Innovative sources of financing for development: The Currency Transaction Tax
Author: Rodney Schmidt, North-South Institute
The Currency Transaction Tax (CTT) is one of the new mechanisms being considered by many governments, international institutions, and others to raise large amounts of independent, global, and stable monies. The revenues are to be used to finance international development and other projects addressing global issues, such as public health. This article argues that of the possible new sources of finance for development, the CTT is the most immediately practical and effective. It is safe and easy to implement, and can immediately raise at least US$ 33 billion of global, independent, and stable revenue each year. The CTT therefore appears to be the most immediate and effective new source of financing sought by the Monterrey Conference on Financing for Development in 2002, and, since then, by the UN and the “Leading Group on Solidarity Levies to Fund Development”.
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