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Offshore Finance and State Power (Hardcover)
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Offshore Finance and State Power (Hardcover)
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Offshore financial centers such as Luxembourg, the Cayman Islands
or the City of London provide non-residents with a legal framework
that is strong on property rights and soft on taxation and
regulation. Building on a historical-institutionalist comparison of
Britain, Germany, Brazil, and Mexico, Offshore Finance and State
Power asks how these offshore financial services affect the power
of the state. Combining a concept analysis with empirical research,
the book finds that economic actors go offshore to create money
more than to hide it. Legal offshore banking trumps tax planning or
money laundering in its impact on state power. Offshore Finance and
State Power also reveals that the relationship between the two is
not straightforward. Offshore finance can limit state power by
transmitting the volatility of unregulated offshore banking into
the domestic economy. Yet, counterintuitively, offshore finance can
also enhance state power. It provides governments with an
extraterritorial vehicle to cover up political conflicts over how
to finance the state and to mitigate class conflict. To which
extent a state can put offshore finances at its own service,
depends on a country's domestic elite constellation and the tax and
bank bargains they have forged throughout history.
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