WHERE CURRENTS MEET - THE OFFSHORE INTERFACE BETWEEN CORRUPTION, OFFSHORE FINANCE CENTERS AND ECONOMIC-DEVELOPMENT

The connections between economic development, corruption and the incre asingly globalized financial system are not yet fully understood. In t his article we examine tax havens and Offshore Finance Centres (OFCs) which form an interface between developed countries and LDCs. The cent ral argument is that the existence of these financial channels facilit ates and can even encourage onshore corruption. The combination of new technology with strict bank secrecy in the 'private banking' offshore networks of major banks allows rapid and non-transparent internationa l flows of funds, creating an increasing synergy between the offshore interface, globalization and onshore corruption.