Financial Transparency Coalition

Yesterday Switzerland’s parliament approved a much-anticipated tax information exchange agreement with Germany. The country has made similar agreements with Britain and Austria and is already in talks with Italy to make a similar deal. Under the agreement, Swiss banks will make anonymous advance payments to German tax authorities for undeclared money. Germany stands to make big gains: lawmakers already plan to levy a retroactive tax of 21 to 41 percent on their citizens with undeclared accounts. With holdings of an estimated 222 billion euros ($291.8 billion) in Swiss accounts, about 60 percent of which are undeclared, German citizens can expect...

In Brazil, there is an agency known as “the Lion,” whose agents fly around the country in black helicopters, conducting operations such as the “Black Panther” and “Delta.” They aren’t looking for drugs. Or gangs. They’re tax agents. The Lion, dubbed for its official emblem and its ferocious hunt of tax dodgers, uses nearly any tactic conceivable in its pursuit. With a force of about 12,000 agents, the agency monitors tax receipts of millionaires, hunts for smugglers, sizes up mansions from the air, and scrutinizes tax returns. Gary Becker would be proud. Brazil’s approach follows from the classic “economics of crime”...

In many ways their request was simple. Bread. Freedom. Social Justice. Those are things most of us can agree are human rights. And in January of 2011 when protestors took to the streets in Egypt, and chanted “Aish, Horreya, Adala Egtema’eya” (“bread, freedom, and social justice”) they were calling not just for political reform, but for economic and social reform, as well. And while their slogan reflects the complex interdependence of those forces, none of them can be attained with chanting alone. The advantage of political uprisings is that they provide quick headlines. They may focus attention on a singular,...

When we talk about economic growth and corruption, it is often in one direction: corruption hurts economic growth. One of the major reasons for this is that corruption increases risk and uncertainty for businesses and investors and provides a distinct disincentive for their investments. Lower investment levels lead to less economic growth. Less frequently, we say economic growth is an antidote to corruption. But this is also almost certainly true. The reasoning is somewhat complex and indirect, though. Economic growth does not directly ameliorate corruption. Rather, economic growth leads to better access to education, awareness of rights, empowerment of citizens,...