VICTORY for the Pro-Tobin Tax network at the June 2000 United Nations Social Summit!
The success of the Tobin Tax campaign, along with the MAI victory, provides ample evidence that citizens working together can make a difference and influence the outcome of economic globalization. We should proudly acknowledge the contribution of citizens, Church groups, NGOs and supporting Federal Members of Parliament towards building a financial framework for a new global democracy for the 21st Century.
Our friends from the pro-Tobin tax network have just informed us that, in an astonishing breakthrough, the Canadian delegation to the United Nations World Summit for Social Development overcame fierce opposition from the United States to achieve agreement that the UN host a study on a Currency Transactions Tax (CTT).
The agreement, to conduct a rigorous analysis of advantages, disadvantages and other implications of proposals for developing new and innovative sources of funding, both public and private, for dedication to social development and poverty eradication programes, is a remarkable diplomatic achievement for Canada.
This victory comes only months after the Parliament of Canada first proposed the idea by adopting a private members motion M-239 which read: That in the opinion of the House, the government should enact a tax on (international) financial transactions in concert with the international community.
The text was approved without dissent by over 160 governments participating in the 5-year review of the Copenhagen Social Summit commitments. The change of heart among delegations can be largely attributed to the tireless work of the pro-Tobin Tax international network. The network includes citizens, church groups, labour organizations and the non-governmental community who ran public education and media campaigns to convince reluctant governments of the merits ot a currency transactions tax.
This nine month study follows Canadaƒxs success in adopting Motion 239 and represents a stunning achievement by the international pro-Tobin Tax network of NGOs, many of whom had not even heard of the Tobin Tax when the motion was passed in March of 1999. In one short year, a global community of social justice, environment, development, labour and church groups, as well as Parliamentarians and economists, has emerged and rallied around a Currency Transaction Tax (CIT).
This study will provide an invaluable tool for citizens, academics and governments alike. Work is already underway at the UN to select the study team, a member of which will be selected from the NGO community. Public hearings are also under consideration.
The Tobin Tax Would:
Provide funding for sustainable development and social programs.
Reduce the power that financial markets have over national governments to determine fiscal and monetary policies by providing some countries with an alternative to raising interest rate and deflating their economy to mitigate the effect of short-term currency speculation.
Deter short-term speculation by cutting into the yields of speculators and introduce a bias for long term investment. Speculators typically seek to profit from minute differentials in currency speculation.
Provide exporters, importers and long term investors with a more stable exchange rate.
Make it easier for central banks to intervene in foreign exchange markets be-
cause they would need less financial punch.
Let us keep the pressure on our federal government to deliver on the Tobin Tax promise.
Information by Lorne Nystrom, MP: Ph.359-6944.