It has been fascinating to listen to His Excellency, Mr Mahmoud Mohieldoin, Senior Vice President of the World Bank, speak in Beirut this morning.
Havign discussed the Sustainable Development Goals and the need to tackle illicit financial flows he identified the biggest problem as being the need to improve tax systems; aid their funding and to increase the international cooperation between them, most especially in developing countries.
I agree with him. But I will be more specific when I speak tomorrow: I will be calling for better measurement of tax gaps in the countries impacted by illicit financial flows, and for the better appraisal of tax spillovers within nd between them. The latter has been the focus of much of my work this year, and there will be a lot to come on it from me.
The purpose of these measures is clear. Unless we can measure what losses are, and identify where the greatest weaknesses that need addressing might be, then the process of tackling illicit financial flows cannot be organised effectively. And we cannot afford for it to be anything but effective.
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Oliver Bullough’s book “Moneyland” argues that thieves and thugs masquerading as politicians are spririting billions from developing countries and stashing them in the West, aided as you say in a previous thread, by western accountants, lawyers and officials of secrecy jurisdictions. Certain States in the USA are now providing these facilities. And although there are some measures in place for the exchange of information between countries, as far as the USA is concerned this is a one-way street – ie the US demands information but refuses to give any to those trying to trace the stolen loot.
As with so many issues, unless the US acts in the wider interest and not just in its own interest it will be a very uphill struggle with the boulder continually falling on top of those pushing.
Agreed
With Trump at the helm there, ( has he released his tax declarations yet?) and a Republican Congress, it may be some time before anything happens.
Completely off subject, but I am so sad to see that Harry Leslie Smith has died. He was a fine man – and what a fighter, not only for his family in his youth, but for us all later in life.
Seconded
Really sad
But what an impact to have in his older age
Harry Leslie Smith – and we’re all supposed to become more right wing as we get older. What an example to us all. We’ll need the next generation of people like him to heal the wounds in this country.
Indeed
We never met but did write to each other
It pleases me to know he seemed to like the Joy of Tax as much as I enjoyed his writing
I’ve been convinced but unable to coherently express the view that economics and politics are non-starters as disciplines because of exclusions. We might lump much of this under “false accounting” in finance and ready-to hand language in the state of phlogiston theory in which it is easy to argue in generic frames of reference that evidence fails to cross between. Many ‘fine bodies’ pronounce on transparency and learning lessons but plus ca change. Richard will be right and right to plough on. Sadly, I see the situation as one of a gene that could do wonderful things, but where we know nothing of the surrounding implementers and deniers.
As you are in Beyrouth Richard, how is Lebanon doing these days as an ex(?) tax heaven?
It’s a massively diffcult economy
A 35% shadow economy, in all likelihood
¢1.7 billion lost to evasion
A major banking centre that is still used for laundering, I have no doubt
And the yachts in the harbour tell a story, I am sure. As does their suite and place of registration – almost all in tax havens
It’s a country that remains in deep economic trouble, ignoring all the political difficulties
Does it qualify for MMT policy measures?
Sorry – can you elaborate on your question?
I know, I have quite a few Lebanese friends who escaped the war in Lebanon in the 70s (came to France to study and stayed).
They spoke of massive corruption and fraud then, and despite some glimmer of hope now and then since, that beautiful country’s potential is still swamped in dirty traffickings of all sorts. So sad to know it’s still the same.
Let’s hope they keep their peace in the region.
Lebanon has its own currency so why not promote the policy prescription that arises from MMT?..print money to invest in infrastructure, education etc? Do you have an inroad into Government? If so then Lebanon could be the small country which can show the rest of the world that MMT/PQE is the way forward.
Of course, I always arrive in a country and have an broad into the country
Doesn’t everyone?