Global Citizenship REVIEW – 2nd Quarter 2018 – The Global Health Issue

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Global Passports and the Dilution of Citizenship | OPINIONS

The Global Citizenship

2 nd Quarter 2018

•

The Global Health Issue

Change is in the Air Pollution and Global Health

Banking on Health: Shifting Luxury from Wealth to Health 01 9 7 7 2 5 1 794008

ISSN 2571-7944 Published Quarterly

Global Power Shifts: Resolution Instead of Alarmism

The Enduring Global Appeal of Real Estate in London


Henley & Partners’ annual Global Residence and Citizenship Conference has become the world’s largest and most significant conference on investment migration. In celebration of the conference’s 12th successful year, we again expect well over 400 attendees, a multitude of industry leaders, top-tier international service providers, and senior government officials who will share first-hand information on the latest developments in residence and citizenship planning. Register now using the promotion code ‘RQ1’ to secure your attendance by visiting henleyglobal.com/dubai2018

Antigua · Australia · Austria · Canada · Croatia · Cyprus · Dubai · Grenada · Hong Kong · Jersey · Latvia · Lebanon · Malaysia · Malta · Philippines


12th Global Residence and Citizenship Conference 4 – 6 November 2018 ∙ Dubai

Define your Future Portugal · Singapore · South Africa · South Korea · St. Kitts and Nevis · St. Lucia · Switzerland · Thailand · United Kingdom · Vietnam


CONTENTS Upfront 5

From the Editor

7

Contributors

8

News and Updates

14

Events

Columns 18

Kochenov Moving from Citizenship to Personhood

19 Brexit Some Clarity for EU Nationals 20 How to Establish Your Family Trust 21

38

Diogenes Noah’s Ark

22 On Trend Banking on Health: Shifting Luxury from Wealth to Health

Opinions 26 Emerging Technologies and the Disruption of Healthcare Services 30 Global Power Shifts: Resolution Instead of Alarmism 34 Asia-Pacific and Migration Tensions: Outlook for 2018 36 Global Citizens and Their Insurance Requirements

42 2 | The Global Citizenship Review

Cover Story 38 Change is in the Air: Pollution and Global Health


Country Review 42 Austria: Europe’s Hidden Treasure

Features 47 Interview Samih Sawiris 48 Reputation Management: Executive Branding for Influential Citizens 51

22

Defamation and Reparation

52 Life in Liechtenstein 54 The Wealth Report 2018 Snapshot 56 Austrian Innovation: Inspiring Ideas 57 Healthcare Philanthropy in North America: A Diagnosis

26

60 The Enduring Global Appeal of Real Estate in London 62 Swiss Living and Healthcare: Leading the Pack 64 France’s Property Wealth Tax for Non-French Residents 66 The Quality of Nationality Index: Nationalities of the World in 2017

Global Life

64

70 Global Citizen: Mathis Wackernagel 74

Property: Berggasse 35, Vienna

76 Marco Polo: Zurich Airport Lounge 78 Culinaria: Silvio Nickol, Vienna 80 Medicus: Dr. David Nott 81 Art Diaspora: Shifting Literary Legacies 82 Books

74

84 Reflections: Niels Bohr

68 2 Quarter 2018 | 3 nd


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UPFRONT

From the Editor

Seeing the Forest

D

ating back to the mid-16th century, the English expression ‘can’t see the forest for the trees’ is just as relevant today — or perhaps even more so, in our digital age. Meaning ‘a failure to grasp the main issue because of over-attention to details’, the idiom offers a powerful parallel to the conundrums faced by any entity responsible for managing and overseeing a system. An individual might neglect the balance of health in his bodily system by myopically focusing on only one aspect of it, such as muscular strength. A CEO might destroy the ecosystem of her organization by nurturing only profit. A government turning its gaze inwards might forget that it is but one player in a global community. To see the forest, one needs a holistic approach. In medicine, a holistic health practitioner considers the whole person — body, mind, spirit, and emotions — when assessing the health of an individual and in pursuit of optimal wellness and balance for that person. Every element of a system affects every other element; indeed, each system itself is part of another, grander plexus. When considering global health, therefore, we need to appreciate that it encompasses an ecosystem of creatures large and small, each with its own set of complex needs — but there are also macroscopic factors that affect all the world’s inhabitants. One of these is air. Part of every functioning system, yet unconstrained by boundaries and free to move with the winds, clean air is essential to good health. Austria, Switzerland, and Liechtenstein, all profiled in this issue, are among the most highly rated countries in the world in terms of environmental health and ecosystem vitality, for which air quality is a key category. For countries breathing less easily, we review in our cover story some of the latest initiatives being used to clear the air, as it were. In the context of citizenship and residence, the REVIEW continues to take a holistic approach to the notion of being part of a macrocosm — part of something beyond one’s home, suburb, city, and country. Global health is a fitting theme for our ambit, and not only because of topical concerns with climate change and the growing link between health and quality of life. If one considers good health to be a marker of optimal balance, then that balance should extend to one’s citizenship and residence options, too. I trust you will enjoy this issue, and, of course, I wish you good health.

Dr. Christian H. Kälin Editor in Chief

2nd Quarter 2018 | 5


UPFRONT

Editor in Chief Dr. Christian H. Kälin Managing Editor Janine Droux

Kamal Rahman UK Jim Rogers Singapore

Senior Editor Monwabisi Mhlophe

Correspondents Jennifer Lai China and North Asia

Publishing Designer Wade Hunkin

Dominic Volek Southeast Asia

Editorial Board Ghada Alatrash Canada Laura Austin US Prof. Dr. Philippe Forêt Kazakhstan/Switzerland Dr. Tony Gao China Nadine Goldfoot UK Prof. Dr. Christian Joppke Switzerland Dr. Parag Khanna Singapore Prof. Dr. Dimitry Kochenov Netherlands Dr. Robert W. Kuipers Switzerland Marnin J. Michaels Switzerland

6 | The Global Citizenship Review

Dua Yassin Middle East Polina Kuleshova Russia/CIS Mark Pihlens UK/Europe Andrew Taylor Africa Domenic Presutti North America Andrea St. Bernard Latin America/Caribbean

Subscribe Scan the QR code alongside, visit gc-review.com, or email subscriptions@gc-review.com Advertise If you are interested in advertising in The Global Citizenship Review, please write to adverts@gc-review.com Feedback Comments and suggestions, praise, and criticism are welcome. Please write to editor@gc-review.com Publication information The Global Citizenship Review (ISSN 2571-7944) is published quarterly by Ideos Publications Ltd., Zurich Switzerland © 2018 Ideos Publications Ltd. This periodical and the individual contributions contained in it are protected under copyright and applicable terms and conditions of the publisher.


UPFRONT

Contributors 26

30

Dr. Bertalan Meskó

René Siegl

is Director of The Medical Futurist

is Managing Director of the Austrian

Institute and Professor at Semmelweis

Business Agency

Medical School

56

Dr. Alois Bischofberger

Jory Pritchard-Kerr

is former Chief Economist of Credit

is Chair of the Board of Directors at

Suisse and a member of the bank’s

the Association for Healthcare

Global and Economic Strategy team

57

Philanthropy

Dr. Kate Coddington

Guy Gittins

is Assistant Professor of Geography at

is Head of Residential Sales at

Durham University

Chestertons

34

60 Andrej Beuth

Craig Leverett

is Managing Partner at Swiss Insurance

is Mortgage Consultant at Springtide

Partners AG

Capital

36

60 Markus Kramer

Nick Stone

is Partner at Brand Affairs AG

is Property Lawyer and Partner at Child & Child

48

60 Amber Melville-Brown

Dr. Thomas Heiniger

is Head of Withers’ Media and

is Health Minister of the Canton of

Reputation team

Zurich

51

62 Martin Gassner

Frederic Mege

is Trust Officer at Allgemeines

is Director at Moores Rowland

Treuunternehmen

52

64 Andrew Shirley is Head of Rural Research at Knight Frank and Editor of The Wealth Report

54

2nd Quarter 2018 | 7


UPFRONT

News and Updates Call for Nominations: The 2018 Global Citizen Award®

Above: Global Citizen Award® 2017 laureate Monique Morrow at the presentation of her award last year. She is flanked by Jennifer Lai, Head North Asia, Henley & Partners Hong Kong; Dr. Christian H. Kälin, REVIEW Editor in Chief and Group Chairman, Henley & Partners; and Paola De Leo, Head of Group Philanthropy and CSR, Henley & Partners

relief organization. Last year, the award went to Monique Morrow, Co-founder of The Humanized Internet, a digital identity project that aims to bring hope to the estimated 1.1 billion individuals in the world (of whom 230 million are children under the age of five) who cannot prove their legal identity. According to Paola De Leo, Head of Group Philan­ thropy and CSR at Henley & Partners, “the state of affairs in our world today is, in every sense of the word, warring. We have taken so many strides forward, and yet we have left so many people behind. In times like these, acknowledging and supporting those who are fighting to turn back the tide of injustice and suffering is more important than ever. This is the meaning and the value of the Global Citizen Award®”. To submit nominations for the 2018 Global Citizen Award®, visit henleyglobal.com/gca Nominations close on 15 June 2018.

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IMAGE: Henley & Partners

Global residence and citizenship advisory firm Henley & Partners is proud to announce the call for nominations for its fourth annual Global Citizen Award®. The award is a tribute to remarkable individuals who are working toward improving and supporting the global community, and whose actions or thinking contribute to a more just, peaceful, and tolerant world, inspiring others to greater heights. The 2018 laureate will be selected by a nine-member committee and honored at the Global Citizen Award® ceremony, which will mark the conclusion of the annual Henley & Partners Global Residence and Citizenship Conference — to be held this year in Dubai, UAE, from 4 to 6 November. The committee is looking for an inspirational individual who demonstrates extraordinary vision, courage, and commitment in contributing to the advancement of a significant and pressing global issue, be it social, political, or environmental. ‘Global issues’ are defined by the UN as issues that transcend national boundaries and cannot be resolved by any one country acting alone. They require concerted, collaborative action at the global level on the part of governments, international organizations, and civil society. The Global Citizen Award® is open to those working in a field with a direct link to global issues, rather than politicians or celebrities. The awardee’s work should not remain purely academic: instead, it needs to have a concrete, positive impact on the lives of vulnerable social groups. The selection process is confidential and is based on a majority decision. The monetary prize has increased this year to USD 30,000, which goes towards supporting the awardee’s humanitarian efforts. After issuing the award, Henley & Partners commits itself to working closely with the awardee for a period of one year, raising awareness about the awardee’s work and supporting the selected project through the firm’s network of more than 30 offices worldwide. Since its inception in 2015, the Global Citizen Award® has honored three worthy recipients. The first was German entrepreneur Harald Höppner, who set up the refugee humanitarian aid project Sea Watch. In 2016, the recipient was Dr. Imtiaz Sooliman, Founder of the Gift of the Givers Foundation, Africa’s largest disaster


Chinese Nationals Show High Interest in Thailand Elite Program Recent reports reveal that more than 20% of applications for the Thailand Elite Residence (TER) Program are submitted by Chinese nationals, whose appetite for Thailand is growing each year. The number of applications received for TER is somewhat surprising as traditional narratives of Chinese migration peg North America as the ideal destination; however, the high interest being witnessed coincides with national statistics that reveal that in 2016, 27% of incoming tourists to Thailand were from China. Nationals from the UK, America, France, and Japan are also showing great interest in the program. The TER is the first program to offer a long-term visa (20 years), with almost 5,000 visas having been granted since the program’s launch in 2003. The program also offers a range of complementary VIP services, including airport transfers for international travel, government concierge services, spa treatments, and medical services.

Malta Residence and Visa Program Makes Great Strides Despite its recent launch in 2016, the Malta Residence and Visa Program (MRVP) has already received over 500 applications. In 2017 alone, almost 450 applications were submitted to the Malta Residency Visa Agency, the agency responsible for the program. The majority of applications have been submitted by nationals of China, Russia, Turkey, and Tunisia. According to Roderick Cutajar, CEO of the Malta Residency Visa Agency, the MRVP will soon be introduced to the Indian market and countries such as Japan and Vietnam. The MRVP affords holders permanent residence in Malta and visa-free travel within the Schengen Area.

“In 1982, Sidney Poitier received the Cecil B. DeMille award right here at the Golden Globes and it is not lost on me that at this moment, there are some little girls watching as I become the first black woman to be given this same award� IMAGES: Shutterstock

IMAGE: Henley & Partners

UPFRONT

Oprah Winfrey on receiving the Cecil B. DeMille Award at the 2018 Golden Globes in recognition of her outstanding contributions to the world of entertainment

2nd Quarter 2018 | 9


UPFRONT

Asian Nations Now Hold the World’s Most Powerful Passports Japan and Singapore have knocked Germany off the top spot of the Henley Passport Index, with citizens of each of these Asian nations now enjoying visa-free access to a record 180 destinations. The German passport has topped the travel freedom index for the past five years, but it is now only the second most powerful passport globally, with access to 179 destinations. Japan and Singapore rose to the top of the index after, among other developments, Uzbekistan lifted visa requirements for Japanese and Singaporean nationals in early February.

Serena Williams, Roger Federer Win Big at 2018 Laureus Sporting Awards Tennis players Serena Williams (US) and Roger Federer (Switzerland) have been named the 2018 Laureus ‘Sportswoman of the year’ and ‘Sportsman of the year’, respectively, in recognition of their stunning sporting achievements. Federer was also recognized for ‘Comeback of the year’. Other honorees at the glittering ceremony held in February in Monaco include: Swiss T54 wheelchair racer Marcel Hug (‘Sportsperson of the year with a disability’), Spanish golfer Sergio Garcia (‘Breakthrough of the year’), and Mercedes-AMG Petronas F1 Team (‘Team of the year’).

Cyprus Citizenship-by-Investment Program Has Raised EUR 6.6 Billion to Date Recent reports indicate that the Cyprus citizenship-by-investment (CBI) program has approved roughly 1,300 applications since April 2017, bringing the program’s total investment contributions to date to EUR 6.6 billion. This achievement means the Cyprus offering, which was launched in 2013, is the most successful CBI program in history, with earnings in 2017 said to be equal to the country’s 2016 GDP.

In a bid to increase tourist inflows to the African country, nationals of 61 countries will now be granted visas on their arrival to Angola. The new beneficiaries include the EU member states and various Asian and African countries, including Botswana, China, Indonesia, Japan, Mauritius, Singapore, South Africa, South Korea, Zambia, and Zimbabwe.

Investment Migration Council Opens New Office in the Caribbean The worldwide association for investor migration and citizenship-by-investment, the Investment Migration Council (IMC), has opened a new office in the Caribbean. The council has described the office as a “touch point that serves to spread the reach of the IMC and its work throughout one of the most important regions for the industry”. The IMC’s head office is located in Geneva, Switzerland; however, the association also has offices in London (UK), New York (US), Grand Cayman (Cayman Islands), and Shanghai (China).

10 | The Global Citizenship Review

IMAGES: Laureus; World Sports Awards; Shutterstock

Angola Offers Visa-on-Arrival to 61 New Countries


IMAGES: Laureus; World Sports Awards; Shutterstock

UPFRONT

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2nd Quarter 2018 | 11


UPFRONT

Jeff Bezos is Forbes’ Top Billionaire for 2018 Jeff Bezos — the Founder, Chairman, and CEO of online retailer Amazon — has claimed the number one spot on Forbes’ list of the World’s Billionaires 2018 thanks to his fortune of USD 112 billion. The centi-billionaire, who purchased the Washington Post in 2013, “is the first person to top USD 100 billion as number one”. In second position on the list is Bill Gates, with a fortune of USD 90 billion. The founder of Microsoft chairs the Bill & Melinda Gates Foundation, dubbed by the list as “the world’s largest private charitable foundation”, to which he has donated much of his wealth. Legendary investor Warren Buffett takes third position (USD 84 billion) and Bernard Arnault and his family rank fourth (USD 72 billion). Arnault is the CEO of luxury goods company LVMH — whose 70 brands include Louis Vuitton, Sephora, TAG Heuer, and Dom Perignon — and now holds the title of Europe’s richest person. Rounding up the top five is Cofounder and CEO of Facebook Mark Zuckerberg (USD 71 billion). The highest-ranking woman on the list is Alice Walton, the daughter of Walton’s founder Sam Walton, at number 16 (USD 46 billion). The 2018 edition of the World’s Billionaires list features a record 2,208 billionaires, whose collective wealth is USD 9.1 trillion, up by 18% from 2017.

Asian Airports Dominate 2018 World Airport Awards Singapore’s Changi Airport is officially the world’s best-ranking airport, for the sixth consecutive year, according to the 2018 Skytrax World Airport Awards. The airport boasts servicing roughly 60 million passengers across 5,000 arriving/departing flights each week. Accompanying Changi in the top five airports rank are Incheon International Airport (Seoul, South Korea), Haneda Airport (Tokyo, Japan), Hong Kong International Airport (Hong Kong), and Hamad International Airport (Doha, Qatar). The leading European airport is Munich Airport (Germany), in sixth place, and its African counterpart is Cape Town International Airport (South Africa), ranked 21st. The Skytrax World Airport Awards were founded in 1999 and are hosted annually, celebrating the top 100 airports of the world. This year’s event was based on over 13 million survey questionnaires completed at 550 airports globally.

Antigua and Barbuda’s citizenship-by-investment program raised almost USD 300 million in revenue for the twin-island nation in 2017. More specifically, USD 64 million in direct revenue was raised for the central government while USD 199 million was injected into hotels, developments, and other investment options. Since the program’s launch in 2013, 1,269 applications have been received, with 321 submitted in 2017.

St. Kitts and Nevis Hurricane Relief Fund a Success According to the Prime Minister of St. Kitts and Nevis, the Hon. Dr. Timothy Harris, the introduction of a hurricane relief fund to St. Kitts and Nevis’ citizenship-by-investment offering was a great success, reportedly contributing to a dramatic increase in interest and applications. The relief fund was established in September 2017 following devastating hurricanes in the region. Prior to its expiry on 31 March 2018, the option allowed investors to make a non-refundable contribution of USD 150,000 to the reconstruction of key infrastructure.

12 | The Global Citizenship Review

IMAGES: Shutterstock

Antigua and Barbuda Citizenship-by-Investment Program Raises Almost USD 300 Million


IMAGES: Shutterstock

UPFRONT

Kazakhstan Moves to Introduce Residence-byInvestment Program Kazakhstan’s Astana International Financial Centre has awarded Henley & Partners the mandate to design a residence-by-investment program for the country. While the program is under design, it is believed the offering will provide applicants permanent residence in the central Asian country. Kazakhstan provides attractive tax benefits as investors are only taxed on local income. According to the COO of Henley & Partners, Juerg Steffen, “Kazakhstan’s situation is comparable to that of Dubai, which also has free trade zones and has gone from being an insignificant town to becom­ing a financial powerhouse”. With this in mind, Kazakhstan’s residence program will likely appeal to entrepreneurs and investors in the region.

IMAGE: Shutterstock

Grenada Citizenship-by-Investment Program Enjoys High Applicant Interest According to the Chairman of Grenada’s Citizenship by Investment Committee Kaisha Ince, the program has enjoyed a boom in interest in recent months, with the volume of applications received in the first half of 2017 said to be triple the number of applications received for the same period in 2016. A growing number of applications are being received from applicants in countries such as India, Vietnam, Thailand, Bangladesh, and Sri Lanka.

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2nd Quarter 2018 | 13


UPFRONT

Events

This May, Frieze Art Fairs will host the seventh edition of Frieze New York, the premier platform for modern and contemporary art, attracting keen scholars, discerning collectors, and expert connoisseurs to revel in a “fresh and exciting experience”. In a bespoke structure overlooking the East River in Randall’s Island Park, Frieze New York visitors will enjoy innovative curated exhibitions, an engaging series of talks, site-specific artist commis­ sions, and quirky pop-ups of the city’s trend­iest restaurants. The fair will host two VIP preview days at which distin­ guished guests will have exclusive access to the show’s almost 200 outfits from 30 countries.

21 May Al Gaffal Traditional 60 ft Dhow Race UAE Dubbed Dubai’s biggest sailing event, the 28th edition of the Al Gaffal Traditional 60 ft Dhow Race will make its annual return to the Gulf’s waters. In commemoration of the UAE’s seafaring history, thousands of Emirati sailors compete in a nail-biting eighthour race that begins at the uninhabited island of Sur Abu Nu’ayr when daylight breaks and concludes 51 nautical miles later at the beaches of Burj Al Arab. The breathtaking sight of hundreds of traditional Arabic dhows battling adverse winds and fierce waters is an exhilarating sight to behold.

14 | The Global Citizenship Review

27 May–10 June French Open France Paris will again play host to the elite French Open international tennis tournament, also known as the RolandGarros, at which luminaries such as Rafael Nadal will battle it out for the title of master of the clay courts. The biggest names in sports, entertainment, and politics are often seen at the prestigious Roland-Garros courts, adding an exciting social flair to what is widely considered the most physically demanding tennis tournament in the world. Two spectacular courts — Suzanne-Lenglen and PhilippeChatrier — set the scene for some of the 2018 edition’s big-ticket matches.

