Life Beyond Debt

Banking on Virtue

The budget cuts announced in Ireland show that the financial crisis is far from over. While the UK may not be in quite the same perilous situation, the recent spending review means we will all have to go on tightening our belts for a little longer.

Banking on Virtue, a new report from pastor and Senior Fellow at the National Institute for Economic and Social Research, Philip Davis, takes a broader look at the crisis - going beyond just asking about the cause and effect of the events in economic terms. The report looks in detail at the economic aspects of the crisis, but also combines this with biblical reflections to provide a more holistic picture of humankind. This means that as well as thinking about what caused the crisis, deeper questions can be asked of why the crisis occurred and where responsibility lies. 

Starting with a review of how the crisis unfolded, Banking on Virtue then considers the different views on humanity that economic theory and Christian theology take. There are some similarities: they both look at how things are, and how they should be. However, the biblical view offers a far fuller picture; community life is crucial rather than just individual fulfilment. And while wealth is celebrated at times as indicating God's blessing, it is the relationship with God that a Christian sees as central to well-being.

Looking at the financial sector, personal debt, and Government debt in turn an economic analysis is provided and then supplemented with theological reflections that illustrate this fuller picture of the crisis. It becomes clear that a variety of actors in the economy - bankers, the public, and the Government - acted in recent years in the pursuit of their own self interest.

Bankers put their livelihoods at risk by their self-interested actions. Households sometimes went to such extremes of indebtedness that they risked default, bankruptcy and repossession. And by doing so they fed the bankers' self-interest further. During this boom, the report contends that governments effectively misled the population about sustainable economic growth, giving the impression that risk had been abolished. In a striking conclusion report author Philip Davis argues that in the search for continued power governments encouraged bankers and households to believe that high levels of debt could be sustainable, and for many this led to catastrophe.

The biblical reflections in the report paint a picture of idolatry, whether this is of the banks as institutions, the Government as providers, or of money and wealth in general. This idolatry needs to be recognised, and the structural injustices and evils it generates, condemned. The report calls for the church to find a voice and fulfil an essential role in providing cultural transformation against a money fixated society, as well as standing ready to critique governments when they act contrary to truth or justice, and offering merciful support to casualties of the recession.

In outlining a biblical approach Banking on Virtue provides a critique of the overall aims of economics - wealth, consumption power - and contrasts it to Jesus' proclamation of the Kingdom of God, the law of love for God and neighbour and responsible stewardship.

·                            Read the full Banking on Virtue report

·                            Read the Banking on Virtue Summary and Recommendations

Banking on Virtue was produced for the Evangelical Alliance, however, the final content of the report, both theological and economic, remains the personal view and position of Philip Davis.

The Bible and Money

The Bible and Money: Managing one's money in the end times

Following the Jubilee Centre's Cambridge Papers Open Day in May, an eight-work course on what the Bible has to say about our use of money today, developed by Paul Mills, who gave the plenary presentation on the global economic crisis at our Open Day is now available. In eight immensely practical lessons, the course looks at possessions, stewardship, giving, borrowing and lending, saving and insurance, investments and gambling, tax and pensions, and church finances. 'The Bible and Money: Managing one's money in the end times' explores questions such as 'Should I default on debt payments to tithe?', 'Should the local church ever borrow to fund missions, buy property or pay staff?' and 'How do the most widely available forms of savings and investment match up to biblical principles?' 

'As well as having a charity fund, why hasn't your church got an interest-free loan fund?' international economist Dr Paul Mills challenged participants at the Cambridge Papers Open Day in May. Speaking in a strictly personal capacity at the Jubilee Centre conference, Dr Mills offered a positive and uniquely Christian contribution to the current debate in which policy makers, bankers, and concerned citizens alike are all looking for a new model of finance. However, he fears that when the immediate crisis passes, vested interests will reassert themselves, preventing the necessary reforms that could prevent the debt-driven cycle of 'boom and bust' again in the future.

Visit the Resources section of the Jubilee Centre website for papers by Paul Mills, video clips of all the Cambridge Papers Open Day speakers and a copy of the Open Day Proceedings report.

Life Beyond Debt Booklet

In collaboration with Stewardship the Evangelical Alliance has produced a booklet highlighting some of the ways that churches can respond to the economic crisis. The Bible is outspoken on issues of money, poverty and injustice and the church should be equally vocal. With national networks, and local presence, the church is uniquely placed to help those who are struggling with debt, unemployment or other financial pressures. By bringing the conviction that motivates our action together with organisations and resources already established, the church can extend its engagement and bring vital aid to those most in need.

The turbulent times that are currently experiencing will leave an indelible mark on our economic and social landscape.  As well as helping to make a practical difference in the communities where we live, now is a critical time to think about the role that money plays in our life and what the Christian faith has to say about the way that the economic system is structured.

The booklet contains some of the easiest ways that churches can engage with the subject of money. Churches across the country are already involved in the activities outlined, and many more. It can be a little daunting to think of the challenges that face us and know how best to respond. Many churches already offer debt counselling services, or run money education classes; the booklet offers a taster of how churches can think more about money within their congregations and reach out to the communities outside their door. Maybe there is something that you could start doing, or an idea that would help extend your current work. View the booklet online or order copies from lifebeyonddebt@eauk.org