Monday, October 24, 2005
Friday, October 21, 2005
the marketplace and the wizard to oz
Wednesday, October 19, 2005
and what of jubilee economics?
There is something appealing to the whole Jubilee economics idea. The idea is that, just as God appointed an entire year of debt cancellation every 50 years in Israel, so we too should be striving to cancel the debt of the Two-Thirds World. We have all seen Bono advocate this, and I will admit, makes the endeavor all the more appealing. Plus, the entire scheme seems so counterintuitive, so grace-laden, so anti-thewaysoftheworld. I like it. Plus, the idea is birthed out of God's very Word to His people.
But there are issues with this economic picture. Brian Fikkert of Covenant College says it well:
"When one calls for an international conference to enable the Two-Thirds World to make a new debt-free start, we must precede with caution. Although I am in favor of debt-relief for these countries, particularly since many of their debt problems are the direct result of actions taken by the U.S. Federal Reserve Board, the design of a debt relief program must take into account the fallen nature of both the lender and the borrower if it is to truly help the poorest countries of the world. For example, what incentive will commercial banks in the West have to lend to the Two-Thirds World in the future if they know that there is a precedent for such loans to be "forgiven" by Western governments? A policy intended to help the Two-Thirds World could actually hurt in the long run if it causes self-interested bankers to withhold future credit. Similarly, what is the message to borrowers in the Two-Thirds World, many of which are corrupt governments, if they are not held responsible for those instances in which they have poorly handled the money they have borrowed? Does debt forgiveness [jubilee economics] in this case encourage future misbehaver on the part of the ruling elites, causing further harm to the poor living under their rule? I am far more comfortable with treaties that assume sinful motivations on the part of individuals and governments than treaties designed under the assumption that the relevant actors are cooperating as a result of "responsiveness to God's commands of justice and stewardship." We live in the "not yet," and our design of
treaties must reflect this."
So then, how is one to think Christianly in the realm of economics? We must understand that we live in the "already, not yet." Yes, we with Kuyper assert that there is not one inch in this world that Christ does not already say, "it is mine!" But the full manifestation of His rule will not be seen by us until He comes again. So, if in our economic discussion we expect to land a perfect system, in which motives are pure and all people are released fully from every kind of bondage, we neglect the "not-yet." On the other hand when we simply throw in the towel and retreat from all public discussion, we are fatally ignoring the "already:" indeed Christ's rule is in full effect, we just dont see it's full consummation yet. Every knee will bow, but every knee is not bowed now. That is the framework in which any discussion, economic or otherwise, must take place. So, again, how should we think about economics? Again, Fikkert has good things to say:
"Turning our attention to capitalism for a moment, evangelical advocates of laissez-fair capitalism would so well to consider the basic philosophical presuppositions of capitalism's main proponents. As mentioned earlier, mainstream economic analysis-the neoclassical school of thought--claims that it is a value-free, morally neutral science that simply describes, in mathematical terms, the way things really are. In actuality, neoclassical economics implicitly applies an ethical standard called "pareto efficiency," which says that an economic exchange between two parties is "good" if it mutually beneficial, i.e., if it makes one person better of and the other person no worse off that he or she was before the exchange. The key point here is that the people themselves determine the extent to which thar are better or worse off in each situation...Relying on the ethical standard or pareto efficiency is unacceptable, for it is using fallen, autonomous individuals as the reference point for good and evil...Clearly, if Christ has claimed every square inch of the universe as his own, then he must be the standard by which societies consider how best to allocate their resources. This does not give us all the answers, but it does give us a different starting point."
So, I guess my thoughts on the matter land with the same slight ambiguity of Fikkert. The starting point for all effort in this "already, not yet" Kingdom of God, is indeed Christ, ruler over all. Economics as the Bible describes it (oikonomia) is literally "stewardship of God's house," not our house. Therefore, taking care of the poor and downtrodden, basic satisfaction with what we do have, and ecological responsibilty even when it lowers profit is not merely good ethics, but good economics. (that just doesn't sound economical does it?) So, I think we need to be discerning. Maybe the allocation of capital is not a passive, ethically nuetral, response to supply/demand charts--but a kingdom-oriented allocation.
So what? Does that mean socialism? No. We all know socialism does not work. Does this even mean an abandonment of capitalism? No. We live in the already, not yet. Capitalism, I think is the best of what we got in this fallen world. It, like everything else, is inevitably going to be abused. But maybe we can strive for Kingdom oikonimia within our capitalist framework. Fikkert goes on to say that the "alternative paradigm for economic life" is both micro and macro. Devising Macro efforts is easy, but if the micro is not fertile to accept the seeds then little is done. He suggest microenterprise development (MED), "a methodology that provides relatively low-income loans and vehicles for savings to low-income entrepreneurs."
I think he is right. But mostly, I am learning that the economy we should strive for will never be perfect (not yet), we can strive to implement God-honoring, effective, economic principles at work (already). This involves, above all, involvement. Involvement in prayer and in action.
Monday, October 10, 2005
'virgin territory': is this steward-speak?

4 or 5 trees
Study how a society uses its land, and you can come to pretty reliable conclusions as to what its future will be. -E.F. Schumacher
In the Western view resources [or land, for that matter] can be owned as well as exploited. Not only can the owned but thet can also be bought and sold. Land is a market commodity just like food and clothing. That might not strike us as very odd, but it is worth noting that the idea of selling land is a relatively new idea even in Western culture...The notion of private property which can be freely bought, exploited, developed, subdivided and sold is foudational to the contemporary market economy of capitalist countries. This is not just an economic concept. It is a fundamental way of seeing land. -Brian Walsh