1,000 Economists Voice Support for Financial Transaction Tax

A thousand economists, including Millennium Development Goals advocate Jeffrey Sachs, have joined the call to tax financial market transactions to raise money for programs in the developing world.

“The financial crisis has shown us the dangers of unregulated finance, and the link between the financial sector and society has been broken. It is time to fix this link and for the financial sector to give something back to society,” the economists wrote in a letter to G-20 finance ministers and philanthropist Bill Gates, whom current G-20 chairman French President Nicolas Sarkozy commissioned to help identify innovative ways of financing global development efforts.

>> France Looks to Bill Gates for Aid Financing Schemes

Sarkozy has previously aired support for implementing the financial transaction tax.

>> In Davos, Nicolas Sarkozy Calls for Financial Transactions Tax

The economists argued that implementing the financial transaction tax, even at very low rates of 0.05 percent or less, could mobilize hundreds of billions of dollars annually.

“This money is urgently needed to raise revenue for global and domestic public goods such as health, education and water, and to tackle the challenge of climate change,” they said in the letter, which was obtained and published by the Guardian. 

Read more development aid news.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.