Category Archives: Economic development

Tax Haven Financescapes: an elite spatialisation?

A layered global spatialization divides the world not just into haves and have-nots, but between a tax-avoiding elite that operate in the flows of a worldwide financescape of tax havens and economic free trade zones and “the rest” bound by taxes in outflanked territorial states.

The geography of the space of flows is distinguished by island tax havens: in the Caribbean, Bermuda, Panama, The Seychelles, the Channel Islands and Isle of Man for which Switzerland and its banks may be a global command and control centre.

The geography of offshore tax havens reflects the spirits of hoarding, self-enrichment, expropriation and mean-spiritedness. The leak of Mossack Fonseca’s archive via the ICIJ International Consortium of Investigative Journalists, a project of the US Centre for Public Integrity, reveals the identity of individuals and families that have cached away wealth to avoid taxation by national governments. As The Guardian put it today,

what has broken out of the vaults of the offshore legal specialists is “the sense that normal rules do not apply to the global elite. In a new gilded age, taxes would – once again – appear to be for the little people…. Slowly but surely… the world has learned that the banks that busted the global economy were also consumed with … rigging rates, ripping off customers and laundering Mexican drug money.” It reveals the “tax-dodging lengths that private wealth will go to in order to keep public coffers empty.”

The amount avoided in taxes would solve many countries budget deficits. Budget deficits are debts piled on to our children by tax avoiders.  The temporal aspects, in which money made in the past is inherited tax free in the present, taxes not paid in the present then lead to debt by others in the future, make this a distinct topology.  Its like the elite and the rest live on different financial planes.  These two worlds, two planetary financescapes, have points of intersection but otherwise conceived as independent.   The reality however is that the elite are living in a virtual reality, of course, and usually find out to their cost that they are dependent on the acquiescence of the many to this situation.  Social consent can easily by withdrawn.

Protests in Iceland at the revelations in the Panama Papers (Daily Mail Online 4 Apr. 2016)
Protests in Iceland at the revelations in the Panama Papers (Daily Mail Online 4 Apr. 2016)

daily mail iceland protest 32D82CAF00000578-0-image-a-10_1459798826336

Countries less able to monitor financial industries and collect taxes are particularly vulnerable, as the map create by Offshore Net  suggests.  USD21 trillion was their 2010 estimate.

Offshore wealth flows (Map: OffshoreNet.com)
Offshore wealth flows (Map: OffshoreNet.com)

A study of the American top 100 publicly traded companies by U.S.PIRG, as measured by revenue, shows 82 maintain subsidiaries in offshore tax havens. Collectively, the companies report holding nearly $1.2 trillion offshore, with 15 accounting for two-thirds of this (see diagram).

“When corporations use tax havens to dodge the taxes they owe, the rest of us pay the price, either through higher taxes, cuts to important programs, or a bigger deficit,” said Dan Smith, U.S. PIRG Tax and Budget Advocate and report author. “It also puts small businesses without expensive tax attorneys at a big competitive disadvantage” (Offshore Shell Games).

To these sites, one can add free trade economic zones that are tax free so that companies are not taxed on the value added to products in these zones that are way-points between producers and consumers.  Olivier provides one of the always excellent maps from the Le Monde Diplomatique archived on World Resources SIM Centre:

Tax Havens and Free Trade Zones (Le Monde Diplomatique 2000)
Tax Havens and Free Trade Zones (Le Monde Diplomatique 2000)

-Rob Shields (University of  Alberta)

 

Ferdinand von Hayek on Pipelines

The aspirations of the great mass of the world’s population can today be satisfied only by rapid material progress… At this juncture we are therefore not only the creatures but the captives of progress… At some future date when, after a long period of world-wide advance in material standards, the pipelines through which it spreads are so filled that, even when the vanguard slows down, those at the rear will for some time continue to move at an undiminished speed, we may again have it in our power to choose whether or not we want to go ahead at such a rate.  (The Constitution of Liberty 1960)

Thanks to Joerge Dyrkton for bringing this to my attention.  Flows (mobilities), cultural transmission, leaders and followers in the global space and time assumed by Hayek.  Empirically, the dependency of the Chinese economy on the US consumer for continued growth puts these preconceptions in doubt.

