The past week has seen the current incumbent of an oft derided and ridiculed religious establishment charm the international media and his flock through showmanship and humanity.
The Pope’s visit to Brazil, his first overseas trip since his appointment in March, was a spectacular occasion that saw streets and beaches fit to burst, images of which were broadcast around the world. The indications are that Pope Francis (and his PR team) are well aware of the opportunity they have to craft a new name and relevance for the Catholic Church in a modern age.
The Church of England (CofE) has long grappled with the same problem: it is the official religion of England, but falling attendance numbers and general apathy of the UK population towards the Church has seen its importance to life slide in what should be its most concentrated Anglican constituency.
The ageing populations of its parishioners, set against the rise of religions imported over the last 50 years (including Islam), has left the CofE adrift in British society. A YouGov poll published recently said that 58% of young people in the UK view religion as “completely irrelevant.”
In this context, the appointment of Justin Welby to the position of Archbishop of Canterbury, leader of the CofE, was seen at the time as a radical move. Welby originally worked in the energy sector for 11 years before moving into the Church, being ordained in 1992, and had only been appointed Bishop of Durham in 2011. In church terms, this is a meteoric rise, probably aided by his links to Holy Trinity Brompton (HTB), known for its evangelical approach to the Anglican faith.
Welby’s appointment was announced in November 2012, but he was eventually enthroned as Archbishop of Canterbury on March 21 eight days after Pope Francis was elected. The two religious leaders have a lot in common: they are both considered to be outsiders, to have been the surprise candidates for their jobs and both are tasked with making their respective religions more relevant in today’s world.
While Pope Francis woos millions across the world with an international brand of leadership not seen by the Catholic Church in generations, the Archbishop of Canterbury (or ‘Archbishop Justin’, as the CofE website refers to him) has so far focused on the real problems facing the UK. He has called for opposition to “lynch mobs” against bankers involved in the financial crisis, and pushed ahead with plans for women bishops in the Church. Welby is at work on relevance.
However, last week the Archbishop made a bold step and directly attacked loan companies, specifically Wonga, stating that the Church’s aim would not be to push for legislation against these companies but to “compete them out of existence.”
Welby stated that this would be achieved through the implementation of credit unions operating out of churches across the country. Speaking to the media on July 24, the Archbishop stated that “We’ve got to have credit unions that are both engaged in their communities and much more professional, and people have got to know about them. It’s a decade-long process.”
In terms of relevance to the population, this could not be a more potent issue. Loan companies have always existed, but the economic climate that has developed following the 2008 financial crisis and recession has seen the emergence of new and larger companies.
A notable growth area is payday loans, in which loan companies offer advances on monthly paycheques but with a painful bite. The Annual Payment Rates (APR) of the top ten payday loan companies in the UK range from a low of 1,734% to 5,853%; the latter rate is offered by Wonga.
Although the companies involved are quick to point out that the rate is representative rather than actual, as there are no payday loans for a year, the impact of these loans on the lives of the financially disadvantaged cannot be denied.
The hold that these companies have in society can be seen through their permeation in many facets of everyday life: from advertising on public transport to the sponsorship of football teams. Wonga and the rest represent the financial vice that the UK is still in, and provide a sobering counterbalance to any and all claims of recovery.
Therefore, the Archbishop chose a key target and launched an incisive strike, presenting the CofE’s credit unions and their suggested APRs of 70-80% as a viable long-term alternative. The media response was one of surprise giving way to respect. The Church was seen as striking a blow for the poor.
It was unfortunate, then, that Welby failed to do due diligence on his plans and enquire into the CofE’s own investments through the Church’s Ethical Investment Advisory Group which include a £75,000 indirect stake in Wonga.
Though the investment was made through a venture capital firm, Accel Partners, and only represents a small percentage of the Church’s total investments (which soar to approximately £5.5 billion, according to media reports), the July 25 revelation was “very embarrassing”, as Welby admitted in a radio interview with the BBC. That embarrassment was exacerbated by the Archbishop’s awkward statements in defence of Wonga: “I don’t support what they do, but I recognize that they are very professional.”
Wonga itself reacted with good grace to the situation, at least publicly. Errol Damelin, the company’s founder and CEO, stated on July 26 “that ‘the Archbishop is an exceptional individual, with our discussions ranging from the future of banking and financial services to the emerging digital society. On his ideas for competing with us, Wonga welcomes competition from any quarter that gives the consumer greater choice in effectively managing their financial affairs.” When pressed further, Wonga directed this journalist to its website, which lists its teasingly titled “10 Commitments” to customers.
The net result of the past week would therefore appear to be cut and dried. The affair apparently shows a new idealistic leader who is out of step with the realities of his organization, which saw returns of its endowment of an inflation-beating 9.7% in 2012, engaging in “kumbayah capitalism,” as The Telegraph put it. Reports at the end of the week suggested Welby’s “fury” at the revelations, which undermined a truly progressive stance and a move for relevance.
However, the Archbishop’s immediate response, admitting to error while insisting that the credit unions would go ahead, has also garnered support. As Welby said on July 29 during a sermon given to religious group New Wine, “when the church is real, people pay attention. The change has to start with us. We have to be transparent, accountable and self-aware.”
For a religious group that is isolated from the majority of the population and desperately seeking relevance, this is a good place to start.
@archiewhit
First published in the Buenos Aires Herald on July 31, 2013.
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