IMAGES: Frieze; Short List Dubai; rafaelnadalfans.com

3–6 May Frieze New York US


4–6 June Investment Migration Forum Switzerland

IMAGES: Shutterstock; Revolution Watch; Ricky Savi/Aspen Ideas Festival

IMAGES: Frieze; Short List Dubai; rafaelnadalfans.com

UPFRONT

The Investment Migration Council will host the renowned Investment Migration Forum — the world’s leading independent forum on investment migration. Attracting academics, government officials, media, and industry stakeholders from over 40 countries, this stimulating event hosts numerous sessions addressing a range of topics, including global migration policy and investment migration; global competition for talent and investment migration; and investment migration developments across regions. The annual Investment Migration Forum is a prime opportunity to network with industry elites, sharing and gaining valuable insights, and staying abreast of the latest developments.

21–30 June Aspen Ideas Festival US The Aspen Ideas Festival has come to be regarded as a leading annual gathering of the most innovative thinkers with the brightest ideas. Held on the sprawling campus of the Aspen Institute in Colorado, US, this weeklong assembly of business executives, entrepreneurs, scientists, scholars, artists, politicians, and other great minds sees over 3,000 attendees par­ t­icipate in lectures, debates, interviews, and impromptu sidewalk convers­ ations. The program this year sees the introduction of two new topic tracks: Freedom of Speech and the Marketplace of Ideas, and Leadership in a Time of Change.

26 June–22 July King Power Gold Cup UK Since 1956, the legendary King Power Gold Cup polo tournament has been a highlight of the British sporting and social calendar. The tournament, sponsored for the first time by King Power, is held in Cowdray Park’s famous ‘Lawns’ in leafy West Sussex, UK. The event draws polo enthusiasts from around the globe who gather to catch the most luminous international stars of the game in action. This year, semi-finals will be played on Wednesday, 18 July, and the highly anticipated final will take place four days later. The King Power Gold Cup is played to decide the British Open Polo Championship and ranks in importance alongside the Argentine and US Open tournaments.

2nd Quarter 2018 | 15


UPFRONT

30–31 May Henley & Partners Global Citizenship Seminars South Africa

12 June–14 July Fifa World Cup Russia

Event Review

T 4–6 November 12th Global Residence and Citizenship Conference UAE

he award-winning ‘World in 2018 Gala Dinners’ is a series of informative events at which The Economist and invited luminaries present their courageously frank predictions for the year that lies ahead. Networking opportunities abound at the opening cocktail function, which is followed by a series of engaging discussions during which prominent thought-leaders share their

16 | The Global Citizenship Review

inspiring forecasts. A sumptuous dinner follows, and attendees are invited to participate in a lively, predictions-inspired table quiz. The Athens event took place at the magical Divani Apollon Palace & Thalasso in the heart of the Athenian Riviera and brought together eminent intellectuals, business leaders, senior government representatives, leading academics, and renowned thinkers.

IMAGES: Henley & Partners; Shutterstock; Hazlis & Rivas

14–18 June Bordeaux Wine Festival France

The World in 2018 Gala Dinner: Athens


IMAGES: Hazlis & Rivas

IMAGES: Henley & Partners; Shutterstock; Hazlis & Rivas

UPFRONT

The evening was hosted by Daniel Franklin, Executive Editor of The Economist, and commenced with ‘Daniel’s Dozen’ — his preview of the world in 2018. Other speakers included Enrico Letta, the former Prime Minister of Italy, and Odisseas Athanassiou, CEO of Lamda Development, who discussed moving towards a stronger Europe in a dialog around ‘Painful truths about Europe’s political and social challenges — What steps need to be taken?’. The next session saw Daniel Franklin in conversation with distinguished business leaders Dominique Bolli, Head of Government Advisory at Henley & Partners, and Vassilis Rabbat, Chairman of the Board of Directors, Managing Director, and General Manager at Xerox Hellas. ‘A Europe of equals?’ was the closing topic discussed along with the economic future of Europe and Greece by notable politicians Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation, and Customs and Effie Achtsioglou, Minister of Labor, Social Security, and Social Solidarity, Greece. The World in 2018 Gala Dinner: Athens was a thoroughly enjoyable combination of food for thought, invaluable networking, and sophisticated entertainment.

Top left: Executive Editor of The Economist Daniel Franklin hosted the event, commencing with his preview of the world in 2018 Top right: Head of Government Advisory at Henley & Partners Dominique Bolli participated in the event’s proceedings Above: The highly engaging event included a current affairs quiz that saw guests competing for the prize position

2nd Quarter 2018 | 17


COLUMNS

Kochenov

Moving from Citizenship to Personhood Dimitry Kochenov, Chair in EU Constitutional Law, University of Gronin­gen Netherlands; Chairman, Investment Migration Council, Switzerland Once humanity and personhood emerges as the key factor in the rights assignment play, the relevance of the formal status of citizenship is profoundly reinvented, if not outright diminished. Those who are French — in terms of how their lives are lived and how their social world is constructed, even if not recognized as de jure French, even bearing foreign citizenship — will stay in France, protected by the European Court of Human Rights. The recognition of rights attached to personhood can thus lead even to the protection of what used to be the sacred core of citizenship rights, such as residence rights among non-citizens in the territory of a state. Under this logic, a place in the nation is not achieved by passing humiliating tests of knowledge about non-existent cultural uniqueness or a random act of birth in particular circumstances, but by being part of a society. The threat of the loss of rights, then, assessed in the context of a concrete life project, will be the key factor of importance for the courts to consider — not the legal status of citizenship. Moreover, the harsh consequences of the loss of rights can even prevent the state from denaturalizing a person or depriving a non-citizen of the core citizenship rights acquired de facto through engagement with the society she/he lives in. The cleavage runs between taking either legal or social facts as a starting point, thus providing a choice between parallel realities and their respective truths. This is the legal recognition of social facts in the growing array of contexts that pushes personhood to prominence, with far-reaching implications for the relevance of the classical normative picture of citizenship that we know from political theory textbooks. The full paper on ‘The Citizenship of Personal Circumstances in Europe’, EUI Department of Law Research Paper No. 2017/07, is available at cadmus.eui.eu/bitstream/handle/1814/46005/LAW _2017_07.pdf?sequence=1 accessed 6 March 2018

18 | The Global Citizenship Review

IMAGE: Supplied

M

aking a citizen is an ideology-inspired legal exercise, implying a choice among the available bodies that could be useful for the achievement of the goals of the authority, irrespective of what these goals may be. Those bodies that are perceived to be less useful are simply excluded from consideration and do not exist in the eyes of the law. Exclusions can run along any lines: geography of origin, race, religion, education, language, or time; you name it, and a legal historical example will be found. The citizenship’s capacity to exclude is its core function, which means that, in the golden days of citizenship — the mythical days of the concept’s unquestioned authority — exclusion at the level of the legal status could only rarely be questioned. As a consequence, working with citizens, the authority enjoys almost universal carte blanche. It creates ethnic electorates, assigns the status of those who are not white enough to its liking to the ‘ancestral homelands’, and declares those it sends away on the grounds of being ideologically or racially deficient to be non-citizens. Under the citizenship paradigm, the fundamental question to consider before determining rights, entitlements, duties, and equality claims is: who is a citizen in this society? Those who are not citizens are entitled to nothing, and this is legally and politically right — even if it is frequently also morally unjust. This is not the same at all with persons. Recognizing the person as a figure of importance for the purposes of constitutional law — as a component part of the demos, however humble this relative innovation might seem — in fact revolutionizes the legal understanding of our society. This is because the perspective opens up the status assign­ ment decisions, which in the majority of cases cannot be contested under the citizenship paradigm, for criticism and legal contestation. Moreover, it flips the sequence of the status-rights interactions. The core question here is: why is this person not entitled to a particular right?


Brexit

Some Clarity for EU Nationals Nadine Goldfoot, Partner, Fragomen Worldwide, UK

K

IMAGE: Supplied

IMAGE: Supplied

COLUMNS

ey information for people uncertain about their future in the EU was made public on 8 December 2017, when EU negotiators and the UK Government released a joint progress report. Summing up results of the first phase of negotiations, the report confirmed that EU nationals exercising Treaty rights in the UK up to 29 March 2019 will be able to remain in the UK after Brexit. This includes dependent family members who currently reside in the UK as well as those family members who are not resident in the UK or an EU member state. The joint progress report translates into three important developments for people looking to secure their rights of free movement. First, the cut-off date provides a timeline for planning prior to the expected withdrawal of the UK from the EU. Secondly, gaining clarity on the right to stay for EU nationals and their family members residing in the UK is a first step in helping people affected by Brexit to plan ahead. Better guidelines on residence rights are a third and essential piece of the puzzle for those who are working to retain their rights of residence post-Brexit. Temporary residence will be given to those who have been in the country for less than five years and therefore do not qualify for permanent residence. More recently, on 28 February, the government set out its proposals for EU nationals arriving in the UK after the cut-off date, or during the transition period, which affords greater flexibility beyond 29 March 2019 than expected. While these transition proposals are subject to negotiation, they provide important clarity. EU nationals and their family members will continue to be allowed to move to the UK during the transition period (from 29 March 2019) on the same basis as they do today. There will be no new constraints on working or studying in the UK in the transition period. This will also apply for UK nationals moving to the EU during this period. Those who choose to stay for more than three months will be able to register through a streamlined registration system.

EU nationals and their family members who arrive, are residents, and have registered during the transition period will be eligible to apply for permanent residence after five years’ continuous and lawful residence. They will also be able to apply for temporary residence status, allowing them to remain lawfully in the UK and work, study, or be selfsufficient for the five years needed to obtain settlement. For family members who join after, rather than during the transition period, it is expected that their eligibility will be in line with the rules in place for British nationals who are the sponsoring family. Irish nationals will not need to register. Having clarified these points, careful planning for people aiming to retain their EU rights of free movement post-Brexit can begin.

Securing EU Rights of Free Movement Much of the focus to date has been on protecting the rights of EU nationals who are resident in the UK post-Brexit as well as on the reciprocal arrangements for UK nationals currently resident in other EU member states. Three additional questions emerge for the global investor client. First, what can UK nationals now do to retain their free movement rights, without compromising their residence in the UK? Second, what measures can EU nationals take to maximize their international mobility and secure EU citizenship and residence in the UK before 29 March 2019? Finally, what is the status of non-UK and non-EU national clients who were planning to move into Europe and benefit from free movement rights now or in the future? There are several options avail­ able for all these groups. While not always an obvious solution, ancestral routes towards citizenship


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of one of the other 27 EU member states should be explored. A recent study at the University of Oxford reveals that even families who are third generation British will likely have deep ancestral roots in Continental Europe as a result of thousands of years of migratory exchange.a Given the history of European emigration and the size of the European diaspora in the contemporary world, this applies equally to all nationalities, and opportunities do exist in many countries. Exploring this route and proving an ancestral link to Europe may thus be a worthwhile undertaking. Where application processing times allow, this can enable a UK or non-EU national to obtain ancestral EU citizenship, and non-UK nationals could, thereafter, establish residence in the UK

prior to Brexit or even within the transition period. Should this route not provide a viable solution, then there remains the option of securing free movement rights by means of economic citizenship. While further negotiations and final withdrawal agreement talks are still under way, we now have the basic guidelines and strategies to help EU nationals, British citizens, and nonEU nationals secure their EU free movement rights and retain their residence in the UK through the transition period. Reference a S Leslie et al. ‘The fine-scale genetic structure of the British population’ (2015) 519 Nature DOI: 10.1038/nature14230

How to

Establish Your Family Trust James Quarmby, Partner and Head of Private Wealth, Stephenson Harwood LLP, UK jurisdictions, trusts can be indefinite. Alternatively, you can state a duration that reflects two or three generations of your family, which is a common option. • The jurisdiction of your trust. You can choose the appropriate law and/or court for the administration, enforcement, and settlement of disputes arising. • Any detailed instructions you would like to specify. This can be written by you in a letter of wishes that sits alongside the trust. A letter of wishes can guide your trustees but is not considered binding. It is worth noting that the costs of setting up and running trusts vary enormously, largely depending on your circumstances. You will almost certainly need a lawyer to create the trust in the first instance, but it is possible to act as trustee of your own trust, in which case the ongoing running costs would be minimal. In other cases, for instance when the trust needs to be offshore, you will need to engage the services of an expensive professional trustee. You also need to consider the tax position of the trust and whether you need annual accounts or tax returns to be prepared, which can also add to the costs.

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espite what you might read in the news, trusts are not usually created purely for tax benefits. Certainly, they are also an effective way of protecting family wealth for future generations. The person who creates the trust is known as the settlor, and will transfer cash or assets to one or more trustees to hold for the benefit of persons she/he has nominated (called beneficiaries). The trustees have to observe numerous duties to administer the trust in accordance with the powers under the terms of the trust, usually recorded in a trust deed, and under any statutory requirements of the trust’s governing law. As the settlor, you will need to decide on the following, essential, elements of your trust: • The assets you would like to put in the trust. • The beneficiaries you would like to benefit from the trust. You can be a beneficiary of your own trust. • The extent of a beneficiary’s entitlement to the assets. You can give the beneficiaries an absolute right to the assets or leave the trustees to direct the distribution of assets. • The duration of your family trust. Under some


Diogenes

Noah’s Ark

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IMAGE: Shutterstock

IMAGE: Supplied

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he events in the biblical report until the time of Noah refer to the history of the entirety of mankind, while the report after Noah refers to the history of the Jewish people alone. The report describes Noah as a righteous and blameless man. Righteousness is a characteristic demand of the Old Testament. It refers to fair dealing between person and person and is a practical demand of paramount importance for the harmonious living together and survival of a community constantly at the mercy of extreme natural forces. Noah appears on the stage of the world when the earth is corrupt and full of violence, and when, therefore, the noise is so loud that hardly anyone else besides him can hear the voice in which the fundamental instruction is contained. Noah is capable of hearing that voice and understands the advice it conveys because he can rest and be silent. His name, meaning ‘rest’, is an indicator that he is in the right state of mind. Noah has three sons. The eldest is called Shem, which means ‘name’ and also ‘there’. Shem, according to biblical tradition, is another of God’s names and its plural, ‘shamajim’ means ‘heaven’. Shem is mentioned in the Bible as being virtuous and worthy of his father’s blessing. People convinced that they are descendants of Shem believe them­selves to be the link between heaven and earth. The second son is called Japhat. His name has to do with ‘beauty’. The name of the youngest son is Ham, the meaning of which has to do with ‘heat’, which could be understood as uncontrolled behavior governed by carnal desires. While his two elder brothers, Shem and Japhat, do not see the naked body as the essence of man, Ham can see it only this way and draws their attention to it. They, being different, do not want to see the naked body as the essence of man. The Bible tells us that they walk backwards while carrying a blanket to cover the naked body of their father in order to not reduce the essence of man to his flesh.

Noah is a sober man who can use his brain to take the precautions needed to avert the greatest thinkable catastrophe — the death of humankind. Seen in this way, Noah is a human hero. Unlike Gilgamesh, the hero in Babylonian mythology, who rejects the marriage proposal of the divine Ishtar, Noah is married and has three sons whose names echo the three distinct qualities of man: yearning for the eternity (Shem), indulging in the beauty of this world (Japhat), and being wild and vulgar (Ham). Another important trait makes Noah completely different from the Akkadian hero. Whereas Gilgamesh needs help and advice from Utnapishtim, the survivor of the Babylonian flood, on how to find the plant that would renew his own youth, Noah’s concern is how to save the lives of all living creatures. This quality enables him to hear the eternal voice and understand the advice and the precise instructions detailing what should be done. Because nobody else can hear what Noah hears, his build­ ing of an ark in the desert to protect himself and his family from the flood that God will send to destroy the earth is, in the eyes of all his neighbors at least, absurd. Noah’s ark is called ‘teva’, which means ‘word’ and ‘nature’. With a little imag­ ination, we can understand Noah’s contemplation: nature (teva) as the indefatigable creative force destroys almost the entire body of life, yet also preserves the seed — a pair of each species — that can continue to create new life. He understands not only the weakness but also the strength of all flesh. The usual cunning, symbolized by the raven, which is known as an amazingly intelligent creature, does not return when sent to find the answer. It is only the dove that returns with a tiny branch of an olive tree. In the old biblical tradition, olive is the fruit of the seventh day, when everybody should be at rest and, like Noah, contemplate the miracle of this world. According to the same tradition, such contemplation is the only genuine prayer.

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On Trend

According to recent estimates by the Global Wellness Institute™, the global wellness industry currently has a value of USD 3.7 trillion.

Investment bank and financial services company Morgan Stanley has predicted that the market for athleisure, described as clothing designed for workouts, will grow to USD 83 billion by 2020 in the US alone.

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eyond the continuing growth of urbanization, the persistent march of globalization and digital technologies influences nearly all aspects of our lives. Given the stress, noise, and ‘always-on’ smartphone lifestyle, city dwellers face an increasing need for peace and quiet. High net worth individuals (HNWIs), in particular, are less interested in attaining status from labels or price tags. They move away from flashy, material ways of reducing anxiety and stress toward avenues that are more novel in their approach, while retaining a sense of olden-day glamour. Today, experience — with a focus on health, sustainability, and

wellness — comprises the new luxury economy. A 2013 study by The Boston Consulting Group, Shock of the New Chic: Dealing with New Complexity in the Business of Luxury, estimated that consumers spent more than USD 1.8 trillion worldwide annually on items they defined as luxuries, such as clothes and jewelry. At the same time, nearly USD 1 trillion were spent on luxury experiences, which ranged from five-star restaurants through to exotic vacation travel. Similarly, according to a report, US Spending 2017, by consumer research group YouGov Affluent Perspective, while discretionary spending on items like fashion,

L’Oréal, the world’s largest beauty company, has announced its commitment to embed­ ding more sustainable business practices into every aspect of its value chain and ensuring that 100% of its products show environmental or social improvement by 2020.

For a brief period, premium retailer Saks Fifth Avenue offered its customers access to The Wellery, an entire section dedicated to wellness classes and services such as salt therapy rooms, fitness boutiques, guided meditations, and golfing simulations.

Above: More retreat offerings are incorporating facilities and services that are focused on providing nurturing experiences as opposed to the fading tradition of hyper-luxury

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IMAGE: Shutterstock

Banking on Health: Shifting Luxury from Wealth to Health


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Above: Hotel Monastero Santa Rosa is a high-end retreat in Italy that specializes in offering guests unique experiences that promote mindfulness, wellness, and restoration

IMAGE: Monastero Santa Rosa

IMAGE: Shutterstock

jewelry, watches, and home décor is down 11%, affluent spending on leisure travel, communication services, and fine dining is up 9% — with 43% of discretionary spending on travel.

example, found that two hours of silence daily incited significant cell development in the hippocampus, the brain region related to the formation of memory. Another 2006 study published in the journal Heart found two minutes of silence to be more relaxing than listening to relaxing Silence is Golden music. The findings were based on changes in blood As discussed in the Global Wellness Summit’s 2017 pressure and blood circulation in the brain. annual trend report, 8 Wellness Trends for 2017 — and Many hotels aim to provide guests with peace and Beyond, retreat offerings incor­ quiet, but these are rarely posi­ porate facilities for quietness, tioned as core offerings. Monastero mindfulness, and time in wild Silent dinners, silent baths, Santa Rosa, for in­stance,this a highnature. This is in contrast to the end retreat set in a 17 century and even silent salons have monastery in Italy, which spe­ hyper-luxurious amenities that may have been emphasized in the in luxury mindfulness. In become the new therapy for cializes past. Silent dinners, silent baths, addition to its coastal views, guests and even silent salons have are drawn to the silence created HNWIs become the new therapy for by the hotel’s unique facilities, such HNWIs. The report also points as its vaulted Roman baths and to ‘wellness monasteries’, which are retreats infused with sauna carved out of a rock. In Germany, the historic Villa the values of ancient sacred spaces and often inspired by Stéphanie at Brenners Park-Hotel & Spa has equipped its modern science. hotel rooms with copper plates, ensuring that guests can Numerous studies over the last decade have highlighted completely disconnect from WiFi, mobile reception, and the benefits of silence. A 2013 Duke University study, for even electricity.

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Catering for Creativity

Mind over Matter

Above all, however, the focus on mental health, through meditation and mindfulness, is redefining what luxury experiences encompass. A 2016 Oxford University meta-analysis, titled ‘Efficacy of Mindfulness-Based Cognitive Therapy in Prevention of Depressive Relapse’, found that mindfulness-based therapy was more effective at reducing depression relapses than antidepressant medication. That same year, Corinthia Hotel London in the UK became the first such estab lishment to have a year-long Neuro scientist in Residence, Dr. Tara Swart from the Massachusetts Institute of Technology, to create new programs tackling mental wellness, resilience, and positivity. According to the US-based International Health, Racquet & Sportsclub Association, the health market has grown to such a degree that health clubs generated USD 27.6 billion in revenue in 2016. In 2015, this figure was USD 25.8 billion, a significant increase from the USD 20.3 billion generated by Digital Detoxing the sector in 2010. The Esalen Institute is a nonIn the UK, well-known individuprofit US retreat center growing als, such as Princess of Hanover Above: As the trend for natural and increasingly popular among promCaroline, and her daughter Charlotte holistic health and wellness grows, so does Casiraghi, are often spotted at inent Silicon Valley figures includthe interest in yoga and mindfulness-based beauty facilities among HNWIs ing ex-Facebook President and exclusive, holistic gyms such as Napster Co-founder Sean Parker Bodyism. Founded by Australianand renowned entrepreneur and founder of software born author and wellness specialcompany Asana Justin Rosenstein. The center, which was ist James Duigan, Bodyism sets itself apart by the founded in the 1960s, is focused on providing yoga and oxygenated air and Vitamin D light fixtures that ensure meditation exercises. It serves as a getaway, removed from its members feel relaxed and rejuvenated. Capitalizing the frantic, technology-driven world. In 2017, global on the trend of health and wellness, in 2017 renowned luxury hotel group Mandarin Oriental introduced Digfive-star English hotel The Lanesborough partnered with the trendy wellness and weight-loss brand to ital Wellness Escapes and Digital Wellness Retreats with the specific intention of helping individuals to detach offer its guests access to one of London’s most cuttingthemselves from their phones and laptops to have a quiedge fitness facilities. et, technology-free time. The treatment starts with a These trends highlight the shifts that are taking shungite-infused bath aiming to help the body eliminate place in current definitions of luxury. For HNWIs, the “free radicals we get through our technology”, as the emphasis has moved away from having towards a described on their website. Unsurprisingly, guest activities more holistic focus on being, as health and wellness also include journaling, writing, coloring, and meditation. becomes the new therapy.

