This paper argues that: a) the indiscriminate application of the German model to all European countries has fostered economic growth in the EU at different speeds; b) Italy, the cradle of Catholic capitalism, is currently attempting to react against austerity measures - imposed by the economic constrictions of the German model – by focusing on the third sector and non-profit companies.

Recent studies have investigated connections between Adam Smith’s economic and philosophical ideas and Catholic Social Teaching (CST). Scholars argue that their common background lies in their respective anthropologies, both endorsing a relational view of human beings. I raise one main concern regarding these analyses. I suggest that the relationality endorsed by Smith lacks a central element present in CST—the other-oriented perspective which is the intentional concern for promoting the good of others. Some key elements of CST, such as (...) love, gift, gratuitousness, and fraternity, find a very different space in Smith’s social view and very little space in his economic view. Moreover, I show how CST relationality is more in accordance with a civil economy view of the market as a place of fraternity and mutual assistance. (shrink)

The “justice of markets” is intricately connected to the treatment of the poor and the disadvantaged in market economies. The increased interest of multinational corporations in low-income market segments affords, on one hand, the opportunity for a more inclusive capitalism, and on the other, the threat of greater exploitation of poor and disadvantaged consumers. This article traces the contributions of Catholic Social Teaching and its basic principles toward providing insight into what constitutes “justice” in such (...) “marketing to the impoverished” situations. (shrink)

The present essay contends that progressive readings of Smith ignore the influence of theological concepts and religious ideas on his work, notably three distinct strands: first, seventeenth- and eighteenth-century natural theology; second, Jansenist Augustinianism; third, Stoic arguments of theodicy. Taken together, these theological elements help explain why Smith’s moral philosophy and political economy intensifies the secular early modern and Enlightenment idea that the Fall brought about ‘radical evil’ and a ‘fatherless world’ in need of permanent divine intervention. As such, Smith (...) views the market as divine regulation of human sinfulness and an instrument to serve God’s providential plan. Indeed, the ‘invisible hand of the market’ represents a nominalist realm where human cooperation intersects with divine providence, blending private self-interest with the public commonweal. I will also argue that Smith’s conception of a morally neutral market is ultimately incompatible with creedal Christianity, in particular orthodox catholic Christian ideas of the common good in which all can share and the practice of charity for those most in need who have been abandoned by state bureaucracy and the marketplace. The main reason is that Smith, not unlike Calvin, tends to divorce human contract from divine gift by dividing the theo-logic of gratuitous reciprocal giving from the economic logic of contract – a dualism that bears an uncanny resemblance with Suárez’s Baroque scholasticism of which Smith’s friend David Hume was rightly critical. In particular, the Reformation and Counter-Reformation theology of Calvin, Luther and Suárez sunders ‘pure nature’ from the supernatural and develops a ‘two ends’ account of human nature, according to which human beings have a natural end separate from their supernatural finality. So instead of participating in the divine oikonomia of asymmetrical gift-exchange, human society and the economy operate autonomously and are ordered towards a purely natural end. Smith conceptualises the market mechanism as both a fundamental precondition for interpersonal relationality and at the same time separate from the sociality it engenders. Smith’s anthropology hovers half-way between Machiavelli and Mandeville’s homo œconomicus in search for maximal profit, on the one hand, and the diametrically opposed conception of man as a gift-exchanging animal striving for mutual social recognition, on the other hand. By viewing market exchange as separate from the private virtues of benevolence, justice and prudence, he introduces a split between the exercise of moral virtues and the operation of commercial society. Such a divide is wholly foreign to the project of an overarching civil compact in the writings of Smith’s contemporary Antonio Genovesi and other members of the Italian schools of civic humanism and civil economy. In consequence, Smith’s œuvre marks a decisive shift from civil to political economy. (shrink)

Resumen: Las finanzas pueden servir a los derechos sociales en una economía de mercado, porque en ella están subordinadas a la economía real, y tienen carácter limitado, pero no en el capitalismo porque en él las finanzas son autorreferenciales, no tienen término, y conducen a una sociedad indefinidamente endeudada, en la que las deudas son impagables. Abstract: Finance can be useful for social rights in a market economy. This is due to the fact of the subordination of finance (...) to real economy and due to its limited character. In contrast, finance in a capitalist economy is self-referential, are boundless and lead to a society in which debts are unpayable. (shrink)

It is a violation of legitimate academic freedom to attempt to link Catholicism to a particular school of economic thought and shut down all further debate. Whether the realm of human choice, which economics describes, is subject to an array of cause-and-effect relationships is obviously a matter for human reason to determine. From there, reason can then investigate these relationships. Although economic policy has a moral dimension, economics as a positive scienceconsists merely of an edifice of cause-and-effect relationships, and to (...) that extent is as autonomous as the purely descriptive sides of all other sciences. (shrink)

The Civil Economy approach, as developed by Italian economists Luigino Bruni and Stefano Zamagni, aims at introducing reciprocity into the economy as a humanizing factor. Despite being presented as an innovative perspective, the CE approach shares many characteristics with the German model of Social Market Economy. The present paper compares both approaches, showing that they in fact share a normative basis and similar aims but address them from diverse points of view; namely, CE addresses them from a (...) virtue ethics perspective and SME from an institutional ethics one. This leads them to stress different aspects and to focus on diverse problems. Therefore, CE would not constitute an alternative to SME but a complement. Thus, a combination of both approaches should allow each to take advantage of their respective strengths and lead to a better result in terms of the common good. (shrink)

The collapse of Communism in the regimes in Eastern Europe and the former Soviet Union has brought forth a plethora of alternative political and economic models for the reorganization of those societies. The vacuum that has been left could be regarded as an ideal laboratory for the testing of competing theories, and the temptations to experiment with the more benign forms of constructivist rationalism are likely to prove irresistible. If liberal capitalism is to be successfully created, it will clearly (...) not have the same biography as it has had in the Western European and Anglo-American countries, where its emergence was the result of slow evolution: often its appearance and survival were due to a quite fortuitous combination of circumstances. In those countries it was not the result of any deliberate democratic choice but the outcome of a happy confluence of traditional rules and customary practices, and the participants in them had little idea of the form of the system that they were creating. Indeed, ideological sanctification was almost an afterthought, and democratic approval was belated and in most cases not enthusiastic. Britain was a liberal capitalist society, and possessed the necessary body of private law, some time before the franchise was significantly democratized . It is, of course, recent theoretical and empirical research which has revealed that the political choice mechanisms that developed haphazardly after the success of the market are a potential threat to it. (shrink)

