NationStates Jolt Archive

Dûriandor Herald
Bringing you the Commonwealth Republic in newspaper form since 1899

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Is the age of Mauvasian prosperity exemplified by such works as the Aurîgi Gardens in Chametz-Hashid finally coming to an end?

Deborah Meier, AP

November 9, 2006 - In an open press conference, President Jonathan Jacobi acknowledged for the first time that the Mauvasian Commonwealth's period of relative prosperity and stability in the face of its isolationism may be about to crash down upon itself; the President's comments resulted in the passing of a bill through both of the upper houses of the Mauvasian Legislative Branch.

The lack of foreign investment in Mauvasian markets is causing a stagnation of competition, Jacobi claimed, adding that "governmental restrictions on business have discouraged many upstart companies from gaining ground." He stated that the situation was coming to a head as companies continued to raise prices, spawning consumer dissatisfaction.

"While we have continually tried to increase restrictions on what [these corporations] can do, it's becoming obvious that that isn't the way forward," Jacobi said.

The President's comments have been lauded by economists and citizens alike as finally reflecting the real state of the Mauvasian economy, which is floundering. Dealers, recognising the lack of competition, are setting prices at record highs; companies that cannot afford those prices begin to slide out of business, whereas only larger corporations are capable of purchasing the necessary materials, allowing them to set prices even higher due to a lack of competition. Oil prices have reached ∆89 a barrel, unemployment is at 7.25%, and inflation is at a record high. Protests are becoming common in the streets of Mauvasia for economic reform, but some economists believe that the situation can only be remedied by allowing foreign companies into Mauvasian markets.

Charles J. Singer, Ph.D., of the University of Darmetz is one of these. "With the state the economy is in, we can either reduce restrictions on the market and hope that the smaller companies make a comeback, which could take years -- during which the comparative lack of restriction could easily turn Mauvasia into a corporate oligarchy -- or open our markets to foreign investment," Dr Singer said on MBC last night.

While economists have urged President Jacobi to follow their suggestion, the President is hesitant; a spokesperson for 227 Capitol Plaza supported opening to foreign markets in principle, but claimed that " practice, such a move has only proved to be an open invitation for economic imperialism." 227 Capitol could not be reached for comment.

Despite the President's hesitancy, the Legislative Houses of Mauvasia were enthusiastic about implementing the suggestion; a motion was introduced into the Grand Congress yesterday, passing 271-234, with three abstaining. Shortly thereafter, a similar bill passed in the Senate by a vote of thirty-five to twenty-two, with three abstaining once more.

In accordance with the law stipulated through this bill, and despite talk of a veto among executive officials, the Department of Foreign Affairs issued a statement today to the international community announcing the newfound opening of the Commonwealth's markets to foreign investment in the interests of revitalising the Mauvasian economy, especially in such fields as automobile manufacturing, petroleum production and refinement, aerospace and aeronautical engineering, and hydroelectric production. Simultaneously, a set of guidelines for businesses investing in Mauvasian markets to follow was published, in the interests of preventing economic imperialism. Despite these precautions, the Jacobi administration's press secretary was doubtful.

"[The President] still believes that we should make an effort to bounce back on our own rather than come to rely upon foreign markets for support," the press secretary said today. "If we must use foreign investment to return to the economic strength we once proudly possessed, we should take care that we do not come to be dependent upon others, lest we become merely a puppet on the international stage." 

[i]Deborah Meier has been a regular contributor to the Herald since joining the staff in 1998.

Tagged.

[OOC: Interested. I may be able to finagle some time into this Mau.]

Jean-Luc Thaois sighed as he turned over a ream of papers, brushing a lock of dark hair from his forehead. "Nothing?"

"Nothing yet, Mr Thaois," a young assistant said, her thick hands busily typing as of their own volition while her eyes turned only imperceptibly towards him for a half-second. The Vice Chairman of the Department of State for Foreign Affairs, or just Department of Foreign Affairs as it was more commonly known, gazed wistfully out of a glass window that looked out upon the misty rain beyond, sending small rivulets trickling down the streets of Darmetz.

