Economy of Francesco: a new vision for the economy

*Article originally published in portuguese in Broteria magazine 196-1 (2023): 22-32

When we say "economy," we can refer to economic science or the economic reality itself [1]. Economic reality is complex and can be analyzed from various perspectives, assigning distinct importance to multiple variables. The perspective we use and the factors we consider affect our analysis of the evolution of economic reality and the measures to be taken for its development.

Traditionally, the main concern of economic science is economic growth, this is, the increase in Gross Domestic Product (GDP) or, from a micro perspective, the maximization of profit or income for economic agents. Currently, other concerns have entered the agenda of economists and managers, highlighting the importance of considering the sustainability of an organization through social and environmental dimensions, beyond the economic one. Moreover, in recent decades, the discussion has expanded regarding what constitutes value creation and who it is intended for, especially concerning the inclusion of stakeholders beyond shareholders, giving rise to movements like impact economics, which extend the creation of value to society. However, a unidimensional perspective often prevails, focused on economic growth or profit increase, perhaps deeply rooted in economic science and management models or due to market pressure for good financial results. In fact, classical economists like Adam Smith already emphasized this aspect—consider the title of his famous work: "An Inquiry into the Nature and Causes of the Wealth of Nations"—and Neoclassical Economics, the dominant school of thought in the last century, maintained this priority, although it avoided the debate on the relevance of such an end.

One of the main definitions of economic science was presented by Robbins in the 1930s, stating that it studies the choice of using limited resources to achieve various ends. At the time, Economics was being mathematized, seeking to legitimize itself as a positive science, so Robbins excluded from its scope the discussion of the relevance and justice of the ends to be achieved. This debate would fall within the realms of ethics or politics; Economics should only deal with the (rational) decision-making process of economic agents in a context of scarcity, assuming the ends as given. Regardless of the ends, economic science should help agents choose the option that allows them to achieve more ends and minimize the use of scarce resources.

Note that this conception of economic science is broad enough to consider diverse objectives such as maximizing a company's profit or minimizing the employment impact of a particular technological innovation. However, Neoclassical Economics adopted the maximization of utility as its end, translating into the maximization of wealth or consumption (whether of an individual, a company, or a country), relegating to the background the economic debate about the pursuit of other legitimate ends. Thus, the increase in profit or GDP—depending on the scope of the analysis—and rational choice towards this end became the main focus of economic science, shaping the behavior of agents and major policy concerns.

In fact, as the object of study is also a subject, its behaviors and values can be altered by what science predicts. This is an important characteristic of social sciences, not present in natural sciences: the functioning of tectonic plates does not change based on more or less accurate theories that may be developed; the same does not happen with human behavior, which can be influenced by scientific research on that behavior, especially when it leads to recommendations for public policies, for example.

In summary, Economics has been reduced to a very limited perspective of human action, at least in its dominant branch, influencing the behavior and values of individuals, as well as political priorities, without engaging in a serious debate about the ends to be achieved. Economics has come to mean the creation of wealth, rather than household management, as suggested by the etymological meaning of the word, and thus, economics has lost its soul and horizon.

The Pope's Challenge: Restoring Soul to the Economy

In 2019, Pope Francis wrote a letter inviting young economists, entrepreneurs, and change-makers from around the world to a meeting in Assisi with the ambitious goal of "giving soul to the economy of tomorrow." This economy, according to the Pope, should be one that "makes live and does not kill, includes and does not exclude, humanizes and does not dehumanize, takes care of creation and does not devastate"[2]. This would be The Economy of Francesco.

It is noteworthy that the name of this movement in English is "The Economy of Francesco" and not "The Economics of Francesco," indicating that it goes beyond the scientific analysis of economics. Instead, it aims to act on economic reality, involving a reflection on economic science and management practices, as well as the creation of concrete projects that promote good experiences or initiate new ventures inspired by The Economy of Francesco.

In the words of the pact signed by the Pope and the young participants at the in-person event that finally took place in September 2022, what is sought is an "economy of the Gospel. Therefore: an economy of peace and not of war, (...) in the service of the human person, the family, and life, (...) which recognizes and protects dignified work..."[3]. The Economy of Francesco therefore broadens the goals we have in mind - going beyond profit and GDP - and aims to restore soul, vision and horizon to the economy, without fearing the teleological debate.

The chosen location for the meeting - Assisi, Italy - helps to understand what the Economy of Francesco intends to be. Assisi is an inspiration because "for centuries it has been the symbol and message of a humanism of fraternity"[4]. This is where Saint Francis of Assisi lived, the figure of reference suggested by Pope Francis. The man, then a saint, who lived around 800 years ago, is the founder of the Franciscan Order and the patron of ecology. He is the reason why the Pope chose his pontifical name and it was he who, in Assisi, in an encounter with Christ that would transform his life, made a radical choice for the poor and for the care of Creation.

