The Financial Crisis, the OECD, and the Politics of International Tax Cooperation
Introduction: the financial crisis and the politics of international tax cooperation
The ongoing financial crisis, which first disrupted world markets in early 2008, is now entering its fifth year, and the outlook for the global economy remains as fragile as ever. Despite the initial success of the policy responses to the crisis devised by G20 leaders, the tepid recovery of 2009 and 2010 has waned as unprecedented levels of sovereign debt have triggered renewed financial instability in the eurozone and beyond. The political and economic malaise which continues to threaten the global economy has many dimensions. Through a detailed analysis of one aspect of the regulatory response to the financial crisis – international tax cooperation – this book examines the ways in which the ongoing crisis has influenced patterns of international economic cooperation and assesses the prospects of providing effective global governance. In addressing these issues this book aims to shed light on what is emerging as one of the critical questions of our age: Does the international system have the political capacity to devise and implement an effective governance response to the grave challenges currently facing the global economy?