This EKD synod discussed the problems of the increasingly global economy. There are reasons why it has issued a statement on economic questions, following the memorandum Common Good and Self Interest of 1991 and the Joint Statement on the Social and Economic Situation in Germany of 1997. The two faces of globalization are emerging ever more clearly: they are producing injustice and anxieties, but also advantages, opportunities and hopes.

On the one hand we perceive that

There has been an acceleration of economic change, caused largely by technology and leaving many people bewildered
The euphoria about economic successes in the 'new economy' has yielded to a more sober assessment of the risks involved in an economic system driven by short-term profit.
The growing anarchy on international financial markets has led to a situation in which the rating of shares and foreign exchange frequently depends more on psychological factors than on economic facts.
In view of the increasing delinking of economic developments from processes aiming at social justice there is a growing call for clearer political parameters for globalized economics.
The hopes that globally oriented policy-making would offer ecological opportunities have been somewhat deflated, particularly in view of the setbacks suffered by global climate policy.

On the other hand we note that

Globalization has brought a greater opportunity for a new understanding of the world and a global sense of responsibility.
Even if distribution is grossly unjust more goods and services can be supplied at reasonable prices.
In principle the reduction of trade barriers also allows poorer countries to participate in the the market.
Globalization can create a new understanding between cultures.
Many ecological problems can only be dealt with in a global context.

Living in Christian freedom

"The earth is the Lord's and all that is in it, the world, and those who live in it" (Psalm 24: 1). levels.

Our view of a responsible shaping of globalization is founded in our God given freedom on which we endeavour to draw as we shape the world. In Christian tradition freedom does not mean maximization of self-interest but working to make God's promise of "life in its fullness" available to all. poor"

That is why freedom in solidarity takes place with others and with responsibility for the common good. We maintain: the scandal of global economic injustice is the central challenge to the shaping of global development. Globalization must therefore be judged by whether the resultant economic prosperity also benefits the most vulnerable members of the global community.

Acting in ecumenical responsibility

As churches we live in a worldwide community and therefore sense in a special way the challenges arising through the changes in this One World of ours. We are connected with churches on all continents, also with churches in the countries that due to their poverty and instability are currently considered economically and politically "uninteresting". In our partnerships we encounter those who are not among the beneficiaries of globalization. "We must not put up with an increasing polarization between dynamic centres of growth and regions of poverty and under-development" (EKD synod, Brunswick, 2000).

Through actions like Bread for the economics World and church development services we have a long tradition of development cooperation, that looks to the needs of the most disadvantaged with the motto "justice for the poor". We observe and promote alternative forms of production and trade organized at the local and regional This commitment to development gives rise to important criteria for the assessment of globalization processes.

In ecumenical conversation about justice, peace and the integrity of creation the "preferential option for the has become a "leitmotiv for social action". "All social, political and economic action and decision-making should be gauged by the extent to which it concerns, benefits and empowers the poor." (Joint Statement, 107)

Seeking cooperation and dialogue

Disadvantaged groups and individuals need to be helped to get their rights. The church is not alone in this endeavour. We are grateful for all that is being done by people from the most diverse backgrounds: in our sister churches, non-church organizations, private aid initiatives, governments, companies and trade unions. We offer our readiness to cooperate with all those who devote themselves to such work.

In particular we consider the dialogue of the church with business leaders to be necessary. We are convinced that market processes alone do not generate what is necessary and desirable -this requires responsible planning.

The churches have to learn. . increasingly or anew how to identify with the complex problems of and also consider the remits of those with responsibility In this context. In this dialogue the churches must raise up the overarching goals of all human efforts in the economic field: they should serve the humanity of all people and the life of all living creatures.

Socially shaping structural change Global economic activity requires structural change. This can only be accepted if the losers are not left on their own. It is therefore the responsibility of national policy-makers to improve the conditions for creating new jobs and to guarantee social security for the unemployed and low wage earners.

Global economics therefore calls for more forms of social security, not for less, although they may possibly be different forms. We hereby dispute the frequently expressed opinion that the welfare state is unaffordable in the age of globalization.

Taking responsibility for education

An essential element of globalization of the economy is linking the market economy and new media. The new information and communication technologies are fundamentally changing all areas of life and work worldwide. The demands on knowledge and skills of employees are constantly growing. However, one must not overlook the danger that schools and education may be instrumentalized for economic goals alone.

Education in a spirit of Christian responsibility, by contrast, keeps the whole person in view. Our picture of human beings commits us to accept and foster everyone in their strengths and weaknesses and not to reduce standards them to their usefulness in the work process. This call for holistic education is raised by Christians worldwide, independently of whether it concerns church- or state-run educational institutions. Only with open and permeable access to schools and training institutions will all people be able to share in this educational process.

Demanding the contribution of national economic policy

National economic policy is particularly called to account in the process of globalization. It must not hide behind the anonymity of international developments. It is not correct that national economic policy has no more room to manoeuvre, as is often claimed to be the case due to globalization.

National economic policy must therefore not allow any reduction of its own standards by reference to lower standards in other countries. However important it is to achieve international coordination of social and environmental standards, it must be clear that these can only be minimum standards.

"Rich" countries, including Germany, are particularly committed to sustainability. These countries can and must make a disproportionate contribution to sustainable development of our one world since they make disproportionate use of its resources. However, social and environmental standards must not be abused as instruments of protectionism as that would deprive less developed countries of an important competitive edge.

It is the task of national policy-makers to impose international rules and and to sanction those who infringe them. Wherever this does not happen international political solutions are called for.

