Building a resilient Caribbean through citizenship tax

OPINION by Armand Arton, Founder & President, Arton Capital

The past year’s hurricane season in the Caribbean exhibited some empathy following the catastrophic trail of storms in 2017. Documented as one of the strongest hurricanes ever observed in the Atlantic, Hurricane Irma hardly left a tree or building standing in Barbuda, and a few weeks later, Hurricane Maria followed suit, devastating the island of Dominica. The severity of the hurricane’s impact was recorded and streamed live on Facebook by Prime Minister Roosevelt Skerrit.

“We do not know what is happening outside,” Skerrit posted on the social media site. “We not dare look out. All we are hearing is the sound of galvanize flying. The sound of the fury of the wind. As we pray for its end!”

“We do not know what is happening outside,” Skerrit posted on the social media site. “We not dare look out. All we are hearing is the sound of galvanize flying. The sound of the fury of the wind. As we pray for its end!”

With winds of up to 160mph, the Category 5 storm pummelled the island on September 2017, as it swept with belligerent force across a region already reeling from Hurricane Irma. The nightmare did eventually come to an end, but it left a trail of destruction in its wake.

Although the Caribbean collectively sighed with relief for escaping such an incident this past year, the islands continue to remain vulnerable. From severe drought to flooding and high winds, they are at the frontline of climate change, and the culprits are evident.

Several celebrities who have homes in the region also pledged their support. Robert De Niro, the Oscar-winning actor, said that Barbuda is facing “a humanitarian crisis with an entire island destroyed,” when he spoke at a high-level meeting at the United Nations following Hurricane Irma.

“We must act together to help the most vulnerable,” De Niro said. “The recovery process will be a long, hard road. Barbudans must be a part of it, their homes repaired stronger and rebuilt stronger. The immediate needs — power, water, food, medical care— must be met.”

“We must act together to help the most vulnerable,” De Niro said. “The recovery process will be a long, hard road. Barbudans must be a part of it, their homes repaired stronger and rebuilt stronger. The immediate needs — power, water, food, medical care— must be met.”

And he was right, these vital needs had to be met—but there was one challenging question: how would they fund it?

During the regional crisis, the Prime Minister of Antigua & Barbuda, the Honourable Gaston Browne, estimated that the rebuilding cost in the sister islands alone would be close to US$250 million, which is 20% of Antigua & Barbuda’s gross domestic product (GDP). This is not the first, nor the last time these islands will remain vulnerable to the destruction caused from the unpredictable force of nature under the pressures of global warming. As a business owner operating in the region, but more essentially as a Global Citizen, I believed it to be both a corporate and social responsibility to think beyond and find solutions to better shield the Caribbean.

Twelve years ago, when I was living in Canada, I discovered the significant influence, impact and resources that citizenship by investment (CBI) programs can offer to nations in need and decided to launch my company. Since then, Arton Capital has become a leading government advisory practice that helps shape and support investment migration policies around the globe. Without losing focus on the potential of these programs, we have continued to innovate and encourage countries to draw maximum benefit from them. Although the dynamics of our business seem complex, the underlying mission is simple: spearheading responsible globalization. By encouraging high-net-worth individuals from around the world to make significant contributions to nations in need through a stringent system, we are concurrently enabling governments to strengthen and reinforce their communities.

Although the dynamics of our business seem complex, the underlying mission is simple: spearheading responsible globalization.

The five Eastern Caribbean countries that participate in CBI programs – Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis and Saint Lucia – are discovering the real benefits of these programs. The World Bank, for example, reports that St. Kitts & Nevis receives nearly 40% of its GDP from its CBI efforts. New hotels, resorts, and development projects under the program are not only enhancing the nation’s economy by attracting tourism, but also by providing jobs for the locals. Now, how does this tie in with battling the effects of climate change in the region?

The Global Citizen Duty

Without global action, it is estimated that by the end of this century, the Caribbean region will warm a further 2-3ºC over the 1ºC already seen in the last century, with sea levels rising by 1-2 metres, far exceeding the rise already recorded. Annual rainfall is expected to decrease by up to 40%, posing a significant challenge to the already water-stressed islands.

Global citizens never underestimate the access and opportunities provided to them through these programs, and understand that with this great power, also comes great responsibility.

Given that these catastrophic effects are a direct consequence of human activity, it becomes our duty to find efficient and sustainable methods to better deal with the repercussions. Global Citizens never underestimate the access and opportunities provided to them through these programs, and understand that with this great power, also comes great responsibility.

Resilience is Attainable

There are multiple ways to raise much needed resources from these programs to help strengthen the nation. A 2% Citizenship Tax on every Caribbean CIB could bring in US$20 million per year, enough to pay common insurance premium to cover all the government buildings, hospitals and schools, and most vitally, be used as a rapid relief fund.

Previously, the proposed Citizenship Tax in Europe redirected 2% of CIP investments toward urgent refugee causes. Within the last three or four years, Arton Capital has been at the forefront of making the link between the wealthy immigrant and the refugee. While many of our clients are some of the wealthiest people coming from war-torn countries and can afford to invest thousands, or sometimes millions, to access a better life for their kids, hundreds of thousands of their compatriots are risking their lives crossing the sea for the same reason. Through these donations, we have managed to provide the same opportunities to those who needed it the most.

At the time of the hurricane, Barbuda needed immediate support which was not readily available. With funds gathered from the Citizenship Tax, the nation would have been able to reinforce proper infrastructure and explore other ways to limit the impact of climate change. Although our recent efforts have been aimed at rebuilding Barbuda, our primary attention is focused on finding sustainable solutions to better prepare the island and its population for the inevitable. Using the funds from the Citizenship Tax and redirecting our resources to combat the catastrophic effects of climate change, we believe that we can help build a resilient Caribbean.

Social Responsibility is in our DNA

When nations open their doors to us, we are given the opportunity to contribute to a safer and brighter future. In conjunction with program requirements, Arton Capital further encourage clients to make an additional contribution or donation, which is then matched by the company. This philanthropic gesture, no matter how big or small, is just a fragment of the vast network of compensation and benefits CBI programs are able to provide to the world.

As a living example of a successful economic migrant, I strongly believe that with global citizenship also comes global responsibility. My own journey, rooting from my Armenian heritage, to being born in Bulgaria, then moving to Morocco, being raised in and around Europe, and then settling in Canada, has ignited my current role as an ambassador of the global citizen movement. As a Global Citizen, I realize that with this extra access, I not only have the option, but the obligation to make the world a better place. It has universally become my home, after all.