CBI programme is helping small nations withstand effects of climate change, report says
The 2022 CBI Index has emphasized the importance of the Citizenship By Investment (CBI) programmes on small islands, calling it a “tool to finance stronger, more resilient economies” in its latest report.
According to the special report annually released by the Financial Times, CBI is allowing many of these Small Islands Developing States (SIDS) “to fulfil their true ambitions to become independent, developed, prosperous countries.”
“If it were not for CBI programmes, many of these nations would be unable to source the revenues to recover from the destruction of their communities and build back better and stronger,” the report said.
“In St Kitts and Nevis and Dominica for example, the inflows have improved fiscal outcomes, facilitated debt repayment and spurred economic growth,” it revealed, adding that research by the International Monetary Fund (IMF) corroborated this.
The CBI Index this year has Dominica dominate five of the nine pillars that form the index, retaining its top rank for six consecutive years.
Dominica has been maximizing its CBI programme to fund its Housing Revolution Programme (Integrated Housing Development), which aims to provide new, modern, integrated, and climate-resilient housing to low- and middle-income families.
Developed through Public-Private Partnership, these housing programs have sprung out across Dominica. To date, about 2,000 housing units have been completed by MMC Development Ltd., a private firm based in Dubai.
With CEO Anthony Haiden at the helm, MMC Development Ltd. is also the mandated overseer of eight on-going projects on housing, and a few more projects on health care, transportation, and education.
The report said that if Dominica aims to become the world’s first climate-resilient nation, “it will require US$4bn to US$5bn in funding to do this, and CBI could play a key enabling role.”
“It’s a model that could be applied to other vulnerable nations needing sustainable climate solutions into the future,” CBI Index has said.
“Taking a medium-term view, to 2030, it’s a trend that is set to continue. Political fragmentation and growing authoritarianism; economic policy uncertainty and corruption; social polarisation and civil unrest; and changing weather conditions will make many home shores an unreliable bet into the future. It bodes well for CBI programmes,” the report concluded.
Download the CBI Index report here.