Horst Koehler, former president of the Federal Republic of Germany, recently spoke on lessons from the recent financial crisis.

This lecture, titled “The Whole is at Stake,” which Koehler delivered to a full audience at Hesburgh Library’s Carey Auditorium, was his first public address outside of Germany since his 2010 resignation from the presidency.  Koehler resigned in the wake of criticism for making comments which linked German military involvement with economic gains.

Koehler, who is also former managing director of the International Monetary Fund (IMF), affirmed the role and competence of the public in confronting global challenges.

“As consumers and voters, as active citizens, we have to play our part in the decision making process,” he stated.  “When it comes to the whole picture, the global climate, the global population, global hunger, the global financial crisis, we all know and understand enough.”

Furthermore, Koehler said that one does not need to have an in-depth understanding of the financial industry “to know that what happened in that sector was not right.”  Noting its harmony with Catholic social teaching, the former president offered the social market economy, which is practiced in Germany, as a promising tool for the future success of the global market.

Koehler said responsibility for the causes of the crisis clearly lies with the United States and Europe.  Koehler argued that western democracies must live within their means and criticized attempts at growth through accumulation of government debt.  Additionally, he said that financial systems must create real wealth by encouraging saving and lending.

Koehler also presented 5 key areas for reform as outlined in the report REFORM OF THE INTERNATIONAL MONETARY SYSTEM: A COOPERATIVE APPROACH FOR THE TWENTY FIRST CENTURY by the Palais-Royal Initiative, an international working group of experts of which included Koehler.  In addition to discussing the coordination and surveyance of national economic and financial policies, exchange rates, global liquidity, special drawing rights and governance of the IMF were discussed.

Koehler praised the system of social partnership in Germany and credited it with the current strength of the German economy.  In this system, employers and employees engage in a dialogue to develop guidelines that balance the various aspects of their relationship, creating respect and cooperation between the two parties.

The former president also stressed the importance of trust across the globe and addressed how to rebuild it.  Quoting German Philosopher Hans Jonas, Koehler asserted that we must ensure that our actions are in line with the sustainability of human life.

“I believe that the more of us, young people, students of you who do that in grassroots initiatives and political parties, in internet fora and in your own workplace, the greater the opportunities around the world will be for creating a culture which is [in] keeping with the best spirit of western thinking, thinking of freedom and responsibility and this is to give and demand reasons for whatever you do and ask for,” he said.

Turning to environmental sustainability, Koehler encouraged analysis of one’s own life and stated that we can all make small changes to protect our world without great sacrifice.  He said that we should aim for sustainable development and not sustainable growth, stating that quality of life, rather than a western way of life, should be our goal, due to the high consumption and high waste of western lifestyles.

The lecture was organized and sponsored by the Nanovic Institute for European Studies and the Notre Dame Institute for Advanced Study. Koehler delivered another talk entitled, “Understanding Africa, A View from Europe” the following day, and his wife, Eva Koehler, also gave an informal talk on rare diseases to students and faculty of the Notre Dame Center for Rare and Neglected Diseases on September 30.

Joe Mackel is a junior biology major who has had “Piano Man” stuck in his head for 8 weeks and was surprised by joy at the addition of spinach to the SDH omelet bar. Contact Joe at jmackel@nd.edu.