Offshore: Stealth Wealth and the New Colonialism

Norton Shorts

by Brooke Harrington

An eye-opening account of offshore a secretive system making the rich richer while corroding democracy, capitalism and the environment.

This engrossing deep dive exposes how the shadowy global system of offshore finance fuels economic crises and austerity while also undermining democracy and the rule of law. Sociologist Brooke Harrington trained as an offshore wealth manager then spent years immersed in tax havens around the world, observing and interviewing the experts who keep the secrets and protect the fortunes of the global ultra-rich. She shows what offshore finance costs all of us, and how it has colonized the world—not on behalf of any one country, but to benefit a largely invisible empire of a few thousand billionaires who help themselves to the best society has to offer while sticking us with the bill. As politicians struggle to address the deepening economic and political inequality destabilizing the world, Harrington’s exposé of the offshore system is a vital resource for understanding the most pressing crises of our time.

Genres: Nonfiction, Economics, Politics, Finance, Business, History, Audiobook

176 pages, Hardcover

First published September 17, 2024

About the author

Brooke Harrington is Associate Professor of Sociology at Copenhagen Business School, Denmark.

Reviews

[Tim Null · Rating 5 out of 5]

Colonialism 2.0 is the mother of Evil, and the associated austerity programs that subjugate the needs of the masses are Evil's father. Mother and father depend upon stealth forms of offshore wealth management to finance their new formations of age-old injustice and cruelty. Colonialism 2.0 develops an environment where demagogues and fascists can thrive because it allows them to be invisible, "so instead of revolts, we get populism and pogroms. This is where offshore intersects with the global rise of anti-democratic authoritarian movements."

The Offshore book describes how stealth wealth works. Its "secrecy and scope" is discussed along with its social, political, economic, and environmental impact.

This book also describes the history of this new form of finance and how it funds old evils. This book is essential homework for us all because we can't begin to root out the new forms of these old evils if we don't understand how they operate.

[W.D. Clarke · Rating 5 out of 5]

Offshore: Stealth Wealth and the New Colonialism, by Brooke Harrington, is a heavily-endnoted "Norton Short" of about 100 pages—at about half the length of Oxford's VSI series, that makes Offshore a "Very, Very Short Introduction" to the perils and pleasures of covert wealth management, if you will.

I found it to be an utterly compelling (and enraging) read, and would only fault it for its brevity (and since that is by design, I can therefore hardly fault it at all). It makes me want to read much more about this topic in general (fortunately there is a generous related readings section after the endnotes to assist with this), and more by Brooke Harrington in particular (I shall be moving on to her other, much longer at 400pp, work on the topic, Capital Without Borders: Wealth Managers and the One Percent very shortly...),

For the author proved herself to be a reliable tour guide to the many freeports out there, be they actually in Freeport, Bahamas, on other islands  in the former British Empire—one key sine qua non which makes offshore finance even possible—or elsewhere in copycat islands, city-states, and even American states (Delaware, Montana, and a few others being now leaders in "offshoring" attracting foreign capital from a rogues' gallery of bad hombres the world over, as it happens)....

More (much more, alas!) on this over on my blog:
https://blog.wdclarke.org/offshore-st...

[Erik · Rating 5 out of 5]

We know that many of our current problems, and the hesitancy to deal with them, are rooted in the extreme inequality of modern society. Ms. Harrington has a unique background of actually getting certified as a wealth manager so she could circulate amongst the people who manage the finances for the most wealthy. A lot of time and effort goes into maintaining the power structures of these folks and she does a great job describing their impact, both on a global and local level. Her insights into this world are fascinating and illuminating and I enjoyed reading this latest work. (From an advanced copy)

[Duncan · Rating 4 out of 5]

The richest people in the world not paying taxes ruins societies. No surprise here. It also ruins the countries they store their cash in, because of course it does. Don’t be fooled into thinking billionaires are entrepreneur geniuses and purveyors of capitalism. They’re feudalist thieves that rob the public coffers and sit on their wealth.

[Saif Elhendawi · Rating 2 out of 5]

This book promises a tantalizing glimpse into a world that is deliberately opaque: the world of wealth managers who help the ultra-rich disappear their money beyond the reach of states and tax collectors. For a subject so critical to understanding modern inequality, a deep dive is sorely needed. While Harrington's work offers some genuinely fascinating insights, it is ultimately a frustrating read, hampered by a meandering narrative and a surprising lack of conceptual clarity where it matters most.
Let's start with the good, the book's most compelling contribution is its sharp analysis connecting the ghost of the British Empire to the architecture of modern offshore finance. Harrington convincingly demonstrates how today’s most notorious tax havens are disproportionately located in former British colonies, inheriting a legacy of legal and administrative structures ripe for exploitation. This historical lens is powerful, reframing tax havens not as some modern anomaly, but as a continuation of colonial-era power dynamics. Furthermore, she links this shadow economy to a direct critique of austerity and neoliberal policies, advocating passionately for a more equitable society where the tax burden doesn't fall solely on those with the least ability to hide their income.

