PAcross the planet, democracies face two serious threats: a crisis of legitimacy and the rise of increasingly aggressive authoritarian regimes. These two phenomena represent an all the greater danger as they are linked by the dark money“black money” [des fonds employés pour peser sur les élections et la vie politique, mais dont la source est inconnue] which passes through offshore tax havens and jurisdictions that practice excessive financial secrecy. Restricting these tax havens and demanding more transparency on cross-border financial flows must become a major political priority for all G7 countries in 2024.
Domestically, democracy suffers from an erosion of legitimacy. In industrialized countries, the United States and Europe, new technologies, increased cross-border capital flows, and lower trade barriers have increased productivity and strengthened growth over the past half-century, but not all have not received their share of the benefits derived from this advantageous economic situation. Inequalities within these countries have increased significantly since the mid-1970s, and millions of people now feel left behind.
Democracy arouses less support because the economic game appears “rigged”. People who are already powerful and privileged earn more, sometimes at the expense of others. Although this belief may be exaggerated, it is consistent with the reality of tax evasion.
Tax havens allow the rich not only to build their wealth primarily by evading taxes, but also to exercise their economic and political power away from prying eyes, without having to be held accountable. The list of tax havens [établie par l’ONG Tax Justice Network] includes among its top ten both small Caribbean states and highly respected countries such as the British Overseas Territories (British Virgin Islands, Bermuda and Cayman Islands), the Netherlands, Switzerland, Luxembourg, Singapore and the United Arab Emirates.
Global disinformation
The United States and the United Kingdom are also complicit. Their financial secrecy rules allow an extraordinary amount of foreign (and illicit) money to find refuge on their territory (the United States tops the financial secrecy index [créé par le Tax Justice Network]).
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