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Civil Economy and Economy of Communion
by Luigino Bruni
Published in Città Nuova n.1/2010
Civil economy is a tradition of thought that views the market and business not as the reign of individual interests alone but as a matter of reciprocity and fraternity. If we consider the economy in this way, then we can say that the Economy of Communion (EoC) is truly economy and not just a marginal experience of good entrepreneurs going ahead to plug the holes in the economy that actually counts. It´s something new that cannot be framed within the dualistic scheme of "for-profit" and "non-profit", typical of the capitalistic tradition.
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When we look at the EoC from the cultural perspective of civil economy, it becomes a paradigm of those "for-project" businesses (who are neither "for" or "against" profit)  typical of civil economy, in which entrepreneurs are builders of shared projects and in which profit is only an element.
At the same time, the EoC and the spirituality from which it arose have provided us theoretical categories for giving content to civil economy. These include reciprocity, gratuitousness, fraternity and relational goods - words we have "learned" even by observing the life of the entrepreneurs, workers and the poor of the EoC project. Therefore, without the experience and the spirituality of the EoC, the theoretical content of civil economy would probably be (at least on my part) much more meager and certainly different. Without the elaboration of civil economy, the EoC would have less scientific dignity and would be considered an anomalous exception, without the extensiveness that civil economy´s perspective gives it.
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    [text] => 
Civil Economy and Economy of Communion
by Luigino Bruni
Published in Città Nuova n.1/2010
Civil economy is a tradition of thought that views the market and business not as the reign of individual interests alone but as a matter of reciprocity and fraternity. If we consider the economy in this way, then we can say that the Economy of Communion (EoC) is truly economy and not just a marginal experience of good entrepreneurs going ahead to plug the holes in the economy that actually counts. It´s something new that cannot be framed within the dualistic scheme of "for-profit" and "non-profit", typical of the capitalistic tradition.
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    [title] => The market, traffic, and "point-system ethics"
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    [introtext] => 
The Italian economy within the context of international uncertainty. Instructions on how not to "flood your engine".
By Luigino Bruni 

Published on 08/10/2009 inwww.cittanuova.it

Economy is a social science that makes much use of metaphors and images. The first, and still one of the most famous, was the "invisible hand", the metaphor that economist Adam Smith used to explain the 17th century market as a mechanism that transforms private interests into the common good. Still today, the economy borrows images from sports (competition as a sporting race), from music (the manager as the director of an orchestra), and many other areas. These images allow economists to explain dimensions of reality that remain inaccessible to the language of mathematical formulas and balance exercises. However, metaphors don’t always truly help, and they sometimes lead us astray, especially when the borrowed image is used for ideological goals and has an excessive amount of simplifications.
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More recently, for example, it’s always more often that we find the combination of market and street traffic. When a person leaves his house and joins traffic, he does so because he has motives and personal interests that drive him on (work, friends, amusements), and not out of love for his city or for the other drivers. But if traffic is well-regulated by instruments (traffic lights, roundabouts, and control cameras), institutions (police and traffic officers), infrastructures and good laws, each person is able to reach their own goal. But for road conditions to work well, the institutions, instruments, controls and laws are not enough. There is also need of a certain ethic for motorists and road maintenance. And when this mechanism is blocked (by traffic jams, for example), the answer is not trying to make the motorists "better" people, but rather in the need to improve streets or substitute traffic lights with roundabouts. The market is the same: with good instruments and institutions, rules and "watchmen", wide and comfortable "streets", respect of the law - and each person is able to reach their objective, giving life to a "spontaneous order" that doesn´t require a regolatory plan that fixes prices from above or regulates demand and sales.
But there’s more. In the midst of traffic, it´s not opportune (and it’s actually inconvenient), to look into the eyes of the other drivers when we pass them or stop at a traffic light. We´re not asked to live altruism while driving, as it is often dangerous (because it´s unpredictable). For example, when an "altruistic" driver sees an elderly person who wants to cross the street where there is not crosswalk, he comes to a grinding halt and gets rear-ended by the car behind him. The only moment when looking into the other’s eyes and being altruistic fits into street traffic is during moments of crisis (as in a bad or unforeseen maneuver), or the favor of letting someone turn onto the main road from a secondary one. The market is the same: anonymity and being impersonal work better than friendly or familiar relationships. In business, you don’t look at anyone "in the face". Respecting the rules, plus a few small donations - this is the maximum that can be asked of the economic ethic in normal times. Only during crisis is it necessary to do something extra.
But are we sure that things truly fit into this model? I don’t think so. The market-traffic analogy catches some aspects, but risks running us off course in other very important ones. Above all, we live ethics in other very relevant aspects of traffic conduct - from what type of car we buy (ecological or not), to a responsible and prudent driving style (not slowing down only when we know there is a camera), to the self-control we exercise when we react to other’s driving errors. And the role of institutions isn’t limited only to the maintenance of traffic lights and cameras, but extends to favoring more ecological transportation systems (trains, for example), to public transportation or new models of renting cars (the so-called car-sharing) and ownership.
The same goes for the market: ethics isn’t mainly in the smile that one gives a client or colleague, but in being professionally up-to-date, in preparing oneself before a meeting, in not selling one’s dignity for a career, in job security, in being indignant in the face of injustices.
"I love my patients by studying their charts before a visit", a primary care doctor from Milan told me. Today, for who loves ethics and values, the challenge is to pull them back out of the margins where we have confined them: a smile from the car window, a SMS to show our support, or pre-tax donations. These are all positive things, but the ethical quality of public life is played through the use of the 99.5% of income, through solidarity with Abruzzo six months after the first SMS during the emergency, or through fairness in work relationships.
The crisis that we are living, and the many others which we will live, tell us that the ethical dimension of business and banking is not measured by the amount given in philanthropic donations. Rather, it’s measured with the culture of their entire activity. Let´s not resign ourselves to a culture  that is transforming values into the "Limoncello" (a lemon liquor) of a lavish lunch - agreeable but not an essential part of life.
Ethnics are neither the limoncello nor the first course. It´s mostly the way in which the lunch is prepared, served and looked after. It is the quality of the relationships during the meal, the attention to who doesn’t eat with us or who doesn’t eat at all because excluded from our opulent banquets. If we forget all of this, values will soon become simple merchandise that each person can buy at a good price and consume as he wishes, in a type of "point-system ethics", with relative rehabilitation facilities.
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    [text] => 
The Italian economy within the context of international uncertainty. Instructions on how not to "flood your engine".
By Luigino Bruni 

