Dr. Adrian Joseph highlights growing concerns over Grenada’s economic stability as Citizenship by Investment (CBI) revenues become increasingly integral to the nation’s fiscal framework. Recent travel restrictions imposed by the United States on Caribbean nations utilizing CBI programs have amplified scrutiny on these revenue streams, prompting urgent calls for policy reassessment.
Financial data from January to July 2025 reveals IMA/CBI contributions reached EC$117 million, accounting for approximately 14% of Grenada’s total revenue of EC$540 million. This places CBI revenues nearly equivalent to import duties and exceeds combined revenues from petrol tax, stamp tax, excise tax, and environmental levies. Despite overall revenue performance remaining on target, the country continues operating under deficit conditions, with CBI funds increasingly supporting recurrent expenditures rather than strategic investments.
The article presents a household budget analogy: traditional tax revenues (VAT, income tax, import duties) represent stable employment income, while CBI revenues resemble unpredictable windfalls. This dependency creates significant vulnerability to external factors including geopolitical shifts, regulatory changes, and international policy decisions beyond Grenada’s control.
Analysis demonstrates concerning scenarios: a 10% reduction in CBI revenues would decrease total revenue by 1.4%, while a 50% reduction would result in a 6.9% overall revenue decline. Recent regional developments suggest these are not hypothetical concerns, as increased scrutiny affects all Caribbean CBI programs regardless of individual management quality.
Dr. Joseph proposes a five-point strategy for fiscal resilience: ring-fencing CBI revenues for capital investment and debt reduction; establishing stabilization buffers for revenue shocks; improving domestic revenue mobilization through compliance rather than increased burden on vulnerable populations; pursuing genuine economic diversification through agriculture, tourism, digital services, and renewable energy development; and maintaining rigorous transparency and international engagement.
The conclusion emphasizes that nations relying on exceptional revenues for recurrent obligations lack true fiscal security. While not advocating CBI program abandonment, the analysis urges immediate policy introspection to build economic resilience before external pressures force abrupt adjustments.