"As usual, the international community seems to ignore us," Thaois said, half to himself. "I wonder why the Prez hasn't learned that yet..."

His assistant was silent; she was too busy transcribing whatever document had been handed her this time, to likely send it back whence it had come, where it would be sent to another assistant to transcribe it into a different form, and so on ad infinitum. Privately, Thaois wondered why the Mauvasian Government bothered even attempting the semblance of getting things done.

He waited.

[OOC: Glorified bump!]

Encrypted Transmission
To: Andrew Marks, Chairman, Department of State, Imperial Commonwealth Republic of Mauvasia
From: Southeast Asian Ministry of Foreign Affairs
Subject: Mauvasian economic crisis

Dear Chairman Andrew Marks,

We are shocked and dismayed by the status the Mauvasian Commonwealth's economy may very well be heading toward. We in the United Sovereign Nations would very well like to help our Mauvasian friends out of this appaling state of affairs. But we have our own conflict to attend to with that of the Kraven Corporation. On the behalf of Southeast Asia, I wish Mauvasia well in returning to much more positive times.

Yours Sincerely
The Southeast Asian Ministry of Foreign Affairs

Marcellus Dvardia is a busy man. Like all busy men he has a massive stereotypical pile of paperwork on his desk, from which he will magically extract by chance the message stating the location of the Holy Grail.

... Well, not really. Computers have changed all that; nonetheless, it is a veritable deluge of e-mail that greets Dvardia as he pulls open his laptop. Groaning, he quickly scans through the messages, his finger hovering over the "Delete Message" button, for anything that may be interesting, muttering to himself.

"Spam... sales report, I can look at that later... spam... spam... spam... bacon... spam... Mauvasian Commonwealth opens for industry... spam... wait a minute."

He scrolls back up to the "Mauvasian Commonwealth..." message, and clicks on it.

After a few minutes he nods his head slowly, closes Outlook, and opens Word.

~~~~~~~~~~~~
Encrypted Communique
To: Andrew Marks, Chairman, Department of State
The Imperial Commonwealth Republic of Mauvasia

Greetings! As the CEO of Dvardii Defence Industries, I read your request with growing interest. As you may or may not know, DDI is a comparatively small corporation, its main purchaser being the Whole Sort of General Mish Mash of the Libertarian Concordance of Czardas (yes, that is its full title, shush), due to that being the nation in which it is based. We are always searching for ways to expand our unfortunately limited facilities; with your permission, we would like to open a facility within Mauvasia, employing Mauvasian workers and, you know, suchlike. Whatever corporations do in such a case, because I'm too lazy to go and find out right now and I probably wouldn't understand if I did. Oh whoops, this is IC, scratch that.

At any rate, DDI has been looking for some time for a new plant for the construction of aircraft -- both civilian and military -- which are DDI's primary product (over five thousand more have just been ordered by the Czardaian National Air Force for instance). If you accept this offer, it'll be mutually profitable; your economy will do better, and we'll get the extra work. I hope that you will agree; if so we can have a facility up and running within a couple of months.

Respectfully,
Marcellus Kevin Dvardia (respond to: marcellus.k.dvardia@czardasnet.cz)
CEO, Dvardii Defence Industries
~~~~~~~~~~~~

Foreign Affairs statement to Mauvasia:

The small nation of Anoriv is shocked and saddened by the collapse of the Mauvasia economy and we are willing to provide 2 million dollars to assist in any inflation or any other economic concerns tha may effect the economy of Mauvasia.

TO: Mauvasia
FROM: Founder, President & CEO of Norris Hotels & Spas, Stephen Norris

Greetings,

After hearing of your plight, I write to you with a proposal.

As you may know, I am the founder, President and CEO of Norris Hotels & Spas, a very large and successful multinational hotel chain that operates in over 80,000 countries, with more than 24 million hotels open worldwide.

So I write to you today in asking if you'd be interested in having one or more of our exclusive 20,000 room hotels being built and opened in one of your main tourist destinations. The hotel will bring 2,062 new jobs into the area. These jobs include: managerial staff, concierge services, chefs, waiter/waitresses, bellboys, security detail, valets, maids, and other miscellaneous staff for various other purposes, including masseuses, therapists, etc.

