GUERNSEY’S importance to the world economy has been reinforced by a new report.
International Finance Centres and the World Economy was commissioned by the Society of Trust and Estate Practitioners.
In an international political climate that is increasingly hostile to the island, some will see it as another boost coming on the back of the largely positive Foot Review.
‘The evidence indicates that offshore centres contribute to financial development and stability in neighbouring countries, encouraging investment, employment and other aspects of business development,’ said the report’s author, US economist Professor James Hines Jr.
‘They have salutary effects on tax competition, promote good government and enhance economic growth elsewhere in the world.’
Step Worldwide chief executive David Harvey welcomed the publication.
‘This report provides further robust evidence of the positive role offshore centres play in the world economy,’ he said. ‘Post-credit crunch, we must ensure capital keeps flowing and Professor Hines’ report demonstrates by every measure credit is more freely available in countries which have close relationships with offshore centres.’
The Foot Review of British offshore financial centres found that they provided net financing to the British banking system of $332.5bn in the second quarter of 2009.
Foot revealed that at the end of June 2009, UK banks had net financing of approximately $74.1bn from Guernsey, $218.3bn from Jersey and $40.1bn from the Isle of Man.
Article posted on 9th November, 2009 - 2.30pm
4 Article Comments
“The evidence indicates that offshore centres contribute to financial development and stability in neighbouring countries, encouraging investment, employment and other aspects of business development…”
Does it?
Taxes in the UK are rising, the budget deficit is rising, unemployment is rising, the wealth gap is widening, house building has slowed to a near standstill, UK corp ownership is dwindling, mortgage defaults are rising, personal insolvencies are rising, standards of living are falling, social cohesion is loosening, public services are being cut, small businesses are struggling, education is becoming more elitist, resource security is worsening.
All in the last two decades of boom for offshore finance centres.
Net financing from subsidiaries in low tax areas is not a measure of success. It’s expected. It would be a shonky model if the upstreaming wasn’t liquidity.
Not forgetting aiding corruption, criminality and helping cause the biggest recession.
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I think what their trying to say is the well of are doing just fine and thats what really matters so sod the rest of you plebs :).
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Arnald
You forgot to mention that if liar Blair had not taken the UK into a multi billion pound un-winable war so that he could bask in Margaret Thatcher type Falklands glory the UK would not be in quite such a mess now
You really shouldn’t try to blame EVERY one of the world’s problems on the good people of the Truchot
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Ray
Why not? Enough arms deals goes through the CDs that money has been made through financing war.
Do you know how war finances work? The deals involved? Someone has to facilitate it and it ain’t the streetsweepers and nurses.
OK so Guernsey OFC may not be a big player in that field, but BAe has used the CDs for bribery payments and Blair took the heat out of that SFO investigation like the Godless man he really is.
But that wasn’t what I was talking about. Can you answer my question? Where is the benefit?
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