Greetings to all CLICK4HP subscribers, and best wishes for the New Year.

Some time ago I posted some information about efforts to organize a health
voice on global trade and investment policy.  One potential policy option
is that of implementing a Financial Transaction Tax, or Tobin Tax, on
speculative investment.  The Happy New Year's news is that the Canadian
House of Commons will be debating a private member's bill to do just that,
in February 1999!

I include below an e-mail I received from the "Halifax Initiative," an NGO
working on such policy initiatives as a Tobin Tax.  It explains the context
of the private member's bill.  It is followed by a "Citizen's Declaration
on the Tobin Tax," which the Halifax Initiative is urging people to sign
and return to them.  (I will be signing it.)  I also include a copy of a
letter I will be sending to the Prime Minister, Finance Minister, Health
Minister, my local MP and relevant opposition party members.

I wish to encourage all Canadian list-serve members to do likewise.

This is one of the most encouraging developments, on the global policy
front, to come along in a long time!  If we can "win" this one, we have a
much better chance of ensuring that our globalizing economy works to the
long term human, social and health interests of all, and not just the
short-term financial interests of a few.

Happy holidays!

THE E-MAIL FROM THE HALIFAX INITIATIVE:

On Wed, 16 Dec 1998, Halifax Initiative wrote:
 
TO ALL MEMBERS OF THE TOBIN TAX NETWORK:

There will be an important vote in the House of Commons in February 1999 on
Canada's role in enacting an international financial transactions tax. When
the House resumes sitting, NDP member Lorne Nystrom's private members
motion will be debated and subsequently voted upon. If passed, the
government will have a mandate to act on the motion. The text of the motion
is as follows: 

M-239 - "That, in the opinion of the House, the government should show
leadership and enact a tax on financial transactions in concert with the
international community."

POLITICAL SUPPORT 

During the first hour of debate on the motion (October 28, 1998), Tony
Valeri, Parliamentary Secretary to Paul Martin said," Mr. Speaker, let me
begin by saying that we share the hon. Member's concern over the volatility
that often occurs in financial markets and it is actually for this reason
that we can support the motion put forward by the hon. Member."

The motion has received the support of the Bloc Québécois but the
Conservatives and Reform will not support it.

POLITICAL STRATEGY
 
This motion presents a critical political opportunity to mobilize
grassroots Canadian support for the Tobin tax. Halifax Initiative, a
coalition of environment, development, social justice and faith groups is
mobilizing its network of activists and supporters to canvas MPs on their
knowledge of and support for the Tobin tax. We will coordinate that input
through email, fax and phone and use it to identify and subsequently lobby
non-supportive MPs. 
 
Additionally, we will use our website, listserves, and direct mail, to urge
Canadians to sign the Citizen's Declaration on the Tobin Tax (attached) and
to distribute copies of it to their colleagues and neighbors. The
Declarations will be presented to the Finance Minister at a press
conference in February.

We encourage all members of this Tobin Tax listserve to share this
information as broadly as possible, sign the Citizen's Declaration, contact
their MP on his/her plan to vote and email their response to this
listserve, and mobilize their networks in support of the motion. We encourage
interested writers to draft op-eds, letters to the editor, newsletter
inserts etc. 

More information is available at the Halifax Initiative website at

 www.sierraclub.ca/national/halifax 

or by contacting Pam Foster at the Halifax Initiative office in Ottawa
(613-241-4611ph/241-2292fx).

CITIZEN'S DECLARATION ON THE TOBIN TAX

WHEREAS over US$1.5 trillion is exchanged every day in currency markets
around the world;

WHEREAS  approximately 95% of  those exchanges are "speculative" as traders
bet on whether currency values and interest rates will move up or down;

WHEREAS most international currency speculation is conducted with a view to
earning short-term profits at the expense of long-term investment in
economic and social development;

WHEREAS  international currency speculation disrupts the ability of
governments to establish just and equitable national economic policies;

WHEREAS the sudden outflow of large quantities of speculative capital from
Mexico, Thailand, Indonesia and South Korea resulted in severe economic
downturns, political instability, widespread social turmoil and human
suffering;

WHEREAS excessive speculation could be curbed by a modest tax of between
0.1% and 0.25% on each currency transaction as proposed by Nobel
prize-winning economist James Tobin;

WHEREAS the revenues from a Tobin tax, estimated to be worth between US$150
and US$300 billion a year, are urgently needed for genuine economic and
social development and environmental protection in less developed countries;

WHEREAS the resources needed to wipe out extreme poverty, provide basic
social services and mitigate environmental destruction globally are
estimated at US$ 225 billion a year;

I / WE DECLARE THAT governments around the world should immediately
establish a Tobin tax on speculative currency transactions and dedicate the
revenues to social and economic development for less developed countries.
The tax should be collected and redistributed in an a fully transparent and
accountable manner by the United Nations.