After explaining the reasons why we must urgently reexamine the foundations of the market economy, the article goes on to illustrate the main differences between the civil market and capitalist market models. It then answers the question of why, in the last quarter of a century, the concept of the civil economy has reemerged as a topic of public debate and scientific research. In particular, it highlights the reasons why the fourth industrial revolution postulates a (...) civil market if the risks involved with the advancement of transhumanism are to be avoided. The article ends with an invitation to transcend the contradictions of the culture of libertarian individualism. Después de aclarar las razones por las cuales es urgente repensar las bases de la economía de mercado, el artículo continúa para ilustrar las principales diferencias entre el modelo del mercado civil y el modelo del mercado capitalista. A continuación, se responde a la pregunta de por qué en el último cuarto de siglo la perspectiva del discurso de la economía civil está resurgiendo en el debate público, así como en la investigación científica. Se presta especial atención a resaltar las razones por las cuales la cuarta revolución industrial debe desarrollarse desde un mercado civil si se quieren evitar los riesgos asociados con el avance del transhumanismo. El artículo termina con una invitación a superar las aporías de la cultura del individualismo libertario. (shrink)

This paper considers the maturation of the American Catholic tradition of social and economic thought in the seminal period between 1920 and 1940, particularly as encapsulated in the work of John A. Ryan. While different social ethical models emerged in the American Church during this time, the dominant school of thought was the liberal tradition associated with Ryan. This tradition, which Ryan described as "true economic liberalism," forged American political liberalism and papal critiques of secular modernity into (...) a new social ethical theory which became the capstone of prewar Catholic progressivism. True economic liberalism first manifested itself in critiques of the Supreme Court's description of "freedom" in Adkins v. Children's Hospital (1923). It took positive form during the 1920s in the widespread Catholic embrace of industrial democracy as a moral alternative to laissez-faire capitalism It was during the 1930s, however, when the Church confronted the economic crisis of the Great Depression, that true economic liberalism became a more totalizing system of social thought. It was also during the 1930s that this theory revealed the difficulties Catholic liberals have had in defining their relationship to a market economy and the state. On one hand, true economic liberalism provoked the creative maturation of Catholic thought and established the Church as a leading progressive critic of capitalism. At the same time, true economic liberalism circumscribed the possible depths of the Catholic moral critique. American Catholics liberals were so committed to constructing a social ethic that upheld "the priceless goods of liberty, opportunity, and democracy," that they accepted a reformed capitalism, guarded and chastened by religion, as the most desirable outcome for a modern economy. As John P. Carroll revealingly wrote, "The remedy, then, for the social evils. . . does not lie in the destruction of the present social system. The way to clean a house is not to dynamite it." By accommodating the Church's social ethic to the ideals of American democracy, liberal Catholics rejected radical reforms in favor of moderate legislative schemes which one writer described in Commonweal as "sniping at capitalism." It was for this reason that so many Catholics fawningly embraced the New Deal and, indeed, found in Franklin Roosevelt the supreme advocate for the principles set forth in Pius XI’s 1931 Quadragesimo Anno. (shrink)

According to the main theories of the knowledge-based economy (KBE), the recent transformations of capitalism are the origins of a general societal change. Managerial theories consider KBE to be a series of win-win mechanisms that simultaneously favour firms, workers and consumers. The cognitive capitalism theory perceives in the development of cognitive capitalism signs of the formation of a post-capitalist economy. This article discusses the main features of these two theoretical orientations and identifies some core ambivalences in KBE. (...) The relationship between the market and society in KBE is marked by a dialectical process. The former incorporates mechanisms of potential economic valorization generated by informal social relationships. To this end, it must internalize actors, practices and cultures that are partially in conflict with it, given that it must make ever greater attempts to bring the overall process back within the ownership regime. One thus witnesses a reduction of the barriers between firms and society, that can simultaneously engender a more subtle dominance of the former over the latter, or the growth of autonomy, self-organization and peer cooperation among social actors. This second possibility relies entirely upon politics and collective action. (shrink)

For virtually all the major schools of Western opinion, the collapse of the Communist regimes in Eastern Europe and in the Soviet Union, between 1989 and 1991, represents a triumph of Western values, ideas, and institutions. If, for triumphal conservatives, the events of late 1989 encompassed an endorsement of “democratic capitalism” that augured “the end of history,” for liberal and social democrats they could be understood as the repudiation by the peoples of the former Soviet bloc of Marxism-Leninism (...) in all its varieties, and the reemergence of a humanist socialism that was free of Bolshevik deformation. The structure of political and economic institutions appropriate to the transition from post-Communism in the Soviet bloc to genuine civil society was, accordingly, modeled on Western exemplars—the example of Anglo-American democratic capitalism, of Swedish social democracy, or of the German social market economy— or on various modish Western academic conceptions, long abandoned in the Soviet and post-Soviet worlds, such as market socialism. No prominent school of thought in the West doubted that the dissolution of Communist power was part of a process of Westernization in which contemporary Western ideas and institutions could and would successfully be exported to the former Communist societies. None questioned the idea that, somewhere in the repertoire of Western theory and practice, there was a model for conducting the transition from the bankrupt institutions of socialist central planning, incorporated into the structure of a totalitarian state, to market institutions and a liberal democratic state. Least of all did anyone question the desirability, or the possibility, of reconstituting economic and political institutions on Western models, in most parts of the former Soviet bloc. (shrink)

Peter Sedgwick explores the relation of a theology of justice to that of human identity in the context of the market economy, and engages with critics of capitalism and the market. He examines three aspects of the market economy: first, how does it shape personal identity, through consumption and the experience of paid employment in relation to the work ethic? Second, what impact does the global economy have on local cultures? Finally, as manufacturing changes out of (...) all recognition through the impact of technology and global competition, what is the effect in terms of poverty? Drawing on the response of the Catholic Church, both in the United States and in papal encyclicals, to the market economy from 1985–1991, Sedgwick argues that its involvement deserves to be better known. Moreover, he recommends that the Churches remain part of the debate in reforming and humanizing the market economy. (shrink)

