NationStates Jolt Archive

Organization for International Economic Development

(Logo coming..eventually)



~Overview~

The Organization for International Economic Development is a broad international economic forum for relations between highly-industrialized free-market democracies. The goals of the organization are numerous; these include promoting free trade and free market economics in general, promotion of pro-economic ideals and ordinances, economic policy research, substantiation of current worldwide economic trends, and regular indexes of far-ranging economic parity between member states. The said organization is made of of several of the world's leading economic powers, whom are representative of the groups high marks in terms of influence and economic prosperity.

~Structure~

The OIED serves as a economic think tank, promoter of free trade and Laissez-Faire Capitalism, and informal forum for worldwide economic ventures. The main body of the organization is made up of several key states, of which presidency rotates on a monthly basis. There are currently 6 branches of the organization. These include the following, which will be discussed in more thorough detail in the following paragraphs.

*Standardized Trade Agreements (STA)

*Possible Free Economic Interest Areas (PFEIA)

*Research Institute for Economic Viability (RIEV)

*Economic Policy Standardization and Development (EPSD)

*Center for Economic Deficiency (CED)

*International Investment Agency (IIA)

Standardized Trade Agreements

Tasked with promoting a Free trade market economic model between member states, including international trade free of tariffs or use of import quotas, including manufactured goods, services, and specialized labor, expanding the PPF between members. Promotes reform of trade-distorting policies instituted by various governments.

Possible Free Economic Interest Areas

Also know as the “Junior OIED” this agency is directly tied with the central OIED body. This includes nations that have failed to meet the conditions to join the organization, yet are developed to the point were economic policies instituted by major member states would have in essence the same effect on said states, greatly enhancing the economic abilities of said states. Once joining, states are free to enact and provide insight on economic ordinances and models suggested by the EPSD.

Research Institute for Economic Viability
The media and research side of the organization. A think tank consisting of various economists from the various member states, whom, among other things, publish a weekly magazine providing insight into recent policy changes, provide economic insight to governments wishing to improve their economic productivity and prosperity, and is the body used to “Grade” nations using the OIED Economic Freedom Index (EFI).

Economic Policy Standardization and Development
The main legislative body of the OIED. Used to promote the standardization of economic policies and regulation of business between member states, including suggestion of economic models that would benefit said nations economies and global trade in general.

Center for Economic Deficiency
Agency working in unison with the RIEV, maintains a list of “Red-Zones” ; nations and areas earmarked for the instability of said market or failure of the present economic system in said states. A “No-No” list of area's for economic ventures and investment. The OIED also offers the ability for said states to work with the organization to repair damages to the currently used system, and increase the economic viability for the nation in the long term.

International Investment Agency
Near opposite of the previous agency. Maintains a list of areas marked as “Economically beneficial”; nations, cities, or regions in which investment will positively effect both the local economy and the said company choosing to invest, and area's showing promising economic growth, providing a wealth of information to investors and companies.

~How to join~
The OIED has excessively steep requirements.

Foremost, the applicant state must have an economic rating of frightening or above, and a population exceeding 2 billion.

(Note:Nations failing the first requirement can submit the following application with the intent of joining PFEIA)

Following the first requirement, the nation wishing to join must submit an extensive overview of its economic model and freedoms, separated into the categories listed below.

Business Freedom

Ease of creation of a new business, market environment (ease in maintain of new businesses, ease in acquiring a business license, etc), and amount of government regulation on business.

Trade Freedom
Includes tariff rate, duties applied to traded goods,restrictive regulations of trade, market access, etc.

Fiscal Freedom
Tax rates, brief overview of applicant nations tax system, overview of miscellaneous taxes on the people of applicant state.

Freedom from Government
Government expendure of budget, including consumption and tax revenue from government regulated businesses. Amount of government control over economy.

Monetary Freedom
Rate of inflation within applicant nation, stability of national market, government regulation of prices on nationally funded staples, such as public transport and electricity.

Investment Freedom
Ease of foreign investment in applicant state. Possible limits on foreign ownership or procedures inhibiting the process of setting up a foreign business.


Financial Freedom
Importance of Financial Services within applicant nation. Legal environment's effect on financial sector. Restrictions on foreign banks or institutions, and stock exchange capitalization.


Property Rights
Protection of ownership rights via legal system, freedom of exchange in property, including sale, purchase, renovation, and demolition. Ease in acquiring a land lease.

Freedom from Corruption
Amount of corruption, or lack thereof, within applicant state's economy.

