What is the Report about?

The St Paul’s Report offers commentary and readily accessible links to public information on socio-economic matters. Our aim is to serve responsible conversation about:

• WHAT: Systemic economic and social factors contributing to the current crisis
• SO WHAT: Possible trajectories of the crisis 
• NOW WHAT: Thoughtful human responses, often but not always framed by a Christian ethic.

The Leader Letter accompanying the Report is intended to help point readers to key parts of the Report and keep them informed as the Report is updated. If you would like to subscribe to the Leader Letter then register here.

A corporate social response to the crisis.  R. Wilson

(Richard Wilson, a Business Transformation Consultant with IBM in Melbourne, Australia, suggests an alternative approach to what business can do in the recovery: Rather than exploit the market vulnerabilities the larger companies should be looking at how the fundamentals of market structures and the shape of the social contract between business and the community can be modified to ensure that a repetition of the crisis does not recur. Ed.)   

The Global Financial Crisis (GFC) has caused a range of reactions in the business, investor and other communities. The scale and potential threat of the crisis, the apparent abdication of responsibility by the managers of the affected banking assets and the markets in which they were traded, the financial risk presented to or by the once trusted banking institutions and the speed and severity of the outfall on ordinary consumers has shocked the general community. 

The average-Joe consumer had been relatively confident of continuing financial stability, especially in the lead up to 2008. Consequently a number of people are re-thinking the nature of the relationship between business institutions, the global economic framework and the place and security of the 'ordinary' investor, salary earner or consumer. At worst, people are claiming the bargain of trust between the community and business has been compromised or that the basis of free-market capitalism has lost its integrity.  Read more...> 

 (The St Paul’s Report has highlighted international commentary on the link between consumption and the Global Financial Crisis. The crisis was not only caused by the greed of bankers but also by economies obsessed with ever-growing consumer choice and individuals with expanding consumer lifestyles, contended the Anglican Archbishop of Canterbury earlier this year. Jonathan Birchall of The Financial Times observed that there is an emerging consensus on the likely profile of the ‘new’ US consumer who will come out the other side of the crisis; noting a Citigroup report that highlights that US consumers are shifting towards conscientious consumption and embracing a thriftiness focused on value and quality rather than quantity. But is this the only shift that can be expected in consumer behaviour?

Timothy Garton Ash of The Guardian  suggests that the crisis calls for a critical examination of the capitalism paradox inherent in our market economies - where the ethics and values as producers (diligence and hard work) are at odds with the ethics as consumers (choice and debt). The Salvation Army  released a thought-provoking discussion paper in New Zealand exploring consumerism and what we feel is rightly ours. It focussed on the inherent dangers of framing entitlement in terms of our desires and inflated expectations.

Similarly, Gordon Preece suggests the Australian consumer take an alternative approach to consumption in this piece he wrote for The Melbourne Anglican, in the context of what Australians should do with their $900 government grant stimulus package. Gordon is the Acting Rector of Yarraville and Ethicist for Christian Super in Australia, Ed.)

Time was when consumption was the name of a disease, and galloping consumption was its more deadly version. Our British forbears were sent to the tropics to recover from it. Today it seems to be seen by some of our economic medicine men as the epitome of economic health. Money Managers’ Kevin Bailey speaks of ‘people borrowing money we don’t have; to buy things we don’t need [football field sized plasma TVs]; to impress people we don’t like [including our spoilt kids!]. The economic stimulus packages are pooh-poohed by oppositions here and in the US. Yet the naysayers have no positive alternative, and very short memories. Republicans forget who was asleep at the wheel when national debt doubled and millions of jobs were lost while CEOs got record rewards and their companies billion-dollar bailouts. Liberals forget who squandered record surpluses on middle-class welfare. There seems to be State socialism for everyone but the poor and jobless. The rewards are record-breaking for the risk takers – perhaps fair enough if they bear the risk – but they’re recklessly risking other peoples’ money, while there’s seems immune.  Read more...>

Vive ~ GFC: an opportunity!? J. Hartley

(This 101 level briefing is edited from a talk given by Jon Hartley in Wellington, New Zealand, in May 2009. The talk assumed little prior knowledge. Ed.)

The Global Financial Crisis (GFC) is a powerful symbol of how complex the world has become. Somehow a new (and dubious) model for mortgages in one part of the world, and their subsequent default, ends up (in part) bringing down major banks in many places of the world. Go figure?! 

At the same time, the crisis fits simple patterns known to anyone running a household. A family pools money sourced from several places, mostly from wages. After tax is withdrawn, most of the money is spent on consumables (food, clothing, health, etc) and rent or mortgage on a home. Often money is borrowed (mostly on credit cards) for both consumables and long term items. Sometimes some money is saved. So money comes in, money goes out, and the balance is either a growing amount of assets and savings, or a growing amount of debt.   Read more...>