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War & peace

21 September 2023

4 min read

How to shape peace today

On International Day of Peace, Christine Schliesser counts today’s conflicts, deliberately imagines peace, and recalls an old song.

Christine Schliesser

Christine Schliesser lectures in Theology and Ethics at Zurich University, and is a scientific collaborator with the Center for Faith & Society at Fribourg University.

a dirt barricade blocks a cross roads, behind which stands a roadside cross

A crossroads in Ukraine.

Jonny Gios on Unsplash.

One in four. This is the number of people living in conflict-affected areas on this planet. A record 100 million people have been forcibly displaced worldwide. Psychologists tell us that we can only process numbers in the two-digit realm in a meaningful way. Any number larger than that eclipses our capacities to attach a face, a story, an existence to that number. 100,000,000 is simply too large to picture. So imagine the entire UK population on the run, plus the population of Australia, plus that of Hongkong. In 2022, 16,988 civilians were killed in armed conflicts, which is a 53 per cent increase compared to the year before. And as you read these lines, there are 32 ongoing violent conflicts in the world, including drug wars, terrorist insurgencies, ethnic conflict, and civil wars.

Just as we are overwhelmed with trying to grasp the extent of violence, conflict and war, we are equally at loss with imagining peace. When in 1981 the United Nations General Assembly established the International Day of Peace (IDP), it was recognizing exactly this by emphasizing that “it is in the minds of men that the defences of peace must be constructed”. Constructing, envisioning, imagining. The tough world of realpolitik, however, seems to leave no place for such kind of romantic games of mind. Helmut Schmidt, former chancellor of Germany, made no attempt to hide his scorn for the imaginary, “Let him who has visions consult a doctor”. This shows a remarkable misconception of reality, however. French philosopher Henri Bergson points to the power of imagination, for to invent “gives being to what did not exist; it might never have happened”. Perceiving and transforming reality thus become mutually supportive forces. And the numbers above make it clear that peace is not the default option of reality, but needs to be envisioned. “Inventing peace”, as film director Wim Wenders calls this conscious effort.

Restoring momentum to the SDGs is a crucial sign of life for global cooperation – and for peace.

So peace begins in our minds, but it cannot remain there. Just as love yearns to be embodied, peace seeks concrete shape. And just as the shape of love is acts of kindness, the shape of peace is acts of justice. In the Jewish and Christian tradition, the term shalom is used to convey this kind of inclusive vision of peace and justice. This year’s International Day of Peace (IDP) coincides with the UN General Assembly. When conceived 78 years ago, a vital part of the United Nations’ raison d'être was the common vision for peace. The experiences of the horrors of two world wars totalling more than 76 million people dead – another one of these unfathomable numbers –united the nations of this world in their quest for peace. Yet the shape of peace is justice. So three years after the conception of the UN, the Universal Declaration of Human Rights was born, celebrating its 75th birthday this year.

As the world leaders currently convene for the UN General Assembly, however, the nations assembled there will be anything but united. The demand and supply of international collaboration seem grossly disproportionate as multiple challenges, including geopolitical, ecological and economic crises, eat away on multilateral ties. This year’s IDP also coincides with the Sustainable Development Goals (SDG) summit, marking the mid-point milestone of the goals.

Endorsed in 2015, the 17 SDGs unfold the vision of a better world, including the eradication of poverty, advancing education and gender equality and environmental stewardship. If justice is the currency of peace, it seems only appropriate that this year’s IDP’s theme is ‘Actions for Peace: Our Ambition for the #GlobalGoals’. “Peace is needed today more than ever”, says UN Secretary-General António Guterres. This, in turn, means that the vision spelt out by the SDGs is needed today more than ever. It is a misunderstanding to conceive of the SDGs as an add-on for better times. Rather, restoring momentum to the SDGs is, as Stewart Patrick and Minh-Thu Pham from the Carnegie Foundation point out, a crucial sign of life for global cooperation – and for peace, one may add.

To dispel the ever-prevalent “myth of redemptive violence” as the still predominant paradigm, we need exactly this kind of active imagination.

One would think that the scale of the challenges spelt out by the 17 SDGs requires the joint collaboration of all actors. Yet one factor that is strikingly absent in this equation is religion. This is all the more remarkable given the fact that 85 per cent of this planet’s population profess adherence to a faith tradition, according to the World Population Review 2022. This makes faith communities the largest transnational civil society actors. Now religion – every religion – is inherently ambivalent. But this means that each religion can not only be used to incite hatred and violence, but also contains potent resources for peace and reconciliation.

Many of the SDGs including peace, justice, equality and care of creation to name but a few align with core concerns of, for example, the Christian faith tradition. Just imagine the potential for transformational change towards peace and justice if faith-based actors worked together, among each other and with secular actors! To dispel the ever-prevalent “myth of redemptive violence” (Walter Wink) as the still predominant paradigm, we need exactly this kind of active imagination. Or as the poet of an ancient song once put it:

“Kindness and truth shall meet; justice and peace shall kiss”.

For more information on the role of religion in the SDGs, read the Open Access book series “Religion Matters. On the Significance of Religion for Global Issues” (Routledge), edited by Christine Schliesser et al.

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Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence Fletcher is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.