This paper discusses the varieties of capitalism in transitional societies in Latin America and Central / Eastern Europe. The intended purpose of these transitions from semi-closed import-substituting economies in the first case and state socialist ones in the second was to institutionalize open-market economies. Twenty or thirty years later, there is a variety of types of capitalism in these countries, which I classify into three: open-market, neo-mercantilist, and anemic. The question for sociology is whether these quite (...) different variants represent temporary stages or distortions in the same process of transition or whether, on the contrary, they may institutionalize as discrete forms of peripheral capitalism. Neither standard “legacy” argu­ments nor institutionalist theories offer satisfactory answers to this question. The multiple modernities approach, on the other hand, is more appropriate as a theoretical perspective, but it has not produced yet specific propositions applicable to this question. My paper makes two claims. First, the successful transfer of institutions depends on the congruence between these institutions and the broader institutional framework of the recipient economies, a point not developed by institutionalist theories. I offer a hypothesis in this regard: Two critical nodes of congruence are the regulatory and extractive capacity of the state and the strength of civil society. Second, market capitalism (as liberal democracy as well) is a complex institution, and some of its components “travel” more easily across societies and institutional frameworks, and therefore are easier to institutionalize. This is the source of the hybrid variants. (shrink)

This article is concerned with four questions. How are decisions made in economic affairs? What role does freedom play in a market economy? How important is freedom in a market economy? How best to preserve freedom of economic initiative? Based on responses to those questions, we argue that a personalist economy with its reliance on intermediary groups and preservation of economic freedom represents an alternative to the individualism of capitalism and the collectivism of socialism. The evidence presented (...) breaks the stereotype of private group decision-making as collusive and demonstrates that a personalist economy is a functioning reality in the United States. (shrink)

This paper describes a flaw in the teaching of issues related to market economics and social justice at American institutions of higher learning. The flaw we speak of is really a gap, or an educational disconnect, which exists between those faculty who support market-based economies and those who believe capitalism promotes economic injustice. The thesis of this paper is that the gap is so wide and the ideas that are promoted are so disconnected that students are (...) trapped into choosing one or the other position (or neither) and are left unable to link the two sides of the discussion. Such an educational process is not one that produces free and reasoned discernment. In this paper, we briefly relate how we came to be aware of the disconnect and its harms. We present evidence that a pedagogical gulf exists within the teaching of markets and capitalism at American universities - faculty interviews, course syllabi, portions of the corpus of material generally referred to as Catholic Social Thought, as well as references to traditional, mainstream economic theory. Further, we give evidence of the confusion and frustration among students this gulf causes. We suggest possible reasons for the gulf-primarily through an investigation of the differences in underlying assumptions and misperceptions that exist between two divisions within universities. We conclude by suggesting a set of curricular changes designed to improve teaching. The authors' aim is not to change people's minds. It is to change their teaching. The authors believe that these curricular changes will leave students less frustrated and better prepared for a life of significant service - with improved critical thinking skills. (shrink)

Both modern political economy and capitalism rest on the separation of economics from ethics, which in turn can be traced to a number of shifts within philosophy and theology – notably the move away from practices of reciprocity and the common good towards the sole pursuit of individual freedom and self-interest. In his latest book, Luigino Bruni provides a compelling critique of capitalist markets and an alternative vision that fuses Aristotelian-Thomist virtue ethics with the Renaissance and Neapolitan Enlightenment tradition (...) of ‘civil economy’. The book develops three broad yet closely intertwined theses. First, that Greco-Roman Antiquity and the Christian Middle Ages invented models of civil life that transcended tribalism and political absolutism but produced sacral communities wherein the power and privilege of the ‘few’ denied freedom and equality to the ‘many’. Second, that modernity inaugurated the primacy of free and equal individuals over communities but that it undermined and destroyed the social bonds on which societies ultimately depend. Just as in Antiquity and the Middle Ages we had communities without individuals, so in the modern era we have individuals without communities. Beyond these two similarly undesirable conditions, Bruni proposes the ‘civil economy’ model as the most radical alternative – the book’s third and most important thesis. Accordingly, the ‘civil economy’ alternative combines the relationality and sociability of all human beings with the flourishing of each and everyone by fusing self-interest with wider social benefit. Crucially, the ties of public faith (fides) and friendship (philia) can overcome the false divide between egoism and altruism in the direction of a moral market that is governed not just by the pursuit of profit but also by the practice of virtue. (shrink)

Even in a regulated and competitive market economy the behavior of firms leaves much to be desired. Looking beyond the invisible hand of the market and the iron hand of the law, this chapter outlines and assesses arguments for the intangible hand of civil society. The central mechanisms in our model depend on the importance of social esteem and self-esteem. Such esteem depends on assessments of true intentions and dispositions for costly pro-social actions. Instrumental or (...) reputation-shaping pro-social actions matter little in the economy of esteem. What is required is a common belief that conformity to certain costly standards benefits all; and that conformity is observable and elicits social approval (and vice versa). We acknowledge and review why in the realm of competitive commercial organizations, the challenges may be considerable for the intangible hand model to take hold. Moralizing (or professionalizing) the firm’s agents, inducting the voice of affected parties in the deliberation of firms, public (if strategically delayed) disclosure of internal deliberations, and public commitments by senior leaders all offer promise in enacting an economy of esteem in the world of competitive commercial firms. (shrink)

The decline in organized violence in the period after World War II provides the promise of a more peaceful future. How can we move further in this direction? Democratic peace—the absence of armed violence between democracies and the domestic peace of mature democracies—may provide part of the answer. This phenomenon is a well-established empirical regularity, but its mechanisms and its limits remain a subject of continuing research. The key role of democracy in reducing violence has been challenged by alternative explanations, (...) such as the liberal peace, the capitalist peace, the developed peace, the organized peace, the quality of government peace, the feminist peace, and the civil society peace—but also by realism. In this essay, part of the roundtable “World Peace (And How We Can Achieve It),” I argue that it is a social-democratic peace that provides the best basis for a lasting world peace. This formula includes democracy but incorporates additional elements, such as a market economy, an active and competent state, close international cooperation, and the reduction of discrimination and group-based inequality. Combining these elements would provide a solid basis for eliminating violence between, as well as within, states. The main limitation of such a program is its demanding nature. Few states and interstate relations as yet fulfill all these conditions, but the long-term trends are moving in the right direction. (shrink)

