routledge Taylor and Francis Group, 2010), 86-87, 98; D.L. Sheth, “Political Communalization of Religions and the Crisis of Secularism,” in ibid., 43-44. 922 Fernandes, “A Socio-Historical Prospective for Liberation Theology in India,” 9-10. 257 actively involved at the grassroots is constantly harassed, attacked, and falsely accused as anti-nationalist, as a supporter of foreign imperialism and a destroyer of Indian cultural heritage and social harmony.923
Moreover, though the Church in India is admired for her contribution to education, health and works of charity, all of which have provided much needed relief to the vulnerable, her popular image in India continues to be an overly-institutionalized and foreign-funded religion with elite and powerful educational and medical institutions. The common perception is “a rich Church working for the poor.”924 Overcoming these popular impressions and stereotypes is a challenge that the Church in India needs to address so as to become more effective in her mission. She must, with courage and creativity, find new ways to present her true identity and authority in India. In this context, proclamation of Jesus’ message and mission cannot have any other form than the witness of her life and dialogue with others with a profound respect for life-convictions of others.925 Dialogue cannot be an isolated activity, but rather an integral part of evangelization and proclamation. There has to be a dialectical relationship between dialogue and proclamation.926
Beyond the aforementioned pragmatic reasons, the FABC and the CBCI have developed several theological rationales, based on the Kingdom vision, for the Church’s
923 Felix Wilfred, “Liberation in India and the Church’s Participation,” in Leave the Temple: Indian Paths to Human Liberation (Maryknoll, New York: Orbis Books, 1992), 189-90; idem, “Action Groups and the Struggle for Justice in India: Ecclesiological Implications,” The Ecumenical Review 39 (July 1987) : 300. 924 Pieris, An Asian Theology of Liberation, 36. 925 Arij A. Roset Crollius, “Inculturation in Asia and Ecclesia in Asia,” in The Future of the Asian Churches: The Asian Synod and Ecclesia in Asia, ed. James H. Kroeger and Peter C. Phan (Quezon City, Philippines: Claretian Publications, 2002), 103. 926 Chang, Communion and Spiritual Leadership in Asia, 140. Evangelization and dialogue are not synonymous and evangelization cannot be reduced to mere dialogue. These are two different elements in scope. “Dialogue does not seek the "conversion" of others to Christianity but the convergence of both dialogue partners to a deeper shared conversion to God and to others; by contrast, proclamation invites others to become disciples of Christ in the Christian community.” Jacques Dupuis, “Interreligious Dialogue, a Challenge to Christian Identity,” Swedish Missiological Themes 92, no. I (2004) : 23. The document Dialogue and Proclamation recognizes that though interreligious dialogue and proclamation are not on the same level they, “are both authentic elements of the Church's evangelizing mission. Both are legitimate and necessary. They are intimately related, but not interchangeable .... The two activities remain distinct, but... one and the same local Church, one and the same person, can be diversely engaged in both.” Pontifical Council for Inter-Religious Dialogue, Dialogue and Proclamation, no.77. engagement in dialogue. They argue that the ultimate motivation and basis for dialogue is
God’s universal Kingdom mission and God’s redemptive action reaching to all people.
Their main reasons for dialogue with others can be summarized into three:
First, in the context of India, where massive poverty, injustice, religious pluralism, and
cultural diversity are realities of life, the Indian bishops recognize that dialogue with the cultures, religions, and the poor,927 is an important framework for the fruitful proclamation of
Jesus Christ and God’s Kingdom in India.928 Dialogue is considered as a constitutive part of the proclamation. They propose that “dialogical model is the new Asian way of being
Church, promoting mutual understanding, harmony and collaboration.”929 Collaboration and
networking with others are encouraged not simply as good strategies for peaceful
coexistence, where differences and commonalities are recognized and respected, but rather as
most effective and creative ways to proclaim the good news of Jesus Christ in India.930
Dialogue and genuine participation with various groups are therefore not seen as substitutes for proclamation.931
Second, bishops invoke the universal nature of God reign. The Church recognizes that
members of other religious traditions are pilgrims and co-participants in the Kingdom along
with Christians. In the face of the dark realities of extreme poverty, injustice, and
marginalization, the FABC declares that many great religious traditions in Asia have “a
crucial role to play in God’s great enterprise to bring peace, communion and a more humane
927 Phan, The Asian Synod: Texts and Commentaries, 169. 928 Dialogical view of proclamation sees proclamation not as an attempt to convince or alter the other, rather as an offer to another to consider whether the language of faith makes sense for his/her existence. It involves a process in which the believer will discover that God is at work in the other in ways that he\she had not previously known. Hence, proclamation will necessarily lead the proclaimer into a deeper knowledge of God through encounter with the other. James Gerard Mcevoy, “Proclamation as Dialogue: Transition in the Church World Relations,” Theological Studies 70 (2009) : 900-02. 929 Phan, The Asian Synod: Texts and Commentaries, 21. 930 Ecclesia in Asia, nos. 29-31; Michael Amaladoss, “Liberation as an Interreligious Project,” in Leave the Temple: Indian Paths to Human Liberation, ed. Felix Wilfred (Maryknoll, New York: Orbis Books, 1992), 166. 931 Phan, In Our Own Tongues, 18. 259 way of life to all people in Asia, indeed to the whole human family.”932 Hence it argues that
God’s Kingdom extends beyond the limits of the Church. It holds that all humanity, in their cultural and religious diversity, are pilgrims journeying together towards the Kingdom of
God as their ultimate goal.933The FABC also recognizes that the other religions are not only co-pilgrims toward the Kingdom, but also active partners in the realization of the Kingdom in history.934 Hence, it argues that solidarity and cooperation with people of all faiths are positive elements for the service of humanity.
