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The Impact of Dual Citizenship on Poverty Reduction in Armenia


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The Impact of Dual Citizenship on Poverty Reduction in Armenia

  1. 1. The Impact of Dual Citizenship on Poverty Reduction in Armenia Hasmik Hovhanesian Yerevan State University UNDP -- CRRC Armenia -- Eurasia Partnership Foundation
  2. 2. Goal of the Research <ul><li>Assessing how dual citizenship (DC) could have an influence on poverty reduction </li></ul>Classification Code : 015 Key Words : Diaspora, Poverty Reduction, Dual Citizenship, Armenian Diaspora
  3. 3. Content <ul><li>Definitions of the Major Terms Used During Research </li></ul><ul><li>Theoretical Approach toward a Diaspora’s Role in Poverty Reduction </li></ul><ul><li>The Role of Dual Citizenship in the Economy of the Home Country (the Indian Case) </li></ul><ul><li>The DC Impact on the Diaspora’s Role in Poverty Reduction in Armenia </li></ul><ul><li>The Results of the Survey Policy Recommendations </li></ul>
  4. 4. Research Methodology <ul><li>-- For qualitative </li></ul><ul><li>a/ case study </li></ul><ul><li>b/ grounded theory </li></ul><ul><li>-- For quauntitive </li></ul><ul><li>a/ hypothesis test </li></ul><ul><li>b/ Regression analysis </li></ul><ul><li>c/ Logical Framework Approach </li></ul><ul><li>-- For Mixed-Methods </li></ul><ul><li>-- Logical Framework Approach </li></ul>
  5. 5. Major Terms Used <ul><li>Poverty Reduction with poverty and economic growth </li></ul><ul><li>Dual Citizenship </li></ul><ul><li>Diaspora and </li></ul><ul><li>Armenian Diaspora </li></ul>
  6. 6. What is negative? <ul><li>a source of financing for international terrorism </li></ul><ul><li>easily manage the politics of home country without living there </li></ul><ul><li>the major diaspora communities’ interests </li></ul>
  7. 7. Outcomes of review of literature <ul><li>Macro production function – Y=AKaLa-1, where Y is total production, A is multifactor productivity (technology), K is capital, L is labor and a is relative capital intensity (0<a<1) </li></ul><ul><li>GDP equation – Y=C+G+I+Xn, where C is private, while G is public consumption, I is represent investment or savings and Xn is net exports </li></ul><ul><li>Saving functions – I=sY, where I is a portion s of the total production Y </li></ul><ul><li>Change in Capital – ΔK=sY – ðK, where ð is the rate of depreciation; and </li></ul><ul><li>Change in Workforce – Lt+1=Lt(1+gL), where gL is the growth function for L – gL=ΔL/L. </li></ul>
  8. 8. Impact of Diaspora on home country’s economy <ul><li>Remittances </li></ul><ul><li>Investments </li></ul><ul><li>Promoting home country products in the world market </li></ul><ul><li>Acting as a tourist </li></ul><ul><li>Knowledge transfer </li></ul><ul><li>Lobbying for receiving foreign governments’ grants, loans and/or assistance </li></ul>
  9. 9. New methods and approaches For Diaspora to be involved into poverty reduction process <ul><li>Diaspora as a bridge between foreign investors and/or buyers and the home country </li></ul><ul><li>E-networking </li></ul><ul><li>Institutionalization </li></ul><ul><li>Diaspora as a “live business card” </li></ul><ul><li>Sense of ownership </li></ul>
  10. 10. Impact of Diaspora These links will work if there is an implemented governmental strategy Economic Growth Labour 1. Internal 2. Diaspora Technology Capital Foreign Trade Diaspora Government Policy
  11. 11. Why INDIA ???????? <ul><li>It is different from Armenia, but succeed more in Diaspora involvement into poverty reduction process </li></ul><ul><li>It has different culture, religion, language, but still Diaspora is actively involved in economic development process of India </li></ul><ul><li>Globalization carries tendency to unify the values </li></ul>“ Among the biggest world billionaires, there are seven Indians. Among US millionaires, there are 200,000 Indians.”-S. Prasad
  12. 12. Actions of Indian Government <ul><li>“ Non-Resident Indian” </li></ul><ul><li>Special Coordination Division in the Ministry of External Affairs. </li></ul><ul><li>Consultative Committee for Non-Resident Indians </li></ul><ul><li>Global Organization of People of Indian Origin </li></ul><ul><li>First Global Convention of People of Indian Origin </li></ul><ul><li>High Level Committee on the Indian Diaspora </li></ul><ul><li>The Person of Indian Origin Card </li></ul><ul><li>Overseas Citizen of India </li></ul><ul><li>(i) Multiple entry, multi-purpose life-long visa to visit India </li></ul><ul><li>(ii) Exemption from reporting to Police authorities for any length of stay in India; and </li></ul><ul><li>(iii) Parity with Non Resident Indians (NRIs) in financial, economic and educational fields except in the acquisition of agricultural or plantation properties.” </li></ul>
  13. 13. <ul><li>“ The overseas Indians would scout opportunities, represent ‘Brand India’, network for Indian initiatives. They would be the flag bearers. They will help Indian initiatives. They will help India shift from being a local player to being a global major” </li></ul><ul><li>India Inc. </li></ul>
  14. 14. FDI of India 16 881 6 676 5 771 4 323 FDI (mln USD) 2006 2005 2004 2003 Year
