ITUC calls for UN MDG Summit to endorse Financial Transactions Tax

Global March member, the International Trade Union Confederation (ITUC), is calling on governments to commit to introducing a financial transactions tax (FTT) at the UN MDG Summit being held in New York from 20-22 September 2010, to help tackle global poverty and accelerate action on jobs and climate change. The MDG Summit will take place against a background of growing global unemployment and inequality and major set-backs on economic development in countries across the globe.

“The global economic crisis continues to hit hard, with 200 million more people falling into absolute poverty since 2008, millions of young people with little or no hope of finding work, and women in particular being squeezed out of employment. The recession may be over for banks and finance, but the outlook for employment and for vital public services is bleak as governments cut spending in order to satisfy the money markets. A financial transactions tax not only makes good economic sense – it is also a matter of justice and equity,” said ITUC General Secretary Sharan Burrow.

A Financial Transactions Tax could raise between US$200 billion and US$900 billion depending on the way it is structured and the level at which it is set, according to the ITUC submission which is being sent by its national affiliates to governments in preparation for the Summit. Even a small percentage of the funds raised by an FTT would help put in place a social protection floor, which would give a major boost to tackling poverty. The submission sets out the case for putting an FTT at the centre of an overall package of measures which would also tackle corporate tax evasion and ensure effective regulation of banks and finance.

“Instead of simply focusing on spending cuts, governments need to increase revenues to ensure employment, public services and development aid. Parts of the finance sector are awash with money, just two years after taxpayers had to bail out poorly regulated banks. An FTT would not solve all the world’s problems, but it would certainly be a good starting point by moving capital from speculative profiteering to kick-starting the real economy and helping avoid a double-dip recession which would have horrendous consequences for the poorest countries in particular,” said Burrow.

The ITUC submission to the Summit sets out detailed policies and actions which would give a renewed impetus to meeting the MDGs, which on current measures are highly unlikely to be met, despite repeated pledges by governments. Implementing the ILO Jobs Pact, adopted at the 2009 International Labour Conference, is at the centre of the ITUC’s demands for the MDG Summit.

Earlier this year, Global March signed up to the Make finance work for people and the planet campaign and called on its members and partners around the world to consider doing the same by taking the time to visit the campaign organisers’ web site, www.makefinancework.org, and making an informed decision. Organisations and individuals can sign the global petition on this web site and, in the light of this renewed call by the ITUC, it would be important to do so prior to the MDG Summit. Resources from such a tax could be directed towards vital efforts to eliminate and prevent child labour, providing much needed support for the implementation of National Action Plans on child labour and follow-up to Roadmap 2016.

For more information on the ITUC Statement to the MDG Summit, click here