Economic citizenship

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Economic citizenship can be used to represent both the economic contributions requisite to become a citizen as well as the role in which one's economic standing can influence his or her rights as a citizen. The relationship between economic participation and citizenship can be considered a contributing factor to increasing inequalities and unequal representation of different socioeconomic classes within a country.

Contents

Republican notions of citizenship

The republican model of citizenship emphasizes one’s active participation in civil society as a means of defining his or her citizenship. [1] Initially used to describe citizenship in ancient Greece, the republican notion focuses on how political participation is linked with one’s indent as a citizen, stemming from Aristotle’s definition of citizenship as the ability to rule and be ruled.

In relation to economic citizenship, the civil participation discussed by Aristotle can be described as economic participation so critical to the capitalist system. Defining one’s ability to be a full citizenship by his or her economic participation will establish a variegated system of citizenship in which those who can contribute most to the economy will be better represented and have a broader range of rights than those who cannot contribute as much. Variegated citizenship represents the concept that those within a different regime or status receive different levels of rights and privileges. [2]

Economic citizenship in theory

T. H. Marshall acknowledges this concept in his discussion on the relationships between social class, capitalism and citizenship. He argues that capitalism is reliant upon social classes which directly relates to differentiated concepts of citizenship. [3]

Similarly, Alice Kessler-Harris discusses the relationship between one’s ability to labor, and his or her right to equal wages as a component of citizenship. Her central argument addresses how denying a woman the right to labor and equal wages limits her identity as a citizen. [4]

The arguments by both of these theorists contribute to the notion of economic citizenship because they highlight both how economic standing and participation can be linked to one’s identity and privileges as a citizen.

Citizenship by investment

Citizenship-by-investment enables individuals to acquire an additional citizenship by making an exceptional economic contribution to another country. [5] This can be done by successfully completing a citizenship-by-investment program (also referred to as immigrant investor programs). Most of these programs are structured to ensure that the investment contributes to the welfare, advancement and economic development of the country in which they wish to reside or belong to. It is more about making an economic contribution rather than an investment. [6] These programs must be run in a manner which is legal and transparent, and in keeping with the constitution of the nation offering citizenship. This ideally should prevent corruption at the same time as giving the individual obtaining citizenship a sound legal right to their new citizenship. [7]

Immigration and citizenship law specialist Christian Kälin created the term ius doni to describe this type of citizenship by analogy with the terms ius sanguinis and ius soli . [8] Kälin's analysis of the subject points out the increasing popularity of this method to attract high-value investors around the world. [9]

Several countries are currently offering investors citizenship or residence in return for an economic investment. [10] This is usually in the form of requiring a substantial investment, coupled with compliance, residence and language requirements, among others. These countries are very selective in the type of individual they will allow to gain citizenship, however these individuals are more often than not motivated by more than just capital gains, and are looking to invest in a country more substantially from a family, social or cultural perspective. [11] Individuals who bring their family with them as dependents commonly contribute to the economy in a variety of ways, including paying for private schooling, purchasing real estate, extending their business and creating employment. Previously, the majority of countries with citizenship-by-investment programs were located in the Caribbean, for example Antigua and Barbuda, Saint Kitts and Nevis and Dominica. More recently in the European Union, Malta and Cyprus have developed successful programs. [12] [13] It is estimated that each year, hundreds of wealthy people spend a collective $2 billion to add a second or third passport to their collection. [14] It is estimated that in 2018, €100.6 million came in to Cyprus in revenues from the Cyprus citizenship by investment program. [15]

Alternatively, countries may offer certain options to secure a permanent residence. Examples of countries offering such residence programs are the United Kingdom, Switzerland, Portugal, Bulgaria, Canada and Australia. [16]

Economic impact

The economic impact of citizenship by investment programs is mainly a function of the monetary inflows as well as how such programs operate. The primary impact is generally achieved through an investment in the real estate sector of a country, which in turn can significantly boost local economies. In aggregate, this effect can be particularly strong for smaller economies. [17]

The economic effect on smaller states can be illustrated when looking at GDP growth rates over time in Caribbean states for instance. The impact of such programs on a country’s economy is significant and can range from 5.1% to 14%. [18]

