CAPITALISM'S ACHILLES HEEL Dirty Money and How to

410 NOTES
of arbitrary assessments while the agreements are in force and followed.
The program has not been particularly successful. In the
United States, for example, with more than 60,000 multinational
corporations in operation and the APA program in existence since
1991, only 492 APA agreements had been executed by 2003. Furthermore,
the APA program reportedly is tainted by scandal, with
many APA officials leaving government to enter the private sector,
then negotiating highly favorable APA agreements with their former
colleagues.
62. Interview by the author with a Treasury Department official, Washington,
D.C., not for attribution.
63. Interview by the author with a Treasury Department official, Washington,
D.C., not for attribution.
64. Interview by the author with a U.S. banker, in flight across the United
States, not for attribution.
65. Lawrence Malkin and Yuval Elizur, “Terrorism’s Money Trail,” World
Policy Journal 19, no. 1 (Spring 2002): 67. I have shared views with
Lawrence Malkin. The United States has been running a current account
deficit consistently since 1982, with expenditures for imports exceeding
revenues from exports. U.S. current account deficits constitute the
largest item on the demand side for dirty money.
66. Karen Tandy, Administrator, Drug Enforcement Administration,
U.S. Senate Caucus on International Narcotics Control hearing on
“Money Laundering: Current Status of Our Efforts to Coordinate
and Combat Money Laundering and Terrorist Financing,” March 4,
2004.
PART II Inequality: The Gap Matters
1. David S. Landes, The Wealth and Poverty of Nations: Why Some Are So
Rich and Some So Poor (New York: W.W. Norton, 1998), xx.
2. Lant Pritchett, “Forget Convergence: Divergence Past, Present, and Future,”
Finance & Development, June 1996, 40.
3. Interview by the author with a senior official, Board of Governors of the
Federal Reserve System, Washington, D.C. The interview was on the
record but I have chosen to avoid identifying the interviewee.