A leading Caribbean economist has declared the demise of the region’s lucrative ‘golden passport’ programs, following intensified pressure from European nations and international regulatory bodies. Professor Don Marshall, Director of the Sir Arthur Lewis Institute of Social and Economic Studies at the University of the West Indies, warned that Caribbean nations must fundamentally rethink their economic strategies beyond citizenship-by-investment (CBI) schemes.
The warning comes in response to the European Union’s escalating scrutiny of CBI programs, culminating in a landmark December 19th report that builds upon April’s European Court of Justice ruling against Malta’s program. The EU’s Eighth Report under the Visa Suspension Mechanism establishes that Caribbean nations must implement rigorous security safeguards or completely restructure their economic approaches to maintain visa-free access to European countries.
Professor Marshall criticized what he described as a fundamental imbalance in global financial regulation, noting that while Caribbean nations face pressure to abandon CBI programs, EU countries themselves facilitate anonymous financial flows through their banking centers without facing similar international scrutiny. This disparity, he argued, stems from Western dominance within organizations like the OECD and Financial Action Task Force that set global financial standards.
The academic traced the region’s economic trajectory since embracing neoliberal policies, noting how governments progressively lowered investment thresholds from $500,000 thirty years ago to approximately $200,000 today in a ‘race to the bottom’ competition for foreign investment. This approach, Marshall contended, has failed to stimulate meaningful economic diversification beyond real estate development and fossil fuel exploration.
Referencing Barbados’ recently passed Economic Diversification and Growth Fund Bill, which allocates $225 million over three years to attract foreign investors, Marshall expressed skepticism about such initiatives. He argued that they reflect continued adherence to outdated assumptions about capital naturally flowing to productive sectors, when in reality most investment remains concentrated in property development and extractive industries.
The professor concluded that meaningful economic transformation requires breaking from traditional capitalist structures and developing entirely new economic classes beyond the conservative enterprise culture that currently dominates business chambers and private sector lobbies across the region.