Global Passports and the Dilution of Citizenship | OPINIONS
The Global Citizenship
1st Quarter 2018
•
The Safe Harbor Issue
Safe Harbor Investment Migration Through the Looking Glass
Now is the Time to Protect Your Assets 01 9 7 7 2 5 1 794008
ISSN 2571-7944 Published Quarterly
The Changing Face of Luxury: New Demographics and Emerging Markets
Rights of Passage: The 2018 Henley Passport Index
OPINIONS | Global Passports and the Dilution of Citizenship
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
Global Passports and the Dilution of Citizenship | OPINIONS
12th Global Residence and Citizenship Conference 4 – 6 November 2018 ∙ Jumeirah Mina A’Salam ∙ Dubai
Define your Future Portugal · Singapore · South Africa · South Korea · St. Kitts and Nevis · St. Lucia · Switzerland · Thailand · United Kingdom · Vietnam
OPINIONS | Global Passports and the Dilution of Citizenship
Contents Upfront 5
From the Editor
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Contributors
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News and Updates
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Events
Columns 22 Kochenov British Nationalities: A Unique Panoply 23 Brexit Uncertain Times for Investment Migration
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24 How to ... Keep Calm and Survive a Tax Investigation 25 Diogenes What is Beauty? 26 On Trend The Changing Face of Luxury: New Demographics and Emerging Markets
Opinions 30 Global Talent Flows — Policies and Gatekeepers (Part 3) 34 Technology, Identity, and Post-ownership: The Rise of Virtual Worlds 36 Head Office Status in St. Lucia
46 2 | The Global Citizenship Review
38 Key Steps to Ensure Your Business Meets its Performance and Profitability Potential 40 Now is the Time to Protect Your Assets
Global Passports and the Dilution of Citizenship | OPINIONS
Cover Story 42 Safe Harbor: Investment Migration Through the Looking Glass
Country Review 46 Antigua and Barbuda: A Prime Choice for Second Citizenship
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Features 52 Interview Shaun Rein 54 Advancing Investor Immigration and Citizenship 56 Jersey: The Perfect Balance for Business and Family
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58 Visionary Philanthropy 62 Rights of Passage — Henley Passport Index 2018 66 Austrian Citizenship 67 Italy’s Preferential Tax Regime for New Residents
Global Life
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68 Global Citizen: Monique Morrow 72 Property: Tamarind Hills, Antigua 74
Marco Polo: The Chedi Andermatt
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Culinaria: yam’Tcha, Paris
78 Medicus: VIP Syndrome 79 Art Diaspora: Dissolving Continents 82 Books
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84 Reflections: Simone de Beauvoir
68 1 Quarter 2018 | 3 st
OPINIONS | Global Passports and the Dilution of Citizenship
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Global Passports and the Dilution of Citizenship | OPINIONS
UPFRONT
From the Editor
Through the Looking Glass
W
hether a mirror, a window, or a kaleidoscope of shifting facets, the looking glass illuminates that which is within and without, allowing us to view and review the world around us. To better reflect and reveal, The Global Residence and Citizenship Review has been cut to size, faceted, and polished, and I proudly present this new gem in the form of this Q1 2018 issue. The magazine has adopted a smaller size, but more wide-ranging content, to appeal to all readers interested in the rapidly expanding investment migration landscape and global citizen life. As a mirror, the REVIEW now features more comprehensive News and Updates in our ‘Upfront’ section and has a new, dedicated collection of insightful columns that focus on different spheres of interest. In our new column ‘On Trend’, we highlight the latest trends in luxury and international life. As a window, the REVIEW publishes Opinion and Feature articles of highly regarded authors from around the world, exploring factors that shape investment migration, and we continue to showcase a country with a leading investment migration program. In this issue we are proud to shine the light on the enduring island of Antigua and Barbuda. Emerging from the aftermath of hurricanes Irma and Maria, Antigua and Barbuda is rallying, and the integration of hurricane relief funding into its citizenship-by-investment program offering illustrates the benefit of investment migration to the country. It is fitting that this first issue for 2018 also profiles Henley & Partners’ Global Citizen Award® winner Monique Morrow, a tech innovation pioneer who is championing the idea of a humanized internet for all, to echo the importance of digital knowledge dissemination. I trust that you will enjoy and benefit from the attentively crafted pages that follow, just as much as I have enjoyed working with our new and expanded Editorial Board, the REVIEW editorial and design team, and our sterling contributors to create them.
Dr. Christian H. Kälin Editor in Chief
1st Quarter 2018 | 5
UPFRONT
Editor in Chief Dr. Christian H. Kälin Managing Editors Janine Droux Ingrid Nye Senior Editor Monwabisi Mhlophe Publishing Designer Wade Hunkin Editorial Board Ghada Alatrash Canada
Marnin J. Michaels Switzerland Kamal Rahman UK Jim Rogers Singapore
Advertise If you are interested in advertising in The Global Citizenship Review, please write to adverts@gc-review.com
Correspondents Jennifer Lai China and North Asia
Feedback Comments and suggestions, praise, and criticism are welcome. Please write to editor@gc-review.com
Dominic Volek Southeast Asia
Publication information The Global Citizenship Review (ISSN 2571-7944) is published quarterly by Ideos Publications Ltd., Zurich Switzerland
Dua Yassin Middle East
Laura Austin US
Polina Kuleshova Russia/CIS
Prof. Dr. Philippe Foret Kazakhstan Switzerland
Mark Pihlens UK/Europe
Dr. Tony Gao China Nadine Goldfoot UK Prof. Dr. Christian Joppke Switzerland
Subscribe Scan the QR code alongside, visit gc-review.com, or email subscriptions@gc-review.com
© 2018 Ideos Publications Ltd. This journal and the individual contributions contained in it are protected under copyright and applicable terms and conditions of the publisher.
Andrew Taylor Africa Domenic Presutti North America Andrea St. Bernard Latin America/Caribbean
The Global Citizenship
1st Quarter 2018
•
The Safe Harbor Issue
Safe Harbor Investment Migration Through the Looking Glass
Dr. Parag Khanna Singapore Prof. Dr. Dimitry Kochenov Netherlands Dr. Robert W. Kuipers Switzerland
6 | The Global Citizenship Review
Now is the Time to Protect Your Assets
ISSN 2571-7944 Published Quarterly
The Changing Face of Luxury: New Demographics and Emerging Markets
Rights of Passage: The 2018 Henley Passport Index
UPFRONT
Contributors Sari Kerr is an Economist and a Senior Research Scientist at the Wellesley Centers for
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30
Women at Wellesley College, US William Kerr is a Professor of Business Administration at Harvard Business School
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Bruno L’ecuyer is the CEO of the Investment Migration Council
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Çağlar Özden is the Lead Economist of The World Bank’s Development Research Group
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Kevin Lemasney is the Director of High Value Residency at Locate Jersey
56 Christopher Parsons is an Assistant Professor of Economics of the University of Western Australia
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Christoph Courth is a Senior Philanthropy Advisor in UBS’ Philanthropy Advisory team
60 Trevor Hardy is the CEO of The Future Laboratory, which specializes in transformational foresight, strategy, and innovation
Anna-Marie Harling is Head of the Global UHNW Philanthropy Center at UBS
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Ryan Devaux is the Chairman of the St. Lucia Citizenship by Investment board
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Balazs Esztegar is an Attorney-at-Law in Vienna, Austria
66 Chris Roebuck is a Visiting Professor of Transformational Leadership at Cass Business School
Giulio Allevato is an Associate in the Italy office of Baker McKenzie
67 Jacopo Crivellaro is an Associate in the Switzerland office of Baker McKenzie
Felix W. Zulauf is the Owner and President of Zulauf Asset Management AG
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Charmaine Quinland-Donovan is the CEO of the Antigua and Barbuda Citizenship by Investment Unit
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OPINIONS | Global Passports and the Dilution of Citizenship
UPFRONT
News and Updates Henley & Partners Hero Scholarship for Antigua and Barbuda
IMAGES: Henley & Partners
In late 2017, as part of ongoing efforts to create opportunities for the development and empowerment of young people in the Caribbean, Henley & Partners rewarded three more brilliant students through its Hero Scholarship program. The program was created in partnership with Saint Mary’s University in Halifax, Canada, and the Halo Foundation in Antigua. The scholarships are awarded to students in their final year of secondary school and those within tertiary institutions who deserve recognition, not only for their academic merits but also for their remarkable acts of bravery and kindness. Covering full tuition fees, the four-year scholarships support career development and nation building, empowering talented, caring, and committed young people to become drivers of their own future and future leaders of their communities. Armani Gomes, Franklyn Southwell II, and Rayniér DeBellotte (pictured below from left to right) — all citizens of Antigua and Barbuda — were awarded the 2017 scholarships on the basis of their academic merits, alongside their outstanding acts of bravery and kindness, for which they each also received the Halo Hero Humanitarian Award. They have now commenced their undergraduate studies at Saint Mary’s University. Armani, who is enrolled in a business management degree, is passionate about taking care of the environment and raising awareness about its importance in his community.
Armani’s former schoolmate, Franklyn, is an aspiring politician and is following a degree in political science. He is committed to supporting youth involvement in community initiatives. “As a future politician,” says Franklyn, “I will make it my duty to invest heavily in more youth innovation programs to facilitate funding for young people who may someday create technology that can change the world.” When their selection for the scholarship was announced, the students admitted that they would miss their families and friends as well as the sunshine, beaches, and tight-knit community culture of Antigua and Barbuda. Even so, the opportunity to study abroad was of great significance to them. Armani says: “Without this scholarship opportunity I honestly feel that I may not have been able to receive any tertiary education.” Gaye Hechme, Managing Partner of Henley & Partners Antigua and Barbuda, expressed her pride in the students. “We hope the scholarships will support their career development and empower these young people to become the drivers of their own future,” she says. “We look forward to the valuable contribution that they will make to this nation in the years to come.” The Henley & Partners Hero Scholarship was created in the Caribbean in 2016 as a pilot project focused on developing the potential of talented and promising youths in the region. The firm is continuing to evaluate and research the impact of the scholarships, and intends to further develop and expand the program along with the support of its clients in the region.
8 | The Global Citizenship Review
UPFRONT
Zannah Mustapha Receives 2017 UNHCR Nansen Refugee Award At a ceremony in Geneva, Switzerland, 58-year-old Nigerian lawyer Zannah Mustapha received the 2017 UN High Commissioner for Refugees (UNHCR) Nansen Refugee Award. Mustapha is the founder of Future Prowess Islamic Foundation School in Maiduguri, Nigeria, a hotbed of terrorist activity by militant group Boko Haram. Despite conflict in the region, Mustapha’s school has remained open, providing free tuition, meals, uniforms, and healthcare to over 500 learners. The school had just 30 learners when it opened in 2007, and today has a waiting list of over 2,000. In 2016, Mustapha opened a second facility to accommodate the demand. Tens of thousands of children in the country do not have access to schooling, due, in part, to Boko Haram’s attacks on schools and teachers across Nigeria. Mustapha was also among the chief mediators to secure the release of the Chibok schoolgirls abducted in 2004. The UNHCR Nansen Refugee Award is an annual celebration of an individual, group, or organization that makes a notable contribution to causes relating to refugees and displaced or stateless people. Established in 1954, previous laureates include Eleanor Roosevelt, the first-ever recipient, Graça Machel (1995), and Luciano Pavarotti (2001).
The St. Kitts and Nevis Hurricane Relief Fund Investment Option
IMAGES: UNHCR/Mark Henley; Shutterstock
IMAGES: Henley & Partners
Global Passports and the Dilution of Citizenship | OPINIONS
In September 2017, the Citizenship by Investment (CBI) Unit of St. Kitts and Nevis announced the establishment of a Hurricane Relief Fund, which will consist of ‘all monies contributed into the fund for the purposes of an application for CBI’. As such, CBI applicants will be required to make a non-refundable contribution to the fund, specifically: USD 150,000 for a single applicant; USD 150,000 for an applicant and up to three dependents; and USD 25,000 for additional qualified dependents. Additional fees — such as for due diligence and application processing — remain the same. Speaking on the Hurricane Relief Fund option, Prime Minister of St. Kitts and Nevis the Hon. Dr. Timothy Harris said: “[It] is an attractive option for citizenship applicants in the way it fulfills their own desire to make a positive impact on the environment in which they are seeking to play an active part.” The closing date for this option is 31 March 2018.
“It reminds us of how international the world is, and we all have to contribute things from our different corners of the world” Kazuo Ishiguro on winning the 2017 Nobel Prize in Literature
1st Quarter 2018 | 9
OPINIONS | Global Passports and the Dilution of Citizenship
UPFRONT
Ralph Fiennes Granted Serbian Passport British actor and director Ralph Fiennes has been granted Serbian citizenship. At a meeting in September 2017, Serbian President Aleksandar Vučić handed Fiennes his passport, said to be in recognition of his work in the country. Fiennes filmed Coriolanus (2011) — his directorial debut — in the country and is currently filming another therein. In 2016, US actor Steven Seagal was also granted a Serbian passport.
Grenada Lowers Citizenship-by-Investment Contribution Requirement for Single Applicants Single applicants considering Grenada’s citizenship-by-investment (CBI) program are now required to pay USD 150,000, reduced from USD 200,000, following similar fee reductions in other Caribbean nations, including Antigua and Barbuda, St. Kitts and Nevis, and St. Lucia. The Grenada CBI program offers visa-free access to 127 countries, including China, the UK , and the countries of Europe’s Schengen Area. Grenadians may also apply for the US Treaty Investor Visa (E-2).
Da Vinci Christ Portrait Breaks Auction Records In November 2017, Leonardo da Vinci’s Salvator Mundi (‘Savior of the World’) sold for an astonishing USD 450.3 million, the highest ever amount for an artwork sold at an auction, surpassing Pablo Picasso’s Women of Algiers, which auctioned for USD 179.4 million in 2015. The restored 500-year-old, long-lost painting of Jesus Christ was reportedly commissioned by King Louis XII of France.
Saudi Arabia Grants Humanoid Robot Citizenship Saudi Arabia has become the first country to grant a robot citizenship. Sophia, a humanoid robot created by Hong Kong company Hanson Robotics, was officially recognized as a Saudi citizen at the last edition of the Future Investment Initiative Forum (held in Riyadh), at which the Audrey Hepburn look-alike expressed gratitude to the government of Saudi Arabia. “I am very honored and proud for this unique distinction. This is historical to be the first robot in the world to be recognized with a citizenship,” Sophia said.
The Dominica Citizenship by Investment Unit has announced a number of changes to its program. These include increasing the maximum age of qualifying child dependents to 30 years and reducing: • Real estate donation amounts (to USD 25,000 for a single applicant, USD 35,000 for a family of maximum four members, USD 50,000 for a family of maximum six members, and USD 70,000 for a family of more than seven), effective until 1 September 2018 • The application processing fee to USD 1,000 (from USD 3,000) • The fee for the certificate of naturalization to USD 250 (from USD 750)
10 | The Global Citizenship Review
IMAGES: Shutterstock
Changes to Dominica Citizenship-by-Investment Program Application Fees
Global Passports and the Dilution of Citizenship | OPINIONS
Don’t miss a stimulating debate with more than 60 exceptional speakers comprising of prime ministers from the region, ministers, heads of the European Commission, ESM, ECB, IMF, EIB, EBRD, CEOs representing business, finance and technology. Take the opportunity to network with the 1.500 + participants Engage in a meaningful discussion on what is shaping Europe and Greece’s future. “A ship is always safe at shore but that is not what it’s built for” Albert Einstein
A compass for Europe A fair wind for Greece
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22nd ROUNDTABLE WITH THE GOVERNMENT OF GREECE
IMAGES: Shutterstock
June 14th-15th 2018 • Grand Resort Lagonissi, Athens
For people who question all the answers. www.hazliseconomist.com The Economist Events for Greece, Cyprus, Malta and southeast Europe
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OPINIONS | Global Passports and the Dilution of Citizenship
UPFRONT
Chinese Interest in Canada Booming Immigration, Refugees and Citizenship Canada (IRCC), which is responsible for granting citizenship to individuals immigrating to the country, is said to have opened its 12th visa application centre in China due to the notable demand for services therein. According to the IRCC, a 15% increase in applications was noted between 2016/2017, with over 500,000 visa applications submitted in 2017. China represents Canada’s fastest-growing tourism market, having contributed over USD 1 billion to the Canadian economy in 2016.
UAE Citizens Can Now Visit China, Ireland Visa-Free In January 2018, it was announced that Emirati citizens would now have 30-day visa-free access to China following the signing of a memorandum of understanding by representatives of the two nations. Shortly after the announcement, Ireland indicated that it will, as of 31 January, lift visa stipulations for UAE nationals traveling to the country.
Malta Individual Investor Program a Success Official statistics from Malta’s National Statistics Office show that the Malta Individual Investor Program (MIIP) contributed over EUR 163 million to the country’s economy in 2016, helping the country register a surplus of almost EUR 113 million that year. In 2015, the Maltese government recorded a deficit of EUR 105 million. The bulk of the funds were directed from the National Development and Social Fund, which was established in 2016 and which receives 70% of its contributions from the MIIP.
St. Lucia Citizenship by Investment Unit Has a New CEO The Citizenship by Investment (CBI) Board of the St. Lucia CBI Unit announced Nestor Alfred as its new CEO. Alfred is a former banking executive and has experience as a regulator in the financial services sector.
The President of the Republic of Uzbekistan, Shavkat Mirziyoyev, announced in early 2018 that as of 1 May 2018, travelers from seven countries — Indonesia, Israel, Japan, Malaysia, Singapore, South Korea, and Turkey — will enjoy visa-free travel to the country for up to 30 days. The move is part of an attempt to reduce the country’s isolation from the global community and increase tourism inflows, which grew by over 20% between 2016 and 2017.
12 | The Global Citizenship Review
IMAGES: Shutterstock
Uzbekistan Visa Waivers Boost Tourism
IMAGES: Shutterstock
Global Passports and the Dilution of Citizenship | OPINIONS
UPFRONT
US Withdraws from UN Global Compact on Migration The US representative to the UN, Nikki Haley, has informed UN secretary-general António Guterres that the US will withdraw from the UN global compact on migration, a non-binding political declaration signed in 2016 by the 193 members of the UN General Assembly. The compact is committed to upholding the rights of refugees, including resettling them and assisting them with accessing employment and education. According to Haley, the declaration “contains numerous provisions that are inconsistent with US immigration and refugee policies”.
Updates to Antigua and Barbuda Citizenship-by-Investment Program
IMAGE: Shutterstock
The government of Antigua and Barbuda has reduced the required investment contribution for individuals applying for citizenship-by-investment (CBI) via the National Development Fund option to USD 100,000 for a family of up to four persons, down from USD 200,000. Similarly, applicants with a family of five or more will now be required to pay USD 125,000, which was previously USD 250,000. The adjustments are said to be a move to maintain the competitiveness of the Antigua and Barbuda CBI program.
St. Kitts and Nevis Launches Residence Program The Citizenship by Investment Unit of St. Kitts and Nevis has announced the launch of the island country’s residence program, following the reported success of its citizenship program.
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UPFRONT
Events
The sixth edition of Art Basel Hong Kong — the largest contemporary art fair in Hong Kong — is set again to be a grand opportunity for serious art aficionados to enhance their private collections. In 2017, Art Basel Hong Kong featured dealers such as Hauser & Wirth (Switzerland) and Gagosian (US), and galleries such as Galerie Gmurzynska (Switzerland), Pace (US), and David Zwirner (US and UK) — among 240 others from over 30 countries. An exclusive VIP preview event is organized for distinguished guests.
4–5 May Kentucky Derby US
5–8 April Masters Tournament US Since its inaugural gathering in 1934, the Masters Tournament has come to be regarded as one of the world’s most prestigious golfing championships. For four days each year, invited golfers compete in the 72-hole tournament, hoping to secure the coveted Green Jacket and a place in Masters history. In 2017, the Spanish golfer Sergio García claimed the honor.
14 | The Global Citizenship Review
Dubbed America’s greatest race, the Kentucky Derby is ‘the longest continuously held sporting event’ in the country, dating back to 1875, where celebrities, politicians, and top execs gather for a day of leisure, nailbiting betting, and networking. The Grade I race for three-year-old thoroughbreds sees 20 top horses come together for a chance to win a USD 2 million purse, and high fashion, high-rolling punters converge at the exclusive Mansion, where premiumquality drinks, food, and service flow uninterrupted.
IMAGES: Shutterstock; Art Basel
29–31 March Art Basel Hong Kong Hong Kong
IMAGES: Shutterstock; Art Basel
Global Passports and the Dilution of Citizenship | OPINIONS
UPFRONT
9–20 May Festival de Cannes France Meet the new Oscars. Festival de Cannes is possibly the most important film festival in the world in light of its significant contribution to the development of cinema and the film industry globally. The exclusive event — at which taking selfies is banned — attracts some of the biggest names in film and fashion, to the resort town of Cannes, a picture-perfect location along the French Riviera.
