Too Much of a Good Thing? Prudent Management of Inflows under Economic Citizenship Programs / Xin Xu, Ahmed El-Ashram, Judith Gold.

Format:

Book

Government document

Author/Creator:

Xu, Xin.

Contributor:

El-Ashram, Ahmed.

Gold, Judith.

Series:

IMF Working Papers; Working Paper ; No. 2015/093

IMF Working Papers

Language:

English

Subjects (All):

Capital movements--Management.

Financial risk management.

Public investments.

Sovereign wealth funds.

Local Subjects:

Capital movements--Management.

Financial risk management.

Public investments.

Sovereign wealth funds.

Physical Description:

1 online resource (83 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2015.

Language Note:

English

Summary:

Economic Citizenship Programs (ECPs) have recently been proliferating, with large and potentially volatile inflows of investment and fiscal revenues generating significant benefits for small economies, but also posing substantial challenges. This paper discusses recent developments and implications of such programs for fiscal discipline and the real economy, including risks to macroeconomic and financial stability, with a focus on small state economies. It discusses the prudent management of these programs, overviews strategies to minimize risks to various sectors, and addresses potential governance and integrity challenges. The paper proposes a framework for managing inflows and savings from ECPs to contain macroeconomic risks, and it recommends the establishment of a sovereign wealth fund (SWF) where such revenues are large and persistent.

Contents:

Cover Page; Title Page; Copyright Page; Contents; Appendix; List of Boxes; List of Figures; List of Tables; I. Introduction; II. The Nature and Scope of ECPs; Table 1. Selected Economic Citizenship/Residency Programs Worldwide; Figure 1. Visa Free Access of Selected Countries with ECPs; Figure 2a. Number of Approved Applicants of Selected Programs in 2013; Figure 2b. Number of USD millionaire households; Table 2. Suspended Citizenship Programs; III. The Macroeconomic Impact of ECP Inflows; Figure 3. Inflows under Economic Citizenship Programs

Table 3. Investment Requirements of Selected Citizenship ProgramsIV. Managing Macroeconomic Risks of ECP Inflows; Box 1. Economic Citizenship Program Inflows in Selected Countries; Figure 4. Magnitude and Volatility of GDP Growth; Figure 5. Public Debt of Countries with ECPs; Box 2. Estimating the optimal size of the stabilization buffer in St. Kitts and Nevis; Box 3. Illustrative Guidelines for Building and Utilizing CBI Fiscal Buffers; Box 4. Treatment of CBI Inflows in Fiscal Accounts; Box 5. The Sugar Industry Diversification Foundation in St. Kitts and Nevis

Box 6. The National Transformation Fund in GrenadaV. Institutional and Operational Framework for Saving; Table 4. Summary of Potential Investment Channels for SWFs in Small State Economies; Table 5. SWFs in Small Island Countries; Figure 6. Typical Governance Structure of Autnonomous SWFs; Figure 7a. Publicly Disclosed Information by SWFs; Figure 7b. Frequency of Public Disclosure by SWFs; Box 7. Lessons from SWFs in Pacific Island Countries; VI. Conclusion; Appendix 1. SWFs in Pacific Island Countries; References; Footnotes

Notes:

Description based upon print version of record.

Description based on print version record.

ISBN:

9781484354254

1484354257

9781475551471

1475551479