ACTION ALERT: Urge Governments to Back New Proposal

[Guest guest]

GLOBAL AIDS ALLIANCE

August 23, 2005

GLOBAL ACTION ALERT

URGE YOUR GOVERNMENT TO SUPPORT NEW PROPOSAL ON DEVELOPMENT FINANCING;

FRANCE AND OTHER COUNTRIES UNVEIL EXCITING NEW PROPOSAL, WHICH COULD HELP

THE GLOBAL FUND!

(note -- there will be a conference call re this proposal August 30 -- send

us an email if you would like to take part)

ISSUE: There is a massive shortfall in resources that, if provided, could

be effectively used in the fight against killer diseases around the world,

particularly AIDS, Tb and Malaria. But, a group of countries, led by

France, has proposed a new way to generate needed funding using a levy on

airline ticket purchases. If you lived in a participating country, you

would pay a small fee on top of the regular price of any international

airline ticket that you purchase. The proceeds of this would go to

international anti-poverty programs. The program would not adversely affect

the airline industry or poorer travelers (see details below). It would not

take the place of assistance from wealthy governments to anti-poverty

programs. It could generate as much as $2 billion a year in desperately

needed resources.

TAKE ACTION: Send a letter from your organization to key poicymakers in

your government. Let your government officials know you support this

proposal and you want to see your government participate in the program's

development. Urge that the program, called the " Solidarity Contribution on

Airplane Tickets, " be developed in a way that specifies that the Global Fund

to Fight AIDS, Tb and Malaria will receive a substantial portion of the

proceeds.

WHO TO CONTACT: Send a letter, fax or email to the International Development

Minister, Secretary of State, Minister of Foreign Relations, etc. Send a

message as well to your Member of Parliament or National Congress. Urge the

program be set up as soon as possible. Note this would not be a " global tax

imposed by the UN " -- it will be up to each country whether they wish to

participate.

Contact info here: http://www.aidspan.org/globalfund/appeal/addresses.htm

This link may also help: http://www.nla.gov.au/gov/

Note -- US participation, while not essential, would be welcome. In the US,

two legislators from Alaska (Rep. Young and Sen. s) are particularly

critical, since they chair the Committees that oversee the airline industry!

Also send a fax to Mr. S. Natsios, Administrator, U.S. Agency for

International Development, Fax: 202-216-3455.

WHAT TO SAY: Our organization is concerned about the lack of sufficient

resources for effective international development programs. There is so much

need, we can make sure the resources are used wisely, and yet the funds are

still lacking!

We support a proposal recently made by the governments of France, Germany,

Brazil, Chile, Spain, and Algeria. They have proposed a " Solidarity

Contribution on Airplane Tickets. " This would be a small fee added to

tickets for passengers leaving participating countries.

This would generate a large amount of money that would then be directed to

global anti-poverty programs. These funds could help save the lives of

million of people impacted by AIDS and other crises.

We believe our government should embrace this plan, and work to ensure a

significant portion of the proceeds benefits the Global Fund to Fight AIDS,

Tb and Malaria.

This plan would be designed to have a minor impact on economy travelers. It

would not have an adverse impact on the airline industry or tourism. Nor

would this be a " global tax imposed by the UN. "

As a purchaser of international airline tickets I am quite willing to pay a

small fee as a part of my ticket price to save lives in poorer countries.

Please work to promote this plan and work to ensure our country's full

participation.

Our government should also contribute its fair share, from the national

budget, to global development programs. Only by stopping global poverty can

we ensure a safe and stable world.

Sincerely, XYZ

BACKGROUND: You can find a full explanation of this proposal at these

websites:

http://www.minefi.gouv.fr/TRESOR/cicid/taxe_internationale_ang.pdf

http://www.elysee.fr/elysee/root/bank/pdf/elysee-30866.pdf

The governments of France, Germany, Brazil, Chile, Spain, and Algeria have

presented the " Solidarity Contribution on Airplane Tickets. " Airline

companies would be responsible for collecting the contribution which would

be added to the fees and charges already part of the plane ticket final

price. The French government has suggested the proceeds could go towards the

purchase of life-saving AIDS medication.

The proposed system would allow participating countries to determine how to

apply the fee or levy. A higher fee could be added to business and first

class tickets, while a lower rate would apply to economy travelers.

Passengers leaving developing countries could be charged less. The fee would

not apply to passengers in transit -- you would only have to pay the

solidarity contribution as a part of your departure ticket.

The demand for air travel is strong and growing each year. The fee would be

small enough to not have an adverse effect on the airline industry.

The government of France is now lobbying governments around the world to

participate in the fundraising program. The more countries sign up to

participate the more funds could be raised.

