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Showing posts with label passport. Show all posts
Showing posts with label passport. Show all posts

Friday 22 July 2022

Rich Indians turn secessionist, giving up citizenship. ‘Nationalism’ poor man’s burden

There are some obvious explanations for the rich and endowed Indians, who benefit the most from Indian democracy, leaving their own country writes  Dilip Mondal in The Print


 


Successful Indians are giving up their Indian passport. What started as a trickle, now involves a much bigger volume. In 2020-21, 1.63 lakh Indians renounced their citizenship to take up foreign citizenship. This number is double compared to where it stood five years ago. The US was the preferred destination in 2021. Over 78,000 Indians acquired the American citizenship. Other preferred destinations are also mostly western countries — Australia (23,533), Canada (21,597), UK (14,637), Italy (5,986) and so on.

The question is why are these people giving up the Indian passport at a time when we are entering the ‘Amrit Kaal’, the nomenclature Narendra Modi government is using to define the period between India’s 75th Independence Day and the 100th in 2047? Don’t they love India and the Indian flag? Why are they opting to be adopted sons and daughters? 

The obvious reasons

One thing is for sure: this is not a push migration. Barring exceptions, the people who decided to move are highly educated, rich and privileged. They are not making this choice because they are persecuted, or there is famine or civil war in India.

According to a report of by the London-based global citizenship and residence advisory Henley & Partners (H&P), around 8,000 High Networth Individuals or HNIs will leave India this year. And this is the exodus of the rich and educated.

There are some obvious explanations for the rich and endowed Indians, who benefited most from the Indian democracy, to be giving up citizenship. The most common explanation is that the grass is greener on the other side. Pursuit of economic gains can be a big reason for such decisions. Quality of life is also better in the West and pollution is less menacing.

Another possible reason is that, in countries like the UAE and Singapore, individual tax rates are lower than India.

When the Modi government decided to crack down on black money and tax evaders, many Indians had applied this trick — let family members remain abroad for 182 or more days. This, by rule, made them “non-residents” with foreign accounts and businesses, which could be used by family members to stash money.

Affirmative action policies in India are also blamed for the exodus of Indians and that gives a hint that which social group is mostly migrating. The Economist has written in one of its commentaries that the Brahmins are forced to leave the country because of affirmative-action policies in India. Though this argument doesn’t hold good because affirmative action is only for the government jobs, which constitutes a miniscule percentage of the entire job market. In high-paying jobs, that percentage is further reduced.

Many may also be converting their H1B visas because India doesn’t allow dual citizenship.

Having the ‘means’ to an ‘end’

My explanation for this exodus from the status of being an Indian citizen is twofold. One, successful Indians already have strong secessionist tendencies and two, they leave because only such people have means to leave.

If we check the urban elite spaces, we can easily see those secessionist tendencies of the rich. Their colonies or apartments have their own security systems, reverse osmosis water supply, private power generator sets, and even private recreational spaces. These colonies, in a way, function as separate micro nations. Their interaction with the State is manifested only when some crime or calamity happens. Most of these colonies are gated communities and RWAs are like a government there. In many metropolitan towns, RWAs in elite colonies erect gates at public roads and limit access to public parks and other government facilities.

In this case, there is a class in India that has actually become “independent” or “autonomous.” This class almost never uses government hospitals or educational facilities. It’s a big problem that they have to breathe the same air, but air purifiers have solved this problem also. Covid-19 proved to be a leveller when the elites were forced to share these spaces with the underclass, but that is one of exceptions. Under normal circumstances, there is a separate private infrastructure to cater to their requirements. This class goes abroad to spend holidays. This class sends their kids to the schools affiliated to international boards. Global citizenship and global village is not some distant idea or concept for them. There are people in India who live these concepts and migrate at the first opportunity.

Being part of this group is not at all bad. The fact is that the underclass aspires to enter these spaces not as trespassers but as legitimate members. Rich people are their role models. I am of the view that this aspiration is good and brings hope. ‘Satisfaction’ or ‘contentment’ is the word I hate. Only problem is that the Nehruvian Model of socialism never facilitated such transitions for the masses. Because of the extremely slow growth of the Indian economy in the formative decades of the nation, socialism became a model to distribute poverty. There was, in fact, not much to trickle down. The entrepreneurial potential of the nation was curbed.