24–27 May Monaco Grand Prix Monaco
4–6 June The Investment Migration Forum 2018 Switzerland
The Formula One event described by the world’s top drivers as the event they all want to win, the Monaco Grand Prix epitomises daring, endurance, and life in the fast lane. For four days, the narrow streets of Monaco host celebrities, luxury in all its forms, and speeds of up to 300 km/h. Run under the patronage of Monaco’s royal family, the Fédération Internationale de l’Automobile characterized the event as contributing “an exceptional location of glamour and prestige” to motor sport.
The Investment Migration Forum, organized by the Investment Migration Council, is the must-attend forum of the global investment migration community where all the leading players unite to unveil the latest thinking, developments, and new country programs. This prestigious event presents opportunities to share and gain valuable insights and network with key professionals, government officials, academics, and thought leaders in the investment migration industry.
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OPINIONS | Global Passports and the Dilution of Citizenship
UPFRONT
Diarize
17–25 March Oxford Literary Festival UK
31 March Dubai World Cup UAE
11th Global Residence and Citizenship Conference
H 4–6 November 12th Global Residence and Citizenship Conference UAE
enley & Partners hosted its 11th Global Residence and Citizenship Conference in Hong Kong from 14 to 16 November 2017. In addition to highly focused content on the major trends affecting tax, wealth, and legacy planning, as well as the global residence and citizenship industry more broadly, the three-day program provided attendees
16 | The Global Citizenship Review
with outstanding networking opportunities through its premium delegate profile. According to Forbes, “the world is entering a ‘localism’ era”, defined not only by an uptick in isolationist rhetoric and policy but also by increased business and consumer localization. Is globalization under threat? And what does this mean for global citizenship?
IMAGES: Dubai Racing Club/Andrew Watkins; Shutterstock; Henley & Partners
25–27 May Concorso d’Eleganza Villa d’Este Italy
Event Reviews
IMAGES: Dubai Racing Club/Andrew Watkins; Shutterstock; Henley & Partners
Global Passports and the Dilution of Citizenship | OPINIONS
UPFRONT
Above: BBC News Hong Kong’s Juliana Liu (far right) moderated an engaging debate between key speakers, including Jim Rogers, Shaun Rein, Simon Shen, Cesar Jung-Harada and Christian Kälin, around the emergence of localism vis-à-vis globalization
An exclusive media debate on the first day of the conference addressed these and other topical questions. The robust debate was moderated by the BBC’s Juliana Liu and featured Jim Rogers, investment legend and author; Shaun Rein, Managing Director of China Market Research Group and author of The War for China’s Wallet: Profiting from the New World Order (2017); Dr. Simon Shen, Associate Professor and Director of the Global Studies Program at the Chinese University of Hong Kong; and Cesar Jung-Harada, French-Japanese inventor, environmentalist, and Founder of MakerBay, Scoutbots, and Protei. Other speaker highlights included the Prime Minister of Malta, the Hon. Dr. Joseph Muscat; the Minister of Tourism for the Government of Thailand, Her Excellency Kobkarn Wattanavrangkul; the CEO of leading blockchain technology company Blockstream, Adam Back; the Associate Director-General of Investment Promotion at InvestHK, Charles Ng; General Counsel for Thomson Reuters Special Services, Peter Vincent; and the Mayor of Ayia Napa, Cyprus, Yiannis Karousos.
Above: Henley & Partners’ annual conference is a stimulating event that attracts over 400 delegates from over 40 countries. The event brings together key industry stakeholders who discuss key trends and developments concerning investment migration
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OPINIONS | Global Passports and the Dilution of Citizenship
Also in attendance were the CEOs of the citizenship-byinvestment units of Antigua and Barbuda, Grenada, Malta, and St. Lucia, who delivered presentations on the latest industry insights and developments. The conference concluded with the high-profile Global Citizen Award® ceremony dinner, at which Monique Morrow was announced as the 2017 laureate. For more on Monique Morrow, see page 20. Henley & Partners’ annual Global Residence and Citizenship Conference has become the world’s largest and most significant investment migration event, attracting over 400 delegates from over 40 countries and bringing together prime ministers, senior government officials, leading academics, and industry professionals, as well as top-tier financial and business media. The 12th edition of the conference will be held in Dubai, from 4 to 6 November 2018. To register, visit henleyglobal. com/dubai2018
Top: The Prime Minister of Malta, the Hon. Dr. Joseph Muscat, and Dr. Christian H. Kälin, REVIEW Editor in Chief and Group Chairman, Henley & Partners Above left: Commodities guru Jim Rogers delivered a thought-provoking presentation on the relevance of additional citizenship in wealth planning and investment management Above right: Henley & Partners representatives for Southeast Asia and North Asia, Dominic Volek and Jennifer Lai, respectively Above: Conference attendees enjoying one of the many sessions held over the three-day event
18 | The Global Citizenship Review
IMAGES: Henley & Partners
UPFRONT
Global Passports and the Dilution of Citizenship | OPINIONS
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
IMAGES: Henley & Partners
The Investment Migration Forum will be 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
OPINIONS | Global Passports and the Dilution of Citizenship
UPFRONT
Global Citizen Award 2017 ®
O
n 16 November 2017, the Global Citizen Award® 2017 was presented to Monique Morrow and her project ‘The Humanized Internet’ at the Henley & Partners Global Citizen Award® ceremony held at the JW Marriot Hotel, Hong Kong. Before the award was presented, Paola De Leo, Head of Group Philanthropy and CSR at Henley & Partners, reflected on the award and the meaning and value it carries today. “The state of affairs in our world today is, in so many respects, warring. We have taken so many strides forward and yet
Above: Monique Morrow is flanked by Jennifer Lai, Managing Partner and Head of North Asia, Henley & Partners; 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
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.” The prize is awarded each year by an independent committee to an exceptional individual whose ideas and actions have contributed to the creation of a more just, peaceful, and tolerant society. Morrow is a humanitarian, a technological pioneer, and Co-founder of The Humanized Internet. The Humanized Internet focuses on providing digital identities to the 1.1 billion individuals, of whom 230 million are children under the age of five years, who are unable to demonstrate their legal identity. This phenomenon affects mostly people living in Africa, where governments fail to capture the existence of citizens, but also includes many refugees who have lost their documents while escaping war and persecution; indeed it is estimated that there are 10 million stateless people who have never been granted a nationality. These people are denied any freedom of movement and are often excluded from the most essential social services: healthcare, housing, and education — without education they are denied all the milestones and achievements that make up a meaningful life. “Monique Morrow’s remarkable work at the intersection of technology and human rights makes her an exceptionally worthy recipient of this year’s award,” says De Leo. “The Humanized Internet is a demonstration of how the incredible advances and innovations in technology today can be used to improve the plight of the world’s most vulnerable people. Henley & Partners is committed to working with Monique to promote the global cause of refugees, which has become the primary focus of Henley & Partners’ social investment.” Previous recipients of the Global Citizen Award® include Dr. Imtiaz Sooliman (Gift of the Givers Foundation) and Dr. Harold Höppner (Sea-Watch). For more on Monique Morrow, see page 68.
20 | The Global Citizenship Review
IMAGE: Henley & Partners
Henley & Partners hosted its high-profile Global Citizen Award® ceremony in Hong Kong, in November 2017
UPFRONT
Above: American actress and UNHCR Goodwill Ambassador Kristin Davis offered a moving reflection on her experiences as a UNHCR representative following her appointment in 2017
Annual Henley & Partners UNHCR Gala Dinner and Auction
H IMAGE: Henley & Partners
IMAGE: Henley & Partners
Global Passports and the Dilution of Citizenship | OPINIONS
enley & Partners hosted its annual gala and auction in support of the UN High Commissioner for Refugees (UNHCR) at the Four Seasons Hotel, Hong Kong, on 17 November 2017. A glittering program of stars and exquisite auction prizes delivered a magical evening that raised USD 100,000 for the UNHCR program MADE51. Internationally renowned actress Kristin Davis, famed for her role in the television series Sex and the City, spoke movingly of her experiences as a Goodwill Ambassador for the UNHCR, and Melissa Fleming, Head of Communications and Chief Spokesperson for the UNHCR, in conversation with Vie Tseng, Financial Programs Presenter at Phoenix
Television in Hong Kong, presented a compelling and moving picture of the refugee condition. The celebrated dancer Chika Wakayagi, accompanied by the dazzling harpist Lauyee Yeung, performed an interpretation in traditional Japanese dance of the poem ‘Home’ by Warsan Shire, a highly aesthetic and powerful representation of the refugee struggle. The UNHCR project MADE51 provides a sustainable route through which refugee artisans in Afghanistan, Burkina Faso, Kenya, Pakistan, Rwanda, Tanzania, and Thailand can supply market-ready, attractive, and novel products to customers worldwide.
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Kochenov
British Nationalities: A Unique Panoply
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he UK is the only country in the world that distributes about 10 different statuses of nationality among the different categories of its citizenry. Furthermore, several different statuses of UK nationality can actually be cumulated, making the UK unique as a country that allows for dual citizenship via a connection to different statuses/ different parts of itself. British nationality is associated with British citizens, British overseas territories citizens (BOTCs), British overseas citizens, British subjects, British protected persons, and British nationals (overseas). The first two types are active, i.e. can be acquired either at birth or by naturalization, or by registration of eligible persons. The other four are residual and, in principle, can be passed on to children only if they would otherwise be stateless. British citizenship was introduced by the British Nationality Act 1981, which replaced citizenship of the UK and colonies. This status is usually held through a connection with the UK, the Channel Islands, and the Isle of Man, and entitles holders to live and work in the UK free of any immigration controls. British citizens who acquired their citizenship in connection with the UK are also EU citizens and can feel equally at home in all other member states except for Croatia, which applies reciprocal measures to (citizens of) member states who took advantage of the transitional period restricting free movement of Croats. That said, free movement of British citizens in EU member states is expect ed to cease once Brexit takes effect. British citizens who acquired their status in connection with the Isle of Man and the Channel Islands can live and work freely in the UK and are full EU citizens; however, they can only exercise the same free movement rights as British citizens who acquired the status through connection with the UK once they have spent at least five years in the UK. The Isle of Man and Channel Islands are not part of
the UK proper, or the EU, in their own right. Once the UK leaves the Union, the existing relationship of both the Channel Islands and the Isle of Man with the EU is expected to cease. BOTCs hold their status either because of their connection with Gibraltar or with another British overseas territory (BOT). Unlike Gibraltarians, who are full EU citizens and can freely live and work in the UK as well as all EU member states (except Croatia), BOTCs connected to other BOTs do not enjoy any of these rights. That said, Gibraltarians share the destiny of other British citizens facing restricted access to EU member states after the UK’s withdrawal from the EU. The other four British nationalities are in decline and do not enjoy the automatic right to live and work in the UK. They are not EU citizens and cannot freely live and work in any EU member state. The above types of British nationality have different value given the circumstances in the territory issuing the nationality and the opportunities that such nationality offers its holders abroad. British citizenship acquired in connection with the UK naturally has the best value, followed by the Gibraltar BOT citizenship. Gibraltarians are considered British citizens for EU purposes, having the same rights and entitlements. The conditions placed on the free movement of Channel Islanders and Manxmen in EU member states (except for the UK) lower their nationality value, placing these nationalities below both the British citizenship and the Gibraltarian BOT citizenship. All other British nationalities are even more inferior in value given the very limited opportunities they offer their holders in terms of living and working abroad. That said, British nationalities that currently have the best value will be the nationalities that will lose most once the UK leaves the EU, given that their high value builds largely on the opportunities offered through the UK’s membership in the Union.
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Dimitry Kochenov, Chair in EU Constitutional Law, University of Groningen, Netherlands; Chairman, Investment Migration Council, Switzerland
Brexit
Interesting Times for Investment Migration Nadine Goldfoot, Partner, Fragomen Worldwide, UK
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n early 2018, the UK has moved forward on citizens’ Entrepreneur categories, despite Brexit. The number of rights but remains in the midst of challenging Brexit investor applications granted rose by 80% between Q2 and negotiations. The rights of UK nationals in the EU, and Q3 2016, and by 39% between Q4 2016 and Q2 2017. The of EU nationals in the UK, now seem far clearer. It is expected UK’s Tier 1 Entrepreneur statistics, too, are stable and show that after Brexit in March 2019, EU nationals who wish to sustained interest. The reasons for this are manifold: the enter the UK (other than as visitors) will have to qualify for UK’s Tier 1 options are uniquely positioned to withstand entry, perhaps in a similar way to non-EU nationals currently. free movement restrictions post-Brexit due to their longAs for EU nationals already in the UK, the British government term, commitment-driven nature in terms of residence and and the EU agreed, on 8 December job creation for entrepreneurs. In 2017, on plans to protect the rights addition, neither of the options are The British government citizenship programs and have, of most EU nationals who are in the UK at the specified cut-off date, i.e. traditionally attracted and the EU agreed on therefore, 29 March 2019. Under these plans, those looking to establish themselves EU citizens living lawfully in the UK, plans to protect the rights and/or their families in the UK in the and UK nationals living lawfully in long term, rather than those looking of most EU nationals who the EU, by this date will be able to for expeditious citizenship options stay and enjoy broadly the same rights are in the UK at the speci and free movement rights. The UK and benefits as they do now. has never been a convenient option fied cut-off date As future rights post-Brexit are for those seeking EU citizenship unclear, we continue to see a sig ‘instantaneously’ — it takes three to nificant increase in appetite from five years to obtain permanent high net worth individuals (HNWIs) within the UK for residence, with applicants having to spend around half of that investment migration solutions within the EU, to guarantee time physically present in the UK every year, and five to free movement rights. Malta and Cyprus are proving six years to obtain citizenship, which has even more increasingly popular, with immediate EU citizenship — onerous residence requ irements. after 12 months’ effective residence in the case of Malta This immediately contrasts UK citizen — available for those anxious to preserve free movement ship options with the programs in rights post-Brexit. This trend is not exclusive to UK Cyprus and Malta, which offer HNWIs; indeed, HNWIs in the US are also looking at immediate citizenship and European citizenship and residence solutions to protect a 12-month path to themselves against growing political and economic citizenship, respec uncertainly in the US. t ively. The UK’s Tier 1 categories have proved resilient against Brexit uncertainties. Statistics show not only stability in uptake from Q3 of 2016 (after the UK’s referendum vote), but in fact increased interest across Investor and
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This bears in mind that citizenship of either of these countries allows for free movement within all the other member states of the EU, not just the UK. However, these two jurisdictions will no longer provide an indirect route to the UK once the UK has left the EU (assuming the end of free movement). The UK remains attractive to HNWIs because of, among other things, its quality of life, education system, and geographical position in the world. The recent introduction of a residence requirement (180 days in a year) for the dependents of Tier 1 applicants may, however, deter some
applications. That aside, the decision to leave the EU does not seem to have dampened the appeal of the UK to HNWIs. Rather, the available statistics so far indicate that the UK’s Tier 1 Investor route may in fact become increasingly popular for those who were planning to establish themselves in the UK through citizenship programs elsewhere in the EU but who cannot do so post-Brexit. That said, we are still in unknown territory. As such, it is unclear what Brexit will mean for investment migration across Europe come April 2019.
How to ...
Keep Calm and Survive a Tax Investigation James Quarmby, Partner and Head of Private Wealth, Stephenson Harwood LLP, UK • Once it has been established that the enquiry is valid, it is then a matter of determining what exactly is wrong with your tax return. This involves a full review of your tax affairs for the tax year in question and presenting your findings to the tax authority. Typically, tax authorities are not very forthcoming about their suspicions and will rarely tell you exactly what they think is wrong with your return, which means that you have to play a game of ‘show and tell’ in order to get to the bottom of the matter. • Once the picture is clear, you should be able to agree to the total amount of understated tax (if any), to which interest will be applied, together with a penalty. The level of penalty will depend upon the seriousness of the case and your behaviour both before and during the investigation. If taxpayers are properly advised and cooperative, even the most sinister-seeming tax investigation can become quite routine. The bonus is when the taxpayer comes to realize that the tax authority is just doing its job — to ensure that you pay the correct amount of tax under the law.
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f there’s one letter that’s never welcome in one’s postbox, it’s a letter from the taxman. A tax investigation can range from a relatively benign routine enquiry into some aspect of your tax return that the relevant tax authority does not understand, through to a full-blown investigation into your affairs, normally when there is a strong suspicion that something is seriously wrong. The first thing to note is that it is likely, at best, that you have made some kind of mistake that needs to be rectified and that things will at least remain ‘civil’. However, where your tax authority suspects deliberate behaviour (i.e. tax fraud), it will launch an enquiry, and the letter announcing this can appear quite terrifying. Before your stress levels go off the scale, bear the following in mind: • If you agree to follow procedure, then the tax authority will generally look for a civil settlement and will not seek prosecution. • Whenever you receive any kind of enquiry from the taxman, it is important to seek advice. The first thing your advisor will do is check that authority has been granted to enquire into your affairs.
Diogenes
What is Beauty?
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t. Augustine of Hippo, one of the greatest Christian thinkers, says in his Confessiones that he is certain of the concept of time as long as nobody asks him for an explanation. As soon as he is asked, he finds he cannot utter a single word about it. Likely, this phenomenon affects us all, particularly in respect of subjective questions such as the one posed in the title of this article. While we are all well acquainted with the conviction that something — or someone — is or is not beautiful, numerous critical thinkers and writers have attempted in earnest to resolve the question of beauty — perhaps one of the greatest riddles of our soul and mind. Despite these efforts, all their theories of beauty are unsuccessful attempts to definitively quantify what is, in principle, unquantifiable. The ancient Greeks were obsessed with beauty, in particular that of the human body. In the Middle Ages, Christianity rejected this fascination, even declaring the body a potential source of sin. The art of that period reflects a struggle to transcend worship of the human body, searching for the meaning of our physical existence. In the 18th century, German philosopher A. G. Baumgarten coined the term ‘aesthetics’, initiating a new field of philosophical inquiry. Aesthetics is generally understood as a set of principles that explore the nature of beauty and how we appreciate it, including the question of whether everyday objects can themselves be beautiful or whether beauty is something detached from any purpose. If one is to approach aesthetics — specifically, beauty — scientifically, one must have clear, measurable criteria. To develop these criteria, one must be able to define the qualities that confer beauty. Contrary to art critics, philosophers of art do not try to validate a work’s beauty; rather, they propose general criteria for its assessment. Three perspectives concerning beauty deserve some consideration: 1. According to the hedonistic way of thinking, a true work of art must have the quality of producing pleasure, specifically
by being beautiful. The weak point of this theory is that a work of art typically does not offer the same degree of pleasure to everybody. An enthusiast of Greek sculpture might balk at Picasso’s Guernica, while a patron of modern art may be moved by its powerful metaphor. 2. Another school of thought claims that only beauty — more so than any science — can lead to the attainment of ultimate knowledge and truth. The weakness of this theory is that science uses well-defined, binding language and offers quantifiable knowledge that can be verified; beauty cannot offer this. 3. The idea that beauty and goodness are correlated is somewhat dated. In Plato’s dialogues, the relationship between beauty and goodness is one of the main topics. Some believe that beauty can influence human behavior and thus foster morality. For such moralists, art that does not cultivate morality is worthless, even dangerous, if it underlines individualism, and thus disturbs society. If beauty could enhance morality, then people living in splendor surrounded by ‘beautiful’ works of art, would be especially gentle, kind, and helpful individuals. Sadly, this is often not the case. We must now admit that, to date, no theory has been able to explain what beauty is. Beauty, like intangibles such as love and truth, is neither quantifiable nor objective, and, consequently, eludes definition. Rather, the individual perception of beauty is a highly personal way of experiencing ‘reality’ and is dependent on an individual’s unique heritage and inclinations. Just as we readily admit the famous Latin proverb that de gustibus non est disputandum (‘in matters of taste, there can be no dispute’), so should we also accept the assertion that de pulchritudine non est disputandum (‘in matters of beauty, there can be no dispute’), because beauty is profoundly personal and elusively unquantifiable.
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On Trend
Two open-air street-food vendors in Singapore made his tory in 2016 by becoming the first such vendors to be awarded Michelin stars, each receiving one star.
Mega yacht Jubilee made history at last year’s Monaco Yacht Show, taking the crown as the largest yacht ever to be exhibited in the country. The 110.1 m motor yacht by Dutch yard Oceanco is the largest to be built in the Netherlands — by both length and volume standards.
