The G20 London Summit called for proposals to be developed during 2009 to extend international tax cooperation to developing countries. These proposals could affect every investment bank and financial institution in OECD financial centres, and those in other onshore and offshore financial centres, that receive funding from Latin America, Africa, or Asia.
The collapse of the international financial system has resulted in two fundamental changes in its architecture. First, based on a concern about systemic risk, detailed proposals in the April 2008 Financial Stability Forum Report for more intensive, systemic, international regulatory cooperation have been adopted by the G20. Second, there has been a shift in power from the G-7 to a broader group of countries: the G20, which includes Argentina, Brazil, China, India Indonesia, Mexico and South Africa.
This new international regulatory framework and shift in power will outlast the present crisis. The question: after the storm has subsided,...