In order to understand and read this new vision for the economy, it is necessary to start from the spirit of Assisi and St Francis. This economy is inspired by someone who, listening to the Spirit, initiated an internal process, triggered an external process, and inspired many other processes, such as that of Saint Clare of Assisi. The choice of Assisi and Saint Francis as inspiring figures for this new economy is both symbolic and informative. Francis's encounter with God, expressed in the words "Francis, go and rebuild my Church in ruins," led not only to a vocational journey but also to a countercurrent movement, emphasizing dialogue, attention to the vulnerable, and care for creation during a time of crusades and divisions. Francis was a bridge builder and a singer of the beauty of creation, reminding us of the interconnectedness of all things and how humans are part of the Nature that sustains them, and destroying it goes against God's desire.

Eight hundred years later, Saint Francis continues to inspire and challenge the Church. In Assisi in 1986, the then Pope John Paul II organized one of the most important inter-religious dialogue meetings and instituted the Day of Inter-Religious Prayer for Peace (October 27, 1986). In fact, the call of Saint Francis still resonates for the Church of this millennium and finds a place in the construction of a new economy. After all, our common home too shows so many cracks and ruins.

It is from this spirit that The Economy of Francesco is launched. Beyond the goal of a meeting in Assisi, changed to an online format in 2020 and 2021 due to the COVID-19 pandemic and only made possible in person in 2022, a community was formed, consisting of voices, faces, and real experiences. Responding to the Pope's challenge, over 3,000 young people from 120 countries around the world participated. In the first online meeting in November 2020, about 2,000 young people participated. In the months between the events, in addition to various webinars, a dynamic was created around the 12 Villages, corresponding to the main lines of work of The Economy of Francesco, whose names denote the intention to bring into dialogue topics that are usually viewed separately, such as Work and Care, Vocation and Profit, or Finance and Humanity.

Leadership was given to young people who, supported and accompanied by experts from the academic, activist, and business worlds—referred to as seniors—are challenged to "see, judge, and act."[6] This methodology and type of leadership are identitary to the path that has been taken, somewhat prophetic when considering the challenge of intergenerational collaboration and the rightful place for each generation to contribute, as well as the incomplete way we sometimes view reality. Moreover, the space that has been created allows younger generations to ask questions and share ideas, while older generations can share experiences and mentor. This has been exciting and has generated synergies, giving voice in a way that values the role of each individual, empowers, and holds them accountable.

A process, more than a model

When someone encounters the Economy of Francesco for the first time, it is customary to ask about its economic model or its proposals for the challenges we face today. However, it cannot be said that the Economy of Francesco has a specific model, ready-made answers, or even a particular ideological line. This may sound disappointing to those who approach with a desire to find ready solutions to implement for current problems. Indeed, due to its characteristics, this movement does not have a single model to propose or final answers waiting to be implemented. More than being a new model for organizing the economic system or a new economic theory, the Economy of Francesco is a process with a vision that seeks ways to make it a reality. There are no pre-established answers from the scientific and organizing committee or from Pope Francis; the answers and the way to implement this "Gospel economy" must be sought by the community members, in dialogue with reality and the world. Thus, the main goal is to disseminate, promote, and inspire current models, models under construction, and new initiatives that can translate the vision of an inclusive, sustainable, and human economy. The aim is to bring together talented individuals with a desire to transform the world in the search for solutions, so that this quest is not solitary but carried out collectively. Such solutions can arise from a more theoretical perspective, from academia, or from a more practical line, from entrepreneurial experiences. The process initiated by the Economy of Francesco is marked by the search for an integral analysis of reality, taking into account economic, ecological, social, and spiritual dimensions, the discovery of new questions, and the collaborative construction of new paths.

The proposal is for a new vision of the economy, more comprehensive, which requires the search for new models and research methods or new business practices, although it does not need to exclude existing methodologies. In fact, it needs them. It points to a vast horizon, which we can reach through various paths and for which we need diverse contributions, even from different scientific fields, requiring an open-minded attitude that "saves the proposition of the other"[7] and is open to dialogue. Thus, all models and perspectives can be part of this new economy, as long as they promote the vision contained in the Assisi pact. This vision speaks of an economy that:

• extends beyond the financial dimension, including other dimensions such as environmental, social, relational, and spiritual;
• reinforces the need for a culture of care instead of a culture of discard, indifference, and rejection;
• places the most vulnerable at the center, giving them a voice and creating opportunities for them to lead development solutions;
• promotes dignified work for all, especially caring for the family, and recognizing the contribution of each individual;
• protects living species and the natural resources of the Earth.

The openness to various paths and answers, as well as the creative innovation that the Economy of Francesco can bring, does not mean that this movement is devoid of ideas or guiding principles. No one is controlling the process or seeking to impose a particular line of thought — that could be limiting — but there are experienced seniors, with a long history in the fields of Economics, Ecology, Philosophy, or Management, who naturally bring their work and ideas to the discussion. Looking at who the seniors involved are and their work can help find directions leading to the realization of this new economy.

One of the main mentors of the Economy of Francesco, from whom the idea for this movement emerged in his meetings with the Pope, is Luigino Bruni, an Italian economist belonging to the Focolare Movement and the Economy of Communion, also involved in the School of Civil Economy [8]. Bruni is an original author, critical of the anthropological simplification of the "economic man" model and a scholar of reciprocity, relational goods, and common goods. He also has significant contributions to the theorization of the Economy of Communion, a movement that originated within the Focolare and in which participating companies commit to a more sustainable and inclusive management model, distributing their profits for three purposes: supporting vulnerable people, spreading the culture of the Economy of Communion, and developing and reinvesting in the company to keep it competitive and efficient [9].

Kate Raworth, the creator of the Doughnut Economics model, has also been associated with the Economy of Francesco. Raworth is a professor and researcher at the University of Oxford and co-founder of the Doughnut Economics Action Lab, which seeks to put Raworth's developed model into practice. In simple terms, this model is graphically represented by the figure of a doughnut, with balance achieved if society is in the middle and the use of resources does not exceed the limits of the cake. For this, it must meet a series of environmental and social parameters. In this model, it is not the growth of GDP that determines the health of the economy, but rather the level of satisfaction with various variables related to people's quality of life, such as access to energy or air pollution [10].

It is not possible to present here all seniors associated with the Economy of Francesco, but other actors can be mentioned, such as Father Ga?l Giraud, a Jesuit and economist, current director of the Environmental Justice Program at Georgetown University, Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University, with a career at the UN and a member of the Pontifical Academy of Social Sciences, or Vandana Shiva, an environmental activist for small farmers and creator of the international Navdanya movement. In addition, documents such as the United Nations Sustainable Development Goals (SDGs), the Laudato Si Goals, the Social Doctrine of the Church, or the work of the Dicastery for Promoting Integral Human Development have also been considered.

Many other names could be mentioned, but these already provide an idea of the variety of paths and lines of thought that can fit into the Economy of Francesco. What is common to all of them is the desire to contribute to a new economy that generates life and the openness to discussion and joint work. From this diversity, new economic theories, new business projects, or spaces for disseminating and sharing best practices can emerge. There is no recipe or predefined way to reach the goal aimed for. Therefore, the Economy of Francesco, as a process under construction, perhaps has more questions than answers, but it is not bothered by that and trusts the paths that can be made with the diversity of cultural experiences and branches of knowledge.

Perspectives and Limits

In the past 3 years, the response to the Pope's letter, with all the dynamics that followed and sprouted from it, has generated a movement: an ecosystem of people and relationships, surprisingly woven for a long time in a digital context, where ideas, experiences, and paths are shared. It can even be said that it is an ecosystem of vocations, to the extent that the Economy of Francesco brings together people who were already seeking ways to promote a fairer economy and find here a place for sharing and personal transformation. It is noteworthy that, in some contexts like the Portuguese, this was the first opportunity for many to think and debate socio-economic issues from their faith point of view. It is therefore fair to say that this movement has been a catalyst for the ecological conversion proposed by Pope Francis in the Encyclical Laudato Si.

Moreover, the movement that was born to initiate processes and "not occupy spaces"[11], beyond the inner paths of its community, has generated concrete initiatives, from experiences to new projects. Examples include the EoF School, a training initiative on topics related to the Economy of Francesco, such as the custody of common goods or an economy inspired by the cooperation of the plant world, or the Farm of Francesco, a network of farmers with the purpose of developing regenerative and community agriculture, which has a pilot farm in Nigeria. In addition to the international dynamic, groups called EoF Hubs have emerged in different countries, including Portugal. In these Hubs, the aim is to create a community at the national level and translate themes, reflections, and proposals into local reality.

However, the Economy of Francesco also has weaknesses and risks, like any reality. Its global dimension brings together very different cultural and socio-economic realities, enriching the discussion and broadening its scope, but sometimes this adds complexity to collaborative efforts. On the other hand, the absence of a proposal for a specific economic, political, or even religious ideology may lead to well-organized groups instrumentalizing the process for their particular interests.

There has been a clear intention for this movement not to institutionalize too much and for the structure to be created only as necessary for the Spirit to be the guide. This makes the protagonists responsible and challenges the tendency, both inside and outside the Church, to institutionalize and hierarchize, but there is a risk of not having the necessary structure to allow the development of ideas and the implementation of proposals.

