Date: Wed, 30 Sep 1998 01:44:53 -0300 From: •••@••.••• (R.Magellan) Subject: Tobin tax and indebtedness Dear members of the RN list: I am writing a book whose title is "Economic Globalization and Law". One of its chapters will deal with the Tobin Tax proposal. I have been amassing research material on this issue and I could send a copy at the request of anyone. It is bulky and a good part of it is written in English. A good source of reasearch on both the Tobin tax and MAI is found in the Attac site, but it is written mainly in French. I won't bother you with some of the legal technicalities about Tobin tax. Nevertheless, IMHO they are enough to wipe out this fair idea, unless the countries involved either build an effective supranational tax authority or frame it in the United Nations structure. In this latter case the UN should be empowered with the effective enforceability that it has lacked since its very inception. Do these alternatives seem rather utopian? Yes, they are, since both of them will necessarily require a very efficient inspection power that even the most advanced countries lack today. In either case, these alternatives would pave the way for a formal world government. I am for it, I think it is an historical imperative and an urgent rational necessity, but in the present perspective anything like it would rather be a reconstruction of the former colonial empires. A democratic and progressive globalization must be structured by the roots, i.e., by internationally organized people, neither by TNCs nor crony (or even crooky !) professional politicians and state bureaucracies. There are enormous practical difficulties to implement the Tobin tax. In order to evade current taxes and to overcome exchange controls, the financial system, both at international and national levels, is able to develop very complicated and fraudulent operations which spread throughout many countries with the help of custom-built unfriendly softwares (better saying: very amicable ones to the rich....). These operations are seldom traceable in their whole extensions and consequences by the authorities even when there is an international joint coöperation. Auditors know them better but they also often get lost in the maze. Furthermore, experience shows that tax loopholes (or lax rules), both explicit and implicit, are always present in the making of a set of rules. Tax planning (or legal tax avoidance) would certainly be widely used as it is used nowadays to cope with domestic legislations. So, Richard Moore has a good reason to say about the Tobin tax proposal: "But if the US supports it, then you know it's a trap." The present French government supports it (or is it just paying lip service?) Anyhow, it will be a trap up to the day that the people of US realize that TNC capitalism (transnational corporations) is doomed to collapse someday with the general expropriation of every worker on this small and ravaged planet and with the unavoidable technological unemployment. Maybe Mother Nature will shut it off before the world economic disorder does, and in this case menacing the very survival of humankind. Richard is also right when he says about debt forgiviness, a theme akin to the Tobin tax proposal: "it is a sham. Instead of forgiveness, what is being proposed is the rewriting of short-term debt into long-term debt, so that more short-term loans can be made. And to secure the long-term debt, it is proposed that national oil fields and other assets be signed over to IMF lenders." An exception among the promoters of this proposal may be found in the Roman Catholic Church: it has been campaigning for the complete write off of the debts of the poorer nations, what bears the same effects of an outright revolutionary confiscation. Another utopian alternative? Yes, it will remain so until the day that Shylock --the financial capital international network--- is smashed all over the world. It may happen when humankind becomes conscious that financial capital has definitely become a socially useless and dangerous parasite. Even so, what is meant by the expression "poorer nations"? It is always referred to as a reduced group of small nations so poor and backward that no one can expect them to pay their debts in any circumstances. Would this "generous" forgiviness be extended to big borrowers with large industrial infrastructures as Brazil, Korea, Mexico or Russia? Of course not, although the people of these countries suffer a lot from the very harsh terms of the SAPs (structural adjustement programs) imposed by IMF and G7 governments in order to service their debts. I would like to draw attention to an important feature of international indebtedness that is seldom disclosed by the media. A good part of the debts, even the most part of them, are juridically not public debts but rather private ones, including debts of the local TNC affiliated companies and debts arising out from pure international financial speculation! So, to say that nation A or Z owes US$ X billion is not correct. It must be said, for instance, that local banks (both national and foreign ones) owe 35%, local corporations owe 15%, TNC branches and subsidiaries 30% and the national government the remaining 20%. National governments, however, are generally held liable for the whole amount, either politically or juridically, as a guarantee of repayment. As a last observation, it is not the ability to repay debts that is at stake in all these never ending crises, but the ability to pay increased interest on them. To the lender, the best loan is that which is never paid but that which bears an ever-increasing flow of continuous payments. Best regards, C. Roberto. ######################### PS from Jan: We of CDR first "met" César Roberto when he enthusiastically translated the manifesto we were sending out into both Spanish and Portugese, the first translations we had! As you will see from the above message, this guy not only masters several languages handily, he also knows a lot (and not just about the Tobin tax, incidentally). Unfortunately, now and then we lose contact with him, most recently for over a month when his computer crashed (with a loss of several messages destined for us as well). Brazil has been hit hard with financial turmoil; like many people, César Roberto can barely make ends meet. So getting his computer fixed, was, I am sure, no easy task. I just couldn't send this message out without sending César Roberto a warm "welcome back" from all of us! another PS: Besides sending us translations and so on, now and then César Roberto urges us to write letters on behalf of political prisoners. As a long-time Amnesty International member, I know these appeals make a difference. Here's one for some students in Nigeria (whose govt. is notorious for executing Ken Saro-Wiwa and othes on trumped up charges): Date: Tue, 29 Sep 1998 14:03:15 -0300 From: •••@••.••• (R.Magellan) Subject: URGENTE STUDENTS ARRESTED/PRESOS EN NIGERIA ------------------------------------------------ Nigerian Defence Committee, PO Box 6977, London N1 3 JN 25th September 1998 NIGERIA¹S MILITARY GOVERNMENT ARREST ACTIVISTS THE FACTS: On Saturday, 12th September 1998, at the opening ceremony of the NUGA games (University games) students from various campuses converged peacefully on the University of Lagos to protest against the continuing victimisation of student activists (expulsions and suspensions from courses). They were also protesting against the imposition of fees. Present at the games was the Chief of General Staff, Rear Admiral Mike Akhigbe. He is the second in command to Abubakar himself. He personally ordered the arrest of three students, Yemisi Ilesanmi (Obafemi Awolowo University, OAU), Ponle Oloyede (president UNILAG students' union), and Sowore Omoyele (former president UNILAG students' union). While trying to seek their release two others were arrested the second day, Saint Omotaje Jericho the NANS zone D co-ordinator and Kehinde the Vice President of the UNILAG students' union. Ponle Oloyede and Kehinde were later released. But the others are still in custody (that is the latest news we have today, 25th September) at the notorious State Investigation and intelligence Bureau, SIIB, headquarters at Panti. When they were arrested on Saturday they were first taken to the Special Anti-Robbery Squad headquarters where they were harassed and beaten and kept with criminals who further dealt with them. The regime is already getting embarrassed with the case and the Chief of General Staff, Rear Admiral Mike Akhigbe, announced on television that the students had been released. This is not true, but it shows that the regime is embarrassed. It is trying to portray a ³liberal² image, hoping to get more aid from the West. Only by giving this question the biggest amount of publicity possible will it be possible to pressurise the regime into releasing these students. The studentes were taken to court on Friday 18th September and the hearing of the case comes up again this Friday (25.9.98). Taking them to court is actually an attempt by the state to save their face and to hold them for a longer time, as they will always adjourn the case.The regime is starting a staged trial. The reason they want to delay their release is because they played leading roles in the protest. URGENT ACTION NEEDED As many letters from organisations and individuals are essential. We are listing below the e-mail addresses and fax numbers of some Nigerian newspapers you can write to and direct letters to: See below for addresses of embassies/high commissions. THE GUARDIAN •••@••.••• and fax: ++ 234 1 4528522 VANGUARD •••@••.