The normality of the exception: Offshore economy as the parallel universe of elites and the missing regulation

Abstract

The offshore economy represents a financial and economic system, which provides a different legal frame - work for the benefit of elites at the expense of the majority. Offshore economy is not an exception but a central component of the world economic and financial system commonly used by multinational companies and the rich. If one looks at regulation, it becomes evident that before the Financial Crisis of 2007/2008 there were no serious attempts to regulate the offshore economy. Even if after the crisis politicians rhetorically criticised tax havens and shadow banking, regulation does not make full use of its possibilities; and regulation failures are presented as successes. Although the public attitude towards offshore economy has changed, elites still impose their interests. I assume that an important reason for this is their access to specific technical knowledge combined with their capacity to control discourses, which make the public and politicians think elite interests are public interests. As a consequence of this, claims and activities of civil society actors should deal with elite discourses and confront them with different framing as well as get involved in technical issues.