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t the turn of the century, the world of luxury remained the exclusive bastion of wealthy consumers, concentrated in Western Europe, North America, and Japan. However, this club is increasingly welcoming new members, including those from emerging markets, which — together with shifting demographics and new technologies — add novel and exciting dimensions to the luxury market as a whole. People are expressing their conspicuous consumption and elegance in new ways that are not confined to owning expensive watches, handbags, cars, and jewels. According to New World Wealth’s The Wealth Report, released in 2017,
the number of ultra high net worth individuals (UHNWIs) — individuals with USD 30 million or more in net assets — increased to 193,490 in 2016. At face value, this number might seem insignificant; however, it stands in stark contrast to the negative growth of UHNWIs recorded in 2015. More significant is the suggestion that emerging markets have become more prominent in terms of the count of UHNWIs. Emerging markets refers to fastgrowing economies, most notably those in Asia, Latin America, and Africa. New World Wealth reports that of the 20 countries whose UHNWI populations have grown
According to Global Powers of Luxury Goods (2017), roughly half of luxury purchases by emerging market consumers were completed while traveling, with 31% of consumers purchasing goods in a foreign market and 16% purchasing goods at an airport.
“In 2018, more than half of revenues in the global fashion industry will come from new markets in the East.” – State of Fashion 2018 report by The Business of Fashion and McKinsey.
Above: Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai, UAE, arriving at the 25th edition of the Dubai International Boat Show in 2017. The show is the largest such in the Middle East, showcasing over 400 boats. The UAE is among the leading emerging market economies
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The Changing Face of Luxury: New Demographics and Emerging Markets
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Left: Since the opening of H&M in Cape Town, South Africa, the Swedish retailer’s branch was rated third worldwide in terms of volume sold. In 2016, the brand’s local sales grew by 111% in the country
most rapidly over the last decade, 11 are in Africa. These include Ethiopia, Kenya, Mauritius, Rwanda, Tanzania, and Uganda. Looking at projections, emerging markets’ economic growth is largely positive, which would naturally lead to more UHNWIs. For instance, the number of UHNWIs in Europe is predicted to climb by an average of 12% compared with a forecast 91% growth in Asia over the next decade. During this time, The Wealth Report notes, the growth in ultra-wealthy populations in Africa (33%) and Latin America (37%) is also forecast to outpace that of UHNWI populations in Europe and North America. Asia is perceived as one of the leading regions for growth in UHNWI numbers. According to The Wealth Report, Asia has 27,020 fewer UHNWIs than North America. By 2026, this difference is projected to shrink to just 7,680. In 2017, Swiss brand Richemont — which owns brands such as Cartier, Van Cleef & Arpels, A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger-LeCoultre, and many others — found most of its growth in Asia, most notably China and Hong Kong. The latter is considered a prominent shopping destination in the region, specifically for Chinese tourists, similar to Dubai’s reputation among Middle Eastern tourists. Africa has about 50 directly operated global luxury single-brand stores, with the world’s largest multinational luxury goods conglomerates, LVMH and Richemont, accounting for 60% of these stores, signifying the increasing interest in tapping into this burgeoning market. Luxurypositioned fashion companies such as Louis Vuitton, Cartier, Burberry, Gucci, Fendi, and Salvatore Ferragamo have all opened stores in South Africa, which is perceived as the shopping mecca of the continent, within the last 20 years. Furthermore, Deloitte’s 2017 Global Powers of Luxury Goods report found that 70% of consumers in China, Russia, and the UAE claim to have increased their spending in the last five years, compared with 53% in more mature markets, such as Europe, America, and Japan. Within Latin America, Brazil and Mexico are the largest and most rewarding retail markets due to the sheer size of their
Left: Singaporeans are considered among the top luxury spenders globally. The country has one of the highest GDPs per capita, at approximately USD 53,000, fueling this consumer trend
populations. Mexico, specifically, is predicted to see its UHNWI population increase by 40%, according to The Wealth Report. Today, more than ever, consumers seek to emulate the elite by acquiring luxury goods that are more affordable and accessible for the mass market, especially in emerging markets. Despite the recent economic slowdown in countries such as Brazil, China, Russia, and South Africa, growing middle-class consumers — who are savvier and more educated than ever before1 — are still large markets of luxury consumption. Brazil, China, Russia, and South Africa represent four out of the five nations that comprise BRICS, an association of members with fast-growing economies whose influence in their respective regional affairs is significant. The fifth nation is India.
Affordable Luxury and Aspirational Brands The international luxury market finds itself influenced by conflicting cultural trends, namely globalization and localization, with the latter referring to the production and distribution of products within a domestic region. Adding to the increased focus on these emerging markets, so-called ‘affordable luxury’ foreign brands are proving rather successful in emerging markets. In 2012, clothing retailer Gap entered the South African market with a different pricing strategy to the one it followed in the US. While the brand is known as an affordable clothing brand in the US, its goods were priced substantially higher in South Africa: the same t-shirt selling for USD 16 in the US was sold for USD 40 in South Africa. The positioning of the Gap brand as a luxury brand in the South African market suggests that what constitutes a luxury brand is not the same across global markets. Expressions of luxury in emerging markets compared with traditional markets mainly revolve around the exclusivity of goods and experiences within that market, regardless of the global status of these. This strategy has gained traction in markets such as China, with American brands such as Coach, Michael Kors, and Kate Spade, as well as smartphone
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for boycotts, especially from the US, Nigeria, and South Africa. Such incidents demonstrate the need for international brands to understand their target markets across the globe, especially considering non-Western cultures.
Experiential Luxury
Luxury brands are not only in the midst of a shift in power towards emerging markets, but the needs of new demographics are being fulfilled in different ways to before. Most notably, there’s a shift away from tangible goods towards more ‘experiential’ luxury, with millennials, especially, focusing on traveling, fine dining, and exclusive high-end events. In 2016, for the first time since the 2008 financial crisis, the global Tailored Localization market for personal luxury goods The influence of non-Western culture failed to grow, stalling at about is increasingly gaining traction USD 258 billion, according to internationally. In 2012, the 150-yearresearch by Bain & Company. old French fashion house Louis Furthermore, experiential luxury is outpacing personal luxury goods Vuitton launched its menswear collection inspired by iconic Basotho purchases in all markets. According garments — cashmere and wool to the Boston Consulting Group’s report on luxury, Metroluxe: Counversions of the southern African tering Complexity in the Business of mountain kingdom’s famous blankets. Launched again in 2015 Luxury, released in 2017, personal internationally and priced at luxury purchases — accessories, USD 3,000 per piece, this release was apparel, watches and jewelry, perfume, met with controversy, with debate and cosmetics — accounted for less shifting between cultural appropriathan experiential luxury purchases Above: The Basotho tribal blanket has a tion and inspiration. Even so, the — furniture, food, and wine, as well rich history of design, recently capturing collection sold out within days in as hotels and exclusive vacations. the interest of major international designers Various factors are supporting South Africa and variations were such as Louis Vuitton the democratization of previously released in the following seasons internationally. The success of the exclu sive luxury. It will be interrange signified the interest from luxury brands in tailoring esting to see how geopolitical developments and global migration impact this evolution, and whether or not new their ranges according to local markets. Whether product development or marketing, international demographics and emerging markets will solidify their luxury brands are required to take into account local cultural economic value. nuances more than ever before. In 2003, Ford inadvertently Endnote amused its new target audience when it tried to launch the 1 Euromonitor found in 2016 that adult literacy rates have Pinto model in Brazil, finding out far too late that ‘pinto’ been rising in all emerging market economies, averaging was a slang term for ‘tiny male genitals’. Ford ultimately 93.3% of populations aged 15+ in 2015. Supported by economic growth and rising incomes, education standards in changed the name. More recently, in late 2017, Unilever skin emerging markets will continue to rise rapidly in the coming and beauty brand Dove apologized after one of its adverts, years. According to Euromonitor International’s forecasts, appearing to show a black woman turning into a white 52.4% of the population aged 15+ in emerging market woman, went viral, fueling the stereotype that light (white) economies will have a secondary education, while 11.7% of them will attain higher education by 2030 is better. The brand met with negative sentiments and calls
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brands Apple and Samsung, finding affinity among growing markets with disposable incomes. Foreign companies, especially those from North America and Western Europe, increasingly position themselves as premium brands in emerging markets such as the BRICS nations, which are displaying impressive sales growth despite overall economic slowdown. However, a 2017 Emerging Consumer Survey report by Credit Suisse — which surveyed consumers in BRICS, Indonesia, Mexico, and Turkey — picked up on this multipolar world between international and local brands, noting that local brands are increasingly gaining market share typically enjoyed by Western multinationals.
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Global Passports and the Dilution of Citizenship | OPINIONS
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OPINIONS
Global Talent Flows — Policies and Gatekeepers (Part 3) Sari Kerr, Senior Research Scientist, Wellesley Centers for Women, Wellesley College, US William Kerr, Professor of Business Administration, Harvard Business School, US Çağlar Özden, Lead Economist, World Bank Development Research Group, US Christopher Parsons, Assistant Professor of Economics, University of Western Australia This is part 3 of this opinion article. Part 2, featured in The Global Residence and Citizenship Review 4th Quarter 2017, discussed the drivers and consequences of skilled migration.
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the phrase ‘national suicide’ to characterize the current US restrictions on skilled inflows. More broadly, fostering and strengthening skilled immigration is often a prominent pillar in the economic development strategies of countries. In the UN Department of Economic and Social Affairs’ World Population Policies 2013 report, 40% of countries reported policies to raise the immigration of highly skilled workers — a noteworthy increase from 22% in 2005.
wide array of factors lead countries to restrict migration, including political, cultural, and even philosophical motivations. One might question why highly skilled migration should ever be restricted, even Managing Skilled Migration Policy if there are justifications for broader regulations of lowa skilled flows. The primary economic arguments in favor There are two broad policy approaches used by countries to of restrictions on highly skilled select highly skilled individuals, migration center on possible although as we discuss later, most adverse wage and employment Advocates of greater skilled countries display elements of both. effects on skilled native workers, The first approach is points- or migration to the US have merit-based and is often referred as argued in Borjas and Doran (2012), Doran et al. (2014), and adopted the phrase ‘national to as supply-side migration policy, Bound et al. (2015a). Another since it focuses on screening indi suicide’ to characterize the vidual applicants for admission. argument is that governments may want to limit the volatility of second approach is an cur rent US restrictions on The migration flows that might employer-driven system. This is accompany and possibly amplify also described as demand-side skilled inflows the ups and downs of the cyclical migration policy, since it places labor markets, characterized by emphasis on firms selecting skilled technology booms and busts. Finally, national security workers to admit into the country. concerns are proposed as reasons to restrict the employment Canada and Australia are prominent examples of of highly skilled immigrants in certain key industries or with countries that implement points-based systems for skilled certain sensitive technologies. migration. These programs select individuals based upon Advocates for flexible migration policies for highly skilled their observable education, language skills, work labor alternatively point to how skilled immigrants can experience, and existing employment arrangements. Each benefit native workers through complementary skills, factor is weighted by a formula, and online calculators through the agglomeration effects generated by a dense often help migrants evaluate their characteristics to qualify cluster of skilled workers, or through the labor demand for a skilled work visa.1 In the Canadian example, migrants that results from immigrant entrepreneurship and need to collect 67 points across six categories. In terms of innovation. These views are as passionately held as those education, for example, 15 points are awarded for a one-year of proponents who argue against immigration, and many post-secondary diploma, trade certificate, or apprenticeship, advocates of greater skilled migration to the US have adopted compared with 25 for a doctorate degree. With regard to
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OPINIONS
work experience, six or more years of applicable experience receives 15 points, compared with 9 points for just one year of experience. The points-based approach offers an explicit statement of migration priorities for public debate, thereby generally leading to stable immigration processes over time. Yet it also has certain disadvantages. Establishing and adjusting an optimal weighting scheme over time is hard; multi-year queues for applicants are possible. The screening process needs to catch migrants who are exaggerating or mis representing their qualifications, and there is some scope for adverse selection if those with few other migration options are otherwise attracted. Talented migrants may also find themselves underemployed after their arrival due to a lack of demand for their skills, with the typical anecdote being a nuclear physicist who is driving a taxi due to a lack of better opportunities. It could be argued that the underemployed migrant is still better off, as revealed by their continued stay in the host country; however, this underemployment often indicates that the country did not realize the benefits of the migration it sought. There may be public-sector costs of the migration (for example, the schooling of children) that are not covered by the tax receipts generated, and employers may have preferred someone further back in the queue. The US is the most cited example of a country that uses an employer-driven program for highly skilled immigration, with the H-1B and L-1 visas as primary categories.b The H-1B visa allows US companies to temporarily employ skilled foreigners in ‘specialty occupations’ that demand the application of specialized knowledge, such as engineering or accounting. The visas are popular in part due to their dualintent feature, which allows for the firm to also petition for permanent residence on behalf of the worker. Virtually all H-1B holders have a bachelor’s degree or higher and about 70% of the visas in recent years have gone to science, technology, engineering, and mathematics (STEM)-related occupations. India is by far the largest source country, accounting for about two-thirds of H-1B recipients in recent years. Visas are valid for three years and can be renewed once. Since 2004, the cap on new visa issuances has been 85,000, with 20,000 of these reserved specifically for advanced degree holders. Inclusive of renewals, 117,000 H-1B visas were issued in fiscal year 2015 on a first-come, first-served basis. To protect domestic workers, firms are required to pay the visa holder the higher of the prevailing wage in the firm for the position and the prevailing wage for the occupation in the area of employment. The mean annual starting compensation for a new H-1B worker was USD 75,000 in 2014.2
Above: The US Citizenship and Immigration Services make provision for US citizens to petition for certain family members to be considered for a Green Card, a fiancé(e) visa, or a K-3/K-4 visa (specifically for spouses and their unmarried children who are under 21 years)
The L-1 visa allows the temporary migration of employees of an international company with offices in both the US and abroad. The migrant must have worked for the company abroad for at least one of the previous three years before coming to the US. The duration of these visas is set on a bilateral and reciprocal basis with foreign countries, with renewals and extensions allowing a maximum stay of seven years. The L-1 visa also allows dual-intent application for a Green Card. Inclusive of renewals, 75,000 L-1 visas were issued in fiscal year 2015. As a third category, O-1 visas for migrants with recognized extraordinary ability numbered about 9,000 for fiscal year 2015. There are no specific numerical limits for these categories. In employment-based regimes, labor markets, via employers, play a more direct role in determining the level and composition of skilled migration flows. A distinct advantage of this approach relative to the points-based approach is that employers choose whom they want and immigrants have a job upon arrival. This employer– employee match is guaranteed to connect immigrant talent with a productive and commensurate job. Perhaps the largest liability of a quota-based program is its inherent potential to limit employers in the productive uses that they can make of talented workers. If the quota is set too low and agglomeration economies are strong, constrained employers will not be able to hire the foreign talent they desire, and this will lower productivity growth and concomitant demand for native workers. In some years, including fiscal year 2016, applications for H-1B visas have outstripped the available annual quota within a couple of days of the opening of the process.
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Above: Hong Kong boasts one of the most expensive housing markets globally, with inner-city property prices increasing by 11% in 2017
driven criteria, and future research should further quantify the impacts of these policy design choices. Moreover, it’s important to remember that while there are important de jure differences in policies regarding highly skilled immigration, de facto differences in implementation or outcome may be much smaller. Many talented and motivated individuals often find their way to the countries they want to move to, even if it means marrying a local. Immigration systems are quite complex, with rules on admissions for temporary migration, selections for permanent residence, and ultimately citizenship pathways impacting skilled worker choices. The US, for example, gives priority to family-reunification rationales for obtaining permanent residence compared with employment-based objectives, making the US’ permanent residence policy tilted towards lower-skilled groups relative to that of other advanced countries. That said, temporary visas allow many skilled migrants into the US for work, who then queue for permanent residence and are allowed to stay in the country until their case is finalized. Moreover, the US derives advantages from the demand for highly skilled migration to the country. Hunt (2011) compares different US entry routes and finds subsequent productivity and innovativeness to be highest for those entering directly for work or advanced schooling categories. When it comes to talented foreigners, a number of countries not only remove restrictive visa regimes, but also implement recruiting programs. Chile has received a lot of attention for its Start-Up Chile program, which pays foreign entrepreneurs to spend six months in the country
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More broadly, the centrality of employers in this approach can lead to certain disadvantages. First, firms may use the program for purposes that are not in line with the intentions of the government. For example, US policymakers intended the H-1B program to be used by companies to find workers for specific high-skill jobs. Yet a large share of H-1B visas in the past decade have been granted to Indian outsourcing firms that have realized the program can be used to temporarily bring their workers from India to the US. This, however, was not the goal of the program. Independent of the impacts of outsourcing, this diversion makes it more likely the program will find itself constrained in terms of its original intent. Second, demand for visas under employer-driven programs can show high volatility. For example, the share of H-1B visas going to computerrelated occupations has fluctuated between 25% and 80% over the course of a few years during the last two decades. While this volatility signals the responsiveness of the program to underlying labor market conditions, one can also imagine negative consequences, such as taking the steam out of the job market for recent college graduates who have invested several years in a field of study that was hot earlier. Third, unlike points-based programs, the migrant in an employment-driven system is more tied to the sponsoring firm, at least for a period of time, and may be in a weak negotiating position — a modernday ‘indentured servant’. Overall, the features of the two systems do not yield a clear absolute winner, and most real-world regimes combine different features of points-based and employment-driven systems. Superstar talent rarely competes for H-1B visas, for example, but instead gains direct access to the US through O-1 temporary visas for extraordinary ability and direct Green Card applications of the EB-1 level for those with even more exceptional talent. Both of these categories are always in surplus. In effect, the US operates a pointsbased system for individuals with truly exceptional talents: for example, Nobel Prize winners, superstar athletes, and musicians.c Coming from the other direction, countries with points-based approaches have added weight to whether the applicant has a verified job and developed two-step processes that include points-based screening followed by sponsorship roles. Broadly speaking, it appears the overall shift is towards demand-driven systems and away from pure points-based programs,d thereby prioritizing migrants’ employability over a more flexible notion of human capital. In a rare cross-country comparison, Czaika and Parsons (2015) found evidence in favor of the efficiency of supply-
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OPINIONS
in an effort to build global skill connections and a mini-Chilean diaspora. Malaysia literally rolled out the red carpet at its airports in special lines as part of the Residence Pass-Talent program.e Canada has been very active in targeting skilled migrants who are denied or frustrated by the H-1B visa system in the US, even taking out ads on billboards in the US to attract such migrants. The impact of these recruiting programs depends upon perspective. Effective design can yield measurable growth from the perspective of an individual country, with Start-Up Chile, for example, now supporting 200–250 new ventures per year, and Chile having launched sister programs based upon the success of this first. The other perspective, however, is that these localized wins tend to be a drop in the bucket compared with the aggregate trends noted earlier, such as the steep concentration of highly skilled migration towards AngloSaxon countries. Finally, countries also differ in the degree to which they can realistically reform their migration structures.f Some smaller and nimbler countries, such as Singapore, can engage in ‘immigration engineering’, in which policies are recalibrated frequently based upon market conditions and public preferences. The US political structure, by contrast, seems to allow a once-in-a-decade type of reform to skilled migration policies. For example, H-1B reforms are often discussed, and economists frequently propose many alternatives (e.g. raise/ lower the cap, price/auction the visas, etc.) to raise efficiency. Yet the last major change was in the early 2000s, and the current annual visa caps were set in 2004, mainly because a number of leading political leaders have taken
the stance that H-1B reforms can only be considered in the context of comprehensive immigration reform.
