OECD names tax havens, sparks protest

The OECD has published its blacklist of non-cooperative tax havens, drawing sharp criticism from the countries included in the list. 

The Organisation for Economic Cooperation and Development (OECD) placed Costa Rica, Malaysia, the Philippines and Uruguay on the blacklist, as part of efforts agreed at the G20 summit to crack down on tax havens. 

There is a second 'gray list' of 38 countries that have agreed to improve transparency standards but have not yet fully implemented them. 

The second list included European countries such as Austria, Belgium, Liechtenstein, Luxembourg, Monaco and Switzerland as well Cayman Islands, Chile and Singapore. 

OECD also published a 'white list' of 40 countries that have substantially implemented the internationally agreed tax standards. 

The Group of 20 leading industrialized and emerging nations pledged on Thursday to take action including sanctions against tax havens, using information from the OECD as its basis. 

Malaysia, the Philippines and Uruguay protested they had been wrongly included in the black list, saying their countries were committed to global OECD tax standards. 

In Europe, Austria, Belgium, Luxembourg and Switzerland complained of their inclusion on the gray list. 

Luxembourg Prime Minister Jean-Claude Juncker criticized the way the lists were drawn up and said his country's inclusion of any international list of offshore financial centers meant several US states with tax-friendly laws should also be put in the list.

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NGOs urge action, fairness for G20 summit

Commenting on the G20 summit, NGOs say that there is much more to be done to rescue poor countries from the worst of the global financial crisis. 

During Thursday's G20 meeting in London, world leaders agreed to a raft of measures to combat the global financial downturn, pledging to spend five trillion dollars by the end of 2010, with USD 1.1 trillion going to the IMF. 

The measures would see the sale of gold reserves to help poor countries, a new push to pass free trade rules, major reforms to the International Monetary Fund and World Bank, secretive tax havens named and shamed, and new rules on corporate pay. 

"We welcome the 1.1 trillion dollars for global economic recovery. But we must ensure that poor countries get their fair Share -- that Uganda benefits as well as Ukraine," said Oxfam spokesman, Duncan Green. 

This is while Greenpeace said the G20 had missed a chance to secure long-term environmental improvements, saying there were just 'vague aspirations'. 

"Long-term economic recovery is dependent on tackling climate change," said Greenpeace UK's executive director, John Sauven. 

"A full-blown climate crisis raises the prospect of mass migration, mass starvation and mass extinctions. It will make poverty permanent in the developing world and strangle growth in the developed." 

UK Prime Minster, Gordon Brown, noted that the G20 nations are committed to ward off economic catastrophes; however, he pledged 'no quick fixes', for the global financial crises.

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UN chief: Crisis may lead to social unrest

UN chief Ban Ki-moon has warned that failing to act to halt the global economic crisis could lead to widespread social unrest and failed states. 

"What began as a financial crisis has become a global economic crisis," the UN Secretary General wrote on Wednesday, in The Guardian newspaper, ahead of the G20 Summit in London. 

"I fear worse to come -- a full-blown political crisis defined by growing social unrest, weakened governments and angry publics who have lost all faith in their leaders and their own future." 

He said the global economic meltdown affected the poorest countries the most, and noted that in these countries "things fall apart alarmingly fast". 

"Unless we build a worldwide recovery we face a looming catastrophe in human development," Ban wrote. 

He called for a "truly global stimulus" package, and argued that developing countries need one trillion dollars over 2009 and 2010. 

"There is a thin line between failing banks and failing countries, and we cross it at our peril," he concluded.

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World leaders set to tackle economic crisis at G20

declare an end to unfettered capitalism at a G20 summit on Thursday after France and Germany demanded they act fast on promises to prevent a repeat of the worst economic crisis since the 1930s.

A communique drafted for release at a G20 summit in London, obtained by Reuters, signalled that leaders would submit large hedge funds to supervision for the first time and enhance regulation through a new agency and a beefed-up International Monetary Fund.

It included a pledge to deliver "the scale of sustained effort necessary to restore growth" without making any commitments beyond the trillions being spent to stabilise banks, shore up demand and limit job losses.

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Obama issues ultimatum for US carmakers

Barack Obama has issued an ultimatum for US carmakers urging them to hammer out a viable restructuring plan if they seek more federal aid. 

The US President on Monday insisted that US automakers should try to protect the ailing industry as it is 'an emblem of the American spirit.' 

Obama blamed the collapse of the industry on a failure of leadership 'from Washington to Detroit' over the past years. 

"And so today, I am announcing that my administration will offer GM and Chrysler a limited period of time to work with creditors, unions and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars; a period during which they must produce plans that would give the American people confidence in their long-term prospects for success," the president said at the White House. 

Obama has rejected to merely bailout the car industry, conditioning the federal aid on a major management overhaul on the part of the car industry. 

Less than an hour after the White House announcement, Chrysler revealed that it was forming a partnership with Fiat, while at General Motors Corp. new leaders took charge after the chairman was forced to step down. 

General motors said in a statement that the company would "address the tough issues to improve the long-term viability of the company, including the restructuring of the financial obligations to the bond holders, unions and other stakeholders." 

Earlier today, Democratic Senate Majority Leader Harry Reid had praised Obama's unwavering stance in handling the US auto industry issue. 

"We will not give these companies a blank check," the top Senator said. 

Reid hailed Obama's efforts to protect taxpayer's money that is expected to salvage the auto industry, expressing hope that the President's move would prompt the industry to build more fuel-efficient cars to ensure its long-term survival.

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