resolution

Privatization

2016 Book of Resolutions, #4058

“The earth and its fullness are the Lord’s” (1 Corinthians 10:26 NRSV). The Lord’s people have been given enough-an abundance of all of the things we need for life.

“We believe [that] governments have the responsibility, in the pursuit of justice and order under law, to provide procedures that protect the rights of the whole society as well as those of private ownership” (Social Principles, ¶ 163A.

One of our values as Christians is to provide an economy that serves God’s vision of abundance to all. Ecclesiastes 3:22 states, “So I saw that there is nothing better than that all should enjoy their work, for that Is their lot” (NRSV); Luke 10:7 and 1 Timothy 5:18 state “the laborer deserves to be paid” (NRSV). And it is written in Matthew 20:8, “Call the laborers and give them their pay” (NRSV).

Jesus singled out the poor, the sick, and the imprisoned for special care and made them the special responsibility of the faithful. Under many privatization schemes, responsibility by the public has been abandoned to private enterprise. Our responsibility to the sick and poor and imprisoned has been left to the devices of private profit. Privatized prisons, nursing homes, hospitals, welfare programs, and other social services have sometimes been less dedicated to service and rehabilitation than to cutting service and increasing profits (Resolution 4052, “Economic Justice for a New Millennium,” The Book of Resolutions of the United Methodist Church, 2008).

“We are called to see that all life has a sufficient share of the resources of nature.” (Resolution 1026, “Environmental Steward- ship”: Right to Abundant and Clean Water, Book of Resolutions, 2008).

Introduction

Corporate interests are rushing to privatize many of the resources of the earth—water, energy, education, natural plants, human and animal genes, cultures and public services such as social security, health care and public safety. Everything from prescription drugs to prisons to welfare programs is considered fair game for corporate profit-making. Wall Street, according to the Economic Policy Institute, is fighting hard for a privatized Social Security system because it would reap an estimated 240 billion dollars in fees for managing these funds during the first twelve years of such a system.

Private Control

Supporters of privatization accuse government of inefficiency and claim that, if allowed to make a profit, these same corporations could control resources more effectively and efficiently, saving public money and delivering better services. The expectation of privatization is that government would continue to collect taxes from the citizens and then provide that tax money to corporate CEOs who would manage salaries, resources, and functions better. Those who favor privatization argue that they would earn a profit, benefit the economy, and be less encumbered by inefficient bureaucracy and public controls.

The World Bank is actively subsidizing the privatization of public resources worldwide. The World Trade Organization (WTO) has been quietly renegotiating and expanding the General Agreement on Trade in Services (GATS). The range of services on the negotiating table is vast, covering such vital areas as water and energy, banking, communications and retail services. Eighty additional countries have been targeted by the European Union for this invasion by foreign corporations. If governments refuse to cooperate, they may be faced with world trade disputes claiming “barriers to free trade.”

Public Control

Opponents of privatization point to corporate abuses and criminality in the management of pensions, energy, and communications systems.

Those who favor continued public control and regulation of these common resources and services argue that, when private forces take control, there is less accountability to the citizens. They claim that ever-growing profits are the primary interest of the corporations. They also note that worker salaries and working conditions are usually forfeited in the name of efficiency and private profits. Loss of well-paid public sector jobs is a burden to society in many ways, including reduced tax revenues and increasing the need for social welfare programs.

People worldwide are challenging the privatization of commonly held resources such as native seeds and plants under intellectual property rules established under international financial institutions such as the WTO. Many are calling for public control of resources such as water and the drugs necessary for eradicating some of the world’s most devastating diseases.

Discernment

There may be instances where privatization is appropriate. However, the role of Christians requires us to honor the earth’s resources and to protect our God-given common heritage. The public must be vigilant to regulate and control the privatization and the profiteering of public resources.

New Laws to Protect Our Common Property

We have rules that protect our private property and our personal property. We also need strong, ethical governments and new laws to protect our common property—the resources that God has asked us to be stewards of and the common services that constitute the basis of human dignity, protected by human rights. Responsive governments must be strengthened and supported to provide protection for all, particularly in the most exploited and impoverished nations, but also those marginalized communities in wealthy nations. These are necessary as preconditions for all persons to experience the abundant life provided by God.

There are efforts by the international financial institutions to impose new rules that increase the private invasion of common property. The sovereignty of underdeveloped countries has been undermined by Rule 11 of NAFTA and will be further undermined by other free trade agreements such as the proposed Trans-Pacific Partnership (TPP) trade agreement. These trade rules strengthen the ability of private interests to force local communities to allow their free trade operations and privatization of common resources without effective regulation. Under Rule 11, if the governments move to regulate the activities of the corporations on behalf of their own workers or their own environment, they face multi- million dollar penalties in private trade courts unattended and unregulated by the public. These rules are increasing the poverty and devastation of communities worldwide.

The Need for Effective Governments

Effective and democratic governments worldwide must be strengthened in order to function on behalf of the interest of their citizens. Our common resources do not belong to government or market, but responsible and effective government is essential for protecting those public properties. Privatization of common property rights should be viewed as a “form of taking” from the people. For decades a body of international rules has been developing led by corporations that would challenge the rights of governments to protect their workers and their natural resources from corporate exploitation.

Call to Action

The United Methodist Church and its predecessors have always had a history of public witness on matters of economic justice. Faced with protecting and securing the common resources and services needed by all humanity, the General Conference calls upon:

The General Board of Global Ministries to develop an educational program on the issues posed by privatization worldwide and join in challenging privatization where it endangers public interest.
The boards and agencies of The United Methodist Church to create and disseminate materials explaining proposed trade agreements and oppose them when they violate United Methodist ideals supporting a just economy.
The General Board of Global Ministries and the General Board of Church and Society to continue to invigorate efforts to acquire national publicly-provided health care for everyone in the United States and that the issue of worldwide health care be put on the agenda for increased support.
Members of The United Methodist Church to urge our governments to challenge and change the International Monetary Fund (IMF), World Bank, and WTO rules supporting massive privatization.
The United Methodist Church to question the IMF investment of billions of public dollars into support for the efforts of private corporations to take over public services and public resources in countries that are impoverished.
The General Board of Global Ministries and the General Board of Church and Society to study ways of supporting world trade rules that would protect our commons from the growing trend of “takings” by private entrepreneurs.
The General Board of Global Ministries and the General Board of Church and Society to lead an effort to discern the societal effects of privatized services and resources on marginalized communities and nations, with special attention paid to both the beneficiaries of such privatization and those individuals and groups whose quality of life is dramatically diminished. Focusing on the violence in the Democratic Republic of the Congo over resource management or the water crisis in Detroit, Michigan, would provide important case studies.
The General Board of Church and Society to provide studies and actions on the importance of responsible government and ways to enact good governance.
United Methodists to study and act in support of our local governments by insisting that the Federal budget provide for adequate tax money for running public services and regulating private service initiatives for the benefit of all.

ADOPTED 2004
READOPTED 2008
AMENDED AND READOPTED 2016
RESOLUTION #4058, 2008, 2012 BOOK OF RESOLUTIONS
RESOLUTION #361, 2004 BOOK OF RESOLUTIONS

See Social Principles, ¶ 163I

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