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IMAGES: Shutterstock

According to market research company Nielsen’s 2015 report US Book Industry Year-end Review, 12 million copies of adult coloring books were sold in the US that year, up from 1 million the year before. The firm further found that sales are primarily driven by younger women who find the act of coloring therapeutic and a welcome alternative to online activities. According to the Global Wellness Institute, creativity and the arts are central to wellness concepts, specifically at hotels, wellness retreats, spas, and studios. It refers to Casa Madrona Hotel & Spa in California which offers offline recreational activities, such as private painting lessons and tickets to museums, along with spa treatments. HNWIs may also enjoy the experience of music therapy with over-water light shows and underwater music. For example, at Toskana Therme thermal baths in Germany and Austria, guests can float in warm salt water, while being gently manipulated by therapists.


IMAGES: Shutterstock

The most exclusive way to travel The fastest track through the security checks and then by limousine to the aircraft: all-round assistance on your trip, including a culinary stop in the luxury VIP lounge. The VIP service – for unique experiences, regardless of the airline and booking class. VIP Service, Phone +41 43 816 21 42, vip@zurich-airport.com, www.zurich-airport.com/vip


OPINIONS

Emerging Technologies and the Disruption of Healthcare Services Dr. Bertalan Meskó, Director, The Medical Futurist Institute Hungary

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IMAGE: Supplied

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echnological transitions have taken place in healthcare, wireless health sensors, and wearables or healthcare before. However, in terms of the great direct-to-consumer genetics are restructuring the number of novelties, as well as the scope of their patient–doctor relationship, as well as reconfiguring applications in healthcare, what we are seeing today is the entire organizational structure of medicine. The causing a meaningful, qualitative transformation of the Medical Futurist Institute has come to define this status quo at a rate never seen before. phenomenon as digital health. c The institute considers When personal computers became widely available digital health tantamount to a cultural transformation, in the 1990s, large hospitals and medical facilities began the reason being that disruptive technologies make to store their medical records and general administrative digital and objective data accessible to both caregivers paperwork, such as billing or scheduling, electronically. and patients. This allows for a more equal doctor–patient Later, with the advent of online networking, the world relationship, centered on shared decision-making and saw the birth of telemedical services. By 2016, the global the democratization of care. telemedicine market was already valued at USD 24.9 Patients Will be Empowered billion, and the industry is expected to grow at an annual rate of 18.3% over the next four years. a Digital health contrasts with the more traditional, asym­ The increased popularity of social media networks metrical approach to the doctor–patient relationship, paved the way for the emergence of medicine 2.0 and where the healthcare provider is the ultimate source of health 2.0 in the early 2000s. wisdom and knowledge, and the The rise of mobile phones, and patient a passive recipient of the later smartphones, then led to The global mHealth market is diagnosis, treatment, and out­ mobile health — otherwise come of the prescribed medical expected to reach USD 111.8 care. Based on the wide avail­ known as mHealth. As the use of smartphones spread rapidly billion by 2025, growing at an ability of information available across the globe within just a today, as well as online patient annual rate of 44.2% handful of years, the develop­ communities, this older model ment of healthcare applications is facing challenges, many of inevitably followed. According which may be to its detriment. to Grand View Research as re­ported in 2017, the global In today’s technologically-driven world, patients are mHealth market is expected to reach USD 111.8 billion more informed: they simply Google information, speak by 2025, growing at an annual rate of 44.2%. b up, and ask questions of service providers. Medical Since 2010, the rate at which disruptive technologies professionals will have to accept this new reality and are emerging is prompting significant technological be proactive in suggesting trustworthy sources of change in healthcare, resulting in a qualitative information and digital health devices or services if transformation for both patients and their caregivers. they are to keep abreast of these developments. In We are witnessing the beginning of a paradigm shift: addition, the modern healthcare professional must artificial intelligence (AI), robotics, 3D printing in engage in forms of communication other than personal


Above: IBM Watson’s Nao is an autonomous robot that provides concierge services to guests at select high-end hotels. Similar versions of the robot are being used for educational and research purposes, with an increasing focus in the healthcare industry seeking to establish the role of robots in improving patient-centricity

IMAGE: Sean Gallup/Getty Images

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OPINIONS

visits. If this does not come naturally, it is in their best interest to identify a tour guide to help them navigate the jungle that is current and future healthcare. Patients aren’t only becoming active shapers of their own health, a growing number of patients are also enjoying the opportunity to sequence their genomes and adjust their medication or lifestyle in accordance with the health risks that they identified. Thanks to a plethora of online patient communities, patients now have the means to recognize and address any gaps in their healing process. The online forum, diaTribe, a resource for diabetes sufferers, is just one example of this.d According to the latest estimates provided by the World Health Organization, 422 million people suffer from diabetes worldwide, and the number is growing steadily. This means that 1 in 11 persons lives with the

chronic condition, which may lead to stroke, blindness, heart attack, kidney failure, or amputation, daily. The management of diabetes is especially challenging con­ sidering that patients must monitor blood glucose levels day and night, follow strict meal plans, and measure their blood pressure and weight frequently. Diabetes sufferers are also required to undergo numerous blood tests throughout their lives. Several apps have now been designed to help patients, such as pocket-sized blood glucose meters by Dario and/ or wireless glucose monitors by Medtronic. In the future, various electronic skin patches or digital tattoos could further improve the quality of life for diabetes patients. e Meanwhile, true revolutionary empowerment, from the perspective of the patient, comes in the form of a grassroots movement called #wearenotwaiting, which aims to

2nd Quarter 2018 | 27


Artificial Intelligence Will Support Physicians introduce a DIY artificial pancreas to the market. Reports indicate that the device is able to measure blood glucose Research on computers’ ability to understand images, levels independently and then determine the patient’s text, and videos in the form of artificial narrow intelligence required dose of insulin. One of the leading figures of the (ANI) is skyrocketing. Medical imaging, healthcare data movement Dana Lewis shared with The Medical Futurist management, diagnostics, oncology, and several other how she built an artificial pancreas using existing fields could profit tremendously from the innovation of technologies, emphasizing how it has eased her everyday ANI. Data mining and analytics, coupled with algorithms life. When the US Food and Drug that are able to learn over time, Admin­ i stration approved the will have an impact on entire Precision medicine, targeted healthcare systems and on the device in 2016, Lewis had already been using it for almost two years. flow of health system processes, treatments, and personal­ i z ­ ed Lewis’ experience is but one but most of all on patients’ and example of the positive benefits solutions will thrive as a doctors’ roles. of digital medicine. Medical professionals will be result of new technologies That being said, there are also able to obtain information much many potential dangers that faster and more easily. One of come with the digital medicine the most frequently used online movement. It is for this reason that regulators and resources for biomedical literature is PubMed, which healthcare professionals should work together with contains 28 million citations for bio­medical literature. empowered patients to enable the safe and secure Obtaining this information is time-intensive, but this utilization of technologies in the medical field, both can change with the help of IBM Watson, a program that now and in future. can already process a million pages in seconds. It seems

Above: The Moto Mod is a wearable technology device that is able to attach to the Moto Z smartphone. The device is equipped with an infrared temperature sensor and a finger clip for measuring one’s oxygen levels, which work to give a reading of the wearer’s heart rate, respiratory rate, body temperature, and blood pressure

28 | The Global Citizenship Review

IMAGE: Joan Cros/NurPhoto

OPINIONS


IMAGE: Joan Cros/NurPhoto

OPINIONS

that we’ll soon get to the point when doctors will get a sum­mary of the latest studies in their field as compiled by an algorithm. ANI could also optimize doc­ tors’ messaging platforms by pri­ oritizing their emails and thus save invaluable time normally spent on the most tedious task in the health­ care sector: administration. IBM’s Medical Sieve could become the next generation ‘cognitive assis­ tant’ with analytical reasoning capabilities and a wide range of clinical knowledge. The algorithm may well be qualified to assist in clinical decision-making in radiol­ ogy and cardiology. The impact of AI will also be felt in the field of diagnostics and the design of treatment plans. Pre­ cision medicine, targeted treat­ ments, and personalized solutions will thrive as a result of these new technologies. Instead of one-sizefits-all therapies and prescriptions, the medical community can move towards finding the most effective individual solutions, based on ge­ netic information, personal data, or medical history. IBM Watson recently launched a special pro­ gram for oncologists that is able to provide clinicians with evi­ dence-based treatment options. Watson for Oncology has an ad­ vanced ability to analyze the mean­ ing and context of structured and unstructured data in clinical notes and reports that may be critical to selecting a treatment pathway. By combining attributes from the pa­ tient’s file with clinical expertise, external research, and data, the program identifies potential treat­ ment plans for a patient. You may be asking yourself about the possibility of AI taking doctors’

jobs. This is unlikely as inventors may find it difficult to bestow al­ gorithms with creative problemsolving and complex thinking abil­ ities, as well as the capacity for empathy and altruistic patient care that remains (for the time being) unique to human doctors. It is im­ portant, however, to keep in mind that doctors who use AI will defi­ nitely replace those who don’t.

The Traditional Structure of Healthcare Systems Tumbles Down Digital health makes it possible, then, to move from reactive care towards preventive and personal­ ized care. Globally, the frame­ works of healthcare systems have to be adjusted in accordance with the massive technology-driven changes we are witnessing, and decision-makers are advised to stay ahead of times. The Canadian and New Zealand governments are making good progress in this regard by recog­ nizing the current challenges in their healthcare systems and acting accordingly. Canada recently en­ gaged several researchers, ethi­ cists, entrepreneurs, and futurists to discuss the way forward and the government has since realized the transformative power of 3D print­ ing, AI, and robotics. New Zealand is also in the process of shaping the country’s digital health strat­ egy and, as a responsible govern­ ment, is listening to its citizens and inviting them to express their opin­ ions on the matter.

References a ‘Telemedicine Market Size & Trend Analysis By Product (Hardware, Connectivity & Network), By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), And Segment Forecasts, 2018 – 2025’ (Grand View Research April 2017) grandviewresearch.com/industry-analysis/ telemedicine-industry accessed on 1 February 2018 b ‘mHealth App Market By Type (Fitness, Lifestyle Management, Nutrition & Diet, Women’s Health, Healthcare Providers, Disease Management) And Segment Forecasts, 2018 – 2025’ (Grand View Research Aug 2017) grandviewresearch.com/industry-analysis/ mhealth-app-market accessed on 1 February 2018 c Meskó, Digital Health is a Cultural Transformation of Traditional Healthcare’ (2017) mHealth DOI: 10.21037/mhealth.2017.08.07 d ‘The Future of Diabetes Management’ The Medical Futurist medicalfuturist. com/the-future-of-diabetes-management8-reasons-why-we-face-extraordinarytimes accessed on 1 February 2018 e Talbot, ‘Controlling Diabetes with a Skin Patch’ MIT Technology Review (22 March 2016) technologyreview. com/s/601064/controlling-diabetes-witha-skin-patch accessed on 1 February 2018

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Global Power Shifts: Resolution Instead of Alarmism

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any people believe that America, the leading power of the 20 th century and still the most powerful nation today, is doomed to lose its global dominance to China. The country itself seems to echo these sentiments: it has been somewhat less reluctant than in the previous century to assume responsibility for its position as the leading global power of the 21st century. By contrast, China continues to underline its global ambitions ever more forcefully, with its leadership making its global aspirations very clear and insisting on the superiority of its strategy. This is not just propaganda: signs abound that China is determined to invest its full political, economic, and financial weight into the expansion of its global reach, widespread investments in raw material-rich African countries, the purchase of technologically leading companies abroad, and the ambitious One Belt One Road project. These aspirations and initiatives are based on long-term strategies and are abetted by the billions of dollars of international reserves Chinese authorities have at their disposal. The US, on the other hand, is burdened with high net external liabilities and recurring budget deficits. There is, however, another side of the coin. In the future, China will be faced with enormous challenges, with over-indebted companies posing a danger to national financial stability, pollution threating the health of the populace and the productivity of the economy, large-scale military expenses, and looming demographic imbalance. China will also have to face up to the fact that it has one of the most rapidly aging populations worldwide. According to a study by the US Census Bureau, the portion of the population above the age of 65 is expected to rise from 10% in 2015 to 27% in 2050. While Germany and Italy will share a similar demographic pattern, their increases in the portion of the population

over 65 over time will be much smaller, as both countries were hovering around 21% in 2015. China’s scenario is more demanding, however, as old-age service provision is in its infancy in the country. The expenditures needed to cope with this challenge could overstretch the finances of any country, even one that is as cash-rich as China, possibly making the country heavily dependent on foreign creditors.

Above: China has the fastest aging population globally, with the UN estimating that the country’s dependency ratio for retirees will reach 44% by 2050

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Dr. Alois Bischofberger, Former Chief Economist, Credit Suisse Group


Unemployment Trends in Europe 2017/18 Unemployment in Europe

Youth Unemployment in Europe

17,6%

January 2018

7.3%

January 2017

8.1%

February 2018

16,1%

February 2017

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OPINIONS

Above: Unemployment in Europe is on the decrease following a period of strained economic conditions in the region post the global financial crisis of 2008 (Source: Eurostat, February 2018)

From a demographic perspective, the US is much better just China that is driving the shift of power and political off than China. The same study expects the share of the weight from the West to the East. India and several 65+ age group in the US to rise from 15% in 2015 to 22% other emerging markets in Asia are forcing their way in 2050 unless immigration is impeded by restrictive into the global marketplace. India and smaller Asian legislation. The US is also home to world-class companies countries such as Vietnam and Malaysia have more faand universities and is a preferred location for scientists, vorable demographic conditions than China, and it will innovators, and venture capitalists. It is also the predombe interesting to see whether these nations will duly inant military power of today’s world, but ignoring the capitalize on this advantage. This question becomes all rapid increase in high-capacity arms by the Chinese milthe more pertinent given that China and India stand for itary would be unwise. The US is highly unlikely to stand opposite political and economic governance systems. aside if authoritarian countries This raises the question: how like China or Russia threaten its can Europe prosper in an increasmilitary superiority. The conseIndia and other emerging ingly Asian-dominated world quences of the new arms race are economy? Fortunately, growth markets in Asia are forcing on the continent is strengthening difficult to predict, although history has shown that unparaltheir way into the global again, following the setback sufleled transition periods can culfered in the wake of the 2008 fiminate in upheaval, even chaos. nancial crisis, and unemployment marketplace That being said, there are in the structurally weaker econoarguments against such a dire mies, such as Italy and Spain, is outcome. Globalization increases the price for breaking falling too. Nevertheless, public debt is considerably high, out of international arrangements and resorting to and the European Monetary Union (EMU) is faced with brinkmanship. China benefits from today’s world order, the task of retreating from its ultra expansive monetary free trade, openness towards foreign investments, and policy. This task is a difficult but manageable one. liberalized financial markets. The current pragmatic What is of greater concern are more long-term probChinese leadership is unlikely to jeopardize these lems, such as the lack of competitiveness compared to advantages. There are reasons, in other words, for caution more market-oriented parts of the world and a deficit in and resolution, but not for alarmism. shared common values, which became obvious during We would, of course, be badly advised if we focused the recent refugee crisis. The political divide between our at­tention solely on these two giants. Indeed, it is not old and new member states of the EU has recently wid-

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OPINIONS

ened, paradoxically at a time when the income and wealth system wherein a central authority takes swift decisions gap has narrowed. In addition, the European north–south without having to incorporate the views of quarreling divide has yet to be resolved. political parties. The most promising solutions to Europe’s challengSkepticism about the future attractiveness of free-mares are a sound balance between subsidiarity and solket economies is indeed widespread and fueled by two idarity and implementation of the multi-speed concept. facts: first, the perception that globalization and rapid This concept does not prevent individual EU countries technological change bring about a widening gap in income from getting farther in the integration process, while and wealth distribution, and second, the uncertainty as at the same time allowing other members to proceed to the impact of the changes on business and labor markets. at a slower pace. This is, howIf a growing share of the populaever, not a concept the Eurotion fears being left behind, there pean Commission and some The future role of Europe is an increasing risk of a political member states are embracing. backlash that could undermine in global developments, the the foundations of liberal, marketThose states that are following the official EU approach genoriented economies. fate of the EMU, and the erally favor centralization and Some experts predict mass the deepening and harmonizaunemployment resulting from very existence of the EU tion of relationships instead of technological progress and sewill remain in doubt decentralization and more vere downward pressure on competition. wages in many industries. There If these issues are not resolved, are, however, arguments for a the future role of Europe in global developments, the fate more optimistic view. Robots and computers can subof the EMU, and the very existence of the EU will remain stitute for human labor, of course, but such structurin doubt. Shifts in global power could have consequences al change is not a new phenomenon. In the advanced that go beyond changing the international economic landeconomies, agriculture accounted for over 50% of scape. Should the Chinese model succeed, then authoriemployment 100 years ago. Industries such as textiles tarian political systems could garner favor. Such an outalmost disappeared because of the emergence of procome would not be desirable for those who abide by the ducers outside the industrialized world and the implevalues of personal liberty and self-determination. Politimentation of new technologies. At the same time, many cians and citizens who are tired of the slow decision-maknew branches, primarily in the services sector, surfaced, ing process in democracies might also be enticed by a and value creation, as well as employment opportuni-

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OPINIONS

ties and wages, soon exceeded those in traditional industries. It is fair to say that these transformations took place over an extended period of time, while in this day and age, the time-lag between the invention and diffusion of technological innovation has significantly shortened. For many employees, job profiles will change because of digitalization. Employment in highwage (e.g. IT-related and advisory services, engineering) and low-wage (not least personal services such as cleaning and child care) industries will increase, whereas middle-wage professions (e.g. accountants, routine tasks in manufacturing) are likely to suffer employment losses. Facilitating targeted education and retraining should therefore be a top priority for governments. To sum up, the composition of employment will undergo substantial transformation, more so than employment overall, while income gaps will continue widening. A fair tax system with transparent redistributive elements will need to take this trend into account. How societies will respond to all these changes is difficult to forecast. History and recent events illustrate that citizens are unwilling to forego privileges in difficult times. Fundamental reforms face fierce resistance. The failure to reform old-age provision and outdated tax systems exemplifies the problem. On a world scale, there is an increasing risk of further blows to free trade and the descent of the World Trade Organization into insignificance. The economic successes achieved by open countries will hopefully act as a deterrent to governments that flirt with protectionism. Unclear perspectives pose many challenges for businesses and com-

panies. Traditional business models are becoming increasingly obsolete. New ones will have to be developed, based largely on digital platforms and supported by machine learning technologies. This will have to be done under time pressure and with imperfect knowledge of the clients’ needs and reactions. This process can be disruptive and costly, and companies must be in a position to absorb potentially significant losses. It would therefore be foolish to punish profits and the buildup of financial reserves by imposing high corporate taxes and introducing regulatory barriers to competition. Furthermore, firms must find new ways to attract and retain highly qualified and team-oriented members of staff. Traditional, hierarchical HR management methods and compensation systems are not suited to a business environment dependent on team responsibility and creativity. Finally, companies need employees who are willing to leave their comfort zones and spend years of their professional lives abroad, often in countries with unfamiliar cultural and economic backgrounds. This move into the unknown is demanding, but global citizens tend to be rewarded not only with above-average compensation but also, if they are open-minded, with insights into the social and cultural life of their host countries. If employees embrace these opportunities and relay their experiences back home, they can contribute to a better understanding of the values governing life in other parts of the world. Essentially, globalization means learning from one another.

