1 - 2002

Church and Globalisation

Two Faces of Globalisation

A declaration by German Protestants on the opportunities and risks of global interdependence

What attitude should Protestants take towards globalisation? This was the subject on which the Synod of the Evangelical Church in Germany (EKD), held in Amberg, Bavaria in November 2001, focussed its attention. After considerable debate, the 120 members of the synod, 100 of which represent the 24 member churches of the EKD, adopted the following declaration.

... It is becoming clearer that globalisation has two faces. It produces injustice and fear, but it also carries advantages and opportunities, and awakens hopes.

On one side we realise that:

• technology is not the least among the reasons for processes of change in the economy, and these have speeded up even more and increased feelings of insecurity for many people;
  
  
• euphoria over the successes of the "new economy" has given way to disillusionment about the risks of an economy oriented to quick returns;
  
  
• the increasing anarchy on the international financial markets has led to a situation in which the valuation of stocks and currencies often depends more on psychological factors than on economic facts;
  
  
• in view of the increasing disassociation of economic developments from processes leading towards greater social justice, calls are growing louder for politics to set the conditions more clearly for the global economy;
  
  
• hopes of ecological progress through globally oriented policies have given way to disillusionment in view of setbacks, especially with regard to climate change.

On the other side we realise that:

• globalisation also increases opportunities for new world-wide understanding and a sense of global responsibility;
  
  
• although there are crass injustices in the distribution of wealth, more goods and services are available at favourable prices;
  
  
• the reduction of trade barriers makes it possible in principle for poorer countries to gain a share in the market;
  
  
• globalisation can create new inter-cultural understanding;
  
  
• many ecological problems can only be dealt with at a world-wide level.

Our faith confesses that "The earth is the Lord’s, and all that is in it, the world and those who live in it."   (Ps. 24.1)

Our view of a responsible way to design the global economy is based on our God-given freedom, and on trying to take the consequences which this has for building our world. In the Christian tradition, freedom does not mean gaining a maximum of space for one’s own interests, but rather doing what we can so that all people may experience the "life in all its fulness" promised by God.

Freedom is achieved in solidarity with other persons and in responsibility for the common good. We continue to believe that the scandal of world-wide economic injustice is the main challenge in the structuring of global development. The standard by which globalisation is judged should thus be the question of whether the economic affluence which it makes possible also benefits the weakest members of the world community.

Since as churches we are part of a world-wide fellowship, we are especially aware of the challenges which arise from the changes in the one world. We have ties with churches in every continent, particularly with churches in countries which are not economically and politically "interesting" to others because of their poverty and instability ...

The disadvantaged must be helped to claim their rights. The church is not alone in its efforts to help. We are grateful for everything that is being done by people from all sorts of backgrounds: our sister churches, non-church organisations, private initiatives, governments, corporations and trade unions. We are ready to cooperate with all those who are committed to this work.

We consider particularly necessary a dialogue between the church and economic leaders. This is based on the conviction that market processes do not bring about the necessary and desirable conditions all by themselves; conscious and responsible structuring is required. A global economy requires structural changes. This can only be accepted if those on the losing side are not left to themselves...

This global economy thus requires, not less, but rather more social security, if possible also in additional forms. We are opposed to the frequently expressed opinion that in the age of globalisation the social welfare state is no longer affordable.

In the process of globalisation, national economic policy-makers have a special responsibility... It is not right to say that under globalisation there is no longer any scope for national economic policy-making, as is often claimed.

A national economic policy must therefore not lower its standards because of lower standards in other countries. Despite the importance of international coordination of social and ecological standards, it must be clear that these can only set the minimum, baseline standards.

"Wealthy" countries such as ours have a special obligation to promote sustainability. Such countries can and must make a proportionally higher contribution towards the sustainable development of the one world, since they consume proportionally higher amounts of natural resources. However, social and environmental standards should not be misused as instruments of protectionism, thus robbing the weaker countries of important competitive advantages.

