.png)
Let me explain how it works.
Under a covenant I am obliged to meet other people’s needs and these take precedence over my wants.
These needs include a home and a meaningful job. A meaningful job also enables me to “give” to others, another fundamental human need.
Covenant is based on the understanding that we are all trustees in this agreement, holding assets communally in trust for others. As trustees we have legal title, but not beneficial ownership - the beneficiary is society.
The trusts that hold these assets are civic, can be legislated for nationally, but for the benefit of local communities.
They operate with an asset lock to prevent extraction by shareholders, and ensure strong accountability through civic assemblies.
Naturally, civic trusts compete with one another but for the common good; they combine the efficiency of the market with the security of public institutions.
And they are accountable to all those affected by their decisions, forming a network within which the integrity of the person, the local community and the stewardship of nature are all held together by mutual obligations.
The contractual model, including unlimited lending, ultimately leads to inflation, which in turn leads to poverty.
Our current crisis could not underline this more heavily. Covenant, in contrast, pushes for the elimination of inflation by conscious cooperation.