How Treasury Islands and Secrecy Jurisdictions Harm Poor Nations

Abstract

Due to the growing gap between wealth and poverty, more global attention is paid to the global inequality mechanisms. The polarization of wealth across the world is not a recipe for peace or stability. The rise of rampant economic insecurity is leading to the end of the fragile peace agreements between nations as every nation demands a larger share of the shrinking financial pie. Due to unease and greater data sophistication, the tax havens, treasure islands and secrecy jurisdictions are garnering greater attention.

Tax avoidance does not respect the needs of those it deprives. A reduction in a multinational corporation’s tax payments could mean millions and even billions of revenues from which a group of poor nations may never benefit. While the looting of developing nations by corrupt elites has long captured the headlines, the generally legal tax avoidance methods used by some of the biggest corporate players in the world are usually overlooked.

In light of how the offshore role is exacerbating global poverty, it is clear that a new anti-offshore strategy is needed. A key challenge for offshore reform lies in facilitating and encouraging collective global action around financial and tax issues.

Keywords: Treasure Islands, Secrecy Jurisdictions, Tax Havens, Offshore, Global Poverty, Economic Insecurity