Tobin Taxes Update

February 2001

Date:  Sat, 17 Feb 01 14:21:15 -0800
From:  Ruthanne Cecil <cecilr@humboldt1.com>
(copied from the e-mail newsletter)
The Tobin Tax Initiative -- http://www.tobintax.org
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---HEADLINES--------
--1) Labor leaders support CTTs (including AFL-CIO, DGB, NUPGE)
--2) Prime Minister of India in support of Tobin-style taxes
--3) Country reports on CTT activism
--4) Letters to the editor
--5) Definition of Tobin Taxes......
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(1)  Labor unions...AFL-CIO and  German DGB: Yes to Tobin!

Press Release PM 025, January 30, 2001 www.dgb.de,   with translation by Peter Wahl

AFL/CIO and DGB in favour of stronger control of  international finance markets

The German Trade Union DGB and the American trade union AFL-CIO request the reform of the international finance markets. The control over the finance markets has to be recuperated said the president of AFL-CIO, John Sweeney, and the president of DGB, Dieter Schulte,  last Monday in Berlin. This is the only way to provide long term and productive investments and sustainable growth.

In the centre of the talks between DGB and AFL-CIO were economic  and socio-political questions and common activities for a socially equitable restructuring of globalisation. Monday evening, the trade  union representatives met chancellor Gerhard Schröder.

DGB and AFL-CIO criticised, that they were not allowed to participate in the discussion about the new international financial architecture. The "Forum for Financial Stability" which has been established by the G7, is supposed to present recommendations which had been elaborated only by governmental civil servants and representatives of business and banks. However, the trade unions request the establishment of a pluralistic and independent international commission, which should work out a report for an international regulatory frame.

For the stabilisation of the international finance system courageous steps are necessary, said Sweeney and Schulte. The trade unions request for stable exchange rates between Euro, Dollar and Yen, capital controls for short term flows and the taxation of currency transactions.

From the point of view of the two trade unions the World Trade Organisation (WTO), too, has to be reformed. Labour rights and aspects of environmental protection have to be addressed more in the global trade and investment system. This would not be an attempt to build a protectionist wall against the world economy

The Development Assistance Committee of the OECD should integrate into its eligibility criteria the core labour standards. First, fair international agreements would have to regulate labour standards, environmental protection and agriculture. Second, the procedures of the WTO should be reformed in a way, that there are more means for developing countries which are not capable to fulfil their tasks and to use their rights as members of the WTO.

(thanks to ATTAC newsletter #67, Sand in the Wheels, newsletter@attac.org)

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Canadian labor union support for Tobin-style taxes too.... (a short note....)

You might be interested in the National Union of Public and  General Employees Globalization Web Page.  It's at  http://www.nupge.ca/Globalization/globalization.html.

Bob Dale, NUPGE, Canada (National Union of Public and  General Employees)
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(2) India Prime Minister in Favor of a Tobin-Like Tax.

Indian Prime Minister Atal Behari Vajpayee has suggested the imposition of an international levy on capital flows between  developed countries and all capital repatriations from developing  countries, reports the Times of India.  The money he says can  then be credited to a Global Poverty Alleviation Fund.

Among other purposes the Fund could serve, said Vajpayee, would be: accelerated liquidation of all public external debts of low-income countries, framing of poverty alleviation programs targeted specifically at those who have lost their livelihoods in economic crises born out of reversal of external capital flows in developing countries, assistance in enhancement of skills and access to finance needed by the poor to compete effectively in the global economy.  The Fund could also help place technologies that save lives, increase  food output, and generate renewable energy for rural areas, for use by developing countries.

The suggestion for a Global Fund came on Wednesday during Vajpayee's inaugural address at the first Delhi Sustainable Development Summit 2001 organized by the Tata Energy Research Institute, notes the story. Global leaders, thinkers, and environmentalists participated in the summit.  Among those who also spoke during the inaugural session were  UNDP administrator Mark Malloch Brown, and Maurice Strong, president  of the UN University.

Vajpayee also said there is a need substantially to increase the resources of governments in developing countries to pursue developmental projects and programs aimed specifically at poverty eradication. Moreover, he said there was also a need for enhancement of the resources of bilateral and multilateral agencies. "This calls for a far higher level of political will in industrialized countries than is manifest today," he said.

"What we need is a comprehensive and holistic global strategy which involves the fullest mobilization of all our economic, social, cultural and technological resources," Vajpayee said, noting that a narrowly focused economic model can neither remove global poverty nor yield sustainable development.  Pointing to the global inequity measured in the World Bank's latest World Development Indicators, Vajpayee said a sixth of the world's population receives 78 percent of world income, while three-fifths of the world's population living in the poorest 61 countries receive only six per cent of the world's income.

The news comes as the Earth Times reports that economic inequality is growing faster everyday, says the World Institute for Development Economics Research (WIDER) of the UN University.  More and more people are becoming poor and the trend is likely to grow in the next decade, according to WIDER.

Information published in collaboration with Steve Tibbett, Senior Campaigner.

War on Want
- 37-39 Great Guildford Street; London SE1 0ES
website: www.waronwant.org
Phone: 020 7620 1111
Fax: 020 7261 9291
e-mail: stibbett@waronwant.org

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(3)  COUNTRY REPORTS .. a recap from Porto Alegre, by Robin Round

(NOTE:  Robin Round of Halifax Initiative, Canada, traveled to Brazil to attend the recent World Social Forum at Porto Alegre.  Here are excerpts from her report on what activist groups are doing on CTTs)

ARGENTINA   There are 4 ATTAC groups at the local level, one  based in a university. ATTAC wants more coherence on information  distribution in a range of languages. Groups active in Jubilee  movement, GMO groups, IMF/WB groups and trade unions are all  beginning discussions on the Tobin tax.

AUSTRIA  ATTAC has been set up within the trade union movement  and is working to expand membership.They got underway in November,  2000, and also address issues of taxation including tax havens.

BELGIUM.  Two houses of Parliament passed resolutions that will  lead to Belgium raising the currency transactions tax in the next  Presidency of the European Union, beginning July 2001. The Finance  Minister promises to start the discussion about a CTT on a European  level in the Eurogroup, the informal meetings of the Ministers of  Finance of the Eurozone. This is an important victory in the  European campaign, and congratulations to all who made it happen.

BRASIL  ATTAC works with trade unions and was active in the  Seattle mobilization. Ceci Jurua, a professor of public finance,  noted that the Tobin tax provides an opportunity to open the  debate on financial sector reform in a country destroyed by  financial turmoil and facing skyrocketting interest rates. ATTAC  Brasil is concerned that much of the information from ATTAC is  in French. They wish to connect with other groups in Latin  America to strategize and share information.

CANADA  Halifax Inititative and ATTAC-Québec are beginning  discussions on a joint campaign with the new Canadian Parliament  in hopes of fostering Canadian leadership on CTTs at various multilateral fora, including the UN Financing for Development.  Halifax Initiative hopes to host an international conference on  currency transactions taxes in the fall. The meeting will be for  NGOs, academics and Parliamentarians and will focus our discussions and debates on the questions associated with implementation. Halifax Initiative and War on Want (UK) are currently preparing separate  papers on implementation. In Quebec, ATTAC has a new group in Montreal  and is working on the upcoming FTAA meeting in Quebec City. The  implications on all our work on the Tobin tax of the pending  FTAA agreement are ominous. Total openness for investors means  that money can go where it wants and governments may be unable  to control it.

FINLAND  ATTAC Finland launched the week of January 15th, 2001.  There is a feeling that the dynamic is changing in Finland and public  support is now more likely. Heki Patomaki of NIGD is preparing a  response to the finance ministry report which stated that a Tobin tax was not feasible. NGOs remain confident of the support of the  Foreign Affairs Ministry and plan to work with them and civil  society to build the Finnish movement.

FRANCE  ATTAC France now has over 25,000 members.  ATTAC is  also working on the issue of tax havens and local issues  including public service provision, immigration and agriculture/  food security. As a result, Tobin taxes are one of many issues. ATTAC France will hold a large meeting in Paris in December to set  the agenda for national elections. They will be involved in both  Quebec City(FTAA) and Genoa (G7).

SWEDEN  ATTAC started at the beginning of the new year. Over 1,000 individuals participated in the first meeting. Meeting drew even  right wing media interest. Group has already begun to lobby the EU  Presidency (Sweden is in the presidency currently). (For more  information, see the article below)

URUGUAY  ATTAC Uruguay started in November, 2000 and has 450  members on its correspondence list. They will do a public  announcement on the rationale for supporting a Tobin tax and will  do it with the support of economists. A web page is under construction  with a goal of expanding the public debate and discussion on the tax.  There is a need for much more education on the issue. There is some  support among Parliamentarians as well as trade unions.