Possible advantages of citizenship-by-investment

Possible disadvantages of citizenship-by-investment

Overview of Citizenship-by-Investment Programs [25]
Malta EU - DonationSaint Lucia - DonationAntigua and Barbuda - DonationDominica - DonationGrenada- DonationSt. Kitts and Nevis- Donation
Minimum Investment RequiredUSD $1,100,000USD $100,000 [26] USD $100,000USD $100,000USD $150,000USD $150,000
Visit RequiredYesYesNoNoNoNo
Average Processing Time1 year+3 months3 months3 months60 business days4 months
Residence RequiredYesNo5 days within 5 yearsNoNoNo
Oath of Allegiance RequiredYesYesYesNoNoNo

List of citizenships by investment

Citizenships by investment map
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Current citizenship by investment programs
Former citizenship by investment programs Citizenships by investment.png
Citizenships by investment map
  Current citizenship by investment programs
  Former citizenship by investment programs

Current citizenships by investment

Current citizenship by investment programs include Malta [27] (2014- [28] ), Saint Kitts and Nevis [29] (1984- [28] [30] ), Dominica [31] (1993- [30] [28] ), Antigua and Barbuda [32] (2013- [28] ), Grenada [33] (1997-2001, 2013- or 2015- [28] [30] ), Vanuatu [34] (1996-1997 or 1998-2002, 2014- [35] [30] ), Turkey [36] (2016- [28] ), North Macedonia, [37] Bulgaria, [38] Saint Lucia [39] (2016- [28] ), Cambodia, [40] Samoa [41] (1991-1997, 2017- [35] [42] [43] ), Cape Verde, [44] Austria, [45] Jordan [46] (2018- [28] ) and Egypt [47] (2020- [48] ).

Former citizenships by investment

Former citizenship by investment programs include Scotland (18th century), Belize (1985-2001 or 2002), Ireland (1984-1994 or 1988-1998), Moldova (2018-2019), Cyprus (2007 or 2011-2020), Montenegro (2008-2010, 2015-2022), [49] Comoros [50] (2008-2018), [51] Marshall Islands (1995-1996), Nauru (1998-2000 or 2002) and Tonga (1982-1996). [52] [53]

See also

Related Research Articles

<span class="mw-page-title-main">Permanent residency</span> Status of a person in a country

Permanent residency is a person's legal resident status in a country or territory of which such person is not a citizen but where they have the right to reside on a permanent basis. This is usually for a permanent period; a person with such legal status is known as a permanent resident. In the United States, such a person is referred to as a green card holder but more formally as a Lawful Permanent Resident (LPR).

<span class="mw-page-title-main">Maltese passport</span> Travel document for citizens of Malta

The Maltese passport is a passport that is issued to citizens of Malta. Every Maltese citizen is also a Commonwealth citizen and citizen of the European Union. The passport, along with the national identity card, allows for free rights of movement and residence in all member states of the European Economic Area, as well as Switzerland.

<span class="mw-page-title-main">Cypriot passport</span>

Cypriot passports are issued to citizens of Cyprus. Every Cypriot citizen is also a Commonwealth citizen and a citizen of the European Union. The Cypriot passport, along with the Cypriot identity card, allows for free rights of movement and residence in any of the states of the European Union, European Economic Area, and Switzerland. As of 10 July 2020, Cypriot citizens had visa-free or visa on arrival access to 174 countries and territories, ranking the Cypriot passport 16th in terms of travel freedom according to the Henley Passport Index. Cypriot citizens can live and work in any country within the EU as a result of the right of free movement and residence granted in Article 21 of the EU Treaty. The Republic of Cyprus was formed in 1960. All persons who were citizens of the Republic of Cyprus at this time are entitled to renew their citizenship and passport, whether living on the island or abroad within the diaspora. Their descendants, whether living on the island or abroad, are equally entitled to obtain Cypriot citizenship and passport. These citizens include the Greek and Turkish people, as well as the much smaller communities of Jewish and Armenian heritage.

<span class="mw-page-title-main">CARICOM passport</span> Passport

The CARICOM passport is a passport document issued by the 15 member states of the Caribbean Community (CARICOM) for their citizens. It can be used both for intra-regional and international travel. The passport was created to facilitate intra-region travel; however, citizens of the OECS that are citizens from Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, Saint Lucia, Guyana and St. Vincent and the Grenadines may use a member-state issued drivers licence, national identification card, voters registration card or social security card for travel within the OECS area.

<span class="mw-page-title-main">Antigua and Barbuda passport</span>

Antiguan and Barbudan passports are issued to nationals of Antigua and Barbuda for international travel. The passport is a CARICOM passport as Antigua and Barbuda is a member of the Caribbean Community.