Third, the bishops point to universal presence and action of the Spirit of God. The
FABC acknowledges the presence and work of the Holy Spirit both within the Church and outside its visible boundaries. The FABC holds, “the Spirit acts in freedom and His action cannot be reduced to persons, traditions, institutions or problems of relationships. The Spirit’s action, His presence and ministry can – and must – be discerned both in other religious and even in secular movements that may be shaped and leading to the Kingdom of God.”935
Many Asian theologians emphasize that the Church in India, to discover her Asian identity and to acquire her authority, must reexamine critically her attitudes and action priorities. She must make serious efforts to become a Church of India and not just remain a
Church in India. This demands an extensive and conscious immersion into cultures, religions
932 BIRA IV/12, “Final Statement of the Twelfth Bishops’ Institute for Interreligious Affairs on the Theology of Dialogue,” no. 7, in For All the Peoples of Asia: Federation of Asian Bishops’ Conferences Documents from 1970 to 1991, ed. Gaudencio B. Rosales and C.G. Arevalo (Maryknoll, New York: Orbis Books, 1992), 326. 933 Ibid., nos. 36-41. 934 Quatra, At the Side of the Multitudes, 49-50. 935 BIRA IV\I, “Report on the Assembly of the First Bishops’ Institute for Interreligious Affairs on the Theology of Dialogue,” no. 10, in For All the Peoples of Asia: Federation of Asian Bishops’ Conferences Documents from 1970 to 1991, ed. Gaudencio B. Rosales and C.G. Arevalo (Maryknoll, New York: Orbis Books, 1992), 249. The FABC at its Sixth Plenary Assembly affirmed the presence and activity of life-giving elements of the Spirit in the Asian traditions and cultures in their “growing consciousness regarding human dignity and the empowerment of the poor, the growing voices of groups and peoples for humanized development, and the cries of the marginalized groups for participatory and democratic governance ..., and the solidarity of committed groups and people in the struggle for the rights of women, children, especially the girl child, and those of indigenous peoples ... and the efforts of many groups to foster dialogue with peoples of other faiths." The FABC, "Christian Discipleship in Asia Today: Service to Life: Sixth Plenary Assembly Final Statement, Manila 1995,” no.8. http://www.ucanews.com/html/fabc-papers/fabc 1995.htm (accessed July 15, 2011). John Paul II in his encyclical Redemptoris Missio emphasizes the universal presence of the Holy Spirit. He states, "The Spirit's presence and activity affect not only individuals but also society and history, peoples, cultures and religions." (Redemptoris Missio, no. 28). and the poverty of the Indian people. Aloysius Pieris argues that the Church in Asia must
undergo double baptism to become truly a local church of Asia. He says that the Church truly
becomes a local Church of Asia when she is “baptized in the Jordan of Asian religion and on
the Calvary of Asian poverty.”936 In practice this means that she changes her approach and
her attitudes in developing and implementing her mission activities. Her first and main
concern must be not to satisfy the Church in Rome or be “more Roman than Rome,” but
rather to respond more effectively to the challenges of Indian society. Therefore her pastoral
and missionary models and priorities should evolve from a proper awareness of hard realities
of the Indian people and in being in solidarity with life experiences, traditions, cultures,
sufferings and struggles of the people. In short, the mission of the Indian Church should be
characterized by courage, creativity, communion, participation, co-responsibility and
collaboration at all levels and all people of good will, especially through solidarity and
dialogue with the poor.937
I would argue further that, without belittling the important intellectual dialogues that
take place at scholarly seminars and conferences and spiritual dialogues that take place among selected open-minded religious leaders and intellectuals,938 the emphasis should be
more on dialogue of life and action with the poor at the grassroots, civil-society
organizations, and popular cultures. This point receives affirmation from some of the most
prominent Asian theologians -- Aloysius Pieris, Jacques Dupuis, Michael Amaladoss,
Sebastian Kappen, Felix Wilfred and others – who argue that dialogue must go hand-in-hand
with actions of liberation for and with the poor. They propose that a fourfold dialogue –
dialogue of sharing a common life, dialogue to work together for social justice and peace,
936 Pieris, An Asian Theology of Liberation, 50, 45-50; Edmund Kee-Fook Chia, “Mission as Dialogue: An Asian Roman Catholic Perspective,” in Mission after Christendom: Emergent Themes in Contemporary Mission, ed. Obgu U. Kalu, Peter Vethanayagaminy, and Edmund Kee-Fook Chia (Louisville, Kentucky: Westminster John Knox Press, 2010), 152; BIRA IV/12, “Final Statement of the Twelfth Bishops’ Institute for Interreligious Affairs on the Theology of Dialogue,” no. 50. 937 Phan, “Challenges for Asian Christianity, 83-84. 938 The Holy Cross International Justice Office, The Social Teaching of the Church in India, 183. 261 dialogue of intellectual exchange, and dialogue of sharing religious experiences – must be an intrinsic dimension of evangelization.939 This implies that the Church in India must become
not only a Church of India, but also a Church of the poor. The dialogue with the poor provokes and demands that the Church must become humble, listening, learning, self- emptying, simplicity in her life-style, prophetic and truly a Church for, with, and of the poor.940
In the spirit and vision of Vatican II941 the Church in India should make a clear and
