"The broader point is this: offshore finance allows elites to insulate themselves from the risks of weak governance without having to fix it themselves. Rather than push for judicial reform, more transparent institutions, or limits on executive power, they can arbitrage the rule of law. They don’t need better laws at home if they can choose better ones abroad.
Because not everyone gets to play the offshore shell game, we then have a bifurcated legal system between economic elites and everyone else. And that doesn’t just suck normatively. It’s empirically damaging. Rule of law is one of the strongest correlates with economic growth.
These potentially debilitating political effects of offshore finance are the main reason I decided to spend the last 10 years studying how oligarchs resolve their legal troubles abroad. But I’m certainly not the only one to think this matters. mentions this potential de-democratizing effect in his monumental book on global inequality, while Katharina Pistor postulates an analogous logic in her legal scholarship. Sharafutdinova and Dawisha focus on Russian use of the London legal system to draw out these conclusions.
As often happens with emerging ideas, several of us were running down the same track from different academic angles. None of us can be sure we’re right. It is very hard to assess the effects of the rise of tax havens on something as broad as liberal political development. But the clearest test I’ve seen comes from Maxim Ananyev. He shows that more offshore wealth correlates with future weakening of democracy levels."
#TaxHavens #TaxEvasion #Offshores #Billionaires #RuleOfLaw #Democracy

Why aren't the Rich fighting against Autocracy (anymore)?
How Tax Havens Undermine the Rule of Law by Providing the Rule of Law














