The IMF Working Papers series is designed to make IMF staff research available to a wide audience. With nearly 300 released each year, working papers cover a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Economic Citizenship Programs (ECPs) have recently been proliferating, with large and
potentially volatile inflows of investment and fiscal revenues generating significant benefits
for small economies, but also posing substantial challenges. This paper discusses recent
developments and implications of such programs for fiscal discipline and the real economy,
including risks to macroeconomic and financial stability, with a focus on small state
economies. It discusses the prudent management of these programs, overviews strategies to
minimize risks to various sectors, and addresses potential governance and integrity
challenges. The paper proposes a framework for managing inflows and savings from ECPs to
contain macroeconomic risks, and it recommends the establishment of a sovereign wealth
fund (SWF) where such revenues are large and persistent.