Where governance fails

Abstract

The paper revisits the literatures on financial geographies, advanced business services, world cities and offshore financial centres. Linking these bodies of research, the paper argues that the advanced business services hold considerable power, which they exercise by operating legal and financial vehicles designed to escape the control of governmental or intergovernmental organizations through the use of offshore jurisdictions. This nexus of advanced business services and the offshore world has negative consequences for stability and equity, and represents an important area of governance failure.