A New Model For The Global Economy Economy Of Communion

A new model for the global economy – Economy of communion

Asist Univ Dr Protos Maxim Vlad, Faculty of Theology, University Ovidius Constanta

Abstract

The "Economy of Communion" is an experience of social economy fostered by the

Focolare Movement, an ecumenical and inter-religious organisation that originated within

the Catholic Church in the 1940’s and is present in about 180 countries. The Economy of

Communion is a global project involving over 750 businesses in a network of solidarity.

Businesses operating according to this paradigm seek to respond concretely to social

inequality, through partnership with the marginalized, whilst remaining commercially

viable in the market economy. They thereby seek to present a realistic social model to

the commercial world.

This paper identifies systemic factors which underlie the rapid development and

spread of this third way between capitalism and socialism. The study is part of a wider

review of the systemic underpinnings of such social movements, seeking to understand

why some succeed and impact the structures of society whilst others flower briefly then

stagnate or die.

Keywords: Business ethics; new economy; economy of communion; Focolare;

business dynamics.

The 19th and early 20th century were a melting pot of ideas and experimentation in the

search for more just and equitable economic structures. Many of these, such as the

Fabian Society and the Distributivists, stayed in the realm of ideas, contributing to the

development of political society, some more and some less successfully. Some, such as

the Co-operative Movement, the Quaker businesses and the Friendly Societies

established businesses based around their ideal. Many have been successful at national or

international scales. But in their success they have generally merged with the prevailing

business ethos to the extent that their outward face to the world is indistinguishable from

that of their competitors. Others, if they still exist, remain at a local scale and do not

present a credible witness of a third way between the ideal of Socialism and the

success of Capitalism.

A third way

For more than a century, the term a third way has been used by individuals, movements,

and parties on the right and the left of the ideological spectrum. In the late 19th century,

Pope Leo XIII called for a third way between socialism and capitalism that would put a

more human face on the free market. In the 1930’s, the classical liberal economist,

Wilhelm Roepke, saw the third way as the free society that lay between socialism and

historical liberalism. Half a century later, Meidner (1980) suggested that Sweden’s

welfare state constituted this third way between American capitalism and Soviet

communism.

In the early 1990’s, the a third way became a popular mantra for politicians,

especially those on the left, who saw that their ideologies held reduced appeal in the

world that followed the collapse of the Soviet Union.

Thus, British Prime Minister Tony Blair has frequently referred to his search for a Third

Way, even writing a booklet on the subject (Blair, 1998). Former US President Clinton

went so far as to declare in his 1998 State of the Union address: "My fellow Americans,

we have found a Third Way”. Schroeder in Germany, Prodi in Italy and Government

leaders from the Russian Federation to Brazil have proclaimed as their own this new

vision of the last decade of the 20th century.

Business leaders also captured this mood for change. Religious leaders, also, had not forgotten their century old search for a Third Way. In 1994, the 6th World Assembly of the World Conference on Religion and Peace included in its final report a call to the religions of the world to work together to find a new approach to economy, between the Marxist and capitalistic economies, “an economy of communion based on mutual love and respect for the dignity of the human person … ”

In the midst of this mess of history, platitudes and polemics, the praxis of the

Focolare Movement provides a striking contrast with its ‘Economy of Communion’.

This is not an economic theory in search of supporters, but rather practitioners living an

ideal and creating an economic theory. It is part of a global praxis a living ‘Third Way’.

Economy of Communion

The genesis of the Economy of Communion ‘In Freedom’ lies with the foundress of the

ecumenical and inter-religious based organisation, the Focolare Movement.

The Focolare is an entity within the Catholic Church, formally approved in 1962

by Pope John XXIII. It's ‘internal’ membership comprises some 150,000 – 200,00 people

who have extensive formation in and made a deep commitment to its spirituality. These

include some 50,000 who belong to other Christian denominations and to other Faiths. A

further 4 to 5 million live its spirituality with varying degrees of commitment. It is

present in over 180 countries. The Focolare would appear to be unique within any

Christian Church in that its statutes provide for adherents not only from within the

Catholic Church, but also from other Christian Churches, from other Religions and even

from ‘people of good will with no religious belief’. It has, for example, a committed

following within the Muslim American Society and Japanese Buddhist Rissho-Kosai-Kai.

The spirituality of the Focolare fosters a profound belief in the unity of the human

family, regardless of differences of race, nationality or religious belief. It emphasises the

ethic that its adherents should live a ‘communion of goods’, as a free and personal

choice, in the manner ascribed to first century Christians (Acts 2:44-45), so that none in

their community are in need.

