The Potential of Financial Transaction Taxes for Development Financing

Difficulties in raising sufficient resources to finance internationally agreed development goals and global objectives, such as combating climate change, have led the quest for new and innovative sources of development finance. As described in the United Nations World Economic and Social Survey 2012: In Search of New Development Finance, existing innovative financing initiatives have thus far raised limited resources and have been mainly confined to the health sector. However, the Survey highlights the potential of proposals such as taxes on the financial sector, which could raise substantial additional resources for international assistance. These include taxes levied on a range of financial activities, including currency transactions.