G20

Following last week’s G20 summit there was agreement that the London summit was useful, but did not have enough impact on global economics. The strengthening of the IMF and a plan to boost trade finance is welcome. Unsurprisingly, policies for fixing the world’s banking system were not agreed, and until this is done, the economic downturn will not be resolved.

In my opinion, one of the causes of the banking crisis is the erosion of guiding

moral principles, vital in maintaining balance in economics and finance. Although fiscal stimulus and fixing the banking system so that it can provide credit are the immediate challenges, the world will remain vulnerable to similar downturns until guiding moral principles are restored. These go beyond “just making money” and “making money with no harm” towards “doing good while making money”.

For those responsible for investing capital this means monitoring the drivers of global change, deciding on the right direction and then navigating on the right side of change. It requires a sense of responsibility for society as a whole, respecting environmental capacity and the right of the unborn to inherit a better world. It means backing healthy, sustainable trends. It would include discouraging protectionism, enabling poor counties to trade their way to prosperity.

I am convinced that a consequence of the downturn will be increasing adoption of “Doing good while making money”, led by endowment funds and “high net worth” individuals, and followed later by mainstream banks and investors. The Three Faiths Forum, together with 3iG: International Interfaith Investment Group, CRU Investment Management, and the Fortune Group, is organising a major investment conference to be held at the London Central Mosque in June where leading religious and financial leaders will seek to elaborate guiding principles for responsible investing.

The conference, entitled “Faith in Capitalism”, is open by invitation and those interested in attending should contact us

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