I am not blaming any person for that economic catastrophe. Early years after Independence were tumultuous and the decision makers must be keeping many factors while making economic decisions. But we must admit that the State socialism model failed to produce a big middle class. Rather, large masses remained poor and lacked capacity to uplift their life. In rural India, by and large, the feudal structure continued. As contribution of agriculture in the GDP declined and population load on the agrarian economy did not reduce substantially, rural prosperity remained elusive for a large swath of masses. Despite change in course in economic policy in the 1990s, the size of Indian middle class continued to remain small. This should be a matter of utmost concern for the present policy makers. Increase in the size of the middle class is important as this will democratise the process of migration. This is an opportunity which should be available to one and all.

This brings us to the second question.

As granting citizenship in the western world, especially in the top-5 destinations for Indians, has been tightened over the years, one must have a certain financial and educational threshold to migrate to these countries. That threshold itself will put this group in the top one per cent of the Indian population. Especially, in the US, which accounts for almost 50 per cent of Indians migrating, H1B visa or other modes of long-term and permanent residency is mostly given to the highly skilled and highly paid individuals. This restriction acts as a barrier for most Indians to even think of migrating to that country.

In any case, as rich Indians are picking foreign passports and others are probably dreaming to renounce their Indian citizenship at the first opportunity, the sanctimoniousness of discourses like ‘national pride’ and ‘love for one’s own nation’ should be reframed.

With India integrating with the global economies, the national boundaries may blur more and more. Till then, the poor and underclass in India has to carry the burden of flag-waving nationalistic pride. Their role models are leaving.

 

Saturday 2 June 2018

Citizenship for sale: how tycoons can go shopping for a new passport

Jon Henley in The Guardian


It’s the must-have accessory for every self-respecting 21st-century oligarch, and a good many mere multimillionaires: a second – and sometimes a third or even a fourth – passport.

Israel, which helped Russian billionaire Roman Abramovich out of a spot of bother this week by granting him citizenship after delays in renewing his expired UK visa, offers free nationality to any Jewish person wishing to move there.

But there are as many as two dozen other countries, including several in the EU, where someone with the financial resources of the Chelsea football club owner could acquire a new nationality for a price: the global market in citizenship-by-investment programmes – or CIPs as they are commonly known – is booming.




The ‘golden visa’ deal: ‘We have in effect been selling off British citizenship to the rich’



The schemes’ specifics – and costs, ranging from as little as $100,000 (£74,900) to as much as €2.5m (£2.19m) – may vary, but not the principle: in essence, wealthy people invest money in property or businesses, buy government bonds or simply donate cash directly, in exchange for citizenship and a passport.

Some do not offer citizenship for sale outright, but run schemes usually known as “golden visas” that reward investors with residence permits that can eventually lead – typically after a period of five years – to citizenship.

The programmes are not new, but are growing exponentially, driven by wealthy private investors from emerging market economies including China, Russia, India, Vietnam, Mexico and Brazil, as well as the Middle East and more recently Turkey.

The first launched in 1984, a year after young, cash-strapped St Kitts and Nevis won independence from the UK. Slow to take off, it accelerated fast after 2009 when passport-holders from the Caribbean island nation were granted visa-free travel to the 26-nation Schengen zone.

For poorer countries, such schemes can be a boon, lifting them out of debt and even becoming their biggest export: the International Monetary Fund reckons St Kitts and Nevis earned 14% of its GDP from its CIP in 2014, and other estimates put the figure as high as 30% of state revenue.

Wealthier countries such as Canada, the UK and New Zealand have also seen the potential of CIPs (the US EB-5 programme is worth about $4bn a year to the economy) but sell their schemes more around the attractions of a stable economy and safe investment environment than on freedom of movement.

Experts from the many companies, such as Henley and Partners, CS Global and Apex, now specialising in CIPs and advertising their services online and in inflight magazines, say that unlike Abramovich, relatively few of their clients buy citizenship in order to move immediately to the country concerned. 

For most, the acquisition represents an insurance policy: with nationalism, protectionism, isolationism and fears of financial instability on the rise around the world, the state of the industry serves as an effective barometer of global political and economic uncertainty.
But CIPs are not without their critics. Malta, for example, has come under sustained fire from Brussels and other EU capitals for its programme, run by Henley and Partners, which according to the IMF saw more than 800 wealthy individuals gain citizenship in the three years following its launch in 2014.

Critics said the scheme was undermining the concept of EU citizenship, posing potential major security risks, and providing a possible route for wealthy individuals – for example from Russia – with opaque income streams to dodge sanctions in their own countries.

Several other CIPs have come under investigation for fraud, while equality campaigners increasingly argue the moral case that it is simply wrong to grant automatic citizenship to ultra-high net worth individuals when the less privileged must wait their turn – and, in many cases, be rejected.


