Four Types of Investment

Why economics?  There is a relationship between the words economics and ecumenism.  The latter derives from the Greek oikoumene which relates to the reconciliation of all things to God.  The root of the word economics means good housekeeping.  It is about how we act as stewards to creation; the creation which needs to be reconciled to God.

Churches together need to take an interest in economics because it is through the economy that communities prosper or fail.  It is not enough that churches simply help the victims, they must also learn to speak truth to power.  To do this we need not only to be critical of economic systems but to have some alternatives.  Over the next few days I will open up this subject.

Today, I want to focus upon investment.  In future posts I will look at each of the following in more detail.  Any investment is a relationship.  The quality of that relationship is crucial from a Christian perspective.  Each of the following have pros and cons as approaches and we need to understand how they work.

1. The approach with least relationship is the gift.  This may come as a surprise to some Christians and it has to be said the gift can be an extremely positive element of relationships.  But the gift in itself does not lead to a sustained relationship.  Once given the act is over.  The difficulties emerge when we look at the nature of grants in communities.
2. The second approach is through loans.  Loans with interest are a real problem in many religious traditions but today they are seen as the lifeblood of the formal economy. 
3. Next is equity; this is where someone invests in another person's enterprise and shares the risk.  This can be a positive relationship although misused it has potential for great damage.
4. Finally, mutual relationships where the enterprise is held in common.  This requires sustained relationships over a significant period.  This is a great strength although some would argue also a significant weakness.

Whilst writing these out I was struck by certain similarities with the four types of conversation I described a few days ago.  I will reflect upon this further.