Capitalism s Achilles Heel

ISBN-13: 9781119086611 / Angielski / Miękka / 2005 / 450 str.

Baker, Raymond W.

Opis

For over forty years in more than sixty countries, Raymond Baker has witnessed the free-market system operating illicitly and corruptly, with devastating consequences. In Capitalism's Achilles Heel, Baker takes readers on a fascinating journey through the global free-market system and reveals how dirty money, poverty, and inequality are inextricably intertwined. Readers will discover how small illicit transactions lead to massive illegalities and how staggering global income disparities are worsened by the illegalities that permeate international capitalism. Drawing on his experiences, Baker shows how Western banks and businesses use secret transactions and ignore laws while handling some $1 trillion in illicit proceeds each year. He also illustrates how businesspeople, criminals, and kleptocrats perfect the same techniques to shift funds and how these tactics negatively affect individuals, institutions, and countries.

For over forty years in more than sixty countries, Raymond Baker has witnessed the free–market system operating illicitly and corruptly, with devastating consequences.

Spis treści

Prologue 1

CHAPTER 1 Global Capitalism: Savior or Predator? 11

PART I Illegality: We Like the Money 21

CHAPTER 2 Playing the Game 23

The Dirty–Money User Manual 24

You′re in Business 47

CHAPTER 3 Dirty Money at Work 48

The Corruption Industry 49

The Criminal Component: Drugs, Thugs, 88

and Terrorists

Global Commerce and Tax Evasion: Coin of the Realm 133

CHAPTER 4 Magnitudes and Misunderstandings 162

How Much Money? 162

A Failure Rate of 99.9 Percent 173

Well–Intentioned Efforts 174

The Patriot Act 177

Dirty Money Is on the Rise 182

Chasing Terrorists′ Money 183

Ill–Intentioned Loopholes 186

Haven and Secrecy Structure 191

Falsified Pricing Structure 194

We Like the Money 201

Challenge 205

PART II Inequality: The Gap Matters 207

CHAPTER 5 The Global Divide 210

The Quintile Canyon 210

Measure for Measure 217

It′s an Uncertain World 224

The Monkey Wrench 234

CHAPTER 6 "I Don′t Understand" and "Don′t Tell Anyone" 240

Myths 241

"Don′t Tell Anyone" 246

Corruption At Long Last! 249

Filling Western Coffers: Mum′s the Word 252

Debtor′s Prison 254

What If? 257

Intellectual Gap or Character Gap? 258

CHAPTER 7 It′s the 70 to 90 Percent that Matters 262

It Can′t Last 262

Convergence? 267

The Gap Matters 272

Challenge 275

PART III Disutility: Bentham KOs Smith 279

CHAPTER 8 The Anguish of Adam Smith 282

Theory of Moral Sentiments 283

Wealth of Nations 286

Invisible Hand 290

Das Adam Smith Problem 293

The Tears of Adam Smith 297

CHAPTER 9 The Joys of Jeremy Bentham 300

Jurisprudence 301

Utilitarianism 302

Related Interests 305

John Stuart Mill 307

Problems 309

CHAPTER 10 Philosophy Becomes Culture 312

The Great Infusion 313

Twentieth–Century Utility 319

Twentieth–Century Utilitarianism 321

Inoperable Doctrine, Deadly Practice 323

Disutility 327

Challenge 330

PART IV Run It Right: Trust the System 333

CHAPTER 11 Capitalism′s Achilles Heel 337

CHAPTER 12 Spreading Prosperity 342

Delegitimizing Dirty Money 342

Tougher on Corruption 346

Reining in the Support Structure 346

Mispricing and Transfer Pricing 348

Capitalism′s Contribution to Slashing Inequality 351

". . . When You Pay Me What You Owe Me" 353

Reconstitute the World Bank 360

Justice First 361

CHAPTER 13 Renewing Capitalism 368

Acknowledgments 377

Notes 383

Index 425

O autorze

Raymond W. Baker, after a long career in international business, is a guest scholar at The Brookings Institution and a Senior Fellow at the Center for International Policy, both located in Washington, D.C. He appears often on television and radio in the United States and overseas and often testifies before House and Senate committees. Baker has an MBA from Harvard, lived in Africa for many years, and has done business across much of the developing world.

Blurb

PRAISE FOR CAPITALISM′S ACHILLES HEEL

"The corrosive effects of bribery, money laundering, tax evasion, and fraudulent transfer pricing need to be analyzed and explained. Raymond Baker, a pioneer in this research, shows how illicit funds move through world financial systems and lead to increased corruption, poor distribution of resources, and damage to the rule of law. I hope his passion for the subject will inspire others to delve into the legal, economic, and social consequences of dirty money and what must be done to stop it."
Senator Carl Levin, (D–Michigan), Ranking Member, Permanent Subcommittee on Investigations

"In today′s world, expanded trade relationships and rapid advances in communication technology foster opportunities for greater political freedom, economic growth, and higher living standards around the world. These developments also create new vulnerabilities for the international financial system. This book takes a look at these challenges head on and makes an important contribution to the public debate."
Senator Charles Grassley, (R–Iowa), Chairman, Senate Finance Committee

"This groundbreaking book will open your eyes to two things: how illegal money is shifted out of poor countries into rich countries and how these illegal flows add to poverty, misery, and inequality in poor countries themselves. Can this be stopped when those in power think they are benefiting? Public pressure, as was focused on slavery two centuries ago, is the first step toward change."
Branko Milanovic, Economist, World Bank and author of Worlds Apart

"Raymond Baker′s comprehensive book on illicit money is required reading for anyone involved in the global economy. His painstaking, fact–based analysis depicts an insidious phenomenon that threatens general welfare and requires urgent corrective action."
George Vojta, Chairman, Caux Round Table, former vice chairman, Bankers Trust

"A superlative and enlightening overview of the world of corrupt money in its many forms, what it is doing to human civilization, why it must be stopped, and how this can be accomplished. Raymond Baker critiques global capitalism as it is functioning today from neither a liberal nor conservative perspective but from the standpoint of a believer in and supporter of free markets and free trade. A brilliant tour de force!"
Brent Blackwelder, President, Friends of the Earth