Last month John nChristenen and Nick Shaxson published their new e-book called the Finance Curse. The thesis is about the harm suffered by states when captured by finance. In this context an article in the Guardian this morning is telling (and I hope they will forgive me for quoting it extensively):
Whether it's over drinks at Gibraltar's first hedge fund black-tie party, a cigarette break on a hotel balcony overlooking the coast of Morocco or halfway up the famous rock in a cable car, one name keeps cropping up: Hassans. Gibraltar's chief minister, Fabian Picardo, was a partner in the Rock's largest law firm; his wife, Justine, is a Hassans lawyer, who focuses on "transactional work using Gibraltar-based structures". The financial services minister, Gilbert Licudi, also worked for Hassans. In the foreword of the Gibraltar Funds & Investments Association (GFIA) brochure Licudi pledged to make Gibraltar "the jurisdiction of choice" for hedge funds.
The chairman of GFIA, meanwhile, is James Lasry, also a Hassans partner and the firm's head of funds. Hassans' website describes Lasry as a "highly regarded practitioner who has been instrumental in setting up the majority of Gibraltar's funds". It says Lasry also "advised the government of Gibraltar on its funds legislation and was involved in the drafting of the Financial Services (Experienced Investor Funds) Regulations 2005", and is a member of the Gibraltar Finance Centre Council and an alternate member of the Gibraltar Investor Compensation Scheme.
The GFIA brochure boasts that Gibraltar's "seamless communication between industry, regulator and government have allowed it to develop into arguably the premier experienced fund regime in Europe and certainly the regime with the greatest flexibility and fastest time to market". Hassans' links with government go back to 1964 when Sir Joshua Hassan was appointed chief minister. He served until 1969, before being re-elected for a second term between 1972 and 1987. Hassan was the founder of Hassans law firm and is Lasry's uncle.
Asked about these close links, Picardo said: "If you think there's a problem, maybe you should speak to the leader of the opposition — he's a partner at Hassans."
That is the ultimate in capture.
Tax havens and the end of effective democracy are themes that need to be linked, because they are, often.
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Seems to me this country is in much the same state. all politicians are lapping up the lies from the lobbyists and cronnies of the Finance world and their advisors the Big 4.
It is inevitable when you have a “state” with a population barely greater than that of Downham Market.
It doesn’t make it right, as you will undoubtedly point out: but it makes it hellish hard to prevent it.
We’re smaler than Gib!!!
There was another article in the Guardian today about Gibraltar and their efforts to attract hedge funds. One part said “Picardo denied Gibraltar was a tax haven and said the territory complied with all European Union tax and transparency regulations. He said he was delighted the UK was “finally going to crack down on tax evasion”, which he said was good for Gibraltar which already has “the toughest regulation”.” You could probably change the name of the country for any tax haven and get a similar quote. Interesting that it is always other countries that are tax havens whereas the country being questioned is “an attractive investment location” or similar.
Richard, you may recall from earlier correspondence that I have worked in Gibraltar and I think it is fair to say that your observations are correct. Because of its physical location, some arrangements do appear to be incestuous but there is something in its way of working from which those at the eastern end of the Mediterranean could learn a lesson. Those of varying backgrounds ie Catholics, Protestants, Muslims, both Sephardic and Ashkenazi Jews and those with no faith interests, all seem to be able to work and live together comfortably and in the main, wish to remain under Crown rule, whatever that actually entails.