INTERNATIONAL SOLIDARITY LEVY NETWORK

ASIA PACIFIC NETWORK BULLETIN JULY 2011

Published by the global union federation Public Services International Katsuhiko Sato ISL-Net Coordinator International Director (JICHIRO) Email: satok@jichiro.gr.jp

IN THIS ISSUE Financial Transaction Tax-Global Day of Action A thousand economists tell G20 and Bill Gates: Time for a Robin Hood Tax The Robin Hood Tax The Time to Act Now! Innovative Financing for Development

A Global Day of Action for a Financial Transactions Tax was marked with events around the world on Wednesday 22 June. European Union finance ministers met on 15 June and the European Council on 23-24 June. Leading into the launch of the Council of Global Unions Quality Public ServicesAction Now! Campaign on Thursday 23 June (World Public Services Day), trade unions and civil society allies called on European leaders to endorse a financial transactions tax to help meet the cost of action against climate change and world poverty, and fund quality public services for all. The trade union call for the tax, supported by a wide range of economists, along with development, environmental and health groups, has been gaining political momentum.

This was a key moment in the campaigning calendar to influence decision makers ahead of the G20 in November. FTT coalitions around the world will work to gain coverage in national media for their campaign actions. The international coalition www.makefinancework.org is dedicated to developing joint strategies and discussing common alternatives to fight poverty. Please sign up to the world-wide Parliamentarians Declaration for a financial transaction tax. The website also has resources for the day of action in several languages. National Nurses United, a PSI affiliate in the U.S., held a protest in New York on 22 June as part of the day of action. In the U.S., hundreds of billions of dollars could be raised every year through such fees revenue needed to repair the harm to Main Street communities so devastated by the abuses of Wall Street speculation and greed. The money can be used to create jobs and fund health care, education and housing. Nurses see patients and their communities being crushed by the economy, says National Nurses United. To protect patients, they say, revenue must be raised now and used for national reconstruction. International Trade Union Confederation general secretary Sharan Burrow said, A financial transactions tax would secure vital funding for job creation and global programmes to tackle climate change and world poverty. Governments promised to mobilise climate financing at the Copenhagen Summit, and this is a sure fire way of helping to meet the targets they set. Such a tax would also dampen unproductive speculation and help governments strengthen public finances. The ITUC is pressing the case at all the key global institutions including the G20, IMF, World Bank and the negotiations on the Durban climate summit this December and next years RIO+20 Summit in Brazil.
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The international alliance of Catholic development agencies CIDSE has issued a publication ahead of the EU Impact Assessment of the FTT. "The FTT for people and the planet financing climate justice" sets out how part of the over 465 billion estimated yearly global revenue of a tax on financial transactions, if introduced at an average rate of merely 0.05%, could finance the fight against climate change. For more information, please see: http://ning.it/nQKfIw

The Robin Hood Tax

The UK based campaign website for a tax on financial transactions is http://robinhoodtax.org/. The website explains that the big idea behind the Robin Hood Tax is to generate billions of pounds. That money will help protect public services, fight poverty and tackle climate change. And it will come from fairer taxation of the financial sector.

A thousand economists tell G20 and Bill Gates: Time for a Robin Hood Tax
A thousand economists from 53 countries have written to G20 finance ministers and Bill Gates calling on them to introduce financial transactions taxes to tackle global poverty and climate change and help people hit by the economic crisis. The letter was delivered to G20 finance ministers ahead of their meeting on 13 April in Washington and to Bill Gates, who has been asked by the G20 to examine innovative options to raise money for development and climate change. It is the latest sign of increased support for financial transaction taxes which are supported by a growing number of governments including France and Germany. Read more at: http://ning.it/oYSlsm

The Time to Act Now! Innovative Financing for Development

Mali hosted the 9th plenary session of the Leading Group on Innovative Financing for Development in Bamako, on 24 and 25 June. 63 countries, numerous international organizations, foundations and NGOs attended this very important meeting. At this meeting, countries and members of the Leading Group on Innovative Financing for Development adopted Bamako Declaration that recognised innovative financing mechanisms have raised more than $5 billion for development. The innovative financing are recognised an effective solution to raise new stable and predictable resources for financing needs for achieving the Millennium Development Goals, they enable the activities that have benefited the most from globalization to contribute to greater global solidarity. The exemplary theme of innovative financing mechanisms has been taken up by international forums: the United Nations, Africa, LDCs, Europe, G8 and G20 attach much importance to it; international organizations (UNDP, FAO, FTI, World Bank, GAVI, UNITAID etc.), NGO coordination bodies and major philanthropic foundations have also placed this theme on their agendas; additional countries are choosing this avenue to supplement their traditional ODA. Innovative financing mechanisms provide more predictable assistance flows to fund, at a manageable risk level, long-term vital needs such as food security, health and education. Its countercyclical effect has increased as a result of 2008 economic and financial crisis. Innovative financing is based on various mechanisms put in place by countries with very different development levels: loan guarantees, market mechanisms, micro-taxes, citizens contributions, lottery mechanisms, or debt management methods. It constitutes a legitimate contribution from the activities that have benefited the most from globalization, corrects certain negative externalities and innovates in terms of both fund raising and expenditure to achieve ongoing improvement in the aid effectiveness. Mali announced its second annual contribution to UNITAID, amounting to US$ 305000, in addition to the US$ 402000 disbursed in 2010. These funds were collected through an air solidarity levy applied to all flights leaving Mali and represent a revolutionary way of raising money for public health, especially in a developing country. Please read the Bamako Declaration for further information: http://ning.it/nviFrV. During the Leading Group meeting, several countries and organization gave presentations, including a presentation by David Hillman of Stamp Out Poverty and the Robin Hood Tax campaign: http://ning.it/pH3a5p Who is the Leading Group on Innovative Financing for Development? Please read their website for more detail: http://ning.it/ncm3Px 2 ISL-Net July 2011