Dual Citizenship for NRN a Long Term Prospect of National Investments
Prakash Bom
October 13, 2008
Perhaps the time has come for Nepal to acknowledge the long-term prospect of Non-Resident Nepali from North America, Europe, Australia, New Zealand, Japan and other developed nations of the world to play significant role in economic developments at this global financial crisis. Most probably the global banking system credit crunch will make the global investment tight and the developing nations will suffer the most.
The International Monitory Fund chief has already projected the consequences that what happened to the United Statesī financial institutions will distress the world economy. The sub-prime mortgage-lending crisis that knocked down the major financial institutions of America created tsunami in Europe and its chain-effect is shaking Asian financial institutions off the balance sheet.
How far and how long it will keep affecting the world economy is uncertain at this point. But it is for sure that the developing nations that need the most of the credit for the developments will suffer the most because the developing nations cannot increase their gross domestic product (GDP) without new investments. Therefore, the government of Nepal must be worry about making alternative strategies for generating investments and NRN can be one the resources. The best way to secure such resource is to provide legal guarantee. And, for NRN it is the constitutional provision that guarantees the dual citizenship for openhearted investments.
It seems the challenge for Maoist led government is enormous and unless it becomes capable of making national consensus in every level to address nationīs socio-political and economical poor conditions with the best of multi-party democracy and the capitalism that can be best managed by government and private enterprises or with the system of mixed economy. Actually, this is what is about to happen with the current global financial crisis that without taking over the banking system by the government of G7 nations the certainty in the financial market cannot be ascertained.
Mr. George Soros, the global financier and philanthropist, for instance, argues in his new book "The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means" that it is the momentum in human history that the free market capitalism is about to fall down due to the fundamentalists who advocated a peculiar sort of ideology in America that the free market can itself take care of without the government regulations.
For example, the sub-prime mortgage lending were committed without taking care of people who borrowed them based on the free market principle that banks and borrowers will take care of. According to Soros that the same situation had occurred with the Marxist communist economic system that enslaved people for the sake of ideology with the utter disregards of people for their financial freedom.
The Maoist led governmentīs commitments to multiparty democracy and capitalistic economic system incorporated with the government and private enterprises is the right way for the nation and people of Nepal but the global financial crisis as such might undermine the implementations. Therefore, it is a time for the government to develop domestic and regional strategies for the nation to attract investments such as from Non-Resident Nepalese from around the developed nations.
For example, if the government introduces the dual citizenship bill for Constituent Assembly to vote on to make it constitutional provision then how many Non-resident Nepalese will be encouraged to invest their 41K retirement investments from America to Nepal at this moment. Personally, as a Non-resident Nepali I will invest all my 41K in Nepal the day Constituent Assembly succeeds to endorse the bill. This is because the yielding of such investment can be higher in Nepal than what I get here and if I have a dual-citizenship privilege I will plan to retire in Nepal, which makes survival more affordable than retiring in America or Canada or Europe.
Since the Constitution of the United States of America has provision for the dual citizenship I can draw my social security retirement in Nepal once Nepal has dual citizenship provision. After paying the tax on my retirement income in the United I will draw minimum one thousand and five hundred dollar a month. However, I do not have to pay US tax on my investments in Nepal due to my dual citizenship status. I will be paying income tax in Nepal as per my current resident status.
Therefore, it should be one of the prospects of government of Nepal to introduce the dual citizenship provision for NRN that can bring substantial investment in the country. In a decade there will be at least tens of thousands retiring NRN from developed nations and if dual citizenship Nepal provides to NRN then just as other South Asian natives NRN will prefer to retire in Nepal.
Here is how India implemented dual citizenship for Non-Resident Indians: "The Indian Parliament passed dual Citizenship BILL unanimously in December 2003.
The Prospect: There has been persistent demand and expectations for dual citizenship for persons of Indian origin in North America, Europe, Australia, New Zealand, Singapore and few other countries. The grant of dual citizenship was intended to remove for those who have taken foreign passports, the obstacle in travel to and from India, permit investment in business ventures and foster a greater sense of belonging. This provision is an incentive for people to relate themselves with India, to make investments, to make technology transfer and such like things.
The concept: The dual citizenship, now phrased as Overseas Citizenship, will grant overseas citizenship to persons of Indian origin belonging to certain countries as well as Indian citizens who may take up the citizenship of these countries in future. At present this facility is being extended to PIOs of 16 specified countries, namely, Australia, Canada, Finland, France, Greece, Ireland, Israel, Italy, Netherlands, New Zealand, Portugal, Republic of Cyprus, Sweden, Switzerland, United Kingdom, and United States of America.
Eligibility and procedures: The Central Government on application made in this behalf may register any person as an overseas citizen of India if: (a) That person is of Indian origin of full age and capacity, who is a citizen of a specified country; (b) that a person is of full age and capacity who has obtained the citizenship of a specified countries on or after the commencement of Citizenship (Amendment) Act, 2003 and who was a citizen of India immediately before such commencement; (c). Person registered as an overseas citizen of India shall be an overseas citizen of India as from the date on which he is so registered."
All most all South Asian nations benefit from their non-resident citizens of South Asian origins under their dual-citizenship constitutional provision. It is only Nepal, which is deprived of, and now it is the time to take the advantage of its non-resident fellow citizen of Nepali origins from the developed nations of the world.
The provision will help thrive the multiparty democracy and provide investment supports to the economic developments in many ways. I hope the Maoist led government ought to see this clearly that how significant the dual-citizenship provision will be and how both NRN and nation can benefit from such legislation. NRNS, therefore, ought to be included in the democratic and nation building process as native fellow citizens of Nepali origin.
The International Monitory Fund chief has already projected the consequences that what happened to the United Statesī financial institutions will distress the world economy. The sub-prime mortgage-lending crisis that knocked down the major financial institutions of America created tsunami in Europe and its chain-effect is shaking Asian financial institutions off the balance sheet.
How far and how long it will keep affecting the world economy is uncertain at this point. But it is for sure that the developing nations that need the most of the credit for the developments will suffer the most because the developing nations cannot increase their gross domestic product (GDP) without new investments. Therefore, the government of Nepal must be worry about making alternative strategies for generating investments and NRN can be one the resources. The best way to secure such resource is to provide legal guarantee. And, for NRN it is the constitutional provision that guarantees the dual citizenship for openhearted investments.
It seems the challenge for Maoist led government is enormous and unless it becomes capable of making national consensus in every level to address nationīs socio-political and economical poor conditions with the best of multi-party democracy and the capitalism that can be best managed by government and private enterprises or with the system of mixed economy. Actually, this is what is about to happen with the current global financial crisis that without taking over the banking system by the government of G7 nations the certainty in the financial market cannot be ascertained.
Mr. George Soros, the global financier and philanthropist, for instance, argues in his new book "The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means" that it is the momentum in human history that the free market capitalism is about to fall down due to the fundamentalists who advocated a peculiar sort of ideology in America that the free market can itself take care of without the government regulations.
For example, the sub-prime mortgage lending were committed without taking care of people who borrowed them based on the free market principle that banks and borrowers will take care of. According to Soros that the same situation had occurred with the Marxist communist economic system that enslaved people for the sake of ideology with the utter disregards of people for their financial freedom.
The Maoist led governmentīs commitments to multiparty democracy and capitalistic economic system incorporated with the government and private enterprises is the right way for the nation and people of Nepal but the global financial crisis as such might undermine the implementations. Therefore, it is a time for the government to develop domestic and regional strategies for the nation to attract investments such as from Non-Resident Nepalese from around the developed nations.
For example, if the government introduces the dual citizenship bill for Constituent Assembly to vote on to make it constitutional provision then how many Non-resident Nepalese will be encouraged to invest their 41K retirement investments from America to Nepal at this moment. Personally, as a Non-resident Nepali I will invest all my 41K in Nepal the day Constituent Assembly succeeds to endorse the bill. This is because the yielding of such investment can be higher in Nepal than what I get here and if I have a dual-citizenship privilege I will plan to retire in Nepal, which makes survival more affordable than retiring in America or Canada or Europe.
Since the Constitution of the United States of America has provision for the dual citizenship I can draw my social security retirement in Nepal once Nepal has dual citizenship provision. After paying the tax on my retirement income in the United I will draw minimum one thousand and five hundred dollar a month. However, I do not have to pay US tax on my investments in Nepal due to my dual citizenship status. I will be paying income tax in Nepal as per my current resident status.
Therefore, it should be one of the prospects of government of Nepal to introduce the dual citizenship provision for NRN that can bring substantial investment in the country. In a decade there will be at least tens of thousands retiring NRN from developed nations and if dual citizenship Nepal provides to NRN then just as other South Asian natives NRN will prefer to retire in Nepal.
Here is how India implemented dual citizenship for Non-Resident Indians: "The Indian Parliament passed dual Citizenship BILL unanimously in December 2003.
The Prospect: There has been persistent demand and expectations for dual citizenship for persons of Indian origin in North America, Europe, Australia, New Zealand, Singapore and few other countries. The grant of dual citizenship was intended to remove for those who have taken foreign passports, the obstacle in travel to and from India, permit investment in business ventures and foster a greater sense of belonging. This provision is an incentive for people to relate themselves with India, to make investments, to make technology transfer and such like things.
The concept: The dual citizenship, now phrased as Overseas Citizenship, will grant overseas citizenship to persons of Indian origin belonging to certain countries as well as Indian citizens who may take up the citizenship of these countries in future. At present this facility is being extended to PIOs of 16 specified countries, namely, Australia, Canada, Finland, France, Greece, Ireland, Israel, Italy, Netherlands, New Zealand, Portugal, Republic of Cyprus, Sweden, Switzerland, United Kingdom, and United States of America.
Eligibility and procedures: The Central Government on application made in this behalf may register any person as an overseas citizen of India if: (a) That person is of Indian origin of full age and capacity, who is a citizen of a specified country; (b) that a person is of full age and capacity who has obtained the citizenship of a specified countries on or after the commencement of Citizenship (Amendment) Act, 2003 and who was a citizen of India immediately before such commencement; (c). Person registered as an overseas citizen of India shall be an overseas citizen of India as from the date on which he is so registered."
All most all South Asian nations benefit from their non-resident citizens of South Asian origins under their dual-citizenship constitutional provision. It is only Nepal, which is deprived of, and now it is the time to take the advantage of its non-resident fellow citizen of Nepali origins from the developed nations of the world.
The provision will help thrive the multiparty democracy and provide investment supports to the economic developments in many ways. I hope the Maoist led government ought to see this clearly that how significant the dual-citizenship provision will be and how both NRN and nation can benefit from such legislation. NRNS, therefore, ought to be included in the democratic and nation building process as native fellow citizens of Nepali origin.
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