Nobody Likes Competition

One thing is true for most organizations, political and market entities or particular individuals. They do not like competition and most arguments for restricting it are mere rationalizations used to sell such restrictions as somehow socially advantageous.

Organization of the Petroleum Exporting Countries (or just OPEC) has traditionally been scrutinized for its policy of restricting oil supply and therefore creating upward pressure on world prices for this commodity. It is possible that another target for similar kind of critique is forming, this time under the wings of the OECD:

Leaders from the Organisation of Economic Cooperation and Development (OECD) member nations gathered in Paris on Tuesday where a new crackdown on offshore financial centres is expected to be discussed as part of plans aimed at tighter regulation of the global financial system.

The initiative is being led by the governments of France and Germany, and could lead to the drawing up of a new ‘black list’ of offshore jurisdictions still deemed to be ‘uncooperative’ or with tight banking secrecy and confidentiality laws. Switzerland, Luxembourg and Austria - all jurisdictions with a measure of banking secrecy - have apparently boycotted the meeting.

(…)

What can be seen here is a push for cartelization of tax funded services and this attempt is no different from what OPEC does. Taxpayer friendly jurisdictions are nothing more than a way to provide administrative and protection services of better quality for lower cost.

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