Catholic Social Teaching Corner: Centesimus Annus
August 21, 2012
The Free Market, World Peace and the Pratfalls of Democracy
The fall of Communist governments in Eastern Europe gave Blessed John Paul II the subject matter for much of the anniversary encyclical Centesimus Annus, “On the Hundredth Anniversary of Rerum Novarum.” (1991) With the decades-long binary conflict between East and West over, the world faced questions of how best in to proceed together toward a just and peaceful world order. The encyclical contains trenchant reflections on the free market, on peace and justice and on democracy. It offers a broad vision of justice that challenges clichéd political agendas. Centesimus Annus has sometimes been taken as the Church’s ratification of free market economics – even as a departure from earlier encyclicals. For example, in confronting the issue of third world development, the Pope writes, “It would appear that, on the level of individual nations and of international relations, the free market is the most efficient instrument for utilizing resources and effectively responding to needs.” (34) And indeed sounding a little like a conservative political commentator, the Pope talks about defects in the “welfare state” as harming the authentic vitality of business on the local level. (48) But, while it’s true that the Pope offers some fairly common sense praise of a free economy, the encyclical is hardly a libertarian manifesto. Government intervention is necessary, especially in poor countries, so that people can participate in the market. (34) Further, the Pope rejects a “capitalistic ideology” which ignores the problems of poverty in the world and “which blindly entrusts their solution to the free development of market forces.” (42) And Catholics in political life must always keep in mind a “preferential option for the poor.” (57) Lost in the attention given to the letter’s economic ideas is its emphasis on world peace. Blessed John Paul II saw the collapse of the Berlin Wall as the end of a long era, dating back to World War I, of militarism and destructive ideologies. He reflects back on the failures of the twentieth century and, in a bracing fashion, uses World War II as an example of the failure of war to solve problems. Considering its legacy of totalitarianism, “The war, which should have re-established freedom and restored the right of nations, ended without having attained these goals.” (19) He offers a contrasting vision in a moving passage in which he pays tribute to his compatriots in the Polish Solidarity movement, among others: