Driving Financialization- The emergence and growth of financialization from the 1980s has been driven by several factors operating at various levels – national and international, ideological and political, and of course, technological. The 1971 collapse of the Bretton Woods (BW) international monetary system arguably paved the way for financial globalization. Cross-border financing
The BW dollar-gold standard had provided the basis for the relatively stable post-World War Two exchange rate system; ‘regulated’ capital flows of the BW system gave way to a new international financial order based on free-floating exchange rates and freer cross-border capital flows.
At the international level, governments have permitted the proliferation of tax havens for corporations and individuals to evade taxes, ‘recycle’ and hide illicit funds, supported by bankers, lawyers, accountants and other enablers. Such illicit flows in 2014 were estimated at between US$1.4 trillion to US$2.5 trillion.