Vatican Economist says Christians Must put Ethics Back into Business

Catholic News Service – August 24, 2009 – By Sarah Delaney

VATICAN CITY (CNS) — The current global economic crisis shows that capitalism without ethical grounding doesn’t work, and Christians should keep this in mind whether they are business people, policymakers or simply consumers, a top Vatican economist said.

Thomas Han Hong-soon of the Vatican Prefecture for Economic Affairs said that “the root of this crisis is a moral deficit” and that when it comes to business Christians have not always followed the principles of charity and justice found in the Gospel.

“Let’s start by honestly recognizing that the spirit of capitalism doesn’t agree with that of the Gospel. The heart of Christianity is love for others. The nucleus of capitalism, rather, is competition, which is the opposite of love,” Han told the Vatican newspaper L’Osservatore Romano Aug. 22.

A radical overhaul of the capitalistic system is not very realistic, he said, considering that alternatives, such as communism, have not worked out historically. But better rules for governing the free market are needed, he said.

“It’s clear that as Christians we can’t only pursue the notion of the highest profit at the lowest possible cost,” he said.

“What is sometimes lacking is the awareness of a ‘social responsibility’ of their business. No business is an island,” he said.

“Those who don’t remember that are destined to fail,” he said, recalling Pope Benedict XVI’s recent encyclical, “Caritas in Veritate” (“Charity in Truth”), that called for justice and equality in the world economy. This is true not only for single businesses, but for a whole system that involves shareholders, banks, workers and consumers, he said.

Catholics can do much to contribute to a better system simply by the choices they make in their lifestyles and what they buy. “The simple act of purchasing something can have important economic consequences. No choice is neutral,” Han said.

“It’s up to us to start, and everyone in their small part can change the world,” he said.

The Catholic Church in its many activities, he said, should set an example of ethical behavior in doing business and raising and spending money for its mission “above all with thoughtfulness and solidarity.”

For example, he said, a church-affiliated entity planning to construct a new building should make sure that the companies hired do not exploit their workers.

Han joined the five-member international panel of lay economists who oversee Vatican budgets in November 2008. He is a member of the Pontifical Council for the Laity and is president of the Lay Apostolic Council of Korea.