Criminal - These economies are infiltrated by criminal gangs or
suffused with criminal behaviour. Such infiltration is two phased: the
properly criminal phase and the money laundering one. In the first
phase, criminal activities yield income and result in wealth
accumulation. In the second one, the money thus generated is laundered
and legitimized. It is invested in legal, above-board activities. The
economy of the USA during the 19th century and in the years of
prohibition was partly criminal. It is reminiscent of the Russian
economy in the 1990s, permeated by criminal conduct as it is. Russians
often compare their stage of capitalist evolution to the American "Wild
West".
Piggyback Service Economies - These are economies, which provide
predator economies with services. These services are aimed at
re-establishing economic equilibrium in the host (predator) economies.
Tax shelters are a fine example of this variety. In many countries
taxes are way too high and result in the misallocation of economic
resources. Tax shelters offer a way of re-establishing the economic
balance and re-instating a regime of efficient allocation of resources.
These economies could be regarded as external appendages, shock
absorbers and regulators of their host economies.
Pages:
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176