Both modern political economy and capitalism rest on the separation of economics from ethics, which in turn can be traced to a number of shifts within philosophy and theology – notably the move away from practices of reciprocity and the common good towards the sole pursuit of individual freedom and self-interest. In his latest book, Luigino Bruni provides a compelling critique of capitalist markets and an alternative vision that fuses Aristotelian-Thomist virtue ethics with the Renaissance and Neapolitan Enlightenment tradition (...) of ‘civil economy’. The book develops three broad yet closely intertwined theses. First, that Greco-Roman Antiquity and the Christian Middle Ages invented models of civil life that transcended tribalism and political absolutism but produced sacral communities wherein the power and privilege of the ‘few’ denied freedom and equality to the ‘many’. Second, that modernity inaugurated the primacy of free and equal individuals over communities but that it undermined and destroyed the social bonds on which societies ultimately depend. Just as in Antiquity and the Middle Ages we had communities without individuals, so in the modern era we have individuals without communities. Beyond these two similarly undesirable conditions, Bruni proposes the ‘civil economy’ model as the most radical alternative – the book’s third and most important thesis. Accordingly, the ‘civil economy’ alternative combines the relationality and sociability of all human beings with the flourishing of each and everyone by fusing self-interest with wider social benefit. Crucially, the ties of public faith (fides) and friendship (philia) can overcome the false divide between egoism and altruism in the direction of a moral market that is governed not just by the pursuit of profit but also by the practice of virtue. (shrink)

Proponents of rising agricultural prices argue that enhanced farm profitability from higher commodity prices could generate positive spillovers for farm labourers by creating greater demand for their labour at higher wages overtime. We studied 75 households of fulltime and seasonal farm labourers engaged in rice-wheat production in Mandi Bahauddin district, Punjab, Pakistan, using cross-sectional survey data and interviews to examine how farm labourers’ food security and livelihoods have evolved amid rising market prices of rice-wheat crops and generalized inflation. For (...) a holistic analysis, we combined political economy framework and structural class analysis to unveil the contradictory role of non-market transfers of informal credit, and gifts extended by capitalist farmers in at once enhancing the farm labourers’ short-term food security while undermining their long-run food security. The latter occurs through informal credit mobilization, where growing indebtedness among farm labourers leads to wage squeezes. Structural capitalist farmer-labourer class exploitation combines with weak farmgate price response to undermine prospects for a positive trickle-down effect of higher food prices in the form of higher wages for farm labourers. We interpret these findings in the context of ongoing debates on the welfare implications of rising food prices for the poor in Global South countries. We propose policies including redistributive land and housing reform, minimum wage regulation, consolidation of public and civil society safety nets, and the creation of alternative low-and-semi-skilled livelihood opportunities. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:DESIRED POSSESSIONS: KARL POLANYI, RENÉ GIRARD, AND THE CRITIQUE OF THE MARKET ECONOMY Mark R. Anspach CREA, Paris! f '""phe most radical critique of liberal capitalism ever:" that is how JL Louis Dumont describes 7Ae Great Transformation, Karl Polanyi's classic work on the rise of the market system. But the French anthropologist goes on to observe that, when one confronts this same critique with the ethnography (...) of tribal societies, "one may ask whether Polanyi did not in fact come up short; having criticized the economy as an idea, he thought he could retain it as a thing..." (Dumont xiv, xvi). Is the economy indeed a "thing" that has always existed in some form everywhere, and if so, what manner of thing is it? In a word, what is an economyfor? Is there a particular aim that any economy must serve? A specific motive that it necessarily brings into play? We will begin by looking at Polanyi's answer to this question. "No human motive is per se economic," Polanyi tells us. "There is no such thing as a sui generis economic experience in the sense in which man may have a religious, aesthetic, or sexual experience." It is market society, with its dependence on a disembedded economic system, which fosters the illusion that the "economic" motives of hunger and gain necessarily underlie every economic system (1968, 63-4). In reality, however, "human beings will labor for a large variety of reasons as long as things are arranged accordingly." For example, "Monks traded for religious reasons... The KuIa trade ofthe Trobriand islanders... is mainly an aesthetic pursuit. Feudal economy was run on customary lines. With the Kwakiutl," industry appears to have been "a point of honor," and 1 82Mark R. Anspach so on (1968, 68). The trick, it seems, is to "arrange things accordingly." An economic system can be "run on noneconomic motives," Polanyi explains, without linking the process of production or distribution "to specific economic interests attached to the possession of goods," as long as "every single step in that process is geared to a number of social interests which eventually ensure that the required step be taken" (2001, 48). Now, there is a danger in this presentation. It could lead a reader to conclude that other societies arrange things cunningly so that all these social interests are harnessed to ensure the performance of the steps necessary to economic processes in a kind ofelaborate ruse—a ruse which the out-in-the-open operation ofthe economy in our society gives us the ability to see through. Very well, such a reader might acknowledge, the economy is an "instituted process," and, yes, the act of instituting it "shifts the place ofthe process in society" (Polanyi 1968, 148), but ifyou track it down to its hiding place and strip away the social contrivances in which it has been embedded, what you will find is still the economy as we know it—indeed, the economy which market society alone lays bare. In this reading, or rather misreading, the "real" economic aims that market society achieves directly are elsewhere accomplished only in the most cumbersomely indirect fashion. This kind of erroneous conclusion will likely be difficult to counter as long as one posits an opposition between multiple, variable and diffuse social interests, on the one hand, and the apparently straightforward individual interest in the possession of goods, on the other. Wherever the economy is submerged in social relationships, Polanyi says, a man "does not act so as to safeguard his individual interest in the possession ofmaterial goods; he acts so as to safeguard his social standing, his social claims, his social assets" (2001, 48). The problem with such an opposition between individual and social is that a market-minded theorist can overcome it simply by broadening the individual interest in the possession ofgoods to include the possession ofreified social goods. Once social interests are conceptualized as "social assets," to use Polanyi's own expression—or as "symbolic capital," to cite a more recent formulation—they lend themselves to "economizing" even in the formal sense, and Polanyi's carefully constructed distinction between the substantive and the formal collapses, apparently confirmingthe universality of the market... (shrink)

Morality and economic rationality: integrative economic ethics as the rational ethics of economic activity; Part II. Reflections on the Foundations of Economic ...