References Wan He, Daniel Goodkind, and Paul Kowal. US Census Bureau, International Population Reports, An Aging World: US Government Publishing Office, Washington DC. 2016 Brynjolfsson, Eric and Andrew McAfee. 2014. The Second Machine Age. New York NY: W.W. Norton & Company Dorn, David. 2015. The Rise of the Machines. How Computers Have Changed Work. Department of Economics, University of Zurich

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OPINIONS

Asia-Pacific and Migration Tensions: Outlook for 2018 Dr. Kate Coddington, Assistant Professor of Geography, Durham University, UK

T

demanding English language requirements for applicants, and new questions designed to ascertain whether applicants subscribe to ‘Australian values’. The controversial citizenship changes, which were opposed by members of the opposition as well as by numerous immigration advocates, were blocked in the Australian Senate in October 2017, but they continue to be part of the coalition government’s agenda. Similar clampdowns on skilled migration occurred in New Zealand in 2017. New restrictions promoted a “Kiwi-first approach to immigration”, as noted by Deputy Leader of the House Michael Woodhouse, who was Minister of Immigration at the time. Pro­p osed changes to the existing skilled -worker visa program included Clampdown on Skilled The push in the Pacific raising the income threshold to Migration over NZD 49,000 per year, reRim to encourage skilled stricting low-skilled workers to In 2017, moves to restrict skilled migration to Australia culminatmi­ g­ rants opens doors, just three-year visas, and introduced in the abolition of the 457 ing a new requirement that the as opportunities for skilled- partners of skilled migrants visa program, which had attracted over 95,000 skilled foreign migrant mobility elsewhere qualify for skilled work in their workers, such as nurses and own right. However, pushback doctors, to the country. The by employers and some regions are potentially diminishing program was replaced in March prompted the government to 2018 with a new Temporary revise the planned changes, Skill Shortage visa, which offers two- and four-year moving toward a three-tiered system in which skilled visas, targeting a more limited worker pool and includworkers are classified by their salary level rather than ing terms that prioritize Australian workers. This shift by their work experience and qualifications. Meanreflects the conviction of the Liberal–National coalition while, questions about a possible strain in the relagovernment and Prime Minister Malcolm Turnbull that tionship between Australia and New Zealand emerged “Australians must have priority for Australian jobs”. after the 2017 election of a new coalition govern­ These changes were accompanied by efforts to change ment in New Zealand, headed by Labour Party Australian citizenship applications, with the governleader Jacinda Ardern, which casts doubt on the ment proposing an increased waiting period before future ease of cross-border mobility between the permanent residents may apply for citizenship, more two countries.

34 | The Global Citizenship Review

IMAGE: Supplied

he nearly 800,000 Rohingya refugees who have fled to Bangladesh after violence in Myanmar’s Rakhine state have dominated media headlines in recent months, highlighting the precarious nature of migration governance within the Asia-Pacific region. Yet behind the headlines, echoing trends from across North America and Europe, are the increasing restrictions being placed on mobility of all kinds. With Brexit’s uncertain impact overshadowing migration within and to the UK and Europe, and the election of President Donald Trump already bringing new restrictions on migration pathways to the US, tensions over migration in Asia-Pacific have received comparatively less global attention, but they are no less noteworthy.


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OPINIONS

Easing Mobility to Attract Talent Some countries across the Asia-Pacific region mirrored this trend towards restricted migration, particularly Thailand, where the abrupt imposition on 23 June 2017 of the Royal Ordinance on Foreign Workers Management — with its penalties for employing undocumented workers — resulted in over 60,000 migrants fleeing Thailand the following week and pushback from employers around the country. Other countries pursued different strategies, hoping to ease mobility, particularly for highly skilled workers. Taiwan, for instance, has relaxed visa requirements for university students and foreign workers from Association of Southeast Asian Nations member states as part of its New Southbound Policy plan. The country is developing a raft of immigration policy changes that are designed to attract skilled foreign workers, including the authorization of dual citizenship, as part of the National Development Council’s plan for retention of talent in Taiwan. Simplified visa applications are also part of the new plan. Japan has introduced similar immigration reforms, easing requirements for skilled workers applying for permanent residence, and building on the 2012 transition to a points-based system for skilled migrants. The Japanese government has advertised the scheme as offering “green cards for highly skilled professionals”, with as little as one year’s waiting time. China, too, has begun to reform its permanent residence rules to attract more highly skilled foreign workers: new regulations allow permanent residents to live in the country, own property, and enroll children in local public schools. Accompanying these

relaxed rules are new Foreigner’s Permanent Residence Identity Cards, which embed users’ identity information within the card, reducing their need to carry passports when opening bank accounts or accessing public services.

Outlook for 2018 Many of these initiatives to ease migration for skilled foreign workers throughout Asia-Pacific occur even as traditional skilled-worker destinations — such as the US, the UK, Australia, and New Zealand — have initiated restrictive immigration regulations targeting migrants, from asylum seekers to highly skilled employees and students. The push in the Pacific Rim to encourage skilled migrants opens doors, just as opportunities for skilled-migrant mobility elsewhere are potentially diminishing. Countries in the region are seizing the opportunity presented by skilled workers who find themselves shut out of traditionally desirable destinations. As global uncertainty related to the transformation of relations between the UK and Europe as well as the instability of the US under President Trump increases in 2018, there likely will be more contradictory responses to global mobility: that is, increasingly restrictive approaches toward low-skilled or forced migrants, combined with mixed approaches toward highly skilled migrants, as typified by the Asia-Pacific region. In the long term, countries that ease restric­tions on migration should benefit, since migrants diversify their destinations, whereas the promotion of ‘country-first’ migration agendas has the potential to limit migration, economic growth, and the development of diverse societies.

References B Doherty, ‘Australia’s Move to Restrict Migrant Intake Reflects Broader Global Trend’ The Guardian (Sydney, 18 April 2017) theguardian.com/australia-news/2017/ apr/18/australias-move-to-restrictmigrant-intake-reflects-broader-globaltrend accessed 2 January 2018 H Konatsu, ‘Easier Permanent Residency for Highly Skilled Foreign Professionals — Is Japan Ready?’ (Nippon.com, 11 April 2017) nippon.com/en/currents/ d00304/ accessed 2 January 2018 EA Roy, ‘New Zealand Restricts Skilled-Worker Visas in “Kiwis-First Approach to Immigration”’ The Guardian (Sydney, 19 April 2017) theguardian.com/world/2017/apr/19/ new-zealand-restricts-skilled-workervisas-in-kiwis-first-approach-toimmigration accessed 2 January 2018

2nd Quarter 2018 | 35


OPINIONS

Global Citizens and Their Insurance Requirements Andrej Beuth, Managing Partner, Swiss Insurance Partners AG Switzerland

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oday, one can insure almost everything. Standard the relevant skills and experience, as well as discretion, insurance products include offerings for are most important — and don’t come cheaply, which household effects, private liability, car, legal is why high net worth individuals (HNWIs) should protection, travel assistance, valuables and fine art, life, consider kidnap and ransom insurance carefully. Kidnap or a directors and officers’ liability insurance. Most of and ransom insurance providers tend to provide 24-hour these insurance products are similar across different access to qualified crisis management teams and can countries, meaning comprehensive coverage is generally conceptualize a communication strategy, liaise with easy to find. If this is not the case, a sales representative local police and public authorities, and organize widefrom an insurer or an independent insurance broker ranging assistance for relatives. will be able to assist you to find a suitable solution for International Health Insurance your coverage needs. However, it is important to choose an advisor you can Global citizens are usually financially independent but trust, as advisors have access to their clients’ private and often have little time to review their insurance statuses. confidential information, meaning discretion is of utmost Tax planning, citizenship and residence planning, real importance. The last thing you want to be common news estate, investment counseling and the like all sound is, for example, your ownership much more interesting and of a high-value artwork or prized important than health insurance, family jewels. While clients may af­ ford which is frequently forgotten As a global citizen, there are about, until one falls ill or is to pay a ransom, there are involved in an accident. two types of insurance cover that may be of particular interest. A low cover health insurance other costs involved in plan often has a similar marketKidnap and Ransom deal­ing with a kidnapping ing premium to a high coverage Insurance plan; however, the two options incident In some countries, kidnapping offer vastly different protection. poses a serious threat to wealthy Furthermore, differences will families; however, these days, an increasing number of also be noted with respect to service experience when victims come from middle-class populations. Increas­ making a claim, and the responsiveness to client queries. ingly, kidnap targets tend to be youths and students, as In fact, in the long run, a low coverage plan tends to parents are highly likely to pay ransoms. Sometimes be more expensive, as there will be a notable gap between kidnapped persons are brought home on the same day the cover offered and the service a client receives from if the criminals receive the requested ransom. the insurance provider. That is why it is important to While clients may afford to pay a ransom, there are remember that there is much more to consider than other costs involved in dealing with a kidnapping premium costs when evaluating health insurance covincident, including the costs of crisis management and erage. Indeed, the cost of premiums is only the tip of legal advice. Professional negotiation teams that possess the iceberg.


IMAGE: Supplied

OPINIONS

Kidnapping Trends in 2017 Kidnap duration

85%

Kidnaps by region and perpetrators

of kidnaps lasted less than one week

Europe and CIS

of kidnaps 4% lasted longer than four weeks days was the 2,073 longest recorded case to end in 2017

1% Americas MENA 64% 97%

10%

22% Sub-Saharan Africa

Criminals Islamist terrorists

14%

48%

Key Region

Asia Pacific

22%

3%

77%

19%

83%

4% 13%

7% 16%

Other armed groups Above: The highest number of kidnapping incidents are reported in South America, with Brazil, Colombia, Mexico, and Venezuela considered kidnapping danger zones. Wealthy travelers to these countries face a particularly high risk (Source: Control Risks, March 2018)

Reputable international health insurance coverage may the later you join the more likely an insurer will refuse even be the difference between life and death, especially coverage or include restrictive exclusions within the plan. in an emergency that requires rapid intervention and, again, Younger clients should also note that while heart disease an experienced team. Having this protection allows you and cancer diagnosis are more common for senior citizens, also to seek medical counsel from young clients are more likely to the best specialists and hospitals. be afflicted with respiratory isIt is important to remember sues, digestive disorders, back Additionally, certain treatments are only possible in particular muscle pains, and mental that there is more to consider and countries and sometimes only via disorders, and should ensure sufthe arrangement of a specialized than premium costs when ficient coverage for these. insurer. International health inOften clients prefer to select evaluating health insurance a less expensive international surance offers global solutions. health insurance option beIn this regard, it is important to coverage understand your coverage rights, cause they may have another especially when it comes to health insurance plan in their worldwide treatments and free choice of doctor and hoshome country. However, as a global citizen, opting for pital. This is even more relevant as the rise of medical a low international premium, and thus low coverage, is tourism is giving fuel to the trend of clients selecting cheapnot advisable. Two low-cover health insurance plans er country/clinic options even when they do not necessarcannot replace one good plan: it is best to opt for a reputable international cover instead of relying on a ily have to (based on their available coverage). local plan. When in doubt, it is worthwhile to seek There are other variables to consider when selecting an further opinions and advice so that you obtain the best international health plan, including online claims experisolution for your needs. In such instances, an experienced ence, coverage exclusions and limits, and risk factors for younger or older people. For younger clients, it is advisable international health insurance consultant can play an to confirm a comprehensive policy as soon as possible, as important, even lifesaving role.

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COVER STORY

Change is in the Air: Pollution and Global Health

W

orrying about the air always occupies a part of your mind,” a gallery assistant in Beijing tells a journalist from the New Statesman reporting on the pollution there. “You can’t forget about it.” The woman’s words, uttered in a

climate-controlled, crisply cool art gallery in downtown Beijing, reflect the smog outside — ever-present, ominous, at the back of every breath. In Beijing, banks of smog choke the city for days on end, with the winter months being the most congested. But while Beijing

38 | The Global Citizenship Review

IMAGE: Shutterstock

The 2018 Environmental Performance Index regards air quality as the top public health threat. With smog suffocating not only citizens but countries’ economies too, some remarkable initiatives are, quite literally, planting the seeds for fresher air


Left: In the last five years, Beijing has closed down roughly 2,000 factories and coal power plants as part of its concerted effort to improve air quality. By the end of 2017, significant improvements were starting to be noticed

IMAGES: Shutterstock

IMAGE: Shutterstock

COVER STORY

Left: As of 1 January 2018, the Brussels Capital Region is officially a low emissions zone, which entails restricting polluting vehicles from roads. The restriction is in place all day and every week

regularly makes the news, it’s not the only city garnering Performance Index (EPI). The EPI, produced jointly by a reputation for sub-optimal environmental conditions. Yale University and Columbia University in collaboration By the end of January 2018, London had already with the World Economic Forum, ranks 180 countries reached annual legal air pollution limits — a mild on 24 performance indicators across 10 environmental improvement from 2017 when the limit was reached health and ecosystem vitality categories, providing a within the very first week of January. Nitrogen dioxide gauge (on a national scale) of how close countries are (mostly from road transport, and from diesel emissions to achieving their environmental policy goals. in particular) and PM2.5, particles or liquid droplets But for countries with low scores on air quality, it’s not smaller than 2.5 micrometers (also primarily from road all doom and gloom. Reuters reported at the end of 2017 traffic), are the main culprits. that thanks to the Chinese Government’s tough antiIn cities surrounded by extensive agriculture, airborne pollution measures, Beijing is starting to breathe a little ammonia is a more pressing issue. Delhi and Lagos are more easily. Measures of PM2.5 had shown an almost 20% two cities that often suffer levels above the ‘harmful’ improvement by the end of 2017 — the greatest improve­ threshold; Beijing is also vulnerable to the lung disease ment in at least nine years. Crediting both long-term efforts that can be triggered by this by the Chinese Government and chemical. Karachi is the city with short-term efforts over winter, the highest levels of ozone, which By the end of January Anders Hove, an energy consultant promotes smog, with other ozone based in Beijing, elaborates on the 2018, London had already improvement: “After 2013, the air hotbeds including Delhi, Beijing, and Lagos. Paris, Los Angeles, reached annual legal air in summers got much cleaner, but Houston, Bangkok, and Istanbul winter had not shown much pollution limits also score relatively high in improvement. This year is the first this category. winter improvement we’ve seen According to a recent report by during this war on pollution”. the Hurun Research Institute in Shanghai, air pollution Efforts by the government have included rolling out is one of the three reasons most commonly cited by a national clean-air action plan, which saw the government wealthy people seeking to emigrate permanently from pledging CNY 10 billion to a smog-fighting fund in 2014 China. (The other two are food safety and limited and funds being allocated to nine provincial governments education opportunities.) Separate research using data in key target areas. In one area alone, for example, from China’s most popular search engine, Baidu, reveals 800,000 households switched from using coal to using that citizens tend to use more emigration-related natural gas or electricity to heat their homes, cutting keywords in cities where the air pollution is severe. The coal consumption by two million tons; in addition, nearly term ‘smog migration’ has been used to describe this four million old vehicles were removed from the area. emerging phenomenon. The result was a one-third drop in average annual PM2.5 Australia, the US, and Canada — incidentally, the in the area. three countries most popular among migrating Chinese The Chinese Government is implementing restrictions nationals — rank 1st , 4th , 10 th , respectively, in terms of on development and construction near natural features global air quality, according to the 2018 Environmental such as rivers and forests. To replace reliance on coal, it

2nd Quarter 2018 | 39


COVER STORY

Global Percentage of Observations Above ‘Harmful’ Threshold

Los Angeles 19.8

Houston 14.0

Paris 16.2

New York City 6.6

Beijing 21.2

Istanbul 12.5

Delhi 26.3

Tokyo 12.1

Karachi 32.2

Mexico City 10.7

Shenzhen 14.0

Mumbai 18.0 Kolkata 16.1 Dhaka 17.1

Lagos 21.0 São Paulo 5.0

Bangkok 14.0

Buenos Aires 0.7 Percentage of observations above ‘harmful’ threshold (70 parts per billion/volume) 0.5

10

20

30

40

Above: Ozone levels for some of the world’s leading megacities — defined as large cities with a population of at least 10 million — as captured by satellite aboard NASA’s Aura satellite (Source: Science, March 2017)

to 26% by 2035. Already, 33.8 million ha of forest have is investing heavily in wind and solar power — more than almost any other country in the world, in fact. The been planted nationwide over the past five years. The UK has also announced plans to plant 50 million government has also installed an array of monitors nationwide to track levels of PM2.5. The data from these new trees over 62,000 ac in one of the most tree-sparse areas of northern England. And in October 2017, London monitors is not only available to the public but also easily accessible via smartphone, which Mayor Sadiq Khan signed the city up incorporates an element of public to the BreatheLife coalition organized Initiatives around the monitoring into the system; anyone by the WHO, the UN Environment can see whether a facility is sticking world show that these Programme, and the Climate and to its emissions limits, and if it is Clean Air Coalition. There are also dispersed local efforts are plans to limit the use of wood-burning not, can report transgressions via social media. in the capital and to implement building into a unified stoves The government’s latest initiative charges on older, more pollutionwill see 60,000 Chinese soldiers heavy vehicles entering the city center global wind of change reassigned to a novel form of ‘air from 2025 onwards. defense’, over the course of the year Similar initiatives around the world working towards populating an area roughly the size of show that these dispersed local efforts are building into a Ireland with trees. According to Zhang Jianlong, Head of unified global wind of change. In Delhi, auto-rickshaws now China’s State Forestry Administration, the goal is to increase run on compressed natural gas, road dust and vehicle emissions China’s forest coverage from 21% to 23% by 2030, and up are more tightly controlled, and there are higher penalties

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COVER STORY

Emission of Acidifying Gases by Economic Activity in the EU 2010 Other services, water supply, and construction 5% Transportation and storage 20% Electricity, gas, steam, and air conditioning supply 16%

2015 Households 9% Agriculture, forestry, and fishing 37%

Mining and quarrying Manufacturing 1% 13%

Other services, water supply, and construction 5%

Households 9% Agriculture, forestry, and fishing 43%

Transportation and storage 20% Electricity, gas, steam, and air conditioning supply 12%

Manufacturing 11%

Mining and quarrying 1%

IMAGE: Shutterstock

Above: Comparison of emission of acidifying gases by economic activity in the EU’s 28 member states in 2010 and 2015. Air pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), and ammonia (NH3) are among the leading contributors to the acidification of the environment (Source: Eurostat, February 2018)

for burning rubbish. Significant attempts are being made to reduce the use of polluting cooking gas and move towards clean cooking stoves, which could potentially cut air pollution by one third. A scheme to reduce traffic congestion, in which vehicles with odd and even number plates can enter the city on alternate days, has also been implemented. Paris has imposed a similar number-plate-driven system, along with bans on cars in historic districts on weekends; it also offers free public transport during high-pollution events. In Freiburg, the administration encourages car-free living by offering cheaper housing, free and efficient public transport, and hundreds of kilometers of bike routes with ample parking space. Zurich limits the number of cars allowed into the city at any given time, and car-free zones, tram lines, and pedestrianized streets have citizens breathing more easily. Large areas of Copenhagen have been closed to vehicles for decades already. “The turning point is here, but we cannot rule out the possibility [that] we can turn back,” said Ranping Song, Developing Country Climate Action Manager for the World Resources Institute. “We need to be cautious about challenges and not relax now that there have been improvements. There are lots of issues to be solved.” In the long run, clean air equals more sustainable and more cost-effective cities, and healthier and more productive citizens. Communities around the world are waking up to this simple environmental equation, greening their shared spaces to ‘clear the air’.

Above: India’s Delhi is one of the worst-performing cities globally when it comes to air quality. Air pollution in India accounts for roughly 130 deaths per 100,000, prompting the country to implement various measures to reduce this figure

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COUNTRY REVIEW

Above: View of Hohensalzburg Castle and Salzach river in Salzburg, Austria’s fourth-largest city. Salzburg, also known as ‘Old Town’ due to its baroque architecture, is widely considered Europe’s largest-remaining fortress and was listed as a UNESCO World Heritage Site in 1997

Austria

A

t the heart of the EU, Austria is one of the most visited countries in the world that combines old-world charm with modern comfort and safety. Austria is considered a highly stable country and boasts a standard of living superior to that of many others. Although it is one of the smaller states of Europe, it has a world-class capital, Vienna, which has a rich cultural and historic heritage that residents and travelers alike enjoy tremendously. Austria offers one of the highest-ranking quality of life standards globally. In 2017, international consultancy Mercer ranked Vienna as the world’s leading city to live in — an accolade the city has enjoyed for eight consecutive years. For those seeking a second home, the country is a strong contender; however, this holds equally true for those in need of only a temporary arrangement.

The first origins of Austrian culture can be found in the Hallstatt culture, which gained its wealth from the salt trade and had important connections to the Mediterranean culture during the Iron Age. The country traces its name to a document from Emperor Otto III from the year 996, where, for the first time, the name ‘Ostarrichi’ was mentioned. This evolved into ‘Österreich’, the German name for Austria. The birthplace of Marie Antoinette and Sigmund Freud, Austria is perhaps one of the most underrated countries globally. However, with its strategic positioning between east and west, north and south, the country is an economically attractive hub for multinationals that enables effortless access to EU markets. In addition, with its pristine mountain and lake scenery, its culinary delights, a solid health system, and world class teaching/

42 | The Global Citizenship Review

IMAGE: Shutterstock

Europe’s Hidden Treasure


IMAGE: Shutterstock

COUNTRY REVIEW

research facilities, more and more people are coming to comprehensive curriculum vitae, background business realize the hidden treasure that Austria is. information, and references. Children under the age of Politically, Austria is a parliamentary republic founded 18 years may be included in the same application as the on democratic principles and the separation of powers. main applicant. The highest state representative is the Federal President, Until 2006, all applicants were required to show basic whose term of office lasts six proficiency in the German lanyears. The two parliamentary guage; however, this is no longer Until 2006, all applicants required for the main applicant; chambers are the National Council (lower house) and the dependents must fulfill this were required to show basic only Federal Council (upper house) requirement. and these are the nation’s In the event that the federal proficiency in the German legislative bodies. The Federal government unanimously conlanguage; however, this is firms that awarding citizenship is Chancellor is the head of the federal government. in the particular interest of the no longer required Austria is a federation made up republic due to the applicant’s past of nine federal provinces. The or prospective extraordinary federal capital city, Vienna, is also one of the nine federal achievements, the general conditions for awarding citiprovinces in its own right. Each of the nine provinces is led zenship no longer apply (with the exception of the condiby a provincial government headed by a governor. tion that granting citizenship must not significantly impair According to the 2018 Henley Passport Index, ownthe international relationships or harm the interests of ership of an Austrian passport enables holders visa-free the Republic of Austria). access to 177 countries, ranking the Austrian passport Extraordinary achievements are classed as those that among the top five passports in the world. are far above average and cannot be attained by any other Under the country’s citizenship-by-investment person of the same level of education and training. These provisions, an applicant is required to make a substantial achievements must either have been performed in the past, contribution to the Austrian economy. This may take the or must be performed in the future. Services in business form of a joint venture or a direct investment in a business as well as those in social or humanitarian work can be that creates jobs or generates new export sales. In addition, rewarded, as can extraordinary achievements in art, applicants must submit a clean personal record, a culture, sport, and science.

