Caritas Manila

Guess who said this:  P-Noy? World Bank?  “The socioeconomic system must be marked by the two-fold presence of public and private activity, including private non-profit activity. In this way sundry decision-making and activity-planning centers come to take shape. The use of certain categories of goods, collective goods and goods meant for common utilization , cannot be dependent on mechanisms of the market, nor does their use fall under the exclusive competence of the State. The State’s task relative to these goods is that of making use of all social and economic initiatives promoted by intermediate bodies, i.e. civil society organized into intermediate groups, that produce public effects. It thus encourages the development of a fitting democracy.”

This is Pope John Paul II, in the encyclical letter, Centesimus Annus, rephrased in  the Compendium of the Social Doctrine of the Catholic Church as No. 356 in its chapter on the Economic Life. It came to my mind after the high-level  public-private “Workshop on Social Market Economy: Corporate Governance and the Role of the State in Regulating National and International Financial Markets”organized by the Asian Institute of Management Policy Center last week. Prof. Dr. Rüdiger von Rosen, Professor at Goethe-University, Frankfurt am Main and currently a Member of the Board as well as Managing Director at the Deutsches Aktieninstitut e.V., gave the dialogue opener. His talk, while focused on the moves of Germany during this global economic crisis, struck me as a values-based approach to recovery, from which we have at least two things to learn from.

First, he cited how “no-holds barred discussions” initiated by the State – the German government  - brought together the business associations and the workers associations to agree on a unique proposition at the height of the crisis in 2008. This proposal had two agreements: (1) Workers associations agreed to a cut in salary (10%, if my notes are accurate) paid regularly and on time, as they also had the Business associations agree to their going to work for only 1-2 days a week, during the height of recession when there was hardly any business or work to do in their enterprises. Presumably, this 1-2 day workweek also cut operational costs of the businesses, enabling the enterprises to continue to pay the wages. (2) This arrangement was to continue until the economic climate began to improve and businesses re-jumpstarting through carefully targeted stimulus packages. As the global economy improved, gradually restoring consumer confidence and trust in the banking system, the Workers and Business associations also agreed that regular work hours shall resume and should business be brisk enough, workers and management shall go on overtime without additional pay to meet the orders. These two components helped ensure employment, with hardly any lay-offs, for the German economy. These also kept a key infrastructure for continuing competitiveness of Germany in place, i.e. educated skilled workforce in businesses that have not closed or gone bankrupt.

Second, he cited the role of an open, responsible media that covered the discussions as they unfolded, restating the issues, the positions and interests of the associations and the State in a way that ordinary folk, especially the youth, can understand. The better to engage the rest of German society. The better to shape public opinion. His description of media behavior (and he himself is editor-in-chief of Finanzplaz, an economic magazine) reminds me of the Pontifical Council’s document, Ethics in Communication, which said: “The ethical dimension related not just to the content of communication (the message) and the process of communication (how the communicating is done) but to fundamental structural and systemic issues, usually involving large questions of policy bearing upon the distribution of sophisticated technology and product (who shall be information rich and who shall be information poor?)” I sensed that during these public-private discussions, media ensured German society had both right and access to information based on truth, justice, solidarity and subsidiarity, with subsidiarity being one of the cornerstones of the German social market economy.

During the workshop, there were doubts if this German approach to build cooperation among the sectors would work within the cultural context of the Philippines . It was said the Germans had “the will, the ability and the money” to begin with, while Filipinos have “the wheeling-and-dealing, abilidad and borrowed money”.  As discussions ensued, it became clear that Germany did not always have the confluence of all three. In the time of Konrad Adenauer’s Germany, workers, managers and business owners would go to work for bowls of hot soup to share: penniless but hopeful that plans agreed upon, and efforts exerted would yield their fruits in due course. Crisises are not forever – if the sectors of society will cooperate and collaborate to contribute to ending them.

In the end, the conclusion in the workshop struck me, as plans and consultative mechanisms in place for the further development of capital markets and making them more accessible to OFWs and the poor were shared and discussed: “Filipinos do have the will, the ability and plans in place that promise to make money flow across sectors honorably.”

This September, known to us as a Marian month, may we have strong, values-based state and media singing  in concert with our people and Mother Mary  the Magnificat of our times: “The Almighty works marvels for me. Holy his name! His mercy is from age to age, on  those who fear him. He puts forth his arm in strength, and scatters the proud-hearted. He casts the mighty from their thrones and raises the lowly.”