The “Justice and Peace Commission” of the Croatian Conference of Bishops continues on the path of the inspiration that has guided its operations for the past two decades. Therefore, on the occasion of its 20th anniversary, it is issuing the following statement of protest and hope.

The current profound crisis threatens justice and peace in the world, Europe and our country. Therefore, the Commission urges the critical assessment of the systems and relations to date and proposes how to introduce greater justice and new solidarity during the new period.

1. Justice spurned. The financial crisis that emerged in the United States has engulfed the entire world, produced an economic recession and developed into a social drama. The roots of the crisis are in market fundamentalism, whose adherents have promoted neoliberal ideologies in their countries and imposed them upon the entire world. However, other countries and their policies, which have tolerated the primacy of private interests above common interests, thereby undermining the original meaning of politics as concern for the common good, also bear great responsibility. Everything else is the consequence of this unacceptable wrenching of politics from ethical foundations and establishing it within the logic of economic and financial power. The current crisis is also a dramatic reflection of the profound transformation of political activity in contemporary society. Since political activity is an eminently human activity, the aforementioned transformation has its roots in false anthropological assumptions, among which the reduction of the human being to a producer and consumer stands out, with egoism and profit as the ultimate principles for evaluation and political activity.

The nowadays prevailing financial capitalism has degraded the former industrial capitalism, in which a balance had somewhat been achieved between human labor and capital. This new super-capitalism has stimulated irrational consumption and growing indebtedness. An entire series of complex and shady financial “products” has been developed, with claims for which there is no one to repay them (American mortage loans), all for the purpose of making scandalous extra profits. This casino-capitalism has exposed many bank account holders and investors to losses. Thousands of billions of dollars, euros and kunas are gone with the wind, while millions of people have been left without work, home, pension and savings. When the economic downturn engulfed the entire world (recession), neoliberal bankers and speculators, who only yesterday were muttering against the State and rights, e.g., the State is too expensive or standards hinder business, cried out for help from – the State! A great injustice occurred: due to the risk of the collapse of the entire economy, States have used public funds to help private interests, first the banks and insurance companies, and then the economy. What is not only injustice but also absurdity is that excessive private debt has begun to be “cured” by increasing public debt, thereby imposing a burden not only upon the present generation but also upon future generations. Instead of penalizing the gamblers and the greedy, the States are saving their banks and companies in order to avert a general depression, such as the one from 1929 to 1930.

The current crisis, however is, essentially, neither financial nor economic, but rather a financial-economic eruption of false, and thus unacceptable, anthropological assumptions, upon which the complex neoliberal concept of the State and society are founded. This concept reveals its most recognizable aspect in the United States. Due to powerful influences and this sole remaining super-power, it has spread throughout the entire world, while at the same time revealing the genuine causes and destructive consequences of economic-technical and financial globalisation based upon the dominant principles of egoism, benefits, interests and profits and increasingly evident extortion, fraud, blackmail and theft.

The crisis has not bypassed our homeland, although the sound policies of the Croatian National Bank have somewhat mitigated its effects. Croatia, as a part of the globalised world, has been caught in this dramatic process without having participated in its causes and, like other countries in transition or development, has simply been struck, as if by an unstoppable tsunami, with the consequences of the crisis. The Croatian state and society are, due to unfortunate circumstances from the recent and distant past, and due to improvident economic and social policies based upon the logic of the selling off of the national wealth, foreign indebtedness and uncontrolled spending without funds to cover it, have been brought to the edge of debt-enslavement and ubiquitous social insecurity, with ad hoc cutbacks in social rights. All of this has been a constant influence on the blurring of the value system in the Croatian society, which should be based upon comprehensive respect for human dignity, upon which dignity the inalienable human rights should be based. Simply speaking, public ethics has been swallowed by politics, state politics by the global economy, the economy by global finance, finance by greed, greed by egoism, and egoism is now vomiting its sick insides – the crisis.

2. Endangered peace. The crisis and recession are today threatening peace among people and nations, most severely afflicting the impoverished middle and lower classes of the developed countries, as well as those in transition. Last summer, the speculative capital led to a rise in food prices and a wave of violence in the impoverished countries of Asia and Africa. The neoliberal imperialism brought two wars in order to gain control over foreign energy sources, while oriental despotism is blackmailing Europe by gas for the second winter in a row. The disappearance of multilaterality and balance in international relations threatens collective security while promoting enmity and national egoism. Such more and more “permitted” egoism belongs also part the extortionist policy of Croatia’s neighbor toward Croatia.

