Since the inception of the so-called Economic Citizenship Program in 2018, the arguments supporting it remain as compelling as ever, and arguably have gained strength over time, according to Professor Dr. Vasilije Kostić. He emphasizes that the key issue is the limited domestic investment capacity; without robust investments, achieving dynamic economic growth is impossible.
Kostić points out that the risks once raised by European partners regarding the potential for the Economic Citizenship mechanism to facilitate money laundering and terrorism financing have significantly diminished. With Montenegro’s anticipated EU membership, the establishment of numerous preventive programs by the EU addresses these concerns, and Montenegro is part of these initiatives.
Moreover, Kostić notes that over time, Montenegro’s institutions have been strengthened, which, while not a robust argument, still supports the program. The primary reasons in favor of the Economic Citizenship Program are the lack of domestic capital for investment and Montenegro’s urgent need for dynamic economic growth.
The program not only provides a crucial source of investment funds but also serves as an effective tool for directing investments into strategically important sectors for economic development. This is particularly relevant given the common challenges countries face in managing foreign direct investment, which often does not align with national development priorities.
Kostić argues that many foreign investments, even in Montenegro, tend to serve the interests of foreign investors at the expense of domestic development. Therefore, programs like Economic Citizenship can mitigate these negative impacts, despite the inherent risks.
He strongly believes that the program should continue, even in light of EU calls for its suspension, as economic growth is a prerequisite for EU accession. He warns that if Montenegro fails to achieve adequate investment and economic growth, it will lag behind in its EU integration process. Ultimately, Kostić concludes that economically lagging countries are less attractive to the European community, as economic stagnation often correlates with institutional and democratic shortcomings.