Catholic Social Teaching has taken a remarkable turn with the May 1991 document on economic ethics,Centesimus Annus. During their one hundred year history, church documents were notable for their courageous championing of the rights of the least advantaged; they were much less distinguished for their understanding of how markets and incentives function in capitalism. Most business leaders admired church teaching for its compassion but had little respect for its competence. With this most recent document, however, there is (...) a growing conviction that the church may have come of age in economic ethics. Even theWall Street Journal has celebratedCentesimus Annus. The article outlines the highlights of the document and its points of continuity with the tradition. Responses from business and the academy are also briefly considered. (shrink)

Making use of capital to develop China’s socialist market economy requires China not only to fully recognize the tendency of capital civilization but also to realize its intrinsic limitations and to seek conditions and a path for overcoming contradictions in the mode of capitalist production. Karl Marx’s theory of capital provides us with a key to understanding and dealing properly with problems of capital. At the same time we should also pay heed to Western research on, experience with, and (...) lessons from capitalist economies developed over the past four centuries summarized in the field of “business ethics”. (shrink)

This article seeks to subject Fred Block and Margaret Somers’ influential reconstruction of Karl Polanyi’s The Great Transformation to a systematic review. I show that Block & Somers’s central claim—that Polanyi’s thinking underwent a “theoretical shift” as he wrote his seminal book—is not supported by archival evidence. I demonstrate that all the narrative keys that Block & Somers advance to lend plausibility to their discovery of a “theory of the always-embedded market economy” in The Great Transformation, wither under critical (...) probing. While this article does not advance a comprehensive alternative reconstruction of Polanyi’s main work, the essential continuities it uncovers in his social thought suggest that Polanyi’s book is best understood as the culmination of his long-standing efforts to rebuild a radically transformative socialism on non-Marxist foundations. The recognition that Polanyi’s political purposes extend far beyond regulated capitalism or social-democracy, I conclude, makes it possible—and indeed necessary—to read The Great Transformation as an internally coherent work of social theory. (shrink)

Michael Novak’s concept of democratic capitalism in Poland aroused great interest for several reasons. The most important of them consisted in its close relation to the teaching of the Polish Pope John Paul II. The second was its temporal coincidence with the start of a political transformation in Poland, when a model of development consistent with Polish tradition and social expectations was sought. The third was related to its Slavic roots and origin, which gained in importance given a (...) perceived civilizational backwardness of the countries belonging to the former socialist bloc. For Polish Catholic thinkers, the concept of democratic capitalism initially seemed to promise a smooth transition to a market economy, protecting society from the shock of a possible collision with predatory capitalism. But the discussions of Michael Novak’s conception which took place in Poland at that time were unfortunately burdened with fears of cultural pluralism and with leaving individuals too much freedom in implementing their own ways of achieving happiness. Polish conservatives, who were in power at that time, did not seem to understand the important need for a dynamic moral and cultural system in a society that was just starting its modernization processes. It is paradoxical, but in these discussions what was most feared was the weakening of religious traditions in Polish society. According to the author, this fear caused distrust of the democratic conception, and especially its moral foundations, which continues to this day. This paper, therefore, also contributes to reflection on to what extent the teachings of John Paul II have been absorbed in Polish conservative circles. (shrink)

Upon what kind of moral order does capitalism rest? Conversely, does the market give rise to a distinctive set of beliefs, habits, and social bonds? These questions are certainly as old as social science itself. In this review, we evaluate how today's scholarship approaches the relationship between markets and the moral order. We begin with Hirschman's characterization of the three rival views of the market as civilizing, destructive, or feeble in its effects on society. We (...) review recent work at the intersection of sociology, economics, and political economy and show that these views persist both as theories of market society and moral arguments about it. We then argue that a fourth view, which we call moralized markets, has become increasingly prominent in economic sociology. This line of research sees markets as cultural phenomena and moral projects in their own right, and seeks to study the mechanisms and techniques by which such projects are realized in practice. (shrink)

The article considers the research developed by the UniNomade project concerning the global financial crisis within the theoretical framework of Italian ‘workerism’ and post-workerist theory. On the whole, the UniNomade project offers a rich variety of stimuli to debate. However, in the work of UniNomade, there are some problematic elements, particularly when the authors invoke a series of ‘excesses’ in ‘cognitive capitalism’. This review-article argues that the old post-workerist thesis of an obsolescence of the law of value introduces into (...) UniNomade’s work an ambiguous determinism. (shrink)

Globalization has been one of the most hotly contested phenomena of the past two decades. It has been a primary attractor of books, articles, and heated debate, just as postmodernism was the most fashionable and debated topic of the 1980s. A wide and diverse range of social theorists have argued that today's world is organized by accelerating globalization, which is strengthening the dominance of a world capitalist economic system, supplanting the primacy of the nation-state by transnational corporations and organizations, (...) and eroding local cultures and traditions through a global culture. Contemporary theorists from a wide range of political and theoretical positions are converging on the position that globalization is a distinguishing trend of the present moment, but there are hot debates concerning its nature, effects, and future.2 Moreover, advocates of a postmodern break in history argue that developments in transnational capitalism are producing a new global historical configuration of post- Fordism, or postmodernism as an emergent cultural logic of capitalism (Harvey 1989; Soja 1989; Jameson 1991; and Gottdiener 1995). Others define the emergent global economy and culture as a "network society" grounded in new communications and information technology (Castells 1996, 1997, and 1998). For its defenders, globalization marks the triumph of capitalism and its market economy (see apologists such as Fukuyama 1992 and Friedman 1999 who perceive this process as positive), while its critics portray globalization as negative (see, for example, Mander and Goldsmith 1996; Eisenstein 1998; and Robins and Webster 1999). Some theorists see the emergence of a new transnational ruling elite and the universalization of consumerism (Sklair 2001), while others stress global fragmentation of “the clash of civilizations” (Huntington 1996). Driving “post” discourses into novel realms of theory and politics, Hardt and Negri (2000) present the emergence of “Empire” as producing evolving forms of sovereignty, economy, culture, and political struggle that unleash an unforeseeable and unpredictable flow of novelties, surprises, and upheavals. Discourses of globalization initially were polarized into pro or con celebrations or attacks.. (shrink)

