24 The world that Paul VI had before him — even though society had already evolved to such an extent that he could speak of social issues in global terms — was still far less integrated than today's world. Economic activity and the political process were both largely conducted within the same geographical area, and could therefore feed off one another. Production took place predominantly within national boundaries, and financial investments had somewhat limited circulation outside the country, so that the politics of many States could still determine the priorities of the economy and to some degree govern its performance using the instruments at their disposal. Hence Populorum Progressio assigned a central, albeit not exclusive, role to “public authorities” . In our own day, the State finds itself having to address the limitations to its sovereignty imposed by the new context of international trade and finance, which is characterized by increasing mobility both of financial capital and means of production, material and immaterial. This new context has altered the political power of States. Today, as we take to heart the lessons of the current economic crisis, which sees the State's public authorities directly involved in correcting errors and malfunctions, it seems more realistic to re-evaluate their role and their powers, which need to be prudently reviewed and remodelled so as to enable them, perhaps through new forms of engagement, to address the challenges of today's world. Once the role of public authorities has been more clearly defined, one could foresee an increase in the new forms of political participation, nationally and internationally, that have come about through the activity of organizations operating in civil society; in this way it is to be hoped that the citizens' interest and participation in the res publica will become more deeply rooted.
Source: Caritas in Veritate (Vatican.va)