Development aid can benefit poor countries by enabling citizen solidarity

From Pope Benedict XVI’s encyclical Caritas in Veritate (2009):

In the search for solutions to the current economic crisis, development aid for poor countries must be considered a valid means of creating wealth for all. What aid programme is there that can hold out such significant growth prospects — even from the point of view of the world economy — as the support of populations that are still in the initial or early phases of economic development? From this perspective, more economically developed nations should do all they can to allocate larger portions of their gross domestic product to development aid, thus respecting the obligations that the international community has undertaken in this regard. One way of doing so is by reviewing their internal social assistance and welfare policies, applying the principle of subsidiarity and creating better integrated welfare systems, with the active participation of private individuals and civil society. In this way, it is actually possible to improve social services and welfare programmes, and at the same time to save resources — by eliminating waste and rejecting fraudulent claims — which could then be allocated to international solidarity. A more devolved and organic system of social solidarity, less bureaucratic but no less coordinated, would make it possible to harness much dormant energy, for the benefit of solidarity between peoples.

One possible approach to development aid would be to apply effectively what is known as fiscal subsidiarity, allowing citizens to decide how to allocate a portion of the taxes they pay to the State. Provided it does not degenerate into the promotion of special interests, this can help to stimulate forms of welfare solidarity from below, with obvious benefits in the area of solidarity for development as well.

Caritas in Veritate 60

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