... the real meaning and purpose of "hierarchy", from Salt of the Earth: The Church at the End of the Millennium, by Joseph Cardinal Ratzinger, an Interview with Peter Seewald (Ignatius Press, 1997):
We Are the People of God
The term "people of God" is understood today as the idea of an autonomy vis-à-vis the official Church. The motto is "we are the people", and what the people says has to be done. On the other hand, there is also the expression "vox populi, vox Dei". How do you understand this term?
If we are theologians and believers, we listen first to what the Bible says. In other words, we ourselves can't invent the major concepts: "Who is God?" "What is the Church?" "grace", and so forth. The gift of faith consists precisely in the fact that there is a prior given. The term "people of God" is a biblical one. The biblical use is thus also normative for how we might use it. It is first and essentially an Old Testament term; the term "people" comes long before the era of nations and is connected more with the clan, with the family.
Above all it is a relational term. More recent exegesis has made this very clear. Israel is not the people of God when it acts simply as a political nation. It becomes the people of God by turning to God. It is the people of God only in relation, in turning to God, and in Israel turning to God consists in submission to the Torah. In this sense, the idea of "people of God" in the Old Testament includes, first, the election of Israel by God, who chooses it for no merit of its own, despite the fact that it is not a great or significant people but one of the smallest of the peoples, who chooses it out of love and thus bestows his love upon it. Second, it includes the acceptance of this love, and concretely this means submission to the Torah. Only in this submission, which places Israel in relation to God, is it the people of God.
In the New Testament, the concept "people of God" (with perhaps one or two exceptions) refers only to Israel, that is, to the people of the Old Covenant. It is not a concept that applies directly to the Church. However, the Church is understood as the continuation of Israel, although Christians don't descend directly from Abraham and thus actually don't belong to this people. They enter into it, says the New Testament, by their descent from Christ and thereby also become children of Abraham. Thus, whoever belongs to Christ belongs to the people of God. One could say that the term "Torah" is replaced by the person of Christ, and, in this sense, the "people of God" category, though not applied directly to the new people, is tied to communion with Christ and to living like Christ and with Christ, or, as Saint Paul says, "hav[ing] the mind of Christ" (Phil 2:5). Paul goes on to describe the "mind of Christ" with the words: "He became obedient unto death on the cross." Only when we understand the term "people of God" in its biblical usage do we use it in a Christian way. Everything else is an extra-Christian construction that misses the real core and is, in my opinion, also a product of arrogance. Which of us can say that we are the people of God, while the others perhaps are not.