Vatican is calling for the establishment of a central world bank and a global public authority to govern the financial institutions which have become ineffective in controlling the masses. The Vatican’s Justice and Peace department rebuked what it called the idolatry of the market and the neo-liberal thinking, adding that it was solely based on technical solutions to economic issues.
Vatican released the document, ‘’Towards Reforming the International Financial and Monetary Systems in The Context of a Global Public Authority,’’ the 18 page document is very specific as it highlights issues directly, for instance, it calls for taxation measures on financial transactions.
The document states that the economic and financial crisis which the world is facing call for everyone to take an in-depth examination of the moral and cultural values at the basis of social coexistence. Adding that the crisis have revealed behaviors such as collective greed, hoarding of goods on a great scale and selfishness. The document points out that there needs to be an ethic of solidarity among the poor and rich nations.
Vatican, through the document, warns that if no solutions is found to the various forms of injustice, the negative effects that will follow on the political, social and economic level will create a growing hostility, violence, and consequently undermine the very foundations of democratic institutions.
The document calls for the establishment of a supranational authority with a worldwide scope and a universal jurisdiction to oversee economic decisions and policies. The authority should start with the United Nations as reference and then become independent and be endowed with the power to oversee and make sure that developed countries don’t exert excessive power over the weak countries.
The Vatican points out in the document why it felt the necessity to call for the reformation of the global economy. It points out to the fact that in financial and economic matters, the vital difficulties originate from the absence of effective set of structures that can guarantee, in addition to a system of governance, a system of government for international finance and the economy.
The document pointed out that the International Monetary Fund (IMF) no longer has the ability or power to stabilize world finance by regulating the money supply and it was unable to oversee the amount of credit risk that the system is taking.