conscious option to stand on the side of victims of globalization. This demands much more than merely channeling certain financial resources and personnel to work for the poor. It
involves that the Church, as the FABC strongly emphasizes, becomes “a Church of the poor,” even becoming a “poor Church,” by being with the poor, sharing their lives and aspirations, hopes and despairs, knowing their powerlessness and their struggles, and experiencing the reality from their perspective. This demands that the Church is actively present with the poor
to defend their basic rights when they are violated.942 This necessarily involves confrontation
with the oppressors to resolve structural injustices, without actively engaging in violence.943
An action-oriented dialogue is more concerned with real issues and problems that affect the lives of the vast majority of people. It liberates the Church from being in a world of abstract theories, moral idealism and barren intellectualism. The focus of dialogue-in-action is a common concern for humanity and its development. This common concern is based
939 Peter C. Phan, “Jacques Dupuis and Asian Theologies of Religious Pluralism,” in In Many and Diverse Ways: In Honor of Jacques Dupuis, ed. Daniel Kendall and Gerald O’ Collins (Maryknoll, New York: Orbis Books, 2003), 73-74. 940 James H. Kroeger and Peter C. Phan, The Future of the Asian Churches: The Asian Synod and Ecclesia in Asia (Quezon City, Philippines: Claretian Publications, 2002), 17, 25, 84. 941 Which declares, “The joys and the hopes, the griefs and anxieties of the men of this age, especially those who are poor or in any way afflicted, these too are the joys and hopes, the griefs and anxieties of the followers of Christ.” Second Vatican Council, “Gaudium et Spes,” no. 1, in Catholic Social Thought: The Documentary Heritage, ed. David J. O’Brien and Thomas A. Shannon (Maryknoll, New York: Orbis Books, 1992), 166. 942 Quatra, At the Side of the Multitudes, 120-21; Soosai Arokiasamy, “Synod for Asia: An Ecclesial Event of Communion and Shared Witness of Faith,” in The Asian Synod: Texts and Commentaries, ed. Peter C. Phan (Maryknoll, New York: Orbis Books, 2002), 186-87. 943 Sobrino, No Salvation Outside the Poor, 31. on common human and spiritual values, such as respect for life, identity, freedom,
conscience, equality, justice, fellowship, and peace.944
In India, besides dominant religions and cultures such as Hinduism and Buddhism,
there are several popular religious and cultural traditions with immense potential to contribute
to building a more humane and just world. Popular religiosity and culture have functioned as
a rallying point for the poor and marginalized groups in their struggles. These have helped to
revive their identity, improve their self-image, and affirm their right to full dignity.945 The
Indian Church needs to recognize the liberating role these traditions and cultures play in the process of social change and should dialogue with them.946
There are also several individuals and groups – intellectuals, retired judges, lawyers,
journalists, freedom fighters, students, voluntary groups, social action groups, and NGOs –
that are actively championing the cause of oppressed groups and participating with the poor in their struggle for liberation. Most of these individuals, groups, organizations, movements, and NGOs are sincerely engaged in developing alternatives to the current economic
globalization (the topic of my second chapter).947 For example, the Indian Church can
collaborate and network with rural women’s movements, dalits movement of the
untouchables, farmers’ movements, tribal movements, or labor unions’ movements that have
become forces to reckon with in Indian society. Critical dialogue of action and collaboration
with these groups and organizations, beyond the interreligious dialogue of theological
discourse, is an essential dimension of the Church’s commitment to challenge and humanize
the current neo-liberal globalization.
Kerala Independent Fish Workers Federation is a success story of dialogue of action
of various religions at the grassroots. The fishing community on the coast of Kerala consists
944 Amaladoss, “Dialogue at the Service of Life,” 945 Fernandes, “A Socio-Historical Prospective for Liberation Theology in India,” 29. 946 Wilfred, “Introduction,” 3-4. 947 Wilfred, “Liberation in India and the Church’s Participation,” 181-82. 263 of Latin Catholics, Hindus and Muslims. Illiteracy, malnutrition, poor hygiene conditions, and premature death characterize the fishing community living on this coast. For decades they had been exploited and marginalized by mainstream political parties and money-lenders since they were unorganized and divided on the basis of caste and religion. It was in this context that a group of young and dedicated social workers, progressive members of the
Christian clergy and members of some voluntary organizations came together in 1969-70 and formed independent unions in several districts of Kerala. In 1980 all these unions were brought together under one umbrella body: Kerala Swathanthra Malsya Thozhilali (Kerala
Independent Fish Workers) Federation. Today the federation operates along the 590 kilometer coastal line covering 222 coastal villages, 113 inland fishery villages and over one million fisher folk. Its objectives are two-fold: 1) to ensure the socio-economic and political welfare of all fishing community, including those workers who are engaged in marketing and distribution both in the marine and inland sectors; and 2) to guarantee that they fully enjoy all benefits of their rights and grants that are entitled to them.948
In more concrete terms, the success of dialogue-in-action with the poor requires at
least two important things: empowerment of the poor and building basic human communities.