Unfortunately, the book's significant potential is undercut by some fundamental flaws in its execution. A considerable portion of the narrative is dedicated to establishing the author's credentials and recounting her personal journey into this exclusive world. While a certain amount of scene-setting is expected, it often reads more like a cover letter or an interview script rather than a compelling narrative. This extended focus on the "how I got the story" comes at the expense of the story itself. There is simply not enough space dedicated to the most interesting parts of her thesis, particularly a deep dive into the mechanics of neoliberal economics and their intrinsic relationship with the offshore system. This lack of depth leads to a more significant issue: a muddled and ultimately weak central argument about capitalism itself. Harrington critiques tax evasion and austerity as "disruptions" to capitalism, which feels like a roundabout defense of the system. The implicit suggestion is that problems like neoliberalism, cronyism, and monopolies are corrupting an otherwise "pure" and efficient form of capitalism that could, if left untainted, solve our problems. This feels like a missed opportunity for a more trenchant critique. One can't help but contrast it with the ideas of economists like Yanis Varoufakis, whose book Technofeudalism argues that our economic system may have already morphed into something beyond traditional capitalism. Varoufakis posits that we are now in an exploitative economy focused not on productivity or added value, but on maximizing rent. Offshore seems to circle a similar idea, that there is a new economic system with unique characteristics, but it never commits. It fails to build a coherent framework or explain how such a perspective could be a useful lens for discussing geopolitics and society, leaving its core critique feeling toothless and ill-defined.

Finally, this lack of clarity bleeds into the very language of the book. I was particularly bothered by the way certain terms are misused or left undefined. For instance, Harrington refers to a right-wing, anti-state, pro-billionaire ideology as "anarchist libertarianism." This is both confusing and, frankly, insulting to the anarchist tradition. It completely ignores the vast and varied history of anarchist thought, including prominent strains like libertarian socialism, which are fundamentally anti-capitalist. Do most anarchist thinkers consider billionaires who want to dismantle the state to protect their wealth as comrades? The answer is a resounding no. One can guess what Harrington means, but her refusal to clarify or use more precise language is a serious flaw. It muddies the waters and weakens her analysis, leaving the reader to do the interpretive work the author should have done.

In conclusion, Offshore is a book I was very keen to check out. Its subject matter is vital, and its connection of tax havens to colonial history is a genuinely important insight. However, the work is ultimately a frustrating mix of promising ideas and flawed execution. It gets bogged down in irrelevant personal narrative and fails to deliver the deep, theoretically sound analysis its topic deserves. Readers will walk away with some interesting facts but may feel they've been left stranded, gazing at a complex system from a distance without the tools to truly understand it.

[T Dinh · Rating 3 out of 5]

3.5/5. Hmmm I really wanted to like this more than I did! I think it fell victim to a kind of circular writing that just reiterates the point over and over with the thinnest layer of new information added to each newer version, and that made me grew a bit weary. The book’s politics is mostly sound and it drew out the connection between offshore finance systems and colonialism well, particularly the chapter on how most offshore centers were former British colonies. Since there is a space carved out for this subject already, I wish more time was devoted to showing us the nitty gritties of the process - like how does one actually deposit money into these systems via a case study or something to that effect. I feel like the text gets a little carried away with its (rightfully) sanctimonious tone with a heavy emphasis on why this is bad while lowkey mystifying the process even more. I wanted more from this! But engaging writing and still pretty informative at the end of the day, capital is the roots of all evil fr fr

[Alex · Rating 5 out of 5]

Do you like feeling like a God who is beyond nation states and laws and maybe even death because of your billions of dollars hidden away in tax havens unreachable by governments? No? You're not one of the 3,000 billionaires?

This book is like a 3 hour read, so you must read it!
The contents of this book are crazy to me!
I found it through Anne Applebaum's Ezra Klein show rec.

Offshore affects everyone and hardly anyone knows or cares about it. It makes the rich richer in secret.

Some salient points: 12 TRILLION dollars a year funnels through offshore finance. That's 12% of the global GDP.
In places like Russia where oligarchs rule, it's up to 30% of GDP.

If the top 1% of earners in the US paid the taxes they owe under current law (no changes, no tax increases, just pay their damn taxes), it would raise $175 billion, enough to lift every American out of poverty.

The rich are powerful, they rob us, kill us indirectly, undermine our democracies, and believe that they deserve everything they have, and we deserve everything they gave us. They deny participation in the society that helped them become rich.
And then they ensure their children will be rich and powerful as well. We're back to the wealth concentration of feudalism.

The research methods for this book are also amazing. Harrington trains as an offshore wealth manager to get access to it, embedded sociological study! Badass.

She then describes how colonialism has led former colonies to be impoverished island nations, that then turn to offshore finance to enrich themselves, which serves the rich of the country while undermining the local people, who often endure violence, corruption, and authoritarian rule while the rich use their island as a resort and tax haven. Furthermore, the UK has its own problem, due to common law (I need to go back and understand this part better) with their former colonies that are now offshore tax havens where oligarchs in places like Nigeria or Russia are able to store their wealth in British housing, which has driven up the price of housing by 20%, and big mansions once inhabited by British royalty and arisotcrats now sit empty and owned by foreign investors.
The US is also a big part of the problem, Delaware and South Dakota, for example, which rely on the income from offshoring because they lack other industries.

One issue with offshoring is it doesn't receive enough attention, and when it does (Panama papers, paradise papers, and Pandora papers) there's still only so much that can be done. Because the systems are complex and uninteresting to most, there's nobody clearly to blame for the reduced quality of living, which Harrington attributes to the dissatisfaction that drives populism. Also, the journalists who release these papers have been targeted and killed, so it comes at an extreme risk.

Offshoring is also a national security issue, and the examples given by the author mention the use of sanctioning Iranian offshore assets to bring them back to the negotiating table on nuclear disarmament. Also many mentions of the Russian invasion of Ukraine and how offshoring plays a role in affecting the Russian elites.

How to stop them? The author gives examples that are to shame them and stigmatize them. The fines and legal routes don't work, because they're experts in those or don't care. But if you ruin their reputation, studies show that they'll hurt from that (i.e. Sanctions on Russian oligarchs and seizing assets by offshorers following the war, denying tourist visas to Russians, and refusing to play Tchaikovsky). She also notes that their networks are very fragile, because they want to involve as few people in the secret-keeping as possible. If you remove one offshore manager, they cannot be easily replaced. There is hope, maybe not in the next few years (the USA has become oligarch central).

What if we can't stop them? Harrington writes of an historical example with the latifundia, of the Roman republic, a method of wealth and power accumulation similar to offshoring, that led to pervasive corruption and moral decay that led to the decline of the Roman republic.

[Wendelle]

This book makes for really grim, depressing read. Today is the 4th of July and also marks the passing of Trump's 'Big Beautiful Bill'. As it contains new expansive tax cuts measures for the wealthiest and deepens the US' deficit by 3.3 trillion USD, discussions on the practice of tax avoidance through offshoring has reentered the national rhetoric. Offshoring, of course, refers to the practice of transferring one's wealth to a tax haven so they escapey taxes in their own country. Whistleblowers of the Panama Papers, Paradise Papers, Pandora Papers have been primary sources for knowledge of this practice. I wanted to know the extent of offshoring from a trustworthy source, so I took a look at this brief book from a university professor of economic sociology at Dartmouth. Using the unique technique of immersion ethnography, the author took up the study and credentials of wealth management so as to gain immersive access among people who have firsthand experience of offshoring wealth-- i.e., the wealth managers or cadre of accountants, lawyers and bankers who are in charge of managing the offshored assets of wealthy people.

Here are some conclusions the author reaches:
1. Tax havens harms society collectively because the lost tax revenue forms, of course, the lost tax base for social infrastructure and services, such as housing, transport, roads, education and health care.
This leads to degradation of societies, in terms of societies' investment in its own people

2. The lower-income public have to make up part of the loss in tax revenue by paying the difference with more tax burden on them

3. Despite already receiving higher and more dramatic tax cuts, the rate and proportion at which the most affluent Americans are parking their wealth in tax havens, away from oversight and taxation, have increased

4. Tax havens allow the tax-avoidant to circumvent regulations and exert their own will, even against established laws, and to remake countries under their own image or influence:
Tax havens are harmful not only for lost tax revenue but also due to the practice of secrecy. The real owners of assets are shrouded by layers of secrecy, not only through the practice of putting assets in 'fiscal paradise' countries such as the Cayman Islands or the Bahamas instead of their own countries, but also because the nominal owners or public owners of these assets are not listed in their own names but under hired help. Thus, it becomes hard to trace when these wealth are used for highly questionable or even criminal activity, such as evading campaign finance laws, wildlife selling laws, or financing environmental destruction businesses

