Developing a shared faiths response to the credit crunch

Delegates attending the Ethics in a global economy seminar organised by Faiths in London's Economy (FiLE) called for a shared faiths perspective on the credit crunch to be developed and FiLE undertook to try to facilitate that process. A meeting to begin discussing a possible shared faiths response that was held on 3rd December 2008 and the first draft document that follows derives from written contributions to and discussions at that meeting.

Each of us involved is going to be copying this rough first draft document widely around our networks in order to increase the range of contributions to it and to bring greater clarity to its statements. Therefore I am posting it here and would welcome comments on this draft.

In addition to general comments, I would be grateful if those commenting could say which, if any, of the eight ‘headline’ statements they agree with and whether there are additional ‘headlines’ which they think should be included.

First draft of shared faiths response to the credit crunch

1. The value of work

Work is valued in most faith traditions, even to the extent that in some human beings are seen as co-creators with the divine. The work ethic is seen as a noble endeavour in many faith traditions e.g. Sufi’s divide the day into work, worship and rest. Hard work and creativity are valuable but are they always appropriately directed? We need to differentiate between the value of the work ethic and appropriate kinds of work. Not all work is appropriate or ethical, therefore the value of the work ethic and of human creativity can be dissipated in work that is inappropriate or unethical. Practices such as profiting from the process of charging and paying interest and lending what you don’t have which have been exposed by the credit crunch would seem to fall into this latter category. We should value productive work but are often divorced from the fruits of our labours.

2. Concerns about credit

The Hebrew Scriptures forbid charging interest to a fellow Jew while the Qur’an forbids charging interest and encourages trade and trade-type banking arrangements. Instead of credit-based banking systems, we commend trade-type banking and the approach of mutual building societies and credit unions. We need banks for current and savings accounts and for business loans, we need building societies (preferably mutual ones), and we need insurance (a legitimate pooling of risks); but the rest of it we really don’t need and it needs to be shut down.

3. Structures of greed

Western economies have been inflated through greed, with their economic make-up being based on self-centred acquisition. Economic and political systems tend to be based on immediate profitability not long-term benefits. As a result, much of what we do makes no logical sense. Why, for example, do we sacrifice quality time by working hard in order to have quality time while on holiday or why do we drive to a gym in order to get on a walking machine? Concerns regarding our economic systems are also to do with transparency. Many faiths reflect on light and dark and how bad things happen in the dark where actions can be hidden. Much of what has brought about the credit crunch has been hidden from view and from scrutiny.

4. The god of growth

Western economies have been predicated on unlimited growth and this has caused harm to the environment. Developing countries are using the same model. Many natural, God given resources are running out because we have exploited that which we have been given instead of stewarding and sharing them. The argument about whether oil and gas supplies have peaked or not remains unresolved but we are certainly running out. The failure of those two resources would impact on every aspect of our lives and would produce far greater misery that the 'credit crunch', as will climate change. We can’t ignore these wider issues most especially that of climate change.

5. Loss of relationships

There is a breakdown in the relational aspects of the economy. Exchanges are occurring in virtual space, trust is being lost and we need to return to our roots in relationships. Practices such as profiting from the process of charging and paying interest and lending what you don’t have led to banks no longer trusting each other and no longer lending to one another. In the past, there was a degree of trust in the markets summed up in the phrase ‘my word in my bond.’ It is important to work together in cooperation. There are also social consequences in terms of social cohesion arising from the credit crunch.

6. Support for developing economies

We should look for methods of ameliorating the financial/environmental misery that continues and develops around the world. Developing countries are using the same model of economic growth as the West despite the harm that it has caused to the environment. Economies throughout the world need rebalancing in the direction of wealth creation: education; the care of the vulnerable; manufacturing, creative and cultural industries; renewable energy; and agriculture.

7. Time for reflection

There can be a sense of hope in this crisis; the credit crunch can be seen a watershed opportunity and not a catastrophe. A year ago people weren’t having the kind of conversations we are having today; that, in itself, is a positive change. Perception is vital in what is understood as being economically viable.

Some faiths, but by no means all, understand periods of suffering as part of a developmental process. We need to reflect on our experience of suffering and look for causes (i.e. underlying economic fundamentals). There may be natural causes but these may also have personal implications to which we will need to respond. Reflection and action go together. For example, a recent survey found that 25% of respondents are praying or meditating more as a result of the credit crunch.

Not all faith communities think that suffering is ennobling and there can be a polarization around concrete political change versus inner personal change. Both are needed in dialogue, both are on the same spectrum of responses.

We need to reflect on the values that we share. The economy has spiralled a long way from real valuations. We need to link personal, moral and spiritual values with economic values.

8. Constituencies for action

People of faith form a huge constituency and can motivate people to action. People of faith are also part of rooted communities (e.g. local authority areas) which in some instances are beginning to plan for greater economic resilience. People of faith need to be party to these debates and summits. There is no quick fix but, together, we have a vast constituency, one large enough to start sowing seeds of change. We should look for methods of ameliorating the financial/environmental misery that continues and develops, around the world.

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1 giant leap - Money pt1.