2.2.1. Empowerment of the Poor
As discussed in the earlier sections of this chapter the landless marginal farmers and
unskilled casual workers have become ‘voiceless’ and powerless groups in India. Since they
enjoy neither political clout nor economic power, besides being illiterate, their basic concerns
are comprehensively muted in Indian politics and their interests are poorly articulated or/and
inadequately represented. Moreover, due to their daily struggle to survive and their lack of
education and knowledge about the Indian legal system, the existence and services of human
948 Kerala Independent Fish Workers Federation, “History and Objectives,” in http://www.keralafishworkers.in/ history.htm (accessed August 20, 2011). For more information about the Kerala Independent Fish Workers Federation visit http://www.keralafishworkers. in/default.htm. rights and other democratic institutions, their power for self-assertion and their determination
to engage in protracted political struggles to assert their rights are limited. Hence, most often
their solidarity and partnership with other groups and organizations become the most
effective means to assert their rights and demands. Unfortunately the marginalized and casual
workers are ill-placed to be attractive partners for solidarity. For example, patterns in the
‘informal sector’ – agricultural laborers, small farmers, artisans, vendors, casual industrial
laborers – have gained little solidarity from trade unions in India. Most trade unions have
focused their major activities on the ‘formal’ sector, especially employees of the public sector
and major industries.949
On the other hand, there is a sprouting of people’s grassroots movements and social
action groups in India. The main objective of these action groups and movements is to free
the marginalized, the underprivileged and the oppressed from various kinds of injustice and exploitation. They are attempting to bring about a transformation in the existing social, political and economic order.950 These groups and movements through a process of social
analysis and reflections have helped the marginalized and exploited groups in India to
become more conscious of their own power as an organized and united group. So they
motivate the poor to organize themselves to overcome their economic, social, cultural,
political and religious oppressions. For example, the dalits movement, tribal movement,
farmers’ movement and women’s movement have become more vocal about their rights and
are challenging destructive structural forces that violate their basic rights. These organizations and movements critically evaluate economic liberalization and condemn its adverse consequences for the poor. The poor through their organizations and associations are developing their own leadership and identity and are growing in self-confidence. These
949 Dreze and Sen, India: Development and Participation, 28-31. 950 Sanjit Roy, "Grassroots Initiatives in India: Attempts at Delegitimizing a Creative Process. Vested Interests at Work," Economic and Political Weekly, 11 November 1983, 259-62; Walter Fernandes, "Some Dilemmas Facing Action Groups," Social Action 34 (1984) : 197-215; Wilfred, “Action Groups and the Struggle for Justice in India,” 291-93. 265 movements and organizations do not focus merely on material advantages but also on human dignity and their political, social, and religious rights. These groups are demanding that their self-dignity, freedom, creativity and capacity to make their own decisions must be recognized and respected.951
Opting to be a Church of and with the poor includes empowerment of the poor and
recognizing them as agents of social transformation. The FABC explains that the option for
the poor means “to accept the poor not as passive beneficiaries of the Kingdom, but as agents
and reference point in the building of a new society where God’s Reign can take concrete
form.”952 Strategies to empower the poor differ and vary according to the context.
Nevertheless, it should include at least four things: access to information, inclusion and
participation, accountability, and local organization capacity.953 Most of the poor in rural
India lack relevant, timely and critical information about their rights, basic government
services, markets, prices, and financial services.
A growing body of literature shows that there is a close relationship between
empowerment954 and the effectiveness of development. Amartya Sen, as discussed in chapter
two, argues that removal of unfreedoms is a constitutive element of development. This implies that proper opportunities and facilities must be created and that all people should be given a proper chance to develop their capabilities and their rights. An empowerment agenda
demands that the government invests more in developing the poor people’s skills, resources,
and capabilities through quality education, access to good health care and proper information,
availability of land, capital, markets and infrastructure. It involves taking right actions to
remove formal and informal institutional barriers that prevent the poor from improving their
951 Fernandes, “A Socio-Historical Prospective for Liberation Theology in India,” 29. 952 Quatra, At the Side of the Multitudes, 161. 953 Narayan Deepa, ed., Empowerment and Poverty Reduction: A Source Book (Washington, DC: The World Bank, 2002), 18. 954 Empowerment is broadly defined as an expansion of freedom of choice and action to shape one’s life. In the context of the poor it means “the expansion of assets and capabilities of poor people to participate in, negotiate with, influence, control, and hold accountable institutions that affect their lives.” Ibid.,14. well-being. It supports a strategy of building on poor people’s strengths, energies, values,
initiatives, skills, and resources and make them architects of their liberation from poverty and
oppression. It thus recognizes and treats poor people as valuable and capable agents of social
change.955
The empowerment of the poor is a process that includes conscientization and
organization of the poor. Conscientization of the poor involves a critical analysis of the
structural causes of poverty and marginalization. It also includes awakening the conscience of
the poor about their power and capacity to become true agents of their own liberation. Thus it
involves organizing, mobilizing, and educating the poor with in-depth analysis and reflection,
plans and programs to restore their self-confidence and strengthen their convictions. In other
words, it is a process of equipping the poor with proper knowledge and courage to become true architects and channels of social transformation by actively participating in decision- making, implementation, monitoring, and evaluating the process.956
Empowering the poor also includes supporting and strengthening the local grassroots
to organize themselves into co-operatives. For the liberation of the poor the co-operatives at
the grassroots are crucially important. They can be catalysts to develop alternative institutions
for self-governance and economic initiatives according to the needs of the local communities.
Collective capacity is a power for the poor to overcome their problems and their exclusivism
in society. Poor people’s collective action and solidarity also increases the possibilities for
quality education, proper health care services, rights to basic needs, greater sharing in natural
resources and participation in economic opportunities.957 Grameen Bank model in
Bangladesh developed by Mohammed Yunus is a good model to build successful co-
operatives at the grassroots. Today it is owned by over 8.37 million poor rural women and
has 2,565 branches. It works in 81,379 villages. Over the past 35 years it has helped
955 Ibid., xvii, 16-17. 956 Quatra, At the Side of the Multitudes, 163. 957 Deepa, Empowerment and Poverty Reduction, 15. 267 thousands of poor people, especially rural women, to move out of their poverty and misery.958 The success story of this micro credit project also illustrates that programs and plans work successfully when the people at the grassroots and of local communities are actively involved in the whole process of analysis, planning, decision making, implementation, and evaluation of the plans and outcomes of a project.959