We estimate this will bring more than $157.65 million in personal consumption to the region. Money that will go into feeding your economy.

[Tag.]

[Encrypted Message]

To: Andrew Marks, Chairman, Department of State, Imperial Commonwealth Republic of Mauvasia
From: Xeccon Industrial Corporation

Xeccon Industrial Corporation produces a variety of products; from our base brand of civilian automobles to defense items such as aircraft and missiles.

We completely hate to see an economy collapse. This corporation has invested billions of Universal Standard Dollars into emerging markets all over the world to stop this sort of thing from happening - with mixed but positive results.

At this time we would like to officially offer you our assistance in the rebuilding of your economy. What we would like to do right now is move into your nation in a manufacturing capacity only. Particularly, we would like to construct three facilities to build our Global Urban Car, Global Light Truck, and a facility to produce transmissions and engines.

We could employ roughly 25,000 people in good, stable jobs at these places. Our production lines have been certified as some of the safest for Avisron-owned companies, which is a top honor.

After this stage of our plan is complete, we could begin to start investing in dealerships and actually selling our product within the nation - not to mention the possibility of more production facilities.

We understand the problems you are going through. We will, to the best of our ability, help you to overcome.

[OOC- If it's okay with you, I have some plans. I can talk to you if you're concerned at all about them.]

November 9th, Unknown Location, Samtonia
Ave Menghaus, despite not being listed on the boards of any major corporations, the stockholding lists of any company, or the list of richest Samtonians was, in essence, the most powerful businessman in Samtonia. Oh, not that you'd know who he was. Or what he controlled. But he had tendrils sunk into every major sector that he wanted to have tendrils in- and that included energy, defense, and manufacturing (to name but a few). A total of three databases in existence contained his name relevant to any major companies- The Department of State Security's black files, the Minister of Finance's completely secure archive, and his own master files.

Not one communicated his personality, something that almost no one had ever really experienced. He was, however, at this moment, beside himself with joy. He'd been given a heads-up on a nation opening its market... and opening its market in a big way. Planning had commenced the instant he began reading- planning completed after a few moments of thought. It wouldn't be hard to do- but how would it prove to be the most entertaining? His cackles of joy echoed through his great room as he began typing away madly at the ever-present keyboard by his side. Though he was constrained to a wheelchair, his devious mind had nothing so handicapping it and it was having a marvelous time.

Chametz-Hashid International Airport, 4 hours later
Sol Grumeran smiled as he strode through the door of the international terminal. He'd already gotten all the information he needed- and was scheduled for meetings with a number of contacts that he was to work with. Work over, in some cases, but Grumeran liked euphemisms. They made everything so much more.... acceptable. Like, for instance, the impending "hostile takeover" and "consolidation" of a number of key industries in Mauvasia.

Yes, it was a good day to be alive, thought Sol as he walked out to the waiting taxicab, sun shining down on the pavement. A good day for him- maybe not so much for some other people. And they would soon get some much worse days.

227 Capitol Place, Darmetz; 0836 hours

"Morning, Mr Chairman," an aide called merrily from somewhere behind the Chairman as he stepped lightly into the room, not a silvering hair out of place, and looked around at the assembled executive council members, including the chief executive officers of several of Mauvasia's larger corporations.

"Am I late?" he enquired in a murmur, seating himself beside Jean-Luc Thaois unobtrusively and leaning over to the other's ear.

"Not particularly, Andrew," Thaois responded in the same murmur, "you know how it is."

Andrew Marks did know how it was. Nothing ever seemed to be on time in the Mauvasian Government; it had been said to be the most bureaucracy-choked organisation in the world. It was sometimes a wonder it managed to get anything done, Marks reflected, settling back in his chair and clearing his throat.

"As you know, we have begun to receive our initial responses from the international community following the Congressional authorisation to open our markets. Therefore, in accordance with protocol, I have called this meeting in order that we might decide which offers we should accept, and which we should ... not."

There was a slight uncomfortable shifting across the table. Marks swept on unheeding. "The first offer received emerged from a military and aerospace supplier within the ... uh, nation, of Czardas."

