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HEADLINE 1 -- LOCAL TOBIN TAX ACTION:

Across the globe, much is happening on the Tobin Tax:

--- Local Cities Campaign Begins... Kicking off on October 6, 1999 with a local city council proclamation, the Tobin Tax Initiative USA launched its new Local Cities Campaign. You can participate by getting a copy from us, and organizing to get a similar proclamation adopted by your City Council or County Supervisors. The wording is comprehensive, and educational as well. These are advisory motions, but reflect the mood of citizenry, and send a strong message to our Congress.

--- Arcata City is First in the US... There are two Greens and two Democrats on the City Council in this northern California city, and one Libertarian. The vote was 4-0, with the Libertarian abstaining. After its adoption, the measure was read by the Mayor over local television, and an acceptance speech was given by a representative of the Tobin Tax Initiative USA. The wording of the proclamation reflected the drafting work of northern California committees over the past year, plus input from local city council members. Thanks to all those who participated. It is the first in the country, but there will be more.. To get a copy, see below under Resources....

--- ATTAC locals in many countries... ATTAC, the Action for Transaction Taxes to Aid Citizens, a French international organization, continues to open new chapters in various countries. See www.attac.org for details, and join their listserves, offered in several languages....

--- Washington DC committee meets... The second ad-hoc national advisory committee for the Tobin Tax USA effort met in Washington DC on September 30, during the week of the annual meetings of the International Monetary Fund and the World Bank. Numerous activists were in town for the events of the week, and several groups sent representatives to discuss how to influence the IMF on currency controls.....

--- Tobin Tax Initiative USA reports... Perhaps you missed the August and September updates. We know we did, but we are back. Our excuse wasn't vacation ... it was the work load: a constant speaking circuit, including workshops, classrooms, study groups, conferences, town halls, and radio shows. But we have now increased our staff to include three additional volunteer or work-study interns, so we have begun to catch up. A report on endorsements and active organizations will be published soon. A short tabloid for economic literacy workshops is in the works. Member groups within the regional committees have been hosting events, meetings, teachins, and tablings that include Tobin Tax elements. These groups, which include such activist endorsers as Global Exchange, JustAct, World Federalists, National Lawyers Guild, and the 50 Years is Enough National Network among others, have offered forums and speaking opportunities. Many of these groups are also formulating their own positions and materials that include the Tobin Tax: groups such as the Institute for Policy Studies, the Friends of the Earth, the World Council of Churches, the AFL-CIO, the Center of Concern, and others. Along with smaller groups such as study groups and local advisory committees, the momentum for the Tobin Tax Initiative USA continues to grow.....

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HEADLINE 2 -- ACADEMIC UPDATE:

--- Krugman change of heart. Paul Krugman, a well- known economist and apologist for neo-liberal free-trade-ism, has made a turnaround of sorts on the question of capital controls. In the July 17,1999 issue of the Economist, he recommends capital controls as "a curfew" on capital flight. He also advocates taxing corporate foreign-currency borrowing, according to the article.

--- Antwerp Expert meeting. In late October, Tobin Tax experts will be gathering in Antwerp, to listen to a debate over the Spahn version of the Tobin Tax. Economists Rodney Schmidt and Danny Cassimon will be presenting. The event is hosted by CIDSE of Brussels, and a few NGO's have been invited as well. After the event, CIDSE will issue a report on the findings.

--- Spahn/Cassimon/Schmidt. These reports are available, please contact us for more information.

--- Study groups and classrooms are effective for teaching about taming rampant markets of global finance... If your group is grappling with this complex information, you may want to consider a study group approach. We have done successful presentations on the Tobin Tax to groups who have already been meeting and studying globalization issues. As they begin to understand global finance, the importance of the Tobin Tax becomes apparent as a policy tool, as well as for the revenue aspect. In a classroom setting we find a two-hour presentation to be quite comprehensive. Contact us if you need to locate speakers or materials for such a group....

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HEADLINE 3 -- NEW RESOURCES AVAILABLE:

--- Model Proclamation for Cities ...If you mail us a request along with two US dollars, we will mail you a color copy of the now-famous Arcata Proclamation, a model proclamation on the Tobin Tax suitable for framing, and suitable for your city council to pass as well... Our address is at the bottom of this newsletter, and our website too.