2nd Quarter 2018 | 43


COUNTRY REVIEW

Austria One of the world’s wealthiest and most developed countries, Austria offers a breathtaking countryside and a unique cultural heritage.

Country Information

Languages

Currency

Economy

Population

German, Slovenian, Austro-Bavarian

Euro

Well-developed free market

8.75 million (CIA ‘The World Factbook’ 2017)

Austria is located at the heart of the European continent. It covers a total surface area of 83,871 km2 and is known for its Alpine peaks and spectacular scenery. It boasts a high standard of living and has a world-class capital, Vienna.

Vienna

Austria

Graz

EU

European Connection

Austria became a member of the EU in 1995 and Vienna boasts hosting one of the UN’s four major office sites worldwide. The country became a member of the Schengen Area in 1997 and was one of the first countries to adopt the Euro on 1 January 1999.

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Economy Oriented The Austrian services sector contributes some two thirds of the country’s GDP, with trade and industry roughly accounting for the remainder. Agricultural activity contributes about 1% the GDP.


COUNTRY REVIEW

Country Rankings

10

24

Quality of Nationality Index

4

Henley Passport Index

Henley & Partners – Kochenov Quality of Nationality Index 3rd Edition

2018 Henley Passport Index

Human Development Index

Travel Freedom Ranking

6

2016 Human Development Index

7

ND-GAIN Country Index 2016 Notre Dame Global Adaptation Index

11

Henley & Partners – Kochenov Quality of Nationality Index 3rd Edition

Settlement Freedom Ranking Henley & Partners – Kochenov Quality of Nationality Index 3rd Edition

Tax Benefits

Economy and Markets

• The Austrian tax treatment of foreign trusts and the absence of controlled foreign corporation rules offer interesting pre-immigration planning opportunities for wealthy families

Austria’s nominal GDP is EUR 369, 218 million, with the services sector accounting for 70.4% of this amount.

• Non-resident individuals are only required to pay tax on Austrian-source income

Trade and Industry 28.4%

Services 70.4%

• Austria does not have wealth or net-worth tax (except on Austrian real estate) and has abolished inheritance and gift tax • Companies are subject to a flat tax rate of 25% • For large corporations, Austria has introduced an attractive group taxation system that also provides for off setting of losses incurred by foreign subsidiaries

Agriculture

1.2%

(Source: Oesterreichische Nationalbank)

Travel Freedom An Austrian passport provides holders with visa-free access to 177 countries, including Europe’s Schengen Area, Canada, and Hong Kong. Vienna Airport provides access to a dense network of European destinations as well as to strategic locations in Africa, Asia, and North America.

Lifestyle and Leisure With beautiful natural attractions such as snow-capped mountains and a lush green countryside, a vibrant culture with first-class museums, music festivals, and impressive architecture, Austria is considered one of the most beautiful countries in the world.

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Samih Sawiris Global citizen and Egyptian construction tycoon Samih Sawiris spends time with the REVIEW REVIEW: You have been in business for several decades. Tell us about your early days and how you have managed to establish the solid reputation you enjoy today. Samih Sawiris (SS): I’m lucky to say that my father was a role model to me and showed me and my brothers the value of entrepreneurship when we were children already. By the time we needed to become independent, he gave me USD 25,000 and the name Orascom with an unblemished reputation to start my own businesses. That’s when I founded my first company called National Marine Boat Factory in 1980, right after finishing my studies at the Berlin Institute of Technology. The business grew from being a boat company to a beverage company, and eventually became Orascom Development Holding AG, a real estate and destination management company. My goal when doing business was always to be fair with everyone. I do not want to have all the profit to myself if others do a professional job and help a project of Orascom to fly. Growing together is healthier than trying to have all for myself.

REVIEW: What are some of the business tips your father, incredibly successful in his own right, shared with you? Do you implement any of these still? SS: Persistence, and being generous with partners and clients.

REVIEW: What did you learn from your least successful business endeavor? SS: I learned that certain businesses are better left to professionals only.

IMAGE: Supplied

REVIEW: Why do you think your country of birth, Egypt, is an attractive investment opportunity? SS: The proximity to Europe and less expensive labor, in combination with amazing weather conditions, make Egypt, to me, an attractive investment opportunity. All this makes production in Egypt extremely competitive. With 100 million inhabitants the local market is also interesting, not

forgetting that Egypt will continue to be the gateway to central Africa.

REVIEW: Apart from their financial impact, what do you believe is the value of high net worth individuals pursuing philanthropic initiatives? SS: Philanthropy is the only protection for the rich to justify why they should be allowed to remain rich.

REVIEW: What are the major trends in the development/ property industry currently, and how do you advise one should take advantage of these? SS: More and more people want to have ownership of property without the hassle of maintenance and lack of service. The more those needs are taken care of, the more attractive ownership is today. Gone are the days where you sell a house and leave the owner to worry alone about what the house needs.

REVIEW: What does the concept of being a global citizen mean to you personally or to your business? SS: To feel at home in many places and not just your home country.

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Above: An increasing tide of global social activism against corruption, sexual violence, and other social ills means individuals of influence are under greater scrutiny than ever, and allegations and/or evidence thereof, despite their veracity, may have a long-lasting impact on one’s reputation

Reputation Management: Executive Branding for Influential Citizens

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nly a minority of wealthy individuals are actually ready to take orchestrated action should their reputation be put at stake, let alone have a proactive plan in place to nurture and build a positive reputation for themselves. This makes for a worrying thought. Just think of the recent Paradise Papers scandal,

in which some 13.4 million confidential electronic documents were leaked. At 1.4 TB in size, this is second only to the Panama Papers in 2016 as the biggest data leak in history. In terms of reputational threats then, this should ring alarm bells for anyone of influence. The speed and

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Markus Kramer, Partner, Brand Affairs, Switzerland


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level the situation warrants the deployment of resources ranging from handling critical media enquiries to contracting legal services to ask for outright removal of damaging coverage. The digital dissemination of content bears the risk of propelling potentially defamatory stories at the speed of light, but the upside is that you can take active control of understanding what is being said at any time. A multitude of clever ‘listening tools’ exist to monitor your reputation. As a general rule of thumb, the positive content in relation to your brand should outweigh anything negative by a factor of at least 2:1. The nascent discipline of online reputation management caters for this, counterbalancing negative coverage with positive content if, when, and where needed. However, it is a far better strategy to actively manage a positive reputation on an ongoing basis in the first instance. A strong personal brand strengthens your position and helps protect your reputation in turbulent times. Creating a strong personal brand is not an act of magic. Applying the same underpinning, tried and tested principles that help successful companies to define, refine, position, and communicate their powerful brands works for individuals just as well. What builds and protects a strong personal brand are beliefs and clearly articulated points of view. Ideally, these complexity by which public opinion is shaped is need to be based on universal values or a position on a accelerating, and whereas you might well live, work, and social issue rather than outright partisanship. In other act with absolute integrity in all you do, public opinion words, reputation is more important than reputationism. may follow a different pattern, unfortunately. For the As an influential citizen you will need to go beyond having public at large, perception is reality unless proven an opinion and begin to carry a Weltanschauung so that otherwise. The point to recognize here is that when public audiences are able to see the world through your eyes. opinion puts a spotlight on you, How do you assess the world and time is never on your side. make sense of it? What is your When the reputation manageTrying to calm a storm personal philosophy? What do you ment light goes on (rightly or value and why? What is your wrongly), the biggest reputational single-handedly is a bad higher purpose in life? These are threat for high profile individuals big questions that should not be strategy, and trying to answered lightly; nor should your is an exponential decrease in or permanent loss of trust. Trying to run from the storm is answers be broadly communicated calm a storm single-handedly is a without a sound strategy and the potentially a worse one means to follow through in place. bad strategy, and trying to run from the storm is potentially a Some of the best practices in worse one. Passive reputation personal reputation management management offers several options to help safeguard or include personal brand journalism with niche targeting, protect your reputation when things get out of kilter. For the thoughtful brand as a digital publisher focusing on instance, a reputational risk evaluation matrix can help earning or strengthening trust rather than boosting you to determine quickly when to intervene and to what fame. In an executive’s value system, reputation needs

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to be prioritized over any potential short-term gain. The audience will be loyal to the individual if the individual is loyal to his/her brand over the long run. This implies that any type of communication (in particular within the digital realm, from a simple blog to the fast-paced content streams in social media) needs to be ‘on-brand’ — consistently and over time. Becoming an icon with a real philosophy rather than a digital media celebrity renders your person­a l brand credible and trustworthy. Two names to cite here for illustration are Sir Richard Branson and Elon Musk. Their personal brands are ‘out there’, authentic, and real. Being original and sincere has always been effective, but it is particularly successful in an era of fake news and constant media clutter. A personal brand is also distinctively human and quite forgiving when required.

The reasoning is that someone who invests in a longterm reputation through building a brand is far less likely to risk that reputation than someone who doesn’t have a reputation. One cannot ask for a replacement, or a fix, of a service from a person that doesn’t have a reputation because he/she doesn’t have anything to lose. Or, in the words of Rory Sutherland, Vice-chairman of OgilvyOne: “Reputation acts as a kind of cashless deposit in human dealings. As any mafioso or game theorist knows, you can only trust people who have something to lose.” It’s essential to acknowledge that the very value of reputation in the eyes of stakeholders lies in how it functions as a warranty to hold onto if anything goes wrong. The active management of your own reputation is that one reliable source of trust.

It takes many good de­eds to build a good reputation, and only one bad one to lose it Benjamin Franklin

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IMAGE: Kevork Djansezian/Getty Images

Above: Over the years, South African-born Canadian American businessman Elon Musk has built a credible brand largely based on his passion for and appreciation of the environment, science, and technology. Musk is the Founder of Tesla, an electric vehicles manufacturer, and SpaceX, an aerospace manufacturer and space transportation services company


IMAGE: Kevork Djansezian/Getty Images

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Defamation and Reparation Amber Melville-Brown, Head of Withers Media and Reputation, Withersworldwide, UK

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have lost my reputation,” laments Shakespeare’s Cassio in Othello. “I have lost the immortal part of myself, and what remains is bestial.” A downward tumble in reputation may not follow the trajectory of Cassio, but unfortunate incidents, unexpected events, and unintended utterances can all harm your reputation, potentially causing irreparable damage to personal relationships, professional networks, and strategic investments. What’s more, today’s press is tenacious, salacious, inquisitive, and intrusive; everyone with access to a phone can be a photographer and a publisher. It does not help that the world is as small a place as it is, such that global reputations cultivated over decades can be damaged worldwide in the blink of an eye. Or, at the click of a mouse. “I know it when I see it,” famously said American Supreme Court Judge Justice Potter Stewart in a 1960s case about pornography. But do we know defamation when we see it? • A defamatory allegation generally imputes wrongdoing — illegal, unethical, unprofessional, or immoral conduct. • It will be actionable if it causes, or is likely to cause, serious harm to the claimant. Where the claimant is a body trading for profit, that serious harm must have caused, or be likely to cause, serious financial loss. • The claimant must be identifiable if not by name, by way, for example, of description, title, or photograph. • There must be a publication to at least one third party. • There are defenses to a claim in defamation: truth, honest opinion, responsible publication, privilege, and, depending on the seriousness of the libel and the nature or identity of the publishers, a libel published only to a limited number of people may not make it past the summary disposal stage. Anyone on the wrong end of a defamatory barb, or aware that one is on its way, may instinctively prefer to keep his/

her head down. But do not batten down the hatches. Instead, seek advice immediately and prepare thoroughly with your advisors. Moreover, you can educate the reporter as to what he/she has got wrong. In the event that the whole story is a fabrication maliciously fed to the reporter, this can stop a story in its tracks. On the other hand, it is highly advisable to refrain from rushing rashly to engage in a social media storm. Giving the oxygen of publicity to a malicious malcontent will only fuel the fire and keep the damaging story burning longer, causing more lasting damage. But where publication, or a threat to publish, also amounts to a course of conduct in harassment, or misuse of private information and invasion of privacy, you may have cause to seek injunctive relief from the court to prevent (further) publication. That said, threatening the watchdog and bloodhound of society, as the press is known, with a trip to court without having taken advice, is unwise; you may make an enemy of a creature whose publication bite is as damaging as its threatened bite. Other avenues that you may consider exploring include relying on website Ts and Cs or press codes of conduct to remove erroneous information. Additionally, you may seek a right to reply, a correction, or an apology, where false and damaging information has already made its way into the public domain, or even enforce your ‘right to be forgotten’ in respect of historical, inaccurate information. And always, it is essential throughout any reputation crisis to be in command of your own communications with family, friends, and contacts, rather than allowing your good name to remain at the mercy of your attacker. As with any battle, understanding the rules of engagement is key. Knowing your foe, being adept with the legal tools in your armory, and being expertly advised on how, when, and with whom best to engage are vital if you are to win out with your reputation intact.

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Above and opposite page: The Principality of Liechtenstein, meaning ‘bright stone’, is one of the smallest countries in the world, with roughly 38,000 people occupying about 160 km2 of land. The country is accessible by train or bus from Switzerland

Life in Liechtenstein

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he Principality of Liechtenstein is charmingly seated on the slopes of the Rhine Valley and is well located in the middle of the Alps. Geographically, it is situated between Munich, Germany, on the northern side of the massif and Milan, Italy, on the southern side. In 2017, the Henley & Partners – Kochenov Quality of Nationality Index ranked the country 14th with respect to the general ranking, meaning the country offers an extremely high quality of life. Liechtenstein is well connected to Europe and the world. It is a member state of the European Free Trade Association, the Organization for Economic Co-operation and Development, and the World Trade Organisation. Despite its small size, the country’s GDP per workforce is one of the highest in the world, amounting to almost EUR 170,000, which is astounding. In addition, citizens of Liechtenstein currently boast a life expectancy of 82.7

years, among the top 10 globally, meaning there is plenty of time for self-fulfillment. Most certainly, Liechtenstein is the perfect base for developing your talents and business opportunities. For families, the country offers much comfort, as children can grow up in your choice of the many safe neighborhood options and can attend first-class boarding schools and universities before joining the country’s innovative and global workforce. All this is possible because Liechtenstein’s education system and medical services are excellent. Unflawed social security and assurances accompany you through your life — even at retirement age support is available through a pension scheme that is well funded and secure. The Principality is a remarkably peaceful and quiet place to make your home. A historical anecdote relays how during the German War between Austria and Prussia

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IMAGE: Shutterstock

Martin Gassner, Trust Officer, Allgemeines Treuunternehmen, Liechtenstein


in 1866, the Liechtenstein battalion placed at the Stilfser Joch Pass in northern Italy came home with one more soldier than when it left. This was the last deployment and the armed forces have been dissolved, meaning Liechtenstein’s citizens do not endure military service. Ever since this time, Liechtenstein has followed a policy of neutrality.

Intimate Values

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Due to its small size and its already high percentage of foreign inhabitants, Liechtenstein is fairly restrictive when it comes to issuing residence and citizenship permits. The cap for entry allowance is set at 56 persons per year. Half of these persons are drawn by lottery — in order to guarantee equality of success — and the other half is carefully selected by the government. Apart from the European Economic Area, 16 third country citizens are allowed entry each year as well, with eight selected by lottery and another eight selected on the basis of the needs of the national economy. With regard to citizenship, Liechtenstein applies birthright, the ius sanguinis. For offspring to acquire Liechtenstein citizenship, either the mother or the father must be a genuine Liechtensteiner. This can be bypassed by marriage or by residence in Liechtenstein for a period of 30 years. With such an arduous requirement, those interested in Liechtenstein citizenship are better off exploring the ordinary procedure, i.e. application with the government. On approval by parliament, the government will submit the application to the ruling prince, Prince Hans-Adam II, who has the casting vote. However, before they can apply at all, interested applicants must undergo the ‘popular vote’, which means the inhabitants of one of Liechtenstein’s 11 villages must agree to your being welcome after a period of 10 years of ordinary residence.

Family Office, Family Affairs Liechtenstein is a viable option to consider when establishing a family office. The Principality stands out with its superior infrastructure and public services, and is renowned for its political and economic stability. Apart from this, privacy, security, and personal freedom are protected by law. These are essential requisites for a family office wanting to endure for generations. Liechtenstein is a prime destination for achieving a high — and, more importantly, healthy — standard of living. Residents are given space and perspective to develop their talents and businesses as well as to diversify their lives and assets; all that is needed to ensure unclouded joy of living.

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The Wealth Report 2018 Snapshot

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f you’re the kind of person whose glass is always half full, then this year’s edition of The Wealth Report will give you plenty to cheer about. However, if your glass is generally half empty, you’ll spot some potential clouds on the horizon. So, what’s the good news? Let’s start by celebrating the fact that we survived a year that leading political scientist Ian Bremmer described in the 2017 report as potentially the most dangerous since the end of World War II. Another positive is that despite the warnings of Trump doommongers, the US economy has boomed over the last year. Even Brexit-embattled Britain is doing okay, regardless of its impending exit from the EU. This sense of economic well-being is echoed by both sets of results from The Wealth Report’s exclusive global wealth distribution data, supplied this year by analyst Wealth-X, along with findings from our own Attitudes Survey. According to the Wealth-X data, the number of individuals with net assets of over USD 50 million increased

in every region of the world during 2017, rising by 10% to 129,730. The ultra-wealthy now have a combined wealth of almost USD 26.5 trillion. The most interesting aspect of the data produced from Wealth X and The Attitudes Survey is the sharp recovery in the fortunes of several world regions that actually saw their USD 50 million+ populations fall in the five-year period prior to 2017. Take Latin America, for example: its wealth population declined by 22% during that period, but last year, it bounced back by 20% — an increase largely driven by wealth population hikes in both Brazil and Argentina. Russia/Commonwealth of Independent States (CIS) and Australasia also saw significant upturns over the course of the last year, specifically 26% and 9%, respectively. Judging by Wealth-X’s forecasts, the future is looking promising. Globally, the population of USD 50 million+ individuals is set to rise by 40% over the next five years, with growth strongest in Asia (+55%).

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Andrew Shirley, Head of Rural Research, Knight Frank; Editor, The Wealth Report, UK


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The results of the Attitudes Survey, which are based on responses from over 500 of the world’s leading private bankers and wealth advisors, whose clients are collectively worth over USD 3 billion, also provide cause for optimism. Seventy-two percent of respondents reported that their clients’ wealth had increased during 2017. However, when we asked respondents to predict whether their clients’ wealth would increase in 2018, the result was slightly more pessimistic: while 67% of respondents predicted a positive year in terms of wealth creation, respondents from Africa and Russia/CIS were the only ones who expected a higher proportion of their clients to enlarge their fortunes in 2018. This raises the question: is there anything specifically driving this shift in attitude? The reason could well be attributed to the sneaking feeling by some that things can’t keep getting better; stock markets can’t keep accumulating gains; bitcoin can’t keep defying gravity; the art market can’t continue to rack up higher and higher prices. This is succinctly put by the report’s keynote interviewee, the eminent historian Prof. Niall Ferguson, who argues that a sense of amnesia about the last financial crisis has been creeping into the minds of many investors. It is during times like these, Ferguson explains, that we should worry about the next recession. Ferguson’s words seem prescient. Since the report went to press, we’ve seen stock markets stumble around the world — not enough to cause widespread panic, but just enough to remind people that equities aren’t a one-way ride. And bitcoin? Well, those who came to the party late may well be licking their wounds after the crypto currency’s sudden hemorrhage. Of course, there are other things keeping the world’s wealth creators up at night. The Attitudes Survey reveals that a sizable number are worried about terrorism, cybercrime, and the rise of populism. These concerns could well be reflected in the desire of high net worth individuals (HNWIs) to keep their options open when it comes to where they base themselves around the world. Around a third of wealthy persons already have a second passport or dual nationality, with a further third considering such a move. Globally, a fifth of HNWIs are planning to emigrate permanently. The figure drops to just 6% in Australasia but hits a high of 45% in Russia/CIS. The reasons for this vary; education can be a key driver, as can the search for a healthier lifestyle. By some estimates, USD 1 trillion is currently on the move, and this flow of wealth and the wealthy isn’t lost on governments. The desire to track where this money is

moving to and from is epitomized by growing international cooperation, using measures such as the Common Reporting Standard (CRS). There are already early signs that the CRS is having an impact on the direction of travel. According to data provided by the Bank for International Settlements, overseas deposits in the US, which is not a CRS participant, have been rising. In such a complex fiscal environment, knowing where to put your money can be a conundrum. Over the past few years, equities have certainly been the asset of choice: over 50% of Attitudes Survey respondents said their clients’ allocations had increased during 2017, but their attraction may be waning slightly. Property underwent the secondlargest increase in allocations last year, and private individuals and family offices are playing an increasingly significant role in the market. If we look at the mega deals — those worth over USD 1 billion — that wrapped up in 2017, over 40% of these were driven by private money. For those looking to the tangible safety of bricks and mortar, this year’s edition of The Wealth Report highlights several sectors worth considering. The explosion of online retail is not yet ubiquitous — only 5% of sales in Spain are conducted via the web compared with 18% in the UK — so there are still considerable property investment opportunities to be found in certain countries. Farmland offers various risk profiles across the world: from Australian cattle ranches that are bigger than some European countries to hi-tech cropping units in Zambia. In terms of cities, the opportunities for wealth investment are diverse: from Manila in the Philippines, which is emerging as a regional hub, to Pittsburgh in the US, which has replaced its heart of steel with a new generation of silicon-based industries. Canny investors will also be keeping close tabs on China’s ambitious Belt and Road vision. This initiative aims to expand the country’s global influence by driving economic growth via a combined platform of investment and improved trade and transport links that covers a total of 69 countries, accounting for 40% of global GDP. Investments of passion could also offer a safe haven for those looking to diversify their portfolios. Renewed interest in art has seen the art sector jump to the top of the Knight Frank Luxury Investment Index, overtaking wine and classic cars. Or, if you’re a little more ambitious, like one of the interviewees in this year’s report — an Indian billionaire — you could always buy your own sports team. While results are not guaranteed, if your glass is always half full, then there’s no doubting that you’ll enjoy this year’s ride.

