Capitalism 39;s Achilles Heel Pdf Free Download

Capitalism's Achilles Heel: A Book Review

If you are interested in learning more about the dark side of global capitalism and how it affects billions of people around the world, you might want to read Capitalism's Achilles Heel: Dirty Money and How to Renew the Free-Market System by Raymond W. Baker. This book exposes the hidden flows of illicit money that undermine the free-market system and fuel poverty, inequality, and corruption. It also offers some solutions to renew capitalism and make it more ethical, inclusive, and sustainable. In this article, I will provide a summary and a review of this book, as well as some FAQs for further information.

capitalism 39;s achilles heel pdf free download

Download Zip: https://www.google.com/url?q=https%3A%2F%2Ft.co%2FRbOS69GaLp&sa=D&sntz=1&usg=AOvVaw0Nb_lUeODiRTyGr5XHdQ9A

Introduction

What is the book about?

The book is about how dirty money, or illicit financial flows, is the biggest loophole in the global economic system. Dirty money refers to money that is illegally earned, transferred, or used. It includes proceeds from corruption, crime, tax evasion, money laundering, and other illicit activities. According to Baker, dirty money amounts to at least $1 trillion per year, mostly flowing out of developing countries into Western banks and businesses. This massive outflow of capital deprives poor countries of resources for development, worsens global income disparities, and corrupts capitalism's ideals of fair play.

Who is the author?

The author is Raymond W. Baker, an American businessman, scholar, author, and activist. He is the founder and president of Global Financial Integrity, a research and advocacy organization in Washington, DC working to curtail illicit financial flows. He has over 40 years of experience in international business and development issues, particularly as they concern emerging market and developing countries. He has written and spoken extensively on these topics and has testified before legislative committees in the United States, Canada, the European Union, and the United Kingdom.

Why is the book important?

The book is important because it reveals a hidden reality that affects billions of people around the world. It shows how dirty money not only harms developing countries but also threatens global security, stability, and democracy. It challenges some common myths and misconceptions about capitalism and its role in human welfare. It also provides some practical and feasible solutions to renew capitalism and make it more responsive to global justice and development needs.

Summary of the book

Part I: Illegality - We Like the Money

How dirty money flows across borders and undermines the free-market system

In this part, Baker explains how dirty money is generated and moved across borders using various techniques and structures. He describes how bankers, businessmen, lawyers, accountants, politicians, criminals, terrorists, and kleptocrats use secret transactions, offshore havens, falsified pricing, shell How corruption, crime, tax evasion, and money laundering affect developing countries

In this part, Baker shows how dirty money has devastating consequences for developing countries. He argues that corruption, crime, tax evasion, and money laundering drain the resources and revenues that these countries need for public services, infrastructure, health, education, and social welfare. He estimates that for every $1 of aid that developing countries receive, they lose $10 in illicit outflows. He also illustrates how dirty money fuels violence, conflict, terrorism, and human rights abuses in many parts of the world.

How much money is involved and why it is hard to track and stop

In this part, Baker provides some estimates of the magnitude and scope of dirty money. He claims that illicit financial flows amount to at least $1 trillion per year, or about 10% of global trade. He also suggests that the total stock of dirty money in offshore havens could be as high as $11.5 trillion. He explains why it is difficult to measure and monitor dirty money, given the lack of transparency, cooperation, and regulation in the global financial system. He also exposes some of the loopholes and weaknesses in the existing anti-money laundering laws and initiatives.

Part II: Inequality - The Gap Matters

How dirty money worsens global income disparities and poverty

In this part, Baker analyzes how dirty money exacerbates the problem of global inequality and poverty. He argues that dirty money widens the gap between the rich and the poor, both within and across countries. He cites some statistics that show how the richest 1% of the world's population owns more than half of the world's wealth, while the poorest half owns less than 1%. He also demonstrates how dirty money deprives millions of people of their basic needs and rights, such as food, water, shelter, health, education, and dignity.

How myths and secrecy protect the interests of the rich and powerful

In this part, Baker challenges some of the myths and assumptions that justify and perpetuate the status quo of global inequality. He criticizes some of the arguments that claim that inequality is natural, inevitable, or beneficial for economic growth and development. He also exposes some of the secrecy and hypocrisy that protect the interests and privileges of the rich and powerful. He reveals how some Western countries and institutions are complicit in facilitating and benefiting from dirty money flows, while preaching about democracy, human rights, and good governance.

How the global divide threatens stability and justice

In this part, Baker warns about the dangers and risks of ignoring or tolerating global inequality. He contends that inequality undermines social cohesion, political legitimacy, and moral values. He also argues that inequality fuels resentment, anger, frustration, and violence among those who are excluded or exploited by the system. He cites some examples of how inequality has contributed to social unrest, civil war, terrorism, migration, environmental degradation, and pandemics in different regions of the world.

Part III: Disutility - Bentham KOs Smith

How utilitarianism replaced moral sentiments in capitalism

In this part, Baker traces the historical evolution of capitalism and its philosophical foundations. He contrasts the views of Adam Smith, who emphasized moral sentiments and social responsibility in his theory of capitalism, with those of Jeremy Bentham, who advocated utilitarianism and self-interest in his theory of capitalism. He argues that Bentham's influence has prevailed over Smith's in shaping modern capitalism. He claims that utilitarianism has reduced capitalism to a system of maximizing happiness for the greatest number of people, regardless of the means or consequences.

How the philosophy of maximizing happiness leads to minimizing ethics

In this part, Baker critiques the philosophy of utilitarianism and its implications for capitalism. He argues that utilitarianism has corrupted capitalism by encouraging greed, How capitalism's contribution to human welfare is undermined by its own flaws

In this part, Baker acknowledges the positive aspects of capitalism and its contribution to human welfare. He recognizes that capitalism has brought unprecedented levels of prosperity, innovation, and freedom to many people around the world. He also admits that capitalism has some inherent strengths, such as efficiency, flexibility, and adaptability. However, he argues that capitalism's flaws, such as illegality, inequality, and disutility, have outweighed its benefits and have eroded its legitimacy and sustainability. He claims that capitalism needs to be reformed and renewed to restore its moral and social purpose.

Part IV: Run It Right - Trust the System

How to renew capitalism by curbing illicit financial flows

In this part, Baker proposes some solutions to renew capitalism and make it more ethical, inclusive, and sustainable. He focuses on how to curb illicit financial flows and their negative impacts on global development and justice. He suggests some policy reforms and actions that can be taken by various actors, such as governments, international organizations, civil society, media, academia, and businesses. He advocates for more transparency, accountability, and regulation in the global financial system. He also calls for more cooperation, coordination, and solidarity among different stakeholders and countries.

How to spread prosperity by promoting transparency, accountability, and fairness

In this part, Baker elaborates on some of the benefits and outcomes of curbing illicit financial flows and renewing capitalism. He argues that by reducing dirty money flows, more resources and revenues can be mobilized for development and poverty reduction in developing countries. He also contends that by promoting transparency, accountability, and fairness in the global financial system, more trust and confidence can be built among investors, consumers, and citizens. He also asserts that by spreading prosperity more equitably and inclusively, more peace and stability can be achieved in the world.

How to restore capitalism's mandate for global justice and development

In this part, Baker concludes his book by reaffirming his vision and mission for renewing capitalism. He states that his goal is not to destroy or replace capitalism but to improve and enhance it. He believes that capitalism can be a force for good if it is run right and if it serves the common good. He urges his readers to join him in his quest for a more ethical, inclusive, and sustainable capitalism that can fulfill its mandate for global justice and development.

Conclusion

What are the main takeaways from the book?

The main takeaways from the bo