Published on 08/10/2009 inwww.cittanuova.it

Economy is a social science that makes much use of metaphors and images. The first, and still one of the most famous, was the "invisible hand", the metaphor that economist Adam Smith used to explain the 17th century market as a mechanism that transforms private interests into the common good. Still today, the economy borrows images from sports (competition as a sporting race), from music (the manager as the director of an orchestra), and many other areas. These images allow economists to explain dimensions of reality that remain inaccessible to the language of mathematical formulas and balance exercises. However, metaphors don’t always truly help, and they sometimes lead us astray, especially when the borrowed image is used for ideological goals and has an excessive amount of simplifications.
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Let´s get over the view of Italy as the sum of it´s North and South: Italy is a complex country, which needs to be seen on various levels in order to be understood and “treated”.
by Luigino Bruni

published on 12/08/2009 on www.cittanuova.it 

The Italian political debate during the summer, maybe because of the climate, often takes on original characteristics, sometimes paradoxical ones. For example, let´s take the contrast between 1) the worried and unanimous reaction of the political class when faced with Istat data about the significant poverty in Southern Italy, and 2) the proposal reached a few days later, about the “salary gaps”, justified by the fact that in the South life costs less.  An impartial observer would have found this quite bizarre. As if there were no link between the greater poverty in the South and lower prices there (One doesn´t need to be professor of economics to understand that. It´s enough to spend some time on the streets of our cities and to truly meet the people).
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I must confess that these, and other not less serious political happenings of these summer months, leave one speechless – especially those who honestly try to understand the real problems of our country and try to resolve them. The “Southern question” has continuously come back into political debate for at least 150 years, and always refers to the “problem” that the North associates to something in the “South” of the country. The “solutions” proposed are always the same: the country (therefore, the North) has to do something extra and different for the South – particularly, the need to generously give money and resources.
As long as we continue to place the North-South question in these terms, we’re never going to find the effective solution to this problem. What can we do, then? First of all, we need to get over the interpretation of Italy as a sum of North and South. Italy is a complex country, which needs to be seen on various levels in order to be understood and “treated”. North and South are worn-out and generic categories to still be of any help today. Every region, and sometimes every city, of the “South” is different from the others: Sicily’s problems are in some ways the same as those of Apuglia, but in other ways more similar to those of Sardinia, and still for others closer to those of Lazio. When being above or below Rome becomes the main criterion for interpreting problems of this country’s people, we are totally going down the wrong road. More profound and serious analyses are needed.
Secondly, the “South” of Italy is not a problem, but an extraordinary resource of culture, good life, relationships and even economy. It’s a resource that – here is the point – is not valued by Italy and above all by it’s government because it is not understood. And it’s not understood because it is not adequately loved and esteemed. Until politicians who want to “help” the South have not learned to know and truly esteem the South, whatever help or maneuver “for” the South will be inefficient, as whoever has truly tried to help a person or community knows. Without reciprocity and without reciprocal esteem, there is no integral development. Rather, old and new social illnesses are nourished.
Only by esteeming and deeply understanding the vocation of the southern regions, which will never be an industrial vocation as it is (or was) for Lombardy or Piedmont, will Italy find its place in the new world order. Economic and civil development in 21st century Italy must pass through the main goods held and cared for within the folds of the Mediterranean culture. These are goods like environment, well living, food, relationships, history: goods that are values and resources, not problems. Only when we’re conscious of all this can infrastructure investments come to the South. These investments are extremely urgent, but only afterwards. Otherwise, we’ll continue to make mistakes and divide our country.
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Let´s get over the view of Italy as the sum of it´s North and South: Italy is a complex country, which needs to be seen on various levels in order to be understood and “treated”.
by Luigino Bruni