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Austrian Innovation: Inspiring Ideas

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nnovation today no longer takes place in isolation or in secret. Instead, innovative processes arise through collaboration and experimentation, as the boundaries between disciplines, industries, and institutions increasingly expand. Such innovative processes often lead a company beyond its previous confines: companies now naturally incorporate the know-how and ideas of customers, suppli­ ers, and partners in order to develop and optimize their own products and services. This process is called ‘open innovation’, and Austria is at the forefront of assisting companies looking to make the most of its many benefits. Austria was the first EU member state to publish a national Open Innovation Strategy in 2015. The aim of the strategy “is to open up, expand, and further develop the innovation system with the purpose of boosting its efficiency and output orientation, and improving the digital literacy of innovation actors”. This is because globalization and digitization have fundamentally changed our understanding of the world, and Austria’s strategy is to create an innovative system that seeks to forge new solutions suited to these developments. There are various forms of open innovation. The ‘insideout’ process refers to the sharing of technological or specialized knowledge with third parties. This is in contrast to the ‘outside-in model’, where external ideas and processes are brought into a firm for development. If both the insideout and the outside-in approaches are combined, the result is called ‘coupled open innovation’. This simply means the joint development of ideas and solutions among several parties, disciplines, or sectors. In practice, there are numerous challenges related to open innovation. The Republic of Austria and individual federal provinces are proud to support companies in mastering these challenges. In addition to funding programs and open innovation projects, a number of other programs exist that aim to promote cooperation between small and medium-sized

companies in order to improve their innovative capabilities and innovation output. We know that the sharing of knowledge and innovation processes is essential for all businesses to succeed in today’s world, but this can be especially true for SMEs. That is why Austria has designed several programs that will enable companies to master the increasingly complex challenges that characterize our global, digitalized world. A few of these programs are: • The COMET Program: The COMET program is managed by the Austrian Research Promotion Agency FFG and assists companies in researching forward-looking topics, enabling businesses to design innovative new products, processes, and services. Close to 50 COMET centers and networks have been established across the country since 1998. These centers are sites for the development of worldrenowned Austrian research. • The Christian Doppler Research Association (CDG): The CDG has played an important and successful part in Austria’s research landscape for many years by promoting the cooperation of companies and research facilities. The CDG’s own specially established research units, called Christian Doppler Laboratories, are available to companies for use for pre-defined periods of time, during which they can pursue application-oriented basic research. • The Ludwig Boltzmann Society (LBG): The LBG was founded in 1961 and is made up of a network of specialized research institutes, called Ludwig Boltzmann Institutes (LBIs). Roughly 40% of the funding for these is supplied by external partners. The LBG runs two pioneering institutions called the Open Innovation in Science Research and Competence Center and the Lab for Open Innovation in Science.

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René Siegl, Managing Director, Austria Business Agency


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Healthcare Philanthropy in North America: A Diagnosis IMAGE: Shutterstock

Jory Pritchard-Kerr, Chair of the Board of Directors, Association for Healthcare Philanthropy, US

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evelopment departments and foundations provide important investment streams to hospitals in North America. The US’ unique situation in having a wholly privatized healthcare system means that much of the health system is still

community-driven, and supportive funds often derive from philanthropy rather than taxes. Canada, while operating under a government-led system, still relies on community investments to fund what the government alone cannot.

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FY2016

FY2015

FY2014

FY2013

FY2012

FY2011

FY2010

FY2009

FY2008

FY2007

FY2006

FY2005

FY2004

Median ROI Value for All Institutions It is rare to find any line item in a hospital’s budget that produces a return on investment (ROI) of four, but that $ is exactly what hospital foundations and fundraising 4.29 $ 4.22 $4.17 organizations provide. Throughout North America, $ $ 3.51 $ $ 4.05 4.06 development professionals manage donations diligently 3.24 $ $ 3.58 $ 3.55 3.49 to improve their healthcare institution’s ability to serve $ $ 3.19 $3.05 3.22 their communities. To do so, they seek to create sustainable communities by building lasting connections with donors. On occasion, viral campaigns — like the 2014 ALS (amyotrophic lateral sclerosis) awareness campaign on social media, better known as the ice-bucket challenge, and crowd­ Figure 1: Approximate ROI, FY2004–FY2016, US funding on platforms such as GoFundMe — gain unexpected visibility, but viral fundraising is mostly a blip on the radar. Donor relations take time, effort, and consideration. during the 2016 fiscal year, according to the 2017 If a fundraising campaign is lucky enough to ‘go viral’, Association for Healthcare Philanthropy Report on the foundation should act quickly to capture its momenGiving. Total funds raised by healthcare institutions tum and continue to build donor relations. In Canada, increased by 5% in the US in 2016 to USD 10.1 billion. for instance, SickKids VS campaign launched in 2016 Funds increased for the first time in Canada since 2013 and tapped into an existing community with an emotionby 10% to USD 1.5 billion.1 al video series. Today, SickKids The ROI for health fundraising continues to build its brand using organizations is generally high. the themes developed for the camPhilanthropy is the art of The ROI for institutions in 2016 paign, attracting celebrity endorsein the US was USD 4.1 (see Figure matching a donor’s needs 1), and for institutions in Canada ments and national press coverage. Its existing donor base not only the median ROI was USD 4.07 to those of a hospital supported its campaign but even (see Figure 2). Although ROI rates defended the organization when a have fluctuated over the past popular video from the series, ‘SickKids VS: Undeniable’, decade, dropping to only a threefold return after the gained controversial coverage. Great Recession, it continues to demonstrate the high Ultimately, the major principals of healthcare productivity of healthcare fundraising as a hospital philanthropy are casting a wide net, engaging with all revenue stream and a high-impact investment. patients, and ensuring there is a place for them to express Challenges Facing Healthcare Development their gratitude. Fundraisers recognize that there is a strategy to giving, and once they have found potential Costs in healthcare are increasing and reimbursements donors, there is never a one-size-fits-all solution. from private insurance and public programs are Philanthropy is the art of matching a donor’s needs to decreasing, all at the same time that donated funds are those of a hospital. becoming a standard line item in hospitals’ operating budgets. Hospital CEOs now expect that foundations The Current Landscape of Healthcare will produce a certain revenue stream every year, and Fundraising development officers feel the pressure of increased Whether through mega-investments — such as major expectations with falling internal budgets. gifts donated to hospital systems — or through targeted Lack of resources is one of the factors driving donations — such as those to community hospitals — hospitals to systemization. Many stand-alone hospitals healthcare donors are a vital component of the healthcare are, and have been for years, merging into a collection system. Donations to non-profit hospitals and healthcare of hospitals under an umbrella name that allows them systems in the US and Canada totaled USD 1.68 billion to allocate resources efficiently in a large community.


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Median ROI Value for All Institutions 5.89

$

FY2016

FY2010

FY2009

FY2008

FY2007

FY2006

FY2005

FY2004 IMAGE: Michael Rozman/Warner Bros.

4.07

$

3.83

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2.91

$

4.20

$

$

3.36

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FY2013

3.56

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4.19

$

4.32

$

4.39

$

3.79

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4.91

$

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4.68

$

Figure 2: Approximate ROI, FY2004–FY2016, Canada

Each hospital often has its own foundation, and a merger means that the foundations must either find a way to work together as separate entities or merge as well. The latter option seems to make the most sense on paper — if a hospital system is a better investment of resources, then it follows a foundation ‘system’ would be, too —

but development organizations have found varying solutions to the challenge. There are also significant ethical issues specific to healthcare philanthropy that one does not find in other fundraising sectors. Grateful patient fundraising (GPFR) is the most common example, with opinions ranging from “there is never an ethical issue for fundraisers” to “contacting patients is always morally wrong”. For clinicians and institutions and the populations they serve, GPFR can help support clinical care, research, community-based programs, educational initiatives, and capital projects. Philanthropy is also a way for patients to contribute to causes that they find meaningful and that impact the health and well-being of future patients. Clearly, however, there are points at which conflicts of interest, privacy concerns, and other issues may arise, which means development officers must approach physician and patient relationships with care. Endnote 1 The report did not examine other North American countries

Above: In 2014, the ice-bucket challenge took the internet and social media by storm, with all manner of celebrities, athletes, and general public participating in the campaign to raise awareness of ALS

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The Enduring Global Appeal of Real Estate in London

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he safe haven appeal of London’s high-value residential property market has long been underpinned by strong national and international demand, with overseas nationals drawn to a city that is at the forefront of business, trends, and culture. However, former Chancellor George Osborne’s decision to reform Stamp Duty Land Tax in December 2014 — making the property acquisition tax more expensive for anyone acquiring property worth more than around GBP 937,000 — made home values at the higher end of the market particularly vulnerable. This was followed in April 2016 by the government’s decision to introduce further reforms with a 3% stamp duty surcharge on second homes. The increases to stamp duty and heightened political uncertainty, as well as greater exposure to capital gains tax and inheritance tax (IHT) for overseas buyers, meant that

for much of 2017, consumer confidence in the high-value London property market was fragile. However, after a period of price corrections, particularly in central locations where values fell by as much as 10%–15% from their peak three years ago, the final quarter of 2017 saw strong signs of improvement, according to international property specialist and one of London’s largest estate agents, Chestertons. Guy Gittins, Head of Sales at Chestertons, comments: “In the last quarter of 2017, we recorded our highest transaction levels of the previous two years, and December in particular was a record month as sales over GBP 5 million accelerated once again, giving us an optimistic view of 2018. We believe this is because the market had corrected itself to a level that absorbed pretty much all of the increase in stamp duty and, therefore, started to show relative value again.”

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Guy Gittins, Head of Residential Sales, Chestertons, UK Craig Leverett, Mortgage Consultant, Springtide Capital, UK Nick Stone, Property Lawyer and Partner, Child & Child, UK


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Much of the demand for high-value luxury homes in London living/working overseas for a mortgage to purchase is coming from prospective overseas buyers, with many property in the UK. The market is certainly growing and international purchasers attracted to the weakened sterling is opening up.” against the dollar and the euro continuing to view London For many investors, it is not necessarily that financing as a safe bet. In addition to those from the UAE, Jordan, options are required to make a purchase, but with an Saudi Arabia, and Egypt, the biggest increase has been in increasingly competitive lending market and interest rates potential buyers from Turkey and China, reports Chestertons’ still low, buyers want to raise capital on their property. mortgage partner, Springtide Capital. “Reputable mortgage brokers can advise on the best lending “I have been told prices at the top end of the Turkish products available based on investors’ requirements, but property market are falling amid the depreciating Turkish depending on the structure of the acquisition, there can lira and deteriorating political and economic conditions, also be varying tax benefits, so it is also worth discussing which means many affluent Turkish nationals are options with a specialist tax advisor,” adds Leverett. rethinking their current property investments and looking The foundation to a successful UK property portfolio to shift their money abroad. The Chinese enquiries seem is ensuring that a team of trusted professional advisors to be coming from experienced property landlords in is in place. Working closely with an agent that has interChina and Hong Kong who are national links and experience in looking to diversify into London,” helping overseas buyers is importMany major banks and ant, but selecting the right mortgage says Mortgage Consultant Craig Leverett of Springtide Capital. broker and property lawyer is also lending institutions have For any purchaser not familiar paramount to the purchase process with the UK property market and/ relaxed the availability running efficiently. or based overseas, it is a good idea Nick Stone, Property Lawyer and of mortgages to foreign Partner at Child & Child, says: “It to instruct an agent to operate as a buying agent or property sourcer, is a common assumption that all nationals and expats a service offered by a number of property lawyers provide the same high-end agents. This service sees level of service, which is not the agents representing buyers first establish their require­ case. Ideally the property lawyer should work for a ments, and then source the best options available on the company that offers an all-round legal service to clients, London market, thus helping to reduce the clients’ anxiety catering for their every need — that way, buyers from about finding the right investment. overseas can also work with a tax lawyer within the same Gittins offers some valuable insight: “Obviously, firm to implement the most tax efficient structure for the overseas buyers looking to invest in high-value UK domes­ property portfolio, especially considering recent changes tic property, whether for investment or owner-occupation, to UK inheritance tax.” need to do their homework to fully understand the buying As of 6 April 2017, UK residential property owned process in the UK, funding options, and UK tax aspects, through non-UK structures has been within the charge such as inheritance tax, stamp duty, and capital gain.” to UK IHT, regardless of the owner’s residence or domicile A few years ago, overseas residents and foreign status. There can be between one and three IHT charges nationals were catered for by just a couple of specialist with at least 40% and up to 120% tax exposure. “This lenders and private banks, with many private banks change is catching both property investors and advisors dealing only with those looking to invest a significant out, which is why it is more important than ever for amount of money. Now, in marked contrast, many major investors to fully understand tax implications,” says Stone. banks and lending institutions have relaxed the availability Despite tax hikes and post-Brexit uncertainty, London of mortgages to foreign nationals and expats, Leverett remains one of the world’s largest cities and a global explains. “Three years ago, I arranged very few overseas financial center. Conditions in the high-value residential loans. In 2017, I would say as many as half of loans market are ideal for overseas buyers who seek advice on arranged have been for foreign clients, many of them where and what to invest in, the most affordable loans, still residing overseas. Now, more and more lenders are and how to properly structure their purchase to reduce considering non-UK residents and UK residents who are tax obligations.

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FEATURES

Swiss Living and Healthcare: Leading the Pack

S

witzerland is a small country, with a surface of just 41,000 km2 and 8.4 million inhabitants. Despite its limited size, it has four official languages and three governmental levels — each one with lots of autonomy, plus direct democracy, giving the population a great span of influence. This means a lot of variety but also complexity, with various actors involved in decision-making. To be successful under these circumstances, compromises and smart systems are required, and nowhere is this seen more clearly than in the country’s healthcare system, one of the most efficient in the world. The Swiss healthcare system is based on a compromise between state control and the free market. Health insurers and medical service providers are in regulated competition with one another. The goal is an optimal balance between as much entrepreneurial freedom as possible, and only as

much governmental control as necessary. Because of this, Swiss people have the good fortune of being able to trust in good and gapless access to high quality medical services at any time. The responsibilities for providing this essential service, to a standard of high quality, are regulated in various ways. For example, the federal government is centrally responsible in the fields of insurance, drug approval, and public health. The responsibility for the public health service, however, is decentralized, lying in the hands of the individual cantons, of which Switzerland has 26. Each of these cantons places service orders with hospitals and clinics, issues authorizations for doctors and chemists, and controls them regularly. The financing of the health service works in accordance with the principle of solidarity: a part is financed by incomecontingent tax money. In addition, there is an insurance

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Dr. Thomas Heiniger, Health Minister, Canton of Zurich, Switzerland


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obligation in place for every person with Swiss residence. quality of and ease of access to its healthcare service.1 In These individuals can choose between various health insur­ addition, the Swiss population has one of the world’s highest ers and insurance models. Low-income inhabitants receive life expectancies (women, 84.9 years, and men, 80.7 years), state support in the form of a premium reduction. Health and among the lowest infant mortality rates, at 4/1,000 insurers are obliged to accept all applicants, and they are births. In terms of healthy life years, the country fares well, not allowed to select or disadvantage people based on with women enjoying 67.6 years and men enjoying 68.6 gender, age, or the state of their health. Nevertheless, to years. Other valuable indicators are the country’s good prevent individual insurances from being overly burdened outcomes of treatments and low numbers of medically in light of this regulation, an internal risk-balancing system preventable deaths, as well as the population’s own is in place. assessment of the health service. When asked, 81% of Swiss Insured individuals in Switzerland have access to an exresidents give the health service a positive rating, while traordinarily vast range of services. They can freely choose 82.3% consider that their own state of health is very good. hospitals and doctors and are entitled to prompt, adequate, People of foreign nationality can also access the Swiss and high-quality diagnosis and treatment. For additional health service. For permanent residents, insurance obligation services, voluntary supplemental insurance can be obtained; applies, and they, therefore, have full access to the healthhowever, due to the wide range of services that are covered service system. An emergency service is ensured for by basic insurance, additional ineverybody, without exception, surances cover mainly comfort and regardless of their nationality and In the out-patient area, there whether or not they have in­ hotel services. In Switzerland, in-patient care is a diversified system with surance. If an individual without is provided by 283 hospitals, of residence in Switzerland decides which 181 are specialized clinics. a high doctor density of 219 to have elective surgeries there — In the out-patient area, there is a be it at their own charge or that of per 10,000 inhabitants diversified system with a high their insurance — they have access doctor density of 219 per 10,000 to them. There are also providers inhabitants. Apart from facilitating the sale of medication, who specialize in treating patients from abroad. the country’s 1,800 pharmacies also offer consulting, healthLifestyle and environment play an important role in check, and vaccination services. maintaining the good health of the Swiss population, and During times of emergency, Switzerland’s dense service the Swiss government has made it easy to live a healthy network proves to be valuable. In more than 95% of all living lifestyle, keenly encouraging residents to be active, which and working areas in the Canton of Zurich, a hospital is not difficult to do in light of the country’s outdoor beauty. equipped with an emergency unit can be reached within 15 It is no surprise that hiking is almost a national sport in the minutes. Across the entire canton, one never needs to travel country. In addition, many Swiss cities achieve very good for more than half an hour. scores in terms of air quality and their clean and high-grade In addition to its solid primary care provision, Switzerland drinking water. also provides state-of-the-art medicine of the highest Nevertheless, even the best framework will have no standard. Given that the country has a low level of raw effect if it is not used correctly, and achieving good health materials, education is of great importance — a major largely depends on the individual’s initiative and selfadvantage for medical research and development. The close responsibility, which cannot be forced. The Swiss cooperation between universities and university hospitals government, therefore, does not rely on paternalism but across cantons allows the country to rapidly put innovations rather on the concepts of support and freedom, which have, and new research into practice. Equally, new findings from to date, proved successful. practical experience in hospitals provides valuable insights that can be incorporated into the research process. Endnote 1 M Barber et al. ‘Healthcare Access and Quality Index Based on These factors are the basis for the success of the Swiss Mortality from Causes Amenable to Personal Health Care in health service, and various indicators are available as 195 Countries and Territories, 1990–2015: A Novel Analysis testament to this. For example, in 2015, The Lancet scored from the Global Burden of Disease Study 2015’ (2015) The Switzerland the third highest globally with respect to the Lancet, Volume 390, Issue 10091, 231–266

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FEATURES

France’s Property Wealth Tax for Non-French Residents

R

ecent legislation in France has brought about significant changes to taxation for non-French tax residents who own or are looking to buy French residential property. On 30 December 2017, the French Parliament approved the 2018 French Finance Act. Among other measures, the Act abolished the former wealth tax and introduced a new wealth tax on real estate (impôt sur la fortune immobilière). The 2018 French Finance Act carries considerable implications for non-French tax residents, as it changes territorial tax limits when French real estate is owned through a company, and restricts deductible debt. Under these new rules, existing property ownerships may need to be reviewed.

Scope The tax affects only residential properties, i.e. those properties that are not used for business activity.

Under Article 965 II 2° of the French tax code (FTC), tax applies to French residential properties owned both directly and indirectly through a French or foreign company or entity, regardless of the number and location of companies or entities owned. When a French residential property is owned by a company, shares are only taxable to the extent that their value is attributable to real estate assets or rights held directly or indirectly. The legislation has changed the territorial limits of tax and no longer refers to the concept of a ‘French real estate company’. Under the previous wealth tax legislation, shares of nonquoted foreign companies mainly owning French real estate were regarded as France-based and taxable assets. Under the new legislation, it is now enough to own a French residential property indirectly in order for it to be eligible for tax. The territorial scope of the real estate wealth tax is, however, subject to the provision of any relevant Double

64 | The Global Citizenship Review

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Frederic Mege, Director, Moores Rowland, Monaco


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Tax Treaty (DTT), which may state otherwise. This change in the definition of territorial limits could pave the way for unexpected tax benefits to non-French tax residents owning French real estate indirectly, depending on their state of residence and the provisions of each relevant DTT. The issue remains to be clarified.

