International Public Finance:
Global Taxes & Fees
GPF's work on the finance of international public institutions grew out of our work on the UN financial crisis. Some analysts have proposed that revenues from global taxes or fees could be used to help fund the UN and to fund other global policy purposes at the same time, such as development finance and environmental protection. Further, the fees or taxes can have positive policy results independent of revenue-raising. The Currency Transaction Tax or "Tobin Tax" on foreign exchange, for instance, can slow down financial speculation and an Environmental Tax or "Carbon Tax" can reduce emissions and slow or halt global warming.
GPF has actively promoted the global tax idea and monitored global discussions and negotiations. GPF has also produced original analyses, commentary and proposals to promote better understanding of the issues among policy makers and the public.
During 1999, our work began to show very positive results, as a number of new organizations and initiatives on global taxes sprang up around the world. In France, under the auspices of the respected monthly, Le Monde Diplomatique, a new organization called ATTAC (founded mid-1998) began to actively promote the Tobin tax worldwide, while a network called the Tobin Tax Initiative arose in the United States. Concern over the currency speculation that led to the Asian financial crisis of 1997-98 gave momentum to these efforts. Currency trading continues to soar in volume – approaching $1.7 trillion per day, or enough to cover total world trade in less than one week. This frenetic speculation obviously puts the entire global financial system at risk and must be moderated by forceful tax or regulatory means.
In 1999, GPF concentrated its work primarily on developing its international public finance web resources, which are widely recognized as the world's premier site on the issue. We were fortunate to have a number of talented people working on this program, including especially Miwa Shirato and Olivia Tecosky. We monitored not only global initiatives but also related policy at the national and regional level, such as the European air fuels tax. The site received a "Study Web Excellence Award" for this work, confirming its value as a key resource for college and university students.
During the year, we participated in several UN briefings and discussions, as well as many private meetings on the issue. We were grateful for the counsel of world class experts on the topic such as Ruben Mendez and Hans D'Orville. We raised the issue often with NGO partners and with media interviewers.
Many in the United States are inclined to dismiss the practical possibility of implementing global taxes and fees because of the hostility of the Congress and lack of enthusiasm in the Administration. But at GPF we feel that economic globalization will increasingly require stronger international organizations and that only global taxes and fees can provide a solid financial basis in the long run to pay for them. We also believe that these taxes and fees can have substantial positive policy outcomes in their own right. Growing interest among NGOs and experts show that the issue has an important future.
Global Policy Forum is supported primarily by contributions from generous individuals who join as members. GPF also receives grants from foundations and partner institutions. GPF is incorporated in the State of New York, registered as a charitable organization and recognized by the US Internal Revenue Service as a not-for-profit, tax-exempt organization under section 501(c)(3) of the revenue code.
