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A week in DC

September 18, 2009

By Richard Murphy

Richard Murphy is a founder of the Tax Justice Network and director of Tax Research LLP. An expert on tax policy, he writes a daily blog which provides regular news on his activities and opinions at www.taxresearch.org.uk/Blog/

My week in DC is not yet over: I have some meetings still to do, but my on-line week nearly is. I admit it’s too early to appraise all that has happened. But I’ll offer first thoughts.

First highlight: World Bank MD Ngozi Ikonjo-Iweala calling for mass civil society action against illicit financial flows. Has the Bank got the issue? I think so.

Second, constructive dialogue with the Oxford team. I hope we can build on it.

Third, clear rejection of the view put forward by some economists that data prevents analysis of this issue or that there is even no issue at all. I think those who tried this line of arguing lost a lot of credibility.

Fourth, good support for progressive thinking e.g. on unitary taxation.

Fifth, some good focus on other areas e.g. human trafficking.

Sixth, the clear impression the Bank is committed to work in this area.

That was a good outcome at the Bank. It was a stressed two days, but in the end the effort in getting this far was well worthwhile – the programme for tackling abuse has moved forward.

And the Task Force? Better still. Highlights: Carl Levin, Lord Brennan, the economist’s panel soundly rejecting the idea there is no issue to address, the session on asset recovery that brought this down to the nuts and bolts of getting cash for development, some say my own session on country by country reporting (I admit, I greatly enjoyed it), and more. Unlike the Bank there wasn’t a duff presentation – not one. Many were superb. And with the Norwegian government re-elected this week their commitment to this work continues. Which is great news.

And why do this? As Tom Cardamone of GFI said in his closing comments: this all comes down to one word, which is justice. Justice for the poor of this world. That’s the start, the middle and the end of this work. I hate travelling – and I love my home. But the hassle of an event like this is worth it if we can help deliver real results. Nothing happens overnight in this sector, but my opinion is we are making progress against abuse; abuse that comes in many forms. And that is the motivation in all of this.

Tags: Conference, GFI, Global Financial Integrity, Illicit Financial Flows, World Bank

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Disclaimer: Unless specifically stated to be the views of the Task Force, the opinions expressed on this blog are solely the opinions of the individual blogger and are not necessarily those of the Task Force on Financial Integrity & Economic Development.

Patti
It does come down to justice. I’ve come to understand the importance of the work done by organizations like GFI and Tax Research UK and commend all involved on these efforts. Sadly, it’s a complicated issue. When faced with complicated political issues the majority of voters glaze over and tune out. They either fail to see the potential that tax havens, illicit financial flows, etc., create in their own lives, or they dismiss greed-motivated problems as impossible to really resolve. We are all touched by these misdeeds; it’s the connection between someone hiding money or avoiding taxes and our own detriment that has most of us stymied. Of course when the ultra rich don’t pay their share of taxes the rest of us have to pick up that slack. When Switzerland protects tax evaders who squirrel money in their banks our nations face unpleasant political confrontations if we aggressively push this friendly country. We are all affected in ways large and small.
Of vital importance is teaching and communicating these issues to the masses in hopes there will be greater understanding, and eventually more public awareness and action. We all are hurt by illicit financial flows and we all may benefit if the hemorrhaging of illicit funds from nation to nation is stopped.
Working toward economic justice may be the way of achieving real fairness in the world. It truly is the big picture. If economic justice is our ultimate goal, we likely encompass virtually every other issue that faces the disadvantaged–and even middle classes– in our societies.