Legal Background of the Dominica Economic Citizenship.

The legal background of the Dominica Economic Citizenship Program are specified in 
Chapter VII, section 101 of the Constitution.

According to section 101, Citizenship can only be granted under the Naturalization and Citizenship Act, which specifies that persons who have been continuously residing in Dominica for five (5) years may apply for naturalization and may also be eligible for citizenship, upon payment of prescribed fees.

However, since 1993, the residency requirement is waived.

Why does Economic Citizenship Program exist?

Programs of granting citizenship (and passport) in exchange of the investments exist in many countries, such as in the USA, Canada, Australia, New Zealand, Austria, Ireland, Great Britain, and Dominica.
The program is set to fund governments to approach national projects. Dominica is also needs it to increase its budget to develop infrastructures for tourism, agriculture, etc.

Is this program legal?

The program is absolutely legal. The Citizenship Program of the Commonwealth of Dominica was established by an Act of Parliament of the Commonwealth of Dominica, Citizenship Act, Chapter 1:10, Section 8 (2) (e). Under the Act the Minister is allowed to waive the residency requirement for persons investing in Dominica. The investment requirements have been established by the Government.