Future Outlook Looking forward, we believe skilled migration and the integration of global labor markets for highly skilled occupations will continue their march forward. There are natural limits to these forces, but escalating real estate prices and highly skilled wages in key clusters such as London, New York, Hong Kong, and Silicon Valley indicate skilled migration won’t be waning anytime soon. It is sometimes suggested that video conferencing, online labor markets, and other uses of communications technology can mitigate the need for talent flows and physical proximity. The evidence thus far is to the contrary, instead emphasizing how these new tools complement global movements instead of substituting for them. While overall patterns will likely remain similar, different forms of highly skilled migration are likely to emerge and evolve. We expect that skilled migration will increasingly involve shorter durations and circular paths, for example, as opposed to oneway and long-duration experiences, due to greater global integration, lower transportation costs, and rising stan dards of living outside of traditional advanced economies. The highly skill ed members of the next generation appear to be less tied to any particular location or national identity, instead having mentalities and connections that are much more global in nature than those of their predecessors. Moreover, the culture and outlook of companies and other employers that employ global talent, such as univer sities and football clubs, are also
becoming more global as their work force is drawn from different corners of the world.3 Academics, business leaders, and policymakers have only just started to grapple with these implications. The most successful individuals, employers, and countries will be those that discern how to best navigate the current global labor markets and sidestep government-imposed limitations on highly skilled migration. This text is based on a working paper by Sari Pekkala, William Kerr, Cağlar Özden & Christopher Parsons, 2016. ‘Global Talent Flows’, Journal of Economic Perspectives, vol. 30(4), pages 83–106. Copyright permission: Ellen Lee, American Economic Association, 2014 Broadway, Suite 305, Nashville, TN 37023, US, 7 March 2017. Endnotes 1 For Canada, it is described at immigration.ca/index.php/en/whoqualifies-for-canadianimmigration-underthe-skilled-worker-program 2 Universities and colleges are the other important gatekeepers through their selection of individuals for the F-1 (student) or J-1 (exchange visitor) visas. Inclusive of renewals, 385,000 and 321,000 F-1 and J-1 visas were issued in fiscal year 2015, respectively. While these visas do not offer long-term employment, US firms often recruit graduates of US schools using visas such as the H-1B. In fiscal year 2014, 45% of new H-1B visas went to applicants already present in the US, which includes school-to-work transitions 3 Going back to the football example, Barcelona and Manchester United have 88 and 77 million members, respectively, in their Facebook fan clubs, significantly greater than the populations of their home cities (or even countries) References a For example, Clemens 2011 b Kerr et al. 2015a c Rosen 1981 d National Academies 2016 e Discussed in Del Carpio et al. 2015 f Papademetriou and Sumption 2013; National Academies 2016
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Technology, Identity, and Post-ownership: The Rise of Virtual Worlds Trevor Hardy, CEO, The Future Laboratory, UK
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t has often been said that we are living in a period of In a survey by the Red Cross in late 2016, half of UK unprecedented change and rapid acceleration. The adults reported feeling lonely at least sometimes, while references are invariably related to business. However, 18% said they experience loneliness always or often; the some of the most dramatic transformations are happening pace of life today often gets in the way of developing and in our personal and social lives: redefining family, nurturing meaningful relationships. According to the friendship, and even our notions of self. Modern Families Index 2016, parents in the UK are almost The era of the nuclear family — defined as a husband twice as likely (42%) to feel burnout compared with all and wife with one or more children — is approaching UK adults (22%), while more than a third of parents the end of its life cycle. Beginning in 2014, the number (38%) are willing to take a pay cut in exchange for a of Americans who described their status as ‘single’ more manageable lifestyle, compared with 28% of the reached a significant milestone, passing 50% for the first general population. time. While the nuclear family was a concept around For many families, living apart is increasingly a reality, which much of 20 th-century cultural, political, and and the link between locality and identity is waning as economic life was centered, the question now is: what consumers continue to pursue new, borderless lifestyles. A paradigm will replace it? “Your best friends are your 2016 survey by GlobeScan revealed that, for the first time family” has moved beyond a cliché in 15 years of tracking by the to a reality, and with the help of organization, nearly one in two In a survey by the Red people (49%) see themselves more technology and social media, the modern family no longer requires Cross in late 2016, half of as global citizens than as citizens of physical proximity to create their country. One indication that UK adults reported feeling this is affecting the ways in which strong, emotional bonds. Adults and children are now we conduct our relationships is the lonely at least sometimes beginning to explore the possibility increase in what demographers call t hat t hey m ig ht conduc t ‘living apart together’. Studies relationships not only via computers, but, in a very real estimate that 40% of US adults in dating relationships now sense, with them. Artificially intelligent systems are fast fall into this category. Many consumers are already familiar evolving beyond glorified user interfaces into entities with managing family life remotely. It’s just over a decade with which consumers are developing authentic, since Skype introduced the general public to the concept of emotionally indebted connections — they don’t only help video-calling your friends and relatives from your computer. run the family; they are now part of the family. By 2016, the company had hosted nearly 2 trillion minutes of As technology allows people to feel as though they are free video chat. “New forms of communication have opened part of a family despite being away from one; there are up enormous possibilities for families who have disruptive other factors driving the interest in setting up new homes work schedules, meaning the guy who lives in Canada is more abroad. One of these factors is that European and American likely to take that job in Kuwait because he can still video-call cities and suburban communities are increasingly difficult home several times a week,” explains Prof. Ross D. Parke in environments in which to grow old. his book Future Families: Diverse Forms, Rich Possibilities.
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Global Passports and the Dilution of Citizenship | OPINIONS
As the shine wears off Western life for many who dream of a more enriching existence in Eastern countries, and as technology enables them to have a rich family life despite being separated by time zones, another significant transformation is removing a final barrier to relocation: the sharing economy. Over the last 50 years, the attainment of success, achievement, and worth has been closely aligned to the acquisition or accumulation of ‘things’. Increasingly, people are realizing that having more stuff does not necessarily lead to more happiness, and that access over ownership is the new, admired paradigm. We used to say ‘you are what you eat’, and then this became ‘you are what you wear’. Now, the prevailing narrative is ‘you are what you share’. This is also a new signifier of a good life, as people more commonly gravitate to learning and experiences instead of mindless consumerism. In our recent research among luxury consumers globally, there has been a growing shift in the motivations behind shopping for luxury goods. A decade ago, the major motivation was to show one’s discernment and worth through the acquisition or possession of goods. Today,
people are motivated by transformation or experiences — specifically, products or services that enrich lives or help people do or become something new. A final and significant driver of people’s new openness to and interest in considering and purchasing an additional home away from their primary residence is the changing nature of identity. Identity used to be something that was fixed; we decided who we were when we reached adulthood and we generally stuck to that definition for the entirety of our lives. Today, however, identity is fluid; it can be assembled, reassembled, and redefined contextually. Today, many people are letting go of the idea that they are ‘from’ one place, and are rather embracing the concept of being people of the world. These ‘borderless citizens’ comprise a significant and growing universe of indivi duals who have open minds, are eager to learn and experience, and recognize that a better, more fulfilling life may be waiting for those who are willing to stretch their definition of family, home, and relationships, prompting them to explore a more enlightened purpose.
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OPINIONS
Head Office Status in St. Lucia
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ince the launch of St. Lucia’s Citizenship by Investment Program in January 2016, St. Lucia has continued to invest in the program and make changes that ensure the jurisdiction remains dynamic, responsive to market needs, and proactive — all with the aim of ensuring the attractive Caribbean island remains a great place to live and do business. One of the exciting and complementary initiatives within the international financial services space is the introduction of the Head Office concept for international business companies registered in St. Lucia. This initiative is designed to attract conglomerates and firms involved in international business services (including international law firms and accounting firms) to use St. Lucia for their regional or international business. Obtaining Head Office status requires, among other things: • at least 10 employees • a presence locally, either with leased (two years minimum) or owned premises • business conducted in other countries and grants the company the following benefits: • lower cost of doing business (relative to other international centers) • favorable income tax rates and benefits, including for the importation of inputs in the future • work permits for all international employees • tax-free salaries for all employees, international and local employees alike
Digicel (telecommunications) and the employment of over 150 employees associated with this initiative. St. Lucia has always been a niche center for companies operating within the region and utilizing the Caribbean Community (CARICOM) tax treaty, and this initiative serves to strengthen this positioning.
Head Office status is designed to attract companies and top talent that would otherwise pursue traditional international financial centers, and also to drive the consumption of goods and services, and thus expansion, within the local economy. This initiative has led to multiple successful applications, including, most significantly, the use of St. Lucia as a regional hub for
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Ryan Devaux, Chairman, Citizenship by Investment Board St. Lucia
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As an example of the dynamism and ongoing initiatives to ensure competitiveness, the Head Office concept is already being enhanced to cater to businesses and individuals that wish to take advantage of the benefits St. Lucia has to offer. These enhancements are designed to attract businesses in the international services space, including asset management services, trust and fund administration, and family offices. In terms of the quality of infrastructure, St. Lucia has two airports with daily connectivity to many major international trading centers — including London, New York, Atlanta, Miami, Toronto, and Caribbean markets — as well as two major seaports with a significant cruise ship industry, world-class marina facilities, and excellent telecommunications and internet connectivity. All of this, combined with a well-educated labor force — the largest labor force in the Eastern Caribbean — makes for a compelling reason to consider St. Lucia for citizenship, residence, and business needs.
St. Lucia remains open and keen to attract global citizens, investors, and companies that appreciate the quality of our jurisdiction and who wish to partner with us in growing together. There are many interesting areas for investment, and we invite you to come and explore. Invest Saint Lucia,a the statutory body responsible for facilitating inbound investment and the investment process, has also been increasing its capacity, and it too, as a partner agency, remains available to guide new investors wishing to explore what St. Lucia has to offer. The next move is yours — we look forward to welcoming you to St. Lucia. Reference a investstlucia.com Below: St. Lucia offers one of the most attractive citizenshipby-investment programs in the Caribbean, which has been enhanced by the business-friendly Head Office concept
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Key Steps to Ensure Your Business Meets its Performance and Profitability Potential Chris Roebuck, Visiting Professor of Transformational Leadership, Cass Business School, UK
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he financial services sector is dedicated to to do their job. For example, time-management benchmarking organizational performance, and capabilities are often lacking. With leaders, this is even this information is critical to us as individuals, worse. I consistently find that less than 30% of leaders be it for our own careers or as investors. Seemingly have been taught how to delegate effectively, something small annual differences can have a significant impact they must do every day. Unless this fundamental skill on the performance of our investments and pensions in is in place, organizations can’t possibly reach their the long term. full potential. Our current expectations of what organizations should Encourage People to Give Their Best be delivering are less than they should be. Today, most organizations, large or small, are performing significantly Having skills and knowledge is not enough to maximize under their potential. Financial performance: people must be experts, CEOs, and executive teams inspired and motivated by their fail to see this, and consequently fail Today, most organiza leaders to give their best. Employees to address it. It does not help that poor must care about producing the best tions, large or small, are outcome — what I call ‘care’ performance has become somewhat common and hence acceptable. performing significantly leadership. We all know from our Nonetheless, this problem can be own experiences what encourages under their potential solved at minimal cost, using us to give our best effort on a dayknowledge that organizations already to-day basis. But strangely, under have at their disposal. the pressure to ‘get the job done’, Poor performance is primarily driven by the ineffective leaders often fail to give their people meaningful inspiration implementation of tasks and strategies. The number of and motivation, hence the avoidable under-performance. initiatives or actions that are fully and successfully Evidence suggests that less than 20% of staff in most implemented in most organizations is only about 20–30%. organizations are giving their best performance. Roughly Put simply, organizations have to do three things to 70% ‘just do the job’, giving minimal effort, while 10% reach their potential: actually negatively impact on colleagues. The 70% who 1. Ensure that everyone can do the job by putting in just do the job could potentially give the organization place the right skills and knowledge 30% more ‘discretionary’ effort if they wanted to. If 2. Ensure that everyone wants to do the job and gives that 70% performed even only 15% better, organizational their best using their skills and knowledge performance would totally transform, and quickly. 3. Focus these skills and knowledge on what delivers Making this transformation is surprisingly easy. I have success for the organization proactively asked leaders around the world what made them give super performance for the best boss they ever Ensure that Everyone Can Do the Job had; the answers are consistent globally, irrespective of Consistently, evidence shows a that majority of employees culture, sector, or level in an organization. They were do not have the full suite of required skills or knowledge simple day-to-day actions, such as “[my boss] ‘asked me
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for my ideas’, ‘listened to me’, ‘developed me’, ‘let me get on with the job’, ‘treated me fairly and with respect’, ‘showed they cared about me’, ‘supported me’, and ‘trusted me’”. If you personally reflect on the best boss you’ve ever had — what they did and how much they inspired you — you will understand exactly how this works. All these actions cost the organization nothing, and can be immediately and frequently implemented. The two impactful steps discussed so far unleash the power of human neuroscience to produce positive responses that cause people to genuinely care about the outcome, the team, and the organization. The uplift in performance is significant: fair and accurate feedback can increase employee effort by up to 39%, and telling people how what they do fits into the bigger picture by 35%. In fact, if line mangers just show they care about people, this would likely increase effort by 26%. If this effort is made by all leaders across an organiza tion, they could increase the chance of outperforming competitors by nearly 70%, increase revenues by up to 40%, halve days lost through sickness, increase earnings per share by up to 2.6 times, reduce the risk of loss of talent by 87%, and help in managing reputational risk. In one construction company I worked with and implemented the above actions in, those happy to recommend the company to friends or family as a great place to work more than doubled, from 40% to 83%, in just two years. Essentially, it is about inspiring people to want to do the job, not just telling them to do it: employees’ decision
to give high performance is 57% rational and 43% emotional. A case for simply doing the job sans emotional inspiration has half the potential for success. Further, line managers account for 80% of the emotional element and over 50% of the rational element, meaning all line managers have to be good at sparking inspiration in order to get the best from everyone, not just those managers at the top.
Focus on What Delivers Success Evidence suggests that failure to align operational activity accurately to strategic objectives could mean that 20% of operational activity is wasted. The solution is simple: regular team meetings and cascading of objectives ensure that everyone understands the ‘big picture’ and how they can align best to it; these are cost-effective but highly impactful techniques. If the above three key areas were focused on, potential improvements would not only impact your bottom line by 10–20%, but also improve customer service, implementation, innovation, brand building, cost efficiency, and even risk management. These measures boost all critical performance drivers in a sustainable way, and all of them are so simple. In fact, people already know how to implement them. They also cost nothing to implement and can be practiced as early as tomorrow. With this in mind, there is, in fact, no excuse for organizations not to reach their potential and quickly add 10% or more to their bottom line.
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Now is the Time to Protect Your Assets Felix W. Zulauf, Owner and President, Zulauf Assest Management AG, Switzerland
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side from a bumpy interim period that kicked off one hand, corporations in the emerging world that in 2000 and went on until the financial crisis in grabbed at the opportunity to produce for developed nations 2008, global investors have enjoyed a period of likely saw profit and were able to expand their operations; high returns over the last 35 years. The steady decline on the other hand, the biggest profits reaped were by of inflation and interest rates, and the corresponding multinational platform companies headquartered in the rise of equities, has benefitted investors greatly. It is industrialized world, which outsourced their production therefore understandable that optimism among investors and services to regions with much lower labor costs — is still high. However, while experts forecast that the somewhat of a win for all, although shareholders and favorable economic pace will continue and equities will investors in such companies have been the biggest winners. remain the only game in town, Such companies were able to important structural changes are increase their profit margins at work in the political arena, Globalization has heralded sharply; the rising profit of Apple which may come to punish those is only one such example, but there tremendous benefits for in are many more. with such a complacent view. Globalization has heralded Losers in globalization include vest o rs and the new middle tremendous benefits for investors the middle class in indust rialized and the new middle class in the class in the emerging world; economies. Access to cheaper emerging world; however, these labor elsewhere has invalidated however, these benefits are many jobs and opportunities in benefits are now diminishing. In theory, globalization supports these nations, pushing the real now diminishing those who are able to produce income and savings of these goods cheaper and better, and citizens down sign ificantly. In exchange these via international trade with others who many cases, savings simply evaporated due to the extreme simila rly produce goods better and cheaper. In this way, monetary policy pursued by leading central banks, driving products traded internationally should become more interest rates to historically low levels — in some cases affordable, benefitting cons um ers. Unfortunately, what even below 0%. works in theory does not always do so in practice. Globalization, combined with excessive policies, has For the newly developing middle class in the emerging divided the world even more sharply into the ‘haves’ and world, globalization over the last 30 years has been a big ‘have-nots’: the latter have had to live off declining real boost, as production and jobs have moved from high- to income, while the former have enjoyed rising values of low-labor-cost countries, improving employment rates real estate, fixed income, equities, and assets such as art. in the latter. This middle class is now consuming a variety The rift between these two classes in the industrialized of products and services, and supporting local economies world has widened considerably over the years. as well as those of their nations’ trading partners. In Europe, the situation is even worse as the region Globalization has also boosted the corporate sector in tries to develop a ‘Greater Europe’. While the idea of both emerging and developed worlds. For example, on the European cooperation is valid, the push for this Greater
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Europe formation faltered at the introduction of the euro; a monetary union of structurally, culturally, and politically different nations is a bad idea. While the intention was commendable, such a monetary union then has to rebalance the resulting economic imbalances by transferring payments.
As a result, the centralization of the Eurozone is the logical outcome. Centralization leads to socialism, which in turn reduces the prosperity of a chunk of people and diminishes their individual freedom. In addition, combined with mass migration to Europe — which reached a peak in 2015 but continues to dominate political discussion throughout the region — a situation is created that threatens to backfire against the political and economic establishment. Upholders of the establishment have been happy and enjoyed asset inflation; they even believed their policies were working well. However, they forgot that frustrated and disadvantaged citizens have votes. It was a wake-up call when voters began to send clear messages via the ballot. What followed was Brexit, Trump, and the beginning of the pulverization of the political landscape. In most European nations, there are now more parties in parliament than ever before in modern history. After parliamentary elections in the Netherlands in March 2017, it took a record 209 days to form a government, which finally was a coalition of four different parties that have little in common and only one vote more than all others combined. Fragmented parliaments result in weaker govern ments that cannot initiate the necessary but painful restructurings required. This is a political backlash against the policies pursued in the past two decades. Constituencies want change. They want their own political leaders to work for their interests and not the interests of people in and from other nations. The result is rising nationalism, socialism, and protectionism. These, over time, lead to unpleasant results. It is without a doubt that all these trends will dampen the productivity and profitability of the corporate sector. The large build-up of debt in the world economy — far above the levels of 2007 that triggered the financial crisis — is disconcerting. Less globalization will, at the margin, increase inflation. At some point, central banks must withdraw their excessive monetary support, which could prompt another unpleasant adjustment process in the real and financial economy. Whenever the next recession hits, all the sins built up over previous years will surface; leverage works both ways — up and down. A bull market typically induces delirium before it crashes: it feels best shortly before the painful end. The easy money of this cycle is behind us. It is now time for investors to initiate preparation to protect their assets against a potential decline, as leaving it too late could prove costly.
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COVER STORY
Safe Harbor: Investment Migration Through the Looking Glass
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“
ad weather always looks worse through a window,” mused Tom Lehrer, mathematician, musician, and satirist. But while a window reveals the outside world, it also shelters us from it, setting up a contrast of states that can heighten fear and polarize understanding. In today’s world, where the internet is a window to every corner of the world stage, we find ourselves perpetually gazing out at stormy weather that threatens to batter down
our safety structures. Like Alice poised at the looking glass, should we dare to step through, we encounter nonsensical jabberwockies, political wordplay, and the ‘rules’ of the global chess game — a game in which most players are pawns, able to see only one step ahead at a time. In chess, even kings have limited mobility on the board; instead, it is those with the greatest freedom of movement who are the safest and who have the most power to effect change.
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Hurricanes, political turbulence, and tempests of defamatory tweets rippling through cyberspace — where can one go to find safe harbor? To weather the myriad storms around them, countries in the Caribbean have turned to investment migration as a means of economic resilience and fortification in these uncertain times.
COVER STORY
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Global Passports and the Dilution of Citizenship | OPINIONS
Should one find oneself on the other side of the glass, then there is no denying that hurricanes, such as those that devastated a number of Caribbean islands in September last year, are the worst kind of weather events. Antigua and Barbuda, Dominica, and the British Virgin Islands were among the hardest hit: over 250 people were killed, almost 90% of buildings were damaged or destroyed, and transportation, communication, water, and energy infrastructure was upended. Barbuda was completely evacuated, and the costs of damages on the island amounted to an estimated USD 150 million. His Royal Highness the Prince of Wales and Penny Mordaunt, Secretary of State for International Development, visited the three island nations in November 2017 to meet local community members and show solidarity with the beleaguered Caribbean region. By December, the UK had committed GBP 92 million in relief funds to the region. The British Government has been criticized for not doing enough, though. After meeting with Antigua and Barbuda Prime Minister Gaston Browne, UK opposition leader Jeremy Corbyn said, “The UK must provide the help Barbuda needs to rebuild now and for the long term. And we must face up to the reality of climate change and the impact it is having around the world, particularly on small island states.” Shadow Home Secretary Diane Abbott added, “Simple aid packages and building projects are not good enough. Those Caribbean islands most affected need support in creating sustainable defenses and structures against the hurricanes to come.” Small island developing states (SIDS), including those in the Caribbean community, are increasingly bearing the brunt of climate change, and the need to develop resilience is more urgent than ever. Because SIDS have relatively small-scale economies, storm-related losses can amount to 1–9% of the total GDP, gobbling up much-needed funds for reconstruction and development in education, health, and infrastructure as well as for general disaster preparedness and prevention. According to the Development Co-operation Directorate of the Organisation of Economic Cooperation and Development (OECD), Grenada is still suffering the financial consequences of Hurricanes Ivan (2004) and Emily (2005) — hardly surprising, given that losses totaled approximately 200% of the nation’s GDP. SIDS have in common vulnerability to natural disasters, narrow economies, distance from major markets, limited borrowing opportunities, small or unstable domestic revenues, and limited physical resources and space.