Labor Freedom
Ease or flexibility of employment regulations, regulations on employment, and effect of labor code on business practices and activities.

~Examination Process~
Following the submission of the previously outline of national economic policy, each category will be individually ranked on a percentage scale by key member states. After which such tallies are taken, the averages for each category will be grouped to find an average overall economic freedom index (The OIED EFI). Applicants whom exceed 85% economic freedom will be granted entry to the organization. Those scoring higher than 80% will be inducted into the PFEIA until economic development is suitable to the point whereas the state in question can successfully join the organization in its entirety.

Current Member states
*Willink
*Gurguvungunit
*Hamptonshire
*Oceania
*Pacitalia
*Southeast Asia
*Freethinker Commonwealth
*Praetonia

(OOC-Only serious applicants will be considered.)

[OOC: Interesting indeed...tagged this thread has been.]

[OOC: Interesting indeed...tagged this thread has been.]

OOC: SEA, how many times do we have to tell you - we are not allowed to tag threads anymore... it's been like this for over a year now, mate...

OOC-Updated requirements to be less unrealistic.

OOC: Bump. HA.

No Taxes would like to join the OIED.

Population: 2.244 Billion

GDP per Capita: $47,059.86

Business Freedom
In opening a new business, all that one must do is register with the Minister of Commerce and this usually takes on average only several hours. There is no fee for this, and as long as it does not directly conflict with the rights of others it can be operated in whatever manner its owners choose. Businesses in some industries are heavily subsidized and small businesses can usually get loans with very low interest rates.

Trade Freedom
There are zero tariffs or duties in No Taxes, except on weapons and the only restricted items are large weapons (tanks, nuclear weapons, fighters, etc.) Market access and foreign investment are both unrestricted.

Fiscal Freedom
There are no taxes on income, and thus the majority of the government's budget comes from property taxes, which vary from province to province. There is also a sales tax on weapons, along with duties applied to weapons.

Freedom from Government
The Government's budget usually stays right around 11.7% of the GDP, with 66% of this going towards commerce, 33% towards defense and 1% towards education. The Government does not directly control any businesses, instead preferring to contract private businesses for things like infrastructure maintenance. The Government tends to stay almost completely out of the economy, except to break up monopolies and issue business licenses.

Monetary Freedom
The current rate of inflation is 3.8%, though this can fluctuate since the government for the most part does not manage inflation. The national market is mostly unregulated by the government and thus tends to be more sensitive to international trends, yet for the most part stays reasonably stable. The government does not fund any type of public transport system. Electricity is provided by several different private companies, whom the government monitors to prevent monopolies and ensure that the prices stay reasonable.

Investment Freedom
Foreign Investment is for the most part completely unregulated. Foreign investors, especially private, are even given benefits such as tax reductions. Foreign Governments are regarded somewhat more warily and tend to be regulated so as to prevent exorbitant investment of purchase of land.

Financial Freedom
Recent low interest rates combined with a spate of consumerism have driven up the number of loans by the average consumer. Saving rates are down as a result and the banking industry has been thriving recently. The financial sector tends to be mostly unaffected by legal matters except with regards to stopping monopolies. Foreign banks and institutions also remain mostly regulated and there are many stock exchanges whose combined market capitalization is well over $100 Trillion.

Property Rights
Ownership rights are fully protected by the government and can only be exchanged by a legal agreement. The government tends to stay out of most matters regarding private property except for protecting ownership rights and a land lease can generally be acquired easily.

Freedom from Corruption
Corruption in the government tends to be small, both because of the small size of the government and because of the harsh punishments for corruption. However, the very little amount of economic regulation allows a certain amount of corruption to thrive. Corporations tend to have large amounts of political influence, through private donations.

Labor Freedom
Like in the rest of the economy, there are very few employment regulations and the ones that do exist tend to be flexible. There is no minimum wage and workers are allowed to form unions; however, employers can fire employees for almost any reason, which in many cases discourages the formation of unions. This has driven down income for many lower-class workers, yet in recent years wage prices have stabilized and risen. Businesses use the unregulation to look for obedient and qualified workers who will work for the lowest price.

(OOC: Let me know if I need to give any other info)

[Official Message]
http://i2.photobucket.com/albums/y10/68157Silver/sealcopy.png

The Armed Capitalist Republic wishes to submit its official petition to join the Organization for International Economic Development. We believe this is an ingenious way of promoting free-trade and free-market policies. We hope that you will accept us after viewing our outstanding credentials. We also hope our outstanding economic relations with Willink, and Hamptonshire, as well as our budding relations with the Freethinker Commonwealth, and our long standing relationship with Pacitalia come into play. Attached is a copy of our economy credentials, our 'resume' if you will. I hope it impresses you.

