Selected Issues Papers

The Citizenship-by-Investment Programs (CBI) have long been recognized in their importance to fiscal revenue in the ECCU, but there is less clarity over their broader economic contributions. At the same time, investor demand in this market can be highly unpredictable, especially as the programs have come under increased international scrutiny. This paper takes stock of recent CBI developments in the ECCU and estimates that total investments under these programs far outweigh those directly contributing to government revenue. This underscores the need for ongoing regional efforts to reduce the CBI programs’ risk susceptibility as well as to strengthen management of residual risks, including through: (i) clearer provisions for CBI revenues’ budget use to mitigate fiscal risks; and (ii) enhanced transparency standards and ex-post assessments of CBI projects to inform regional best practices, assessments of the program’s systemic significance, and development of contingency plans.