Instead of trusting a biased source like Reuters to give you the scoop on the Encyclical, you should read it for yourself:
http://www.vatican.va/holy_father/benedict_xvi/encyclicals/documents/hf_ben-xvi_enc_20090629_caritas-in-veritate_en.html
Here are some quotes:
"Man does not develop through his own powers, nor can development simply be handed to him. In the course of history, it was often maintained that the creation of institutions was sufficient to guarantee the fulfilment of humanity's right to development. Unfortunately, too much confidence was placed in those institutions, as if they were able to deliver the desired objective automatically. In reality, institutions by themselves are not enough, because integral human development is primarily a vocation, and therefore it involves a free assumption of responsibility in solidarity on the part of everyone. Moreover, such development requires a transcendent vision of the person, it needs God: without him, development is either denied, or entrusted exclusively to man, who falls into the trap of thinking he can bring about his own salvation, and ends up promoting a dehumanized form of development." (11)
"The Church forcefully maintains this link between life ethics and social ethics, fully aware that 'a society lacks solid foundations when, on the one hand, it asserts values such as the dignity of the person, justice and peace, but then, on the other hand, radically acts to the contrary by allowing or tolerating a variety of ways in which human life is devalued and violated, especially where it is weak or marginalized.'" (15)
"A vocation is a call that requires a free and responsible answer. Integral human development presupposes the responsible freedom of the individual and of peoples: no structure can guarantee this development over and above human responsibility. The “types of messianism which give promises but create illusions”[38] always build their case on a denial of the transcendent dimension of development, in the conviction that it lies entirely at their disposal. This false security becomes a weakness, because it involves reducing man to subservience, to a mere means for development, while the humility of those who accept a vocation is transformed into true autonomy, because it sets them free." (17) [
Note: this is a condemnation of atheistic socialism.]
"...It must be acknowledged that this same economic growth has been and continues to be weighed down by malfunctions and dramatic problems, highlighted even further by the current crisis. This presents us with choices that cannot be postponed concerning nothing less than the destiny of man, who, moreover, cannot prescind from his nature. The technical forces in play, the global interrelations, the damaging effects on the real economy of badly managed and largely speculative financial dealing, large-scale migration of peoples, often provoked by some particular circumstance and then given insufficient attention, the unregulated exploitation of the earth's resources: all this leads us today to reflect on the measures that would be necessary to provide a solution to problems that are not only new in comparison to those addressed by Pope Paul VI, but also, and above all, of decisive impact upon the present and future good of humanity. (21)
"Corruption and illegality are unfortunately evident in the conduct of the economic and political class in rich countries, both old and new, as well as in poor ones. Among those who sometimes fail to respect the human rights of workers are large multinational companies as well as local producers. International aid has often been diverted from its proper ends, through irresponsible actions both within the chain of donors and within that of the beneficiaries." (22)
"Openness to life is at the centre of true development. When a society moves towards the denial or suppression of life, it ends up no longer finding the necessary motivation and energy to strive for man's true good. If personal and social sensitivity towards the acceptance of a new life is lost, then other forms of acceptance that are valuable for society also wither away[67]. The acceptance of life strengthens moral fibre and makes people capable of mutual help. By cultivating openness to life, wealthy peoples can better understand the needs of poor ones, they can avoid employing huge economic and intellectual resources to satisfy the selfish desires of their own citizens, and instead, they can promote virtuous action within the perspective of production that is morally sound and marked by solidarity, respecting the fundamental right to life of every people and every individual." (28)
"When the State promotes, teaches, or actually imposes forms of practical atheism, it deprives its citizens of the moral and spiritual strength that is indispensable for attaining integral human development and it impedes them from moving forward with renewed dynamism as they strive to offer a more generous human response to divine love[71]. In the context of cultural, commercial or political relations, it also sometimes happens that economically developed or emerging countries export this reductive vision of the person and his destiny to poor countries. This is the damage that “superdevelopment”[72] causes to authentic development when it is accompanied by “moral underdevelopment”[73]." (29)
"The demands of love do not contradict those of reason. Human knowledge is insufficient and the conclusions of science cannot indicate by themselves the path towards integral human development. There is always a need to push further ahead: this is what is required by charity in truth[76]. Going beyond, however, never means prescinding from the conclusions of reason, nor contradicting its results. Intelligence and love are not in separate compartments: love is rich in intelligence and intelligence is full of love." (30)
There's a lot more in there, but this post is long enough already.
Suffice it to say that this is not an encyclical that should be cherry-picked. It is wide-ranging and addresses a ton of issues.