--- War on Want studies Gambling Bankers ... War on Want, active in Great Britain on workers rights and poverty, has begun a major Tobin Tax campaign called --It's Time for Tobin!. An in-depth study on British banks, entitled --The Global Gamblers-- is now available from them for 10 pounds. Write War on Want, Fenner Brockway House, 37-39 Great Guildford Street, London SE1 0ES. Their website is www.waronwant.org

--- European Parliament hedges on TobinTax ... The European Parliament of the European Union released a study called --The Feasibility of an International Tobin Tax-- and admitted that it might be an attractive alternative... at least under some circumstances! They are hedging their bets a bit, but it is a start. The study was done by the EP's Directorate General for Research, Economic Affairs Series, ECON 107 EN. Contact the editor Ben Patterson in the Directorate Generals office, at gpatterson@europarl.eu.int

--- Check out current and past issues of FPIF, Foreign Policy in Focus. Some of the best analysis available in the US... done by the Institute for Policy Studies and the Inter- hemispheric Resource Center. It has discussed the Tobin Tax in several issues. See the latest --Repairing the Global Financial Architecture: A Special Report --- email irc@irc-online.org

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HEADLINE 4 -- INTERNATIONAL REPORT:

Yes, yes, groups are saying YES to the idea of the Tobin Tax.

--- Parliamentarians for Global Action .. At the United Nations building in New York on September 29, 1999, a forum of the Parliamentarians for Global Action examined the Tobin Tax for nearly two hours. Lorne Nystrom, a Canadian MP (Member of Parliament) presented a Tobin Tax proposal in a twenty-minute speech, followed by an interesting presentation on financial transaction taxes in Brazil, by Brazilian Deputy Marcos Cintra. The discussion which followed, among parliamentarians from all over the world, was quite supportive. PGA will be including a Tobin Tax element in their new Plan of Action.

--- World Council of Churches. In Harare, Zimbabwe, during December 1998, several thousand delegates met and crafted their platforms and issues statements for the next eight years. The World Council of Churches Eighth Assembly includes the Tobin Tax in its platform, with the words "cooperating with initiatives for a new financial system including a tax on financial transactions (Tobin tax) that can be used to support the development of alternative options, limits to the un-regulated flow of capital, etc." The WCC plans to be active on this issue in the coming years.

--- Leaders in Finland and Canada are being encouraged to do more than rhetoric. Quoting an August Halifax Initiative update, "In meetings with various Liberal MPs, Halifax Initiative member groups have learned that some feel that Canada can not follow up on the motion internationally without damage to its credibility. We believe their first concern should be the loss of domestic credibility that results from disregarding the will of Canadians."

--- In Finland, the Commerce/Industry Minister Erkki Tuomioja explains the situation:

"People from all over the world have sent me messages of encouragement after the publication of an article in « Le Monde Diplomatique » indicating that I was one of the instigators of the Finnish governments initiative to back the Tobin Tax.

I thank you all for your support but, at the same time, I must be realistic and inform everyone that they should not hope for rapid progress in this domain. This is also true for the Finnish government, which is composed of a large coalition of 5 parties within which certain elements are likely to oppose any concrete measures to introduce such a tax.

Despite the fact that international finance and commerce are not part of my government portfolio, I will do my utmost to push the Tobin Tax, working in close cooperation with various NGO's who have done a considerable amount of work on the theme of globalisation in order to move towards a more socially equitable world order..."

--- quoted from SAND IN THE WHEELS (n°05), ATTAC Weekly newsletter - Wednesday 09/29/99

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INTERNATIONAL HEADLINES (continued from above)

--- Malaysia back in favor on capital controls .. Malaysia's innovative and sovereign approach to currency controls has been vindicated. Shortly before the IMF and WB meetings began, major media began to celebrate Malaysia as a success story. Its experiment with sovereignty over monetary policy, and its enactment of capital controls when they were not popular among the IMF-ers, resulted in a revived economy. Along with Krugman, the Washington consensus may be starting to shift on this key point.

--- World Bank shift in philosophy? .. the World Bank has publicly shifted its philosophy on capital controls.... On Sept. 15, Joseph Stiglitz, the chief economist for the World Bank, stated, "There has been a fundamental change in mindset on the issue of short-term capital flows and these kind of interventions.... A week before, the IMF had praised Malaysia for its skillful handling of capital controls. (report courtesy of STOP-IMF, Robert Weissman, <rob@essential.org> Sept 22.)