EUROPEAN PARLIAMENT The Intergroup of parliamentarians is  organizing a hearing on Tobin taxes in Brussels late March  to build support for re-introduction of a resolution. Economists  Rodney Schmidt(Canada) and Paul Bernd Spahn (Germany) will do the  briefing. Organizers hope to do a parallel meeting, a joint NGO  session to discuss strategy for the upcoming Belgian presidency.

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(4)  The Fantastic Story of ATTAC Sweden (Sverige)

Is this a Latin country? wondered Pierre Tartakowsky, secretary-general of Attac-France, when seeing the wild enthusiasm of young and old Swedes in Stockholm. Attac-Sverige was founded early January 2000, the same time Sweden took over the EU-chairmanship from France. The former event was reported as frontpage news, in editorials, radio interviews, debates and TV-programmes.

We started planning for this ten months ago, explains Aron Etzler (27), one of the initiators, who built his organization on 100 young enthusiasts.. In july Attac-France¹s president Bernard Cassen visited Sweden to help prepare the ground by speeches and press conferences. Cassen¹s visit was followed on several occasions by Attac-France¹s vice president Susan George. The whole time print media, radio -and TV gave wide coverage. During the Fall 20 local Attac-associations were founded. Bim Clinell wellknown author, debater and journalist informed about Attac followed by many others. Attac was  in focus...

But the curious, yet positive, attitude towards Attac was not shared by all In august the Christian Democratic leader, Rev. Alf Svensson, accused Attac-associations of "hooliganism and neonazism". The Swedish Employers¹ Association (SAF), the federations of Commerce and Industry, the neoliberal think tank Timbro coordinated their smear campaign against Attac, which was strongly defended by an important figure head Lutheran Archbishop K.G. Hammar.

Attac-Sverige¹s inaugural festivities started on January 6 in the  ABF House, which contains half a dozen large conference rooms. On this Saturday, 28 seminars were held by wellknown journalists, university professors, authors, researchers and other intellectuals. The atmosphere before the beginning at 10 a.m. was similar to an opening night on Broadway ! Attac had hoped for 500 people. When 1100 had paid the entrance fee, doors had to close because of fire regulations. Yet several hundreds still waited in the street in freezing wheather. A waiting list was circulated. When someone left the building room was made for people outside. A smashing success ! The same was true for Attac-France¹s Pierre Tartakowsky, who got strong ovations during his debate with Sweden¹s minister of Foreign Trade Leif Padgrowsky. Although sceptical, Padgrowsky welcomed  Attac to Sweden.

That evening there was a ball at the Stockholm university, north of the capital. Several popular orchestras played, attendants danced, speeches were held. Earlier nervousness had given way to a feeling of "wow, we¹ve made it". Participants started to drift home after 2 a.m.

Sunday morning back to the ABF-House. During four hours Attac¹s General Assembly debated, adopted the statutes, and elected a Board. Its 15 members (average age 35) come from different parts of the country, NGO:s and popular movements. Paragraph 2 states that Attac is a "non-party political, religiously neutral organization", which welcomes all democrats subscribing to the platform: Tobin tax, abolishment of the debt of poor countries and fiscal paradises etc. We on the Board want to know each other better, before electing a chairperson. Possibly we opt for three chief executives, says Lena Klevenâs (50), former MP of the social democrats. She also announced that a parliamentary Attac-group will soon be founded.

Following the General Assembly a manifestation was held in  the very heart of the Swedish capital. 1500 people listened to Tartakowsky, as he opened the event, enjoyed street theatre portraying "the Globalization Game", and hundreds signed up for membership. Svensk Handel, the national commerce trade organization had grimly warned Attac, that it would sue for every shop window broken by demonstrators. But after one hour 3/4 of the police force left. Later the police department phoned Attac officials thanking them "for the perfect order, which had reigned throughout the manifestation".

And mass media? Svenska Dagbladet, owned by large Swedish industries, covered most of its¹ front page with a huge picture in colour about Attac. And its¹ leading article, furthermore filled two pages inside. Dagens Nyheter, Scandinavia¹s  biggest morning paper, had gone from aggresive negativism to cautious praise. Attac was welcomed to Sweden, although the paper regretted that "new political movements like Attac develop outside traditional party politics". Expressen, which earlier accused Attac of violence and narrow nationalism, now welcomed "all the serious, intelligent, well informed Attac members to Swedish political life". Expressen in addition presented its apologies for previous "unfounded accusations".