 NAME :                 ______________________________________________________

SIGNATURE :             ______________________________________________________

ORGANIZATION (if signing on its behalf) :                                      
                         ______________________________________________________
  
ADDRESS: (include phone and email)  :
                ______________________________________________________         
                _____________________________________________________            
                ______________________________________________________
PLEASE RETURN TO :      	
	
Halifax Initiative 
#412 - 1 Nicholas St
Ottawa, ON, CANADA, K1N 7B7
ph (613)241-4611  fax (613)241-2292
email: [log in to unmask]

(OR FILL IT IN AND EMAIL RETURN TO [log in to unmask])


LETTER I HAVE SENT TO CANADIAN POLITICIANS:

In February, 1999, the House of Commons will be debating a private member's
motion, M-239: "That, in the opinion of the House, the government should
show leadership and enact a tax on financial transactions in concert with
the international community."

Such a tax, variously known as an FTT (financial transaction tax) or a
Tobin tax (after the Nobel economist, James Tobin, who first proposed it)
is intended to act as a "speed bump" on the rapid withdrawal of speculative
capital in currencies, stocks and bonds.  In 1975, about 80% of foreign
exchange transactions were tied to trade and investments in goods and
services; the rest was speculative.  By 1997, speculation rose to account
for between 95% and 98% of all such transactions.  The extent of this
unregulated speculation severely constrains national governments' abilities
to set their internal social and economic policies.  In the words of a
former hedge fund manager: "currency traders are effectively ‘policing'
governments by selling off a nation's currency when they are dissatisfied
with that government's policies" (quoted in Resurgence Magazine, 87/88).
Among these policies are those that help to mitigate market-driven income
inequalities, which continue to rise in Canada and most other nations,
through "social wage" transfers, or to maintain environmental capital by
regulating its exploitation and reducing toxic pollutants.  

The volatility of such speculation is now well known for the havoc it can
wreck on a nation's internal economic management, particularly the value of
its currency, stocks and bonds.  This, in turn, effects a nation's balance
of trade and ability to manage interest payments on public debts held in
foreign currencies.  It was the sudden outflow of large quantities of
speculative capital from Mexico, Thailand, Indonesia and South Korea that
led directly to severe economic downturns, political instability,
widespread social turmoil and human suffering in those countries.  Mexico,
as one example, has subsequently experienced a huge increase in deep
poverty and crimes against property and people that are usually associated
with escalating economic and social inequalities.

I am encouraged that this problem has not gone unnoted by Prime Minister,
Jean Chretien, who in a 1996 speech stated that, "International finance
knows no borders.  Tidal waves of money wash effortlessly backwards and
forwards, buffeting interest rates and exchange rates [and disrupting] the
best laid plans of governments.  These financial waves often seem motivated
by quick-changing sentiments or the short-term expectations of the
proverbial 28 year old trader in red suspenders.  When a crisis erupts, a
nation-state can seem powerless" (quoted in Clarke and Barlow, MAI Round 2,
Stoddart, 1998, p.47).  The private member's motion before the House in
February represents an opportunity for Canada, and other nation-sates, to
reassert their legitimate, democratic power.

Many European nations are also calling for such a Financial Transaction
Tax, as are some of those countries (notably Malaysia) who have suffered
most from its absence.  Such a tax is a "win/win" scenario for all but,
perhaps, those who profit through speculation.  By penalizing speculation,
investors will be encouraged to place their capital in longer-term economic
development of greater benefit to citizens, both locally and globally.  The
tax will also raise substantial revenues (estimated between $150 and $350
billion annually) that could be used for national development projects,
public debt repayments and both economic and welfare infrastructure
development in the world's poorest regions.

How such a tax might be implemented, and how its revenues disbursed, are
political and technical matters best resolved at the level of the UN.  But
to even have such a debate and decision-making process initiated at this
level, individual nations need to take the first step of declaring their
support for, and intent to enact, such a tax.

This is an opportunity for Canada to reclaim some of its democratic
authority that the Prime Minister fears we may have lost.  It is also an
opportunity for Canada to regain some of its reputation as a champion for
international health and justice, a reputation somewhat tarnished in recent
years.  Finally, it represents an opportunity for Canadians to participate
in building a more democratic and equitable global economy, one that serves
the needs and interests of all of its citizens.

I urge you, and all Members of the House, to give Motion-239 your full
support.


A FAST WAY TO FIGURE OUT WHO AND HOW TO SEND A LETTER TO CANADIAN POLITICIANS:

Just visit the "Fax the Feds" web-site (http://www.net-efx.com/faxfeds) and
follow the simple instructions.  Democracy doesn't come any easier.  But it
also doesn't mean anything unless we exercise it.
_________________________________________________________________________

Ronald Labonte, PhD
Communitas Consulting
29 Jorene Drive
Kingston, Ontario, Canada  K7M 3X5
(voice):  613-634-7396
(fax):    613-634-2384
e-mail:   [log in to unmask]

_________________________________________________________________________