Nations like Bermuda and the Cayman Islands that have limited scope for economic development through conventional strategies can benefit from big-ticket investments made by high net worth individuals. Economic investments, educational scholarships, and other social commitments made by wealthy residents result in economic growth, job creation, and overall betterment of poorer fellow citizens.<\/p>\n
Supporters of commercial immigration or investment immigration schemes highlight the significant benefits of investment decisions of wealthy residents when encouraging governments to boost economic growth through such schemes.<\/p>\n
The Bermuda government considered introducing such a program in 2012-13 but backtracked when the proposal was met with criticism and opposition. Despite its economic benefits, investment immigration is a sensitive political issue involving emotive issues including the sale of passports, social integration of foreign investors, and doubts about the ground-level impact of such programs.<\/p>\n
Investment immigration experts describe Bermuda\u2019s decision to step away from investment immigration as a significant missed opportunity. They assert that Bermuda could have benefited substantially by offering residency or citizenship to just 100 wealthy investors in lieu of minimum investments of just $5 million each.<\/p>\n
The issue in case of Bermuda is the fact that majority of Bermudians are against the idea of offering citizenship or permanent residence against mere economic investment. An overview of successful programs indicates that emphasis on quality and enforcement of strict due diligence norms can help maintain the integrity and popular appeal.<\/p>\n
The US EB-5 program, established in 1990, offers permanent residence to investors contributing at least $1 million to businesses in the country and which create 10 jobs. For those investing in economically disadvantaged, this limit is reduced to just $500,000. It is estimated the EB-5 program has resulted in inflow of FDI worth $5 billion into the country along with creation of around 85,500 full-time jobs. \u00a0\u00a0It success is confirmed by the recent extension of the program through December 11th<\/sup> 2015, which new legislation is being formulated that will raise the investment and related criteria.<\/p>\n While this may not seem significant considering the size of the US economy, there is no doubt that such a program will be very beneficial for a country like Bermuda even if implemented on a much smaller scale.<\/p>\n With the US program also being criticized for instances of lack of oversight, fraudulent applications, and questionable interpretation of rules, implementing a successful program in a country like Bermuda could require a much higher investment limit.<\/p>\n Those seeking the introduction of such programs point out those applicants making large investments can create significant employment in the country and this arguably would impact favourably to the community. The trickle-down or ripple effect of such ventures will, in the long run, have a transformative effect on the nation as a whole.<\/p>\n With Bermuda struggling to cope with issues like a prolonged recession, a phase of consolidation in insurance sector, which is the key industry in the country, and an ageing population, a proactive citizenship by investment program targeting a few wealthy families could make a significant financial, economic, and social impact in the nation.<\/p>\n General Information: <\/strong>Contact Us<\/strong><\/a> to receive more information about this article.<\/p>\n