Vatican issues document to rein in global markets

Catholic News Service reports on the new Vatican document that calls for the gradual creation of a world political authority with broad powers to regulate financial markets and rein in the "inequalities and distortions of capitalist development."

The document said the current global financial crisis has revealed "selfishness, collective greed and the hoarding of goods on a great scale." A supranational authority, it said, is needed to place the common good at the center of international economic activity.

The 41-page text was titled, "Toward Reforming the International Financial and Monetary Systems in the Context of Global Public Authority." Prepared by the Pontifical Council for Justice and Peace, it was released Oct. 24 in several languages, including a provisional translation in English.

The document cited the teachings of popes over the last 40 years on the need for a universal public authority that would transcend national interests. The current economic crisis, which has seen growing inequality between the rich and poor of the world, underlines the necessity to take concrete steps toward creating such an authority, it said.

One major step, it said, should be reform of the international monetary system in a way that involves developing countries. The document foresaw creation of a "central world bank" that would regulate the flow of monetary exchanges; it said the International Monetary Fund had lost the ability to control the amount of credit risk taken on by the system.

The entire article, which contains many more details, is available here.