Abstract
Small states can sometimes be slow to change, but in some instances, their size gives them a degree of agility that larger States do not have to respond quickly to global changes. This chapter seeks to explore the ways that small jurisdiction IFCs can respond to the shift in public opinion about international finance shown in the responses to the Panama and Paradise Papers by putting human rights concerns at the heart of the way they do business in the future.
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Notes
- 1.
Coakley F (2001) Emigration. Isle of Man. http://www.isle-of-man.com/manxnotebook/famhist/genealgy/emig.htm.
- 2.
FSFO and “Mec Vannin”—Some activists were even imprisoned for arson attacks on houses being built for new arrivals on the Island see Mec Vannin (1991) Who are Mec Vannin? Issue 1. http://www.mecvannin.im/pabyr/pb1.html#3. The FSFO motto was “Fo Sostyn, Fo Odaag” meaning Under England, Under the Thumb and the acronym FSFO, commonly interpreted to mean “Financial Sector F*** Off”, was found in graffiti across the Island.
- 3.
Including the renaissance of the Manx language, recorded by UNESCO as extinct in the 2009, with the last native speaker dying in the early 1970s. This was more recently re-categorised as ‘critically endangered’ following protests from children studying in Manx at school as part of a Manx language regeneration. See: BBC News (2009) Manx Gaelic ‘not extinct’ says UN. BBC UK, 19 August 2009. http://news.bbc.co.uk/1/hi/world/europe.isle-of-man/8210192.stm.
- 4.
For example Oxfam International (2017) Inequality and poverty: the hidden costs of tax dodging. https://www.oxfam.org/en/even-it/inequality-and-poverty-hidden-costs-tax-dodging.
- 5.
See e.g. Eigner and Umlauft (2015).
- 6.
BBC News (2014) Regaining trust in banks ‘years away’, says Andrew Tyrie. BBC UK, 3 September 2014. http://www.bbc.co.uk/news/business-29046605.
- 7.
International Justice Research Centre (2016) The Panama Papers: connecting tax abuses and human rights. http://www.ijrcenter.org/2016/04/13/the-panama-papers-connecting-tax-abuses-and-human-rights/.
- 8.
Ibid.
- 9.
BBC News (2016) Panama Papers: Iceland PM Sigmundur Gunnlaugsson steps down. BBC UK, 6 April 2016. http://www.bbc.co.uk/news/world-europe-35966412.
- 10.
MacAskill E, Mason R, Pegg D, Watt H (2016) David Cameron left dangerously exposed by Panama Papers fallout. The Guardian, 5 April 2016. https://www.theguardian.com/news/2016/apr/05/david-cameron-left-dangerously-exposed-by-panama-papers-fallout.
- 11.
Saul H (2016) Emma Watson named in Panama Papers leak database. Independent, 10 May 2016. http://www.independent.co.uk/news/people/emma-watson-named-in-panama-papers-database-a7023126.html.
- 12.
Hong N (2016) U.S. prosecutors probe ‘Panama Papers’ law firm’s employees. Wall Street Journal, 28 July 2016. https://www.wsj.com/articles/u-s-prosecutors-probe-panama-papers-law-firms-employees-1469737691.
- 13.
Chu B (2016) Panama Papers: the map that shows the countries most embroiled in the offshore taxscandal. Independent, 6 April 2016. http://www.independent.co.uk/news/world/panama-papers-countries-scandal-map-hong-kong-virgin-islands-switzerland-a6971016.html.
- 14.
- 15.
Houlder V (2016) Tax havens are cog in global economy, say defenders. Financial Times, 7 April 2016. https://www.ft.com/content/7fe30aa0-fcd6-11e5-b3f6-11d5706b613b.
- 16.
Stewart H (2016) Offshore finance: more than $12tn siphoned out of emerging countries. The Guardian, 8 May 2016. https://www.theguardian.com/business/2016/may/08/offshore-finance-emerging-countries-russia-david-cameron-summit.
- 17.
United Nations Office of the High Commissioner for Human Rights (2007). http://ap.ohchr.org/documents/dpage_e.aspx?si=A/HRC/31/61.
- 18.
See A/HRC/31/61 para 21.
- 19.
Tax Justice Network (2017) Financial Secrecy Index. http://www.financialsecrecyindex.com/.
- 20.
Withnall A (2015) UK could become ‘tax haven’ of Europe if it is shut out of single market after Brexit, Chancellor suggests. Independent, 15 January 2015. http://www.independent.co.uk/news/uk/politics/brexit-eu-chancellor-philip-hammond-welt-am-sonntag-uk-tax-haven-europe-a7527961.html.
