Current trends of the development of offshore areas

Abstract

The article summarizes the theoretical aspects and practice of the development of offshore jurisdictions in the world economy. Despite the fact that national governments and international organizations are making more and more attempts to counter offshore schemes, the outflow of capital to offshore is quite stable. This is due to the advantages of offshore zones in the form of special tax, currency and customs tariff conditions. An overview of the preconditions required to obtain offshore status was presented. Political stability, the presence of authoritative banking structures and qualified personnel, and a favorable economic and geographical position were listed as the main ones. The classification of offshore jurisdictions, compiled according to certain characteristics, is presented. The article discusses the issues of further deepening the economic development of offshore zones at the stage of economic integration, further improvement of the investment climate in offshore centers due to the inflow of foreign direct investments. In addition, the main positive and negative consequences of the influence of offshore zones on the economy of countries are determined. The essence of the offshore zone, its contradictory nature, and also the classification and types of offshore zones based on various characteristics are given. The role of de-offshoreization carried out by various countries was revealed, as well as the role of international organizations in the fight against money laundering, tax evasion and corruption. On the basis of official documents and scientific literature, the trends of the development of offshore centers, their influence on the movement of global capital, and the state of offshore business in the world were examined. The need for offshore is due to objective prerequisites, in particular, elementary economic competition. World finances are tied to offshore, and some respectable countries earn from the services of offshore companies. The imperfection of the global financial system is compensated by offshore as an element of financial freedom of entrepreneurial capital. It is established that offshores will continue to develop in conditions of constant increased of political pressure, since there is a demand for them and they have clients, including among those who are fighting against them, despite the instability of the financial system, financial crises, international cooperation and anti-offshore rhetoric. The study of the offshore phenomenon will continue as it evolves.