October 24, 2011. (Romereports.com)
In light of the economic crisis, the Vatican released a proposal to tackle the world's financial market. The document titled, “Reforming the International Financial System” was presented at the Vatican Press Office. The document says the market needs a so called “Global Public Authority” that can make sure all players are following the rules of the game.
The document claims that the current leadership of the G7 and G20 is informal. It also says it excludes too many countries.
Italian economist Leonardo Becchetti explained some of the key points.
Economist, Università Tor Vergata (Rome)“To protect some of the global public goods, there needs to be a quick international coordination among States. For example, on issues like pollution and also financial stability. We need better international coordination, quicker responses and true representation.”
The Vatican says part of the solution is a World Central Bank. Under the proposal, the bank would regulate currency exchange. It would also have a world fund to re-capitalize where needed. It would implement different rules for commercial and for investment banks and it would also impose a tax on financial transactions. Leonardo Becchetti
Economist, Università Tor Vergata (Rome)
“This crisis stems from financial reasons that in turn weaken countries. The weak states are now causing problems for banks. So it's normal to ask the financial sector to pay, so that the weakest states or the welfare state don't have to front the burden. The Church is at the forefront. It endorses this proposal which first came from the civil society. It's something that's already supported by some countries, and also by the president of the European Comission.”
The document is the work of the Pontifical Council for Justice and Peace, meaning it's not the work of the papal Magisterium. It was done in part, to promote a different type of discussion in the G20 meeting scheduled for November 3rd and 4th. It's also a way to stimulate discussions among different governments and institutions. FULL TEXT OF THE DOCUMENT