The rise of liberal market economies, propagated by neoliberal free market thought, has created a vacant responsibility for public interests in the market order of society. This development has been critiqued by Catholic social teaching (CST), forcefully arguing that governments and businesses should be directed to the common good. In this debate, no attention has yet been given to the Reformational tradition and its principle of sphere sovereignty, which provides guidelines on the responsibilities of governments (...) and companies for the public interest of society. This article analyzes the differences and similarities between CST and the Reformational philosophy in their critiques of the neoliberal free market perspective of Hayek. We apply the three perspectives to the case of orphan drugs in the pharmaceutical industry and show that CST and the Reformational philosophy offer valuable insights in correction to Hayek’s views on the responsibilities of governments and companies for public health interests. (shrink)

Since the collapse of the Soviet Union, discussion of alternatives to capitalism has increasingly ceded place to discussion of alternative "models" of capitalism. In this literature, "Anglo-Saxon" capitalism is frequently opposed to "Rhenish" capitalism. A classic example of the idiom is Michel Albert's Capitalism Against Capitalism. Albert and other "rhenanophiles" favorably contrast the generous social welfare provisions characteristic of the German "social market" economy to the relative lack of social protection (...) that obtains in the United States and Great Britain. The "solidarity" exhibited within the "Rhenish" model is, however, limited to members of the "national community." Millions of "foreigners" in Germany continue to have a legal status that not only restricts their access to social benefits, but makes them subject to expulsion. The withholding of citizenship discharges the same economic function as the generalized suppression of social welfare in "Anglo-Saxon" capitalism: viz, controlling "surplus" population and thus social costs. (shrink)

Social life is changing very fast. People are trying to find out reasons of living in a safe society and understand their role in it. The ‘wrong’ and ‘right‘ models of the social life, state and law systems are appearing. In the XXth century, one of them – socialism – made suggestion how to solve social problems, determinated of capitalism. This work deals with the situation of Lithuanian social thought in the Republic of Lithuania (1900-1940). (...) In the article, the standpoint of catholics of socialism is reflected. Catholics displayed socialism as a system, which accumulated many distorted images about human nature, motivations of human behavior, society and its functionating. Considering the society being an organic totality of individuals, but not a faceless mass, and an individual being a personality having natural rights to be respected, but not considered as a little screw without any rights in the state machine, with whom any experiments may be performed, they disclosed Utopia of the idea, proposed by socialists, of the possibility of a perfect society creation by the only preliminarily arranged correct plan,. For this purpose to be achieved, they constructed a model of socialist economy and then destroyed it, demonstrating economical unefficiency of this system. In this manner, intellectuals warned Lithuania and its people about the destructiveness of the realization of such an experiment. In spite of criticism of socialism, some intellectuals, such as A. Maceina, S. Šultė and S. Šalkauskis, appeared to be rather respective to the new social ideas and did not distinguish any social economic system as the best and only one. They thought that all the world, including Lithuania, has to create a new social life and take as a base the progressive ideas of socialism and capitalism. According to the opinion of the catholics, the most reliable way to a safe sočiety and economical welfare passes through the cooperation of individuals and state’s duty to create right laws. Ideological spirit was the main obstacle for the intellectuals to recognize trends of socialism by their aims and methods. That is the reason, why socialism was identified as bolsevism. However, the expression of the intellectuals’ opinion about socialism, its ideological herritage and perspectives enriches the research of the Lithuanian legal phylosophical and political thought and allows to understand better the ideological development of socialism and to define its competence and limits of validity in the contemporary world. Valuable ideas may be fruitfully used in creating a democratic society, social state and the rule of law. (shrink)

Focusing on Greece, this essay aims to contribute to a philosophical understanding of Europe’s current financial crisis and, more generally, of the aporetic implications of the modern determination of freedom as such. One the one hand, I draw on Hegel’s Philosophy of Right in order to argue that modernity entails a potential conflict between a market economy and a state that is supposed to further the interests of the society as a whole. On the other hand, I draw on (...) Sophocles’ Oedipus the King as well as on Hegel’s account of tragedy in the Phenomenology of Spirit to reinterpret the conflict between the spheres of civil society and the state as a tragic conflict. Modernity threatens to undermine itself from within, I maintain, because the simultaneous development of capitalism and democracy makes it very hard to prevent the sphere of particular interests from encroaching upon the sphere of politics. (shrink)

Ethicmentality is an innovative book. It blends ethics with mentality to capture the interdependence of ethical life and social life creatively. The book is also innovative because of the way this interdependence is explored. By focusing on practical ethical behavior in today’s economy, business, and society, Michela Betta has advanced an understanding of ethics freed from the burden of moral theory. By introducing a new type of analysis this book also contributes to methodological innovation. Familiar issues are revisited through (...) the notion of ethicmentality. Capitalist economy is presented in terms of a mentality embedded in society, culture, and politics. Government is revealed as mentality about how to govern economically through market freedom rather than human rights. The rise of the financial economy is described as challenging the traditional capitalist mentality of equal opportunities. A money mentality around debts and owing is perceived as having replaced credit and owning, and the rise of corporation managers as having destroyed the old mentality of ownership. Ethicmentality shows the potential of constructive critique from economic, business, and society perspectives. It also breaches traditional limits by developing the idea of ethical capital and entrepreneurial ethics. Ethical thinking is infused with the Aristotelian notion of virtues and moderation to reflect about modern work. Ethicmentality helps us see the complexity of social and personal life. Given the pervasive nature of mentality and ethics’ focus on individual deliberation, ethicmentality represents their productive combination, a new blend for ethical and social analysis. (shrink)

This article discusses the value of gift exchange in online social media. In the first part, the authors show how most of the commentators have considered online gifting as an alternative to the classical market economy. Yet the recent (re)territorialization of the web challenges this perspective. As a consequence, the internet can no longer be considered a reply to capitalism. In the second part, the authors argue that in anthropology and social philosophy the term ‘gift’ has (...) often been used improperly, and that gift exchange has nothing to do with goods exchange, but with mutual recognition. In the third part, they use this definition to stress the importance of gift circulation through Facebook’s ‘Like’ button and the Twitter feature called ‘Mention’. In conclusion, the authors deal with the ‘Like economy’, i.e. the interference between gift exchange and market economy which is daily at work online. (shrink)

