Towards a sustainable and just financial system
An Evangelical perspective to guide reform steps towards a social and ecological transformation of the financial economy
The possible consequences of an unregulated international financial market have been generally known since the financial crisis of 2008/2009, if not before. However, reflected in the growing economic inequality − not only in Germany but also worldwide − we see deficiencies of responsibility within the financial economy and its supervision by policy-makers and the rule of law. The discussion paper drawn up by the EKD Advisory Commission for Sustainable Development wants to point out these shortcomings, highlights the connections between accountability in the financial economy and the real economy, and argues in favour of more sustainability in the financial system. After all, its central argument is: “Without a functioning, sustainable and just financial system, it is not possible to transform the whole of society towards a sustainability which affects the economic, ecological and political dimension of society.”
Assuming responsibility
The EKD would like to use this discussion paper to carry out “literacy work in relation to the financial economy” and, in keeping with its self-understanding as “admonisher, mediator and driving force for sustainable development”, to contribute to a social and ecological transformation of the financial system. The document gives an easy-to-understand introduction to the complex field of financial economics and sets out the ethical and theological foundations of this topic. It shows up problematic areas resulting from shortfalls in responsibility in the relationship between politics, the financial economy, the legal system and sustainability, and calls on all stakeholders to take their responsibility for transforming the whole of society. The paper calls, inter alia, for stronger regulatory frameworks at the political and legislative level, for property to be used for the public good, for a more emphatic combating of tax avoidance and tax crime, and for an effective financial transaction tax.
Whom does this paper seek to address?
The paper is intended for specialists and decision-makers in the field of financial economics and financial policy.
- specialist readership
- decision-makers in the financial economy
- politicians
- interested members of the general public
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An Evangelical Perspective to Guide Reform Steps towards a Social and Ecological Transformation of the Financial Economy
Financial crises and the growing economic inequality are unmistakable indications, both nationally and globally, of deficiencies in the financial economy and its supervision. And yet the current challenges of globalization cannot be overcome without an economy directed towards ecological and social sustainability. With this discussion paper, the EKD wants to carry out “literacy work in relation to the financial economy” and − as “admonisher, mediator and driving force of sustainable development” – to contribute to transforming the financial system along these lines.