The countries issued a declaration, which states in part:

" We are convinced that the Millennium Development Goals will simply not be

achieved in many countries at present levels of aid flows....We emphasize

the urgent need for scaling up resources towards the fight against hunger

and poverty through greater domestic resource mobilization, an open and fair

international trade system and increased Official Development Assistance.

Innovative financing mechanisms can play an important role to increase and

supplement traditional sources of finance. "

==========

Full text of the Declaration:

Declaration on innovative sources of financing for development

At the initiative of President Luiz Inacio Lula da Silva, of Brazil, we

gathered in New York, on 20th September 2004, to discuss further

international action to fight hunger, overcome poverty, and increase

financing for development.

Since then, important developments have occurred. The fight against hunger

and poverty and the international discussions of innovative sources of

funding have gained momentum. The issue has become a regular feature in UN

discussions on financing for development and has been in the agenda of

multilateral financial institutions and other important international fora.

Our countries remain determined to translate our joint undertaking in

financing for development into concrete advances. We are convinced that the

Millennium Development Goals will simply not be achieved in many countries

at present levels of aid flows.

We emphasize the urgent need for scaling up resources towards the fight

against hunger and poverty through greater domestic resource mobilization,

an open and fair international trade system and increased Official

Development Assistance. Innovative financing mechanisms can play an

important role to increase and supplement traditional sources of finance.

Greater domestic mobilization in developing countries is a necessity. It can

be achieved by promoting good governance and taking action against

corruption, by pursuing sound policies to encourage private sector activity,

as well as through an improvement in tax collection and a reduction in tax

evasion. There must be no relaxation of efforts currently underway to fight

tax evasion.

ODA, however, will remain an essential component of any development

strategy, especially for the poorest countries. We therefore call on all

developed countries to strive to reach an ODA level of 0.7pour cent of GDP

by 2015, a target that some of them have already adopted or reached.

===

Not only do we need more resources. We also need new types of resources.

Quality of aid is as important as its quantity. We strongly believe that

greater stability and predictability in aid flows would bring major benefits

in terms of efficiency and impact on poverty by facilitating accountability

and promoting ownership of reforms and policy design. These objectives could

be reached through a menu of options, including inter-alia allocation of

special drawing rights and coordinated measures to foster private voluntary

contributions.

We will continue to consider the IFF, as proposed by the British Government,

including refinancing mechanisms, as supported by a group of countries.

We support pursuing the creation of international levies as an element in

the development financing system, and are determined to continue to build

consensus on this issue. These levies should be nationally applied and

internationally coordinated mechanisms. They are especially appropriate

where the need for stability and predictability is greatest over a long

period of time. They would bring continuity in development finance in the

long run.

Remittances play a crucial role in the economy of developing countries,

which are the main beneficiaries, accounting for 65pour cent of all inflows.

For those countries as a whole, remittances represent the second most

important source of capital. Reducing the cost of remittances is therefore

an urgent priority. With this aim, a draft resolution is being prepared for

consideration by the General Assembly of the United Nations. We also plan to

launch concrete initiatives in this field, based on the recent work of some

countries and international organisations.

===

In the near future, we will further work on and pursue the project of a

solidarity contribution levied on air tickets for global sustainable

development as supported by Brazil, Chile, France and Germany. The objective

of this project is to combat hunger and poverty and finance global

sustainable development, including the fight against HIV/AIDS and other

pandemics.

The mechanism would be based on a small solidarity contribution levied on

plane tickets issued to passengers departing from participating countries.

In doing so, each participating country could determine, according to

national priorities and taking into account economic, social and ecological

criteria as appropriate, a differentiation between first/business and

economy class tickets as well as domestic and international flights. The

different capacities of developed and developing countries should be taken

into account. The contribution should be set at levels that would minimize

impacts on airlines, tourism industry and travellers.

From a legal point of view, the mechanism would work as a conjunction of

nationally applied and internationally coordinated contributions.

Participating countries would spell out the modalities of their cooperation,

in accordance with domestic legislation.

It was agreed that the broadest possible participation by a critical mass of

countries should be sought in order to minimize any possible remaining

effect on competition and enhance the effectiveness of the proposed

mechanism. For the same reasons, passengers in transit should be exempted

from the solidarity contribution.

===

We commit ourselves to work further on and support pursuing the project of

solidarity contributions, first of all a solidarity contribution levied on

air tickets. We welcome the French proposal to host a high level meeting on

this initiative by February 2006 and the commitment by some countries to

pave the way by establishing such a contribution on air tickets as soon as

possible in 2006.

=============================================

Bryden

Global AIDS Alliance, Communications Director

1225 Connecticut Ave., NW #401

Washington, DC 20036

202-296-0260 ext 211

dbryden@...