Monday 5 September 2022

MORE THAN A 'PLAN B': THE FUTURE OF CBI - CS GLOBAL PARTNERS

London, Sept 2 (Bernama-GLOBE NEWSWIRE) -- The CBI industry is changing, and its players must look to the next generation to see how it will evolve in the future.

Escaping to a deserted island is a powerful metaphor, and one that an increasing number of successful businesspeople are exploring. Against a global backdrop of growing political, economic, social and environmental instability, there’s growing interest in investment migration. In 2023, it is predicted that 125,000 millionaires will look to relocate to more secure and attractive destinations around the world. And it is not just the ultra-wealthy who are looking to move.

Taking a medium-term view, to 2030, it’s a trend that is set to continue. Political fragmentation and growing authoritarianism; economic policy uncertainty and corruption; social polarisation and civil unrest; and changing weather conditions will make many home shores an unreliable bet into the future. It bodes well for Citizenship by Investment (CBI) programmes. The continued popularity of second, or even multiple citizenships, can be expected as hard-working businesspeople continue to shore up their defences — protecting their finances; growing their businesses and securing better education, healthcare and lifestyle prospects. CBI programmes have long been regarded as a ‘Plan B’ for unpredictable times. In the turmoil of the 2020s, there will be increasing need for a bolt hole of safety, for those that can afford them.

Meeting global imperatives CBI is often framed as an insurance strategy benefiting individuals and their families. The reciprocal benefits of investment, accrued by small, economically challenged countries receive less attention. In a world still reeling from the effects of the Covid-19 pandemic, distracted by Russian aggression in Ukraine and scrambling to address impending food and energy crises, two major existential deadlines are being put on the back burner. We must have halved our heat-trapping emissions by 2030 to avoid what the Intergovernmental Panel on Climate Change (IPCC) has deemed irreversible damage. By 2030, we also must have met the 17 Sustainable Development Goals focused on ending poverty. It will take the full mobilisation of every country, according to UN Secretary General, Antonio Guterres, who has called for “networked, inclusive and effective multilateralism.” But at global, and even regional level, this co-operation is proving difficult to achieve. For individual nations, especially low- to mid-income countries, the task is daunting.

Post-pandemic recovery in these countries will be hampered by high levels of sovereign debt. With inflation driving interest rate hikes in advanced economies, loans will be hard to pay back. Global macroeconomic conditions will be challenging, driven by what’s likely to be a protracted crisis in Ukraine and almost certain recession. Without foreign direct investment, these countries will be hard-pressed to provide funding for climate change mitigation and adaptation, and sustainable development projects.

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