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Abstract

While designing a project against tax competition, the Organisation for Economic Co-operation and Development has insisted on the establishment of a level playing field. The subjects of this project are predominantly small states with offshore financial centres and few alternatives available to achieve economic development. This paper interrogates the meaning embedded within the term 'level playing field' as used in several multilateral contexts, and most particularly in the debate over international tax competition. The conclusion reached is that a level playing field in the global political economy is a mirage with more substance for some states than for others. It also reflects the power asymmetries that remain between states. However, by introducing a greater emphasis on the level playing field as a plane of 'fairness', it may be possible to create a more equitable negotiating environment between large and small states.