Sir, – The German finance minister Wolfgang Schäuble (Front page, December 26th 27th), offers a potentially historic opportunity in pressing for a tax on financial transactions – the so-called Tobin Tax – if we campaign to ensure the revenue generated is used to help the world’s poor. This is a uniquely equitable tax at a time when all around the world aid budgets are slashed while support to financial institutions increases. Those with no belt to tighten are hit the hardest. The poor of the developing world didn’t create the crisis, but they experience it hardest as less money flows in support of essential programmes.
Unsuccessful banks receive bailouts while successful international health programmes are curtailed or close for lack of funds. By 2009 alone banks had received 1,000 times more money in bailouts than was needed to fill the funding gap in the Global Fund for HIV/Aids.
Last year the Global Fund was so chronically underfunded it delayed its funding round. The so- called Tobin Tax offers us a chance to reverse that trend, by taxing the bank operations that caused the crisis and giving the tax revenue to those who are paying, in many instances with their lives. Ireland has a commendable record in seeking to defend the world’s poor, and we now have a valuable opportunity in seeking to ensure that the revenue generated from such a tax is used to support those who have suffered most in the crisis created by the banks. – Yours, etc,