TO ALL CONFRERES OF THE SOCIETY OF THE DIVINE WORD

in re: The Global Financial Crisis and the SVD

Dear Confreres,

We have all heard and read about the global financial crisis that has created panic and fear among the rich and the poor of the world. In a special meeting held on 14 October 2008, the general council and other officials of the generalate reflected on this crisis and the impact it could have on the Society. At that meeting, it was decided to write this circular letter to share with you our reflections and conclusions.

We are hopeful that the concerted efforts of governments and businesses will soften the impact of the crisis and eventually lead to a resurgence of the global financial market. Nevertheless, the crisis has already led to a global economic downturn. And this has affected not only the investments of the Society (generalate, mission offices and individual provinces) but also the capacity of our benefactors to donate. All this affects the Society from both ends. On the one hand, there will be less funds at the generalate to distribute. On the other hand, the internal resources of our provinces/regions will be reduced. There is need all the more for wise and realistic financial planning.

We anticipate less funds at our disposal to distribute in 2009 and in the coming years. In view of this, for 2009, we ask you not to expect more than what we could afford to distribute in the previous year and to expect even less. We ask you specifically to take into account the following in your financial planning for 2009:

1. We foresee a suspension of subsidies for major capital outlays (Subsidy C in our distribution system, e.g., land purchase, building construction or renovations, purchase of expensive machineries, equipment, or vehicle);

2. We foresee a reduction of subsidies for ordinary operational and extraordinary operational needs (Subsidy A and Subsidy B in our distribution system).

While this letter applies particularly to provinces/regions receiving subsidy from the generalate, we believe that also the other provinces should try to reduce their expenses for ordinary, extraordinary and capital needs as an expression of solidarity not only with the less self-reliant SVD provinces/regions but also with the millions of poor people in the world.

This current crisis offers us a unique opportunity to reflect further on the question of financial self-reliance and the way we finance our mission. What does self-reliance really mean in view of the precariousness of financial investments? How essential is money to mission? What does it mean to achieve true financial self-reliance?

I write this letter while participating in the Synod of Bishops on the “Word of God in the life and mission of the Church”. During his reflection on Psalm 18 at the Midday Prayer which opened the work of the Synod on 06 October 2008, Pope Benedict XVI referred to the current financial crisis and said:

... the Word of God is the foundation of everything; it is the true reality. And to be realistic is to rely on this reality .... He who builds on sand only builds on visible and tangible things, on success, on career, on money. Apparently these are the true realities. But all this one day will vanish. We can see this now with the fall of two large banks: money disappears, it is nothing .... Only the Word of God is the foundation of all reality; it is as stable as the heavens and more than the heavens; it is reality.

Dear confreres, the heart and foundation of our life and mission is the Divine Word. Let us not allow fear to take hold of us. Let us believe and rely all t

he more in Divine Providence. At the same time, however, we need to do our share in bearing the pain and working our way through a difficult time. We trust that you will find a way to balance your budgets in these challenging times and will discern well which activities to scale down if necessary. May the Word of God help us in our discernment.

Fraternally in the Divine Word,

Antonio M. Pernia, SVD
Superior General