In many regions around the world, more often than not, third world and second world countries, such as the middle east and indo-asia and particular parts of Europe, there exists tax havens.

tax havens are areas of the world where taxes are either extremely low or non-existent. this can be accredited to many possible probabilities. For example, in the middle east, oil producing nations make so much profit from their sale and supply of natural resources that the governments do not require any additional sums of money from its populace. Infrastructure, public goods and public services are all paid for by the oil supply.

whereas in other regions, the countries are so small or the populace is so few in number that the government does not require large sums of money to fuel its maintenance and provision of infrastructure and services.

having a tax haven in place means that individuals with large sums of money or corporations who wish to retain a larger amount of their profits for investments and dividends will look to invest money in banks and organisations within the country. this further increases the amount of money flowing within the economy, and allows for even greater growth, employment and improvement.

however host countries of the investors will have less money flowing within their respective economies, meaning that their economies will shrink and growth will be slow as investment decreases.

http://www.businessreviewcanada.ca/money_matters/the-top-tax-havens