published on 12/08/2009 on www.cittanuova.it 

The Italian political debate during the summer, maybe because of the climate, often takes on original characteristics, sometimes paradoxical ones. For example, let´s take the contrast between 1) the worried and unanimous reaction of the political class when faced with Istat data about the significant poverty in Southern Italy, and 2) the proposal reached a few days later, about the “salary gaps”, justified by the fact that in the South life costs less.  An impartial observer would have found this quite bizarre. As if there were no link between the greater poverty in the South and lower prices there (One doesn´t need to be professor of economics to understand that. It´s enough to spend some time on the streets of our cities and to truly meet the people).
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by Luigino Bruni
published in Città Nuova n.14/2009
Several papal encyclicals have marked epocal stages in history. The first wave of industrial capitalism had put many in crisis by the social questions it posed. Rerum Novarum gave voice to an entire cultural and social movement searching for answers to this crisis. Then, during a dark moment for Italy and for Europe, Quadragesimo Anno represented a cry of freedom and of fraternity symbolized by the principle of subsidiarity, which resounded like a civil liberation program. And emerging during a phase of social and cultural contestation, already denouncing the limits of second generation capitalism, Populorum Progressio represented a manifesto for social, economic and political commitment for an entire post-Council generation (both within and outside the Church).  Caritas in Veritate is another event that spans today’s history. The last encyclical of Benedict XVI should be greeted with joy and hope by who works in the civil, economic or political sphere. At the same time, it represents continuity with the social teaching of the Church and an important innovation (to be much reflected on in the next few years).

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First of all, in the first few lines of the letter, the pope makes an invitation to overcome one of the most radical contradictions of our society: that between the sphere or logic of gift or gratuitousness, and that of the market. This need for unity is at the heart of Caritas in Veritate´s message, and it represents a point of extraordinary prophetic strength. Of all things, gratuitousness is that which is missing most among today’s economic debate, in markets and in businesses. Whoever mentions gratuitousness is considered naïve, a hoax (“what’s behind this?”), and in any case, dangerous for the functioning of markets and businesses.
In fact, gratuitousness, on one side, is confused with “free” (gratis) or with philanthropy. On the other side, gift is mistaken for material “presents” or companies´ promotional giveaways. In reality, as the pope reminds us, gratuitousness refers back to charis, or grace (nothing like free: gratuitousness is weighty!), and to agape, the greek word that Latin-speakers translated as caritas (charity) to further underline the close link between Christian love and charis, or grace.
Gratuitousness is, in fact, a grace as it is a gift not only for who receives acts of gratuitousness but also for who performs them. The capacity to love gratuitously is always something that happens in us and always surprises us, as when we are capable of starting again after big failure or of truly forgiving serious mistakes of others. This is the type of gratuitousness that the capitalistic market isn´t acquainted with. Instead, this encyclical calls us to put it at the center of our economic, political and social relationships, where it seems impossible, but where there are already many living this way in the “`civil economy` or the `economy of communion`”(n. 46).
One can understand, therefore, how the pope makes a strong invitation to overcome the distinction between non-profit and for-profit. Spheres or sectors of gratuitousness don’t exist: every business, beyond it’s form, is called to gratuitousness. This is the human code – if a business, whether for-profit or non-profit, isn’t open to gratuitousness, it isn’t a human activity and therefore cannot bring fruits of humanness. And one can also understand why: Benedict XVI reminds us that profit cannot be and should not be the main purpose of a business, but rather one among many elements, and certainly not the most important.
Re-launching gratuitousness into the economy, the encyclical calls the market back to its vocation of meeting between free and equal people, and it’s a radical critique of capitalism (precisely why the word is never cited in the text). We will save the market and its gift of civilization only by overcoming capitalism and moving towards a civil economy and an economy of communion.
After the first encyclical on charity, and the second on hope, we could have expected the third on faith. And actually, that is what happened, as only a vision of man, an anthropology that believes the person to be made in the image of a God who is communion, with “made in the trinity” stamped in its being, can accept the invitation to gratuitousness even in this world, in this economy. On this anthropological wager resides the hope that the economy announced will not be a utopia (a no-place) but a eutopia (a good place), the place of the human being.
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by Luigino Bruni
published in Città Nuova n.14/2009
Several papal encyclicals have marked epocal stages in history. The first wave of industrial capitalism had put many in crisis by the social questions it posed. Rerum Novarum gave voice to an entire cultural and social movement searching for answers to this crisis. Then, during a dark moment for Italy and for Europe, Quadragesimo Anno represented a cry of freedom and of fraternity symbolized by the principle of subsidiarity, which resounded like a civil liberation program. And emerging during a phase of social and cultural contestation, already denouncing the limits of second generation capitalism, Populorum Progressio represented a manifesto for social, economic and political commitment for an entire post-Council generation (both within and outside the Church).  Caritas in Veritate is another event that spans today’s history. The last encyclical of Benedict XVI should be greeted with joy and hope by who works in the civil, economic or political sphere. At the same time, it represents continuity with the social teaching of the Church and an important innovation (to be much reflected on in the next few years).

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