This essay proposes an interdisciplinary framework for teaching markets and morals by exploring the linkages between political economy, civil society, and culture. Free markets in capitalist mixed economies shape, and are shaped by, political institutions of representative democracy, the vibrancy of civil society, and the values, norms, and beliefs embedded in culture. The major challenge for liberal society and free markets is to reconcile individual and group interests with the common good. The cultural contradictions of capitalism reflect (...) the inadequacy of commercial virtues to sustain a liberal society. External constraints of law and institutional checks and balances in all spheres need to be conjoined with internalized moral constraints of a well-ordered individual conscience. This, in turn, requires a normative order which transcends radically the selfishness of individual and group interests, thus preserving liberty and democracy while enhancing economic efficiency and the social beneficence of free markets. The essay thus confirms Alexis de Tocqueville's notion of the interdependence of liberty, morality, and faith. (shrink)

This volume analyses contemporary capitalism and its crises based on a theory of capitalist evolution known as the social structure of accumulation theory. It applies this theory to explain the severe financial and economic crisis that broke out in 2008 and the kind of changes required to resolve it. The editors and contributors make available new work within this school of thought on such issues as the rise and persistence of the 'neoliberal' or 'free-market' form of (...) class='Hi'>capitalism since 1980 and the growing globalization and financialization of the world economy. The collection includes analyses of the US economy as well as that of several parts of the developing world. (shrink)

This article attempts to descriptively characterize the impact of the sharing economy, using Uber as an example, on the social welfare of those people working via the app. For this purpose, the author proposes a theoretical concept of a technologically networked economy, which is a component of a broader heuristic model of a technologically networked reality. Furthermore, a critical review of the different approaches to the sharing economy and the diverse practices within it have been carried out. The results (...) of the theoretical exploration of this increasingly popular phenomenon revealed parallels with the problems of nondigital labor markets in the field of the workforce. The clear separation of grassroots sharing practices from those in name only like Uber suggest that the latter do not realize social welfare more broadly than ordinary capitalist enterprises. (shrink)

Observers of agriculture and theenvironment have noted the recent remarkable growth ofthe organic products industry. Is it possible for thisgrowth in the organics market to contribute toprogressive environmental and social goals? From theperspective of green consumerism, the organics marketis a powerful engine for positive change because itpromotes greater environmental awareness andresponsibility among producers and consumers alike.Given its environmental benefits and its ability touse and alter capitalist markets, organic agricultureis currently a positive force for environmentalism.Still, there are contradictions between (...) organic idealsand practice – e.g., the reductionism of organicstandards, the limitations of private organiccertification, and the widespread practice ofinput-substitution – that emerge through thedynamics of the capitalist market. As the marketmatures, these contradictions will increasinglyundermine the very environmental benefits that are thefoundation of organic agriculture. Fundamental change,therefore, is not likely to occur through the marketalone. There are ways, however, that the organicsmarket could contribute to a broader movement leadingto collective action. For instance, the organicsmarket tends to undermine commodity fetishism in theagrifood system, thereby strengthening civil society.In addition, the market provides space and resourcesfor social movement activity, such as in the struggleover the National Organic Standards. (shrink)

Drawing from the varieties of capitalism theoretical framework, the study explores the home country influences of multinational corporations on their corporate social responsibility practices when they operate outside their national/regional institutional contexts. The study focusses on a particular CSR practice of seven MNCs from three varieties of capitalism – coordinated, mixed and liberal market economies – operating in the oil and gas sector of the Nigerian economy. The study concludes that the corporate codes of conduct of (...) these MNCs operating in Nigeria, to a large extent, reflect the characteristics of their home countries' model of capitalism, respectively, albeit with certain degree of modifications. The home countries' model of capitalism is also found to have implications for the degree of adaptability of these MNCs' CSR practices to the Nigerian institutional context – with the mixed market economy model of capitalism adapting more flexibly than the liberal and coordinated market economies, respectively. The findings of this study will contribute to the emerging literature on the institutional embeddedness of CSR practices in transnational social spaces, understanding of varieties of capitalism, and CSR in developing economies. (shrink)

Our economy is neither overwhelmingly capitalist, as Marxist political economists argue, nor overwhelmingly a market economy, as mainstream economists assume. Both approaches ignore vast swathes of the economy, including the gift, collaborative and hybrid forms that coexist with more conventional capitalism in the new digital economy. Drawing on economic sociology, anthropology of the gift and heterodox economics, this book proposes a groundbreaking framework for analysing diverse economic systems: a political economy of practices. The framework is used to analyse (...) Apple, Wikipedia, Google, YouTube and Facebook, showing how different complexes of appropriative practices bring about radically different economic outcomes. Innovative and topical, Profit and Gift in the Digital Economy focusses on an area of rapid social change while developing a theoretically and politically radical framework that will be of continuing long-term relevance. It will appeal to students, activists and academics in the social sciences. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:BOOK REVIEWS lVIoore. This is a good thing and, I think, marks an advance (evolutionary ~) in the way the history and philosophy of science should be done. In addition, the book itself is well made with very few printing errora. St.•Jerome's College Univei·sity of Waterloo Waterloo, Ontario, Canada F. F. CENTORE Will It Liberate? Questions About Liberation Theology. By MICHAEL NOVAK. New York: Paulist Press, 1986. Pp. viii+ (...) 311. $14.95. Not long ago, it was common for people to interrupt theoretical presentations with the exclamation "Bottom-Line! " as a way of indicating that they wished to get right to the practical conclusions. By and large, Michael Novak's long-running debate with the liberation theologians and philosophers has been a debate at the bottom-line. There theologians and philosophers have developed elaborate and varied intellectual arguments which :finish with quite similar decisions in the realm of political economy and international relations. Gustavo Gutierrez argues in terms.of the Catholic Christian tradition, Jon Sobrino in terms of the gospels, J~nrique Dussel in terms of a phenomenology of presence. But, in the end, they almost invariably anive at positions which are fundamentally opposed to capitalist property and market arrangements in general and to the dominance of the first world over the third world in particular. They come out there, of course, because they start "on the left" in their appreciation of the spiritual and material oppression and its causes. No wonder, then, that their direction in politics and economics is almost invariably for some species of socialism. Novak's question in Will it Liberate? is, as the title indicates, whether they have the causes and the solutions straight, and he goes right to it without much eonsideration of their laborious efforts in formal theology and philosophy. People who have read books like The Spfrit of Democratic Capitalism and Freedom icith Justice will be familiar with the basic line of reasoning here. The state of the world, especially in Latin America, the fons et origo of liberation thought, is indeed parlous, marked by widespread poverty, misery, ignorance, and abuse. Thus far, Novak is in complete accord with the liberationists. Nor does he deny that class divisions and national dependency have much to do with the problems. What he asks, :first of a11, is whether Latin American and other third-world economies have been genuinely capitalist and whether a Leninist dependency analysis will BOOK REVIEWS 363 really account for their woes. He argues that the most troubled economies have remained basically pre-capitalist with heavily regulated and pl'otected markets maintained by authoTitarian political systems and that world trade patterns as well as the experience of the " East Asian Rim " casts doubt on the connection between first-world prosperity and thirdworld indigence. Secondly, he calls into doubt the expectation that socialism, under any form which really undoes capitalist structures, can remedy the woes. The socialist aspirations of the liberationsists remain, on the whole, vague and utopian; but, to the extent that they take flesh, they tend toward a statist control of politics, economics, and culture. But all our experience of statism, in the world beyond dreams, is one of limited political and cultural freedom and of diminished economic energy. The second world, including its extensions in Cuba and Nicaragua, is proof that liberation, so understood, will not liberate. What Novak would like of the liberation theologians and philosophers is to give more serious attention to the liberal tradition with its emphasis on individual autonomy and voluntariness in politics, economy, and culture. Without saying so explicitly, he asks them to study Madison and Mill now in prefel'ence to Marx and Lenin. He insists that this tradition is, in its best manifestations, profoundly social and that its application, in contrast to that of the socialist ideal, has meant unparalleled (albeit imperfect ) achievements in alleviating misery and in liberating people. For the most part, it is a practical tradition which has developed institutions of democratic capitalism while eschewing the discussion of theology and metaphysics. However, Novak believes that these institutions, despite the secularism of many of the chief liberal writers, have their roots in a Judeo-Christian sensibility combining confidence in... (shrink)

