Economies change and so must the path to citizenship. In most advanced economies, the fertility rates are low. That leaves those countries with an aging population with too few younger people in the workforce to continue powering the economy. Today the global fertility rate is below 2.5 and it continues to drop. This can result in industrialised nations lacking the human capital necessary to fill key positions and continue to support growth and public funding projects. In an opinion piece for Investment Migration Insider, Stephane Tajick presents his reasons why Citizenship by Investment Programs (CIPs) could be the solution to this problem.
Tajick says that the global demand for talent will continue to grow so advanced countries will need to hire the necessary personnel from other countries. He maintains that CIPs are one way for countries to gain an advantage when attracting this talent. More welcoming administrations will be receptive to CIPs applicants. This will provide them with more investment funding while setting the stage for a friendlier environment for other ambitious individuals with the drive and skills necessary to fill key positions within the economy.
Expect to see key financial centres look to develop their own local investor-friendly programs. That combined with promoting their countries’ CIP in order to attract enough investment and human capital. Residency by investment could be an important way to give these countries an edge. Already the CIP industry has seen increasing competition between the countries offering CIP. Caribbean nations were on the forefront of the CIP industry but the introduction of CIP within select EU nations has changed the market. Competing with the benefits of EU access has prompted Caribbean countries to introduce new options and lower the investment requirements for their CIPs in order to remain competitive. This has been great news for investors from around the world, meanwhile, Caribbean countries appear to be on track for a record year in CBI-based cash infusions. Savvy, wealthy individuals are increasingly seeing the advantages of CBI-acquired passports and the benefits they provide to them both professionally and personally.
As the CIP industry continues to grow and mature, it is anticipated that the EU to set the standard that will spread to CIPs throughout the world. The EU’s pressure to keep programs transparent will help to ensure that applicants are fully vetted, wherever they seek citizenship. This should help to reduce criticisms of CIPs in general while encouraging more countries and individuals to embrace the opportunities CIPs can provide.
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