An encyclical is a letter a Pope circulates to bishops to teach on some point. I am reading Pope Benedict XVI's
most recent letter, and one section in particular is exceptionally good. To wit:
58. The principle of subsidiarity must remain closely linked to the principle of solidarity and vice versa, since the former without the latter gives way to social privatism, while the latter without the former gives way to paternalist social assistance that is demeaning to those in need.
***Nice point. Separately you get either robber barons or national socialism.***
This general rule must also be taken broadly into consideration when addressing issues concerning international development aid. Such aid, whatever the donors' intentions, can sometimes lock people into a state of dependence and even foster situations of localized oppression and exploitation in the receiving country.
***Sometimes? I would like to see a single instance in the history of mankind in which foreign aid yielded a net benefit. One single instance. But I suppose a Pope has to be circumspect.***
Economic aid, in order to be true to its purpose, must not pursue secondary objectives.
***At that is precisely the reason why there is not a single instance of net benefit in history, because aid is never gratuitous. Never is foreign aid without strings.***
It must be distributed with the involvement not only of the governments of receiving countries, but also local economic agents and the bearers of culture within civil society, including local Churches.
***Fine sentiments, good advice, but by the time it gets to the local churches, if it gets to the local churches, the damage has been done. Cut out the Governments, we might see some progress.***
Aid programmes must increasingly acquire the characteristics of participation and completion from the grass roots. Indeed, the most valuable resources in countries receiving development aid are human resources: herein lies the real capital that needs to accumulate in order to guarantee a truly autonomous future for the poorest countries. It should also be remembered that, in the economic sphere, the principal form of assistance needed by developing countries is that of allowing and encouraging the gradual penetration of their products into international markets, thus making it possible for these countries to participate fully in international economic life.
***Bravissimo! Exactly right. There is the heart of the problem and the elucidation of the solution.***
Too often in the past, aid has served to create only fringe markets for the products of these donor countries.
***I suppose “every single time” may be characterized as “too often.” Again, circumspection. ***
This was often due to a lack of genuine demand for the products in question: it is therefore necessary to help such countries improve their products and adapt them more effectively to existing demand.
*** Yes, the agent for this is called the small business importer.***
Furthermore, there are those who fear the effects of competition through the importation of products — normally agricultural products — from economically poor countries. Nevertheless, it should be remembered that for such countries, the possibility of marketing their products is very often what guarantees their survival in both the short and long term.
***Yes, but more pressing is the crime of USA shipping in subsidized grain-as-aid and destroying the local farmers markets and distribution, and denying the same people the opportunity to sell us garments, an industry that might replace their farming.***
Just and equitable international trade in agricultural goods can be beneficial to everyone, both to suppliers and to customers. For this reason, not only is commercial orientation needed for production of this kind, but also the establishment of international trade regulations to support it and stronger financing for development in order to increase the productivity of these economies.
***Well, we already have lex mercatoria that supports and regulates free trade. The problem is the international trade regulations that inhibit it. It is Governments who cause the problems, not the traders. Sure, call for good things, but asking for state regulation is to bark up the wrong tree. And we cannot have a Pope barking up the wrong tree.***
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