Here’s the pope’s prescription for resetting the global economy in response to COVID-19

“The story did not end the way it was meant to,” Pope Francis wrote recently, deftly excommunicating about a half-century’s worth of economic ideology.

In a striking, 43,000-word-long encyclical published last Sunday, the pope put his stamp on efforts to shape what's been termed a Great Reset of the global economy in response to the devastation of COVID-19.

The “story” he’s referring to is neoliberalism, a philosophy espousing austerity, privatization, deregulation, unbridled markets, and relatively weak labour laws. While it’s been faithfully told through innumerable economists and policy-makers since the 1970s, and put into practice in prominent ways, the pope believes this tale has now worn thin. He is not alone.

Neoliberalism’s free-market orthodoxy has been blamed for making health care systems and livelihoods especially vulnerable to the pandemic, and has drawn a clearer line under the need for active government intervention.

Pope Francis criticizes the “dogma of neoliberal faith” in his encyclical, adding that “the fragility of world systems in the face of the pandemic has demonstrated that not everything can be resolved by market freedom.” He advocates for a political life not subject to the “dictates of finance,” and for making human dignity the focus of new, “alternative social structures.”

The encyclical comes as many countries have seen new surges in coronavirus cases, and as the economic fallout continues to disproportionately affect frontline workers and the poor. Lower-middle income countries have been hit with the sharpest declines in working hours and labour income since the pandemic began, and an estimated 96 million people may now be pushed into extreme poverty by next year.

The encyclical, entitled “Fratelli tutti” (“Brothers, all”), also calls for greater multilateral cooperation among countries, and urges a reform of the United Nations – so the “concept of the family of nations can acquire real teeth,” and the weakest among them can be guaranteed basic freedoms. The pope addressed the UN last month, urging member states to rebuild after COVID-19 in ways that involve less military spending and better treatment for refugees and women.

Racism is also covered in the encyclical, as something that shows “our supposed social progress is not as real or definitive as we think.” The pope likened racism to a virus, which often “goes into hiding, and lurks in waiting.”

The pandemic has exposed the racism undermining many health systems, placing people of colour at greater risk – and the protests against systemic racism triggered by the killing of George Floyd this past May have continued in places like Louisville, Kentucky.

Populism, too, is covered – as something that can be used to exploit the vulnerable while serving the economic interests of the powerful. The pope calls instead for “a better kind of politics” that genuinely serves the common good. Media and other types of reports have noted that many countries with populist leaders tend to have suffered inordinately from the ravages of COVID-19.

For more context, here are links to further reading from the World Economic Forum’s Strategic Intelligence platform:

On the Strategic Intelligence platform, you can find feeds of expert analysis related to the Role of Religion, COVID-19 and hundreds of additional topics. You’ll need to register to view.