Davos: How Will This Crisis Change Us?

In a plenary session titled "The Values behind Market Capitalism" this morning, I started with this:

Every morning when I wake up in Davos, I turn on my television to CNN in my hotel room. And every morning, there is the same reporter interviewing a bundled up CEO with the snowy "Magic Mountain" of Davos in the background. The question is always the same, "When will this crisis be over." They actually have a "white board" where they make the CEO mark his answer...2009...2010...2011...later.

But it's the wrong question. Of course it's a question we all want to know the answer to, but there is a much more important one. We should rather be asking, "How will this crisis change us?" How will it change the way we think, act, and decide things; how we live, and how we do business? Yes, this is a structural crisis, and one that clearly calls for new social regulation. But it is also a spiritual crisis, and one that calls for new self-regulation. We seem to have lost some things, and forgotten some things--like our values.

We have trusted in "the invisible hand" to make everything turn out all right, and believed that it wasn't necessary for us to bring virtue to bear on our decisions. But things haven't turned out all right and the invisible hand has let go of some things, like "the common good." The common good hasn't been very common in our economic decision making for some time now. And things have spun out of control. Gandhi's Seven Deadly Social Sins seem quite an accurate diagnostic for some of the causes of this crisis. They are "politics without principle, wealth without work, commerce without morality, pleasure without conscience, education without character, science without humanity, and worship without sacrifice."

If we learn nothing from this crisis, then all the pain and suffering it is causing will be in vain. But if we can learn new habits of the heart, perhaps that suffering can even turn out to be redemptive. If we can regain a moral compass and find new metrics by which to evaluate our success, this crisis could become our opportunity to change.

Yesterday, I attended an extraordinary session here at Davos called "Helping Others in a Post-Crisis World." It was full of the insights of social entrepreneurs, and innovative philanthropists, all discussing new patterns of social enterprise--where capitalism is again in service of big ideas and big solutions; not just making money. But the session was held in a small room; not this big hall. And it wasn't full. New ideas of business with a social purpose have been here at Davos before but, as in the global economy, social conscience is a side bar to business. Social purposes have become "extra-curricular" to business. It's time for the side bar to become mainstream and move to the main hall of discussion and to the center of the way we do business.

If we just wait until the economic crisis is finally over to get back to business as usual again, we will have missed the chance we now have for re-evaluation and re-direction. Some of the smartest people in the world as assembled here on the mountain. But are we smart enough not to miss the opportunity that crisis provides to change our ways and return to some of our oldest and best values. Almost half of the world's population, three billion people, lives on less than two dollars a day--virtually outside of the global economy. Maybe its time to bring them in.

Jim Wallis is the author of The Great Awakening, Editor-in-Chief of Sojourners and blogs at www.godspolitics.com.

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Comments

[winningticket]

Looking for answers in Davos from the people that ran the world's economy into the ground?

[TheAlchemist]

What will we do when we have more time than money?

[magibrotherhood]

All hail the kings and queens of Davos----P.U.K.E.

[gloriousbeing]

Mr. Wallis, have you been saying this for the last 8 years???? I certainly hope so, otherwise, it seems like you are crying about the horse being out of the barn after leaving the barn door open.

[melmoid]

He has been saying this for a long time!!! I have followed his message carefully.

[overd0g1]

Who is "we", comrade?

[LuckyBlessed]

Dear Comrade,
Communism = Privatization Capitalism
Posted in Uncategorized on July 16, 2008 by kittendiatribes

First let me begin by saying that I’ve made Corp. America $millions.

What both Privatization Capitalism and Communism both failed to realize is that there is a role for government to protect society. (Not the kind of protection from gay marriage feared by the Christian right, used a puppets for blood money.) Both communism and privatization/capitalism believe in freedom, whether it be freeing the individual from class distinctions or creating free market conditions (Milton Friedman, market economies are inherently stable if left to themselves, laissez faire. )

What both communism and privatization capitalism assumes humans are altruistic, that they will not lie to each other in “free market” transactions or Marx believing putting humans in such conditions that they would not wish to exploit others.. In a simpler form its kinda like Reagan’s“Tickle Down Economics”.

Also an assumption of privatization is that by examining a government’s performance versus the private sector cost savings will be generated. Per the Smith Group Consulting’s website, “This allows the governmental unit to develop a competitive strategy and return savings to its citizens in the form of better services and/or lower taxes”. If this were truly the case, we would have single payer health care and wouldn’t be spending billions, trillions on war in Iraq.

So bottom line, Bush, Chaney, Rove and McCain are no better than Communists.

[Aaror]

In business school I was taught that it was unethical to allow my personal morals to get in the way of maximizing shareholder profit.
In other words, we are teaching business majors that it is immoral not to use child or slave labor (or both) if it helps the bottom line.
Anyone wonder how we got where we are now?

[Caliwoman]

Corporate charters say they are supposed to address the social good, that's why the right wing ideology tries to get the working people to buy that "personal greed is social good."

[ouroborous]

Mark my words: it will *never* be business as usual again.

Too many things have gone wrong. Too many people now understand how disgustingly dependent upon debt spending the economy is. And too many "masters of the universe" -- you know, the brilliant, wonderful people who will lead us all into an era of economic prosperity? -- have been revealed to be greedy, petty little people (and none too bright, either).

If you're waiting for when things will "get back to normal," you're going to have a long wait. Things will NEVER again be like they used to be.

[magibrotherhood]

While several million Americans are standing in un-employment lines, these nit-wits are out skiing the slopes at their snob-enclave----don`t you just love it.

[Navision]

You have got to be kidding it will "never" be business as usual again..............

Since, the dawn of time Man has continued to repeat the same behavior, over and over. GREED, STEALING, CORRUPTION.

Madoff and Blago are small time players, the real culprits aren't even being looked at.

[macohmz]

Across the economic spectrum there's been an upsurge in suicides. Young and old and in between. According to the "workplace" section on Alternet. In addition, crimes like robbery and bank robbery are rising and being committed by women to pay rent.
You would think the political figures who dreamed up these bogus trade deals that sent jobs out would of known this would happen. And it seemed no one learned from history when Deregulation was put into effect. Now we see what was deregulated away was ethics and any accountability.
I'm afraid its going to get much worse and who knows if it will get better at all. Its going to be bigger than any well meaning group can handle.

[greasygreens]

What business do you propose Mr. Wallis?

Isn't the purpose of business to make money?

Rich nations already have the resources of the poorer nations.

Are we now obliged to acquire their few remaining dollars?

Please elaborate.

[GrainOSand]

What of rich nations getting rich on the backs of poor nations? What of fairness leading to increased profitability. Yes, business is supposed to make money, otherwise what is the point. The heart of the business person has come into question in a most profound way. Even here in a so-called "rich nation" we are asking, can the heart of our system be such that it kills our system? If that is true then we cannot continue as we have. Profitability will continue to be a staple of business, but perhaps we will now witness a rise of ethics, fairness, and the expression of love of community as a business concept. Perhaps this is the death of the “Me Generation”. Perhaps the verdict is just now coming in on greed and haughtiness. What would be transformational is every citizen realizing the light in themselves and applying that where they stand. Last I checked, CEO’s were citizens and nations are comprised of citizens. We have mastered the mechanical act of making money but we continue to flounder on the basic questions of humanity. Now we find that making money and wealth creation is not inorganic after all, it affects real life.


Forgive me for chiming in but I was stimulated by your comment.

[Fabienne]

A long time ago, business was supposed to provide services and commodities to the people, making money on the side so as to ensure that it could continue providing these services and commodities. Now it is spoken of as if it were an entity in itself and people were secondary. It is time to return to the idea that business is there to serve the people and not vice versa.

[LeonBNJ]

The Great Depression continues to affect people today. It led to major regulations and reforms still important and in use. It also caused a generation to learn how to save, live in a thrifty manner, not abuse credit, not waste. This is especially true for those still alive who lived through it (like my 79 year old mom). While we hope the lessons won't be as severe now as was the Great Depression, I do hope everyone learns not too late to be more realistic in our lives, use credit carefully, reduce wasting of money, energy and time, not be so greedy and so on. For our so-called business leaders, hopefully they will back off looking for themselves first with huge salaries and short term gains but rather for more modest incomes and looking at longer term gains.

[Meteor]

Looking For The Answer In The Wrong Place

Davos may not be the best place to look for the answer to the current economic-financial crisis. The answer is already known and lived by people like LeonBNJ's grandmother and prpbably by Leon who have benefitted from the experience of the Great Depression. These people are not experiencing a crisis because their financial decisions have been honest, fair, realistic, practical and probably compassionate.

A crisis comes when one's value as a person is identified with one's financial holdings and hopes. When the holdings and hopes erode or disappear, one's value as a person is critically diminished and even disappears.

Those who are not experiencing crisis are aware that they are themselves, in cooperation with others, able to sufficiently create, maintain and sustain the value of their money and get the most "bang for the buck" out of their money with the daily decisions they make. There are other resources available in our lives such as spiritual insight, philosophical, psychological, and social resources that help keep people safe from being overcome by sudden catastrophic events. These resources are every bit as important and really more important than the bottom line of one's financial holdings.

[GrainOSand]

Mr. Obama used the phrase “all hands on deck” as he marched his way to power with millions of supporters clearing the way for him (through donations, time, meditation, and voice) and cheering him on to victory. His call seemed to be a realization of what has been missing.

The greatest accomplishments represent a spirit. The pyramids represent a mass will to accomplish something bigger than the individual, though some of that will may have been embodied in “slave labor”. http://www.blurtit.com/q491836.html

The Hoover Dam (oddly, more reported slave labor), or the great skyscrapers that dot our American landscape and our world landscape, all of these took a team effort to achieve. The talent pool to be tapped for escaping catastrophe must be more inclusive than that used to deliver mass suffering via the mechanisms of the elevation of some at great risk and cost to many others. If the foundation is strong then the nation is strong. Who we are remains the character and therefore the foundation of America. Mutual respect, concern, and goodwill are not empty words.

Motivation and stimulation leading to transformation of the nation or individual attitude reflects the leadership in relationship to any call by leadership for all hands on deck. A crisis of confidence in the markets can only transpire via the elimination of the crisis of confidence still raging in the human spirit. Reshaping hearts is crucial to reshaping nations.

...But then, what do I know.

[GrainOSand]

I guess not much:

"Elimination of the crisis of confidence in the markets can only transpire via the elimination of the crisis of confidence still raging in the human spirit. Reshaping hearts is crucial to reshaping nations."

[pm247]

I was agreeing with this article but got jolted by the conclusion: "Almost half of the world's population, three billion people, lives on less than two dollars a day--virtually outside of the global economy. Maybe its time to bring them in."

"Bringing them in" sounds like a tack on market expansionism.

There is a consistency in the lives of those outsiders that is worth emulating. "Consistently deprived," you might say, yet their values are not dependent on the boom/bust cycle of capitalism or the greed and fear dichotomy that drives it.

If we could synthesize the dynamic energy of capitalists with the frugality and moral consistency of that other half, humanity would find itself in balance. Two sides to every coin is the way of the universe.

[melmoid]

Most people do not realize it yet but the old paradigms in economics, government and education are done for. The human cosmos relative to the earth has fundamentally shifted. Humankind will either adapt and change or go the way of the 98 % of the species that have gone extinct. Underlying all of this is the hard fact that religion must change. Religion is killing us! Ironically for America that is 85% Christian by profession is to go back and actually listen to the Sermon on the Mount and see what Christ was really all about. He represented a major revolution in human relationships that we still have yet to assimilate. Unfortunately most people would not recognize Christ if he walked on the water in their baptismal fount. As long as Christ is conflated with the dreadful Old Testament God and the idiotic concept of the Trinity, we never will make any progress. As an atheist I am happy that Obama mentioned nonbelievers in his speech but ironically I think the answer is a rediscovery of the real Christ.

[brassminnie]

Agreed. Quote a lady called Frankie, about thirty years ago, "Dinosaurs were around for six million years. What makes you think you're a member of a successful species?" Choose to change now, or learn if we can adapt fast enough to survive.

[dshwa]

Or at least a rediscovery of some higher values. Christ doesn't have the market cornered (pardon the pun) on moral compasses. But I agree in principle, this country needs to rediscover a higher purpose than greed.

[MacQ]

You say "Religion is killing us", but your argument seems to identify the culprit more as a failure to live said religion. That I'd agree with.