Valuation of Company Shares When a French residential property is owned through a company, taxes apply to shares of the company and not the property itself. The value of the shares needs to be determined. Under the new legislation, substantial changes have been made to the valuation criteria. The principle remains that the value of the shares is equal to the market value of the residential property, less any qualifying debts. This gives the net value upon which tax is applied. Article 973 II of the FTC provides a list of debts that cannot, in principle, be taken into account when assessing the net value of a company’s shares. These debts are: • Loans granted for the acquisition of real estate from the taxpayer, or a member of his/her tax household, when the company purchasing the property is controlled by the same person or a member of his/her tax household. • Loans from the taxpayer, or a member of his/her tax household, to the company purchasing the property. This restriction appears to include shareholder loans, which were formerly excluded. • Loans from a company or entity directly or indirectly controlled by the taxpayer, or with immediate family members. As these three restrictions refer to taxpayers liable to the real estate wealth tax, they should apply only to debts arising since 1 January 2018. The restrictions may be lifted if the taxpayer can prove that the loan has not been granted mainly for tax reasons (objectif principalement fiscal). This subjective concept will likely raise issues in future. Article 973 II of the FTC adds another restriction on loans from a taxpayer’s family member (outside the household), unless the loan has been granted under normal conditions. As these various restrictions could be waived under specific circumstances, this may create tax planning opportunities when structuring debts.

Valuation of Company Shares The new legislation defines deductible debt. In this context,

debt refers to loans taken out directly by the individual taxpayer, rather than granted to a company. Article 974 I of the FTC includes a general condition for deducting debt. In order to be deductible, a debt must be linked to a taxable asset, exist on 1 January of the tax year, and be the personal liability of the taxpayer. Such debt must also be substantiated. The legislation brings in a restriction on interest-only loans. These are no longer fully deductible, with a formula now in place to determine deductible annuities. There is a similar restriction on loans that do not provide capital reimbursement over a particular time frame. Both of these restrictions apply to loans already in place on 1 January 2018. There are further restrictions on family loans and loans taken from controlled companies, unless those loans have been granted under normal commercial conditions. The Act also limits deductions when the value of the taxable asset exceeds EUR 5,000,000 and the amount of the loan exceeds 60% of the taxable value. The part of the loan exceeding this limit is only deductible by up to 50%. The limit does not apply if the taxpayer can prove that the loan has not been created mainly for tax purposes.

Tax Rates and Process The wealth tax on real estate is payable if the net value of the taxable asset exceeds a EUR 1,300,000 threshold. If so, progressive tax rates apply: Net taxable value

Rate

Up to EUR 800,000

NIL

From EUR 800,001 to EUR 1,300,000

0.50%

From EUR 1,300,001 to EUR 2,570,000

0.70%

From EUR 2,570,001 to EUR 5,000,000

1.00%

From EUR 5,000,001 to EUR 10,000,000

1.25%

Above EUR 10,000,000

1.50%

The taxable asset must be assessed at its market value on 1 January of the relevant tax year, in other words from 1 January 2018. The valuation of the taxable asset is the taxpayer’s responsibility, though this is subject to review by the French tax authorities if they do not deem the value disclosed to be accurate. Later this year, the French tax authorities will issue the relevant forms and give the deadline to submit the forms and pay the tax. Non-French tax residents already owning or looking to purchase residential property in France ought to be ready in time.

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FEATURES

The Quality of Nationality Index: Nationalities of the World in 2017

I

n today’s globalized world, the legal status of millions of nationals extends their opportunities and desires far beyond their countries of origin: for these privileged individuals, the confines of the state are simply not the limit of their ambitions and expectations. Global citizenship and migration regulation is moving fast to incorporate this growing trend. The trio of world leaders in this regard are France, the Netherlands, and Finland. These are the most globally integrated citizenships in the world, turning the national borders of roughly one quarter of the world’s states into myths for their holders and, in turn, liberating their citizens from the imaginary geographical limitations that require them to forget about opportunities beyond the borders of ‘their’ state. Once again, the recently launched 3rd edition of the Henley & Partners – Kochenov Quality of Nationality Index (QNI) offers the global community a credible evaluation of the world’s nationalities. The Index is the only one of its kind that objectively measures and ranks all the world’s nationalities according to the value they provide to those

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who hold them. Nationalities are ranked on a 0%–100% scale and divided into ‘quality tiers’, ranging from Extremely High Quality to Low Quality. Crucially, the QNI is not a perception index. It uses a wide variety of quantifiable data — including a careful combination of industry-leading metrics, including the Global Peace Index, the Human Development Index, and the Henley Passport Index — to determine the opportunities and limitations that our nationalities impose on us. The reality that the QNI describes is, in many respects, regrettable. Nationalities such as France, the Netherlands, and Finland remain the exception. In the majority of circumstances, our nationality plays an important role in establishing a highly irrational ceiling for our opportunities and aspirations. This conundrum is in many respects the core aspect of being a national of a particular place, which is a random consequence of birth that boasts no correlation with a person’s achievements, ideas, feelings, and desires — ‘a birthright lottery’, to use Ayelet Shachar’s memorable phrase. The creators of the Index, Prof. Dr. Dimitry


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Newcomers to the QNI Internal Factors

External Factors

This edition of the QNI features 14 newcomers. In earlier editions of the QNI, the lack of available data prevented a sufficiently reliable valuation of these nationalities. In this edition, however, we have used new data and estimations in order to include these nationalities in the ranking. Seven of the newcomers — Palau, Marshall Islands, Federated States of Micronesia, Samoa, Tonga, Tuvalu, and Vanuatu — fall within the High Quality tier. Five of the newcomers — Kiribati, Solomon Islands, Fiji, Nauru; and North Korea — lie in the Medium Quality tier. Two nationalities — South Sudan and Somalia — enter the General Ranking in the Low Quality tier.

Key Findings in 2017 Above: The QNI measures both the internal value of nationality, which refers to the quality of life and opportunities for personal growth, and the external value of nationality, which identifies the diversity and quality of opportunities accessible outside our country of origin

Kochenov and Dr. Christian H. Kälin, do not endorse this phenomenon but rather observe it as part of the day-to-day reality that the Index aims to document.

On the Move Perhaps one of the most noteworthy moves in this latest edition of the QNI is the shift in France’s quality of nationality from second to first place overall. France takes over the reins from Germany, which was the global leader for the past seven years. The French nationality earned a score of 81.7% out of a possible 100%, while Germany scored 81.6%. The difference between France’s and Germany’s results is fractional; France’s comparative advantage lies in its greater Settlement Freedom, attributable mainly to the country’s former colonial empire. Following closely behind France and Germany on the QNI are Iceland and Denmark in 3rd place and 4th place, respectively, with scores of 81.5% and 80.9%. In 13th place, the UK narrowly missed the top 10 but made it into the Extremely High Quality tier, with a score of 78.2%. Last year, the UK scored 79.2%. The US increased its position by two ranks this year, claiming the 27th spot on the QNI with a score of 69.4%, up from 68.8%. The country’s relatively poor standing on the Index is mainly due to its low Settlement Freedom compared to EU member states.

• All 209 nationalities saw a change in value in this year’s edition of the QNI: 81 lost value, 12 maintained their value, and 103 gained value. • By way of comparison, only 45 nationalities lost value in last year’s edition, and 140 nationalities gained value. In other words, while the overall global trend remains upward, the number of nationalities gaining value has decreased year-on-year. • The French nationality stands at the top of the QNI General Ranking, with a score of 81.7%, while the Somalian nationality lies at the bottom, at 13.4%. • 26 nationalities fall in the Extremely High Quality tier (75.0% and above); 23 nationalities fall in the Very High Quality tier (between 50.0% and 74.9%); 50 nationalities fall in the High Quality tier (between 35.0% and 49.9%); 96 nationalities fall in the Medium Quality tier (between 20.0% and 34.9%); and 14 nationalities fall in the Low Quality tier (below 19.9%). • Malta and Latvia moved down from Extremely High Quality to Very High Quality; Andorra moved up from High Quality to Very High Quality; Ukraine and Georgia moved up from Medium Quality to High Quality; Qatar moved down from High Quality to Medium Quality; and Djibouti moved up from Low Quality to Medium Quality.

Rise and Fall The title of ‘top riser’ goes to the Georgian nationality for its spectacular 20-position ascent, from 104th position on last year’s General Ranking to 84th position this year. Georgia’s improved ranking was mainly caused by a

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FEATURES

Above: France’s Economic Strength ranking is low despite its strong performance in other indicators. Georgia fares well in terms of Human Development while Iraq ranks moderately in this category

significant increase in visa-free or visa-on-arrival travel destinations, linked to its 2017 visa-waiver with the Schengen Area. The Ukrainian nationality experienced a similar rise, from 99th position in 2016 to 80 th position in 2017; Ukrainian citizens also acquired visa-free access to the Schengen Area in 2017. As a result, the Ukrainian nationality recovers towards the positions it occupied in the 2013 and 2014 QNI General Rankings (75th place in 2013, and 79th place in 2014), although the ongoing armed conflict in Ukraine continues to compromise the nationality’s Peace and Stability score. In 2016, the Emirati nationality made a significant leap forward when its holders received visa-free travel access to the Schengen Area. The nationality of the UAE continued this trend in 2017 with an additional 10 visa-free or visaon-arrival travel destinations, now boasting 130 such destinations in total and overtaking the Israeli nationality as the best nationality in the region. As a result, it pushes further into the world’s top 50, moving from 49th place in 2016 to 46th place in 2017. The biggest faller in this year’s Index is the Qatari nationality, which suffered substantially from the country’s diplomatic conflict with Saudi Arabia and its allies. The Gulf states de facto suspended the application of the Gulf Cooperation Council legal framework to Qatar last year, which reduced the value of the Qatari nationality from 37.7% (70th place) to 34.1% (87th place). The Iraqi nationality dropped 15 places, from 150th position (18.6%) to 165th position (15.1%). With Peace and Stability remaining equally poor last year, a large number of countries introduced travel restrictions for Iraqis, which caused the nationality’s Diversity of Travel Freedom to drop from 27 to only nine visa-free or visaon-arrival travel destinations. Over the past five years of measurement, the value of the Colombian nationality has improved spectacularly, jumping from 111th place (26.1%) to 61st place (40.7%). While Human Development increased slightly, and Peace and Stability decreased somewhat, Colombian nationals have experienced a major improvement in Travel Freedom. In 2013, they had visa-free or visa-on-arrival travel access to 59 destinations, compared to 112 destinations in 2017, including the countries in the Schengen Area (as of 3 December 2015). The success story of the Colombian nationality over all the years of QNI measurement turns Colombia into the poster child of how to ensure constant improvement in the quality of nationality.

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FEATURES

For all its sophistication and scientific rigor, the QNI is simple in its intention: bringing into sharp focus the state of our world and empowering us, global citizens of today,

Nationality

with invaluable insights as we make important decisions about where to establish our businesses and where to live our lives — defining our future.

Value 2017

Change in Value 2016–2017

Change in Value 2013–2017

1

France

81.7

–0.8

+0.4

2

Germany

81.6

–1.2

–1.5

3

Iceland

81.5

+0.2

+0.6

4

Denmark

80.9

–1.5

–0.8

5

Netherlands

80.8

+1.1

+0.5

23

Malta

74.9

–0.1

–1.1

23

Latvia

74.9

–0.5

+0.6

24

Cyprus

73.3

–0.3

+0.5

25

Romania

73.1

–0.3

+11.9

26

Bulgaria

72.6

–0.4

+11.2

43

Malaysia

49.0

+0.5

+3.3

44

Uruguay

48.6

–0.7

+2.4

45

Brunei Darussalam

47.6

+0.3

+0.5

46

United Arab Emirates

45.8

+1.3

+9.5

47

Hong Kong, China (SAR)

45.5

–1.0

+1.1

86

Kiribati

34.3

n/a

n/a

87

Qatar

34.1

–3.6

–3.5

88

Bolivia (Plurinational State of)

34.0

–0.9

+2.2

89

Solomon Islands

33.9

n/a

n/a

89

Saudi Arabia

33.9

–0.6

+0.3

156 Chad

18.9

–0.1

+2.7

157 Sudan (Republic of the)

18.2

+1.2

+2.3

158 Ethiopia

18.0

–0.2

+1.4

159 Pakistan

17.9

+0.5

+0.6

160 Burundi

17.5

–0.5

+1.5

Extremely High Quality

Very High Quality

High Quality

Medium Quality

Low Quality

Above: In 2017, France is the leading nationality, with a score of 81.7%, and Somalia is the worst performing nationality, with a score of 13.4%. The top five countries per category are tabled above

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GLOBAL LIFE

Above: Mathis Wackernagel is a passionate advocate for the sustainable use of natural resources. As the CEO of the Global Footprint Network, Mathis oversees the Ecological Footprint, a unique tool that compares overall human demand on nature against what Earth can renew

Global Citizen

Mathis Wackernagel

A

t an early age, Swiss-born Mathis Wackernagel was startled by the importance of farmers to city dwellers like those in his home town of Basel, Switzerland. He noted that farmers provided urbanites with a steady supply of milk, cheese, and fruit and nuts,

70 | The Global Citizenship Review

but would be left with very little economic reward. Poignantly, he also noted that the land that provided these essentials was diminishing at an alarming rate, sparking an interest in the ecological dynamic between humans and nature’s resources.

IMAGE: World Resources Forum

“The urban elites live in an illusion bubble that we can always get more from somewhere else. But we are running out somewhere else�


IMAGE: World Resources Forum

GLOBAL LIFE

At that time, Mathis was curious about nature’s provision Every year Global Footprint Network calculates the for humankind and, in turn, people’s dependence on it. He Ecological Footprints of more than 200 countries and shares: “Being exposed to the first-ever oil crisis in the early regions, using the latest available data. The results are 1970s as an 11-year-old child marked me … [I thought] in published on the organization’s open data platform, making it easy for risk analysts, policy-makers, investors, and civil my lifetime, we actually might not be able to depend any society leaders to be informed about all countries’ resource longer on fossil fuel.” He goes on to relate his memories of situations. According to the organization’s latest accounts, Switzerland’s four car-free Sundays in 1974, which were humanity’s total demand now exceeds what the planet can part of the government’s bid to safeguard the country’s oil renew by over 70%, meaning that after 214 days, i.e. by provision amid global price hikes and insecurity. For him, early August, humanity will have demanded as much from these Sundays were among the most memorable weekends of his childhood. The initiative saw motorways, streets, the planet as Earth can renew in the entire year. Global and roads opened up to bicyclists and roller skaters, and Footprint Network recalculates this day every year and even horse-drawn carriages. “This was great fun for us marks it as Earth Overshoot Day, which is essentially the children. But my parents were probably a bit more worried. day when humanity has used the planet’s annual resource I was convinced the world would budget for the year and starts to eat be oil-free within 10 years, leading into the principal. us to live very differently, and It is possible to use more from Being exposed to the firstpossibly better. We would have to nature than nature renews for a ever oil crisis in the early while, but the consequences are reimagine, redesign, and rebuild from scratch,” he says. Since then, 1970s as an 11-year-old freshwater depletion, deforestation, biodiversity loss, and accumulation Mathis has passionately imagined child marked me and advocated for a world in which of carbon in the atmosphere. Mathis humans live within the means of says: “We invite the public to nature rather than constantly #MoveTheDate, meaning support eroding it. ways to push Earth Overshoot Day later on the calendar. Born in November 1962, in Basel, Mathis, wishing to If we pushed the date back five days a year, we’d be living explore the possibilities of renewable energy, obtained his within the means of less than one planet Earth before 2050. first degree in mechan ical engineering from the Swiss For instance, if we cut carbon dioxide emissions from fossil Federal Institute of Technology in Zurich. He later fuel use by half, we would move the date 89 days forward.” completed a Ph.D. in community and regional planning Last year, Earth Overshoot Day was covered by top media at the University of British Columbia in Vancouver, outlets around the world. Canada, where he developed, with his doctoral supervisor, Despite the highly regarded Paris Climate Agreement the Ecological Footprint, a resource-accounting approach. in which almost 200 nations committed to reduce global During his formative years, Mathis also resided in Costa climate change to below 1.5° C, Mathis does not see sufficient evidence that the signatories are acting accordingly Rica, Denmark, France, and Mexico, and still has a soft and are preparing themselves for such a world. He laments spot in his heart for each of these countries. Today, Mathis lives in California, US, and spends his time that cities and countries are reconfiguring their infrastructure advancing humanity’s knowledge and understanding of at too slow a pace and that the role of the individual family people’s natural resource situation. As the CEO of the Global is underestimated, despite the fact that preparing ourselves Footprint Network, Mathis oversees the use and improvement as individuals and as societies for such a world is in our of the Ecological Footprint, a one-of-a-kind metric that direct interest. Mathis believes that our biggest opportunities compares overall human demand on nature against what lie in the ways we structure our cities and build our houses Earth can renew. Global Footprint Network is a non-profit — to be compact and efficient; how we power ourselves research organization committed to ensuring that policy— to use photovoltaics rather than coal; how we feed makers around the world align their decisions with the reality ourselves — to avoid waste and eat lower on the food chain; of Earth’s limited ability to fulfill all of humanity’s needs and in reducing the rate at which the global population is indefinitely, considering our current unsustainable rate of growing. He argues that smaller families can generate many benefits, including improved educational and health consumption and population growth.

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outcomes as well as, naturally, more sustainable resource availability per person. Still, more and more people are engaging personally in making a difference. In 2017, when Global Footprint Network launched a new version of its Footprint Calculator, which allows individuals to calculate their ecological footprint, over 700,000 people from around the world used it within three months — a momentous achievement for the organization. There are plans to translate the calculator into other languages, such as Chinese and Hindi, which is no surprise in light of growing international recognition for Mathis’ work. In 2011, he was one of four winners of the fifth cycle of the Zayed International Prize for the Environment (UAE), in acknowledge­ment of “environmental action leading to a positive change in society”. The following year, he was the co-recipient of the Blue Planet Prize (Japan), which is awarded annually to “outstanding individuals whose work … contribute[s] significantly to the improvement of the global environment”. Naturally, as an environmental pioneer, Mathis has received numerous other awards, including the Prix Nature Swisscanto (2013) and the International Association for Impact Assessment Award (2015). In 2017, Ooom publication listed Mathis as among the world’s most inspiring people (he came in at position 18 out of 100, ahead of the likes of Bill Gates, Barack Obama, and Deepak Chopra). During 2011 and 2015, Mathis was the Frank H.T. Rhodes Class of 1956 Visiting Professor at Cornell University, where he offered classes on sustainability. Academically, Mathis speaks very fondly of his Ph.D. supervisor, Prof. William Rees, whom he considers a mentor. He credits Rees for teaching him how to “communicate enthusiastically with audiences”, a valuable lesson considering that public speaking takes up a chunk of Mathis’ time. In 2015, he delivered an informative TEDx talk titled “How much nature do we have? How much do we use?” in San Francisco. Other highly influential people in Mathis’ life include his primary school teacher, for “enlivening our desire for learning and increasing our curiosity”, a zoologist uncle “who inspired me to think outside the box and

follow my passion”, and a high school art teacher, for his compassionate and attentive listening. When asked about whom he regards as intellectual giants, Mathis is quick to provide an answer, naming environmentalist Dr. Donella Meadows, economist Herman Daly, and renowned psychologist Dr. Marshall Rosenberg (who advocated non-violent communication). That Mathis mentions Meadows and Rosenberg — both of whom are deceased — as influencers reveals the value he places on posterity and leaving a legacy, such as his own lifelong body of work, and the importance of attaining all the goals which he aims to still achieve. “If I am seen as a positive force in service of enabling all people’s prosperity forever, then I would be quite satisfied,” he says. Of course, Mathis is aware of the trials that go with ensuring human and environmental prosperity, but he is certainly up for the challenge. In his own words: “I also know that change will not happen if I cannot make it inviting. If I view others as obstacles, how can they feel invited to participate? This is a great litmus test: I often ask myself — am I truly committed to making this other person’s life more wonderful? Because if not, engaging with them is unlikely to produce any productive outcome”. Outside of ‘work’ — Mathis doesn’t consider his work to be work — he enjoys cooking, hiking, bike rides, and various forms of creative expression, occasionally taking out his cello from the closet. “Getting lost in music” is another of his preferred leisure activities: his current musical obsessions are Fantastic Negrito from Oakland, his current home town, and Stromae from Belgium. When he is not traveling, Mathis enjoys being involved in homemaking with his son and wife, Susan Burns, with whom he founded Global Footprint Network — from their living room. All this helps him recoup for the great tasks that lie ahead. The real work is to “align our decision-making with the physical reality in which we operate. I call it ‘one-planet reality’. How can we stop living off the principal of our planet and just live off the interest? How can this be attractive and become the obvious normality?”, Mathis wonders. Humanity awaits his champion leadership in answering these important questions.