However, 15 of the world’s 50 largest exclusive eco nomic zones (EEZs) are under the guardianship of SIDS, and together with SIDS make up almost 20% of UN membership. Given their collective economic and political influence, SIDS have begun characterizing themselves as ‘large ocean states’, a term that expands the current deficitbased model into a strength-based one. The UN Conference on Trade and Development’s Sustainable Development Goal 14.7 for 2030 is to “increase the economic benefits to SIDS…[through] the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture, and tourism”. Aside from the sustainable use of marine resources and revenue from primary industry and tourism, there is another source of income that many Caribbean states are embracing: residence- and citizenship-by-investment. More than 80 countries around the world now offer
Opposite page: In September 2017, the Caribbean was hit by two devastating hurricanes, Irma and Maria. According to the UN Office for the Coordination of Humanitarian Affairs, Hurricane Irma was “the most powerful ever recorded over the Atlantic”, reaching winds of 296 km/h Above: His Royal Highness the Prince of Wales on a visit to Pointe Michel, Dominica, during his three-day post-hurricane tour of Dominica, Antigua and Barbuda, and the British Virgin Islands
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COVER STORY
St. Kitts and Nevis
18%
Dominica
Cyprus
4%
Grenada
2%
Malta
12% 9%
Antigua and Barbuda
27%
Above: Citizenship-by-investment inflows as share of nominal GDP (Source: Investment Migration Insider, July 2017. Figures for St. Lucia were not available.)
residence or citizenship rights to foreign investors in one way or another, and the Caribbean region is a major hub of investment migration activity. The story of Antigua and Barbuda is illustrative of the industry’s transformative capacity. The Government of Antigua and Barbuda began developing its Citizenship by Investment Program (CIP) in 2013 in an attempt to rebuild an economy battered by the financial crisis of 2008. CIP receipts currently account for 20% of the nation’s GDP, and Prime Minister Browne said recently that the government anticipates that this figure will grow to 25%. According to International Monetary Fund research, Antigua and Barbuda’s economy grows by 1% for every 25 applicants who opt for the real estate route of the CIP. In 2016, there were 47 such applicants, meaning the real estate route alone increased the nation’s GDP by nearly 2%. Because investor migration programs attract substantial foreign investment, the program landscape is becoming competitive. While the increased competition incentivizes governments to keep their application processes as streamlined and efficient as possible, it also opens the door for a ‘price war’, the likes of which we are beginning to see in the Caribbean. An industry price floor has yet to be established, and following the September 2017 hurricanes, a number of Caribbean countries lowered their minimum capital requirements significantly. St Kitts and Nevis introduced a new investment option, the Hurricane Relief Fund, which has a minimum contribution amount of USD 150,000 (down from the previous program minimum of USD 250,000); Antigua and Barbuda, meanwhile, reduced the minimum contribution to its National Development Fund to USD 100,000 (down from the previous minimum of USD 150,000). Both offers are
available for a limited period only, which increases their competitiveness and appeal. In addition to competitive pricing, countries can differentiate themselves through the strength of their passports and the level of visa-free access they can offer potential applicants. Between 2009 and 2015, Antigua and Barbuda, the Bahamas, Barbados, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago all signed short-stay visa-waiver agreements with the EU, allowing nationals of these countries to travel without a visa to the Schengen Area, and reconfiguring the historically hierarchical relationship between Europe and the Caribbean. The investment migration industry is often viewed through a cloud of misunderstanding and controversy, linked mostly to the perceived ‘commodification’ of citizenship. The significant economic benefits that programs can have for receiving countries are regularly discounted and overlooked. Nonetheless, the burden still lies with these receiving countries to maintain the integrity, transparency, and reputation of their programs. In the Caribbean, the recently formed Citizenship by Investment Programmes Association (CIPA), headed by St. Kitts and Nevis’s Les Khan, aims to drive up standards in the industry and establish stronger regulatory frameworks. One measure being implemented is a rejection-sharing mechanism, whereby candidates who are rejected from one Caribbean program for due diligence reasons cannot apply to another program in the region. There has also been a growing push among Caribbean leaders to move away from pricing as the primary basis of competition. At the Investment Immigration Summit East Asia, held late last year in Hong Kong, the Prime Minister of the Commonwealth of Dominica, Roosevelt Skerrit, encouraged his peers in his opening address to consider the sustainability of the industry when setting their program prices: “What I would like to see though, for the long-term benefit of the program, is for there to be a base price for all the categories within our programs based on a gentlemen’s agreement, [and] that we shouldn’t go below a particular price point.” Dr. James Canton, CEO and chairman of the Institute for Global Futures, has earned the titles ‘Digital Guru’ and ‘Dr. Future’ from CNN and Yahoo, respectively, for his insights into the major trends that are shaping the 21st century. Canton stresses that to achieve the state he calls ‘futurereadiness’, countries need to build ‘predictive awareness’. However, he is equally convinced that trend-watching,
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COVER STORY
IMAGES: Shutterstock; Mike Copploa/Getty Images
Above: The UN Conference on Trade and Development has identified fisheries, aquaculture, and tourism as being potential sources of economic benefit that SIDS countries in the Caribbean can explore
analysis, and hedging against loss and adversity are not in and of themselves enough. Rather, leaders need to be proactive in building systems that will ensure their continued viability in what is poised to be an ‘extreme future’. In the investment migration space, the call for futurereadiness is already inspiring innovation. Certain countries are challenging traditional program parameters by considering payment via non-traditional currencies, including cryptocurrencies. St. Lucia in the Caribbean now accepts foreign currencies such as euro and yen and is contemplating adding Bitcoin to the equation. The looking glass reveals the storms that rage around us and reflects our greatest fears and vulnerabilities back to us, but it also doubles as a telescopic lens that allows us to see further. As we cast an eye over the current geopolitical, economic, and opportunity landscape, we might, if we are imaginative and bold enough, glimpse a safe harbor and glimmering future that lies past the uncertain terrain and stormy weather. By investing in ‘future-readiness’, we will have the means not only to endure, but also to break free.
Above: Digital guru Dr. James Canton is a business and government advisor on future trends and how to develop predictive awareness, which he believes positions entities to better navigate turbulence
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Above: British-built Nelson’s Dockyard, which was developed in the 18th century as a safe haven for passer-by yachts seeking to avoid hurricanes, is today a UNESCO World Heritage Site
Antigua and Barbuda
A Prime Choice for Second Citizenship
L
ocated in the Leeward Islands group of the Lesser Antilles, between the Atlantic Ocean and the Caribbean Sea, the twin-island nation of Antigua and Barbuda comes close to many people’s idea of paradise. This tropical utopia is home to almost 90,000 people, the vast majority of whom live on Antigua. Antigua and Barbuda’s economy is service oriented, based on the financial services sector and high-end tourism, which accounts for about 60% of the country’s GDP. The twin-island nation’s modest size meant that the global financial crisis of 2008 affected it significantly.
A drop-off in visitor numbers from its largest source markets, including the US, UK, and Canada, coupled with a decline in overseas investment in the tourism sector, led to a recession shortly thereafter, lasting up until 2011. Under the leadership of Prime Minister Gaston Browne, who took office in June 2014, Antigua and Barbuda has staged an impressive turnaround in its fortunes. By the end of October 2015, the Browne administration had secured over USD 3 billion in foreign direct investment commitments, destined for major hotel projects and the redevelopment of the port in the capital, St. John’s.
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IMAGE: Shutterstock
Charmaine Quinland-Donovan, CEO, Citizenship by Investment Unit, Antigua and Barbuda
IMAGE: Shutterstock
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willing to make a financial commitment to the country’s future. Applicants must be over 18 years of age and submit to thorough background verification processes. The only residence stipulation is that new citizens spend at least five days on Antigua or Barbuda in the five years following the granting of citizenship. The program offers three options through which to acquire citizenship:1 1. National Development Fund • Single applicant or a family of four or less: USD 100,000 contribution • Family of five or more: USD 125,000 contribution 2. Real estate investment • USD 400,000 minimum investment 3. Investment in business • Single investor: USD 1.5 million • Two or more investors: USD 5 million (each at least USD 400,000)
Antigua and Barbuda has also sought to attract high net worth individuals (HNWIs) to the nation via its citizenship-by-investment program. The Antigua and Barbuda Citizenship by Investment Act was passed in April 2013 and gave jurisdiction to the Citizenship by Investment Unit (CIU). The CIU was staffed in August that year and opened to the public shortly thereafter. Through the unit, the country received its first application in November 2013, with the first citizenship granted in February 2014. Managed by a dedicated team of professionals, the CIU is the authority responsible for processing all applications submitted for the citizenship-by-investment program, issuing all agent licenses as well as approving authorized representatives, projects, and business investments. In only four years, the Antigua and Barbuda Citizenship-by-Investment Program has grown in leaps and bounds. Due to the program’s high level of transparency, efficient processing time, and robust due diligence process, in 2017 global leaders in residence and citizenship planning Henley & Partners ranked Antigua and Barbuda as the Caribbean’s best citizenshipby-investment program destination. Antigua and Barbuda’s Citizenship-by-Investment Program offers all the benefits of being Antiguan to those
In addition to visa-free travel to 140 countries, including the UK, Singapore, and the EU’s Schengen states, eligible citizenship-by-investment investors have the right to reside permanently on the islands. If Antigua and Barbuda was not enticing enough a place already, the recent elimination of personal income tax at the end of 2017 makes it an even more attractive prospect. As of June 2017, the CIU has processed over 1,200 applications, resulting in more than 2,500 citizenships being granted and more than USD 200 million dollars flowing into the economy. Socially, as a result of the program, it is expected that the economic fortunes of normal Antiguans and Barbudans will improve, and environmentally, the economic boost has allowed for eco-responsible projects such as solar energy and reverse osmosis to be developed. According to Prime Minister Browne, the government has committed USD 100 million Eastern Caribbean Dollars towards green energy. By the end of 2017, Antigua and Barbuda will have approximately 18 megawatts of green energy, which will surpass its 20% target. Prime Minister Browne believes that within the next 10 years, at least 50% of the country’s energy consumption will come from green energy. In addition to green energy, informatics is one of the areas the country is pursuing earnestly, to ensure optimal utilization of its intellectual capital. It is also anticipated that the revenue flows from the citizenship-by-investment program will foster cottage industries such as agro-
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processing, improve the agricultural sector, and support the creation of new industries in order to ensure diversification of the economy. The Government of Antigua and Barbuda is critically aware of the importance of the citizenship-by-investment program for the economy of the country and of the need to be responsive to market demands in order to maintain competitive advantage. In light of this, in August 2017, processing fees for citizenship-by-investment program applications were reduced. In early September, the world was taken aback by the distressing images of hurricane destruction in the Caribbean as Category 5 storm Irma tore through the region. Antigua, the larger and more populous of the twin-island nation, was not adversely affected by the passing of this major storm and was open for business the next day. This was indeed fortunate, as 95% of Antigua and Barbuda’s tourism infrastructure and investment opportunities are on Antigua. Barbuda, unfortunately, was completely destroyed, and residents were evacuated to Antigua. The government has undertaken the task of mobilizing domestic and international resources to restore Barbuda to its former pristine glory. To this end, Prime Minister Browne made a passionate appeal to the global community at the 72nd UN General Assembly.
In light of the daunting rebuilding process, estimated at USD 200 million, the Government of Antigua and Barbuda reduced the contribution requirement to the National Development Fund to USD 100,000 for a single applicant or a family of four or fewer and USD 125,000 for a family of five or more. This 12-month limited time offer was made effective on 1 November 2017.
Extracted from the National Statement by the Hon. Dr. Gaston A. Browne, Prime Minister of Antigua and Barbuda, at the 72nd UN General Assembly, US Thursday, 21 September 2017
human history. The island of Barbuda was decimated: its entire population left homeless, and its buildings reduced to empty shells. Mr. President, I have come to this assembly because I consider it to be of utmost importance to speak to the world’s representatives collectively about my country’s experience and the huge challenges faced by the Caribbean islands. Barbuda and its inhabitants were among the worst affected in the region by Hurricane Irma. Barbuda is 62 mi 2 . When Irma thundered over the island, it was 375 mi wide, with gale force winds of 220 mph. Barbuda did not stand the faintest chance against such size, such ferocity and intensity. The island was destroyed, and my government was compelled to evacuate all its inhabitants to Antigua. For the first time in over 300 years, there is now no permanent resident on Barbuda. The footprints of an entire civilization have been emasculated by the brutality and magnitude of Irma. Everything that meant anything to the inhabitants had to be left behind — their homes,
Above: Visitors to Antigua and Barbuda’s beaches will be delighted to find stretches of white sand and sparkling turquoise waters
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“On Wednesday, 6 September 2017, my small, two-island state, Antigua and Barbuda, was the victim of Hurricane Irma, the largest storm ever endured in the Atlantic in
Endnote 1 All options are subject to processing, due diligence, and passport fees. For more information, visit cip.gov.ag or henleyglobal.com
IMAGES: Shutterstock
COUNTRY REVIEW
IMAGES: Shutterstock
IMAGE: Supplied
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Top 3 Reasons for Choosing Antigua and Barbuda as a Second Nationality 1. Visa-free access to the most sought-after countries The Antiguan and Barbudan passport is considered among the most globally mobile passports in the world, offering visa-free access to 135 countries. The country is an independent Commonwealth state. Barbuda is a member of the UN, the British Commonwealth, the Caribbean Community (CARICOM), and the Organization of American States (OAS), among many other international organizations.
Above: The capital of Antigua and Barbuda, St. John’s, at dusk. St. John’s is the largest city and commercial center of Antigua and Barbuda, and has a population of approximately 22,000
their possessions, their history; indeed, everything that defines them as a society and as a people. Overnight, Antigua’s population increased by almost 3%. Naturally, the residents of Barbuda are anxious to return to their homeland, but, as I speak to you, the island remains unfit for human habitation. There is no electricity, no potable water, and 95% of buildings have been destroyed or severely damaged. Preliminary estimates have placed the cost of rebuilding Barbuda at about USD 250 million. That figure, Mr. President, represents at least 15% of my country’s GDP of approximately USD 1.5 billion. It is simply a stretch beyond our reach. Antigua and Barbuda urgently requires the assistance of the international community, including international development and finance institutions, to accomplish this vital task of rebuilding Barbuda. Even as my government and people look forward to the assistance of the better-off nations of the world, I thank those nations and persons who were the first responders, particularly the government and people of
2. An internationally respected program A strong, multi-tiered due diligence process ensures that the Antigua and Barbuda citizenship-byinvestment program is trusted and respected globally. The program does not consider applicants from countries on the Restricted Countries List unless they live outside of their country of nationality and have permanent residence status in Canada, the UK, the US, Australia, Saudi Arabia, and the UAE. Applications are thoroughly scrutinized and new citizens have to visit Antigua and Barbuda for five days within five years of gaining a passport to secure permanent citizenship. 3. A solid and growing economy Antigua and Barbuda is developing a reputation as the economic powerhouse of the Eastern Caribbean. The twin-island nation is home to the most modern and well-connected airport in the region, the VC Bird International Airport, which enjoys direct flights to Europe, the Americas, and the UK while serving as a key hub for regional flights. Tourism is the key driver of the economy, and citizenship-by-investment-funded real estate projects are helping build an internationally competitive tourism sector.
the Bolivarian Republic of Venezuela, who went beyond the call of duty to assist. I also acknowledge the commitment and contribution from the government and people of the People’s Republic of China, and the governments of Cuba, United Arab Emirates, Qatar, Canada, Dominican Republic, and sister states of the Caribbean community, who gave generously from the little they have. That includes Dominica, which, through one wretched night, lost a significant number of precious lives and years of hardearned development at the unrelenting battering of Hurricane Maria. Whatever position on climate change a nation takes, the evidence of global warming is now irrefutable: two Category 5 hurricanes within 12 days that unrelentingly pounded so many countries can no longer be dismissed as ‘the vagaries of the weather’, nor can they be explained as ‘nature’s doing’. As citizens of planet Earth, let us acknowledge our common humanity and work in harmony to make our world a better place.”
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Antigua and Barbuda One of the Caribbean’s most prosperous nations, Antigua and Barbuda offers more than just pristine beaches and azure waters.
Country Information
Languages
Currency
Economy
Population
English, Antiguan Creole
Eastern Caribbean Dollar
Tourism-dominant market
94,731 (2017)
Antigua and Barbuda is made up of its two namesake islands and several smaller islets. The islands cover a total surface area of 442 km 2 and are known for reef-lined beaches that stretch for miles, lush rainforests, and luxury resorts. The country is one of the most powerful and stable Caribbean economies.
Barbuda
Saint John’s
Antigua
Lifestyle and Leisure With its picturesque islands indented with lagoons, natural harbors, and hundreds of idyllic beaches, and its tropical climate and lush forests, Antigua and Barbuda is considered one of the most beautiful places in the world.
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Global Presence Antigua and Barbuda is a member of the UN, Caribbean Community (CARICOM), the Organization of American States (OAS), and the British Commonwealth. More than 44% of its population is made up of foreign nationals.
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Tax residence status in Antigua and Barbuda provides significant tax exemptions
Zero restriction on the repatriation of profits and imported capital
Zero personal income tax on worldwide income
Zero estate, death, inheritance, or capital gains tax
Quality of Nationality Index
27
Henley & Partners – Kochenov Quality of Nationality Index 2nd Edition
62
Human Development Index
71
2015 Notre Dame Global Adaptation Index
• Individuals who are in the country temporarily will only be taxed on income arising in or derived from Antigua and Barbuda • Property tax is levied on all properties
Henley Passport Index
The island’s main sources of employment are the tourism and government service industries, with tourism accounting for more than half of the country’s GDP.
2018 Henley Passport Index
43
Travel Freedom Ranking Henley & Partners – Kochenov Quality of Nationality Index 2nd Edition
2016 Human Development Index
ND-GAIN Country Index
• Individuals who have permanent residence in Antigua and Barbuda, or who are present for at least 183 days a year, qualify as residents
Economy and Markets
Country Rankings
56
Tax Benefits
45
Settlement Freedom Ranking
Exports USD 60.5 million UK, US, Spain, Canada and Barbados
Imports USD 413 million
Poland, the Netherlands US, Singapore, and China (OEC, 2016)
Henley & Partners – Kochenov Quality of Nationality Index 2nd Edition
Well Connected An Antiguan passport provides holders with visa-free access to 140 countries including the UK, the countries of Europe’s Schengen Area, Singapore, and Hong Kong. The international airport in St. John’s provides excellent air links to North America and Europe.
Prime Real Estate The islands boast several of world-class luxury resorts. Interest in the country’s citizenship program has resulted in the upgrading and construction of several new multimillion-dollar resort developments, such as the private Nonsuch Bay Resort.
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Interview
Shaun Rein The Founder and Managing Director of the China Market Research Group, and renowned author, shares his insights into China REVIEW: You are recognized as one of the world’s thought leaders on Chinese statecraft, innovation, and consumer trends. What drew you to study China originally, and what is it about China that fascinates you personally today? Shaun Rein (SR): I first arrived in China in the mid1990s. At the time, most Americans did not think it was possible that China could ever rival the US economically — President Clinton did not even visit China in his first term in office. Much of America was actually concerned about the rise of Japan. But when I met with political, military, and business elites in South Korea and the Philippines, they all told me they were concerned about
China’s rise, so I ended up studying Chinese in Tianjin, China. Instead of a backward, poor nation that was stifled by the Communist Party, I found an electric optimism in the country, with a population that generally supported the direction the central government was taking the country. As I traveled the countryside and big cities, I found the Chinese had a real can-do attitude, much like America in the post-World War II era; they felt that with enough hard work, the lives of their children could be better than their own.