The Caribbean


The best-known – and cheapest – CIP schemes are in the Caribbean, where the warm climate, low investment requirements and undemanding residency obligations have long proved popular. Five countries currently offer CIPs, often giving visa-free travel to the EU, and have recently cut their prices to attract investors as they seek funds to help them rebuild after last year’s hurricanes. In St Kitts and Nevis a passport can now be had for a $150,000 donation to the hurricane relief fund, while Antigua, Barbuda and Granada have cut their fees to $100,000, the same level as St Lucia and Dominica.


Europe

Almost half of the EU’s member states offer some kind of investment residency or citizenship programme leading to a highly prized EU passport, which typically allows visa-free travel to between 150 and 170 countries. Malta’s citizenship-for-sale scheme requires a €675,000 donation to the national development fund and a €350,000 property purchase. In Cyprus the cost is a €2m investment in real estate, stocks, government bonds or Cypriot businesses (although the number of new passports is to be capped at 700 a year following criticism). In Bulgaria, €500,000 gets you residency, and about €1m over two years plus a year’s residency gets you fast-track citizenship. Investors can get residency rights leading longer term to citizenship – usually after five years, and subject to passing relevant language and other tests – for €65,000 in Latvia (equities), €250,000 in Greece (property), €350,000 or €500,000 (property or a small business investment fund) or €500,000 in Spain (property, and you have to wait 10 years to apply for citizenship).


Rest of the world

Thailand offers several “elite residency” packages costing $3,000-$4,000 a year for up to 20 years residency, some including health checkups, spa treatments and VIP handling from government agencies. The EB-5 US visa, particularly popular with Chinese investors, costs between €500,000 and $1m depending on the type of investment and gives green card residency that can eventually lead to a passport. Canada closed its CA$800,000 (£460,000) federal investment immigration programme in 2014 but now has a similar residency scheme, costing just over CA$1m, for “innovative start-ups”, as well as regional schemes in, for example, Quebec. Australia requires an investment of AU$1.5m (£850,000) and a net worth of AU$2.5m for residency that could, eventually, lead to citizenship, and New Zealand – popular with Silicon Valley types – an investment of up to NZ$10m (£5.2m).

Monday 13 April 2015

Hospital patients to be asked about UK residence status

BBC News

Patients could be made to show their passports when they use hospital care in England under new rules introduced by the Department of Health.

Those accessing new treatment will be asked questions about their residence status in the UK.

Patients may need to submit passports and immigration documents when this is in doubt, the department said.

Hospitals will also be able to charge short-term visitors from outside Europe 150% of the cost of treatment.


-----Also read

UK TOURISTS BEWARE – Cambridge Hospital Staff Demand Instant Money from Sick and Ailing Indian Tourist


-------

The department said the new rules came into force on 6 April for overseas visitors and migrants who use NHS hospital care in England.

Primary care and A&E care will remain free.

There will also be financial sanctions for trusts which fail to identify and bill patients who should be charged, it said.

The plans are part of a crackdown on so-called "health tourism".

Andrew Bridgen, the Tory MP for North West Leicestershire in the last Parliament,told the Daily Mail: "This is not the International Health Service, it's the National Health Service.

"Non-UK nationals seeking medical attention should pay for their treatment.

"The NHS is funded by UK taxpayers for UK citizens and if any of us went to any of these countries we'd certainly be paying if we needed to be treated."

Most foreign migrants and overseas visitors can currently get free NHS care immediately or soon after arrival in the UK but they are expected to repay the cost of most procedures afterwards.

The charges are based on the standard tariff for a range of procedures, ranging from about £1,860 for cataract surgery to about £8,570 for a hip replacement.

Non-UK citizens who are lawfully entitled to reside in the UK and usually live in the country will be entitled to free NHS care as they are now.

