Tournament: Berkeley | Round: 1 | Opponent: AAA | Judge:
Plan
The United States federal government should offer to implement reciprocal automatic exchange of information with Mexico as it pertains to money laundering.
Contention 1 is “The Financial Overhaul”
The recovery is spurious, and financial growth is unsustainable because of a lack of regulatory oversight – a changing paradigm is necessary to avoid complete collapse
Hay and Payne, 13 Colin, Professor of Political Analysis at the University of Sheffield. He studied Social and Political Science at Clare College, Cambridge University and moved to the Department of Sociology at Lancaster University to research his PhD under the supervision of Bob Jessop.1 He then worked at the University of Birmingham, where he was head of the Department of Political Science and International Studies between 2002 and 2005; Tony, Director of the Sheffield Political Economy Research Institute (SPERI). He joined the Department of Politics at the University of Sheffield in 1985 and was promoted to Professor in 1993. He was Chairman of the Department between 1992 and 1995 and again between 1998 and 2001. He was the Director of the Political Economy Research Centre (PERC) from 1996 to 1999 and Co-Director from 2002 to 2004. He was appointed Pro-Vice-Chancellor for the Social Sciences in June 2008. Available from Sheffield Political Economy Research Institute @ http://speri.dept.shef.ac.uk/2013/12/19/civic-capitalism-regulation-antidote-unstable-growth/, Accessed on 1/23/14, “‘Civic Capitalism’: regulation as the only antidote to unstable growth” | ADM
One of the most important lessons of the global financial crisis is that we got
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transition to a new mode of development or growth for the British economy.
Specifically, the status quo regulatory framework allows the flow of illicit funds, which generates market volatility and instability
We’ve made progress on regulations with things like financial reform and Dodd Frank, but banks are still vulnerable because money laundering through the financial system
Laundering wrecks financial reputations, discourages investment, and devalues asset markets, making banking growth cyclical and guaranteeing eventual collapse
Banking is reported as resilient, but the lack of collapse doesn’t indicate stability – it means we’re due for another collapse soon
Sarigul, 13 Hasmet, Faculty of Management, Mevlana(Rumi) University, Turkey, International Journal of Business and Management Studies, pages 287–301, Accessed on 10/4/13, http://www.academia.edu/2201626/MONEY_LAUNDERING_AND_ABUSE_OF_THE_FINANCIAL_SYSTEM, “MONEY LAUNDERING AND ABUSE OF THE FINANCIAL SYSTEM” | ADM
There are some macroeconomic and microeconomic implications of money laundering which corrupt financial and legal
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insider trading, fraud, and embezzlement(Quirk, 1997:9).
Macroeconomic scholars agree financial stability is the controlling internal link to the economy – absent strong banks, growth is unsustainable
Triggers of crisis are almost always located in the banking sector
Banks make the economy resilient – they protect the economy from internal and external shocks, which means bank stability is the vital ingredient for financial integrity
Yes, there hasn’t been a full-blown crisis yet, but that doesn’t mean the economy is stable. Current economic data is unable to predict when these banks will collapse, but it is inevitable.
Mishra et al, 13 Rabi N., Regional Director, Lucknow and Ms Dimple Bhandia and Mr. S. Majumdar are General Manager and Director in the Financial Stability Unit (FSU) of Reserve Bank of India (RBI), respectively. Technical guidance received from Dr. Balwant Singh, Consultant, FSU is gratefully acknowledged, cites IMF Working Paper “Can you map global Financial Stability?” (June 2010), 1/18, Accessed on 10/14, http://www.rbi.org.in/scripts/PublicationsView.aspx?id=14916, “Banking Stability - A Precursor to Financial Stability” | ADM
The recent financial crisis caused huge cost to the world economies and despite quite substantial
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the high level of stability, when the banking sector is in tranquil.
The only solution is global tax transparency, which depends on the US taking the lead – the non-reciprocal agreement with Mexico is the only barrier
FATCA = Foreign Account Tax Compliance Act
IGA = Intergovernmental Agreement
Countries model their tax transparency policies on American tax act – the Foreign Account Tax Compliance Act.
As a result of this piece of legislation, the United States has developed an IGA, an international agreement designed to share the interest payments banks make to account holders.
The current model of IGA’s is flawed because the US doesn’t reciprocally share information with Mexico – i.e. Mexico shares their bank info with us, but we don’t share ours with them. This undermines the multilateral tax transparency model across the globe
Reymond 13 Robert, Stikeman Elliott London partner specializing in Canadian and international tax law. Robert advises financial institutions and high-net-worth families on international wealth structuring, with a focus on tax and estate planning and the international regulatory environment, particularly for families in Canada, Latin America and Europe. He also advises on political risk mitigation strategies for international and in-country assets; on mergers and acquisitions in the trust and corporate service provider industries; and on Canadian transnational trust companies. Robert was the recipient of the International Law Office (ILO) Client Choice Award 2012 for Offshore Services for the UK. He is also recognized by Chambers Global's 2012 The World's Leading Lawyers for Business for his Private Client (UK) expertise, 5/2, http://www.stikeman.com/cps/rde/xchg/se-en/hs.xsl/17646.htm, “Global tax transparency?”
