Can the G20 mend the economy? Could Robin Hood help?
The Robin Hood Campaign looks at the opportunities of the G20 meeting.
Today the G20 meets for 48 hours to discuss the state of the world economy. It is a meeting of leaders from the richest countries and includes the UK, the US, Russia, Japan, Brazil and China. The G20 was created as a response to global economic crisis in late 90s.
Over 10 years and two crises later, we still have a broken global economic system. And it's hurting the world's poorest people hardest. This time we need action.
In the few weeks run up to the G20 the campaign has enjoyed unprecedented levels of support.
Archbishop of Canterbury Rowan Williams writing in the Financial Times urges UK Prime Minister David Cameron to listen to the 'powerful sense' of a Robin Hood Tax at the G20. Dr Williams' call echoed those made by the Pope and Archbishop Desmond Tutu in recent weeks.
Wolfgang Schäuble, Germany's finance minister, put out a strong call for agreement on the tax at the G20. This is backed by a new poll showing 75 per cent of Germans support a Robin Hood Tax with revenues going to climate change and development.
Professor Jeffrey Sachs wrote this wonderful piece in the Huffington Post urging US President Barack Obama to sign up to act for the 99 per cent, sign up to this tax and bring the fight back to congress. Last week Sachs also sent an open letter to UK Chancellor George Osborne reminding him there is a plan B, this is it.
100 economists urged Mr Osborne that the Government must change strategy and enact emergency measures to avoid a double-dip recession. Included in these proposals is the introduction of financial transaction tax.
If you missed it - discussion of leaked Gates report from Spetember.
South Africa has also lent its support to a Robin Hood tax at the G20 level.
Public demand contuines to grow: in the UK over 80,000 people have written to David Cameron and in Europe over 500,000 petitions signatures were given to Sarkozy.
And on October 29th actions demanding a Robin Hood Tax took place on over thirty cities across the world from canoeing Robins in Chicago, marchers in Las Vegas to a life-sized casino game in London.
Anger at the banks has failed to subside. The sticking plasters and empty words have not acted as the placebos intended.
It is clear asking the banks to regulate themselves is not going to work. As austerity measures bite people are losing their jobs, homes and public servces – ordinary citizens are contuining to pay the price for a party they weren't invited to.
With people occupying hundreds of cities across the world, and millions of others just shaking their heads at the television news it's clear something is very wrong.
While forms of action may differ from person to person and place to place there is a shared anger and distrust at a financial and political system that continues to prioritise profits over people.
The question is whether at this G20 world leaders will take this opportunity to start building new contracts: between political institutions and society; and the banks and society. One seems near impossible without the other.
This new contract must rein in the runaway financial sector and ensure it starts to pay the back the cost of its crisis – a crisis that has pushed over 200 million people into extreme poverty and led to budget cuts in the poorest countries. Africa is now looking at the lowest level of aid in 15 years as aid budgets of rich countries are slashed. This means fewer children in schools, less healthcare and millions of lives wasted or lost.
A focus on economic growth is not enough to tackle poverty and help those hit hardest by the financial crisis. It's clear we can no longer rely on the 'trickle down' effect. From 1981-2001, when economic growth was at its height, the world economy grew by $19 trillion but people living in extreme poverty received only 1.5 per cent of that.
From 1981-2001, when economic growth was at its height, the world economy grew by $19 trillion but people living in extreme poverty received only 1.5 per cent of that.And in rich countries the gap between the 1 per cent and the 99 per cent grows ever wider. We need our leaders to look at measures that do more than just fuel growth.
One of the solutions on the table at the G20 to do this is the Robin Hood Tax. This tax could dampen speculation and allow the financial sector to add more value to the real economy, in addition to generating tens of billions to help fight poverty at home and abroad and tackle climate change.
It would also send a strong signal that leaders are serious about making the financial sector work in the interests of people, not just profit.
At the summit, European leaders such as Sarkozy and Merkel will be pushing hard for G20 countries to commit to such a tax.
Bill Gates will also be presenting his report commissioned by the G20 to look at methods for 'innovative financing' - a financial transaction tax is high on that list. The question is will leaders listen to the people, or continue to prioritise the financial sector agenda?
For more information see this briefing paper on the URC website