<span class="mw-page-title-main">Commonwealth of Dominica passport</span> Passport of the Commonwealth of Dominica issued to Dominican citizens

Dominican (Dominica) passports are issued to citizens of Dominica for international travel. The passport is a CARICOM passport as Dominica is a member of the Caribbean Community. The Dominican government began issuing biometric passports to its citizens on 19 July 2021, having spent $13 million upgrading its passport systems to improve national security across its borders.

<span class="mw-page-title-main">Saint Kitts and Nevis passport</span>

The Saint Kitts and Nevis passport is issued to citizens of Saint Kitts and Nevis for international travel. Prior to 1983, Saint Kitts and Nevis, together with Anguilla, was an associated state of the United Kingdom. The passport is a Caricom passport as Saint Kitts and Nevis is a member of the Caribbean Community.

The visa policy of Turkey deals with the requirements that a foreign national wishing to enter Turkey must meet to be permitted to travel to, enter and remain in the country.

Immigrant investor programs are programs that allow individuals to more quickly obtain residence or citizenship of a country in return for making qualifying investments.

<span class="mw-page-title-main">Visa policy of Antigua and Barbuda</span> Policy on permits required to enter Antigua and Barbuda

Visitors to Antigua and Barbuda must obtain a visa from one of the Antigua and Barbuda diplomatic missions or in certain cases in United Kingdom diplomatic missions unless they come from one of the visa exempt countries.

<span class="mw-page-title-main">Visa policy of Dominica</span> Policy on permits required to enter Dominica

Visitors to Dominica normally do not require a visa unless they are nationals of the Dominican Republic or Haiti.

<span class="mw-page-title-main">Visa policy of Saint Kitts and Nevis</span> Policy on permits required to enter Saint Kitts and Nevis

Visitors to Saint Kitts and Nevis must obtain a visa unless they come from one of the 104 visa exempt countries.

<span class="mw-page-title-main">Visa policy of Saint Lucia</span> Policy on permits required to enter Saint Lucia

Visitors to Saint Lucia must obtain a visa unless they come from one of the visa exempt countries or countries that can obtain a visa on arrival.

<span class="mw-page-title-main">Visa policy of Grenada</span> Policy on permits required to enter Grenada

Visitors to Grenada must obtain a visa from one of the Grenadian diplomatic missions or in certain cases in United Kingdom diplomatic missions unless they come from one of the visa exempt countries or countries whose citizens may obtain a visa on arrival. Cruise ship passengers of all nationalities can visit Grenada for up to 24 hours without a visa.

<span class="mw-page-title-main">Visa policies of British Overseas Territories</span> Policies on permits required to enter the British Overseas Territories

The British Overseas Territories maintain their own entry requirements different from the visa policy of the United Kingdom. As a general rule, British citizens do not have automatic right of abode in these territories.

<span class="mw-page-title-main">Visa requirements for Saint Kitts and Nevis citizens</span> Administrative entry restrictions

Visa requirements for Saint Kitts and Nevis citizens are administrative entry restrictions imposed by the authorities of foreign states on citizens of Saint Kitts and Nevis. As of 19 July 2022, citizens of Saint Kitts and Nevis had visa-free or visa on arrival access to 157 countries and territories, ranking the Saint Kitts and Nevis passport 25th in terms of travel freedom according to the Henley Passport Index.

Visa requirements for Antiguan and Barbudan citizens are administrative entry restrictions imposed by the authorities of foreign states on citizens of Antigua and Barbuda. As of 19 July 2022, Antiguan and Barbudan citizens had visa-free or visa on arrival access to 151 countries and territories, ranking the Antiguan and Barbudan passport 29th in the world in terms of travel freedom according to the Henley Passport Index.

The Henley Passport Index is a global ranking of countries according to the travel freedom enjoyed by the holders of that country's ordinary passport for its citizens. It started in 2006 as Henley & Partners Visa Restrictions Index (HVRI) and was modified and renamed in January 2018.

Henley & Partners is an investment migration consultancy based in London. The company also advises governments on residence and citizenship-by-investment policy and works with them to develop and implement residence and citizenship programs. According to The Guardian, it "arguably invented the modern 'citizenship planning' industry". Led by Christian Kälin, the firm is, as of 2020, the world's largest investment migration consultancy.

<span class="mw-page-title-main">Christian Kälin</span> Swiss lawyer

Christian H. Kälin or Kaelin is a Swiss lawyer, an author, and the chairman of Henley & Partners, an architect of citizenship-by-investment programs that allow wealthy individuals to obtain additional passports. Dubbed the "Passport King" by the media, he is credited with making citizenship by investment "a legitimate, largely above-board industry".

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