  15. 15. Number of Indians Living in Major Investment-Making Countries 217,000 The Netherlands 320,000 Singapore 1,400,000 UK 2,200,000 USA 855,000 Mauritius Number of Indians Living There Country
  16. 16. Exports of India 18,851 17,353 9,605 8,396 USA 5,614 5,059 2,299 2,035 UK 12,023 8,592 2,597 2,083 UAE 1,443 1,075 530 450 Thailand 2,254 2,025 640 499 Sri Lanka 1,876 1,606 666 548 Spain 6,064 5,425 877 973 Singapore 2,586 1,810 823 742 Saudi Arabia 2,668 2,475 880 886 The Netherlands 2,860 2,481 1,794 1,685 Japan 3,580 2,519 1,309 1,119 Italy 3,976 3,586 1,907 1,738 Germany 2,099 2,080 1,020 897 France 8,287 6,759 831 539 China 1,109 1,022 656 578 Canada 3,471 2,871 1,471 1,367 Belgium 1,627 1,664 935 636 USD mln Bangladesh 2006-2007 2005-2006 2000-2001 1991-2000 Country
  17. 17. <ul><li>The Diaspora first of all has to solve its daily life problems and the young generation is more business targeted. </li></ul><ul><li>Khatchik Toloyan </li></ul>
  18. 18. Major Poverty Figures from 2001-2006 (%) Unemployment Rate In Armenia from 2001-2006 26.5 4.1 29.8 4.6 34.6 6.4 42.9 49.7 50.9 % of Poor in Armenia Poor Very Poor Poor Very Poor Poor Very Poor Poor Poor Poor 2006 2005 2004 2003 2002 2001 7.4% 9.6% 9.4% 10% 9.4% 10.3% Unemployment Rate 2006 2005 2004 2003 2002 2001
  19. 19. Activities of Government of Armenia <ul><li>Pan-Armenian Games </li></ul><ul><li>Diaspora-Armenia economic conferences </li></ul><ul><li>Investment conferences in USA, Europe and Russia </li></ul><ul><li>Celebration of the 1700th anniversary of Armenia’s adoption of Christianity </li></ul><ul><li>Ministry of Diaspora </li></ul><ul><li>Special Status </li></ul><ul><li>DC </li></ul>
  20. 20. The Case of DC in Armenia <ul><li>According to the constitutional amendments of the Republic of Armenia (RA) adopted on 5 December, 2005, “A person of Armenian ethnicity may acquire RA citizenship pursuant to a simplified procedure” (Article 11.3) and “the rights and obligations of a person with DC would be regulated by the appropriate law” (Article 30.1). </li></ul><ul><li>Any person 18 years of age and capable of working who is not an RA citizen may apply for RA citizenship, if he/she: </li></ul><ul><li>- has been lawfully residing on the territory of the Republic of Armenia for the preceding 3 years </li></ul><ul><li>- is proficient in the Armenian language </li></ul><ul><li>- is familiar with the Constitution of the Republic of Armenia </li></ul><ul><li>There are two major requirements for acquiring Armenian citizenship: to present an appropriate document proving Armenian nationality and to pass an exam in the Armenian language on the Constitution of the Republic of Armenia. </li></ul>
  21. 21. Results of Survey Respondents Aged 30+ Respondents under the Age of 30 70 Total 12 USA 1 UK 2 Turkey 7 Syria 7 Russia 11 Lebanon 1 Jordan 2 Iraq 6 Iran 4 Georgia 9 France 2 Cyprus 4 Canada 1 Bulgaria 1 Australia Respondents Country 41 Total 1 Greece 17 Georgia 1 Canada 2 USA 2 Syria 2 Russia 1 Lebanon 2 Iraq 10 Iran 1 France 1 Egypt 1 Cyprus Respondents Country
  22. 22. Respondents Aged 30+ <ul><li>58.6% - know about DC of Armenia </li></ul><ul><li>60% of - would apply for DC </li></ul><ul><li>81% of the respondents who answered “No” - have a positive approach towards DC </li></ul><ul><li>59% - support the creation of a separate government </li></ul><ul><li>47% - support changes in the laws related to the Diaspora and/or business in Armenia </li></ul><ul><li>31% of - have businesses in Armenia, but 50% of them will not apply for DC. Who does not have a business in Armenia- 30% expressed willingness to start one </li></ul>
  23. 23. Respondents under the Age of 30 <ul><li>90% - expressed their readiness to participate in their home country’s poverty reduction process mainly through establishing businesses (44%) and charitably (almost 20%) </li></ul><ul><li>66% - do not know about DC of Armenia </li></ul><ul><li>80% - are sure that there should be a separate government body for dealing with the </li></ul><ul><li>35% - stand for changes in the laws and regulations related to the Diaspora </li></ul><ul><li>10% of these people will apply for DC, but prefer not to have DC as it is not beneficial to them </li></ul>
  24. 24. Outcomes <ul><li>Diasporas impact all four factors of economic growth of the home country: labour, capital, technology and foreign trade </li></ul><ul><li>Diasporas as external sources of labour </li></ul><ul><li>daily and persistent activities from the government of the home country </li></ul><ul><li>new approaches should be used besides traditional methods to involve Diaspora into poverty reduction process of home country </li></ul><ul><li>Not Armenian Diaspora, but Transnational Armenians. </li></ul><ul><li>Armenian citizenship should provide benefits besides obligations </li></ul><ul><li>sense of ownership among transnational Armenians </li></ul><ul><li>Creation of separate body, but only in case of exact strategy </li></ul>
  25. 25. Special Thanks <ul><li>Heghine Manasyan </li></ul><ul><li>Asbed Kotchikian </li></ul><ul><li>Sona Hamalian </li></ul><ul><li>Dzovinar Derderyan </li></ul><ul><li>UNDP </li></ul><ul><li>CRRC Armenia Staff </li></ul><ul><li>Armenian Development Agency </li></ul><ul><li>Yerevan State University </li></ul>June, 2008