The Focolare accepts the right to private property. At the same time it recognises

that, just as it would be outrageous for the parents of a family to eat fully whilst their

children starve, it is equally outrageous in our social family that there should be some

with plenty whilst others starve. Accordingly, since its origins in war ravaged Italy in

1943, the Focolare has sought to inculcate a ‘culture of giving’ amongst all its members

from the children to the eldest. The committed core, about 5,000 people, live this totally

– a kind of ‘Christian communism’ – putting all wealth in common, keeping only what is

essential for healthy living and giving the rest for communal distribution. Other internal

members, with greater or lesser radicalism live this ‘communion of goods’ by giving of

their surplus to those in need. (Pochet, 1985; Gallagher, 1997)

Genesis of the Economy of Communion

When the foundress and president of the Focolare, Chiara Lubich, visited Brazil in 1991,

she faced the reality that the 200,000 Focolare members there included so many poor that

the traditional communion of goods, notwithstanding the heroic idealism of members,

was insufficient. Some remained homeless, others were unable to send their children to

school, or buy them clothes. The sick could not afford medical treatment.

“This led to the idea of increasing the amount of money put into communion

by setting up business enterprises that would be entrusted to competent

people capable of making them work efficiently and profitably.”

As a practical response to the evident poverty, Lubich launched a worldwide initiative

focussing on building an Economy of Communion – a program aimed at establishing

employment projects, based on the spirituality of the Focolare in particular, and on

Catholic social justice principles in general. In enterprises operating under this

framework, the profits (after just remuneration) would be distributed three ways:

“A part of these profits would serve to bring ahead the business; a part to

help those in need, thus making it possible for them to live with a little more

dignity until they could find a job, or offering them a job in these very

businesses. Finally, a part of the profits would be used to develop structures

for the formation of men and women who desire to base their lives on the

“culture of giving,” “new men and women”, because without new people, it

is not possible to build a new society.”

This may sound utopian. However, within ten years the results are expressed in bricks

and mortar in the Araceli, Brazil, where Lubich first issued her challenge. A 50-hectare

industrial estate has been developed with the infrastructure required by modern

manufacturing or service industries. It is managed by a joint stock company, ESPRI,

which has more than 3,000 shareholders), many of whom are numbered among the poor.

By 1999, the industrial estate housed eight businesses run according to the philosophy of

the economy of communion, with a number of other ventures in the planning phase.

Guiding Principles of the Economy of Communion

The economy of communion is based on entrepreneurs freely acting according to the

Focolare Movement’s communitarian principles. Entrepreneurs who want to participate

remain owners of their firms and keep the right to opt out of this ‘new economy’. They

freely put in common a share of their profit that, in conformity with the Focolare

Movement's spirit, is then used for the following three objectives.

One part of the profit is used for capital reinvestment. This serves to help this

social ideal penetrate the firm's activities and internal functioning. In addition, it aids job

creation, which the Economy of Communion sees as a fundamental solution to social

inequality.

The second part of the profit sharing is distributed to people who do not have the

means to meet their minimum needs (food, clothing, housing etc.) and who have no

possibility to raise the necessary funds. Everything that such a person receives is an

untied gift and corresponds to his or her true needs that are freely put in common by this

person. The aid aims to re-establish the material autonomy of the person in need. This

focus is not one of charity, but of mutuality based on the ethic that one does not have a

right to wealth whilst others starve.

This communication between the poor, who receive the one-third of the

Economy of Communion business, and the businesses themselves, must

grow. The poor must not become something abstract … the poor are an

integral part of every Economy of Communion business because they are the

main beneficiaries. (We must seek to) create amongst these people and

ourselves an attitude of reciprocity, of true partnership.

The third part of the profit focuses on the long-term improvement of society, on the

elimination of the institutional roots of social injustice. The funds are mainly used for the

development of training centres and educational programs that introduce a wider

audience to this social ideal and give them the personal and technical skills to transform

their own lives in this way. They also assist in maintaining support relationships for

Economy of Communion businesses around the world.

The Economy of Communion, however, is not simply about the use of profits. It

demands a radical transformation in all business relationships, between the owners of

capital and employees, between managers and staff and between staff and clients

Each enterprise operating within the Economy of Communion does so freely,

independent of any control by the Focolare Movement. However, the spirituality of the

Focolare underpins its fundamental ideology. The Focolare structures promote the ideal,

provide the spiritual and ethical formation that underpins it, and provide encouragement

and moral support for the entrepreneurs and foster solidarity among the businesses.

A feature of the Focolare Movement itself is the decentralisation of responsibility

and initiative within its powerful unifying spirituality. It is organised into some 70

‘zones’ covering over 180 nations. In a matrix type framework, there are also 20+

branches, organised at international and zonal levels, which focus on different social or

religious spheres.

The New Humanity Movement is a branch whose charter is to foster the Focolare

ethic especially within the various economic sectors (education, health, the arts, etc). It is

organised on an international level, with a full-time secretariat, and with local secretariats

in every zone. It runs conferences and education programs and provides ‘moral support’

for entrepreneurs (or aspiring entrepreneurs) who are involved in the Economy of Communion. It has also established a number of specialist bureaux, including the

International Bureau on Economy and Work. The latter is an accredited United Nations

NGO that acts as a coordinating think-tank for the Economy of Communion. It includes

experts from the areas of economics and management, including university academics,

senior government bureaucrats and senior private sector executive.

