03/02/20

From Features

A World Without IFCs

What Would the World Be Like Without IFCs?

This feature includes articles about efforts to remove IFCs and what this could look like for the future of offshore finance.

Evolution of Offshore

Tax Havens to IFCs

Andrew P. Morriss
Texas A&M University School of Innovation
Charlotte Ku
Texas A&M University School of Law, Fort Worth, Texas, USA

Over the past 70 years, many smaller jurisdictions have evolved into international financial centres (IFCs). Although different in their historic origins and in the financial products and services they offer, IFCs share a common development path. Understanding that evolution can shed light on what the next decade is likely to bring.

Over the past 70 years, many smaller jurisdictions have evolved into international financial centres (IFCs). Although different in their historic origins and in the financial products and services they offer, IFCs share a common development path. Understanding that evolution can shed light on what the next decade is likely to bring.

Tax Monopoly

A World Without IFCs

Andrew P. Morriss
Texas A&M University School of Innovation

What if IFCs no longer existed? This is not a rhetorical question. There is a concerted campaign underway to eliminate international financial centres (IFCs). Consider the following recent tax policy proposals:

What would Tax Monopoly World look like? It would have slower economic growth; higher transactions costs for cross-border investment; less financially robust pension funds; more expensive or non-existent insurance for critical areas from medical care to transportation; and lower investment in developed economies. In short it would be a much poorer world. Why would anyone want to us to live there?