It is the business of national politics to make international rules and standards work, and to punish violations of them. Where this does not happen, international policies are called for.

Globalisation leads not only to deregulation of the economy, but also to an increase in migration worldwide. This has consequences for the immigration policies of the industrial nations. They must not seal their borders against migration caused by poverty. On the other hand, if they take in the well-educated as employees, the poorer countries lose the very persons on whom they depend for their development.

In an economy which is growing together into one, there should be opening of markets on all sides. We must assume our responsibility for the development of one world, by opening our markets even when it is not advantageous for us. This is especially true for the trade policies of the European community, which show protectionist traits in many areas.

Agriculture is particularly important for the development of the poorer countries. There is therefore need for a more responsible form of agrarian policy in Europe, which contributes to global justice and sustainable development and which meets ecological, economic and social criteria. The main task of a sustainable agrarian policy in both North and South is world-wide food security.

Future structural aid and subsidies, in Europe and worldwide, must especially be geared to sustainable production methods. The necessary dismantling of trade barriers must not be allowed to lead to the destruction of local markets nor of the livelihood of small and medium-sized businesses. Present-day European agrarian policy does not meet these requirements...

In the industrial and service sectors there are also trade barriers of varying intensity, direct and indirect, open and concealed. Europe must not be allowed to close itself off. It is particularly the responsibility of German political leaders to stand up for keeping Europe open.

Regions (within countries) represent an especial important level of living space and economic activity. In the process of growing together into one world, many problems can only be solved locally, as the example of Europe clearly shows. Here the churches can play an important role as initiators and mediators.

Improvement is also needed in international cooperation outside Europe... The existing international institutions need to be given more weight. They are essentially dependent on support from national politics... Further international conventions must also be agreed and implemented, so as to obtain responsible standards world-wide, in the area of social policy as well...

International coordination urgently needs to be built up. It should include representatives of developing nations and those about to become highly developed, and also trade unions and non-governmental organisations in both South and North.

The fate of entire national economies should not be at the mercy of the financial markets. But there are no magic recipes for preventing turbulence in currency exchange rates. The much-discussed Tobin tax cannot help in the case of very large fluctuations, and can only be effective if it is in use world-wide, which is more than can be expected. What is much more important is determination on the part of the big industrial nations to cooperate in giving direction to the financial markets and seeing that currency exchange rates promote the economic development of all countries...

Debt forgiveness for the poorest countries remains high on the agenda. Servicing of debts by poor countries threatens the very existence of their deprived populations...

Economics and politics together must contribute towards the conservation of natural resources, protection of the environment and promotion of good working conditions. Along these lines, policies governing corporations’ investments in developing countries must create incentives for these investors to stimulate development.

Through this development towards one world, the churches have found particular tasks for themselves. They have responsibilities towards the poor at both national and international levels:

At the national level, the churches must stand up for those who lose their jobs because of economic globalisation...

Internationally, the churches must take part in a process of reflection which, assuming that appropriate conditions are met, no longer sees direct investment abroad as the cause of poverty, but rather as a means of overcoming it. The churches must make it clear that they see transnational corporations, the International Monetary Fund and the World Bank not as adversaries, but rather as partners, even though they are surely in need of critical dialogue.

When corporations fall below the minimum in social and ecological standards, churches should support the formation of public opinion against this, to remind these corporations of their responsibilities. When individuals or initiative groups are persecuted because of their commitment, the churches must stand up for them.

The churches must bring all their authority to be which they still have in many societies on the side of the preferential option for the poor, to influence political decision-making here and in other parts of the world. Persons who are ready to assume responsibility are needed for this task. The churches should support and guide them by means of the Christian message.

A global economy presents both risks and opportunities. We want to see the opportunities put to use and the risks kept to a tolerable level. To us, this means designing a responsible global economy.

Declaration "Designing a Responsible Global Economy", adopted by the Synod of the EKD in Amberg, November 4th-9th 2001 (slightly abridged); source: official EKD document.