Home
/
RELIGION & LIBERTY ONLINE
/
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Jan 21, 2026 11:49 PM

Sojourners’ Jim Wallis has been at the Davos gathering in Switzerland and is urging us to be guided by a new Davos “covenant.” If you’ve never heard of Davos, Michael Miller’s RealClear Politics piece “Davos Capitalism” describes the gathering and its unassailable hubris this way:

Davos capitalism, a managerial capitalism run by an enlightened elite–politicians, business leaders, technology gurus, bureaucrats, academics, and celebrities–all gathered together trying to make the economic world smarter or more humane…. And we looked up to Davos Man. Who wouldn’t be impressed by the gatherings at the annual meeting of the World Economic Forum at Davos, a Swiss ski resort? Sharply dressed, eloquent, rich, famous, Republican, Democrat, Tory, Labour, Conservative, Socialist, highly connected, powerful and ever so bright.

Then, when the whole managerial economy collapsed, the managers and technocrats lost faith in markets. But they did not lose faith in themselves, and now they want us to entrust even more of the economy to them.

As if on cue, Jim Wallis writes in a recent public letter:

This week at the World Economic Forum in Davos, Switzerland, we are looking to the future and asking “what now?” At a Saturday session — “The Moral Economy: From Social Contract to Social Covenant” — a document will kick off a year-long global conversation about a new “social covenant” between citizens, governments, and businesses.

Why dispense with the yeomen-like “contract” language in favor of a new “social covenant”? Wallis explains that “in the past 20 years, the world has witnessed the death of social contracts. We have seen a massive breakdown in trust between citizens, their economies, and their governments…. Former assumptions and shared notions about fairness, agreements, reciprocity, mutual benefits, social values, and expected futures have all but disappeared. The collapse of financial systems and the resulting economic crisis not only have caused instability, insecurity, and human pain; they have also generated a growing disbelief and fundamental distrust in the way things operate and how decisions are made.”

Greed and unscrupulousness was part of the mix, of course, but we’ve had these in the mix ever since Adam and Eve took the bite from the forbidden fruit. What we got more and more of in the past few decades is the kind of big, top-down Davos planning that helped precipitate the economic crisis.

During that period, European governments promised ever more lavish union wages, pensions and fringe benefits until many Euro-zone economies began collapsing under the sheer, unsupportable weight of it all.

Meanwhile, in the United States, Washington policy makers were pursuing top-down and Keynesian schemes to spread home ownership to more and more American citizens through bination of government interest-rate manipulation and policies that coerced panies to issue home loans to people with terrible credit records. Together, these policies fueled a housing bubble as people rushed to get loans for homes they couldn’t afford in a “sure fire” housing economy fueled by artificially cheap credit and artificially cheap access to that credit. When the bubble generated by these Davos-style schemes finally burst (as economic bubbles inevitably do), the Davos crowd rushed to blame the free market and now are talking about the need for a new social covenant, which is mostly just more of the same top-down, redistributive “social justice” that hurried us into the present fix.

Certainly there were rich capitalists who behaved badly in the run-up to the economic crisis, and many of them were at meetings like the Davos Forum making sure they were plugged into all of the latest big-government crony capitalist schemes. This “new social covenant” makes an admirable call for greater virtue in public life, but it overlooks the fact that as governments gain greater and greater power to control and regulate the economy–to pick winners and losers–the more fuel there is for corruption as politicians and corporations find all kinds of new opportunities for trading favors.

The Davos statement begins with language it would be difficult for any reasonable person to argue with: “The dignity of the human person,” the mon good,” a “need for stewardship,” a due regard “not just for ourselves, but for posterity.” But when you scratch the surface, you find more of the same calls for top-down, big government redistribution and economic planning.

