Innovative Approaches to Revenue



In the emerging context of a globalized economy, there continues to be a lack of adequate funding for worthy projects. Global problems such as poverty and hunger, population growth and unemployment, global climate change, deforestation, declining fisheries and pollution threaten local communities worldwide. Projects which could help to address environmental degradation, provide disaster aid, combat poverty and create jobs could amount to as much as $600 billion annually. Private doners have not been able to meet the need, and some nations continue to cut back on aid budgets. New approaches to international public finance may provide part of the answer, if citizens encourage their national governments to participate in the international cooperation necessary to bring this about. Sizable amounts of additional revenue for local projects around the world could help turn the tide towards global solutions in the 21st century.

We have compiled information on the various types of innovative proposals for international public revenue. There are a number of proposals under discussion.

The proposals include:

Carbon/Green Taxes

Definition:

"Green taxes" or carbon taxes operate under the premise that economic activity impacting the environment on a large scale (i.e. Global Climate Change) is not accountable for the costs of such impacts. A tax would internalize this cost into industry budgets, more closely reflecting the true costs of environmental degradation. This mechanism provides incentives for companies to utilize renewable resources and control pollution.

Links:



International Fees

Definition:

Concepts include fees for services in the 'global commons'. The 'global commons' includes shared geographical areas of the world, such as the open seas, and certain shared treaty areas, such as Antarctica. The idea also includes fees for international postal services, global security, international airline flights, and other such services which benefit citizens beyond single borders.

Links:

[none]


Peace Dividend/Peace Conversion

Definition:

The end of the Cold War signaled the possible beginning of a transition to peaceful expenditures. This has been largely the domain of national legislatures, and much of the potential revenue has shifted imperceptibly to other areas, without an overall national program or vision. See the links below for some of the proposals and analysis.

Links:



Informal Economies and Local Barter

Definition:

The informal systems of economy in many countries range from thirty to fifty percent of total economy. These are legitimate alternatives to the official economy, and include such items as barter and informal trade, traditional sharing and gifting, household economics (often unpaid women in the home), food banks and shelters, people's economic organizations, food buying clubs, and some forms of light industry. There are also proposals for local currency and formal barter exchanges.

Links:



Security Insurance Premiums

Definition:

A few policy papers have been written on this, but nothing online so far. The idea is that nations would pay into a budget for international security, and this would pay for peacekeeping, interpol, etc.

Links:

[none]

Bibliography:

Daniel M. Smith, 'The United Nations Security Insurance Agency (UNSIA) Proposal: A Preliminary Assessment,' in The United Nations: Policy and Financing Alternatives: Innovative Proposal by Visionary Leaders, Harlan Cleveland, Hazel Henderson, Inge Kaul (eds.), Apex Press, NY (1995)

Debt Restructuring/Forgiveness

Definition:

Sometimes both public and private lending institutions will restructure loans to underdeveloped nations, to improve the terms of payment so that the nations will not default. This should be encouraged, but in many cases it is inadequate, because even interest on the debt is causing some national budgets to cut back on basic services (safety nets). In these situations, the poorest people feel the effect, in cuts in health, education, disaster services, etc. The solution may lie in proposals for outright debt forgiveness. See the suggestions of Jubilee 2000 below.

Links:




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