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The blessed calling of business

29th May 2006
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The greatest threat to privatization, tax cutting, deregulation and other unfinished economic reforms is no longer from the left, but from the right.


"The free market is the most efficient instrument for utilizing resources and effectively responding to needs."

 

"Overseeing and directing the exercise of human rights in the economic sector ... belongs not to the state but to individuals and to the various groups ... which make up society."

 

Are these the words of a classical economist or an editorial in The Economist? Or perhaps a chamber of commerce or free-market politico?

 

Though written by a Pole and a good Catholic, they seem to be ideas alien to Poland's current government, which is conservative, Catholic and distrustful of the market. In today's world, this puts Poland in quite a rare spot: The greatest threat to privatization, tax cutting, deregulation and other unfinished economic reforms is no longer from the left, but from the right.

 

"The state could not directly ensure the right to work for all its citizens unless it controlled every aspect of economic life and restricted the free initiative of individuals."

 

In 2006, this criticism could be directed at the two populist parties, one far-left and one far-right, that have joined the government. However, like all quotations in this essay, it was written 15 years ago this month in the aftermath of Communism's fall by Pope John Paul II, in his encyclical Centesimus Annus.

 

These were not new teachings. The letter's name refers to the 100th anniversary of Leo XIII's Rerum Novarum, but follows half a millennium of Catholic thought in Natural Law that predates, yet parallels, that of John Locke and Adam Smith.

 

The natural successor

Benedict XVI followed in John Paul II's footsteps literally, when he visited Poland last week, and intellectually, with his own recent encyclical, Deus Caritas Est, where he restated the need for subsidiarity: the state should only undertake activities that other entities, e.g. the church, media, and business, are unable to accomplish.

 

According to Pope John Paul II: "In exceptional circumstances the state can intervene, ... which must be as brief as possible, so as to avoid removing permanently from society and business systems the functions which are properly theirs, and so as to avoid enlarging excessively the sphere of state intervention to the detriment of both economic and civil freedom." Yet, the Law and Justice party and its coalition partners ignore this principle, demonstrating disdain for market processes and basic freedoms of association, assembly and the press.

 

In this scenario, the good news, at least, is that the Church has the government's ear. The bad news is the troglodytes' shrillness drowns out the Catholic intellectuals. This intelligentsia long nurtured not only the Church's thought but synthesized it with native traditions into ideas powerful enough to defeat communism.

 

The burden of history

Alas, in Poland, history is heavy, and her burliest neighbors throwing their weight around has made the deepest impression. But Poland's past domination - or betrayal - by foreign powers need not lead to a fear of foreign ideas and capital. Centuries of freedom-friendly traditions, such as limited government and cosmopolitanism, cultivated Poland's Golden Age. Even in an era when across Europe both Church and state were more autocratic, Poland limited their respective powers by never having a divine-right monarch and instituting extreme checks on state power such as the Liberum veto and Nihil novi. Toleration of other nationalities and creeds brought not only their accompanying goods and ideas, but helped develop an entrepreneurial, high-trust culture.

 

These will serve Poland well in its return to Europe. Unfortunately, some wrongly believe this entails forsaking spiritual wealth for material riches. We can help change this debate, in part, by showing religious leaders and their flocks that free-market economics is not only compatible with, but complements their moral principles. Moreover, it's an essential tool in their social goals, such as eliminating poverty, as the "free exercise of economic activity ... will lead to abundant opportunities for employment and sources of wealth."

 

A two-part solution

The business community needs to do two things in its dialogue with the state, media, and society at large. The first - something which the electoral runners-up Civic Platform evidently failed to do - is to go beyond the utilitarian arguments when making the case for a free, open economy and society. Strictly empirical reasoning can be quite ineffective, especially with an audience unaware or derisive of the jargon and data of economics, research studies and statistics.

 

The second is to not be shy or apologetic about your vocation. (Yes, ethical business is essential and the principle of subsidiarity directs the business community to police its own.) Business is a valued occupation, and entrepreneurship, according to Pope John Paul II, is "disciplined and creative human work," and a blessed calling.

 

Stefan A. Bielski consults for the Acton Institute for the Study of Religion and Liberty


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