2.2.1.1. Empowerment and Education
People can actively participate and fruitfully benefit from economic globalization if they are endowed with proper knowledge, skills and good education. Adequate education not only empowers an individual person, but also a whole community.960 In a rapidly globalizing
India, where education is increasingly commercialized and privatized, the Church must invest more of her personnel and resources in providing quality primary education for rural children, for drop-outs, and for poor girl children. The Church should also encourage research projects that are oriented toward serving the poor better.961
Illiteracy is one of the major problems of India. Though the latest census reports a 9.2 per cent rise in the literacy rate in India (according to the 2011 census India has a 74.04 per cent literate population aged seven and above), yet India has the largest illiterate population of any nation on earth.962
958 Grameen Bank, “Grameen Bank at a Glance, 2011,” nos. 2-7, in. http://www.grameen-info.org/index.php? Option=com_content&task=view&id=26&Itemid=0 (accessed August 5, 2011). For more information about the Bank visit http://www.grameen-info.org/ 959 Catherine M. Harmer, The Compassionate Community: Strategies that Work for the Third Millennium (Maryknoll, New York: Orbis Books, 1998), 138. 960 World Commission on the Social Dimension of Globalization. A Fair Globalization: Creating Opportunities for All (Geneva: International Labor Office, 2004), 62. 961 Felix Wilfred, Asian Dreams and Christian Hope: At the Dawn of the Millennium (New Delhi: ISPCK, 2000), 64. 962 For information on the 2011 literacy census in India visit http://www.censusindia.gov.in/2011-prov- results/datafiles/india/Table -2(3)_literacy.pdf Moreover, there are enormous variations and disparities in the literacy rate and educational achievements across the country. These exist between states, urban and rural population, among different castes and social groups and between male and female population. For example, according to the 2011 census Kerala has the highest literacy rate (at 93.91 per cent) followed by Lakshadweep (at 92.28 per cent), while a poor state of Bihar is at the bottom of the ladder with a literacy rate of 63.82 per cent followed by Arunachal Pradesh at 66.95 per cent. Literacy between male and female shows a great disparity, with 82.14 per cent of the male population being literate and only 65.46 per cent of females being literate. http://articles.economictimes.indiatimes.com/2011-03-31/news/293661421literacy-rate-centage-points-males Though India has achieved relatively strong progress in higher education and
scientific research, its progress in basic primary education is deplorable. Government inaction
regarding expanding elementary education has caused a real barrier against sharing the fruits
of industrialization and of economic growth by all people.963 The World Bank Indicators
reveal that in the field of elementary education India has done worse than some of the poorest
countries in the world. India’s literacy rate is below that of Sri Lanka, Ghana, Kenya,
Philippines, and Zimbabwe. Even a poor country like Bangladesh achieves average school
attendance at levels quite similar to India.964 Moreover, much is at stake with regard to the
quality of schooling. Most of the public schools lack properly trained teachers, teaching aids,
class rooms, and other facilities like clean drinking water and toilets. This discourages
parents from sending their children to schools and children from going to schools, even when they have genuine interest in education.965
An active participation in the fast-growing and knowledge-based economy requires
people with higher education and more skills. Since in this post-liberalization era, India’s
economy is concentrated more in urban-oriented economic activities, the demand for quality
higher education and professional education in India has risen sharply. However, building proper facilities and infrastructure for higher learning are not high enough priorities. Most well-managed and better-equipped -- with quality teaching staff and modern facilities -- educational institutions are concentrated in urban areas. These are largely managed by private trusts, which in most cases run them as business enterprises to make profits. The outcome is that the cost of higher education has skyrocketed, and is well beyond the means of poor population. Most colleges in rural areas are of low standard with poor teaching facilities and
(accessed July 22, 2011). 963 Dreze and Sen, India: Development and Participation, 67, 77. As a ray of some hope last year (April 2010) the Indian government implemented the Right of Children to Free and Compulsory Education Act -- popularly referred to as the Right to Education (RTE) Act — that provides a legal right to students between 6 and 14 years old to demand schooling. 964 Ibid., 12. 965 Ibid., 149, 153, 158. 269 infrastructure. This has widened the gap of quality education and hence job opportunities between urban and rural people. In the labor market the students from sub-standard rural colleges are unable to complete with students from prestigious private colleges for better jobs.966
There is a dialectical relationship between educational progress and social change.
The spread of education on the one hand helps to overcome inequalities of caste, class and
gender, and on the other hand removal or reduction of these inequalities contributes to spread
education further. Basic education is an essential element for social change. As discussed in
the earlier section, genuine liberation should come from the grassroots. This presupposes that
the oppressed are awakened about their situation and root causes of their poverty and
oppression. This awakening is a task of education.967 Amartya Sen argues that education enhances a person’s capabilities and allows him or her to realize his/her full potential. Many social leaders and reformers in India, such as Dr. B. R. Ambedkar, Swami Vivekananda,
Rabindranath Tagore, Mahatma Gandhi, Jayaprakash Narayan and many others recognized and recommended that education must be given a high priority in the struggle to liberate the oppressed and poor from their disadvantages.968
The Catholic bishops have made several recommendations and proposals to make
education accessible and relevant to the poor. They have proposed: 1) to give priority to the
poor in the admission policies, 2) to focus on the social purposes and contents of education,
3) to form future leaders with social values and consciousness who can be true agents of
social change, and 4) to give priority to out-of-school and non-formal education and to
pioneer new structures and alternative methods of education. In short, the bishops propose
966 S.R. Hashim, “State of Higher Education in India,” in India Development Report 2008, ed. R. Radhakrishna (New Delhi: Oxford University Press, 2008), 76-83. 967 George M. Soares-Prabhu, “The Liberative Pedagogy of Jesus: Lessons for an Indian Theology of Liberation,” in Leave the Temple: Indian Paths to Human Liberation, ed. Felix Wilfred (Maryknoll, New York: Orbis Books, 1992), 113-14. 968 Dreze and Sen, India: Development and Participation, 143. that our educational institutions and curriculum must promote social justice, integral development and become effective instruments of social change.969
However, most of the Christian educational institutions are concentrated in cities and cater mostly to the rich and upper-middle-class households. Moreover, many Catholic educational institutions that were started with the purpose of serving the poor have become institutions for the elite. Hence, the Church must honestly and responsively evaluate her educational institutions -- its priorities, policies, options, and achievements -- and identify some of the key avenues that must be changed so as to make them effective instruments in building a just and equal society.