72 | The Global Citizenship Review

IMAGE: Supplied

GLOBAL LIFE


IMAGE: Supplied


GLOBAL LIFE

Property

I

n one of the most beautiful districts of Vienna, at the juxtaposition of old and new, lies the exquisite Berggasse 35. With its construction dating back to the late 1800s, the Gründerzeit architectural-style building in the heart of the Servitenviertel district has long been a place of connection, serving once as a state telephone agency and later as an exchange office. Now, more than a century later, the property has been reinvigorated and given a contemporary makeover to become an urban village in the midst of culture, cuisine, and leisure facilities. Berggasse 35 consists of 32 freehold modern apartments ranging in size from 61 m 2 to over 600 m 2 for the flagship Grand Étage. Only a handful of the properties have a balcony or terrace, and limited parking spaces are available. Each apartment has state-of-the-art features including, among others, a BUS system, air conditioning, underfloor heating, and an alarm system that can be controlled remotely, assuring owners of their prime investment’s security. There is a high demand for all the properties, with more than 10 having already been sold and several others reserved. The three unique apartment styles offer clear-cut, openplan living spaces on four different floors. Exceeding all

expectations, the Berggasse 35’s top floor is the epitome of style, modernity, and comfort. It beautifully harnesses the architectural design possibilities and gives the occupant a breathtaking view of the city and its surroundings. Berggasse 35 is located close to high-end retail shops and within walking distance of the D-line tram station. The U2 and U4 underground lines can be reached in just a few minutes on foot, and the airport is also easily accessible. Offering a one-of-a-kind cosmopolitan atmosphere and sophisticated experiences of Vienna, the Berggasse 35 gives you access to more than just a home — it’s enshrined in cultural splendor. The Sigmund Freud Museum is a stone’s throw away (Freud lived only a few houses away from the development), a quick stroll down the street gets you to the Schauspielhaus Theatre, and short paths from the building will take you to the Servitengasse or the Danube Canal. What further solidifies Berggasse 35’s appeal as a permanent or second residence is the uncomplicated lifestyle it presents — be it a business lunch, relaxed drinks after work, a rejuvenating walk through the Liechtenstein Park, or a visit to the theatre or museum. For those looking to capitalize on the future of housing, Berggasse 35 is an excellent choice in Austria to call home.

Above: Austria’s Berggasse 35 is a stylish development located in the heart of Vienna. The exquisite building’s origins date back to the 1800s, offering a grand stage for the interior’s elegant and modern look

74 | The Global Citizenship Review

IMAGES: Supplied

Berggasse 35, Vienna


IMAGES: Supplied

GLOBAL LIFE

2nd Quarter 2018 | 75


GLOBAL LIFE

Above and opposite page: The VIP service concept at Zurich Airport Lounge appeals to individuals with a high expectation of service, a distinct preference for discretion, and an appreciation of the finer details of traveling

Marco Polo

W

ith typical Swiss devotion to hospitality and high standards, Zurich Airport has developed a VIP Service concept for the high net worth traveler. Expertly designed, from stylish arrivals to leisurely departures, it has mapped out the detailed needs of the premium traveler. At the heart of this concept lies the Zurich Airport Lounge. The arrival experience is seamlessly tailored to ease the laborious process of getting through all the checks and controls that international travel demands. When your aircraft arrives at Zurich Airport you are met by a VIP attendant who rapidly and discreetly supports you through passport control and customs. Once check-in is completed, your private attendant will escort you to your limousine,

where a porter will be waiting with your luggage, ready to wave you off as you are whisked off to the lounge. The lounge provides a luxurious in-transit experience and serves as a comfortable oasis between flights. A sanctuary of comfort inside the bustling airport, the VIP lounge is decorated with natural materials and sophisticated, neutral tones. It is the ideal place to unwind, rejuvenate, dine, or work in peaceful surroundings. Here you can sleep off your jetlag, enjoy a cup of freshly brewed morning coffee or even a festive glass of champagne. Facilities at the lounge include a bistro offering Ă la carte dining, private sleeping pods, pristine en-suite shower cabins, and acoustically separate workstations. Each workstation is conveniently equipped with a laptop,

76 | The Global Citizenship Review

IMAGE: Supplied

Zurich Airport Lounge


IMAGES: Supplied

IMAGE: Supplied

GLOBAL LIFE

printer, and adapters, ensuring that the busy professional can stay abreast of his/her intercontinental business affairs without being interrupted by traveling across time zones. As soon as your connecting flight is ready, you will be chauffeured back to your aircraft in style. To keep the promise of luxury, the anticipatory service of the experienced multilingual VIP team makes sure that all the unique needs of the premium-class traveler are met. Team members can assist as concierge, butler, navigator, travel companion, and even shopping expert. The discretion and privacy required by certain high net worth individuals is also considered. Tucked away in the wing of the lounge is the exclusive Zurich suite, available only upon request, with booking priority at the discretion of the VIP team. Soothing lighting puts the most select guests at ease in this ultra-private space, which can offer up to six people the highest degree of privacy. The Zurich Airport VIP Service concept has truly set the standard when it comes to meeting the needs of the high net worth traveler. The impeccable VIP team has effortlessly customized the airport experience to be efficient and comfortable. The Zurich Airport Lounge is the premier haven for travelers fortunate enough to make a stop at Zurich Airport.

2nd Quarter 2018 | 77


GLOBAL LIFE

Culinaria

W

hen one combines classic French flavors with Austrian precision, the culinary result is the fine work of highly rated chef Silvio Nickol, which is on display at the chef’s self-named restaurant in Vienna, Austria. Established in 2011, the restaurant is one of seven twoMichelin-star-rated restaurants in the country, and diners at the luxury eatery are guaranteed a unique gastronomic experience fit for royalty. Born in Hoyerswerda, Germany, in 1975, Nickol stumbled upon his passion for cooking at the tender age of seven years. Professionally, his cooking career kicked off in the mid 1990s at the Wald & Schlosshotel Friedrichsruhe in Zweiflingen, Germany. After years of training with industry luminaries, including Lothar Eiermann, Harald Wohlfahrt, and Heinz Winkler, Nickol took up his first position as head chef in 2007, at the Schlosshotel Velden in Austria. These days, Nickol’s time is spent exclusively at his Silvio Nickol restaurant, which is part of the Palais Coburg Hotel, with all its historic significance. The palatial residence was built between 1840 and 1845, commissioned by Ferdinand von Sachsen-Coburg-Gotha, a prince of the House of Saxe-Coburg and Gotha and relative of Queen Victoria and Prince Albert.

Upon arrival at Silvio Nickol, guests are greeted by the restaurant manager, whose welcome strikes a masterful balance between formal and professional, and welcoming and personal. The décor style of the 55-seater is modern, but includes sleek and luxurious features that offer subtle reminders of the venue’s centuries-old heritage. Only a year after its opening, the finedining restaurant was awarded two Michelin stars, with Nickol’s culinary delights said to be a charming marriage of traditional French flavors and modern Austrian technique. Silvio Nickol offers only set tasting menus of five-, seven-, and nine-course meals. There is the option to add paired wines to meals, which is highly recommended considering that the restaurant’s wine book has over 5,000 entries. Nickol admits that he enjoys baffling his guests with his innovative dishes. Some of the chef’s breathtaking offerings include melon sorbet with foamed bacon, creamy polenta with onsen egg, scallop served with a cauliflower puree and pandan rice, and desserts such as smoky, barbecued banana served with a foamy Lapsang Souchong cream. Silvio Nickol is open from Tuesday to Saturday, from 18:00–21:30. To make a reservation, contact +43 1 518 18 130 or email reservations@palais-coburg.com. For more information, visit palais-coburg.com

78 | The Global Citizenship Review

IMAGES: Supplied

Silvio Nickol, Vienna


IMAGES: Supplied

The Investment Migration Council is the worldwide association for investor immigration and citizenship-by investment, bringing together the leading stakeholders in the field and giving the industry a voice.

Investment Migration Forum 4-6 June 2018 Grand Hotel Kempinski Geneva, Switzerland The Investment Migration Forum is the largest and most important such event in the world. Renowned academics, government officials, representatives of international organisations, as well as the world’s leading professionals dealing with investor immigration and citizenship will all be gathering in Geneva.

Register & benefit from early-bird offers: investmentmigrationforum.org


GLOBAL LIFE

Medicus

D

r. David Malcom Nott is a Welsh, London-based consultant surgeon who is widely regarded as a leading specialist. Acclaimed not only for his groundbreaking vascular surgery techniques, Nott is also known for his dedicated work in disaster and war zones in countries such as Afghanistan, the Democratic Republic of the Congo, Haiti, Iraq, Sierra Leone, and Syria, rightfully earning him the sobriquet the ‘Indiana Jones’ of surgery. Nott practices at Charing Cross, Chelsea and Westminster, St Mary’s, and the Royal Marsden hospitals in London. At the Royal Marsden Hospital, he assists specialist oncological surgeons in performing complex cancer procedures on gynecological, urological, and sarcoma patients. In 1999, Nott made history by becoming the first surgeon to perform a femoralpopliteal bypass using only laparoscopic techniques. As a vascular surgeon, he specializes in keyhole techniques — particularly for repairs to abdominal aortic aneurysms — and distal arterial bypasses. He is also well known for his work with appendectomies, hernia repairs, lipomas, and hemorrhoids as well as the treatment of varicose veins using ligation sclerotherapy. The son of a top orthopedic surgeon, Nott was encouraged by his father to pursue a medical career. A surprising fact in the history of this distinguished medico is that he failed his A-levels at school. After re-sitting and passing the exams, Nott enrolled at Manchester University in the UK, where he obtained his medical degree. He subsequently completed his pre-clinical training at St. Andrews University in Scotland. In 1992, he was granted fellowship from the Royal College of Surgeons of England. Reflecting on his earlier failure, Nott believes it was this great jolt to his system that made him think differently about teaching and how to get the best out of students. Motivated by this experience, Nott became involved with the Royal College of Surgeons,

with whom he designed its Surgical Training for Austere Environments course. After watching Roland Joffé’s ‘The Killing Fields’ — a biographical drama about the horrific aftermath of the Cambodian war, Nott was enthralled by the capacity of human beings to help one another in desperate situations. The memory of the film stayed with him, and a few years later when he came across footage of the 1993 war in Sarajevo, Bosnia and Herzogovina, he was stirred to volunteer with Médecins Sans Frontières (Doctors Without Borders) — work that he has been doing for over two decades. Nott made headlines while on mission with the organization in the Democratic Republic of the Congo in 2008 when he saved the life of a 16-year-old Congolese boy whose infected shoulder had to be amputated; a procedure Nott had never performed before. He carried out the complicated operation with the aid of step-by-step instructions from a colleague in the UK, over text message, a major medical feat. In 2015, and together with his wife Eleanor Jupp, Nott established the David Nott Foundation. “I established the [foundation] to provide surgeons and medics with the skills they need to provide relief in conflict and natural disaster zones around the world. As well as providing the best medical care, it is my hope that David Nott Foundation surgeons will train local healthcare professionals and improve the healthcare of all in the local community,” he says. A co-editor of Conflict and Catastrophe Medicine: A Practical Guide (2014), Nott was appointed an Officer of the British Empire in the 2012 Birthday Honours. In 2016, he received the Robert Burns Humanitarian and the Pride of Britain awards. When determining who ranks among the medical elite of the 21st century, David Nott will surely be among the first listed.

80 | The Global Citizenship Review

IMAGE: Metal Potato

Dr. David Nott


GLOBAL LIFE

Art Diaspora

Shifting Literary Legacies In 2017, the novel Exit West by Pakistani author Mohsin Hamid was ranked by The New York Times as one of the top 10 books of the year, casting a worthy spotlight on the rich heritage of diaspora literature and its growing value in a highly globalized and transitional society

E

xit West, which was shortlisted for the Man Booker prize in 2017, tells the story of Saeed and Nadia, a young couple forced to flee their home town after it is seized by militants, weaving a delicate tale of love in a time of conflict, migration, rootlessness, and political turmoil. The novel’s broad international resonance and widespread critical acclaim speak to the era in which we find ourselves — an era in which personal fortune seeking and success are constantly interrupted by geopolitical forces and diverted across borders. It also speaks to the growing importance of diaspora literature: while Hamid originates from Pakistan, his biography and literary career span multiple continents, and his work reflects both his deep knowledge of the region he calls home and the complex transnationalism of his adult identity. The Greek word ‘diaspora’ denotes a scattered population whose origins sprout from a smaller geographic area. National communities become scattered as people move away from their place of birth, either in search of physical safety and security or in search of better educational, occupational, or economic opportunities. Diasporic communities tend to be associated with rich traditions of visual, literary, and dramatic art, as individuals try to make sense of and communicate the strange geographical doubleness of their experience. In addition to Hamid, the diaspora has produced a network of extraordinary writers who have reshaped the international literary archive. V.S. Naipaul left his home country of Trinidad in 1950 to pursue studies at the University of Oxford; in 2001, he was awarded the Nobel

Prize in Literature. The Kenyan literary giant Ngũgĩ wa Thiong'o — who is currently Distinguished Professor of English and Comparative Literature at the University of California — was forced into exile in 1977 while promoting Petals of Blood, which the Kenyan Government considered a rebuke against its regime. Afghan-American author and UNHCR Goodwill Ambassador Khaled Hosseini is most well known for his first two books, The Kite Runner and A Thousand Splendid Suns, which have sold more than 10 million copies in the US and almost 40 million internationally. Other diasporic authors worth mentioning include Nigerian-born Chinua Achebe and Chimamanda Ngozi Adichie, Japanese-born Kazuo Ishiguro, and Korean American Min Jin Lee. The phenomenon of diasporic literature presents a fundamental tension. On the one hand, the global community is richer because of the work of individuals in this space, who challenge us to extend our empathy and our imagination across multiple landscapes. The genre of diasporic literature ties in closely with the phenomena of globalization and borderlessness; it is, in many ways, the literature of the future. On the other hand, though, the proliferation of diasporic writers in recent decades, and especially of writers escaping persecution, foregrounds the conditions of risk under which much literary production takes place, as well as the increasing precariousness of free speech and artistic expression in many parts of the world. While diasporic literature should continue to be celebrated and nurtured, the drivers of migration and displacement demand our equal attention.

Our lives are a battlefield on which is fought a continuous war between the forces that are pledged to confirm our humanity and those determined to dismantle it Ngũgĩ wa Thiong'o

2nd Quarter 2018 | 81


GLOBAL LIFE

Books

My Health Upgraded: Revolutionary Technologies to Bring a Healthier Future Bertalan Meskó Central European University Press

fighting of tumors, and how wearables are assisting in the daily monitoring of health to support preventative measures. In the second part of the book, Meskó provides a fresh perspective on how technology is enabling medical professionals to provide more effective patient care. He shares fascinating advances such as artificial intelligence and tackles questions such as whether we can expect to have nanorobots in our bloodstream and whether 3D printers will be able to create actual, functioning organs. The final section of the book provides readers with a very personal account of how Meskó has been able to monitor and improve his own health with the help of modern technology. His practical real-life examples of leading a more proactive and healthy life include the use of technologies like fitness motivation apps and the charting of sleep patterns. My Health Upgraded is an exciting tour through the world of healthcare innovation and seeks to change our health, as well as our perception of medicine, with disruptive technologies. Dr. Bertalan Meskó is a Hungarian medical doctor, geneticist, author, and speaker. He holds a Ph.D. in genomics and his previous book has been featured on the Amazon Top 100. Known as The Medical Futurist, his research focuses on digital health technologies and how they impact on the future of health. Meskó has been featured in numerous renowned publications, including Forbes, TIME magazine, and The New York Times, as well as networks such as CNN, the World Health Organization, and the BBC.

By implementing new technology in our health and the practice of medicine, there will be no limits to what humanity can achieve. 82 | The Global Citizenship Review

IMAGE: Central European University Press

T

he evolution of technology has equally simplified and amplified how we conduct business and go about our daily lives — and its impact on modern healthcare is no different. Digital health tools and other technologies provide healthcare professionals and regulators with innovative approaches to assist patients to live better lives and to improve the industry as a whole. Dr. Bertalan Meskó’s fascination with modern medicine and its relationship with technology is the premise for My Health Upgraded: Revolutionary Technologies to Bring a Healthier Future. Based on his interviews and discussions with 50 of the medical industry’s most forward-thinking medical innovators, empowered patients, and regulators, the book provides a comprehensive and insightful look at some of the most exciting questions surrounding both present and future healthcare technologies. The topics covered in the book include Meskó’s dissection of the thousands of questions he’s received following his keynote speeches on advances in the medical and pharmaceutical industries. My Health Upgraded delves deep into the questions that many of us have about the future of medicine, yet manages to maintain a realistic and grounded approach. Divided into three parts, the book begins by describing the evolution of medicine and the extraordinary technologies we are already able to access, including the use of our DNA to map our future health, biotechnology and its role in the


The Bates Method for Better Eyesight Without Glasses

A View of the World

Dr. William H. Bates

Eland

Norman Lewis

Holt Paperbacks

IMAGES: Holt Paperbacks; Eland; PublicAffairs

IMAGE: Central European University Press

GLOBAL LIFE

The Bates Method for Better Eyesight Without Glasses is now even more popular and pertinent than when it was first printed in 1920. A revised version was published in the 1960s and there have been countless revisions since then, highlighting its continued application and relevance, particularly in a society that is increasingly favoring the natural treatment of medical conditions. Considered a remarkable phenomenon, the book is the only definitive source for the classic Bates Method. Born in 1860 and regarded as one of the best eye doctors of his time, ophthalmologist William Bates introduced the groundbreaking and completely sound theory of self-taught improved eyesight. His method has helped hundreds of thousands of people around the world to overcome normal eyesight defects without the need for prescription spectacles or any other form of medical intervention. Following the completion of his medical degree at Columbia University, Bates practiced in New York and also taught at the New York Postgraduate Medical School and Hospital. He died in 1931.

The Home That Was Our Country: A Memoir of Syria Alia Malek PublicAffairs

An edifying collection of travel journalism, A View of the World brings together 30 years of Norman Lewis’ most extraordinary pieces of writing. He shares intriguing stories of the humble lifestyle of a fisherman in Ibiza, a tragic Hemingway, and Castro’s executioner. Lewis takes you on an enriching journey with his description of the pleasures of Belize, the bloody wars of bandits in Sardinia, as well as the repatriation of the Cossacks to the Soviet Union. The collection includes one of his most treasured pieces, an article on the Amerindian populations in Brazil that resulted in the establishment of Survival International — an organization that campaigns to safeguard tribal people and their surroundings. In A View of the World, Lewis shares with his readers a form of travel writing that puts a smile on your face while also respectfully portraying the world’s injustices with integrity.

The Home That Was Our Country showcases a deeply personal journey that delicately and starkly highlights Syrian history, culture, and politics. With the hopeful beginning of the Arab Spring, Alia Malek returned to Damascus to repossess her grandmother’s apartment, which her family had lost after Hafez al-Assad came to power in Syria in 1970. The loss of the apartment plays a central part in her parents’ decision to move to the US. The book provides a colorful chronicle of the people who live and have lived in the Tahaan building. Malek tells of the joy, sadness, and suffering of the Syrians — Muslims, Christians, Jews, Armenians, and Kurds who lived in close quarters — a reflection of the political changes in their country. As she restores her family’s home in the shadows of the country’s turmoil, she learns how to come to terms with the oppression that accompanies a dictatorship while personally confronting her concerns about the future of Syria.

2nd Quarter 2018 | 83


GLOBAL LIFE

Reflections

W

inner of the Nobel Prize in Physics in 1922, pioneer physicist Niels Henrik David Bohr is among the foremost scientists of the 20 th century, and his work on the atomic model is regarded as seminal. Born in 1885 in Copenhagen, Denmark, to Prof. Christian Bohr and his wife, Ellen Adler Bohr — their second child — Bohr was destined for scientific greatness. His father was a highly regarded physiologist, employed at the University of Copenhagen, and his mother is said to have come from a family that was prominent in the field of education. Bohr attended Gammelholm Grammar School, from which he graduated in 1903. He enrolled at the University of Copenhagen in the same year and pursued studies in philosophy and mathematics, but changed his mind in 1905 and settled on studying physics. Bohr completed his master’s degree in 1909 and his doctoral degree in 1911, for which he investigated how electrons in metal behave, under the pupilage of Prof. Christian Christiansen, a noted physicist acclaimed for discovering the Christiansen effect. The young rising star took up a teaching position at the Victoria University of Manchester, UK, where he taught until 1916, before returning to his alma mater as Professor of Theoretical Physics. In 1920, Bohr established the Institute of Theoretical Physics (in Blegdamsvej, Copenhagen), which attracted significant respect as well as a generation of leaders in the field, producing Nobel laureates such as George de Hevesy. He remained at the

helm of the Institute of Theoretical Physics until his death in 1962. In 1922, Bohr’s pioneering work on the atomic model led to Nobel acclaim. His work is said to be the basis of our comprehension of the world and quantum mechanics today, revolutionizing technological developments. Despite reaching what many consider the apex of professional pursuits, the author of over 100 publications — including The Theory of Spectra and Atomic Constitution (1922), Atomic Theory and the Description of Nature (1934), and The Unity of Knowledge (1955) — continued on his journey with much vigor. In 1927, Bohr developed the concept of complementarity, about which he is said to have had many debates with Einstein. Later, Bohr’s research on the atomic nucleus was used to develop atomic weapons and nuclear energy; however, he was a dedicated advocate of the peaceful use of atomic energy, going as far as addressing an open letter to the UN in 1950. In recognition of his efforts, Bohr was awarded the Atoms for Peace Award in 1957. His other awards include the Order of the Elephant (1947), the highest prestige bestowed by the Danish government. A former president of the Royal Danish Academy of Sciences, Bohr married Margrethe Nørlund in 1912. Together they had six sons, two of whom later died. One of their sons, Aage, followed in his father’s footsteps: in the early 1960s he was appointed director of the Niels Bohr Institute, the former Institute of Theoretical Physics, and in 1975 he was one of three recipients of the Nobel Prize in Physics.

An expert is a person who has made all the mistakes that can be made in a very narrow field. 84 | The Global Citizenship Review

IMAGE: Europeana collections

Niels Bohr


OPINIONS | Global Passports and the Dilution of Citizenship

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