It is almost too easy sometimes to see situations like the current financial/economic crisis in purely functional terms. This inspiring piece is a great antidote for such instrumentalism.

The website where I found the piece is also worth exploring - http://www.uk.iofc.org/home (Initiatives of Change) - for those of you interested in citizen-led social transformation.

Aaron

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What are our Human Responses to Economic and Financial Crisis?Hugh Williams12 December 2008

http://www.uk.iofc.org/node/39224

Playwright and theatre producer Hugh Williams gave these reflections at a recent gathering at the Initiatives of Change centre in London.
The usual question we ask ourselves in a crisis is, ‘Who is to blame?’In one sense most of us are, in that we got it wrong. Very few of ussaw it coming. So no one can crow and say, ‘I told you so’. No oneknows what will happen next week, next month or next year. We all have to live with uncertainty.

Behind economic laws are moral laws. I do not believe that God ispunitive. But there are consequences when we break God’s laws. Thesemoral laws include the just price and a fair reward—not anextortionate one—for work performed and capital invested. Human naturebeing what it is, people are quick to complain when they are underpaidbut not when they are overpaid. There are also the virtues of trust,integrity and responsibility.

Some of the ways God’s laws have been flouted are: greed—the notion that ‘greed is good’ because it stimulates economic activity;pride—reflected in the mantra ‘the end of boom and bust’;recklessness—taking unacceptable risks with other people’s savings toachieve my maximum bonus; materialism—the idea that moral andspiritual values don’t matter; consumerism—shop till you drop; andhedonism—let the good times roll.

Will there be benefits from the present crisis? I believe so. Firstly,there will be more discipline: the end of easy credit, obscenely highsalaries and bonuses and obscenely high house prices. Housing maybecome more affordable for first time buyers. There will be moreresponsible lending and borrowing.

There will be greater realism. Ultimately debt is not an asset or acommodity to be traded indefinitely. It is a liability which someone,somewhere, some day will have to repay. In the present case, that willbe all of us. We can hope for a reformed and socially responsiblecapitalist system, which accepts the need for more regulation to curbits excesses, and a Green dividend—a chance to pollute less as weconsume less. And the return of service as the motive for being in business or banking.

Free market capitalism and democracy go together. But without a moralfoundation neither can work properly. Wealth creation is an honourablepursuit, but taking unacceptable risks to boost vast personal wealthis not.

So what we can do? Firstly, exercise humility. It would be easy tofeel superior and indulge in moralising. But we need to behonest—about where we ourselves may have been reckless, greedy or gotinto debt. My wife and I got into overdraft this Autumn following ourholiday because we had not reckoned on a large service bill to keepour car on the road! The overdraft would have been a lot higher butfor a generous and unexpected gift from my brother. And as he says,‘We need to unclench our fists.’

Secondly, we can have compassion and empathy for those who have losttheir savings, jobs, homes or businesses. Find out how your neighboursand people in your community are affected.

For example, there was not much we could do when a friend lost hisjob. But because we cared and enquired regularly and prayed, he andhis wife felt a tremendous sense of support which they have never forgotten. When they celebrated their silver wedding anniversary wefound we were the only non-family members invited. His wife said this was because we had stood by them during that difficult 18 months ofunemployment.

Finally faith as an antidote to fear—for ourselves and others we meet.It was Franklin D Roosevelt who at the time of the Great Depressiondeclared that the only thing we have to fear is fear itself. Faith is also a reminder of where true values lie.

Ethical Leaders of 2008

Ethical Corporation has announced its pick of 2008 leaders who have done the most to advance the cause of responsible leadership over the year. The chosen leaders have worked on issues ranging from climate change and the financial crisis to human rights, creative capitalism, to sustainable agriculture.

Read the article here.