The global environment for tax transparency is changing at an unprecedented pace. In parallel
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able to extract automatic information exchange arrangements from the Caribbean offshore financial centres?
the current intergovernmental agreement with Mexico doesn’t share American information – undermines multilateral tax transparency and wrecks the automatic exchange model
Christians, 12 Allison, H. Heward Stikeman Chair in the Law of Taxation at the McGill University Faculty of Law. Her research and teaching focus on national and international tax law and policy issues, with emphasis on the relationship between taxation and economic development and on the role of government and non-government institutions and actors in the creation of tax policy norms, 12/12, http://taxpol.blogspot.com/2012/12/iga-flurry-shows-us-is-locking-down-on.html,Tax, Society, and Culture, “IGA flurry shows US is locking down on FATCA”
A recent flurry of signed IGAs and press releases on ongoing negotiations suggests the US
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build its own private empire of information gathering. That's good to know.
Only a model of reciprocal automatic exchange can achieve multilateral tax transparency and shut down money laundering
Economist 13 The Economist, Special Report, 2/16, Accessed on 10/15/13, http://www.economist.com/news/special-report/21571561-way-make-exchange-tax-information-work-automatic-response, “Automatic response” | ADM
To tax-freedom advocates like Mr Mitchell, one of the most infuriating aspects
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through amendments, more of which are proposed, but gaps will remain.
Conflict is down now because of the aff’s global economic model – only a risk that alternative approaches disrupt international systems promoting this trend
Gleditsch, Research Professor at the Peace Research Institute, 08
(The Liberal Moment Fifteen Years On, International Studies Quarterly, 52, 691–712)
Judging the long-term development of massacres and wars becomes even more difficult when
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more consistent with the long-term decline in the lethality of war.
And collapse is bad – economic decline and volatility heightens the risk of nuclear global conflict—multiple scenarios
Burrows and Harris - Counselor in the National Intelligence Council, Member at the National Intelligence Council - 2009 (Mathew J. Burrows, Global Trends 2025: A Transformed World—an unclassified report by the NIC published every four years that projects trends over a 15-year period, has served in the Central Intelligence Agency since 1986, holds a Ph.D. in European History from Cambridge University, and Jennifer Harris, Member of the Long Range Analysis Unit at the National Intelligence Council, holds an M.Phil. in International Relations from Oxford University and a J.D. from Yale University, 2009 (“Revisiting the Future: Geopolitical Effects of the Financial Crisis,” The Washington Quarterly, Volume 32, Issue 2, April, Available Online at http://www.twq.com/09april/docs/09apr_Burrows.pdf, Accessed 08-22-2011, p. 35-37)
Of course, the report encompasses more than economics and indeed believes the future is
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within and between states in a more dog-eat-dog world.
Broad statistical models prove the impact
Royal, Director of cooperative threat reduction, ‘10 Jedediah, Director of Cooperative Threat Reduction – U.S. Department of Defense, “Economic Integration, Economic Signaling and the Problem of Economic Crises”, Economics of War and Peace: Economic, Legal and Political Perspectives, Ed. Goldsmith and Brauer, p. 213-215
Less intuitive is how periods of economic decline may increase the likelihood of external conflict
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not featured prominently in the economic-security debate and deserves more attention.
Alternatives to growth kill hundreds of millions and cause global conflict—we can’t “turn off” the economy.
Barnhizer 6 — David R. Barnhizer, Emeritus Professor at Cleveland State University’s Cleveland-Marshall College of Law, 2006 (“Waking from Sustainability's "Impossible Dream": The Decisionmaking Realities of Business and Government,” Georgetown International Environmental Law Review (18 Geo. Int'l Envtl. L. Rev. 595), Available Online to Subscribing Institutions via Lexis-Nexis)
The scale of social needs, including the need for expanded productive activity, has
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social justice while avoiding and mitigating the most destructive consequences of our behavior.
Scarcity is inevitable – market rationality is necessary to prevent financial collapse, inequality, and societal destruction
Bills, ’13 Forbes contributor, degree in economics, high school economics teacher (Kurt Bills, 18 April 2013, Forbes, “We're All Economists Now: Scarcity Lessons For High School Students,” http://www.forbes.com/sites/kurtbills/2013/04/18/were-all-economists-now-scarcity-lessons-for-high-school-students/)//CC
The reality is that we are all economists. We all deal with scarcity as
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lots of parts of life that relate to economics.” It’s all Econ.
