On 14 June 2023, the Henley Private Wealth Migration Report 2023 reported on the global outflow of millionaires and their destinations. The outflow top 4 shows: China, India, Russia and UK. The inflow top 6 shows: Australia, UAE, Singapore, USA, Switzerland and Canada.
The reasons for leaving are ancient: (1) government/social stability, (2) taxation and (3) individual freedom. The 1st applies to India (source) and UK. The 2nd applies to China (common poverty-Bloomberg), Russia (eg, windfall tax oligarchs-FT) and UK (new Labour gov’t). The 3rd applies to Russia.
In my view, the UK millionaire outflow cannot be viewed independently from the chaos caused by David Cameron‘s 2016 Brexit referendum, and the subsequent chaos by fellow conservative PM’s like Boris Johnson (2019-2022) and Liz Truss (50 days). Theresa May (2016-2019) has the benefit of my doubt.
A conservative party should be pro–business and pro–freedom. If you cannot rely on those essentials, then other parties will take over. In my view, that explains the enormous rise of the Dutch Farmer-Citizen Movement. Despite common international views, the Netherlands is a conservative country.
It’s difficult for me to comment on India. However, I did notice several relevant comments (from the 2023 Henley Private Wealth Migration Report) in a recent article by The Indian Express, including the long quote at the bottom of my blog:
- “political stability, low taxation, and personal freedom have always been key metrics for millionaires when it comes to deciding where to live”;
- “apart from being a safe haven for wealth, security is also a key factor”;
- “which is why so much private wealth is flowing into countries that offer a robust regulatory environment where the rule of law is respected, and economic freedoms are guaranteed.”
The above comments feel very relevant in a country, marked by political turmoil, Hindu nationalism and extremism, and cronyism (eg, alleged Adani Group fraud).
Media reports show a correlation between outflow and inflow countries:
- China > Singapore (eg, Japan Times-2023);
- Russia > UAE (eg, BBC-2022);
- India > USA (eg, Times of India-2021);
- UK > Australia (eg, Business Insider-2018, Talk Finance-2023).
Below is an important quote that shows the importance of this metric (ie, #millionaires leaving):
“Affluent families are extremely mobile, and their transnational movements can provide an early warning signal in terms of a country’s economic outlook and future country trends. Like the proverbial canary in the coal mine, they alert us to dangers that may lie ahead as they are more sensitive to potential threats to their wealth and usually have the resources to take a corrective course of action to preserve their legacies. An increasing outflow of millionaires often points to a drop in confidence in a country, since high- and ultra-high-net-worth individuals have the means to leave and are usually the first to exit and vote with their feet when circumstances deteriorate.”
A quote by Juerg Steffen, CEO of Henley & Partners, from the 2023 Henley Private Wealth Migration Report
Money makes the world go round (1972) OST Cabaret
lyrics, video, Wiki
A mark, a yen, a buck or a pound
A buck or a pound
A buck or a pound
Is all that makes the world go around
That clinking, clanking sound
Can make the world go ’round
Note: all markings (bold, italic, underlining) by LO unless in quotes or stated otherwise.
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