By Ruthanne Cecil
February 29, 2000
Late in the fall of 1999, three North American groups were awarded funds to do Tobin Tax work: in the United States, the Tobin Tax Initiative-USA and the Center for Economic Policy Research (CEPR, formerly part of Preamble Center); and in Canada, the Halifax Initiative. These funds, from a SF-based family foundation (for TTI-USA) and the Ford Foundation (for CEPR and Halifax Initiative collaboration), will make possible additional work in the year 2000, on the issues of taming rampant speculation and generating revenue for urgent global priorities.
Some of you are aware of the recent gains in Tobin Tax work internationally during 1999: from the 2-1 passage of an advisory measure by the Canadian Parliament in March 1999; to the surprising growth of the movement in France (Association for a Transaction Tax to Aid Citizens: (ATTAC). Less known are the new alliances coming from the South (Brazil, Korea and South Africa, among others); a new level of research among NGO¹s (studies coming from Oxfam UK; CIDSE Belgium; North-South Institute, Canada; and War on Want, UK). Also, in January the New Internationalist magazine featured a Tobin Tax foldout poster and excellent articles.
There is also a marked increase in endorsements, platforms, and mobilizations, including the World Council of Churches Harare document; the Santiago Alternatives for the Americas platform; and the War on Want campaign "It¹s Time for Tobin". There are new parliamentary groups on currency taxes: in the European Parliament; in the NY-based Parliamentarians for Global Action; and an international parliamentary call is on the horizon. And in the US Congress, Rep.Peter DeFazio (D-Oregon) is introducting a Tobin Tax resolution this spring, with a drive for congressional co-sponsors to begin in March. Final wording on this comprehensive measure is due out from Legislative Counsel any day now.
Although we continue to build our base in the United States, with new endorsements, newsletter sign-ons, limited media work, research, speaking engagements and workshop participants, it is evident that US domestic policy development, organizing, mobilizing, educating, and legislative work must gear up to respond with solidarity to the rise in efforts internationally.
There is a window of opportunity at this moment. The power of global civil society, and the willingness of US activists to grapple with international issues has been shown through the "battle of Seattle" and the growth of the Jubilee 2000 movement. Politically, we have seen the G-8 shift over the past year from blind defense of their policies leading to financial crises in Asia and Latin America, to a recognition of the need for capital controls, including the Chilean tax model, in some circumstances. In 1999, the IMF even made a high-level statement that "there might be a case for market-based controls or taxes on short-term inflows often characterized as the Tobin tax," while insisting empirical evidence on effectiveness was "mixed". (Ouattara, IMF, 2/3/99)
Within our close circles too, we are seeing a more sophisticated economic policy debate, between the Spahn version of Tobin-style taxes, the original tax proposals, and combinations thereof. The Schmidt solution to the enforcement problem, explained at an experts meeting in Antwerp last fall, is being discussed by the government and finance ministry in the UK, a result of the War on Want¹s campaign in the UK entitled "It¹s Time for Tobin." As shifts occur in the political climate among finance ministries, we need to be ready with an increase in citizen mobilization, as well participatory policy development...
We see this moment as an opportunity to raise the debate further in the US, to offer solutions to prevent future financial crises brought on by rampant unregulated speculation, and to look anew at the potential for revenue that could tackle some of our urgent global problems, and domestic ones as well.
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