A hearty welcome was also presented by Prime Minister Göran Persson, present chairman of the European Union. He said he looked forward to meet with Attac. Wanja Westin-Lundby, new boss of LO, the trade union federation of blue collar workers was "just passing by". But she  eagerly studied  information about the composition of the Attac Board.  "What broadness of representatives, people from different walks of  life and opinions. It looks fine indeed. Tell them to contact me", she declared. Malte Eriksson, of the Graphic Workers Union had joined Attac, as the first secretary general of a trade union belonging to LO. Attac also has excellent relations with two other unions, those of Commerce and Food industries.

Thus Attac-Sverige, seemingly, has won the battle of public opinion. And this in Sweden, next to the U.K., the most neoliberal country in Europe! On January 9. the 30 local associations were launched; from Malmö in the south, to Umeâ not far from the Polar Circle in the north. Our new member of the Attac-family already has more than 2 000 paid-up members. On February 24. it is the turn of Attac-Danmark to enter the scene, with Finland following suit. Will Norway also join the Attac family ? Shall we bet that it won¹t be long ?

Swedish analysts explain Attac¹s success by factors such as perfect launch timing, determination, patience, political intuition and hard, hard work. Not bad for activists with an average age of 25. Others point out that Swedes have tired of neoliberalism, and want to go back to their deep rooted social democratic sense of equality, brotherhood and solidarity. All explanations are certainly right...

Michel Jerneval, Groupe International Responsible of the Nordic countries inter@attac.org
ATTAC in Sweden: http://attac.org/sverige/
e-mail :  sverige@attac.org

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(5) LETTERS TO THE EDITOR................

Welcome back, from Attac-Ireland....

Dear Ruthanne, It was great getting the Tobin Taxes update again.  We in Attac-Ireland missed it, and missed you. Welcome back and thanks for the latest issue. Best wishes,

Claudine Gaidoni,  ATTAC, Ireland
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A question and answer about parliamentarian's  network on CTTs...

To Robin Round and Ruthanne Cecil,

hello Please see below a question I sent to Steve Tibbett in War on Want following his message sent out about a parliamentarian's network on CTT... I am very interested in info about how to contact the network (see complete question below...). If you have any info on this I would appreciate an answer from you.  Thanks in advance,  all the best,

Thomas Johansen Socialist Left Party of Norway member of international committee and NGO delegate to the Copenhagen + 5 in Geneva
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Dear Thomas,

Harlem Desir from the European Parliament (France) is one  of the organizers of the parliamentarians network and was  an organizer for the Parliamentarian Forum held parallel to  the World Social Forum last month in Brazil. He can be reached  at hdesir@europarl.eu.int. The website where Parliamentarians  from around the world have signed on to a declaration in  support of the Tobin tax is at http://tobintaxcall.free.fr -  I haven't checked lately but I believe there are over 500  signatures on it now. I encourage you to sign, as we use that  total in our lobby work to reveal the extent of global poltical  solidarity in support of currency controls....

I will include with this email the text of the Canadian motion  passed in Parliament in March of 1999. Some MPs elsewhere are  considering using similar motions or resolutions to spark debate. Note that recent revisions of Tobin's original proposal make  clear that the tax can be adopted unilaterally - thus the  cooperation implicit in the Canadian motion would only apply  to revenue redistribution.

Thanks and good luck,

Robin Round Policy Analyst,  Halifax Initiative, Canada

Canadian Motion: "That, in the opinion of the House, the government should enact  a tax on financial transactions in concert with the international  community."

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(5) Definition.....
Currency transaction taxes (CTTs) or Tobin- style taxes are national taxes on cross-border currency  transactions for the purposes of: reining in market volume and  volatility; restoring national sovereignty over monetary policy;  and raising substantial revenue for urgent global priorities.  They can be adopted by national legislatures, but nations will  need to cooperate for effective enforcement.  We prefer and  encourage the plural form (Tobin Taxes) rather than the singular,  to show our support for nationally and/or regionally-adopted  versions of CTTs
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The Tobin Taxes Update is a newsletter of the Tobin Tax Initiative USA.
Ruthanne Cecil,J.D., Newsletter Editor
website - http://www.tobintax.org

 

Center for Environmental Economic Development,
P.O. Box 4167, Arcata, CA 95518-4167 USA
TEL (707) 822-8347  FAX  (707) 822-4457
email:  <cecilr@humboldt1.com>

Write to us for information on memberships and  educational packets.....

Building Local Support for Global Solutions...
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