5. Even supporters of capitalism as a system should be against offshoring:
Offshoring wealth means two things even for capitalists. First, it goes against capitalist belief on meritorious success in markets through innovation and risk. Instead, the wealthy are able to keep all the successes through untaxed assets, while spreading the risks through publicly-subsidized risk. For example, private corporations, such as Elon Musk's companies, are heavily publicly subsidized by the taxpaying public, to the tune of direct billions of dollars from the government. Furthermore, no person is an island: from humble roots to their rise as corporate empires, businesses benefit from society's collectively tapped tax benefits, such as roads, education of workers, the culture nurtured in incubators such as Silicon Valley, police protection of property rights and so forth.

Second, it goes against capitalist belief in creative destruction: that businesses that can compete productively in the marketplace will survive, while businesses that are not innovative or desired enough will fall. Instead, offshoring is creating stagnant economies. The wealth is staying in generations of dynasties, creating inherited dynastic wealth without challenge or innovation. This means, in the author's view, that there is less wealth to be shared around throughout society, to fund the next crop of innovators who need initial seed funding to risk on their ideas. Society wilts and economies become sterile, which the author cites is what happened in the Ottoman Empire, as riches were parked in a few families outside state control (through vakf).

6. Offshoring is bad even for the countries that welcomed this practice, as the wealthy have outsized power over their democracies and priorities: Island nations that have few other resources to turn to for economic activity, have tried to reinvent themselves as tax havens where no taxes are imposed on the foreign wealth. They imagine that through trickle-through economics, offshoring would create jobs for locals, and livelihoods through financial fees even without taxes. But a lot of these countries' citizens don't see the benefit: the roads, schools, and hospitals are not improved, so there is no net positive reason to host offshored assets

7. These wealthiest people are their own unit, bonding with each other over any national identity or loyalty: offshoring is a practice among Americans, Europeans, Latin Americans, Africans, the Queen of England, the King of Saudi (namechecked in this book).

It's a grim picture of what happens, because as the wealthy take flight with their wealth, a lot of people who remain to pay the price, literally pay the price. The author cites the events of the banking crisis in the US in 2007-2008, when foreclosures led some people to take their life in the midst of financial crisis. Now with the new 'Beautiful Bill', more people will be left in crisis without social supports.

[Oksana O'Neill · Rating 1 out of 5]

Weak on argument or depth. All offshore and all is secret, poses negative effects on the environment and world. That’s about it but said multiple times over.

[Stroop · Rating 4 out of 5]

An illuminating, accessible, and compelling look into offshore finance and its disastrous effects. I appreciate the way the author makes a complex topic interesting and understandable - a true expert. This is a must-read primer for anyone interested in global politics, corruption, and some practical steps toward ensuring more equity.

Thank you to W.W. Norton and NetGalley for the opportunity to read a copy.

[Ieuan Martin · Rating 2 out of 5]

Quite a short read and a bit basic. Not worth the money.

[emma · Rating 3 out of 5]

the writing itself is fine, but it’s not a book that’s particularly revolutionary. an accessible and comprehensive overview of offshore finance and its effects on global politics and economies for the uninitiated. i found it to be a particularly helpful resource, since half the time when “offshore finance” gets thrown around, i end up scratching my head and wondering if i’m supposed to take the “offshore” bit literally (spoiler alert: sometimes).

great book to read if you want to be angry!

[Maria · Rating 4 out of 5]

Frustrating (the problem described, not the book itself)

[Joanne Gass · Rating 5 out of 5]

If you want to learn about the real deep state, read this book! i think it's very important to learn how our modern oligarchs ship their wealth to offshore, tax-free, lawless countries at the expense of us.

[Nakedfartbarfer · Rating 5 out of 5]

I always fantasize about which books I can give to my less radical pals to instantly bring them along, or to my politically-apathetic friends who don't read at all. This is one of those short, formative texts I picture myself wisely handing off to someone, having it speak to them like the voice from the whirlwind and electrifying the underdeveloped anti-capitalist lobe of their brain.

This condescending daydream of mine hasnt yet succeeded, but it does lower the barrier of entry when audiobooks like this are on Spotify :)

[Tom · Rating 5 out of 5]

This is a book that will make you angry enough to take part in a revolution against the 1%.

