Foreign Direct Investment

Foreign Direct Investment

State the negatives and positives of the concept "Citizen by investment" to countries in the Caribbean, giving examples to explain the pros and cons

I found this topic rather interesting...
The concept "Citizen by investment" occurs when a country facilitates the naturalisation of wealthy individuals to invest in their country/economy. It is usually in the form of a program offered by a country to incencitize real estate investment offering residency permits and citizenship. As the name suggests, one can become a citizen by investment in a country.This programs are being adopted in an effort to recieve more foreign direct investment. The amount to be invested may be decided by the authorities or through investment programs, which details investment amounts and other criteria for naturalisation. Gaining citizenship through investing in a country, provides the option of residing in the country or not. However, it is more common for investors to reside in the country that they invest in as this is the main objective for doing so.
Currently, five Caribbean countries have been identified as offering citizen by investment programs; St. Kitts and Nevis, Dominica, Grenada and Antigua and Barbuda. St. Lucia has very recently, adopted such a program. Each country has adopted this practice for its own reason, and ofcourse it brings about positive and negative impacts on each country.
By adopting such a program, these countries assume that the investment being made in their country brings about economic benefis and creates strong links with the investor. St. Kitts and Nevis adopted this program about thirty years ago, in an effort to address the economic downturn that they were experiencing, this had a positive impact on the economy.
These countries as mentioned above, are becoming the dominant competitors in terms of tourism destination. What I mean to say here is that these countries become more attractive and interesting to tourists because of the incentives...

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