Second Citizenship as a Shield Against the Aftermath of Price Regulation

The populist price regulation across all sectors, from hotels to pharma, can lead to a scope of negative consequences, including shortages of critical goods and services, discouragement of foreign investors, hyperinflation, bankruptcies, and even riots. To avoid the wake of such adversities, you can apply for a second citizenship and a foreign passport in a trouble-free country. 

Ancient and Modern History Lessons for Persons Seeking a Second Citizenship

Over four thousand years ago (around 2112 BC), the Sumerian king Ur-Nammu composed the oldest known law code in the world, The Code of Ur-Nammu. The laws were inscribed in the cuneiform tablets. A few Code fragments were unearthed and translated in the 20th century. The surviving texts reveal how criminal matters were handled. For instance, the king prescribed capital punishment for murder and robbery). Besides, some laws included provisions for price control.

Centuries later, Hammurabi, king of Babylon, created the Code of Hammurabi. It is known chiefly for its “eye for eye and tooth for tooth” concept. Many provisions were also devoted to fixing wages and prices and regulated finance and trade.

The penalties tended to be very harsh. For example, the king of Babylon decreed that any man who did not pay his debts on time had the right to repay his creditors by subjecting his wife, son/daughter to forced labor for a period of three years…regardless of the amount of the debt.

The Code of Hammurabi established the prices and charges for grain storage, delivery, divorcees, livestock, and even drinks at local beer outlets. Several laws were devoted to wages. The Babylonian ruler saw fit, for example, to limit the salaries of house builders – the amount of the fee depended solely on the size of the house being constructed.

Similarly, the Code sets wages for several other occupations, including agricultural workers, bull handlers, shipbuilders, shepherds, skilled artisans, etc.

Other rulers took the same course of action. In particular, historians cite evidence of price controls in ancient Egypt. The ancient Indian philosopher Chanakya, also called Kautilya or Vishnugupta, advised kings not only to fix prices but also to limit the maximum profit of merchants and manufacturers. One may also recall the infamous Decree of the Roman Emperor Diocletian on Wages and Prices, issued in the early 4th century AD.

For millennia, wage and price controls, financial controls, and commercial controls have been desperately yet vainly imposed by rulers. History shows that these measures never justify expectations. Nevertheless, like madmen, politicians try the same hazardous tactics over and over again, apparently hoping for a different result.

Argentina, which has always suffered from economic chaos, is a clear example of the futility of such policies. A similar story is in Venezuela – one of the most prosperous South American nations in the 20th century and virtually the most dangerous place to live in today, with a shamefully low standard of living.

What’s wrong with their approaches? The South American governments first trigger the crisis by regulating prices and wages, then aggravate the situation by confiscating assets of the wealthiest citizens “for the sake of the nation” and “in the name of revolution,” impose taxes on wealth, declare debt default, ban exports, and wreck the national currency.

As the inflation rate in Argentina escalated to 50% in the first 6 months of 2021, no one in their right mind today keeps their savings in Argentine pesos. Inflation in Argentina is now so high that the government has recently introduced some of the toughest price controls. This has led to a halt in the supply of products by a number of manufacturers, including those in agriculture. The reason is simple: the price thresholds set by the government were below the production cost. 

Moreover, our trusted experts, who cannot be named for security reasons, say that the Argentine authorities intend to prohibit companies from laying off workers. If a company, due to the dire economic situation, does not have funds to pay its employees, the government will still oblige the management to somehow keep them and pay wages that the companies cannot afford.

Unfortunately, price controls are gaining momentum in many countries amid the COVID-19 pandemic. The declared goal is to curb the growing prices of popular goods, medicines, and services. Nevertheless, such measures will inevitably curtail production, prompt commodity shortage, hyperinflation, and other negative after-effects.

To avoid such troubles, you can apply for a second citizenship and passport in a country with a safer environment.

The Caribbean Second Citizenship

5 countries in the Caribbean region (Antigua, Grenada, St. Kitts, St. Lucia, and Dominica) offer the opportunity to obtain a second citizenship by investment/donation very quickly (2-6 months) and without a need to travel there in person. In these countries, there is no price regulation, and market competition thrives.

The good news is: the entry threshold for applicants for economic citizenship has dropped to an unprecedented low of $100,000 (plus some administrative fees and the fee of the licensed agent who submits the papers on your behalf). Some states offer attractive temporary options with discounts off the standard rates. Let’s consider two examples.

St. Kitts passport for investment in liquid real estate

• Until 01.11.2022, local authorities have commitments to issue a second citizenship to buyers of any residential real estate located in the country if the applicant invests a minimum of $ 400,000 with a five-year holding period. Applicants can invest only in low-liquidity development projects pre-approved by the local government. This circumstance complicates the resale of real estate after the compulsory holding period.

50% discount on citizenship through corona bonds in St. Lucia

• Until December 31, 2022, foreigners applying for a second citizenship in Saint Lucia can get it at a 50 % discount. This offer is valid in the case of obtaining a Caribbean passport through the purchase of government bonds worth $250,000 (instead of the previous $500,000 bond option). Withdrawals of investment are eligible only after a five-year holding period. If the principal investor’s relatives are included in the second citizenship application for the bonds, the investment amount and the mandatory holding period are slightly increased.

Expert Assistance for Those Wishing to Obtain a Second Citizenship

Today, many governments seek to exert tight control over economic resources, labor markets, and prices. The particular tactics are country-specific but are very similar to the approaches taken by the Argentine authorities, as well as to those of Hammurabi, Ur-Nammu, and Diocletian millennia ago.

The lesson learned is as follows: price controls and centralized planning are devastating for production and supply. They step up inflation, cause bankruptcies, deadly riots, more challenging problems. 

However, the authorities rarely bother to conduct an objective analysis of the costs and benefits of wages, prices, and commercial controls. The more such leaders try to “save the world” by imposing control over “the just prices for all,” the greater the likelihood of a disaster.

To protect yourself, your loved ones, your own business, and your valuable assets, you can acquire a second citizenship. The procedure can be faster if you join the RBI/CBI program and offer to the host country your donation or investment in the required amount. InternationalWealth provides customized solutions and personalized services to high net worth individuals interested in obtaining second citizenships through investments.

Investment in a second citizenship is an important decision with many variables. Our experts hold extensive experience and an exemplary reputation for providing immigration services to clients. We can help you choose the investment program that fit your status and meet your needs.