- 21.
McSmith A (2016) Gibraltar faces ‘existential threat’ to its economy if there’s a ‘hard Brexit’ deal, its chief minister warns. Independent, 20 August 2016. http://www.independent.co.uk/news/uk/gibraltar-existential-threat-economy-hard-brexit-deal-eu-fabian-picardo-a7201211.html.
- 22.
European Commission (2016) First step towards a new EU list of third country jurisdictions: scoreboard. https://ec.europa.eu/taxation_customs/sites/taxation/files/2016-09-15_scoreboard-indicators.pdf.
- 23.
Sharman (2009).
- 24.
Sullivan MA (2007) Lessons from the last war on tax havens. Tax Analysts. http://www.taxanalysts.org/content/lessons-last-war-tax-havens.
- 25.
UN Economic and Social Council (2016) Concluding observations on the sixth periodic report of the United Kingdom of Great Britain and Northern Ireland. Office of the High Commissioner. E/C.12/GBR/CO/6 para 7. http://docstore.ohchr.org/SelfServices/FilesHandler.ashx?enc=4slQ6QSmlBEDzFEovLCuW3XRinAE8KCBFoqOHNz%2fvuCC%2bTxEKAI18bzE0UtfQhJkxxOSGuoMUxHGypYLjNFkwxnMR6GmqogLJF8BzscMe9zpGfTXBkZ4pEaigi44xqiL.
- 26.
See Handyside v UK – ECtHR Application No 5493/72 (7 Dec 1976).
- 27.
Handyside v UK ibid para 48.
- 28.
Notably the ECHR has not been extended to the British Indian Ocean Territory—see Chagos Islanders v UK, App No. 35622/04, 11 December 2012.
- 29.
See: Moor and Simpson (2005).
- 30.
Tyrer v UK – ECtHR application No. 5856/72.
- 31.
Ibid para 37.
- 32.
Ibid para 38.
- 33.
The concept of the ECHR as a ‘living instrument’ established ibid para 31.
- 34.
UN Human Rights; Office of the High Commissioner (2011) Guiding principles on business and human rights. http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf.
- 35.
Rainforest Action Network (2017) See how the banks stacked up. RAN organisation. http://www.ran.org/shorting_the_climate.
- 36.
EU Charter of Fundamental Rights and Freedoms, Art 37.
- 37.
Coakley F (2008) The powers of the house of keys. Isle of Man. http://www.isle-of-man.com/manxnotebook/fulltext/gov1944/pt3.htm—initially only widows and spinsters who had property were entitled to vote.
- 38.
Cayman News (2016) UK extends women’s rights treaty to Cayman Islands. Cayman News Service, 8 March 2016. https://caymannewsservice.com/2016/03/uk-extends-womens-rights-treaty-to-cayman-islands/.
- 39.
Isle of Man News (2016) Campaign for abortion law modernisation. CALM calls for changes to the 1995 Termination of Pregnancy Act. Isle of Man News, 14 April 2016. http://www.isleofman.com/News/details/78023/calm-calls-for-changes-to-the-1995-termination-of-pregnancy-act%20.
- 40.
Credit Suisse (2014) The CS Gender 3000: women in senior management. California Public Employees Retirement System. https://www.calpers.ca.gov/docs/diversity-forum-credit-suisse-report-2015.pdf.
- 41.
Woetzel J, Madgavkar A, Ellingrud K, Labaye E, Devillard S, Kutcher E, Manyika J, Dobbs R, Krishnan M (2015) How advancing women’s equality can add $12 trillion to global growth. McKinsey & Company. http://www.mckinsey.com/global-themes/employment-and-growth/how-advancing-womens-equality-can-add-12-trillion-to-global-growth.
- 42.
Equileap (2017) http://equileap.org/invest/.
- 43.
Hunt V, Layton D, Prince S (2015) Why diversity matters. McKinsey & Company. http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters.
- 44.
Ibid.
- 45.
For example reinsurance in Bermuda: See Bermuda Online http://www.bermuda-online.org/insuranceadvantages.htm.
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Alegre, S. (2018). Small State International Financial Centres: A Chance to Reclaim the High Ground on Human Rights?. In: Butler, P., Lein, E., Salim, R. (eds) Integration and International Dispute Resolution in Small States. The World of Small States, vol 3. Springer, Cham. https://doi.org/10.1007/978-3-319-74573-2_9
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