--- Ecuadoran crisis continues. After its currency devaluations, gasoline price increases, massive street actions, and states of emergency, the latest action of Ecuador is just short of debt default. As Ecuador threatened in the end of September to withhold $50 million in interest payments to bondholders, a team of creditors met with government officials to organize an emergency debt restructuring, a move somewhat similar to proceedings in bankruptcy. (Washington Post, Sept. 28, 1999)

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HEADLINE 5 -- UNITED STATES REPORT:

--- New congressional bill soon? .. Rumor has it that Rep. Peter DeFazio (Dem, Oregon) plans to introduce a specific Tobin-Tax bill this coming session. Letters of encouragement to him are certainly in order. Emphasize that financial transfer taxes can be enacted domestically, thus avoiding the sovereignty debate, and details can be worked out between nations through mechanisms for multilateral cooperation.. The purpose is to prevent future financial crises, restore national sovereignty over monetary policy, and to generate revenue for urgent needs, such as global warming, the AIDS crisis, etc.

--- Treasury is key....Letters to Larry? .. Speaking of citizen encouragement, since most active groups recognize that the US Treasury is the key policy agency to convince on this issue, how about a Letters to Larry campaign? What would you like to say to him? We suggest you tell him that capital controls and financial transaction taxes are good macroeconomic policy tools, ones that might prevent future financial crises... especially if done through multilateral cooperation and sovereign national action. Tell him that Tobin-style taxes are national, not "global". And that it is time for the US Treasury to shift its position and show leadership on this important issue. You might even suggest he dig up some papers he wrote on the subject in 1990, when he favored the idea....

--- Council on Foreign Relations too? .. The tide may be turning: even the Council on Foreign Relations, which put together a high-level task force (meaning lots of bankers and corporate types, along with a few ex-presidential advisers) on international financial architecture, recommended a tax to slow down short term capital inflows. Their press release can be found at <http://www.foreignrelations.org/public/pubs/IFAPressRelease.html>

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HEADLINE 6 -- ANNOUNCEMENTS:

On related issues of solidarity.....

--- Peoples Marches... The March of the Americas began Oct. 1 in Washington DC, and continues during October, ending November 1 at the United Nations in New York City, "to document and protest economic human rights violations caused by the US government." Contact the Kensington Welfare Rights Union, at <http://www.libertynet.org/~kwru>, or the Women's Economic Agenda Project, <http://www.weap.org>

--- ..... At the same time, the Peoples' March to Brasilia is focusing on Brazil's economic crisis, its impact on the poor and on landless workers, and the role of international capital, from July 26 thru mid-October. See <http://www.pt.org.br/san/indsan.htm>

--- Nov. 4 is an International Day of Action in solidarity with Chiapas... to oppose NAFTA expansion into a new trade agreement, FTAA. Mobilize in Toronto Canada, Oct. 31- Nov.5, or organize a Nov. 4 event in your community.

--- Go to WTO, go to Seattle.... From November 29 to December 3, there is only one place to be, in solidarity....on the streets of Seattle, or on the streets of your city.... Stop the WTO's "race to the bottom" and demand instead that nations stop, look, and figure out how they can instead "raise the floor" for higher international standards to protect workers and the environment. For details, contact mdolan@citizen.org, or search the web for WTO actions near you.

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The Tobin Tax Update is a monthly newsletter of the Tobin Tax Initiative USA. The Tobin Tax is a proposal to tax cross-border currency transactions, for the purpose of reining in market volume and volatility; restoring national sovereignty over monetary policy; and raising substantial revenue for urgent global environmental and human needs.

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Tobin Tax Initiative USA ...
Ruthanne Cecil, Project Director and Newsletter Editor
see our website at <http://www.tobintax.org>
email <cecilr@humboldt1.com>
Tobin Tax Initiative USA, International Innovative
Revenue Project, Center for Environmental Economic
Development, P.O. Box 4167, Arcata, CA 95518-4167 USA
TEL (707) 822-8347 FAX (707) 822-4457
Building Local Support for Global Solutions...

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Ruthanne Cecil