[Skyian Credentials]

Economic Freedoms on UN Scale: Frightening

GDP Per Capita: P$46,401.26(NS Tracker); P$49,908.80 (My own calculations)

Business Freedom:
Setting up a business in The Silver Sky takes an average of three [3] days, and only a few dozen dollars. The sound business environment allows entrepreneurship to flourish. Obtaining a business license is very easy and streamlined, and closing a business is just as fast if not faster then opening one. Freedom to start, operate and close a business is protected by the Skyian Business Regulatory Commission, a small streamlined body that meets every two [2] months.

Trade Freedom:
The Silver Sky has an average tariff of zero [0] percent. With the exception of three categories of goods -
Heavy weapons, sea borne objects displacing over 250,000 tonnes and fissile material (nuclear weapons) - trade is essentially duty free. Market access and foreign investment in The Silver Sky are unrestricted and encourage to a point. Tariffs may be slapped on companies if said company has a poor track record, and only after an extensive review by the Skyian Trade Commission.

Fiscal Freedom:
There is an average income tax rate of twenty-nine [29] percent in The Silver Sky, however certain people (anyone with dependants or in/entering college) with income under P$19,000 per year get their taxes slashed or even entirely removed, a compassion clause. There is no property tax on residential or agriculture land in The Silver Sky, however commercial and industrial buildings do have a property tax dependant on which province/colony they are in, and this tax generally goes to the state government.

There is a limited sales tax, only applying to items over P$4,000 or weapons. Again, this varies state by state and goes to state funds.

Freedom from Government:
The Government's Budget is now at twenty-nine [29] percent of the GDP, although as the GDP PPP grows, tax rates will fall. The budget breakdown is this.

Six [6] percent goes to both social welfare and the preservation of the environment. Ten [10] percent goes back in the form of income tax returns. Thirteen [13] percent goes to Administration, in the form of paychecks to government officials and grants to states, and also to Public Goods, such as public power districts, and public transportation. Eighteen [18] percent goes to both Law & Order, and Education in the form of grants to public schools, and military academies (alternative to public/private school starting at Grade 7). Defense receives the largest amount of the government budget, a good twenty six [26] percent, partly because of high wages paid to servicemen and women.

Government intervention into the economy is limited at best, and only to grant business licenses, regulates inflation, and give out needed contracts. Monopolies are allowed to form but are restricted from going over 58% control of the market.

Monetary Freedom:
The current rate of inflation is 1.8% the rate of inflation is sometimes managed by a central banking system and government bonds. Although these tools are available they are generally not used, the last major use being over six [6] years ago, instead the rate of inflation is held stable by competition between companies, even We Buy It Inc. must bow to corporate competition. This, and investment by highly regarded foreign banks keeps prices relatively stable even during waves in the international market.

Public Transportation is government funded, as are interstate and national highways. Power and utility companies are privately owned but put under government regulation to prevent large monopolies or inflated prices.

Investment Freedom:
Foreign and Domestic Investment in the market is mostly unregulated, and encouraged through advertising campaigns. The government owns all land not held by private entities, however, it generally tries to sell land as quickly as possible, keeping only what it needs and selling the rest at fairly low prices to real estate companies, both foreign and domestic, however, their are rules against the purchasing of 'too large' amounts of land.

Private Foreign Investors are given temporary tax breaks to get into the national market. Banking and security exchange companies are also given temp tax breaks.

Financial Freedom:
Interest Rates have stayed in the low range for many years, encouraging people to take out loans and start businesses or just buy things. This however, has not started an 'under saving/over spending trend' like in other countries, as the Skyian tend to be a conservative people. Though overzealous foreign investors may find themselves in a crunch from too many loans and failure in the stock market. Competition between advanced Banking, Securities and Equity Companies, many foreign, has kept interest rates low while boosting the economy to new levels.

The market tends to have very little regulation, besides to break up monopolies and prevent catastrophic bank failures. Foreign Banks make up a large percentage of the market, almost 45%. And the capitalization of several stock markets is exceeding P$145 trillion.

Property Rights:
Ownership rights are fully protected by the government and state legal agencies and can only be exchanged by a legal agreement. The government tends to stay out of most matters regarding private property except for protecting ownership rights and a land lease can generally be acquired easily from one of the many real estate companies. Contracts are very secure and filing and verifying of them is streamlined.