The “Justice and Peace Commission” does not accept the concept of the clash of civilisations and religions. However, it is conscious of the spread of the economic-technical and philosophical worldview of the Western model of society, which is based on the absolutisation of the concept of life without God and transcendence, inevitably leading to confrontation on the religious level, since the Arab, African and Asian cultures are unimaginable without the influence of the religious element. Therefore, every encounter by the Western world during the process of globalisation with the rest of the world also represents an encounter between (in)visible but active disparate elements: Western secularism on the one hand and religious fundamentalism on the other. On the practical level, there is no difference between them. Each has the intrinsic destructive power of exclusivity and a combat mentality, albeit with different motifs.

A wave of turmoil and uncertainty is shaking the world, including our homeland. Nonetheless, many of our choices are contributing to the growing uncertainty and danger. Thus, it was extremely irresponsible to sell off banks for nothing – after having restored them to financial health with public funds for the benefit of foreign buyers – as well as telecommunications and also partially energetics, so that now foreign owners are making the decisions about these vital sectors. In today’s recession, they are primarily taking care of themselves and, therefore, withdrawing capital from their branches in Croatia. In contrast, when European States help their banks, they do not allow this assistance to go to foreign countries, although their branches have operations there.

The peace among people is no longer only threatened by brute force but also by violence among the young, in schools and stadiums, which remains without public penalties, all of this leading to practical lawlessness. Social solidarity is also being weakened by leaving public services to private enterprises, which is a matter of considerable concern in healthcare because this weakens equity and social cohesion, as well as in education, because it does not allow children to be equal as they enter life. Private forces are also manifested through the withholding of deserved wages, the failure to pay for overtime work and social contributions, as well as arbitrary firings using the recession as an excuse. However, in addition to unpunished violence, the Croatian society also manifests two other symptoms of neoliberal dependency: the short-term consumer mentality and the extremely irresponsible attitude toward endebtedness. The first dependency is a sign of our time (signum temporis), which no longer recognizes the past and anxiously averts its eyes from the future because it lives in the present moment and maintains that all needs, desires and passions should be satisfied without delay. Therefore, the disposability of much and the short-term of nearly everything are accepted. A recent survey has shown that 60% of our fellow citizens make purchases to satisfy a certain “lifestyle,” and only 40% to meet actual needs. Another dependency has already developed into slavery, i.e. living on credit, living in debt, as facilitated by credit cards, leasing and loans, most often with a foreign currency clause and/or variable interest clause. The amounts owed by our fellow citizens to banks have climbed to a fantastic 17 billion euros, which is 42% of the annual value of all products and services. Our companies and banks owe nearly 29 billion euros to foreigners, which is more than the majority of countries in transition. The average amount of debt per working person in our country is 74,000 kunas, which is the equivalent of 16 average monthly wages. While loans are increasing at an annual rate of 22%, the average net annual wage (55,000 kunas) has increased by less than 2%. Moreover, our fellow citizens use 8.5 million credit cards, while few know that the interest for late payment is up to 15%. This debt-slavery is growing into a genuine drama for individuals, families and companies, at a time when banks are raising interest rates and new borrowing is nearly impossible.

3. New justice. It was expected that the States would react more quickly after the financial cataclysms and put the financial market in order, since the system that originated at the end of World War II has long been unsatisfactory. In its institutions such as the International Monetary Fund and the World Bank, large countries such as China, India, Japan and Brazil, as well as the developing countries, are not adequately represented. On the other hand; for the past three decades, these institutions have not been in control of the deregulated financial market, which is being plundered by hunters for the greatest profits, exposing investors, account holders and entire countries to unreasonable risks.

In November of last year, the group of the 20 economically strongest countries in the world (G20) pointed out the weaknesses of this system. In early April, the G20 adopted a series of decisions and regulations for banks, hedge funds and credit-rating agencies. However, the G20 did not rise up against the tax and banking “heavens,” those tax evasion harbours of tax evasion that “launder” money of criminal origin and hide capital pulled out of poor countries by their corrupt “elite”. Due to the existence of these “heavens”, States and State budgets are losing billions in taxes, which contributes to the hell of poverty and disenfranchisement dominate in the poorest parts of the world. Moreover, the G20 did not call the system of unreasonable indebtedness or unjust international trade into question, but only insisted upon the rejection of protectionism and trade barriers.

The world is now confronted with a choice: either to continue racing the mad helter-skelter and banging our heads against a wall, or to make sure that the weakest do not suffer under the conditions of market competition and that jobs do not migrate according to the logic of the highest profits. In short, instead of greed and waste it is necessary to enact new regulations, for example, the right to health necessities and food sovereignty, the obligation of moderation in debt and in the consumption of fossil fuels, customs duties on products that do not protect the environment or social rights, a world tax on speculative transactions etc. For all of this, it is necessary to return the State and politics to their position of priority and the role of an arbiter in a democratic world.

