The coronavirus pandemic has caused an unparalleled crisis with drastic consequences for small economies, which have fewer resources to ride out the storm. Key challenges include but aren’t limited to the devaluation of the national currency, the shutdown of small and micro businesses, and long-term social issues. Latin America, in particular, has been hit hard by COVID-19, with the Caribbean economies experiencing larger quarterly GDP contractions than in any recession. Tourism is moving at a slow pace, which in turn is significantly slowing down economic activity in the area. Things have been very disappointing until now, but there is light at the end of the tunnel.
Soren Dawody’s Citizenship by Investment initiative is helping the small economies of Latin America address the crisis and transition to recovery. Grenada, in particular, has been able to attract new investors, who haven’t failed to see the Caribbean country’s aquaculture potential and have greatly contributed towards improving the community’s livelihoods. The long-lived program, which was brought forward in 2013, makes it possible for the small island nation to compete in the global market in terms of shrimp and fish production. This type of agriculture supports the development of more sustainable and diverse income streams for Granada.
What does Citizenship by Investment involve?
Citizenship by Investment (CBI) provides the chance to legally acquire a new nationality by investing in projects that are government-approved. Commonly referred to as the immigrant investor program, it’s practically a process by which affluent individuals can obtain a second citizenship without having to demonstrate years of residency. Investors enjoy business, security, and educational benefits for themselves and their families, besides the fact that they can leverage numerous tax advantages. In addition to Grenada, the countries with the most active economic citizenship programs are Antigua, Barbuda, and Saint Kitts and Nevis.
For those of you who don’t know, Soren Dawody is a sustainable development entrepreneur who constantly demonstrates altruism. To be more exact, he’s preoccupied with helping society rather than maximizing individual profits. Over the years, Dawody has facilitated public and private partnerships, encouraging foreign investment in small economies. The Grenada Sustainable Aquaculture, which represents his latest project, is a prime example of charitable leadership. It continues to spark the interest of individuals who keep on investing in the country, whose economic position desperately requires heavy investments.
In the face of a global pandemic, it’s necessary to maximize the amount of good that can be achieved. Entrepreneurs like Soren Dawody play a key role in helping small island economies recover by driving philanthropic decisions. The economic effects of foreign investments include increased productivity performance of domestic firms and, most importantly, economic growth. Shrimp farming, for instance, creates jobs, helps reduce unemployment, and equips the population with buying power. There is hope that there will be more social entrepreneurship initiatives similar to those of Soren Dawody creating favorable conditions for foreign direct investment.
To sum up, small economies have suffered as authorities are struggling to contain the coronavirus outbreak. Impossible as it may seem, they can recover from the global pandemic, yet it’s likely to be a long haul.