'Imminent Domain' exist on levels from local to national, but the uses are restricted and the cost is heavy really restricting its use.

Freedom from Corruption:
Corruption in the government tends to be very small. Campaign contributions by companies and limited by law, and tend to be looked down upon. Lawbreakers are punished, and the lack of overall control of the economy by politics keeps the lobby very small, usually only consisting of power companies or defense contractors.

Labour Freedom:
There is no labour party in The Silver Sky… This is a great relief for the military.

Joking aside however, this section of the economy probably has the most amount of regulation, there is a minimum wage for foreign companies of P$6.75 per hour, or about P$14,040, however, limited healthcare for workers is required, usually in the tune of P$2,000. Generally, any foreign company worth its salt is able to pay this, allowing workers to pick the best job for them, this also keeps companies like those in the Corporate Alliance from paying super low wages. However, competition generally keeps companies paying higher salaries then the minimum wage.

Workers are not allowed to form major multi-corporation unions in order to keep prices low; however, they are allowed to make single company unions. There are laws against discrimination against workers based on sex, religion, or race.

Communique to No Taxes
The OIED thanks you for your application. However, under the stiff economic grading system, we regret to inform you that your nation has failed to meet the sufficient standards for gaining entry to the organization. Reasons for such, along with score, are outlined in the following section below:

Business Freedom:90%

Trade Freedom:87.25%

Fiscal Freedom:83.75%

Freedom from Govt:83.5%

Monetary Freedom: 78%

Investment Freedom:83.13%

Financial Freedom:87.25%

Property Rights:86.75%

Freedom from Corruption:73%

Labor Freedom:65.75%

Total Economic Freedom:81.83% Free

Points of Concern:
1) Lack of labour protection raises question both about protection of individual rights of workers and coerced consent, as well as questions about the actual consumer strength of the lower social economic groups.

2) High commerce spending of government would indicate at least fairly high levels in certain areas of subsidization, with the subsequent adverse affects this has on market freedom.

While the economic freedoms in your nation are insufficient to garner entrance to OIED, they are reasonable enough to gain entry into PFEIA.

Again, we thank you for your application, and hope you can make your decision in the near future.

Signed, board of directors, RIEV

OOC: SEA, how many times do we have to tell you - we are not allowed to tag threads anymore... it's been like this for over a year now, mate...
[OOC: I know, I just forgot about that till you reminded me...never mind.

IC post detailing details are coming.]

http://www.nationstates.net/images/flags/uploads/whyatica.jpg
The Grand Imperium of Whyatica
The Grand Imperium expresses it's official wishes to join the Organization for International Economic Development. The cause for free-market capitalism is a cause that the Whyatican Empire has espoused for it's entire existance, and we believe that the OIED is an excellent vessel for the cause. Attached is the Whyatican economic list as per the application.


Economic Freedoms on UN Scale: Frightening

GDP Per Capita: cr41,076.41 (NSTracker)

Business Freedom:
Opening a new business takes on average two to four days and very little money. A new small business must send a simple application for a business license to their regional Regulatory Commission which in practice never denies applications. The right for a Whyatican man to do business freely is guaranteed in the Imperial Constitution.

Trade Freedom:
Whyatican tariffs are slim to nil on the vast majority of goods. The use of the tariff has only been used in the case of abusive corporations such as Griffincrest, which has been one of only five corporations which has duties on any of it's goods. 100% foreign ownership is permitted and there is no limit to market access in Whyatica. There is a commission that meets twice monthly for a brief overview on the trade balance of the Empire and it's colonies.

Fiscal Freedom:
All Whyaticans are taxed 15.5% of their income, which is removed automatically when a Whyatican gets their paycheck. All citizens are encouraged to manually check their taxes removed against their income, and if there is an error in the favour of the citizen (such as paying too much), the difference is returned to the citizen. Conversely, if a citizen has paid too little, back taxes are also drawn. Students in secondary education can receive a tax grace period as long as they are enrolled in secondary education and making adequate progress to their degree. Religious groups that do not work in charitable areas are taxed equally to everyone else. Groups that can prove their work is charitable are tax-exempt.

Freedom from Government:
The government's budget is at approximately 25% of the GDP, however, several tax slashes are decreasing the size of the budget. As the Whyatican Empire effectively operates as a Night Watchman state, the majority of the budget goes to the Defense Ministry and the Ministry of Internal Security, which runs the police and other investigatory agencies. Some public money is dispersed to charity groups which provide for education and health care, but comparitively little.