In order for Europe to participate in the building of a post-liberal world, it is necessary for it to be politically profiled and acquire more effective institutions, which will be possible when the EU Lisbon Treaty is adopted. The world can only fight against global risks and climate changes together. Europe has something to propose to that world: not only the humanistic values of Christian provenance but also the principles of subsidiarity, proportionality, solidarity and a social market economy. Europe can also propose the “method of community” it has tried as a method for the management of that which can be decided about more efficiently at the world level than at the level of continents or States, based upon the principle of subsidiarity, i.e. universal goods such as the sea, water, air, energy sources, biodiversity and the nonrenewable goods of humankind in general.

The “Justice and Peace Commission” expects Croatian politicians to participate in the building of tomorrow’s world, primarily within the framework of European integrations where just now energy, maritime and immigration policies are being shaped, as well as in Croatia, where it is necessary to introduce new standards in order for finance to serve the economy, and in order for the economy to serve the person and his work. If reforms are not made quickly, which can only occur during a state of crisis, the opinion will prevail that the current “crisogenic” system can be preserved with cosmetic changes and continue – business as usual. The Commission urges Croatian politicians on the national and local levels not to neglect their constitutional obligation to build a welfare State. It notes that Christians are social precisely because they are Christians and urges the public authorities to follow the example of countries that are currently helping their vulnerable economic sectors (e.g., the car industry). Thus, the Croatian government should especially assist the young who have gone into debt to finance their educations, purchase apartments and open enterprises, e.g., through subsidized loans or a credit moratorium; assist farmers and fishermen, who have gone into debt to purchase land, livestock, processing facilities, ships and nets; help domestic shippers through contracts in order for them to preserve their knowledge and employments of shipbuilders, and promote the specialisation of Croatian shipyards for new types of vessels.

The Commission is of the opinion that it is necessary to postpone those projects that are not of importance in overcoming the recession and preserving jobs, and that government funding should be directed to forms of renewable energy and the conservation of forests, water and sea, with the goal of a return to lasting values – frugality, savings and long-term planning. The members of the Commission are aware that under the circumstances of twin deficits, i.e. budget and current accounts, it is difficult to achieve these goals although they must not be abandoned. The members of the Commission expect solidarity from everyone as well as a new tax policy that will tax work less heavily and capital more heavily, especially speculative capital, as well as games of chance.

4. A different peace. The faltering of neoliberal globalism should be used for the establishment of new foundations for collective security and world peace. Nations should not be opponents in a brutal race without rules or justice, and a man should not be a wolf in his relations with his neighbor. Goodwill for this also exists in the new U.S. administration and the European Union. Therefore, such a “moment of grace” must not be missed because the world is threatened by many dangers. Hundreds of thousands of climate refugees are already wandering the impoverished expanses of Africa. Wars are being waged for potable water, oil, gas and mineral wealth. Unless peace is an act of justice, it will not be able to exist.

Better conditions for peace must also be built by Europe, especially for those whom it forgot during the decades of totalitarian communism. European solidarity is now undergoing a great historical test. After “Old Europe” helped “Young Europe” to stand on its feet and invested in its enterprises, especially banks, now, during more difficult times, its sense of solidarity is again being tested. The EU should contribute to peace and new relations with its neighbors, particularly southeastern Europe, the Ukraine, Russia and the Mediterranean, as well as impoverished Africa, to whom “Old” Europe owes much.

Croatia must also aspire to a different peace with its neighbors, a peace based upon respect for international law, truth and justice, in overcoming the wounds of the recent past. A different peace should also be fostered among Croatian citizens, for which purpose the Commission urges the public authorities and judiciary to oppose the current lawlessness, prosecute organised crime and corruption, depoliticise the police and train supervisory services, introducing the four-eye principle and the rotation of officials, who take discretionary decisions, and to assure the strict separation of public administration from executive authority. The Commission is of the opinion that it is good to make use of the experiences of others but not to follow irresponsible foreign bureaucrats blindly, either from the European Commission, or by copying foreign laws, especially those from the Anglo-Saxon world which are ideologically and legally alien to Croats, as continental Europeans. Among foreign experiences, it is necessary to select what is wise and close to the best Croatian tradition and its belonging to Europe in terms of values, history and culture.

Zagreb, June 3, 2009

Msgr. Vlado Košić, Ph.D.
President of the Justice and Peace Commission of the CCB