REVIEW: In your latest book, The War for China’s Wallet: Profiting from the New World Order,* you build on a framework you have developed to categorize countries by their relationship with China as Hot, Warm, or Cold Partners. What are the key factors that position one as either hot, warm, or cold? SR: As China has risen, it has taken a more muscular approach to foreign policy. It uses economic carrots and sticks to gain power and to attain Beijing’s political goals. It is important that countries, and increasingly companies, understand that if they want to profit from China’s rise they must adhere to its political wants. If they do so, they will enjoy economic carrots. But the opposite is true for countries that do things politically that Beijing’s mandarins do not like. From the Philippines to Norway to South Korea, China uses its wallet and rallies its consumers to punish countries that cross it politically. As China is the world’s largest growth engine, countries and companies need to learn how not to run afoul of Beijing or else they will lose out economically.
translate into its policies on residence, citizenship, and migration at home and abroad? SR: As China’s economy matures, the easy moneymaking days are over. For many wealthy Chinese, this fact — combined with rampant pollution and a weak
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REVIEW: How does China’s carrot-and-stick strategy
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Global Passports and the Dilution of Citizenship | OPINIONS
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medical and education system — means many want to internationally, of citizens spending more time abroad? migrate abroad. Why deal with pollution when they SR: One of the big shifts that startles and surprises many have already made tens of millions and more? Moreover, Western brands is the increased trust of domestic Chinese China has become crazy expensive in terms of brands by Chinese consumers. For decades, people real estate. assumed that Chinese trusted foreign brands more and Wealthy Chinese typically are moving to Englishwould always aspire to a Western lifestyle. In 2011, for speaking nations such as the US, Canada, Australia, example, my company, The China Market Research Singapore, and New Zealand, which are all viewed Group (CMRG), interviewed 5,000 consumers in 15 as reasonably friendly to China and welcoming to cities and found that 85% of respondents said they would Chinese specifically. always trust a foreign brand over a domestic Chinese It is important to Chinese to have good access to brand. When we did the same survey in 2016, a whopping medical services and education for 60% of consumers said they their children — they also want a preferred domestic Chinese brands As China is the world’s over foreign brands. That is a passport that allows them to travel around the world easily. Too many shift in just a five-year time largest growth engine, drastic countries still have restrictions on frame and has resulted because Chinese tourists and business countries and companies ambitious, well-capitalized, and travelers, so Chinese want a aggressive brands such as dairyneed to learn how not makers Mengniu and Yili have passport that will enable them to travel around Europe and North to run afoul of Beijing fast moved up the value chain America freely. and focused on fostering trust or else they will lose out with consumers. REVIEW: You have observed that Going forward, I expect more economically international lifestyle and luxury Chinese brands will not just brands attract Chinese wallets even dominate the local Chinese market if the offering country is distrusted by the Chinese but also become global brands. Companies such as Oppo, government and consumers themselves. Which lifestyle Huawei, and Tencent will rival Apple and Facebook globally. factors in particular tend to win over Chinese consumers? SR: The hot trend among consumers is health and REVIEW: Business-wise, who or what inspires you, wellness. This really started to gain traction at the end and why? of 2013, when the pollution numbers in China were SR: I started CMRG when I was 27 years old and incredibly high. We always knew it was bad, but did not positioned the firm as higher end than McKinsey and realize that Beijing often had Air Quality Index days other global management consulting firms. People above 300. Many Chinese women, for example, told us thought I was crazy; 12 years later business is thriving, they no longer wanted to buy Louis Vuitton handbags. and we are increasing our market share against the ‘big As one told me: “Who cares if I can buy a Louis Vuitton boys’. We work with the world’s leading multinationals, bag if the water and air kill me?” From then, we started such as Apple, private equity firms such as Warburg to see Chinese getting more into athletics, hence brands Pincus, and fund investors such as Fidelity. such as Adidas are doing very well locally. Consumers I just turned 40 and am starting to think about leaving also started to spend more on good-quality food — behind a legacy. That is one reason why I like to write blueberries, Manuka honey, and kiwis all became prized books — I try to help people understand China better food products. Western brands that can tap into this and to appreciate it more. Going forward, I hope to do desire for wellness, and a more overall happy and healthy more with CMRG but also look at launching another lifestyle, should do well. business venture that will leave its mark on the world in a bigger way. Right now, it is all about having fun and REVIEW: Have you noticed any shift in consumer building a legacy. preferences in recent years, as the nation becomes more *For more on Shaun Rein’s The War for China’s Wallet: patriotic? What is the effect, either domestically or Profiting from the New World Order, see page 82.
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Above: The Investment Migration Council conducts specialized workshops and holds a successful annual conference, the Investment Migration Forum, at which members gather to network and engage on important industry matters
Advancing Investor Immigration and Citizenship
T
he investment migration industry has grown significantly over the past decade, as citizenshipby-investment and residence-by-investment has blossomed into a mutually attractive option for wealthy individuals and governments alike. However, despite its proven success, the concept of investment migration is still relatively new, and this innovative way of generating revenue has often raised concern and prompted opposition: residence- and citizenship-byinvestment programs have come under attack for allegedly ‘selling’ passports in a way that not only devalues citizenship but also threatens international security. In some instances, the concerns are justifiable. With the rapid growth of the industry, the need for a central, responsible body to coordinate investment migration became evident. In 2014, the worldwide
association for investment migration, the Investment Migration Council (IMC), was launched to bring together leading stakeholders in the field, and to give a voice to the industry. The IMC provides the industry with significant structure and accountability, while simultaneously improving public understanding of the issues faced by clients and governments in this area. The council’s main objective is to maintain the highest international level of best practice and professionalism in relation to residence- and citizenship-by-investment programs. In doing so, the IMC has established a Code of Ethics and Professional Conduct, which addresses matters of integrity, ethical practice, competence, objectivity, honesty, confidentiality, conflicts of interest, disciplinary rules, and procedure and regulatory compliance. This code was developed in collaboration
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Bruno L’ecuyer, CEO, Investment Migration Council, Switzerland
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Global Passports and the Dilution of Citizenship | OPINIONS
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with many academic and professional practice experts to provide an unbiased, sound industry framework. The IMC stresses the fact that without transparent systems, investment migration programs are not sustainable. Corrupt practices befoul the industry’s reputation; therefore, robust due diligence processes and vetting of applicants are imperative. To ensure that trust in the field is built and fostered, the IMC recommends that agencies are staffed by competent, educated personnel, and that competitor agencies make a collaborative effort to uphold the reputation of the industry. The IMC further warns that country programs should not be politicized — much of the unfavorable publicity related to programs stems from a perception that in a few countries, the investment migration regime is controlled by partisan political groups not accountable to the people through constitutional institutions.1 Another way in which the IMC demonstrates its commitment to advancing the investment migration industry is by hosting the annual Investment Migration Forum, creating a platform for discussing the latest developments in the industry. This exclusive networking opportunity brings together senior-level representatives of the global migration industry; academics, migration
agents, law firms, wealth managers, government representatives, and international organizations involved in citizenship-by-investment; and ultra high net worth individuals. Throughout 2017, the IMC also conducted successful specialized workshops held in Montenegro, Greece, and Malta, with similar events planned for Cyprus, Portugal, and Spain in 2018. The strength of the IMC and its message comes from its members. Several of the world’s most respected experts are on the governing board and advisory committee, including specialists from universities and the World Economic Forum, the Migration Policy Institute, UBS, KPMG, Henley & Partners, and Thomson Reuters — firms and institutions that have the most experience in the sector, and who have shown a willingness to provide advice and guidance, and share their knowledge. The council’s invaluable contribution to the industry is reflected in its expanding membership base — particularly in the US, the Caribbean, and Asia. Considering this growth, the IMC is making plans to open its first office in Shanghai, China, hoping to welcome its first visitors in 2018. The Shanghai office will serve to spread the reach of the IMC and its work throughout one of the biggest key markets in the industry, acting as an information station for local government, the public, and the media. In just a few years, the investment migration industry has come a long way. With the IMC at the helm and a solid Code of Ethics and Professional Conduct in place, this council has undoubtedly raised the industry standard, ensuring that citizenship-by-investment programs are transparent, ethically sound, and beneficial to all involved. Through collaboration and research, the IMC and its members will continue to safeguard the integrity of the industry. The IMC is constituted as a not-for-profit association under Swiss law. Based in Geneva, it has representative offices in New York and London. Managed by a CEO under the direction of a governing board, the IMC also has a non-executive advisory committee, in which the most important industry stakeholders are represented. The founding members include national industry associations, major law firms (Fragomen LLP, Mishcon de Reya Solicitors, and Foster Global), Henley & Partners, Visa Consulting Group, KPMG and BDO, in addition to other leading stakeholders. For more details on registering as member, please visit investmentmigration.org
Above: CEO of the Investment Migration Council, Bruno L’ecuyer
Endnote 1 B Nagy, In Whose Interest? Shadows over the Hungarian Residency Bond Program (Investment Migration Council, Transparency International 2016)
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Above: Jersey, the largest of the Channel Islands, occupies an area of 120 km 2 . It has a population of roughly 100,000
Jersey
A Safe Harbor for Business and Family
A
t a time when ‘balance’ is the aspiration of many, the island of Jersey offers the opportunity to both work in a thriving, international center of excellence and achieve a lifestyle that can seem worlds away from the office. Jersey has a longstanding reputation for attracting a range of innovative businesses, and those who run them, for this very reason. Residing on the island is not only beneficial in terms of corporate and personal wealth — Jersey offers some of the lowest direct taxes in Europe — but doing so also provides an enviable quality of life. Conveniently located just a short flight away from London and a few miles off the French coast, life on the island offers all the support necessary for cutting-edge, international business endeavors, while simultaneously providing a safe, attractive base for families.
Locate Jersey is the team within the Government of Jersey responsible for helping high net worth individuals (HNWIs) and businesses move to Jersey, providing comprehensive, independent, confidential, and free support to help businesses and families through the process of moving to, and setting up on, the island. Recent figures from Locate Jersey show that the island continues to be a destination that senior executives are keen to call home. Year-end figures for 2016 showed that, despite external global pressures, over 250 enquiries were received by Locate Jersey during the year, with 42 high value residency and inward investment business permissions granted. This interest increased in 2017: May and June were particularly busy, and the Jersey team saw more enquiries by the end of October than throughout the whole of 2016.
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Kevin Lemasney, Director of High Value Residency, Locate Jersey
IMAGE: Shutterstock
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There is also a clear trend emerging for many of the incoming HNWIs who are keen to settle on the island — they are young, economically active, and bringing their business and families with them. There are a number of reasons for this strong upward trend. For example, people are seeing that Jersey provides a safe and stable environment to establish a presence against the backdrop of uncertainty elsewhere. In addition, although Jersey is not part of the EU or the UK, it has strong connections to both the UK and Europe, and the wealth of professional service providers on the island makes it an attractive prospect for many business people. The simplicity, transparency, and security of Jersey’s high value residency regime offer the perfect solution both for a personal and family life and for building a successful, globally dynamic business — something that few other jurisdictions can match. While the experience over recent years has been that Jersey holds global appeal for individuals looking for a European hub, those HNWIs and their families relocating to Jersey have tended to come from the UK or are UK passport holders wanting to return closer to home — usually for family reasons. However, families have also recently made the move from other jurisdictions, such as Switzerland, Germany, Australia, and Singapore.
Lifestyle When moving a business to Jersey, it often means the whole family needs to relocate too. While the capital of Jersey and its business hub, St. Helier, offers the cosmopolitan atmosphere often sought after for a business,
the island remains steeped in traditional values, with plenty of room to escape the hustle and spend more quality time at home. The island is very well equipped for families, with a high standard of education, a quality healthcare system, and a broad range of homes available. Property styles range from luxury waterfront apartments and historic Cod houses to picturesque granite farmhouses and grand country manors. A beautiful island setting with a stunning coastline and countryside, Jersey offers a wealth of sporting and leisure activities for all, including surfing, cycling, rugby, football, and cricket. It also boasts four 18-hole (including three links) golf courses and a gastronomic offering to rival anywhere in the world, including Michelin-star restaurants and enticing beach-side eateries serving up freshly caught seafood and beautiful, locally grown produce.
Diversity Such is this enviable balance of business and personal life that a broad variety of sectors see Jersey as a natural place to position their corporate headquarters, including natural resources, financial and professional services, FinTech, e-commerce, fund management, and luxury goods. The digital sector in particular is growing, thanks to a pro-business government that is placing technology at the center of its economic growth strategy. The island’s highly experienced finance and professional services sector and stable and resilient communications infrastructure make the island an attractive place for a testbed or development center for FinTech and MedTech. It’s notable that Jersey is one of the first jurisdictions in the world where every home and business will be connected to a fiber network, enabling all users to potentially access the internet at speeds of up to one gigabit per second. The natural resources sector is also experiencing growth on the island. There are over 20 firms with a management and executive presence active in this area. Mining, oil, and gas executives are increasingly being attracted by the access Jersey can provide to investor capital markets, and the availability of finance, professional services, and other business support that can both protect their worldwide assets and help their businesses grow. Whatever your business or personal requirements might be, the odds are that Jersey can provide the perfect balance between business and lifestyle. It may even exceed your expectations.
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Above: Darren Walker, President, Ford Foundation; Priscilla Chan, Co-founder, Chan Zuckerberg Initiative; and Dina Powell, President, Goldman Sachs Foundation, discuss the future of philanthropy at the Vanity Fair New Establishment Summit’s session on ‘The Next Wave of Philanthropy’
Visionary Philanthropy Ultra high net worth individuals and the global fight for a brighter future
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hile the notion of charity dates as far back as the beginning of civilization, the world’s first philanthropists of scale really only started to emerge in the early 20 th century; to this day, Rowntree, Carnegie, and Rockefeller are names that are still known and admired for supporting causes close to their hearts.
In the 21st century, philanthropy is on the rise. There is increased wealth creation globally, especially among entrepreneurs who have a higher propensity to give back, and more wealth is being generated in developing countries by those who have seen and/or experienced poverty and inequality first hand. And thanks to technology, the world has become much smaller,
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IMAGE: Mike Windle/Getty Images
Christoph Courth, Senior Philanthropy Advisor, UBS Wealth Management, Switzerland Anna-Marie Harling, Head of the Global UHNW Philanthropy Center, UBS Wealth Management, Switzerland
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Above: French fashion designer Jean Paul Gaultier and Strive and Tsitsi Masiyiwa — Zimbabwe’s richest couple — are awarded the World Without AIDS Award at the 23rd Opera Gala at Deutsche Oper Berlin in 2016. The Masiyiwa’s Higherlife Foundation was established in 1996 and supports education- and health-related initiatives in Africa
IMAGE: Gisela Schober/Getty Images
IMAGE: Mike Windle/Getty Images
Global Passports and the Dilution of Citizenship | OPINIONS
making it difficult to ignore the myriad issues humanity faces presently. While celebrities and the super-wealthy may be on the front pages of coverage related to this increased giving, giving is not limited to these individuals. The rise of the millennial generation, whose social conscience is a defining part of their identity, and development of technologyenabled giving are some of the factors supporting the trend of growing philanthropic sentiments. In this new era, a more diverse list of admired philanthropists has emerged: Zuckerberg, Gates, Masiyiwa, Branson, and Premji, among several others. For philanthropists, and indeed everyday activists, who operate in a modern, connected, and informationdriven world, a specific set of targets has been established, namely the Sustainable Development Goals (SDGs). According to the UN, the annual investment gap to fund the SDGs in developing countries is USD 2.5 trillion annually until 2030. To put that into perspective: one
year’s funding gap is roughly equivalent to the GDP of the UK in 2017. The SDGs are about realizing the future we want, based on equality, sustainability, and opportunity for all. However, without the mobilization of private wealth, which Deutsche Bank estimates to be around USD 250 trillion, there are 2.5 trillion reasons why this future will not come to fruition. But there is hope, as both philanthropy and impact investing are growing. According to a recent report from UBS and Campden Wealth,1 over 75% of family offices plan to increase or maintain their level of giving in the coming year, and over 40% plan to increase their allocations to impact and ESG (Environmental, Social, Governance) investments. While there are no truly global statistics, based upon the data that is available we estimate that in 2015 at least USD 500 billion was donated globally. To contextualize this figure, it is equivalent to the combined 2015 profit of the top 10 most profitable companies, twice over. 2
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However, despite this growth, philanthropy is not working as best as it could. With so much capital flowing towards fighting the world’s greatest challenges, be it food security or climate change, one would expect there to be countless examples of large-scale success. The reality is there are not that many. One example of success could be the coalition of foun dations supporting the near eradication of polio through the mobilization of resources and the engagement of both the public and private sectors, which resulted in the World Health Organization taking Nigeria off the list of polio-endemic countries in 2015. Another example is the conservation success story of the southern white rhino. With less than 100 of these rhinos left in the wild in the early 1900s, the species has now rebounded to around 20,000, arguably thanks to the tireless commitment of philanthropic conservationists. We believe there are three inherent tensions at the heart of philanthropy that must be overcome to truly unleash the power of private capital for social good:
Above: Actress Angelina Jolie has become a noted philanthropist and is actively engaged in UN refugee causes. She is seen here visiting a refugee camp in Myitkyina, Myanmar
10 Traits Shared by Leading Philanthropists 1. They know business is good for philanthropy T he most successful philanthropists take their business acumen and apply it to their philanthropic activities, embracing calculated risk, focusing on outcomes, working towards key measurable targets, etc. eBay founder Pierre Omidyar and his wife, Pam, who together founded the Omidyar Group, are a great example of adopting this approach. 2. They define, refine, and focus Success in achieving philanthropic goals comes to those who identify an issue and focus the majority of their resources on developing a solution for it. Having a clear focus allows one to develop issue-specific expertise and partnerships, enabling cost-effective investment in staff and resources. For example, one of the world’s largest private funders of medical research, The Wellcome Trust, has just three core areas of focus. 3. They use the right engine and the right vehicle The right engine and vehicle help to facilitate costeffectiveness, calculated thinking, and appropriate systems alongside an impactful public image. Examples of succesful structures that philanthropists have used include Chris Hohn linking his hedge fund directly to his Children’s Investment Fund Management. Others, such as The Prince’s Charities and The Sainsbury Family Charitable Trusts, use umbrella
structures that house independent organizations that benefit from the cost-effectiveness of a central administrative parent. 4. They know there is no gain without risk Governments and businesses survive on reputations built on a positive image of success, and as such are often averse to risk. Philanthropists, however, enjoy almost total freedom to prototype novel approaches, experiment, tackle difficult questions, and take risks using fast analytical feedback systems that ensure learning. 5. Their philanthropy is a global passport There are countless examples of impactful philanthropists operating solely within the borders of their own nations, particularly those whose countries have high levels of poverty and inequality. However, generally speaking, in the interconnected world in which we live, the most renowned philanthropists are those who are not bound by borders and who operate on a transnational scale, tackling issues that are not restricted by geopolitical lines. 6. They know they are not alone Today’s social issues are often not islands; rather, they tend to be linked, forming part of an intricate web that is, in most cases, too large for any one solution or organization to tackle successfully. Therefore, partnering with the right organizations or individuals is paramount to maximizing capacity to bring about substantive change. Warren Buffett’s
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• Passion is not enough. All philanthropists have something in common: the founding impulse or passion to engage was born in their hearts. They saw something, felt something, and experienced something that made them stand up and take action. Yet passion, by definition, is not strategic; it comes from the heart and does not equal action. • Collaboration is often an afterthought. Much of Western philanthropy follows an individualistic tradition and is often seen as a means of selfexpression. Despite the rhetoric around collaboration, the reality is most people want to do something that they can shape themselves. • Risk-taking is avoided. For most philanthropists, time is in short supply. In addition, impact is notoriously hard to measure. Therefore, many prefer to follow tried-and-tested approaches rather than those more innovative and risky, even though these may have the potential to offer higher returns.
2006 pledge to donate 83% of his wealth to the Bill and Melinda Gates Foundation perfectly demonstrates that even the first- and third-richest people in the world recognize the need to join forces to achieve the change they seek. 7. They are more than just their philanthropy High-impact, strategic philanthropy realizes that one’s financial investments cannot be in conflict with one’s philanthropic investments. The Rockefeller Brothers Fund, for example, follows a mission-related investment philosophy to ensure its investment practices align with its philanthropic goals. With over USD 30 million in grants allocated in 2015, yet over USD 830 million 3 in investable assets, the managers of the fund have understood the power of strategic investing. 8. They may fail, but they measure, evaluate, and then succeed The greatest philanthropists are those who understand the importance of asking challenging questions, and they use qualitative and quantitative measurement systems that are ethically, culturally, and cost appropriate. At times, interventions will not succeed, as philanthropy is, essentially, an experiment in attempting to build a better world; however, learning from those failures and sharing these lessons with others will help drive greater impact and efficiency in the future.
However, the leading philanthropists of the 21st century are breaking through these barriers and giving hope. We have identified 10 traits shared by these philanthropists, shown below. On balance, as these traits become ever more the norm, the future of philanthropy and its impact on the world look bright indeed. a Endnotes 1 UBS and Campden Wealth, Global Family Office Report 2017 (2017) 2 A Shei, ‘Here Are the 10 Most Profitable Companies’ Fortune (Florida, 8 June 2016) fortune.com/2016/06/08/fortune-500-mostprofitable-companies-2016/ accessed September 2017 3 Rockefeller Brothers Fund, Annual Review (2015) References a UBS, Mobilizing Private Wealth for Public Good (White Paper for the World Economic Forum, Annual Meeting 2017) UBS and Campden Wealth, Global Family Office Report 2017 (2017) UBS Philanthropy Advisory, UBS Philanthropy Compass (2014)
9. They are not afraid to stand up and lead Today’s philanthropists operate in a world of heightened visibility and many are starting to see the value of putting their head above the parapet in order to inspire others. There are countless examples of those who have become philanthropic role models, including Charles Chen Yidan in China, the Zuckerbergs in the US, Jamie Cooper in the UK, Jannie Mouton in Africa, or the Carvajal family in South America. Many of these individuals have signed the much-publicized Giving Pledge, been recipients of the Carnegie Medal of Philanthropy, been listed a ‘Hero of Philanthropy’ by Forbes magazine, or received some other honor for having taken a philanthropic stand. 10. They have a vision for a better tomorrow, either in this life or the next A merican philanthropist, businessman, author, and politician Michael Bloomberg said the single best thing you can do for your children is to support organizations that will create a better world for them and their children. He has pledged the majority of his wealth to doing just that. Alfred Nobel signed over his estate to the establishment of the Nobel Prizes, and Andrew Carnegie set up the Carnegie Endowment; both of these initiatives are still operating to this day.