"If I may intercede, Mr Marks," the Chairman of Defence, Louis D'Hiver, leaned across, "we have dealt with Czardas before. They were, if you recall, attacked without due cause by multiple dictatorial nations of the Coalition Against Democracy several years ago, and we attempted to intercede on their behalf in a peace conference. In addition, they do have an embassy in Mauvasia."

"I am aware of that, Mr D'Hiver," Marks said with a half-smile, waving D'Hiver aside. "However, bear in mind that this corporation is not the Czardaian government itself, merely a company operating upon Czardaian soil."

D'Hiver was silent, drawing back to his seat. A Department of State aide spoke now, "The question here, I suppose, is whether we really want a company that manufactures military armaments within Mauvasia."

"I am afraid beggars can't be choosers," Secretary of the Treasury Jordan Silverstein said, her glasses reflecting the light and making her eyes invisible. "With a hundred and twenty million unemployed, our welfare system is providing for only so many of them, and the poverty rate is increasing drastically. There are more Mauvasians with median incomes below twenty thousand dehavias [OOC: around $18,750] a year now than there have been in the past fifty years, and so far at least twenty-five thousand homes have been repossessed.

"The real question is how many jobs this company proposes to create," Silverstein continued. "Mr Marks, I'd recommend asking this..." she glanced at the sheet of paper, "Dvardii Defence Industries, before allowing them onto Mauvasian soil."

"Suggestion noted, Ms Silverstein," Marks said, scribbling something on a notepad. "Next we have an offer from the Norris Hotels & Spas Corporation, which is based in the Secular Empire of Maraque. This company wishes to open hotels in our major tourist centers, each of which may bring as much as $158 million USD, or something around a hundred and eighty million dehavias. Each hotel will create over two thousand new jobs, as well as provide revenue for construction companies."

"Hmmm... we could authorise the construction of hotels in Chametz-Hashid, due to its historical significance, dating back to the pre-European times... and likely Duriandor as well, due to the number of conferences and events that go on there," suggested Pierre Chaisson, the Chairman of the Department of Public Transport.

"Those are also the two cities with the worst unemployment," reminded Ms Silverstein.

"Suggestion noted, Mr Chaisson; I'll write to Mr Norris letting him know and informing him of the regulations his business should follow once in Mauvasia," Marks said, making another note. "Finally, we have the Xeccon Industrial Corporation of Avisron, which is highly interested in launching a multi-stage plan to rebuild our automotive industries."

"What would this proposal consist of, exactly?" Mr Chaisson enquired.

"Xeccon apparently wishes to open manufacturing facilities in Mauvasia for cars and trucks, creating approximately 25,000 jobs which they claim to adhere to rigid safety standards. They additionally maintain that they have done this before in other struggling economies with 'mixed but positive' results, whatever that means," Mr Marks said, with faint cynicism.

Ms Silverstein spoke, "Well, I don't see any disadvantages, myself. Simply inform them of the regulations they will have to adhere to and allow them in. I believe we have several areas scattered throughout the Dur and Amu Valleys in which we can build manufacturing facilities for them."

"Very well, Ms Silverstein," Mr Marks said. "I'll let them know. Call me if anything else comes up," he added.

[Sorry for the short and crappy post, I must leave. I'll be back Saturday with the list of actual regulations. Yes I know, I'm really organised.]

[PARTIAL TRANSCRIPT]

