To say that the current system works (its current form is a few decades old at best) is to ignore the massive impact that secrecy jurisdictions have on virtually all developing countries. Offshores are used there to facilitate the extraction of trillions in wealth that often is directly stolen from public resource (such as direct tax revenue, procurement contracts, and, natural resource concessions).
Of course you can argue that any financial problem the public sector has is always a spending problem and never one with the tax base, but that strikes me as a fringe political opinion, and particularly as not a decision that the people of Ghana, Russia, or Ukraine got to make for themselves. Perhaps they're not small government ideologues and would actually prefer to have health care and schools.
Justifying all this by saying that very wealthy and powerful people and corporations need privacy to protect them is pretty cynical.
(Disclaimer: I'm an enthusiastic contributor to "lazy propaganda" like this)