The Church in India should substitute her rhetoric of being a Church for the poor by seriously advancing a concrete plan of action with specific, realistic, achievable and time- bound goals. This implies that she identifies the best forms of educational ministries and willingly and courageously places the interests of the marginalized people atop her own institutional interests and benefits. It also demands that she specifies very clearly her target groups and develops the most efficient methods and infrastructure to offer quality standard education to her target people. This may require closing down some of the old prestigious institutions and setting up new educational ventures and redistribution and utilization of personnel and finances.970
2.2.2. Basic Human Communities
In the pluralistic religious, cultural and socio-political context of India, the Church’s commitment to stand with the poor -- to empower them and to fight for justice -- requires that the Church facilitates in the formation of basic human communities of solidarity of the poor and people of good will, who stand with the poor and work for justice.971 Basic human
969 The Holy Cross International Justice Office, The Social Teaching of the Church in India, 132-33. 970 Ibid., 137. 971 In a caste ridden Indian society, especially in the Indian villages where caste prejudices are often do not 271 communities therefore include all people, irrespective of their religions, caste, cultures, ethnicity, and gender. Grounded upon the Catholic moral principle of solidarity and the
Church’s Kingdom-centric mission perspective that the Asian bishops have adopted, they explicitly recognize and uphold the fundamental dignity of its diverse members.
Theologically it recognizes the universal dimension of God’s Kingdom and the human responsibilities of all people to participate in divine action to build God’s Kingdom in history.
Concretely, the basic human communities express their mutual respect and interdependence in reciprocal collaboration and active participation of its diverse members in decision-making processes and in sharing the burdens as well as benefits of working together for social justice and the promotion of human dignity.972 Thus, basic human communities
reflect and promote the values of communion and collaboration, interdependence and
reciprocity, equality and fraternity, mutual respect and accountability, and the spirit of service
and sacrifice. The individual members may draw inspiration from a given religious tradition
and from particular scriptures, but they all share common humanist goals.973
The main objectives of basic human communities, which are formed around issues
touching the poor and marginalized, may include: the promotion of justice and liberation of
the oppressed and exploited, building social harmony,974 pursuing the fullness of life and the
allow people to come together and form a community, forming basic human communities is not an easy task. It demands several steps, efforts and time in training people to understand the benefits of forming action-oriented communities. It involves bringing high caste and low caste people together and learning to respect and listen to the viewpoints of untouchables who have been considered less than humans for centuries by the high castes. Joseph Jadhav, “Catholic Social Teaching and Its Application in Rural India,” in Catholic Social Teaching in Global Perspective, ed. Daniel McDonald (Maryknoll, New York: Orbis Books, 2010), 187-88. 972 Judith A. Merkle, From the Heart of the Church: The Catholic Social Tradition (Collegeville, Minnesota: Liturgical Press, 2004), 246. 973 Wilfred, “Action Groups and the Struggle for Justice in India,” 306; Pieris, Fire & Water, 158-59; Merkle, From the Heart of the Church, 250-51; Kappen, “Toward an Indian Theology of Liberation,” 153. 974 The Asian Catholic Bishops attempted to articulate a connection between the Reign of God and Harmony. They stated that harmony may be seen as the fruit of God’s reign present in the lives of people. They also identified that “a vision of harmony can be a source of common inspiration and goal of collaborative action.” Bishops Institute for Interreligious Affairs (BIRA) V/2, no. 2.6; Quatra, At the Side of the Multitudes, 204-05. However, the bishops highlight that harmony must be rightly understood as a source of justice and fellowship. It should be neither seen as a system “compromising with conflictual realities, nor complacency about the existing common good. The basic human communities can help to resolve concrete cases of conflicts
through dialogue, common wisdom and collective power. These can also help to translate
intellectual and affective conclusions into commitment to concrete actions. Their
commitment to achieve social transformation may reflect a range of approaches such as
loving service, advocacy, and creative actions for justice depending on the capacities and
strengths of the members and the particular situation that one engages with.
Building basic human communities of mutual respect for dignity, freedom, justice, peace, harmony, collaboration and solidarity is an authentic witness to and a credible sign of proclaiming and building up God’s reign in history.975 It is also a crucial part of the
globalization of solidarity, which John Paul II envisioned for the good of the future world.
Conclusion
In this chapter I propose that in order to read the signs of the time and to interpret them in the light of the gospel (G.S. 4), the Church in India needs to refine its social
principles and ethical vision. It should take into account the new context of the time and must
reformulate them so as to apply them meaningfully to real life cases of the vast majority of
Indian people.976 I argue that to become a community of witnessing and building the
Kingdom of God on the Indian soil she must stand with and for the victims of globalization. I
also recommend that, as suggested by Michael Campbell-Johnston, to contribute to the
process of transforming the materialist dehumanizing globalization into a globalization with a
human face that satisfies the basic needs of all, the Church must undergo a genuine change in
order. Harmony demands a transformative attitude and action, to bring about a change in contemporary society.” The Theological Advisory Commission of the Federation of Asian Bishops' Conferences, “Asian Christian Perspectives on Harmony,” no. 5.1.4. http://www.ucanews.com/html/ fabc-papers/fabc-75.htm (accessed July 14, 2011).n/ 975 Arokiasamy, “Synod for Asia: An Ecclesial Event of Communion and Shared Witness of Faith,” 187; Peter C. Phan, “Ecclesia in Asia: Challenges for Asian Christianity,” in The Asian Synod: Texts and Commentaries (Maryknoll, New York: Orbis Books, 2002), 257. 976 John A. Coleman, “Making the Connections: Globalization and Catholic Social Thought,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, eds. John A. Coleman and William F. Ryan (New York: Orbis, 2005), 19. 273 her attitudes, identity, and mission priorities. She must look at the world through the eyes of the distressed and dehumanized people of India.977 The prophetic ministry of the church in
India consists not in spectacular acts of social crusading, but rather in offering an alternative perception of reality and helping people to see their own history in the light of God’s freedom
and God’s will for justice.
