The economics of options - Part I

The Global Citizen Advantage: Navigating Identity and Opportunity in the 21st Century

I remember the day I first truly felt like a global citizen. I was sitting in a café in Zanzibar, on a video call with my team scattered across four continents, finalizing a pitch for a client in New York.

Since the acquisition of Appruve, this is what I have been up to ; I help founders globally to fund raise and expand through acquisitions. I’m also working on a new startup ,will share more soon.

Sorry I digress. Back to my story; In that moment, the abstract concept of global citizenship became tangibly real to me. I realized that my passport, while still important, was no longer the primary determinant of my opportunities or identity.

This personal anecdote isn't unique. It's a scene playing out in co-working spaces, cafes, and home offices around the world. We're living through a profound shift in how we work, connect, and identify ourselves. And it's changing the very nature of citizenship and belonging.

The Evolution of Global Identity

To understand the magnitude of this shift, let's briefly look back. In the early 20th century, national identity was paramount. The world was divided into distinct nation-states, each with its own culture, economy, and opportunities. Fast forward to today, and the picture looks vastly different.

Consider these statistics:

- As of 2021, there were an estimated 35 million digital nomads worldwide, a number that has grown by 112% since 2019 (source: MBO Partners).

- Global remittances reached $702 billion in 2020, demonstrating the economic impact of transnational workers (source: World Bank).

- Over 50% of startups valued at over $1 billion have at least one immigrant founder (source: National Foundation for American Policy).

These numbers paint a picture of a world where opportunities and identities increasingly transcend national borders. Let's explore what this means for us as individuals and professionals.

The New Passport: Skills, Networks, and Adaptability

Let's be honest: the passport you hold still matters. It can make travel easier or harder, open or close certain doors. I won't pretend otherwise. But increasingly, I've found that my skills, my network, and my ability to adapt are becoming a new kind of passport -- one that often trumps the official document in my pocket.

Here's how I've seen this play out:

1. Skills as Currency: In my field of tech startups and consulting, I've worked with clients who couldn't care less about my nationality. What mattered was whether I could solve their problems. I've seen friends get sponsored for visas not because of where they're from, but because of what they can do. Your skills are becoming your most valuable passport. As Jorn Lyseggen of Meltwater often says, "Talent is widely available, opportunity isn't."
2. Networks as Nations: My professional network spans the globe, connected through LinkedIn, Twitter, and countless Slack channels. Often, I have more in common with -- and more opportunities through -- this global tribe than with my geographical neighbors. These transnational communities of interest and practice are becoming new forms of 'citizenship,' often more relevant to our daily lives and future prospects than traditional national affiliations.
3. Adaptability as Advantage: I've lost count of the number of times I've had to learn new skills, adapt to new cultures, or pivot my business strategy. In our rapidly changing world, the ability to learn, unlearn, and relearn is paramount. Those who can navigate different cultural contexts, pick up new skills quickly, and adapt to changing circumstances have a significant edge. This adaptability is the hallmark of the global citizen.

The Global Citizen Toolkit

So, what's in my global citizen toolkit? What are the skills and attributes that I've found most valuable in navigating this new world? Here's my personal list:

1. Cognitive Diversity: Exposure to different cultures, ideas, and ways of thinking is no longer a luxury---it's a necessity. I've found that my most innovative solutions often come from combining ideas from different cultural contexts. Global citizens cultivate cognitive diversity, allowing them to approach problems from multiple angles and collaborate effectively across cultural boundaries.
2. Digital Fluency: The internet is our new global infrastructure. Proficiency with digital tools, platforms, and etiquette is non-negotiable for participating in the global economy and community.
3. Language Skills: While English remains the lingua franca of international business and much of the internet, I've found that even basic skills in other languages open doors and minds in surprising ways. Multilingualism offers significant advantages, opening access to different markets, cultures, and ways of thinking. I'm of the opinion that the best gift inheritance you can pass on to your kids is the gift of culture and language.
4. Financial Literacy: Understanding international finance -- from forex to crypto to global investment opportunities -- has been crucial for maximizing the economic benefits of my global lifestyle.
5. Legal and Regulatory Knowledge: Navigating the complex web of international laws, tax treaties, and regulatory frameworks is a key skill I'm constantly working to improve. It's essential for those operating across borders. I almost religiously follow Andrew Henderson of Nomad Capitalist and Alex Recouso of Citizen X on related topics.

The Patriotism Tax

Now, let's talk about something I call the "Patriotism Tax" -- the opportunity cost of limiting oneself to a single nation's opportunities and perspectives. I've paid this tax, and I've watched friends and colleagues pay it too. It manifests in various ways:

1. Economic Limitations: I've seen talented friends miss out on global opportunities because they were too focused on their local job market. Strict allegiance to one's home country can mean missing out on job prospects and investment options on a global scale. For instance, a study by the McKinsey Global Institute found that cross-border labor flows could add $2.7 trillion to global GDP by 2025.
2. Intellectual Constraints: I've caught myself falling into narrow, nationally-biased thinking patterns and had to consciously work to broaden my perspective. A solely national perspective can lead to a narrower worldview, limiting one's ability to understand and engage with global issues and diverse viewpoints.
3. Reduced Mobility: I've witnessed how strong national ties can make it psychologically and practically harder for people to relocate, even when better opportunities or quality of life improvements arise elsewhere. For example, a Ghanaian passport allows visa-free travel to 65 countries, while a passport from St. Kitts and Nevis opens doors to 157 countries.
4. Vulnerability to Local Shocks: The COVID-19 pandemic starkly illustrated how over-reliance on a single nation's systems can leave you vulnerable. Diversifying across countries can provide resilience against local economic downturns, political instability, or natural disasters.

The patriotism tax hits hardest for those from countries with weaker economies or more restrictive systems. I've had friends from developing countries describe the agonizing choice between staying to contribute to their home nation and leaving to access global opportunities. The brain drain phenomenon, where talented individuals leave developing countries for better opportunities elsewhere, is a stark illustration of this.

Challenges and Considerations

It's important to note that embracing global citizenship isn't without its challenges. Some potential downsides include:

1. Cultural Rootlessness: Some global citizens report feeling disconnected from any specific culture or community.
2. Tax Complications: Navigating international tax laws can be complex and potentially costly.
3. Work-Life Balance: The "always-on" nature of global work can lead to burnout if not managed carefully.
4. Ethical Considerations: Global citizens must navigate complex ethical landscapes, balancing opportunities with social responsibility.

Despite these challenges, I believe the benefits of global citizenship far outweigh the drawbacks for many of us in today's interconnected world.

Rethinking Patriotism

Does this mean patriotism is obsolete? I don't think so. But I do believe we need to rethink what patriotism means in a global context.

In my journey, I've come to see true patriotism in the 21st century as contributing to making your country a valued participant in the global community. It might mean leveraging global opportunities to bring back knowledge, resources, and connections that benefit your home nation. These entrepreneurs who've built global businesses and used their success to invest back in their home countries. I've known academics who've studied abroad and returned to revolutionize education in their native lands. These global citizens are patriots in the truest sense.

As we wrap up this first part of our exploration, I invite you to reflect on your own experiences. Are you leveraging the full potential of global citizenship? Are you paying a patriotism tax? And if so, is it worth it?

In our next installment, we'll dive deeper into how patriotism is evolving in our borderless world, and explore the tension between national identity and global citizenship. Until then, I encourage you to start seeing the world as your playground – because increasingly, it is.

Subscribe to my blog here: https://freethinkingpaul.beehiiv.com/ to follow the series.