This article is written from the perspective of a Canadian citizen, who is in no way a legal authority on the subject of international laws on dual citizenship. It is here for educational purposes only, and is not the end all and be all of sources.
Why you want duel citizenship:
The majority of those that find this article via some Internet search engine are either trying to avoid paying income tax, or seeking a second passport as a plan “B” to bugging out. My original reason for seeking duel citizenship was for the addition of privacy rights under certain jurisdictions, however due to the current global economic collapse, my interest has been altered to looking into a way to broaden the range of where I can look for employment. Having just one passport from any of the 27 EU countries makes it easier to acquire a job in 31 countries due to agreements. Unfortunately every single one of those countries, plus the USA, Canada, Australia, and New Zealand are all suffering from the same economic meltdown.
So if employment in recognized countries and others, privacy laws, and tax reasons are not the major reasons to getting that second passport, why do it? Well, because you can. There may come a day where those reasons return, or others, but the opportunity to do so has changed. There is also the other possibility that there maybe reasons in the future that would have you hating yourself for not getting that dual citizenship, maybe it would literally save your life. Sometimes, it would also be desired to drop your current citizenship, or at the very least be ready do so, ask any former citizen of Yugoslavia.
The Right of the Soil:
If you were born in Canada, or over 30 other countries, you already have citizenship in that country. It’s called Jus Soli under international law. However, there is a recent trend to move away from this law, since it is often abused by illegal immigrants to get citizenship for their yet to be born children, and then have the child sponsor the parent/s. So if you are not currently living where you were born, you should insure that you can maintain your citizenship with your country of origin in the event the rules change.
The Right of Blood:
If your Grandparent, or maybe even Great Grandparent, was a citizen of approximately 30 countries, you can acquire your second citizenship. It is even viewed under some them that you already have citizenship, and just not know it. Not every country that accepts Jus sanguinis as a means to get citizenship interrupts it the same way, it is possible that the country uses what is called Lex sanguinis instead, which means it doesn’t matter how far back your relatives are of that nationality or ethnicity background you may still get the citizenship.
Just Buy It:
Did you know you can get American citizenship with nothing more then just money and time? It’s called an EB-5 visa. Although the amount of money involved ranges from half a million, to a full million dollars. Don’t have enough? Then I would suggest you watch the progress of The Startup Visa Act of 2011 (EB-6 Visa) as it makes it’s way through congress, and the senate.
Dropping A Citizenship:
For the most part I would recommend against dropping a citizenship regardless of where it is from, or why, generally speaking it will not protect you from extradition orders anyway unless you have never been to the country of origin of the order in the first place.
In addition, getting rid of an unwanted citizenship is actually harder then getting one in the first place most of the time. For example, to get an Italian citizenship via Lex sanguinis is just a matter of paperwork, most of which is provided by either your own country or Italy itself, but to get rid of a Canadian citizenship (desired due to taxes for example) you have to make sure you have broken ALL ties to Canada, including things as obscure memberships in clubs, magazine subscriptions, and even unpaid bills.
One Other Alternative:
Instead of you getting a dual citizenship, you can set up a company in another jurisdiction. That company can be more secure because of where it is, and the currency it uses then your own home turf, or at the least, you can divide your current assets between a local company and that one.