I do not think that we should try to sell the idea of a global tax on financial
transactions (FTT) with the "insurance fund" argument. All sound economical
systems should provide mechanisms for saving some money or resources for the
bad days, but certainly not "to protect citizens from the astronomical costs of
bailing out further banks and financial institutions".
In general, I consider the main argument for a global FTT to be that it
can help open the black boxes of the world's computerized financial system;
thus I recommend an information-oriented approach to the FTT. The revenue
generated by such global taxation may also be significant, and the FTT might
also be used to stabilize the financial system , but the really important
function of a global FTT should be to further global democratization by
increasing the public's knowledge about what is going on in the world of
finance.
The
Schumacher
lecture of Susan George, which I already quoted, contains a vision of how
another, alternative financial system should be constructed. One of the
necessary points on the agenda is the abolition of the tax havens, about which
John Christensen and Richard Murphy from the Tax Justice Network have published
a fresh article,
Tax havens and the financial crisis.
But neither Susan George nor Christensen & Murphy mention Clearstream.
While looking for news about Clearstream I found, to my dismay, that Denis
Robert, the French investigating journalist has recently been sentenced in
court for libel against the bank of all banks in Luxembourg. So Clearstream has
scored a victory in its tenacious efforts to silence him! Hope to be back on
this subject when I have more details about the continuing harassment of Denis
Robert.
Choike has collected signatures on a statement "on the proposed "Global Summit"
to reform the international financial system". (
http://www.choike.org/bw2/). This relates to
the planned G20 meeting on the financial crisis, which president Bush will be
hosting on the 15th of November. The main demands of the statement are that a
global summit on the financial crisis
- " is inclusive and participatory of all governments of the world;
- includes representatives from civil society, citizen?s groups, social
movements and other stakeholders;
- has a clear timeline and process for regional consultations, particularly
with those most affected by the crisis;
- is comprehensive in scope, tackling the full array of issues and
institutions;
- is transparent, with proposals and draft outcome documents made publicly
available and discussed well in advance of the meeting."
I signed this statement as an individual, because these are elementary
democratic demands. Yet I am convinced that the governments will not be capable
of doing any good and right things without a strong pressure from
non-governmental, civic movements. Susan George, in her Schumacher lecture, has
sketched the programme we should be agreed on and forcefully put forward
now:
- "... a new Keynesianism, not military this time, but environmental; a push
for massive investment in energy conversion, eco-friendly industry, new
materials, efficient public transport; the green construction industry and so
on";
- "... take taxes up to the European level and to the international one
through currency and other financial transaction taxes";
- "... debt cancellation for poor countries";
- "Tax havens that allow affluent individuals and corporations to avoid
paying their fair share of the conversion should be shut down: it would be
cheaper to pay the inhabitants of the Cayman Islands, Liechtenstein and the
rest a living wage for twenty years. Plenty of cash would remain for
eco-investments, job-creation and poverty relief."
In its essence, this is the program of
ATTAC. But it has two weak spots. We must also, and
in particular, raise the demand for European Nuclear Disarmament and make it a
condition of the European Union, to be inscribed in its constitution.
This is a goal to achieve for Europeans, in the first place. Every important
political question is connected to it: the future of NATO, the question of how
to organize a global governance, the orientation of the real economy, which is
a permament war economy, and of which the nukes and the related weapons systems
(missile defense, and "star wars", in particular) are the top of an enormous
economical -- or rather,
uneconomical -- iceberg. Without this demand
the movement will continue to lack a real political perspective. It will
continue to grope in the dark. The weapons of mass destruction are also the
weakest point of our adversary, it is his means to keep us scared and under his
control; but when we attack him united on this point, we will we be real and
courageous again, and we will win.
Secondly, we must make an offensive towards the heart of the present financial
system, which is a computerized system, where the money is becoming equal to
digital information. The "shadow banking system" , which now breaks down, has
its centre in Luxembourg, in the financial machinery of Clearstream, the
"notaries of the world".
It is a myth that the financial system is
non-transparent; yes, it is opaque to us, the people, but every deal
of the financial capitalists in their tax havens is certainly being documented,
all the data are there, and for the ones who have all the data, it is not
non-transparent at all. As long as Clearstream, Euroclear and SWIFT are not
under democratic control, the financial system cannot be controlled by the
people. The situation now is, that the average journalists or ministers or
economists, for that matter, have scarcely heard about these nodal points in
the financial machinery, the digitalized clearing-houses, which have come into
being only during the last few decades, and without which the financial
globalization would not have been possible.
The role of information in the financial system has always been of prime
importance, but the networked computer has changed the basic conditions - far
from being opaque, the system is now transparent and controllable, at least in
principle, thanks to the digital networks.
PS. In addition to Susan George´s impressive Schumacher lecture (see
above), I also re-read her
"Budapest Paper" from October 2001, where she constated that we had all
entered
'an age of radical insecurity and post-State conflict.'
In order to end this age of insecurity, we need to recognize the
library-cum-internet as a global state power on pair with the national state
powers. Instead of being hidden in the secret databases of Luxembourg's shady
notaries, the financial data of the world must be recorded in public libraries
and archives.