Pipelines and progress are central images in my colleagues’ local narratives and a central topic of  judicial decisions and debates in Canada, with the government and the oil and gas industry on one side and the indigenous nations and environmental critics on the other.

Rob Shields (University of Alberta)

 

Topologies and Landscape Architectures 1: Topology. Landscript 3

Vrin
Vrin, Val Lumnezia, Switzerland

Topology, Landscript 3.  Christophe Girto, Anette Freytag, Albert Kirchengast, Dunja Richter (eds). Institute of Landscape Architecture ETH Zürich. Berlin: Jovis. 2013.

Landscript 3 Topology is the outcome of a workshop and the project ‘Topology – on designing landscape today’ that looked at the integrative role of landscape architecture and sought a theoretical foundation that would strengthen the aesthetic theory and pedagogy of landscape architecture in the context of new, interdisciplinary perspectives on buildings, the environment and cities. Shortcomings in the translation makes for some difficult reading. Topology here refers to changing the extent, scale and dimensions of the tasks that landscape architecture has set for itself. Stepping beyond the garden of traditional landscape architecture, or the vista of landscapes, the profession is now interested in spatial relations more generally. Topology builds on Aristotle’s definitions of topoi and topic as a rhetorical concern with sorting out what the parts of an argument will consists of and preparing them.

There are a few nuggets that leap out of the text:

Design is understood as the taming of complexity, (Kirchengast p.26).

Lucius Burckhardt, a Swiss sociologist and urban planner, and André Corboz, an architectural historian, are introduced for their theory of landscape as a social product (2006) and as a concept projected onto the environment. In Die Kunst, Stadt un Land zum Sprechen zu bringen (Basel 2001) Corboz emphasizes that and territory is an historical palimpsest. Links to the American landscape historian J.B. Jackson are noted. A later post will compare with the work of Augustin Berque.

In Warum ist Landschaft schön? die Spaziergangswissenschaft (Berlin: Schmidt 2006) Burckhardt argues: “Since spatial landscape – as in the case of an English garden – his first produced through the eyes of a viewer, it is not only pictorial also significantly structured by time”. Burckhardt suggested taking “walks as an instrument in order to adequately involve this dimension of time. Strolling denotes a time-based organization of the space from a subjective perspective enables the formation of spatial relationships.”

“He did not consider planning and design to be active processes of creation an organization that resulted in “good form” and “clear systems”… ([But] the recognition and direction of the invisible impetus within systems… Determined scratch that no longer determined by the objects and their technical, practical functions.”

Landscape “flows” with the times and changes constantly. It is not an objective entity that can be defined as synthetic product of interaction relation that needs to be situated within the system of reference.  This provides links to my position that landscape as an intangible virtuality is both real and ideal and distinct from the actually existing fauna and flora.

This position is summarized in Gion Caminada’s development planning of the isolated Swiss village of Vrin, which exploits its remoteness in a manner that provides lessons for planners in other rural communities everywhere.

http://alpinewayoflife.tumblr.com/post/12749388389/vrin-stables-and-butchery-sut-vitg-by-gion

-Rob Shields, University of Alberta

The Economics (and Nostalgia) of Dead Malls – New York Times

Continuing our research on how to revitalise shopping malls as walkable, sustainable community hubs in Strip-Appeal, the New York Times has published a discussion of the decline of middle-range malls in suburban areas of US cities, a decline that correlates to the demise of the American middle classes, as one commenter points out.

New York Times,

 Slide Show

Across America, the Dead Malls Are Growing

Continue reading the main story

-Rob Shields, University of Alberta

Kilmahew interior

Michael Granzow – Review Essay: Industrial Ruins and Ruination

Ruination has emerged as a fashionable concept in recent discussions of post-industrial decline. Whereas ruins refers to the actual material traces of a bygone era, ruination incorporates such traces with processes, experiences and perceptions that continue into the present. Recent studies of ruination tend to focus on modern ruins – those ruins that have emerged as part of relatively recent processes of deindustrialization and are most often associated with a capitalist mode of production. In this short review essay, I assess Alice Mah’s (2012) book Industrial Ruination, Community and Place. After an overview of the text, I briefly compare it with Tim Edensor’s (2005) influential work, Industrial Ruins: Space, Aesthetics and Materiality. Continue reading Michael Granzow – Review Essay: Industrial Ruins and Ruination