The fact that the Pope and the scientific committee of the Economy of Francesco are clear that the leadership is with the young people, allowing the process to be organic and participatory, may lead to resistance from contexts where this is not the practice, rejecting understanding perspectives due to a style prejudice. Just as impatience for answers can lead to discouragement and demobilization. It is important, therefore, to remember that everyone's place is as a protagonist: not someone who has all the answers but seeks to look at their reality, listen, and have a voice. This is not a consumer movement but a co-creation movement and, therefore, requires proactivity and commitment, something that is a challenge for any project.

Just as in the Encyclicals Laudato Si and Fratelli Tutti, where Pope Francis addresses believers and non-believers alike because the themes are transversal to human existence, the Economy of Francesco also aims to include different religious contexts and the secular world. This bridge is being built very differently in different national contexts, but there is a risk that it remains mainly confined to the believing world, especially the Catholic one. The challenge, however, is to go beyond the characteristics, beliefs, and thoughts of each and, without excluding all these starting points, contribute to a common vision.

Because it is an inclusive process, open to the Spirit, and that gives time and space to think and talk about topics, the Economy of Francesco may encounter resistance in the current context, marked by acceleration, polarization, quick answers, and efficiency. Another risk is staying with ideas and discussions and not translating into concrete actions. However, there have been tangible and intangible results, and some may only be seen in a few years. It is important, therefore, not to be discouraged and involve "the head, the hands, and the heart"[12].

A Prophetic Economy

The in-person meeting in Assisi in September 2022 brought together around 1,000 participants from 120 countries worldwide. Throughout the meeting, the questions asked in the opening, inspired by the text of the prophet Isaiah, echoed: Sentinel, how much longer until the day? How much time must we wait for an economy that is more fraternal, inclusive, and egalitarian?

The Economy of Francesco is an economy that already exists but is not yet complete. In this sense, it is prophetic. It is not utopia because the construction of an economy that takes care of everything and everyone is already taking shape in many places, and the desire for transformation surpasses time and space. But it needs to continue to discover itself. Thus, we are invited to be sentinels, who do not get tired of asking, seeking, and building bridges; with their choices, projects, businesses, communities, they are already building today the economy of the next millennium. Despite its diversity, the Economy of Francesco has brought together a community around a common intention, and that alone has an impact, regardless of the future of this movement.

In its intention to be an integral economy, the Economy of Francesco is more encompassing than the very concept of sustainability. It seeks to get to the root of the issues and symptoms observed in reality, avoiding the layers of veneer often evident in practices of social responsibility and greenwashing.

For many involved in this movement, the encounter with the Economy of Francesco awakened something they already had within them, united them, and gave horizon to the same aspirations and desires. And everyone can participate in it, to the extent that they allow themselves to be challenged by the values contained in the Assisi pact, seeking criteria and choices that, on a personal and community level, contribute to an economy that promotes integral human development and care for our Common Home.

In summary, it can be said that the Economy of Francesco is a vision, a process, a community, and a vocation, on an individual, community, and global scale. As Pope Francis reminded in his final message, "when a young person sees in another young person their own calling, and then this experience is repeated with hundreds, thousands of other young people, then great things become possible, even to hope to change an enormous system, a complex system like the world economy" [13].

Article written by Afonso Espregueira sj and Rita Sacramento Monteiro

Published in Brotéria Magazine 196-1 (2023): 22-32

Footnotes:

[1] In this article, we refer to economic science as Economics (with a capital "E") and economic reality as economics (with a lowercase "e").

[2] Letter from Pope Francis for the Economy of Francesco Event (2019).

[3] Pact for the Economy, signed by the young people of The Economy of Francesco Movement with Pope Francis (2022).

[4] Letter from Pope Francis for the Economy of Francesco Event (2019).

[5] During the sixth Crusade, in June 1219, Francis of Assisi visited the Sultan of Egypt.

[6] Methodology presented by José Cardijn, founder of the Catholic Action.

[7] Spiritual Exercises of Saint Ignatius of Loyola, 22.

[8] https://www.scuoladieconomiacivile.it/

[9] For a brief presentation of the Economy of Communion, see https://focolares.pt/economia-de-comunhao-edc/

[10] To learn more about Doughnut Economics, visit https://doughnuteconomics.org/

[11] Luigino Bruni, EOF - Um Capital de Futuro (2022), available at URL https://www.luiginobruni.it/br/ec-bv/eof-um-capital-de-futuro.html

[12] Pope Francis's speech on the occasion of The Economy of Francesco event (2022).

[13] Pact for the Economy, signed by the young people of The Economy of Francesco Movement with Pope Francis (2022).