In the context of institutionalization of poverty and marginalization of the poor, politicization of religion, and communalism of religions India needs, along with political solutions, true and prophetic ‘gurus’ and social reformists like that of Gautama Buddha, Raja
Ram Mohan Roy, Swami Vivekananda, Maharishi Dayanand Saraswati, Dr. B.R Ambedkhar,
Mahatma Gandhi, and Baba Amte to condemn and denounce dehumanizing socio-economic
structures and religious traditions. India needs committed Christian organizations to empower
the poor to defend their human dignity and thus to experience fullness of human freedom and
life.978
One of the ways the Church in India can build solidarity and collaboration with basic human communities is by emphasizing the concept of ‘dharma’979 from the Indian tradition.
The concept dharma emphasizes different rights and duties of different social groups but it
does so without discrimination and hierarchy of occupations. Each human person is perceived
as a part of the whole cosmos with an equal share of rights and duties for the harmony of the
universe. It stresses both rights and duties. It explains that human rights derive from the
duties, which are seen as the renunciation of or withdrawal from all acts that are likely to
977 Michael Campbell-Johnston, “Globalization Viewed from Central America and the Caribbean,” in ibid., 215- 17. 978 Felix Wilfred, From the Dusty Soil: Contextual Reinterpretation of Christianity (Madras: Department of Christian Studies, 1995), 36. 979 “Etymologically the word “dharma’ is derived from the Sanskrit verbal root ‘dhr-dharati’, which means to bear, hold, uphold, maintain….. The noun form ‘dharma’ means that which upholds, maintains the universe in due order.” Jacob Kattackal, “Dharma, the Great Goal of Life,” Jeevadhara 12 (1982) : 29. Dharma is seen as the basis of all order, whether it is social or moral. Thus, one defines it as ‘harmony’: harmony in society, in family, and in personal life. Augustine Thottakara, “Ahimsa: A Gandhian Interpretation,” Dharma 25 (2002): 329. prevent a person from realizing one’s nature and the complete knowledge of one’s self.980
Hence, the concept dharma includes a sacred duty to fight against the forces of injustice, oppression and exploitation through the practice of five basic virtues or values: non-violence, truthfulness, non-stealing, celibacy and non-attachment or renunciation.981
It has never been easy to be a genuine prophet and there are no painless ways to be a
prophetic voice against injustice. What India needs today is a Church community that is
prepared to speak up clearly, act courageously, and be ready to pay the price personally and communally.
980 Robert Traer, Faith on Human Rights: Support in Religious Traditions for a Global Struggle (Washington: Georgetown University, 1991), 132. 981 Thottakara, “Ahimsa: A Gandhian Interpretation,” Dharma 27(2002) : 331; Swami Agnivesh, “Secularism and Hindu World View,” Dharma 25 (2000) : 239 275
GENERAL CONCLUSION
The question recurs: how are the moral visions and ethical social principles of the
Church relevant to the task of challenging and transforming extremely complex and powerful
structures of globalization? Using the “see-judge-act” inductive strategy, I have critically
analyzed the contemporary reality of neo-liberal market globalization from the perspective of
the poor in the light of the Gospel and the Catholic social tradition. The most disturbing signs
of the time are the acceleration of economic inequality and the deepening of global poverty.
A large segment of the population is excluded from active participation in shaping the
economic structures that affect their lives.
A reading of globalization from the perspective of the poor and from the Christian moral framework challenges the Church and calls for her commitment to contribute to the
process of humanizing it. It discloses that neoliberal globalization’s basic ideology of
materialism, unlimited consumerism, extreme individualism and its dominant belief in the
self-interested profit motive and the cult of success at any cost are in sharp contrast to the
Church’s Kingdom vision and mission. An economic structure that favors a few privileged
and powerful corporate elites, but is abusive and oppressive to a vast majority of people is in
direct contradiction to God’s universal plan for humanity and to the sacredness of human life.
Therefore it constitutes a social sin. Hence, Christian faith in God, who is just and the
protector of the most vulnerable, and the Church’s defense of human dignity and the social
nature of all human persons demand that she prophetically denounces the evils of the neo-
liberal brand of globalization and commits herself to enhance human dignity, solidarity,
social justice and the common good. It missions the Church to stand on the side of the poor in
their struggle for social change and liberation.
This study has emphasized that the Church needs creative actions and prophetic imaginations982 in solidarity with the poor, civil-social groups and people of good will to
bring about the needed social change. I have argued that the process of humanizing the process of globalization requires more than individual behavior change and traditional charitable activities. Critical analysis has established that poverty and inequality are built into structures of our society and therefore social transformation requires concentrated efforts to transform them. It requires a committed attempt to address the root causes of problems and not to limit addressing only the symptoms.
The humanization of globalization does not mean an elimination of markets or international trade, but rather it is a rejection of market fundamentalism and neoliberalism. It is recognition of the need for a substantial change in the ideologies, priorities, motivation, policies, players associated with globalization, and in its direction and vision of development, the human person and society. The vision of a humane globalization is to put people first, with the emphasis on equal respect for human dignity and participation of every human
person. The economic activities should be balanced with the common good and concerns for
social justice.
This task of transforming and humanizing the current globalization is a complex and
multidimensional task. It will cost the Church profoundly and dearly. Moreover, she has no
answer to every problem that globalization raises today and she cannot successfully accomplish the work of transforming global institutions all alone. It requires collaboration with others. However, this study illustrates that Catholic social teaching -- enriched by
Scripture, faith traditions, ethical social principles, careful social analysis, and encounters with and narratives from the victims of globalization -- is relevant and has the potential to
982 Walter Brueggemann, in his book The Prophetic Imagination, argues that in the context of secularization and marginalization of the Church to be a prophetic Church means more than the old liberal confrontation, rather the task of prophetic ministry is to nurture an alternative consciousness to the dominant consciousness. Hence, the task of prophetic ministry is “to nurture, nourish, and evoke a consciousness and perception alternative to the consciousness and perception of the dominant culture around us.” Walter Brueggemann, The Prophetic Imagination, 2d edition (Minneapolis: Fortress Press, 2001), 3 (emphasis original). 277 contribute to this important task of transforming individuals and structures.