Developing a theoretical framework

The Economy of Communion is built from the lived experience of the Focolare.

However, a vibrant intellectual ferment has accompanied the growth in businesses, with

some 65 graduate, Masters and PhD theses (including at least two from the UK) written

since 1993 on diverse dimensions of the Economy of Communion, covering its

anthropology, sociology, economics, philosophy, psychology and theology. Many of

these theses and dissertations are published on the Internet (http://tesi.ecodicom/.com).

There are also annual international conferences, under the auspices of the

International Bureau on Economy and Work. The most recent conference, held in June 2001 in Genoa in anticipation of the G-8 Summit, presented the Economy of Communion to 1,000 delegates.

Systemic Factors Associated with Development and Spread of the Economy of Communion

Drawing on the factors suggested by Dawkins, Heylighen and Pluta, the following are

seen to be the key systemic factors that underlie the successful and rapid spread of the

idea of the Economy of Communion. These factors are divided between the Focolare

base, which gave birth to and sustains the Economy of Communion, and the Economy of

Communion businesses themselves. Space does not permit a comparative analysis of

these factors with the models proposed in the works cited above.

The Focolare Movement Base

The Focolare Movement provides a critical philosophical and organizational support

framework for the Economy of Communion businesses.

Philosophical / Ideological

A profound belief in the unity of the human family, regardless of differences of race,

nationality or religious belief; and

Preparedness to ‘give ones life for one’s fellow human being’, expressed in a ‘culture

of giving’.

Praxis

55 years of living, at a local scale, a personal ‘communion of goods’;

55 years of activity in local, regional and international, social justice projects; and

55 years experience in experiential based formation and training.

Moral Authority

A charismatic leader, Chiara Lubich, the foundress and president of the Focolare,

who initiated and continues to give priority to the Economy of Communion;

Endorsement within the Catholic Church by Pope John-Paul II and by local Bishops,

by leaders within other Christian Churches and other Religions;

Endorsement by academia in diverse cultures through the award of Honorary

Doctorates to Ms Lubich specifically for her work for the Economy of Communion;

and

Endorsement in the political sphere by parties of the left and the right in the European

Community and in Latin America.

Organisation Structure

A strongly connected (by personal relationships and communication), but highly

decentralised cellular structure, present in virtually every nation;

A strongly coupled matrix of coordinating bodies based around the Branches and the

Zones, animated by a shared spirituality, personal relationships and communication;

The New Humanity Movement, with a full-time international secretariat, and zonal

secretariats, promoting the Economy of Communion; and

The International Bureau on Economy and Labour acting as a specialist ‘think tank’.

Infrastructure

Education / formation framework, at international and national levels with a

pedagogy strongly based on experiential / praxis approach;

Global and national communications networks (for example, every month there is a

global telephone conference call, linking all Zones, which includes an inspirational

meditation followed by, typically, 40 minutes of news of Focolare – including

Economy of Communion – activities around the world);

Publishing houses providing videos, books, journals and newsletters in many

languages;

Comprehensive and professional Websites in diverse languages; and

Centres of formation and training in many nations.

Membership Coverage

A committed core membership of 150,000 – 200,000;

Reasonably regular contact, face-to-face or by the various communications media,

with 4 to 5 million adherents or sympathizers;

through close links with the Muslim American Society and the Japanese Rissho-

Kosai-Kai (Buddhist) Movement, exposure of the Economy of Communion ideal to a

much wider audience estimated in excess of 8 million; and

A strong penetration of the Focolare ethic among young adults, coupled with the

idealism of the Economy of Communion, has tapped an enthusiastic youth response

evident in the profusion of academic research.

The Economy of Communion Companies

The entrepreneurs, employees and beneficiaries of the distribution of profits are linked,

not only through their involvement in the Focolare itself, but also through their own

experiences in giving life to this new social ethic. These experiences are widely shared

through ad hoc conferences, seminars, journals, newsletters and so forth. Significant

systemic factors supporting this, additional to the foregoing, include:

Diversity of totally independent businesses, allowing for experimentation in modes of

management, organisation and activity;

Forums and diverse communications channels for sharing ideas between stakeholders

in the diverse businesses;

Idealism, supported by explicit appropriation of capital to organisation development,

promoting the development of a shared vision of the business amongst entrepreneurs,

management and staff;

Idealism, supported by explicit appropriation of capital for expansion and job

creation, promoting entrepreneurial risk-taking to broaden horizons;

Ethic which promotes quality staff management and quality client service; and

Impetus to develop relationships and to cooperate with other businesses, including

competitors;

Summary and Conclusions

The rapid spread of the praxis of the Economy of Communion prompted this study. Why

do some ideas, such as this, “take off” whilst other, arguably equally valid and important,

languish. Were there particular systemic factors that created the framework for success.

The praxis of the businesses in turn gives witness to the values of the Focolare and challenges its adherents to emulate this altruistic love in their environments..