- International currency transactions total more than $1 trillion
a day. The vast majority of this is unrelated to the real economy
of tangible trade goods and services. Such enormous speculative
flows have contributed to serious economic damage to countries
and regions such as Mexico (1994), Southeast Asia (1997), Russia
(1998), Brazil (1999) and Argentina (2001).
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- A small levy on such currency speculation (a Tobin tax - named
after the Nobel Laureate who originated the concept) could both
dampen down the scale and scope of speculation and raise substantial
revenues, potentially in excess of $50 billion each year, for
projects targeted towards ending global poverty.
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- Such an initiative now enjoys the backing of a number of governments
and parliaments across the world, including France, whose parliament
recently passed a law authorising its implementation.
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- We are heartened by the words of Chancellor Gordon Brown, that
"innovative ways" need to be urgently found (including
currency taxes) to finance development, and offer him this document
to show the weight of opinion there is in the UK for the delivery
of an initiative that both calms financial markets and utilises
the revenue for urgent global needs.
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- We wish the Chancellor a successful mission to the UN 'Financing
for Development' conference in Monterrey, Mexico, urging him to
take steps towards the introduction of an internationally co-ordinated
Currency Transactions Tax, with the proceeds ring-fenced for international
sustainable development objectives.
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- We further urge the Chancellor to ensure that these proceeds
do not replace either existing international aid disbursements,
or agreed commitments to increase international aid.
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