Resumen: Desde el principio ha sido muy obvio que el capitalismo es un tipo de empresa engañosa. Por otro lado, el capitalismo ha estado vinculado a la acumulación masiva de riqueza. Como se indica, el capitalismo ha estado vinculado a la explotación, a una creciente desigualdad de la riqueza, a colapsos económicos y a conflictos internacionales. La economía política ha estudiado durante mucho tiempo cómo interactúan las dos caras del capitalismo. ¿Es posible arreglar los problemas del capitalismo preservando sus beneficios, (...) como afirman sus partidarios? Algunos anticapitalistas sostienen que limitar o eliminar el capitalismo es la única manera de acabar con él. La teoría tendrá el mayor impacto en el resultado de esta situación. Los economistas ven los mercados como un lugar en el que todos reciben un trato justo a la hora de valorar y recompensar las contribuciones económicas a la sociedad. El reino del mercado, en vez de culpar los defectos sociales e individuales de manera global, culpa la carencia del individuo manera particular. La clave para formular una predicción sólida de la caída del orden actual es la tesis marxiana de que las relaciones de producción constituyen la base de toda civilización. En otras palabras, las estructuras de clase sustentan las instituciones políticas, culturales e ideológicas. De ello se desprende que una sociedad postcapitalista sólo puede desarrollarse en la medida en que surjan nuevas relaciones de producción, o de clase (o más exactamente, relaciones “sin clases”). De forma similar a cómo surgieron nuevas relaciones económicas a lo largo del tiempo cuando Europa pasó de una sociedad feudal al capitalismo industrial, y cómo se construyeron nuevas sociedades sobre estos sistemas, en las próximas generaciones surgirán nuevas manifestaciones de crecimiento masivo de la producción para que la especie humana experimente menos épocas de crisis económica. A finales de 2007, la economía mundial se desplomó rápidamente, obligando a los bancos a declararse en quiebra y a necesitar rescates gubernamentales. La principal idea errónea de las economías de mercado, que se autorregulan de forma natural, quedó rebatida. La catástrofe brindó la oportunidad a los individuos de reevaluar cuestiones de larga data que habían quedado sin resolver porque desafió las nociones preconcebidas. La obra fundamental de Marx, “El Capital”, según las librerías de todo el mundo, tuvo un espectacular aumento de ventas tras la crisis. En algunos aspectos, el marxismo parece estar regresando. Debido a la tradición crítica que creó, que abarca las humanidades y las ciencias sociales, el marxismo no puede entenderse adecuadamente dentro del marco del siglo XIX. Marx fue capaz de influir en el agua que bebemos y en el aire que respiramos incluso en lugares donde fue rechazado. El marxismo es omnipresente, como han demostrado las dos primeras décadas del siglo XXI. Mientras sirvan de catalizadores para el bienestar y el desarrollo de la sociedad, las tendencias económicas contemporáneas como el espíritu empresarial y la libre empresa no son desalentadas por el marxismo moderno. (shrink)

State capitalism has recently come to the fore as a transversal research object in the social sciences. Renewed interest in the notion is evident across several disciplines, in scholarship addressing government interventionism in economic life in major developing countries. This emergent field of study on state capitalism, however, consistently bypasses the remarkable conceptual trajectory of the notion from the end of the 19th century to the present. This article proposes an intellectual-historical survey of state capitalism’s many (...) lives across different ensembles of writing: early Marxist pronouncements on state capitalism at the time of the Second International; theories of state capitalism evolved in the first half of the 20th century in response to the European experience of war and fascism; dissident portrayals of the Soviet Union as state-capitalist; post-Second World War theories of state-monopoly capitalism in the Western Bloc; examinations of state capitalism as a development strategy in ‘Third World’ nations in the 1970s and 1980s; and finally, today’s scholarship on new patterns of state capitalism in emerging economies. Having contextualized each of these strands of writing, the article goes on to interrogate definitional and conceptual boundaries of state capitalism. It then maps out essential institutional features of state-capitalist configurations as construed in the literature. In sharp contrast to 20th-century theories of state capitalism, present-day scholarship on the topic tends to retreat from the integrated critique of political economy, shifting its problematics of state-market relations to meso- and micro-levels of analysis. (shrink)