As a Christian, I find covenant language genuinely appealing. But talking about covenants, dignity, stewardship, mon good and posterity while peddling more of the same centralized, bureaucratic, government-corporate partnerships that led to the mess in the first place is only a recipe for a bigger political and economic mon bad, if you will.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
EcoLinks 06.02.15
Cardinal Turkson: together for stewardship of creation Cardinal Peter K.A. Turkson, Vatican Radio Despite the generation of great wealth, we find starkly rising disparities – vast numbers of people excluded and discarded, their dignity trampled upon. As global society increasingly defines itself by consumerist and monetary values, the privileged in turn e increasingly numb to the cries of the poor. Pope Francis endorses climate action petition Brian Roewe, National Catholic Reporter “He was very supportive,” Tomás Insua, a Buenos Aires,...
Top 5 Books For Today’s College Student: Greg Thornbury
President of The King’s College in New York City and one of this year’s Acton University plenaries, Greg Thornbury, gives his top 5 book picks for today’s college students. 1. Plato’s Dialogues Plato’s dialogues are good for virtually everything that ails our society. He takes on relativism, skepticism, materialism, and incivility. Gorgias clarifies the difference between truth-seeking and posturing. 2. The Confessions of St. Augustine In Confessions, Augustine of Hippo charts his tumultuous journey to God in the ing-of-age story...
Kishore Jayabalan: Will Upcoming Encyclical ‘Squander’ Papal Authority?
In anticipation of the new papal encyclical on the environment (reportedly due out this month, and titledLaudato si’[Praised Be You]), the press is seeking a way to make sense out of information “floating around” concerning the contents of the encyclical. At this point, no one really knows what the encyclical will say, although there are educated guesses. (See Fr. Robert Sirico’s discussion on the encyclical here.) Peter Smith at the Pittsburgh Post-Gazette did a “round-up” of various Vatican watchers, officials...
Explainer: What You Should Know About the Patriot Act and the Freedom Act
Why is the Patriot Act back in the news? Last night three key provisions of the law were allowed to expire (at least temporarily) after Senator Rand Paul (R-KY) blocked an extension of the program during a Sunday session of the Senate. What is the Patriot Act? The official title of the law is the USA Patriot Act of 2001, an acronym for “Uniting and Strengthening America by Providing Appropriate ToolsRequired to Intercept and Obstruct Terrorism.” The 320-page law, signed...
What Would The Founders Do About Welfare?
es to mind when you think of poverty policies prior to FDR’s New Deal? For many people, the idea of pre-1940s welfare is likely to resemble something out of a Charles Dickens’ novel: destitute adults in the poorhouse and hungry children (usually orphans) eating a bowl of gruel. That impression is likely what we have about welfare in America during the era of the Founding Fathers. But is it accurate? “The left often claims the Founders were indifferent to the...
Explainer: Religious Liberty and the Abercrombie Hijab Case
In the case of Equal Employment Opportunity Commission v. Abercrombie & Fitch Stores, Inc., the U.S. Supreme Court ruled on Monday that employers must offer a reasonable modation for an employee’s religious practices. Here is what you should know about that case. What was the issue that sparked the lawsuit? Samantha Elauf, a 17-year-old Muslim girl from Tulsa, Oklahoma, applied for a job at Abercrombie, a preppy clothing retailer, in 2008. After being interviewed by Heather Cooke, the store’s assistant...
Reflecting On The Work Of Michael Novak: Charity, Civil Society, Free Markets
Today’s issue of Public Discourse offers a reflection on the life and work of Michael Novak. It would not be an exaggeration to say Novak is a towering figure in the world of free market economics. Author Nathaniel Peters says that while Novak has had his critics, the question that lies at the heart of all Novak’s work is this: “How do we get people out of poverty?” What economic systems are most conducive to allowing people to exercise their...
EcoLinks 06.01.15
In the spirit of PowerLinks, we’ll be adding a regular roundup on news concerning Pope Francis’ ing encyclical on the environment and, more broadly, religious witness on environmental stewardship outside the Roman Catholic Church. This may be a daily PowerBlog feature, or you may see it less frequently depending on the volume of news mentary on the subject. If you haven’t got to it yet, make sure you watch Rev. Robert A. Sirico’s mentary on the encyclical, which was posted...
How an Ex-Convict Learned to Worship Through His Work
Alfonso was looking for a “fast life,” and as a result, he got mixed up in illegal drugs and landed in prison. For many, that kind of thingmight signal the beginning of a patternor slowlydefineand distort one’s identity or destiny. But for Alfonso, it was a wake-up call. While in prison, he began to realize who he really was, and more importantly, whose he really was. He began to understand that God created him to be a gift-giver, and that...
Father Crosby and ‘Losing Money on Purpose’
Shareholder resolutions intended to force Exxon Mobil Corp. and Chevron Corp. to adopt greenhouse gas reduction goals and name environmental experts (i.e. any scientist who believes human activity causes climate change) to their respective board of directors were defeated last week. Not only were they defeated, they were crushed. Chevron shareholders mustered only 9 percent support for GHG reductions and 20 percent for the environmentalist board member. Eighty percent of ExxonMobil shareholders rejected the additional board member, and only 10...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved