Sovereign Equity Instead Of Sovereign Debt: A Paradigm Shift For Governments

Dr. Kälin's contribution to the spring/summer edition of CBI Magazine considers citizenship-by-investment (CBI) from the standpoint of 'sovereign equity', a unique approach that Kälin first pioneered at Davos 2019. Kälin writes:

"There are many sovereign states around the world that lack the ability to raise sufficient revenue and may even at times be locked out of traditional financing through capital markets or international lenders. Many countries find themselves trapped in a pattern of negative debt and have little opportunity to escape their situation through traditional means. Short of discovering natural resources such as hydrocarbons or minerals, the capacity to reduce debt, increase revenue, and attract investments in the country is seriously limited."

Kälin suggests that for countries without natural resources, CBI represents a sustainable alternative to sovereign debt and a unique strategy for leveraging the inherent value of a state in order to attract greater foreign investment.