[Bill C · Rating 5 out of 5]

The impact of offshore funds impact on the society laid out c!early

We have heard the imbalance in what the average tax payer pays versus what the 1% pays.Now we have a clear description of one of the ways that happens. This book also lays out how to avoid the impact of sanctions. What is more it presents some methods to right these wrongs.

[Brandon Livio Annesi · Rating 2 out of 5]

The intention and dedication of the author are admirable. Unfortunately the book barely scratches the surface on a complex topic (how could it not with its barely 100 pages?) that it ultimately fails to explain. Also reaaaally didn’t like how it was written.

[Mia Burke · Rating 4 out of 5]

Sociologist Brooke Harrington investigates how the world’s wealthiest individuals use offshore financial systems to hide assets, evade regulation, and preserve privilege. Harringon situates herself as an embedded participant in the financial world she studies – using her insider status to expose the moral reasoning and self-justifications that sustain elite impunity. Through her combination of historical analysis, fieldwork, and self-reflexive sociology, Harrington presents offshore finance as a contemporary empire built on secrecy. Harrington argues that this system constitutes a “new colonialism,” one that extends the extractive logic of empire into the twenty-first century by transforming former colonies and small states into service hubs for global elites. Harrington’s central claim is that offshore finance represents a continuation of colonial exploitation in a new, covert form – one that enables the wealthy to transcend national boundaries and operate beyond the laws that constrain ordinary citizens.

My wealth management father is less than happy about this reading choice.

"You sound like a little communist."

To that I say:

"Of all the unpaid federal income tax in the United States, 36 percent is directly attributed to the top 1 percent of earners. If they were simply to pay the taxes they owe - not more tax, only what is due under present day law - that would generate $175 billion in additional funds each year. By some estimates, that's enough to lift every American out of poverty".

If this is "democracy" then I don't want it.

[Arlakan · Rating 5 out of 5]

Wow. What a book! So much research and thoughtful analysis of the global crisis known as offshore banking. I saw the author interviewed by Jon Stewart on the Daily Show and just had to learn more about how imperialism is still ruining small island nations, Delaware, South Dakota, Wyoming and eventually all of us who are suckers who pay taxes. Read this book—it’s a Norton Short title and well worth your time.

[Eric Altman · Rating 4 out of 5]

Eat the rich.

[Steve Nolan · Rating 4 out of 5]

the parts about the super wealthy being just bad for society overall are really really well done, because that's my shit

[Brandon · Rating 4 out of 5]

Amazing how easy it would be to solve poverty in the US, if the wealthy actually did their civic duty and paid taxes.

[PastorJoubert II · Rating 4 out of 5]

Essential Reading. Eat your veggies 😇

[Sara · Rating 4 out of 5]

Well that was terrifying.

[Julia Lipscomb · Rating 5 out of 5]

This is the expose on the abuses of offshore finance we all need to know. Offshore illustrates how the uses of offshore finance affect what is and what is not possible in our societies and connects abuses of offshore finance to the declining quality and quantity of public services. Brooke takes an ethnographic approach and immerses herself in conversations and interviews with over 70 wealth managers from companies around the world.

The 5th star is given for writing that is succinct and plain-text and a bibliography ("Notes") that is both robust AND accessible. On the ebook version, the references include internal links back to where they are referenced. Everyone, please read this for awareness. If you're writing a nonfiction book, take note as well.

[David Dayen · Rating 4 out of 5]

A short but cogent volume about why so much wealth is tied up in untraceable locations, and what that does not only to the countries losing out on the tax avoidance, but the tax shelter countries that facilitate it. Offshoring wealth is a poison, a version of the resource curse that infects its host countries. Harrington, a sociologist by trade, learned from the inside the basics of the industry and interviewed the tax planners and consultants who make it happen.

[W · Rating 3 out of 5]

Interesting read which shares how offshore tax havens come into existence however I kept waiting to see if she reveals anything about how the rich actually hide their money (yes I know in these offshore places BUT GIVE ME THE DETAILS) and nothing was actually shared.

Billion Dollar Whale in this aspect was a lot more interesting and insightful.

[Eric · Rating 3 out of 5]

presents interesting points but written like a sociology essay. 3 stars because the narrator sounds like an AI without emotion, very monotone, makes it hard to bare through the topic. Otherwise would've gave it a 4 stars. Still an interesting read to understand how old money remains old money, and the ultra wealth hogging resources without contributing back to a society that raise them.

[DJ Caalaman · Rating 3 out of 5]

A good read for anybody intrigued by the nefarious inner workings of offshore banking and is looking for an introduction to the topic. I wasn’t expecting this book to offer any solutions, though it did suggest to slap some morality into the rich via public shaming (but how do you shame someone who has no shame?)