Taken from the records of the 1st Congressional Convention on Mauvasian Investment:
All corporations, publically or privately owned, based in foreign nations, that choose to invest in Mauvasian markets must adhere to the following requirements:
Workers must be paid a minimum wage of the equivalent of NS$8.25 per hour, as per Mauvasian law;
Working conditions must be sanitary in all respects (refer to Section 3 of the Chomley-Hortisan Act, records of the 87th Congress; attached);
Unless the corporation's Mauvasian branch is owned by a citizen of the Imperial Commonwealth Republic and her affiliated territories, it may not engage in hostile takeovers of corporations, publically or privately owned, based on Mauvasian soil and owned by Mauvasian citizens;
Corporations are permitted to engage in non-hostile bids and deals, provided that all involved parties submit transcripts and records to the Commonwealth government;
Unless permitted by the Commonwealth government, no branch of a foreign-owned corporation may utilise for its purposes any assets, including land, buildings, materials, &c. that it was not given the right to utilise upon its initial investment and establishment;
If the Mauvasian branch of the corporation in question is owned by a citizen of a foreign nation, leadership must be transferred to a Commonwealth citizen before thirty (30) months have elapsed;
The Commonwealth Government claims an 8.5% tax of all profits, and the Republic Government an additional 4.25%;
Additional regulations may be emplaced, but will not apply ex post facto (as per Mauvasian common law).
If any of these conditions is deemed inhospitable or unworkable by any party wishing to invest in Mauvasian markets, the party may submit a form explaining why the conditions are unsuitable to the Department of Commerce, or appear in person/send a representative to appear in person before a joint session of the upper Legislative Houses to offer an explanation.
[END TRANSCRIPT]

[OOC: As a side note, the Imperial Commonwealth refers to Mauvasia and all of her colonies and overseas holdings, whereas the Republic refers simply to the Mauvasian mainland and the government thereof. Overseas holdings are semi-autonomous; they send representatives to the Grand Congress and participate in the once-yearly Grand Assembly, but have their own Senates and executive branches, which are in turn nominally under the jurisdiction of the King, but in reality pretty much independent. I know, I have a complicated government.]

Official Communiqué
Classification: [commercial in confidence]
From: [SST, Ministry of External Affairs]
To: [the Foreign Minister of Mauvasia, or equivalent official of the same]
Subject: [regarding trade]

Dear Sir, greetings;

Several of His Serene Majesty's Subjects have indicated that their merchant ventures are extremely interested in your moves towards opening your markets to foreign investment. The economy of the Covenant places a major emphasis on manufacturing, and those merchant ventures that have indicated to this office that your offer interests them, are willing to explore your nation as a site for investment and the opening of operations.

Should you be receptive to this offer, my office is willing to put you in contact with those several merchant ventures. My understanding is that the merchant ventures look to create, within ten years, an estimated one hundred thousand jobs, with the option of a further hundred thousand in the following five.

In addition, several other merchant ventures have made it known that they are receptive to purchasing contracts from your companies for the supply of raw materials to those areas of business concerned with manufacturing based here in the Covenant.

We await your response.

Sir Silvanas Vasard,
Secretary of State for Trade
Ministry of External Affairs

**********

Sir Silvanas smiled as he dispatched the message. In truth, the COOs and CFOs had been even more optimistic in their employment projections, but had conceded that it was best to be conservative in these areas. They did seem amused by 12.75% "profit tax" though; a rather blatant grab to ensure some cash stayed in Mauvasia. Whatever works.

Annette Nicolson reached behind her pale but long white neck to pull her shoulder-length sienna-brown hair from its bun, snapping her neck to let it fall free. Nicolson smiled, happy at last to be on terra firma for the flight from Philadelphia had taken almost all of a day and despite the attempts by Oceanian Airways to increase the comfort of long-distance travel it was still a 20+ hour flight.

She was the chairperson of foreign operations for Crowne Financial Services, the largest financial institution in the United Kingdom and ever since the company had learned of the Mauvasian economic crisis she had been interested in a potentially highly profitable business opportunity. From her—and coincidentally her fellow chairpersons—perspectives, any growth of the Mauvasian economy would require capital investments and management of financial assets, all areas of commerce where Crowne excelled.

And as Nicolson began her walk through Duriandor, she knew that she would not be the only Oceanian beginning to put out feelers to a country that, at first glance, seemed to have a rather solid foundation for economic growth save the pesky regulations that could very well soon become part of the past.

