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Launch of campaign on International Solidarity Levy

Public Services International Asia Pacific Regional Organisation, together with the Building and Wood Workers’ International (BWI) and Union Network International (UNI), launched a campaign on the International Solidarity Levy. The campaign launch was held in Jakarta, Indonesia, on 11-12 August. Forty-three participants from twelve countries represented affiliated unions of PSI, BWI and UNI, and ITUC AP, SASK and LO-Norway. The campaign was co-sponsored by FES Indonesia office.

The idea of an international solidarity levy was first proposed by then French President Jacques Chirac at the World Economic Forum (WEF) in January 2005. The proposal was to raise additional funding of 50 billion dollars to support developing countries through an international currency transaction tax, fighting tax evasion, taxation on air and maritime transport fuels and an air ticket levy. Originally, international solidarity levies were inspired by the proposal of Professor James Tobin in 1972 on currency transaction tax. He suggested a new system for international currency stability, and proposed that such a system include an international charge on foreign-exchange transactions. For almost 20 years his proposal did not receive serious attention, but in 1994, the United Nations Development Programme (UNDP) proposed the use of revenue from a Tobin tax for the eradication of poverty in developing countries.

Why introduce international solidarity levies? 
PSI APRO has taken the lead on these issues.  However, these levies should be implemented nationally and coordinated internationally. One way of doing this is by establishing a cooperative global arrangement between PSI, ITUC and the Global Union Federations. Mr. Katsuhiko Sato, PSI AP Regional Secretary, said during his keynote message, “The international solidarity levies would generate additional revenue to supplement Official Development Assistance (ODA) which is meant to achieve the Millennium Development Goals. Let’s start to strongly campaign to set up the international levy in the Asia and Pacific, and even in the world.”

The workshop was broadcast in the state-owned television station, Televisi Republik Indonesia (TVRI), and Mr. Katsuhiko Sato was interviewed live on the English News Services programme where he presented the campaign.

Professor Takehiko Uemura, Yokohama City University, explained that the creation of a solidarity levy is one of the crucial policy measures to build a sustainable welfare society at global level.  Each country imposes tax on the rich, redistributing revenue to the poor, using it for education, medical care and welfare, solving various problems and stabilizing through taxation.

Pierre Habbard, OECD – TUAC, outlined on his video presentation that the objective of the global tax is to change the rules of the game itself, of financial regulation, to protect people and working families against financial market excesses. That means putting limits on financial leverage, controlling executive and shareholder remuneration, protecting working families against predatory lending, and decent, adequate and predictable pensions. 

Kee Beom Kim, ILO Jakarta, made a presentation on “Labour market challenges in Asia and the Pacific: Need for comprehensive and innovative responses.” He gave an outlook of the projected challenging situation in Asia Pacific and at the global level, saying that addressing challenges requires comprehensive and innovative responses including effective dialogue and partnership between governments, employers and workers

Christopher Ng, UNI APRO Regional Secretary, said during the panel discussion that the introduction of international solidarity levies is moving beyond loans from the international financial institutes to innovative financing mechanisms.

The PSI, BWI, and UNI:

1. Will invite ITUC and other Global Union Federations in the region and globally to join the campaign;
2. Will jointly develop promotional materials and background documents for the purpose of educating the membership, community, and the media;
3. Will invite likeminded civil society organisations to join the campaign;
4. Will lobby elected officials prepared to promote the ISL;
5. Will encourage governments in the region to join the Leading Group on Innovative Financing for Development;
6. Will lobby International Financial Institutions for the introduction of an ISL; and
7. Will seek trade unions and civil society organisations’ representation on the Working Group on Financial Transaction in the Leading Group.

For more information, please contact PSI AP Regional Secretary: katsuhiko.sato@world-psi,org

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