An important theological contribution that the Church can make to the process of humanizing globalization is that she can provide a new vision, hope and direction to look at social, political and economic realities with eyes of compassion983 and profound hope. The
faith-based vision and perspectives not only interpret reality as people experience it but also
suggest new meanings and new hopes.984 Christian anthropology, portraying the human
person as an image of the Trinitarian God, presents a vision of the human person with
intrinsic value and in communion and in co-operation with other persons by nature.985
Christian faith also insists that the God of justice and defender of victims of injustice will create a new world of peace and justice. Hence it is a hope that is grounded in the history of
God’s active involvement and sovereign faithfulness with our world. This understanding of the human person as an embedded being and of God as a God of justice and life provide a new hope and a new vision to work for global transformation even when the situation appears grim and beyond human control and answers. The Christian virtue of hope, which lies between naïve optimism and despair, provides the means and the energy to overcome despair and to endure crises in the face of significant social evils that we confront today.986
The Church’s faith in the God of justice and her eschatological hope in new creation
demand that she not remain satisfied with employing mere rhetoric, but rather becomes more
concrete, authentic and prophetic by witnessing to the crucified and risen Christ by her
commitment to stand with the victims of globalization. Therefore her proclamation of Jesus
983 Compassion is not a personal emotional reaction but a radical form of criticism. Compassion announces that poverty, oppression, suffering, and exploitation are abnormal and unacceptable. It is therefore a criticism of the system, forces, and ideologies that produce human suffering and social evils. Ibid., 88-89. 984 Johan Verstraeten, “Catholic Social Teaching and the European Project: From Applying Principles to Scrutinizing the Signs of the Times in the Light of the Gospel,” in Catholic Social Teaching in Global Perspective, ed. Daniel McDonald (Maryknoll, New York: Orbis Books, 2010), 155. 985 John Atherton, Transfiguring Capitalism: An Enquiry into Religion and Global Change (London: SCM Press, 2008), 210. 986 Neil J. Ormerod and Shane Clifton, Globalization and the Mission of the Church: Ecclesiological Investigations (New York: T&T Clark, 2009), 158, 189-90. and his Kingdom mission cannot be separated from her commitment to address the causes of widespread oppression, poverty, injustice and human suffering in our world and work for their liberation. This inevitably requires a profound change in the institutional Church, in the direction of becoming more open and attentive to the workings of the Spirit inside and beyond the Church. The critical challenge for the Church is to become a Church of the poor and not to continue to remain an elite Church working for the poor through some charitable and philanthropic projects.
The study also emphasizes that in order to read the signs of the time and to interpret them in the light of the gospel (G.S. 4) the Church needs to refine her vision and social principles by taking into account the new context of the time. These must be reformulated so as to apply them meaningfully to real-life situations.987 It is important that the Catholic
Church critically reflects and reforms her mission priorities, her identity and mission strategies so as to interpret them to a local context based on her experiences of local people and knowledge of concrete social, economic, political, religious and cultural realities. For example, I have suggested that in the context of India – marked by poverty, religious pluralism, cultural diversity, and caste divisions -- dialogical action and solidarity with people of goodwill at the grassroots and from other religious traditions and cultures are the best approaches to apply her vision of social justice and the common good. This will help her to develop more credibility, acceptability and to build trust with people from other faith traditions or none.
In the globalized world, one of the most urgent tasks for the Church is to find a correct balance between the extremes: of spiritualism and fundamentalism, idealism and realism, contemplation and action, and being prophetic and political.988 As the Church
987 John A. Coleman, “Making the Connections: Globalization and Catholic Social Thought,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll /New York: Orbis Books, 2005), 19. 988 William F. Ryan, “Personal Comments, Reflections, and Hopes,” in ibid., 251. 279 commits herself to bring her Kingdom vision to the reality of our globalized world and looks at the immense and complex problems that she wants to address, her first step should be to love the world as God loves it in Jesus Christ. The Church, as a community transformed by the love of God and founded on Kingdom values, must make visible the invisible loving and justice-seeking heart of God to our broken globalized world. This implies that she enters into the reality of injustice and confronts it with the vision and hope of resurrection.989 A
Christian commitment to justice therefore demands both the reordering and conversion of individual hearts and attitudes and the transformation of sinful structures.990
The Church has neither solutions for all the problems of the globalized world nor does
she have a monopoly over God’s mission. Therefore the task of the Church is not to provide
quick-fixes to complex problems, but rather, as a listening and learning Church, to
collaborate with others in directing our world toward God-intended directions of ultimate justice.
I conclude this study with a quote from the thirty-fifth General Congregation of the Society
of Jesus that succinctly captures the core of my thesis:
Our response to these situations [social, economic, and political forces of globalization] must come from our deep faith in the Lord who calls us to work with others for the Kingdom of God, for the establishment of right relationships among people and with creation. In this way we cooperate with the Lord in building a new future in Christ for a ‘globalization in solidarity, a globalization without marginalization.’991
989 Daniel G. Groody, Globalization, Spirituality, and Justice: Navigating the Path to Peace (Maryknoll, New York: Orbis Books, 2008), 29. 990 Michael Campbell-Johnston, “Globalization Viewed from Central America and the Caribbean,” in Globalization and Catholic Social Thought: Present Crisis, Future Hope, ed. John A. Coleman and William F. Ryan (Maryknoll, New York: Orbis Books, 2005), 220. 991 The Society of Jesus, The Degrees of General Congregation 35 (Washington, D. C.: Jesuit Conference of the United States, 2008), 30. Bibliography
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