••• or •••@••.••• THE PUNCH •••@••.••• and fax: ++ 234 1 4920205, 4972816 CONCORD fax: ++ 234 1 4960095 THIS DAY •••@••.••• and fax: ++ 234 1 4937779 THE POST EXPRESS •••@••.••• and fax: ++ 234 1 5453436 The press in Nigeria is giving the regime support now, at least some of them, but they are all trying to flash their new acquired Internet facilities, so they may print Letters to the Editor coming from outside the country to boost their ego. Copies of the messages should be sent to: •••@••.••• MONEY IS NEEDED FOR THEIR DEFENCE! In Britain we are launching a ŒNigerian Legal Defence Fund¹ to help the legal costs, etc., of those detained. They will be incurring legal costs when put on trial, and while they are in prison they also need some money. The campaign in Nigeria itself also needs financial help badly. These people are in dire straits as far as money is concerned and they need every penny we can raise in Britain. We are appealing for donations from individuals and labour movement bodies. Cheques should be made payable to the ŒNigerian Legal Defence Fund¹ and sent to PO Box 6977, London N1 3JN. The following is a note smuggled out of the detention centre: ³Cell 2, Panti, 20-9-98 I appreciate the efforts you are making outside. This regime must be put to shame, people must be made to understand that a military regime will always be a military regime, an aberration, whether it be an Abacha or an Abubakar regime. It must not be trusted. The DPP (department of public prosecution) and some commissioners that the students went to see on our behalf asked them if I am mad or smoke Igbo (Indian hemp), they feel that is the thing that could have given me the audacity to challenge Akhigbe and his cohorts to their faces. They have forgotten that I have Justice by my side and I shall not be cowed, broken, or intimidated, they can arrest and imprison the physical body but they cannot do the same to the spirit. The stupid goats have already started the Omole'(OAU Vice chancellor) trend, saying we should write a letter of apology to them before we are released. Well I have told them that I'd rather die in detention than apologise to the bastards, I wish I was there to tell them to their faces. This regime has already laid the foundation for its defeat and we use their disadvantage to our advantage. Agitation must continue and it must be intensified. I intend to sue the CGS, CP and others for assault and battery, attempted murder, defamation of character, sexual harassment, public disgrace and embarrassment. Their brutality on me was filmed by some media houses, Channels, AIT, DBN, TNT had a good picture of it on the front page of one of its editions. Please try to get those things, they are vital evidence against this regime. And try to put things in motion through a lawyer. I promised Akhigbe to his face that I will fine him and I intend to carry out that promise. We will discuss better when we meet. We shall overcome. Yours truly. Marxist Greetings. A LUTA CONTINUA. VICTORIA ACERTA. Yemisi Ilesanmi² Here follow the addresses of some of the Nigerian embassies: AUSTRALIA Nigerian High Commission 27 State Circle , Box 241, Civic Square ACT 2208, Canberra Telegraph: NIGERIA CANBERRA AUSTRIA Embassy of Nigeria Rennweg 25, A-1030 P.O. Box 262, 1031 Vienna Telex: 047-11583 BELGIUM Embassy of Nigeria Avenue de Tervuren 3B, 1040 Brussels Tel: 735.40.71, 735.40.72 Telegraph: NIGERIAN BRUSSELS CANADA Nigerian High Commission 295 Metcalfe St. Ottawa, ON K2P 1R9 Tel: (613) 236-0521, -0522, -0523 Telegraph: NIGERIAN OTTAWA DENMARK (This Embassy also serves the following countries SWEDEN, Finland & Norway) Embassy of Nigeria Box 628, 11427 Stockholm, Sweden Tel: 08/246390 (6 lines) Telegraph: NIGERIAN STOCKHOLM FRANCE Embassy of Nigeria 173 Avenue Victor Hugo, Paris 16E Tel: 704-68-65, 704-68-66, 704-68-68 Tel: EMBNIGERIA PARIS GERMANY Embassy of Nigeria 53 Boom-Bad Godesberg, Goldbergwang 13, Bonn Tel: 322071, 322075 Telegraph: NIGERIAN BONN ITALY Embassy of Nigeria Via Orazio 14 00193, Rome Tel: 380341-44 Telex: 610666 PAKISTAN Embassy of Nigeria Box 22465, 22466 Telegraph: NIGERIAN ISLAMABAD PORTUGAL Embassy of Nigeria Avenue Frei Miguel Contreiras 54A 10, Lisbon RUSSIA Embassy of Nigeria UL. Kachalovia 13, Moscow Tel: 290-37 85 Telegraph: NIGERIAN MOSCOW SPAIN Embassy of Nigeria Terra de Madrid Pits, 16 Apto 1 Plaza de Ispana 18, Madrid Telegraph: NIGERIAN MADRID UNITED KINGDOM Nigerian High Commission 9 Northumberland Avenue London WC2N 5BX Tel: 01-839 1244 Telegraph:NIGERIAN LONDON UNITED STATES OF AMERICA Embassy of Nigeria 1333 16th Street, NW Washington, DC 20003 Or Consulate-General of Nigeria 575 Lexington Ave., New York, NY 10022 Telegraph: NIGERCON NEW YORK Or Consulate-General Of Nigeria 828 Second Ave, New York, N.Y. 10017 Tel: 212-808-0301 -------------------------
