By providing a framework within which countries - large and small, rich and poor, OECD and non-OECD - can work together to eliminate harmful tax practices, the OECD seeks to promote tax competition that will achieve the overall aims of the OECD to foster economic growth and development world-wide. The OECD project does not seek to dictate to any country what its tax rate should be, or how its tax system should be structured. It seeks to encourage an environment in which free and fair tax competition can take place. It was with this objective in view, that the OECD Member countries published the report in 1998 entitled "Harmful Tax Competition: An Emerging Global Issue" (the “1998 Report”). That report focused on geographically mobile activities, such as financial and other service activities, including the provision of intangibles. It developed criteria to identify the harmful aspects of a particular regime or jurisdiction. In particular, it focused on factors that could cause harm by undermining the integrity and fairness of tax systems. This report provides an update to the first edition and is released in 2001.