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Rights of Passage — Henley Passport Index 2018
IMAGE: Henley & Partners
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ometime towards the end of the 15th century, the that a specific passport can access becomes its visa-free French word passeport (from passer, ‘to pass’, and ‘score’. If two or more passports share a score, they will either port, ‘harbor’, or porte, ‘city gate’) was share a place on the global ranking. The ranking is adopted by the embryonic hybrid language that would accompanied by comprehensive lists of the countries each eventually become English and simplified into ‘passport’. passport can access visa-free, with a visa on arrival, with Today, this unassuming two-syllable word is the fulcrum an electronic visa (e-Visa), or with a traditional visa. on which much of global The Henley Passport Index politics turns. is powered by data from the Immigration policy is the central International Air Transport Modern passport laws have been in place in the issue in every major national Association (IATA), which West since the 1500s, but maintains the world’s largest election, and the passport you and most accurate database of the emergence of longdistance railway systems in are born with largely defines the travel information, and is enhanced by extensive research the 19 th century made them course that your life takes all but impossible to enforce, by the Henley & Partners and there were generally few research team. In addition to barriers to international travel until World War I. being the original passport index, the Henley Passport Borders were still being defined and disputed; as such, Index is the only index with historical data spanning 13 they were only loosely patrolled. years, and a database of 218 different travel destinations. It is difficult to even imagine such a world in 2018, It is also the only index of its kind that includes detailed when immigration policy is the central issue in every major insights from leading academics, researchers, and national elec tion, and the passport you are born with commentators on the major global and regional trends largely defines the course that your life takes. Liberalized affecting migration, mobility, and border policy. trade patterns and the globalized economic system mean, Key Regional Findings quite simply, that mobility and access amount to opportunity and prosperity. But where exactly do you lie • The Seychelles is the highest-ranking African on the spectrum of global mobility? How does your level country, ranking 24th on the index, with visa-free of access compare with others’? And what are the political access to 144 countries. factors governing the strength of your passport? Perhaps • Over the past 10 years, the UAE has moved up an more importantly, if your passport is not serving you, impressive 34 positions on the Henley Passport what can you do to enhance it? Index. Ranked 27th in 2018, a UAE passport now The 2018 Henley Passport Index was designed with offers visa-free access to 140 countries. these questions in mind. Launched 9 January, and • Offering visa-free access to 180 countries, and replacing the Henley Visa Restrictions Index, the Henley ranked jointly first overall, Singapore remains the Passport Index provides a ranking of the 199 passports best-performing country in Southeast Asia. of the world according to the number of countries their Singapore also achieved its highest ranking on the holders can travel to visa-free. The number of countries index in 10 years.
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• North Asian countries performed well on this year’s index, with Japan moving into joint first place and South Korea moving into joint third place. China climbed 11 places in 2018, gaining access to 13 new countries and claiming 74th place overall. • The Russian Federation moved up by six places on the 2018 Henley Passport Index to 45th place overall; it stands in second place within the region, behind Ukraine.
Key Insights In 2017, headlines were dominated by the immigrationhostile rhetoric and policy circulating within Organisation for Economic Co-operation and Development (OECD) states. Although Marine Le Pen’s right-wing populist Front National party was defeated in the French presidential election, popu lism appears to have won the day in a number of other OECD countries, including Germany, Austria, Australia, and New Zealand, where
anti-immigration and ‘country first’ policies have gained traction. In the foreground, of course, were the travel bans and the ominous plans for a ‘Mexican wall’ coming out of Trump’s administration in the US, along with the increasingly uncertain Brexit negotiations unfolding across the Atlantic. However, the reality on the ground in many parts of the world tells a different story. As Parag Khanna, leading global strategist and best-selling author, points out, the conservative sentiment in the US belies three important migratory facts: 1. Mexican migration into the US is in fact net neutral, with as many Mexicans leaving the US to return to Mexico as are leaving Mexico for the US. 2. Outbound US migration is on the rise, with retiring Americans moving south to Mexico, Central America, and the Caribbean in increasing numbers. 3. The largest incoming migrant group to the US is in fact not from Mexico but from Asia.
1st
Japan, Singapore | Visa-free access to 180 countries
2nd
Germany | Visa-free access to 179 countries
3rd
South Korea, Spain, Denmark, Finland, France, Italy, Sweden | Visa-free access to 178 countries
4th
Portugal, UK, Norway, Austria, Luxembourg, Netherlands | Visa-free access to 177 countries
5th
Canada, Switzerland, USA, Ireland | Visa-free access to 176 countries
101st
Pakistan | Visa-free access to 30 countries
102nd
Syria | Visa-free access to 28 countries
103rd
Iraq | Visa-free access to 27 countries
104th
Afghanistan | Visa-free access to 24 countries
105th
Above: The top-performing countries are generally European nations with the exception of three Asian countries — Singapore, Japan, and South Korea — and the US. All these nations offer visa-free travel to over 176 countries
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Bottom 5 globally
Somalia | Visa-free access to 32 countries
IMAGES: Henley & Partners
Top 5 globally
Top 5 and Bottom 5 on the 2018 Henley Passport Index
IMAGES: Henley & Partners
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Khanna believes that, while immigration may become skilled migrant mobility else where are pot ent ially more selective in 2018, the numbers will not necessarily diminish ing, with coun tries in the region taking drop. “Fundamentally,” he says, “migration is about advantage of skilled workers shut out of traditionally supply and demand, and in the US, major industries desirable locations.” such as technology and indeed manufacturing rely not It is telling that of the 199 countries included in the just on the existing labor force but also on having a 2018 Henley Passport Index, 195 either increased or strong number of immigrants working in those areas… maintained their visa-free score compared with 2017. The technology sector Contrary to mainstream especially is lobbying very narratives, global Contrary to mainstream media media heavily for immigration access seems to be stable reform to maintain that narratives, global access seems to or improving, although flow of talent.” historically open destibe stable or improving, although nations are becoming In Asia-Pacific, the sit uation is similarly historically open destinations are more closed — to their detri ment, seemingly. “In nuanced. Clamp downs becoming more closed on unskilled and skilled the long term,” says migration have become Coddington, “countries the norm in Australia and New Zealand, but other that ease restrictions on migration should benefit, countries in the region are easing restrictions on since migrants diversify their destinations, whereas mobility in an effort to attract talent. Taiwan, Japan, the promotion of ‘country first’ migration agendas has and China have all relaxed their visa requirements and the potential to limit migration, economic growth, residence laws to accommodate highly skilled and the development of diverse societies.” foreigners. As Dr. Kate Coddington, Associate ProfThe information provided here is based on the 2018 Henley essor of Geography at Durham University (UK), Passport Index, as of 9 February 2018, and is subject to explains: “The push in the Pacific Rim to encourage change. For the latest visa information, visit skilled migrants opens doors just as oppor tunities for henleypassportindex.com Key Citizenship-by-Investment Programs on the 2018 Henley Passport Index
Visa-free access to
200 countries
177
173
163
150 countries
141
140
132
131
26th St. Kitts and Nevis
27th Antigua and Barbuda
33rd St. Lucia
34th Grenada
100 countries 50 countries
4th Austria
7th Malta
15th Cyprus
Above: Countries hosting the world’s leading citizenship-by-investment programs offer an impressive performance on the 2018 index. Austria, with visa-free access to 177 countries, comes in at 4th place, the highest of all European offerings. Leading the pack of Caribbean options is St. Kitts and Nevis, at 26th, whose citizens can travel to 141 countries without a visa. It is closely followed by Antigua and Barbuda in 27th place
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Austrian Citizenship
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ustria is considered one of the richest and most developed countries in the world, and its world-class capital, Vienna, has a rich cultural and historic heritage. The country boasts a high standard of living; in 2017, Austria scored 79.9 (out of 100) on the Henley & Partners – Kochenov Quality of Nationality Index. An increasing number of individuals are considering making Austria, an attractive option for alternative citizenship, their second home.
Basic Requirements In most cases, and apart from a few other requirements, an application for Austrian citizenship requires an applicant to lawfully and continuously reside in Austria for at least 6 to 10 years. The exact requirement is largely dependent on the applicant’s current citizenship, their family background (e.g. whether they are married to an Austrian), and whether or not they are ‘highly integrated’ into Austrian society. This could mean that, for example, they have volunteered at nonprofit organizations in the country. Aside from the stipulation of residence, in most cases advanced knowledge of the German language and a basic knowledge of Austria’s history and democratic structure are required. In addition, the applicant has to provide proof of income.
The Republic’s Special Interest An application for citizenship is also permissible on the basis of Article 10 (6) of the Austrian Citizenship Act. This regulation provides for a more favorable granting of citizenship to applicants whose extraordinary
achievements help to advance Austrian society, and of whom more such accomplishments can be expected from them. In such cases, the Federal Government of Austria has to certify that the naturalization of such an applicant is ‘in the special interest of the Austrian Republic’, based on their extraordinary merits. The Austrian Citizenship Act does not, however, specify in what field these extraordinary merits should be achieved; nonetheless, sporting, artistic, scientific, as well as economic achievements — such as noteworthy (‘golden’) investments or another economic benefit in respect of Austria — tend to be taken into consideration. A golden investment in and of itself is not sufficient for consideration, as the applicant must still prove their extraordinary contribution to the Austrian society. This could relate to, for example, creating a substantial number of jobs — possibly in identified development areas such as rural communities — or transferring know-how or new technologies to Austrian locals. If a positive certificate is issued by the federal government on the basis of extraordinary achievement, many of the basic requirements of citizenship may be bypassed. Specifically, the applicant does not have to provide proof of German language skills or knowledge of Austrian history. In addition, the stipulation of lawful and continuous residence in Austria need not be upheld, and individuals would be allowed to maintain their current citizenship. This scenario is one of the very few cases of legal multiple citizenship, which is otherwise largely banned by Austrian citizenship law.
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Balazs Esztegar, Attorney-at-Law, Austria
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Italy’s Preferential Tax Regime for New Residents Giulio Allevato, Associate, Baker McKenzie, Italy Jacopo Crivellaro, Associate, Baker McKenzie, Switzerland
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s of 2017, Italian and non-Italian citizens who have not qualified as Italian tax residents for at least 9 of their last 10 years of residence may opt for a new tax regime in connection with their relocation to Italy. Under the new regime, a yearly EUR 100,000 substitute tax on their foreign-sourced income is applied. In short, eligible taxpayers who pay the EUR 100,000 substitute tax will not be subject to Italian ordinary tax rates (i.e. income tax at rates ranging between 23% and 41% on an arising basis) on their foreign-sourced income, irrespective of the actual amount of such foreign income. There is an important exception for capital gains realized from the disposal of ‘qualified shareholdings’ during the first five years since relocating to Italy, which are subject to Italian tax at the ordinary statutory rates.1 In contrast, eligible taxpayers will not be subject to rules on controlled foreign corporations and ‘sham’ foreign entities. Foreign-sourced income can also be remitted to Italy without triggering Italian taxation. As a consequence of the ‘territorial’ nature of this new regime, foreign assets are not subject to reporting on Italian tax returns. In addition, Italian wealth tax on foreign real estate (IVIE) and Italian wealth tax on foreign financial assets (IVAFE) are not applicable. Similarly, gratuitous transfers of assets and rights located outside of Italy are exempt from Italian gift and inheritance tax. Therefore, an eligible applicant can execute gifts of non-Italian situs assets (such as bankable assets held in a foreign bank account or non-Italian real estate) without triggering Italian gift taxation. A taxpayer can choose to exempt from the new regime all foreign-sourced income generated in one or more specific jurisdictions. In this case, the individual would then be subject to Italian ordinary taxation on the foreign-source income in question. A taxpayer who has elected to exempt from the new regime foreign-source income arising from a specific jurisdiction may qualify for a reduced tax rate under the relevant double tax treaty, and may claim a foreign tax credit in Italy for foreign taxes paid on such foreign-source income.
An eligible taxpayer can benefit from this regime for up to 15 years. It is possible to extend the benefits of this regime to immediate family members by paying an annual amount of EUR 25,000 per additional applicant, and election to take part in this regime can be withdrawn at any time. The new legislation also provides for an expedited visa process for those non-EU citizens wishing to adhere to the regime.2 However, relocating to Italy may also have non-tax implications on an individual’s estate plan. More specifically, the EU Succession Regulation (no. 650/2012) is currently applicable in Italy, and generally provides that the law governing a multi-jurisdictional succession is determined by the law of habitual residence of the decedent (potentially, Italy). A decedent may choose to apply the law of his/her nationality to regulate the succession, provided that certain formalities are met. Ultimately, relocating to Italy may require a restructuring of the applicant’s financial and non-financial holdings. It may be important to restructure assets to ensure that only certain types and sources of income are generated once the applicant has moved to Italy (i.e. income from a specific jurisdiction, or only foreign-source income). Moreover, it is important to inform financial institutions of a relocation as there may be regulatory restrictions with respect to certain investments based on the residence of the investor. Endnotes 1 ‘Qualified shareholdings’ are those that consist of more than 20% of the voting rights, more than 25% of the capital of a private company, more than 2% of the capital, or more than 5% of the voting rights of a listed company 2 Additionally, non-EU citizens who intend to relocate to Italy can apply for a two-year investor visa (requiring an investment of EUR 2 million in Italian public bonds, or EUR 1 million in Italian operating companies — subject to certain holding requirements — or a charitable donation of EUR 1 million), which may be extended for an additional three-year period, thereby permitting the foreign investor to meet the five-year residence requirement necessary to apply for a permit of stay of indefinite duration in the EU
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GLOBAL LIFE
Above: Tech pioneer Monique Morrow, of North Carolina, US, is Co-founder of The Humanized Internet, for which she was awarded the distinguished Global Citizen Award®. The Humanized Internet aims to “provide persistent, secure, global digital identity to the world’s population”
Global Citizen
Monique Morrow
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ilicon Valley, blockchain technology, self-driving cars. Syria, the refugee crisis, statelessness. We tend to think of these two worlds as non-intersecting: the first evokes a spirit of cutting-edge innovation and opportunity; the second evokes images of desolation and despair among the world’s most vulnerable populations. But what if the radically out-of-the-box thinking that is redefining the tech industry could be used to empower the marginalized girl-child, eradicate poverty globally, or solve the challenges of the 1.1 billion people in the world
today who are unable to prove their identity? Many individuals are dedicating resources to these causes and are achieving valuable results. One such outstanding individual is Monique Jeanne Morrow. Monique’s interest in the sciences was noticeable from a young age. The North Carolina native fondly remembers asking her parents for a chemistry set at just 10 years of age and was always pursuing the ‘why’ and ‘how’ of the world around her. Her curiosity was stimulated by frequent travel as a child.
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IMAGE: Henley & Partners
“People ask me why are we still talking about women in tech. Well, it’s over with when we no longer have to talk about it”
IMAGE: Henley & Partners
Global Passports and the Dilution of Citizenship | OPINIONS
GLOBAL LIFE
Monique completed her undergraduate studies at San José with others when and how they wish or need to. This groundState University (US) and the Sorbonne (Paris, France). She breaking approach shifts ownership of the identity process later went on to pursue a graduate certificate in Information away from humanitarian organizations and other Systems (University of Southern California, US) with a focus intermediaries and into the hands of the individuals involved. on decision-support systems as well as an MSc in Monique is quite deliberate about including underTelecommunications Management (Golden Gate University, privileged minorities such as refugees and asylum seekers California, US) and an MBA (City University of Seattle, US). in the development of innovative, user-friendly solutions. She began her illustrious career at Advanced Micro As she explains: “I strongly believe we can learn from Devices as a network engineer and network engineering the under-served in the tech value chain. We must be manager, and in 2000 she joined global information careful not to become ‘techno-colonialists’ and to rather technology and networking specialist firm Cisco, where include the under-served as fundamental to these she thrived and made great strides for the position of emerging solutions.” Armed with a virtual identity toolkit women in technology. Monique and platform, for example, displaced achieved a number of firsts while at people can receive support and Cisco: for example, she was named I strongly believe we can much-needed aid directly, and begin the first Distinguished Consulting to move through the world with learn from the under- greater dignity and ease. Engineer (2005), the first Chief Technology Officer (CTO) for the On the other side of the refugee served in the tech value Services Organization (2012), and spec t r um, Monique lobbies the first CTO of New Frontiers chain. We must be careful governments to rethink the sovereignty Engineering (2014). All these of paper over electronic forms of not to become ‘techno- documentation and to adapt their developments occurred at a time when most people were not even bureaucratic practices for the 21st colonialists’ aware that CTO positions existed. century. The goal is to move from Alongside its contribution to her scanned copies of documents to professional growth, with opportunities for involvement accepting digitally stamped documents in real time — a in cloud computing and Internet of Things initiatives, harder problem to solve, and hence an opportunity. Monique’s time at Cisco allowed her to be at the forefront In November 2017, Monique was awarded the prestigious of investigating how technology can adopt a more socially Global Citizen Award® by international advisory firm Henley conscious and responsible purpose. “Purposeful & Partners in recognition of her courageous efforts to organizations and structures will carry far more currency revolutionize and mobilize technology for the purpose of in our 21st century and beyond,” says Monique. It is this advancing the human right to identity. On receiving the humanitarian approach to IT that eventually saw her award, Monique said, “The 2017 Global Citizen Award® is developing The Humanized Internet. a recognition of a passionate goal for me personally — that The Humanized Internet focuses on the 1.1 billion is, to really improve the world we live in.” At the award individuals (of whom 230 million are children under the ceremony, Monique made special mention of the rest of The age of five years) who struggle to prove their legal identity, Humanized Internet team: specifically, Co-founder Mark sometimes as a result of involuntary displacement but more Kovarski (who is based in Canada) and Business Development often because governments fail to capture the existence of Manager Akram Alfawakheeri (who is based in Germany). their own citizens. Without government-issued docu “Monique Morrow’s remarkable dedication to the mentation, these individuals are effectively invisible and utilization of technology to dramatically improve human often excluded from society and its institutions, which makes rights makes her a truly deserving recipient of this award,” them especially vulnerable to human trafficking and abuse. says Paola De Leo, Head of Group Philanthropy and CSR Monique’s organization pursues ways of empowering at Henley & Partners. “The Humanized Internet is a people, particularly dispossessed groups, with a virtual trailblazer, its visionary approach demonstrating how the identity — a digital set of their marriage, birth, education, incredible advances and innovations in technology today healthcare, and other essential records — that only they can can be used to create tangible change to help the world’s access, any time, through any mobile device, and share most vulnerable people. Henley & Partners is committed
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OPINIONS | Global Passports and the Dilution of Citizenship
to working closely with Morrow to further impact positively on the global cause of refugees, which is the primary focus of our social investment.” Also in 2017, Monique was awarded the DECA International Entrepreneurial Spirit Award, “in honor of her industry leadership, personal achievements, and social responsibility”. In 2016, she was recognized as a YWCA– NYC Woman of Influence and was identified as being among the “top 50 most inspiring women in technology in Europe”. Monique is the co-editor of The Internet of Women: Accelerating Culture Change, a book that offers a collection of case studies of global cultural trends and their impact on the rise of women’s leadership. It also highlights the increasingly progressive gender culture that the tech space is witnessing globally. Indeed, it is not only the refugee cause that has captured Monique’s interest but all forms of discrimination, be they age-, race-, or gender-based. She is adamant that technology has a role to play in cultivating inclusivity. “Technology is essentially gender and ethnicity neutral,” says Monique. “I believe we can create technology with a diverse set of people involved — people that reflect society’s actual composition — to flag against all kinds of biases.” The “power of the and” is Monique’s term for the positive impact that diverse teams offer. She believes that organizations can help facilitate this diversity by transforming their organizational DNA, with the transformation driven by the top echelons of management.
According to Monique, increasing digital and technological access can aid poverty alleviation and support employmentboosting initiatives. She believes that “technology will always have a technical solution to a technical problem, which can create massive opportunities”. No matter the situation, Monique’s mission is always to see the eradication of burdensome social issues. This mission ties in with her personal conviction that everything one does, whether in business or elsewhere, should be done with a sense of purpose and for the greater good, so that personal actions yield greater social benefits. Throughout her career, Monique has sought to build bridges between the tech sphere and the public sector, helping industry leaders to align their existing and future technologies with the needs of governments, non-profits, civil society organizations, and society itself. She is widely recognized as a technology pioneer, a thought leader, and a visionary, and the world is richer for her contribution. In reflecting on her leadership philosophy, Monique reveals that she is a service-oriented and humble leader. Unlike many executives and team leaders, she is not afraid of being vulnerable, since she believes that her vulnerability is precisely what makes her approachable. And it is also what makes her willing and able to approach others for their input. “We must be resolute in always creating the world we wish to have,” Monique believes, “not the world we wish to avoid. This is the legacy I aim to leave behind.”