Thursday 19 June 2014

Should Indian passports be renamed as Indian stopports

Jug Suraiya in the Times of India

Should Indian passports be called ‘stop-ports’, in that people who have them are routinely stopped from entering foreign countries, or even transiting through them?
This happens all the time. Recently, Bunny’s cousin and his wife who were going to visit their daughter who is settled in the US had their family plans ruined when the Canadian authorities refused them permission to transit through Toronto airport on their flight to the US. The reason? They did not have a Canadian visa.
They argued that since they are not going to actually enter the country, but would only be in a cordoned-off area in the airport, and as such there was no logical reason why they should require visas. Such reasoning was of no avail. If you are unfortunate enough to have an Indian passport, you cannot even pass through a Canadian airport without a visa. What next? That if you have an Indian passport you can’t even look at a map of Canada without a visa?
Canada is not the only country where an Indian passport is treated like a stop-port. A couple of years ago, Bunny was denied entry to Finland. Why? Because though she had a valid Schengen visa – which Finland accepts – it was stamped not on her new passport but on her old passport which was stapled onto the new one.  The US, and all European Union countries, accept valid visas stamped in an old passport, if this is attached to the new passport. But not Finland. Bunny was turned back from Heathrow airport where she was to board the flight to Helsinki, losing out on the airfare and the hotel in Finland that had already been paid for.
To add insult to financial injury, some other passengers who were not Indians but who also had a similar visa problem were allowed entry by the Finnish authorities. The message was clear: if you have an Indian passport, you’re not just a second-class citizen of the world but a third-class citizen.
The reason for this is obvious, and known to everyone. Sixty-seven years after Independence, economic conditions for the majority of India’s population are so terrible that this country has become globally notorious for its illegal immigrants, who’ll risk any hazard to find employment and a new life in a foreign land.
It is to India’s shame that the country forces so many of its citizens to become economic refugees, to be exploited and ill-treated in alien and often hostile climes. To make matters worse, the Indian government grants visas on arrival to citizens of Finland and many other countries which discriminate against Indian travellers.
By doing this, our sarkar tacitly accepts that in the eyes of the global community, India is a third-class country of third-class citizens.
India’s new Prime Minister is known to be a no-nonsense person, who can not only talk tough but act tough when necessary. It’s time that countries which openly discriminate against Indian citizens be deterred from doing so by being given a taste of their own bitter medicine.
Canadian passport? Finnish passport? Sorry, no swagatam for you guys.

Wednesday 11 December 2013

Malta selling EU passports to foreign investors for £546,000

Want to buy citizenship? It helps if you're one of the super-rich

Malta has announced it is selling passports to foreign investors for £546,000, but that's cheap compared with other countries, such as Britain and the US
A UK passport
A foreign investor looking to get a passport for an EU country would be better off looking at Malta's citizenship deal. Photograph: Alamy
Citizenship is like rhythm: if you weren't born with it, it's not easy to get. However, in the EU there is a fast-track for the super-rich. The Maltese government now has a scheme to attract "high-value" foreigners to the country, by selling passports for £546,000. Which, by passport standards, is pretty cheap.
The move has ruffled feathers in the UK. In part, because of worries about unchecked immigration; the passport grants its holders full EU citizenship, including freedom of movement (Maltese citizenship also come with a visa waiver on entry to the US). Labour's shadow immigration minister, David Hanson, told the Financial Times the move risked being "a backdoor route" to EU residence and was "not a tight or appropriate immigration policy". The government faces calls from British and European politicians to intervene and put a stop to the plan.
But the main reason the UK is annoyed is not because we worry foreign millionaires will come here to claim benefits. It is probably that Malta's scheme is more attractive than our own deal for super-rich settlers. The British equivalent, the Tier 1 (Investor) visa programme, assesses applicants on the basis of their ability "to invest £1,000,000 in the UK". Foreign investors who hold £10m of their money here can apply for permanent residence after two years living in the country. Compared to Malta's plan, it looks like a load of hassle.
About 20 countries operate similar systems. In the US, Immigrant Investor Visas are awarded to foreign nationals who invest $1m in the economy and create 10 full-time jobs for US citizens within two years of arrival. Those who do so are awarded permanent residence and, after three more years, can apply for full citizenship. In the Canadian province of Quebec, "Immigrant Investors" must invest $800,000 CAN (£457,000) in an interest-free, five-year bond and show at least two years of proven management experience. (Canada suspended its nationwide immigrant investor programme in July 2012 but Quebec's continues.)
The European schemes tend to be more lenient. Greece, Cyprus and Macedonia offer fast-track resident permits for foreign investors who spend a minimum of €250,000 to €400,000 (£210,000 to £335,000) in the country. Spain grants a residency visa to foreign buyers who spend €500,000 (£418,000) or more on Spanish property, though the wait for permanent residency and EU citizenship is five years.
The major beneficiaries of such schemes are the Chinese global rich. Since October last yea, 318 residence permits have been issued in Portugal to foreign property buyers who spent over €500,000. Of these, 248 went to Chinese nationals; 15 went to Russians, and nine each to Angolans and Brazilians.
The Maltese system may be the most open of the lot: its applicants do not need to be resident in the country, and are not expected to prove any further investment in the islands' economy. It is expected to attract around 40 people in its first year, rising to 300 a year from 2014.
But their stay may be short-lived. Polls show 53% of Maltese oppose the move, and the opposition leader, Simon Busutil of the Nationalist Party, has pledged to revoke the passports if returned to power. In fairness to him, it won't be hard to expel citizens who have never actually lived there in the first place.