Date: June 22, 2011, 6:58 pm


ISODEC SUPPORTS GLOBAL CAMPAIGN FOR FINANCIAL TRANSACTION TAX


PRESS STATEMENT

 

On this day, 22nd of June 2011, the Integrated Social Development Centre (ISODEC) joins forces with campaigners across the globe, advocating for the introduction of Financial Transaction Taxes (FTT), particularly in the advanced and wealthy nations. The 22nd of June has been set aside as the Global Day of Action for Financial Transaction Taxes. Campaigners both in Ghana and around the world are urging the introduction of such taxes to provide resources for the development of the global south as well as create a stable global market conditions essential for the development of poor countries.


Frequent activities and transactions of market speculators are major sources of instability for global markets and economies of countries. Pedro Paez, a former Minister for Economic Policy in Ecuador provided a good description of the situation when he observed that “In one and a half years, the number of people in hunger has increased from 900 million to over 1 billion. Rather than investing in the real economy, banks have been putting resources into speculative bubbles, including for food and energy. These can produce high profits for speculators in the short term, but a very grave hunger situation as well. Unfortunately there is little international awareness about this problem.”

Clearly such activities of market speculators are in the interest of only a few whilst the poor everywhere in the world and developing countries remain perpetual losers in this unsolicited financial gamble. Situations such as these provide some reasons why the gap between the rich and the poor; and the developed and developing countries keeps widening. To eradicate these practices all must join hands for the demolishing of this financial monster.

At the last meeting of the G20 in Seoul, 183 civil society organizations presented a petition on behalf of 200million people from 42 countries urging the leaders to take concrete steps in the introduction of the FTT. Significantly for the campaign, the French, German and Austrian Governments have endorsed the Financial Transaction Tax and we hope many more developed countries will join soon.

We call on the Government of Ghana to add her voice to the call and to join others on the continent such as Prime Minister Meles Zinawe of Ethiopia to work to ensure that the African Union demonstrates full support for the Financial Transaction Tax. A stable global economic order is a key requirement for Africa’s development and supporting the Financial Transaction Tax would contribute greatly to Africa’s development.  If this tax fails in its deterrent objective, proceeds from the tax could be used to support social services provision and livelihoods in developing countries.

 We commend former Brazilian president Lula Da Silva, the 28 low-income Francophone countries who have endorsed the FTT and the 1000 economists led by Jeffrey Sachs and Joseph Stiglitz who wrote to the G20 indicating their support for the FTT. We at this stage hope that the European Union, the British and American Governments will soon demonstrate similar support for the Financial Transaction Tax.

 

 



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