Thought Leaders | The Pope and the CEO

Shalom: The Real Utopia

Cornelius Plantiga is a theologian and the President of Calvin Theological Seminary. In his book, “Not the Way it’s Supposed to Be: A Breviary of Sin,” he describes the Old Testament concept of shalom: “The prophets…dreamed of a new age in which human crookedness would be straightened out, rough places made plain. The foolish would be made wise, and wise, humble. The dreamed of a time when the deserts would flower, the mountains would run with wine, weeping would cease, and people could go to sleep without weapons on their laps. People would work in peace and work to fruitful effect. …The webbing together of God, humans, and all creation in justice, fulfillment, and delight is what the Hebrew prophets call shalom. We call it peace, but it means far more than mere peace of mind or a cease-fire between enemies. In the Bible, shalom means universal flourishing, wholeness and delight – a rich state of affairs in which natural needs are satisfied and natural gifts fruitfully employed; a state of affairs that inspires joyful wonder as its Creator and Savior opens doors and welcomes the creatures in whom he delights. Shalom, in other words, is the way things ought… Read more
Introducing Sebastián Seromik

We welcome another guest blogger with the same questions on faith & prosperity: Sebastián Seromik is currently a graduate theology student at Boston College. Sebastián served in the Peace Corps in Benin, West Africa as a small enterprise development volunteer. While there, he worked to construct a children’s home in Ouèssè, Benin intended to care for orphans, vulnerable children, victims of abuse and victims of child trafficking. The center, CAEES (Centre d’Accueil et d’Ecoute des Enfants en Situation difficile), is the only one of its kind in the entire region of the country. Sebastián graduated from the Ross School of Business at the University of Michigan. 1. What does “prosperity” mean to you? To me prosperity implies experiencing a particular joy with our current state in life. It could mean that we have been blessed with material well-being, but it also has to mean much more that that. All dimensions of life – spiritual, material, physical, etc. – are included. Our entire life should tend toward becoming more fully who God made us to be and that does not concern one simple aspect of our existence. 2. How is faith important to your work? Faith is what gives my work… Read more
Peter Bauer, Part IV

“We have sunk to such a depth that the restatement of the obvious has become the first duty of intelligent men.” – George Orwell. This was one of Peter Bauer’s favorite quotes, and he applied it frequently to development economics. This post concludes the series on this influential economist. Two important themes stand out after reading “Peter Bauer and the Economics of Prosperity.” Both are mentioned by Basil Yamey in his chapter in the book. One, “Insofar as Peter claimed to identify the engines of economic advance in poor countries, they were enterprise, trade, the enlargement of markets, and minimal government (to maintain ‘law and order’).” Two, “Peter emphasized the importance for economic advance of the attributes, attitudes and mores of people and groups. He had observed this first hand in his studies of the multiethnic societies of Malaya and West Africa. He has shown that cultural and political factors are generally much more important than the factors singled out by development economists, such as the volume of (monetary) investment, the supply of education, or the presence or absence of natural resources.” The Guardian presented an obituary after Peter Bauer’s death in 2002. You can read that obit here. Now… Read more
Peter Bauer, Part III

“Development planning does not augment resources. It only concentrates power.” There were several reasons why Bauer disliked the theories and actions of government planners and their advocates (like the influential, Swedish, Nobel Prize winner Gunnar Myrdal). Those reasons can be categorized into three types: economic, political, and social. Economically, Bauer observed that central control of an economy created a lot of unwanted goods. Because a state-control strategy for growth attempts to predict demand, and then mandate what is produced, a knowledge of what consumers want, and will want is essential. While this sounds good in theory, in practice its impossible. So, producers end up making a lot of things that no body wants, with no means of discovering true consumer demands. Living standards do not rise because people cannot get what they really want. The only ones who make money are those who oversee the process – the licensors, regulators, and planners. Politically, central planning serves to “politicize” all of life, according to Bauer. In a planned economy, the group that “has the government” (holding the most senior positions of office) always has the power. Any kind of productive energies, then, go toward gaining political office; and, the public sector… Read more
Peter Bauer, Part II

“The suggestion that foreign aid should be granted specifically to underwrite Indian economic planning should be rejected – not so much because of the cash cost to the United States and the West, but because of the cost to India.” So wrote Peter Bauer, Development Economist, in 1965 Bauer lived most of his life as a contrarian. In an economic world dominated by significant government involvement in markets, Bauer advocated freedom. His academic work took him to study the rubber industry in modern-day Malaysia, and local trading practices in West Africa. Direct observation, more than economic theory, drove his conclusions. One prevailing thought of Bauer’s time was that the poor were caught in a “vicious circle of poverty” from which they could not escape without outside help. This view has resurfaced in Jeffrey Sachs‘ “The End of Poverty.” Bauer disagreed with this theory saying, “…it is in obvious conflict with simple reality. Throughout history, innumerable individuals, families, groups, societies, and countries – both in the West and the Third World – have moved from poverty to prosperity without external donations. All developed countries began as underdeveloped. If the notion of the vicious circle were valid, mankind would still be in… Read more
Peter Bauer, Part I

“In recognition of his tireless and pioneering scholarly contributions to the understanding of the role of property and free markets in wealth creation, his demonstration of the negative effects on poor countries of government-to-government transfers, and his inspiring vision of a world of free and prosperous people.” This was the inscription on the citation of the Milton Friedman Prize for Advancing Liberty, established by the Cato Institute in Washington DC. The prize was awarded to Peter Bauer in May of 2002, for is work in development economics, a field which he helped to pioneer. Bauer was a complex individual who had to wait until the end of his career before his ideas began to truly change the mainstream. He was an ardent defender of economic freedom, constantly arguing against the status quo. His primary intellectual battles were fought against a consensus among economists of his time, holding that poor people were continually caught in a poverty trap and needed aid to be set free. Peter Bauer died just a week before traveling from London to Washington DC to claim the first ever, $500,000 Prize. He was 86 years old. Though Bauer was unable to accept his prize, he died knowing… Read more