Howard Davies: the banks that ate the economy

   0   0 Blog
financerace

What the Finance Curse looks like, in practice

Update: another piece of research here.

From Project Syndicate, an article with an identical headline to ours by Howard Davies, former Chairman of the UK’s Financial Services Authority (FSA).

The article focuses on what the iconoclastic economist Andrew Haldane of the Bank of England has described as the financial sector’s

“ability to both invigorate and incapacitate large parts of the non-financial economy.”

Its an ability that we have described as a Finance Curse, analogous though not identical to the well-understood “Resource Curse” that afflicts mineral-rich countries, where billions or trillions of dollars wheeling into and through an economy from the dominant sector don’t seem to translate into better living standards for ordinary folk. The dominant sector, far from being a goose that lays the golden eggs that everyone imagines it to be, turns out to be a cuckoo in the nest.

It’s quite uncanny how close Davies’ analysis is to our way of viewing all this – all he’s missing, really, is to make the link with the Resource Curse. It’s one of those things where once you see it, it’s so obviously right.

Read on: it’s a really good article.

hat tip: dan Hind.


Related Posts

The Offshore Wrapper: the Panama Papers, one year on

Photos from the Protest outside PwC 1 Embankment Place, part of the Global week of action for tax justiceWelcome to the Offshore Wrapper – your weekly update from TJN.  Happy Paniversary! This week it’s been one year since the Panama Papers were leaked, and a number of organisations around the world have been marking the occasion though the global week of action for tax justice. In London, activists from the TJN and the […]

READ MORE →

Protesting PwC: Professionals Without Conscience

Photos from the Protest outside PwC 1 Embankment Place, part of the Global week of action for tax justiceThis week is the global week of action for tax justice and on Wednesday 5th April activists from the Tax Justice Network and Methodists for Tax Justice held a protest outside the London offices of Price Waterhouse Coopers. The global week of action for tax justice is happening one year after the release of the […]

READ MORE →

Germany moves forward on corporate transparency

ReichstagThe Bundesrat has today voted to recommend implementing a public register of the beneficial ownership of companies and trusts.  Great news from Germany, as the country takes an important step forward towards corporate transparency.

READ MORE →

New estimates reveal the extent of tax avoidance by multinationals

Price Waterhouse CoopersNew figures published today by the Tax Justice Network provide a country-level breakdown of the estimated tax losses to profit shifting by multinational companies. Applying a methodology developed by researchers at the International Monetary Fund to an improved dataset, the results indicate global losses of around $500 billion a year. The figures appear in a […]

READ MORE →

Banking Secrecy in China, its related territories and Taiwan

Hong Kong from Sky 100Foreword. The Tax Justice Network is a non partisan network of experts working towards transparency, so we do not take any position about countries’ territorial and political claims. However, we do expect countries with a de jure (legal) or de facto (in practice) influence over other territories, to take responsibility for their power. We point […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to Top