Western hypocrisy

“European leaders and the West in general are criticising Greece for their failure to collect taxes. One of the points of our commission [Independent Commission for the Reform of International Corporate Taxation] is that the West has created a framework for global tax avoidance, but the US is opposing the creation of a UN framework and [even] discussions among all the countries to do something about it. Here you have advanced countries trying to undermine a global effort to stop tax avoidance. Can you have a better image of hypocrisy?”

Joseph Stiglitz, 13 July, 2015, Addis Ababa

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Greece – a victim of finance curse?

Those who have studied development economics will be familiar with the term ‘resource curse’ – a paradox of plenty, when countries or regions with abundance of natural resources tend to have less economic growth and worse development outcomes.

The recent developments in Greece reminded me of another phenomenon – finance curse – which is a story about ‘country capture’ where an oversized financial sector comes to control the politics of a finance-dependent country and to dominate and hollow out its economy.

One particular quote seems to be so timely to mention here: “Beyond a certain point, financial development is bad for an economy. Instead of supplying the oxygen that the real economy needs for healthy growth, it sucks the air out of the system and starts to slowly suffocate it.”

You can read more about finance curse here.

Walmart – master of tax avoidance

Walmart is the second biggest employer in the world (after army of China). Walmart is one of the most active multinational-companies lobbying for TTIP (EU-USA trade agreement) and TPP (Trans-Pasific partnership between USA and Pacific countries). And, Walmart, as the brand new, hot off the press research by Americans for Tax Fairness shows, it is also a very big and smart tax dodger. Make your own conclusions about Walmart, about how and why rich are rich, and who the real beneficiaries of TTIP/ TPP will be.

walmart

era of dynasties in the USA

If Hillary Clinton will be elected and assuming that she serves one term, out of 32 years (1989 – 2021) for 24 years US politics will be led by 2 families.

I just wonder, are these the only 2 families in the USA which can offer winning candidates for the President’s post? And, if so, what makes them so special and unique? Or simply because not every family could feel confident enough about their capabilities to raise billions of US dollars for running their election campaigns?

Maybe some of the hints are hidden in this new book written by the ex-Financial Times reporter?