Globalization does not just lead to a transnationalization of business but also to an increase in international migration. That has consequences for the immigration policy of industrialized countries. They must not put up walls against poverty migration. If they recruit well trained workers the less developed countries lose the skilled personnel they need.

Promoting the opening up of Europe

A global economy that is increasingly integrated includes the mutual opening of markets. We must shoulder responsibility for the development of our one world by opening up our markets even where this entails disadvantages. This particularly applies to the trade policy of the European Union, that has protectionist features at many points.

Agriculture is particularly important to the least developed countries. That is why there should be a more responsible form of European agricultural policy so that it can contribute to global justice and sustainable development, in harmony countries with ecological, economic and social criteria. The main assignment of a sustainable agricultural policy in the North and the South is global food security. Future structural assistance and subsidies in Europe and worldwide should focus on sustainable modes of production. The necessary reduction in trade barriers must not lead to the destruction of local markets and the livelihoods of small and medium-sized companies.

Current European agricultural policy does not do justice to this demand. A mistaken, basically quantity-oriented policy of subsidies has led to over production, that is creating problems in developing countries in several respects; consequently Europe is putting up walls and, by subsidizing prices downwards, destroying markets on which the least developed countries depend. All this is not in the interest of our farmers either. A reform will benefit them and the quality of German agricultural production. The challenges of EU enlargement must be kept in mind here.

In the industrial and services sector there are also trade barriers of differing intensity, direct and indirect, open and hidden. Europe must not become protectionist. It is the responsibility of German politicians to call for an outward-looking Europe.

The regions are of special importance as places of residence and economic activity -in the process of convergence towards one world many problems can only be solved at the local level. This is clear on the example of Europe. Here the churches can play an important part as initiators and mediators.

EU enlargement towards eastern Europe is urgently needed. It is a necessary condition for the accession to continue to catch up in their development.

Strengthening international institutions

International cooperation extending beyond Europe is also in need of improvement. National political responsibility does not end at the national borders. Existing international institutions must be given more weight. They urgently depend on the support of national governments and politicians. For this the existing forms of informal cooperation must be expanded and given institutional safeguards as far as possible. Likewise, more international conventions should be concluded and implemented to provide responsible global standards, including in the field of social policy. International institutions should draft them with a view to ratification. National governments and parliaments should then move faster with ratification and implementation.

Expanding international coordination is an urgent matter. The representatives of developing countries and emerging economies are to be drawn into this, likewise unions and NGOs in the South and the North.

The fate of whole economies must not be exposed to the arbitrariness of financial markets. There are no pat solutions to prevent exchange rate turbulence. The much discussed Tobin tax would be no help against major fluctuation and it can only work if introduced worldwide, which is not to be expected. It is much more important for the large industrialized states to cooperate resolutely. to give guidance to the financial markets and ensure monetary conditions that promote economic development in all countries. For too long it has been believed that we can manage without such a policy. This has been proven wrong by many examples from the 1990s. It has been the most vulnerable who have had to suffer the consequences.

Debt cancellation for the poorest countries is still on the agenda. The debt servicing of poor countries is threatening the livelihoods of their needy population.

Another necessary reform is the expansion of bank regulation in the North and the South in order to avoid companies collapsing due to short term financing. A reform of own capital regulations is urgently needed. The expansion of regional cooperation on monetary policy could support the position of the least developed countries. The juxtaposition of different monetary policy regimes is one of the reasons for the latest crisis in South America.

Reminding corporate leaders of their responsibility

Companies and unions are equally challenged in the process of global economic activity. They have to cope together with the relocation of production sites to other regions and shape such a process with social concern.

Large TNCs are able to set standards in their field, geared to sustainable economics. There are examples of this being very successful. Business federations can also enter into voluntary commitments at the national or international level. Moreover, industry can point politics to areas in which the voluntary commitments of individual companies or associations do not suffice.

Business circles can play an important part in the global compact initiated by Kofi Annan in which they (management and unions), the UN and civil society organizations are to work together. In Europe corporate social responsibility (CSR) as contained in the new EU green paper should be taken up and elaborated.

Business and political levels must together contribute to a sparing use of resources, to environmental protection and the promotion of good working conditions. In this spirit policy-makers should create the appropriate incentives for companies investing in developing countries, in order to give impetus to development.

Strengthening church commitment to economic policy

The development towards one world is confronting the churches with particular challenges. They have a responsibility for the most vulnerable at the national and the international level. Nationally the churches must stand up for those who lose their jobs through the global economy. They must also continue to combat unemployment and work for the real improvement of the situation of the unemployed people. The manual trades also deserve their special attention. The churches must do as much as possible to bring about a balance between Germany's eastern and the western lander. Internationally the churches should take part in a review process that sees foreign direct investment -given appropriate conditions -as a way to overcome poverty, and no longer as its cause. The churches must make it clear that they consider TNCs, the IMF and the World Bank as their partners, not as their adversaries. This by no means excludes critical dialogue. Wherever companies undercut social and ecological minimum standards the churches should support the forming of counter-awareness to remind these companies of their responsibility. If individuals or initiatives are persecuted due to their commitment the churches must stand up for them. The churches must use all their authority -which they still have in many societies -in order to influence political decisions in the spirit of the preferential option for the poor, both in North and the South. Responsible individuals will be needed to fulfil this mandate. The churches should give them guidance and support through the Christian message.

Global economic activity offers risks and opportunities. We want the opportunities to be taken and the risks to be kept tolerable. That means for us: shaping the global economy with responsibility.

The president of the synod of the Evangelical Church in Germany, Amberg, November 9 2001