Peter Novecosky, OSB

New financial system

The financial crisis that swept the world in 2008 has left a major mark on every country. Major institutions went bankrupt, banks went under, people lost jobs and the reputation of people in charge of financial planning took a major hit. Memories of the Depression of the 1930s became vivid once again. Extravagent and unjustified bonuses paid out to CEOs were a sign of the system’s corruption. Calls were heard for a more ethical and just way to organize a country’s economy so that all its citizens, not just the elite few, would benefit.

At a recent meeting in Nairobi, a Nobel Peace Prize winner sounded this call again, with some specifics attached to his suggestion. Muhammad Yunus of Bangladesh won the peace prize in 2006 for championing microcredit loans to the poor. He told 1,500 delegates at an African-Middle East Microcredit Summit that there needs to be an urgent re-invention of global financial systems to end poverty and protect the underprivileged. He said this system would allow those excluded from mainstream banking to access credit that enable them to live in dignity.

“We are not just happy to make ourselves rich and wealthy,” Yunus said. “We also want to make sure our fellow human beings can stand on their feet with pride and dignity, no matter where they live.”

Yunus told the gathering that the world must abandon systems that do not work, and noted that microfinance had provided good lessons in how the lives of the poor could be changed. He said that if lending to the poor was brought to the level of other financial products, more people would escape poverty.

“It is time we made possible what has been thought of as impossible,” said the 70-year-old, who has been dubbed the “banker to the poor.”

His are not just idle words. He has enabled millions of poverty-stricken people, especially women, to live with hope and dignity by providing them capital to become self-employed. His microcredit movement has delivered millions of small loans to poor people who were unable to access the regular banking system. In Asia more than 150 million people have benefitted from microfinancing. African countries said they hoped to learn from their success.

Yunus is not interested in exploiting the poor. He wants to enable them to live human and humane lives. He doesn’t want them to depend on charity. He wants them to live in a world that is founded on justice and fairness. It’s an initiative that deserves proper attention.

Vatican spells out policy

In the past few months the church, especially the Vatican, has come under increasing scrutiny over its handling of child abuse cases.

Media around the world have accused the Vatican, even Pope Benedict XVI, of a policy of secrecy and coverups. Some church leaders have launched a vigorous defence of the pope and accused the media of targetting the church.

As usual, there are shrill voices on either side. According to Michael Winters (below), the Vatican could hardly have come up with a worse strategy to deal with the situation.

He faults the church for failing to understand “a basic fact of modern life.”

Confront the crisis, he recommends, and respond directly to the criticisms raised. Until that happens, the church’s message will not be heard.

Some steps along that path have now been taken. On April 12 the Vatican published a 700-word guide on its website outlining its procedure in processing cases of sexually abusive priests. The guide is based on a 2001 decree by Pope John Paul II and it explains in ordinary language the rules church officials are to follow in investigating cases of sex abuse.

According to an Associated Press report, the Vatican made it clear “for the first time” that bishops need to report crimes of sexual abuse to police if required by law. The AP report noted that the sentence ''Civil law concerning reporting of crimes to the appropriate authorities should always be followed,'' was not in a draft of the guidelines released April 9. Church commentators point out that this guideline, if not explicit, is implicit in canon law. Now it is clear to all what the requirements are.

In another positive response to recent criticism, Rev. Federico Lombardi, director of the Holy See Press Office, said April 9 that Pope Benedict is available for more meetings with victims of abuse.

The publicity about the harm done to victims has been spearheaded by the media. It seems to have brought about change — as cases reported have declined in recent years.