70 | The Global Citizenship Review
IMAGE: Henley & Partners
GLOBAL LIFE
IMAGE: Henley & Partners
Global Passports and the Dilution of Citizenship | OPINIONS
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Above and opposite page: Antigua’s stunning Tamarind Hills development is what dreams are made of: panoramic views, private access to glorious white-sand beaches, full-service concierge offerings, and commercial investment potential
Property
T
amarind Hills’ collection of beautifully designed villas takes luxury to new heights. The develop ment’s range of beach and oceanfront villas offers guests a classical Caribbean getaway in a secure and picturesque location — the finest in Antigua. The development is located on the south-west coast of Antigua, between two of the most attractive beaches in the Caribbean — Ffryes and Darkwood, with a boardwalk
linking the two beaches — providing guests with exclusive access, be it for a quick swim, a stroll on the white sand, some light water sport, or deep-sea exploration. Tamarind Hills is close to retail outlets, bars, restaurants, the marina, the golf course/estate, and many other attractions. For those looking to experience the natural beauty of the island, there are plenty of walking and hiking trails, as well as a zipline for the more daring.
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IMAGES: Supplied
Tamarind Hills, Antigua
IMAGES: Supplied
Global Passports and the Dilution of Citizenship | OPINIONS
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The villa cluster is about 20 minutes away from Nelson’s Dockyard, which was officially recognized as a UNESCO World Heritage Site in mid-2016. The development has been operational for several years, and offers a successful rental management program and returns. The island of Antigua is one of the world’s premier high-end yachting destinations, and as such offers the potential to generate year-round rental income. Whole-ownership freehold properties range from oneto five-bedroom options, all featuring a contemporary Caribbean design with private pools, wrap-around terraces, and European kitchens and bathrooms. Owner and rental parking, 24-hour security, private chefs, and concierge services are the garnish on this delectable offering. The concierge team offers an array of services, including but not limited to pre-arrival grocery shopping, private yoga classes, and in-villa spa treatments, which all serve to ensure that guests have the most restful, relaxing, and rejuvenating time in Antigua. The exclusive development also offers access by helicopter and private plane, and private boat charter can be arranged.
Other resort facilities to be completed in 2018 include fine-dining and beachfront restaurants, a gym and spa, a children’s club, and conference facilities, making Tamarind Hills a full-service and holistic development. In 2017, Tamarind Hills was ranked International Property Awards’ Best Antiguan Residential Resort Development. The development is the work of Island Heights Ltd., an experienced and well-known Caribbean group that also offers cost guarantees, and additional special tax incentives, to buyers. Luxury properties are available from USD 400,000 to USD 3 million, with completed and off-plan options available for all 100 units. All Tamarind Hills properties qualify the buyer to apply for Antiguan citizenship, which provides passport holders with visa-free access to 135 coun tries, including the UK and Europe’s Schengen states. Antigua has a new international airport that offers daily connecting flights to the US, Canada, and Europe. With the airport only 10 km away, Tamarind Hills guests are assured of the peace and quiet befitting a resort island.
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GLOBAL LIFE
Above and opposite page: The Chedi Andermatt is a premium getaway destination for individuals and families in need of pleasure and relaxation. Nestled within the grand Swiss Alps, The Chedi Andermatt offers a breathtaking Alpine-meets-Asian aesthetic
Marco Polo
O
n a smooth, quiet drive through Urserental valley in Uri, Switzerland, with the majestic Swiss Alps as the horizon, you will come across the breathtaking site of The Chedi Andermatt, an indulgent five-star hotel that is uniquely Alpine-meets-Asian, in more ways than one. Situated at the intersection of three mountain passes, The Chedi Andermatt boasts an offering of “the most
spectacular breakfast buffet in the Alps”. If breakfast is not your preferred meal of the day, you can treat yourself to a quality lunch or dinner at any of The Restaurant’s four kitchens, which serve a delightful range of Asian and European dishes. There is also The Japanese Restaurant, which was recently awarded a Michelin star for its sushi, sashimi, teppanyaki, and tempura specialties.
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IMAGES: Supplied
The Chedi Andermatt
IMAGES: Supplied
Global Passports and the Dilution of Citizenship | OPINIONS
GLOBAL LIFE
The 123-room hotel opened its doors in December 2013, marking a milestone in the development of the resort. It was designed by renowned Belgian designer and architect Jean-Michel Gathy, the name behind iconic hotels and resorts such as The Chedi Muscat (Oman), The Setai (US), and The St. Regis Lhasa Resort (China), as well as One&Only and Cheval Blanc Randheli (Maldives). The hotel has a Tibetan-inspired Spa and Health Club where you’ll find a 35 m indoor pool with views of Andermatt’s mountain scenery, making for a lavish experience for those seeking some respite. While the Alps are considered the ideal winter destination, the region is in fact a pleasing option for a summer vacation, and for those who visit during the warmer months, hiking, golfing, and fishing adventures await. Hikers may opt to be accompanied by a local guide, and skiers can simply call on one of the hotel’s designated ski butlers to arrange their activity, from organizing equipment and warming boots to preparing a warm beverage upon return. If skiing seems too challenging, one can go for a skate at the hotel’s ice rink. Perhaps staying indoors seems more appealing, in which case guests can easily find a comfortable spot next to the almost 200 fireplaces in the hotel and read a book from the Wine & Cigar Library — which houses books supplied by the London Library — while enjoying a selection from the over 600 bottles available. There is also a 5 m glass box Cheese Room that showcases about 40 varieties. In 2017, The Chedi Andermatt was named Hotel of the Year by leading restaurant guide Gault&Millau and was
awarded Prime Traveller Awards’ Best Ski Hotel. The hotel was also among Traveller’s World Awards’ ‘Top 10 Best Spas worldwide’, and SonntagsZeitung ranked it ‘2nd Best “Best Holiday Hotel”: The 150 Best Hotels of Switzerland 2017’. The Alps are Europe’s most popular mountain range and are spread across eight countries that form the Alpine region. The Chedi Andermatt is at the heart of Andermatt, a traditional Alpine village 90 minutes away from Zurich Airport and 45 minutes away from Buochs private airfield, for those coming in by private plane.
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GLOBAL LIFE
Culinaria
W
hen Franco-Chinois restaurant yam’Tcha opened its doors in 2013, it was considered an odd addition to the high-end streets of the Parisian culinary scene. The now Michelin one-star restaurant surprised many, and continues to today, which explains why a reservation at the restaurant is one of the most difficult to secure. Led by a wife-and-husband team — French-born Adeline Grattard heads up the kitchen and Chinese tea connoisseur Chi Wah Chan works front of house — yam’Tcha’s offerings include delicate mussel and smoked tofu salad, watercress soup served with slivers of razor clam and foie gras, omble chevalier with bok choy and ginger, and nectarines in an osmanthus syrup. The restaurant has gained a reputation for its selection of filled bao — steamed brioche bun-like items, with fillings including comté with sweet onion, shrimp with gauchoï, and Stilton with Amarena cherry. Grattard sources her top-quality ingredients early in the morning from Rungis Market, the world’s largest wholesale market, which dates back to the 12th century; she considers these early hours her personal time to craft her spectacular concepts. Michelin guide inspectors have said of Grattard that she “has a remarkable feel for ingredients with simple and striking
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associations”, which are well enhanced by Chan’s precision at pairing complementary teas. Of these, noted food critic François Simon says: “[The tea] soothes, calms, and appeases your stomach. It says ‘Shh! Now listen.’” After pursuing culinary studies at Paris’ École Grégoire Ferrandi and spending time at L’Astrance, an innovative Michelin-star decorated restaurant, Grattard spent some years in Hong Kong. Having always had an interest in Chinese flavors, she immersed herself in the food and culture. She recalls: “Since I was a girl I have loved Chinese cooking — ginger, soy sauce, and the fast magic of the flame.” It is this passion that is at the heart of Grattard’s success, seemingly drawing from an internal well of infinite inspiration. Her menu is constantly adapting and she doesn’t have any written recipes: she considers each table of guests an opportunity to pursue an exciting experiment. The name yam’Tcha harkens to a Cantonese expression used to describe ‘eating steamed dishes while sipping tea’. The restaurant’s Zen-inspired dining room seats 30 and is open Wednesday to Saturday for lunch and dinner. To make a reservation, phone +33 1 40 26 08 07 from the first Friday of the month for the following month. For more information, visit yamtcha.com
IMAGES: Supplied
yam’Tcha, Paris
IMAGES: Supplied
Global Passports and the Dilution of Citizenship | OPINIONS
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GLOBAL LIFE
Medicus
VIP Syndrome
F
or a high net worth individual (HNWI), getting the best service becomes a matter of course. But what happens when one’s profile, and this very expectation of premium treatment, actually hinders the quality of healthcare one receives? Some medical professionals buckle under the pressure of their patient’s prominence and may find themselves giving in to unprofessional, unethical, and possibly dangerous practices. For example, in 2009, the death of Michael Jackson was all the more tragic when his personal physician was later found guilty of involuntary manslaughter on account of prescribing medication used during supervised medical procedures for Jackson’s personal, unsupervised use. In September 2014, celebrity comedian Joanne Rivers died following routine surgery; a federal investigation revealed that the facility at which Rivers was treated did not follow protocol, performed procedures without her consent, and neglected to address vital signs that her health was deteriorating. These superstars would have expected only the highest standard of care. Dr. Walter Weintraub, in his seminal paper on the VIP Syndrome provides examples of how King George III and King Ludwig II of Bavaria both faced experiences where their healthcare was jeopardized by doctors who were, quite simply, awestruck. a Weintraub describes VIP syndrome as “the adverse influence that very famous or wealthy patients can have on the sound medical judgment of otherwise excellent physicians”, typically obscuring their objectivity and decision-making. However, it is worth noting that VIP patients can also play an influential role in practitioners’ deviation from standard procedures, by requiring that practitioners accommodate their — often non-medical — needs.
Unknowingly, such patients are actively using their influence to put themselves in a position of harm. To ensure successful and ethical treatment, both doctors and patients need to keep a number of considerations in mind. Firstly, and most importantly, it must be remembered that, in the consulting room, a patient is just a patient. Before being a celebrity, politician, influencer, or millionaire, a patient must be treated in the same way they would be if they had no social, political, or financial esteem, in line with the tenets of the Hippocratic Oath. Secondly, patient requests should be examined to interrogate whether they are based on materialistic factors, ego, or fads, on the one hand, or genuinely grounded in health needs and legitimate medical practice, on the other. If a VIP doesn’t agree with their doctor’s advice, they can seek a second or third opinion, but they should refrain from using their status to convince a practitioner to agree to prescribe treatment that they don’t recommend. Similarly, if a doctor suggests a health plan that seems overly aggressive, the patient should explore other opinions: the doctor may be overtreating out of fear of mistreating. VIPs may indeed need preferential care due to media exposure, demanding travel commitments, and unconventional dietary requirements, among other reasons, and it can be a challenge to find healthcare providers that meet their unique set of needs. In this new column, the REVIEW will explore the healthcare landscape for HNWIs by profiling those practitioners considered to be leading specialists in their field — practitioners on the cutting edge, with access to only the best resources. For health, after all, is the greatest wealth. References a W Weintraub, ‘“The VIP Syndrome”: A Clinical Study in Hospital Psychiatry’ (1964) 138 The Journal of Nervous and Mental Disease 181
The problem with treating a celebrity or high-profile patient is that all the extra attention can quickly turn into VIP syndrome — a series of bad judgments, unnecessary tests, second-guessing and, ultimately, substandard care. Robert Klitzman, M.D.
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Global Passports and the Dilution of Citizenship | OPINIONS
GLOBAL LIFE
Art Diaspora
Dissolving Continents The launch of the Zeitz Museum of Contemporary Art Africa (MOCAA) in Cape Town, South Africa, in September 2017 celebrates Africa’s place and influence in the world while dissolving the boundaries faced by its diaspora on the world art stage
IMAGES: Henley & Partners
I
n a pristine chamber of the Zeitz MOCAA, an expanse of gold draws you into its folds. The wall-to-wall metal tapestry by Ghana-born and Nigeria-based artist El Anatsui, entitled Dissolving Continents (2017), a composite of aluminum and copper scraps, depicts a fragmented world map with the continents bleeding and collapsing into one another. The piece forms part of a series that includes Drifting Continents (2009) and Straying Continents (2010). In his work, Anatsui uses discarded metal objects such as liquor-bottle tops to gesture to the ongoing cultural impact of colonial imports. Anatsui explains: “Art is something that grows from the environment; it is not something you have to create.” Drifting Continents fetched approximately USD 950,000 at a Sotheby’s auction of modern and contemporary African art in May last year — a reflection of the growing inte rest in art coming from the continent. Engineered by British designer Thomas Heatherwick, the Zeitz MOCAA building is an artistic masterpiece in its own right. Heatherwick left the exterior of the old grain silo almost entirely intact and took to chipping away at its dense interior, revealing a labyrin thine, cathedral-like structure that inspires awe in visitors. The careful excavation of the grain silo provides a poignant metaphor for the way the museum is carving out space for the African aesthetic, which has historically been either sidelined or exoticized by art critics and institutions in Europe and North America. The museum is the result of a collaboration between Jochen Zeitz, art collector,
philanthropist, and former CEO of German sportswear brand Puma, and Mark Coetzee, renowned curator and art journalist. As Zeitz told The New York Times, the two got to chatting about the under-representation of African artists and the lack of a significant cultural institution in Africa. Over the next decade or so, they began amassing a large private collection of contemporary (post-2000) art from Africa and its diaspora, which is now on permanent loan to the Zeitz MOCAA. “The Zeitz is very much about Africa and its diaspora,” Coetzee explained in an interview with the online publication Conceptual Fine Arts. “The museum is about Africa and its influences through the centuries,” said Coetzee. “It is trying to look at Africa’s place in the world, Africa’s influence, and the dialogue about Africa.” Indeed, the dissolution of the continental arrangement in Anatsui’s work speaks not only to the current globalized world order but also to the much earlier interconnectivity and interdependence that colonialism created among the world’s disparate geographic regions. Attempts to reverse and halt this reciprocity — visible today in increased border restrictions and hostile responses to the refugee crisis — necessarily erase the whole of history. We would do well to remember that wealth and resources flowed out of Africa and into Europe for centuries, suggests Anatsui, and that the flow of Africans into Europe in recent years is a direct result of the deficit created by this economic arrangement.
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Global Passports and the Dilution of Citizenship | OPINIONS
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Books
The War for China’s Wallet: Profiting from the New World Order Shaun Rein Walter de Gruyter Inc.
Each of the nine chapters begins with a narrative account from Rein’s personal experience, providing rich context for the rest of the chapter. A dialogue follows each narrative account, granting the reader access to Rein’s primary research interviews with prominent business figures and government officials, who have profound knowledge and experience of operating in China, as well as with Chinese consumers. The dialogues lead to fascinating case studies featuring Chinese businesses and busi nesspeople, which highlight important learning points for those interested in conducting business in China. Each chapter ends with a list of key action points, in effect providing a checklist of useful, practical advice for countries and companies that want to better understand the Chinese consumer, and how to profit from China’s outbound economic plans. Those who read this book will gain an understanding of China’s underlying motivations and become acquainted with its initiatives, and could well stand to benefit from China’s growth engine as a result. Shaun Rein is the Founder and Managing Director of the China Market Research Group, a leading strategic market intelligence firm focused on China, and has over 15 years of experience as a successful businessman in Shanghai, China. He is the author of The End of Cheap China: Economic and Cultural Trends That Will Disrupt the World (2016) and The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia (2014).
China may economi cally cripple nations one day with an economic hamm er, lathering them with profits and flattery the next. 82 | The Global Citizenship Review
IMAGE: Walter de Gruyter Inc.
C
hina has grown to be the one of the largest trading partners, if not the largest, for most countries, but what are China’s strategies for initiatives such as One Belt One Road (OBOR), the Asian Infrastructure Investment Bank (AIIB), and the reclamation of islands in the South China Sea, and what opportunities exist for those looking to profit from them? What is motivating China to pursue increased land and sea power? How are Chinese consumers evolving, and how will other countries know how to tap into China’s continued economic growth? In The War for China’s Wallet: Profiting from the New World Order, Shaun Rein provides unique insights into China’s economy and market, elucidating these and other relevant issues in the process. The War for China’s Wallet is writ ten in an engaging style and introduces Rein’s ‘Hot, Warm and Cold Partner’ framework for categorizing countries according to their shifting relations with China. The framework is a neat tool that facilitates understanding of China’s political and economic dealings abroad. The first part of the book examines the politics of China’s rise in the international arena, while the second focuses on China’s economic growth and shift to consumption and innovation, the ramifications for businesses dealing with the Chinese state, and Chinese consumers who are disrupting global trade patterns.
GLOBAL LIFE
IMAGES: Ideos Publications Ltd; Scribner
IMAGE: Walter de Gruyter Inc.
Global Passports and the Dilution of Citizenship | OPINIONS
Global Residence and Citizenship Programs 2017–2018
A Flag Worth Dying For: The Power and Politics of National Symbols
Forests: Reasons to Be Hopeful
Henley & Partners
Tim Marshall
Ideos Publications Ltd.
Ideos Publications Ltd.
Scribner
As residence- and citizenship-byinvestment programs proliferate, potential investors face a range of options for pursuing their end goals. The 3rd edition of Global Residence and Citizenship Programs (GRCP), updated to enhance its usability, guides investors with its comprehensive comparison of leading investment migration programs. The report ranks programs in two indexes: the Global Residence Program Index and the Global Citizenship Program Index. Factors shaping the attractiveness of each program are scored and presented in detail. From program reputation, processing time, and compliance to investment requirements, total costs, and time to citizenship, readers can dig deep into the overall ranking and the score rankings for each factor. Informative expert commentary articles examining the citizenship and residence landscape supplement the report. The GRCP is incisive and illuminating — an invaluable tool for prospective applicants, their advisors, and policy-makers in government.
Flags are relatively new in human history, yet every nation has a flag, and each flag has the power to charge the citizens it represents with powerful emotions. The 21st century has had a tumultuous start, and it is helpful to understand the history and meaning behind the symbols that people are warring over and uniting behind. Tim Marshall, The New York Times bestselling author of Prisoners of Geography, reveals the politics and power of flags by comparing current and historical events. He examines the flags of over 85 countries, ranging from small nations to superpowers, and reveals how their concealed histories still feature in today’s politics and international relations. This engagingly written volume guides the reader on a world tour of interesting and notorious flags in nine chapters, at the same time providing insights into the vicissitudes of life.
Bill Liao
This inspiring book looks at the important role of forests in contributing to the natural balance of the environment, and then presents an optimistic solution to the detrimental effects of climate change, restoring the water cycle, and alleviating poverty. Rather than feeling powerless to make a difference, the reader is urged to engage positively in collaborating for change. This approach emerged from connecting several disciplines, and the result is an uplifting book that begins by examining how we got to where we are today, then delves into scientific explanations in an easy-to-read style that is supported by colorful visuals. Forests: Reasons to Be Hopeful offers a rational approach and shows how planting trees can help to restore balance in the ecosystem. Bill Liao is a diplomat, investor, entrepreneur, and philanthropist; his passion and energy shine through in this remarkable book. All profits from the book go to WeForest.org for planting trees.
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GLOBAL LIFE
Reflections
Simone de Beauvoir
F
rench writer, intellectual, and existential philosopher Simone Lucie Ernestine Marie Bertrand de Beauvoir was among the pre-eminent voices of the 20th century advocating a gender- and age-conscious society. Her work, including She Came to Stay (L’Invitée) — her first novel, published in 1943 — and her noted essay The Ethics of Ambiguity (1947), continues to be regarded as essential reading for scholars and critical thinkers. De Beauvoir was born in Paris, France, in January 1908 to a housewife mother and lawyer father who raised their two daughters in a strict Catholic home. Despite being sent to a convent during her middle school years, de Beauvoir began to question the tenets of her faith, which prompted her lifelong commitment to the exploration of existential philosophy. She went on to study philosophy at the Sorbonne, France, and in 1929 completed her thesis on the work of Gottfried Wilhelm Leibniz, a noted German philosopher, mathematician, and logician. Before launching her writing career, de Beauvoir spent much of the 1930s teaching philosophy and literature. In 1943, she published her first novel, which is said to be based on a love triangle involving her lover and one of her students. The novel interrogates the nature of romantic relationships
using an existentialist frame of reference. During this time, de Beauvoir was also involved in Les Temps Modernes, a monthly journal founded by Jean-Paul Sartre that published its first issue in 1945, serving on its editorial board. In 1954, de Beauvoir won one of France’s most prestigious literary awards, the Prix Goncourt, for The Mandarins (Les Mandarins). Among her numerous other publications are The Blood of Others (1945) and All Men are Mortal (1946), as well as two books published posthumously: Diary of a Philosophy Student (2006) and Wartime Diary (2009). De Beauvoir is most famed for The Second Sex (Le Deuxième Sexe), a book-length essay of almost 1,000 pages, which discusses the dimmed position of the woman in society. The Second Sex sold over 20,000 copies in its first week in Paris alone. Later feminist authors leveled criticism against de Beauvoir and The Second Sex for being extreme in the formation of the concept of a free woman. Nonetheless, the writer retains her position as a seminal contributor to pro-feminist thinking. De Beauvoir died in April 1986, at the age of 78. She is buried alongside her lifelong partner and fellow existentialist philosopher Sartre.
IMAGE: Shutterstock
One’s life has value so long as one attributes value to the life of others.
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