The plan makes growth sustainable – global financial transparency allows effective government regulation and facilitates the macroeconomic shift from consumption to sustainability
Pierrakakis, 09 Kyriakos, Master in Public Policy, John F. Kennedy School of Government, Harvard University, 2007, Ptychion (B.Sc.) in Informatics, Athens University of Economics and Business, 2005, Submitted to the Engineering Systems Division¶ in Partial Fulfillment of the Requirements for the Degree of¶ Master of Science in Technology and Policy¶ at the¶ Massachusetts Institute of Technology¶ June 2009, Accessed on 2/10/14, PDF, “The Sustainable Growth Paradigm: Implications for Technology and Policy” | ADM
7. Policy Options for a Transition to Sustainability¶ The financial crisis of 2008
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be registered and approved by the appropriate authorities before they can be used.
Contention 2 is Laundering
The Mexican IGA is the litmus test for all other IGAs; its successful resolution triggers an avalanche of other IGAs to be signed
Mcintyre 09 Professor of Law, Wayne State University, Former member and interim chair of the U.N. Subcommitte on Information Exchange; Michael, Tax Notes International, “How to End the Charade of Information Exchange,” Volume 56, Number 4, http://faculty.law.wayne.edu/mcintyre/text/mcintyre_articles/Treaties/charade_56TNI.pdf AKAY 47
Mexico surely understands that an agreement for automatic exchange with the United States will induce
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their residents, the Mexican rock down the hill may trigger an avalanche.
IGAs are on balance the best way to solve illicit money flows – immediate action is needed
Gascoigne 10/15 October 15, 2013; http://www.gfintegrity.org/content/view/659/72/; Reaction: Government Shutdown Delays Automatic Tax Information Sharing; Clark Gascoigne is for the GFI; AKAY 47
One of the biggest advancements in curtailing illicit financial flows to date is the US
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open. And while government officials wait, illicit money continues to flow.
Automatic exchange of information solves international IFFs
Kar and Freitas 13 February 2013; http://russia.gfintegrity.org/Russia_Illicit_Financial_Flows_and_the_Role_of_the_Underground_Economy-Web.pdf; Russia: Illicit Financial Flows and the Role of the Underground Economy; Members of GFI
A significant component of illicit financial flows involves the evasion of taxes. Apart from
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upon request” proposal which only help tax evaders cheat on taxes due.
Malaysian IFFs are large and increasing – increases corruption, crime, and inequality
Gan 12 December 18, 2012; http://www.malaysiakini.com/news/216889; M'sia is world's No 2 in illegal capital flight; Writer for Malaysiakini; Malysiakini=news site for Malaysia winner of the Putra Brand Awards in 2010 AKAY 47
Close to RM200 billion of dirty money was siphoned out of Malaysia in 2010,
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Negara's court, saying that it would provide an explanation on the findings.
This generates political and economic instability in Maylasia – only international transparency solves
Malaysiakini 11 http://www.malaysiakini.com/news/153932; Cites the Global Financial Integrity Report, Malysiakini=news site for Malaysia winner of the Putra Brand Awards in 2010; Jan. 20, 2011 AKAY 47
Malaysia is among the countries which registered the highest illicit financial outflows over a period
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system is critical to reducing the outflow of illicit money from developing countries.”
Malaysian stability is key to the independence and effectiveness of the ASEAN and avoiding foreign dominance in Southeast Asia
Saravanamuttu 12 November 2012; http://www.lse.ac.uk/IDEAS/publications/reports/pdf/SR015/SR015-SEAsia-Saravanamuttu-.pdf; Malaysia in the New Geopolitics of Southeast Asia; Johan Saravanamuttu is a Visiting Senior Research Fellow at the Institute of Southeast Asian Studies, Singapore and was formerly professor of political science at Universiti Sains Malaysia (USM) in Penang where he served as Dean of the School of Social Sciences AKAY 47
Every era creates new parameters for political actors in international relations. Malaysia, as
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Southeast Asia’s own ‘pivot’ for its relationships with outside actors and powers.
ASEAN stability and effectiveness is necessary to sustain global peace and progress – World War III is the alternative
Rajaratnam ‘92 S, Former minister of foreign affairs for Singapore, “ASEAN: The Way Ahead”, 9-1, http://www.aseansec.org/13991.htm We don’t endorse gendered language.
Should regionalism collapse, then ASEAN too will go the way of earlier regional attempts
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ever be unleashed, would be the last war mankind will ever fight.
Mexico says yes – plan solves implementation barriers
Lowe 12 June 12, 2012; Illicit funds from Mexico find safe haven in U.S.; Economic reporter for CNN; http://www.cnn.com/2012/06/12/opinion/lowe-mexico-illicit-funds-u-s-
Evidence in the report suggests that much of this illicit money ends up in the
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highly effective, low-cost option available to us in this fight.
is fight.