By Alfred Sieh, Special Envoy for Out-of-Country Voting and Chairman Emeritus, ULAA
From a historical perspective, Wealth-driven migration policies to grant citizenship by investment programs, have profound economic and social consequences. While designed to attract capital, these policies frequently cause significant asset inflation, increase inequality and trigger social friction.
ECONOMIC DISPLACEMENT AND ASSET INFLATION
Influxes of wealthy foreigners/migrants frequently drive up property prices making housing unaffordable for local populations. In cities like Lisbon, Athens, and Madrid, this has caused significant gentrification.
Property prices in some regions have risen to meet the minimum investment threshold, increasing the cost of living for residents. In places like Portugal, the surge in real estate investments from high-net-worth individuals has displaced thousands of low-income citizens.
CULTURAL AND SOCIAL CONSEQUENCES
Wealthy foreigners/migrants often live in separate enclaves, which can hinder assimilation and create “parallel societies “. The rapid influx of wealthy foreigners/migrants can lead to public disapproval particularly when local populations feel they are being priced out of their own cities. Policies perceived as favoring wealthy foreigners/migrants over local residents can fuel populist sentiments.
International bodies, such as the Financial Action Task Force (FATF) have identified these policies as vehicles for money laundering and organized crimes. Wealthy foreigners/migrants may exert undue influence over local policies, such as pushing for deregulation or privatization of public assets.
Due to these negative consequences, some countries have reversed course. For example, Spain announced the termination of its golden visa to address housing shortages. Portugal reversed real estate investments from its program to cool the housing market. With all of these in mind, why should one want to advocate for non-negros citizenship at this time?
