Financial Transaction Tax: a small fee for global justice
Across the globe, anti-poverty activists are channelling the spirit of Robin Hood, who stood up against a sheriff’s unfair taxes. Today’s crusaders are actually in favour of a tax but it is one that takes from the richest and gives to the poorest.
While a Financial Transaction Tax (FTT) is not a new idea, it has generated interest from governments dealing with the effects of the global recession, especially the damage on education systems around the world. Some call it a ’Robin Hood Tax’, the FTT taxes high-risk speculative trading by bankers. The European Parliament estimates an FTT could raise $650bn a year for initiatives like Education for All (EFA).
Unions lobby G20
Last November, 183 organisations from 42 countries, joined EI in signing a letter to G20 leaders on the eve of its summit, to call for support of an FTT to ‘meet the costs of the financial crisis, including the high rate of job losses, and to achieve developments in health, education and climate change’.
Activists in the USA face the challenge of overcoming the nation’s anti-tax climate, despite the unpopularity of Wall Street among the public. Many NGOs and unions, including NEA, support an FTT.
NEA President, Dennis Van Roekel, said that revenue from an FTT should help improve access to quality education, not pay down debt: “If it’s done right, the tax will not only deter risky speculative practices that undermine economies, but it will raise revenue to rebuild education systems that were devastated by the global recession.”
In its support for EFA goals, NEA is an active member of Global Campaign for Education (GCE) which is a broad coalition co-founded by EI to promote universal basic education.
GCE’s Amy Gray said: “November’s G20 meeting was a key political moment but support for an FTT didn’t happen. Moving forward, we must continue our efforts to build a base and mobilise the public, so that when the next opportunity comes, we’ll be even more ready.”
16 February: day of action
And that’s exactly what global activists have done. A coalition of trade unionists and NGOs organised a day of action on 16 February to push the campaign. Groups lobbied G20 embassies; organised media stunts with crusaders dressed in Robin Hood costumes, and opened a global e-petition.
In Europe, passage of the tax could become reality as the European Parliament approved a report supporting an FTT, and plans to release a report in July outlining the effects of it on financial institutions.
Supporters concede that an FTT isn’t the only mechanism to regulate global finances or funding vital public services, but they do believe it will be a solid step towards steadying volatile markets and supporting countries in need.
By Meredith Barnett, National Education Association (NEA), USA
