Press Responses - April 7, 1999

PUBLICATION: The Edmonton Sun
DATE: 99.04.07
PAGE: 11
SOURCE: EDMONTON SUN
FREELANCE BYLINE: Ray Martin

CANADA LEADS FIGHT ON TAX SPECULATION

The world is changing dramatically. Technology is transforming the way we live, learn and relate to others.

The cliche that the only constant we have is change itself, is largely true.

Technology is neither good nor bad. It is how we apply it to the human condition that determines whether it is a positive or negative.

Unfortunately, some changes have been used not to enrich the life of the

average person but only to make the wealthy and powerful more wealthy and powerful. Driven by the greed of international currency speculators and large corporations, economic change made possible by modern technology has created economic chaos.

Globalization has become the buzzword in Canada and every country. Multinational corporations and international money speculators are becoming more powerful than the people we elect to govern us and safeguard our way of life. Democracy is being eaten away at in many parts of the world, including Canada.

Multinationals have acquired more wealth, power and influence than most countries. Bond marketers determine the economic policies of every nation. Even the U.S. dances to their tune.

The reality of globalization is that there is a growing gap between rich and the poor. Today, 225 men and women have a combined wealth of over $1 trillion, an amount equal to the annual income of half the world's population. At the same time, there are growing numbers of people with no food, no clean water and virtually no hope for any kind of future.

As well, technology has made it possible for investors and speculators to shift huge sums of money around at breakneck speed. This is what largely led to the collapse of many Asian economies and is still undermining world economic conditions today.

Bond traders aside, surely technology and globalization should be used to help humans deal with real problems.

The good news is that there seems to be a growing awareness that changes have to be made. Governments worldwide are coming around to the idea of imposing controls on the lightning-fast flow of international capital.

A growing number of economists and politicians are considering proposals that would "throw some sand in the gears of capital markets." This is in sharp contrast to attitudes of a few years ago, when ideas such as the Tobin tax were given short shrift. The Tobin tax, named after Nobel Peace Prize winner James Tobin, advocates putting a foreign exchange transaction tax on short-term currency speculation. This would restrain destructive speculation without discouraging real investment.

Such a tax would help exporters and importers by stabilizing exchange rates, allow governments to be more independent of market forces and allow them leeway in dealing with their own agendas.

Also, it could provide revenue that could be used by the United Nations to deal with the global problem of poverty.

What is encouraging is that the House of Commons is providing leadership on this issue. An NDP motion, M-239, was recently passed by Parliament, 164 to 83. It read, "that in the opinion of the House, the government should enact a tax on financial transactions in concert with the international community."

As Lorne Nystrom, the NDP financial critic said, "This will finally give the Tobin tax the fighting chance it deserves." Canada is the first Parliament in the world to pass such a motion.

Let us hope that the Liberal cabinet follows up on Parliament's will. Finance Minister Paul Martin now has a powerful tool if he chooses to press this issue with other governments. It should be his duty to do so.

This is one time that we can be proud of our federal politicians. Not only are they dealing with the pressing issues of the day, they are taking the lead in the world. Can we hope for as much from other countries' politicians? I believe we can but only time will tell.