The Impact of Dual Citizenship on Poverty Reduction in Armenia
Hasmik HovhanesianYerevan State University
UNDP -- CRRC Armenia -- Eurasia Partnership Foundation
Goal of the Research
Assessing how dual citizenship (DC) could have an influence on
poverty reduction
Classification Code: 015Key Words: Diaspora, Poverty Reduction, Dual Citizenship, Armenian Diaspora
Content
Definitions of the Major Terms Used During Research
Theoretical Approach toward a Diaspora’s Role in Poverty Reduction
The Role of Dual Citizenship in the Economy of the Home Country (the Indian Case)
The DC Impact on the Diaspora’s Role in Poverty Reduction in Armenia
The Results of the Survey Policy Recommendations
Research Methodology -- For qualitative
a/ case studyb/ grounded theory
-- For quauntitive
a/ hypothesis test b/ Regression analysis c/ Logical Framework Approach
-- For Mixed-Methods
-- Logical Framework Approach
Major Terms Used
Poverty Reduction with poverty and economic growth
Dual Citizenship Diaspora and Armenian Diaspora
What is negative?
a source of financing for international terrorism
easily manage the politics of home country without living there
the major diaspora communities’ interests
Outcomes of review of literature
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)
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
Saving functions – I=sY, where I is a portion s of the total production Y
Change in Capital – ΔK=sY – ðK, where ð is the rate of depreciation; and
Change in Workforce – Lt+1=Lt(1+gL), where gL is the growth function for L – gL=ΔL/L.
Impact of Diaspora on home country’s economy
Remittances Investments Promoting home country products in
the world market Acting as a tourist Knowledge transfer Lobbying for receiving foreign
governments’ grants, loans and/or assistance
New methods and approaches For Diaspora to be involved into poverty reduction process
Diaspora as a bridge between foreign investors and/or buyers and the home country
E-networking
Institutionalization
Diaspora as a “live business card”
Sense of ownership
These links will work if there is an implemented governmental strategy
Economic Growth
Labour1. Internal2. Diaspora
Technology
Capital
Foreign Trade
Diaspora
Government Policy
Impact of Diaspora
Why INDIA ????????
It is different from Armenia, but succeed more in Diaspora involvement into poverty reduction process
It has different culture, religion, language, but still Diaspora is actively involved in economic development process of India
Globalization carries tendency to unify the values
“Among the biggest world billionaires, there are seven Indians. Among US millionaires, there are 200,000 Indians.”-S. Prasad
Actions of Indian Government
“Non-Resident Indian” Special Coordination Division in the Ministry of External Affairs. Consultative Committee for Non-Resident Indians Global Organization of People of Indian Origin First Global Convention of People of Indian Origin High Level Committee on the Indian Diaspora
The Person of Indian Origin Card
Overseas Citizen of India
(i) Multiple entry, multi-purpose life-long visa to visit India(ii) Exemption from reporting to Police authorities for any length of stay in India; and(iii) Parity with Non Resident Indians (NRIs) in financial, economic and educational fields except in the acquisition of agricultural or plantation properties.”
“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”
India Inc.
FDI of India
Year 2003 2004 2005 2006
FDI (mln USD) 4 323 5 771 6 676 16 881
Number of Indians Living in Major Investment-Making Countries
Country Number of Indians Living There
Mauritius 855,000
USA 2,200,000
UK 1,400,000
Singapore 320,000
The Netherlands 217,000
Exports of IndiaCountry 1991-2000 2000-2001 2005-2006 2006-2007
Bangladesh 636 USD mln 935 1,664 1,627
Belgium 1,367 1,471 2,871 3,471
Canada 578 656 1,022 1,109
China 539 831 6,759 8,287
France 897 1,020 2,080 2,099
Germany 1,738 1,907 3,586 3,976
Italy 1,119 1,309 2,519 3,580
Japan 1,685 1,794 2,481 2,860
The Netherlands 886 880 2,475 2,668
Saudi Arabia 742 823 1,810 2,586
Singapore 973 877 5,425 6,064
Spain 548 666 1,606 1,876
Sri Lanka 499 640 2,025 2,254
Thailand 450 530 1,075 1,443
UAE 2,083 2,597 8,592 12,023
UK 2,035 2,299 5,059 5,614
USA 8,396 9,605 17,353 18,851
The Diaspora first of all has to solve its daily life problems and the young generation is more business targeted.
Khatchik Toloyan
Major Poverty Figures from 2001-2006 (%)
2001 2002 2003 2004 2005 2006
Poor Poor Poor Very Poor Poor Very Poor Poor Very Poor Poor
% of Poor in Armenia
50.9 49.7 42.9 6.4 34.6 4.6 29.8 4.1 26.5
Unemployment Rate In Armenia from 2001-2006
2001 2002 2003 2004 2005 2006
Unemployment Rate 10.3% 9.4% 10% 9.4% 9.6% 7.4%
Activities of Government of Armenia
Pan-Armenian Games Diaspora-Armenia economic conferences Investment conferences in USA, Europe
and Russia Celebration of the 1700th anniversary of
Armenia’s adoption of Christianity Ministry of Diaspora Special Status DC
The Case of DC in Armenia
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).
Any person 18 years of age and capable of working who is not an RA citizen may apply for RA citizenship, if he/she:- has been lawfully residing on the territory of the Republic of Armenia for the preceding 3 years- is proficient in the Armenian language- is familiar with the Constitution of the Republic of Armenia
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.
Results of Survey
Country Respondents
Australia 1
Bulgaria 1
Canada 4
Cyprus 2
France 9
Georgia 4
Iran 6
Iraq 2
Jordan 1
Lebanon 11
Russia 7
Syria 7
Turkey 2
UK 1
USA 12
Total 70
Respondents Aged 30+
Respondents under the Age of 30
Country Respondents
Cyprus 1
Egypt 1
France 1
Iran 10
Iraq 2
Lebanon 1
Russia 2
Syria 2
USA 2
Canada 1
Georgia 17
Greece 1
Total 41
Respondents Aged 30+
58.6% - know about DC of Armenia 60% of - would apply for DC 81% of the respondents who answered “No” - have
a positive approach towards DC 59% - support the creation of a separate
government 47% - support changes in the laws related to the
Diaspora and/or business in Armenia 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
Respondents under the Age of 30
90% - expressed their readiness to participate in their home country’s poverty reduction process mainly through establishing businesses (44%) and charitably (almost 20%)
66% - do not know about DC of Armenia 80% - are sure that there should be a separate
government body for dealing with the 35% - stand for changes in the laws and regulations
related to the Diaspora 10% of these people will apply for DC, but prefer
not to have DC as it is not beneficial to them
Outcomes
Diasporas impact all four factors of economic growth of the home country: labour, capital, technology and foreign trade
Diasporas as external sources of labour daily and persistent activities from the government
of the home country new approaches should be used besides traditional
methods to involve Diaspora into poverty reduction process of home country
Not Armenian Diaspora, but Transnational Armenians.
Armenian citizenship should provide benefits besides obligations
sense of ownership among transnational Armenians Creation of separate body, but only in case of exact
strategy
Special Thanks
Heghine Manasyan Asbed Kotchikian
Sona Hamalian Dzovinar Derderyan
UNDP CRRC Armenia Staff
Armenian Development Agency Yerevan State University
June, 2008