What now for Mauvasia?
This failing second-world state may have potential, but the political mood is preventing any real progress.

http://img.photobucket.com/albums/v387/Praetonia/jobqueue.png
Unemployment in Mauvasia has breached 7% and is still rising, yet the country persists with its restrictive economic policies.
___________________
From 'The Herald'
Business - Opinion

Mauvasia is a name not often heard in political or economic discourse, and with good reason. The country's economy is paralysed by huge taxation, strict regulation across the board and especially totalitarian rules on foreign investment. As a result, more than 175 million people in the country who are eligable to work do not have jobs. The resulting poverty is causing severe hardship for the country's people, and its international standing is significantly reduced, as is its ability to protect itself and project power militarily.

The country is currently engaged in a half-hearted attempt to reinvigorate the nation's economy by means of foreign investment, but even the country's free market economists are bizarrely painting this limited opening up of the country's markets as an alternative to wider liberalisation, rather than a necessary prerequisite. This is clearly flawed logic - if Mauvasian companies, founded in Mauvasia which understand how the country works are not able to survive in its internal market whilst isolated from foreign competition by the government's archaic trade practises, what makes the Mauvasian government think foreign companies can do any better? What makes them think that moving to a corporate graveyard is an appealing prospect for foreign companies anyway?

The muted response that the Mauvasian government has received for their plea for foreign investment under conditions even stricter than those their own companies have failed to survive under is evidence enough that it simply isn't. To further illustrate the problem, the Managing Director of Imperial Metallurgy made a statement yesterday expressing a "deep and genuine interest" in opening a blast furnace complex that would take Mauvasian raw materials and refine them into steel whilst employing more than 42,000 Mauvasians directly (with more employed indirectly to supply the raw materials) and adding billions to the Mauvasian balance of trade, but said that "so long as wages are kept artificially high" the idea was "economically unfeasible, and certainly unattractive".

The statement ended with a scathing attack that questioned the entire basis of the Mauvasian economy, describing the recent limited liberalisation as "an attempt to apply a sticking plaster to stop a heart attack".

Along with all other potential investors, Imperial Metallurgy has been condemned by implication as a group of "economic imperialists" by Mauvasia's President, as has the Herald (which, as our Mauvasian readers will no doubt be aware, has begun distribution in the country), by the country's President, and this appeal to petty nationalism is the only apparent justification for restrictions which have perplexingly been increased for foreign investors, who are supposed to be delivering the country from its regulation and taxation-induced economic malaise. This argument has no validity whatsoever. For-profit companies are not bought nor expanded to wield power over the governments of the countries they are in, but to make money, which is an interest in conflict with politiking. It would be easy to prevent foreign governments from buying up strategic assets simply by banning the sale of strategic assets to foreign governments, without need for extensive and damaging regulation of others.

The fact of the matter is that the Mauvasian economic model, for all it espouses its noble intentions, has proved economically and socially devastating for the country. The country's massive NS$8.25 minimum wage is the most intellectually and morally bankrupt example of the system - at a time when more than a hundred million are out of work, the government imposes a price floor on the country's labour market, simultaneously reducing the supply of jobs and increasing the end cost of goods - a cost that will be passed on in part to those prevented from gaining jobs themselves due to the minimum wage.

The Herald, for example, costs 5 shillings equivelant in Mauvasia, compared to just 3 shillings in Praetonia despite the same profit being made on each issue distributed in both countries because more must be paid for the staff and in tax on profit. At the same time, fewer people are employed per paper produced, because it is unaffordable to employ as many low-skilled workers as the paper otherwise would. Thus the people of Mauvasia are forced to pay twice - once in unemployment and again in artificially high prices - for laws that do nothing but harm the general populace for the benefit of a lucky few who end up with jobs paying more than they are worth.

There are 42,000 unemployed out there today in Mauvasia who would have a job if the totalitarian restrictions on business in the country had not prevented Imperial Metallurgy from opening their plant. Forty-two thousand. It is unlikely that they know who they are, because if they did they would not accept their government's policies which have stolen their jobs from them. There are, no doubt, millions more who would also have jobs from other companies, Praetonian, foreign and even Mauvasian, were it not for the existance of these restrictions.

Mauvasians, your enemy is not your domestic private sector, nor foreign "economic imperialism", but your own government. If it is not removed, you will never enjoy the prosperity you deserve.

[OOC: As you've probably gathered, that was also published in the Herald in Mauvasia.]