The role of government in the economy is exceptionally limited. The regulation of inflation, contracts for defense and internal security, and the granting of licenses to do business are effectively the only regulatory measures the Whyatican Empire takes. Monopolies are permitted to form provided they do not become abusive in their control of the market, consumers, and workers.


Monetary Freedom:
Inflation is regulated by the Central Bank of Whyatica, which normally uses interest rates to control inflation. The current rate is 1.9%. The last major interest rate change was two years ago during a minor downturn in the economy. Prices are kept stable by relentless competition in all sectors of the economy. There is no redistribution of wealth process such as that in socialist or communist nations.

Investment Freedom:
Foreign investment in the economy is encouraged, and there is no protective tariff protecting Whyatican industries. However, the competition for any foreign group is quite fierce and certain foreign companies were driven out of business almost immediately after opening up shop in Whyatica due to the relentless competition from domestic and other foreign companies. 100% foreign ownership is allowed, although most foreign companies choose to sign up with an entrepreneur or venture capitalist in Whyatica before entering the market.

Land ownership is largely unregulated. All unincorporated, unexploited land is technically the property of the Imperial Government, although it delegates the power of usage to the regional governments which largely delegate those to the cities nearby. As such, the regional governments tend to sell off unused land quickly if at all possible. Land banking is frowned upon, and there is no limit to the amount of land one corporation can buy. The lack of a ban is largely due to the fact that there is very little unused land in mainland Whyatica to begin with, and developing undeveloped colonial territory is encouraged.

Financial Freedom:
The fact that interest rates have not risen significantly for years and years has encouraged most Whyaticans to consume more - combine this with the recent income tax cuts and the Whyatican economy is seeing the beginnings of overconsumption. Large public campaigns from bankers and other savings experts have begun to stem this tide, with more Whyaticans choosing to save their earnings instead of rushing out and buying a new toy. Low interest rates have damaged bank income somewhat - this is compensated due to the fact that with low interest rates the volume of loans being made is so much higher that most of the income lost is regained.

The Central Bank exists solely to prevent large-scale stock market crashes and bank failures. It is a semi-private company, with the Imperial Government owning 51% of the shares, the only such case in the entire economy. It is partially funded by public money and partially funded by it's own income as a private bank, as it controls approximately 15% of the banking market in Whyatica.

Property Rights:
The right of a Whyatican to own property is guaranteed through the Imperial Constitution; it is one of the things held sacrosanct, and the violation of this through any means is harshly dealt with by the government. Legal contracts, with copies filed with the local regulatory commission are the only ways to transfer large-scale items such as land. The leasing of land through either governmental land or real estate companies is largely unregulated, again, with the local commission being notified and rubber-stamp the effort. In practice very few people have their lease nixed.

The use of 'imminent domain' is not specifically prohibited but as of this date no regional, local, or national government has attempted this.

Freedom from Corruption:
The use of campaign contributions and lobbyists to control the economy is very limited due to the limited role of government - there is a great stigma against candidates recieving large corporate donations. In certain elections the better-funded candidate has lost because the other candidate successfully painted them as a corporate shill. Government corruption tends to be dealt with quickly and quietly, although there have been massive high-paced trials in the past for law-breaking MPs.

Labour Freedom:
The freedom of labour to organize into unions is permitted, limited to industries. There is no national union for all workers. There is a de facto minimum wage of cr1/hour, but the real minimum wage floats according to market value, and is currently around cr5.15/hour or cr10,712/year. That is not including healthcare benefits that the majority of companies provide to their workers. There is a large labour deficit in many industries that keeps pushing salaries and healthcare benefits higher in order to attract new hires. This is particularly prominent in information technology and aerospace design. Large-scale retailers providing low-end jobs such as Norco are always in competition with other companies to attract more employees, and the average wage of new hires at big-box retailers is cr5.50/hour.

Discrimination by gender, race, sexuality, etc. is not permitted in most industries - one of the notable exceptions being pornography.

OOC-Much needed bump.

Business Freedom

Starting a business requires an application listing financial data, business model, legal status and past employment/business history to the Ministry of Economic Development, which usually takes two to four weeks. The Vetalian Central Bank provides special loans to new businesses.

This model is the same for foreign and domestic businesses that meet the requirements, and foreign businesses that are market economies or SCS partners.

Trade Freedom

No tariffs, trade barriers, restrictions or other sanctions on goods from nations classified as "market economies" under Vetalian law and all non-market economies granted Special Cooperative Status with the country. Nations that do not fall in to these categories are assessed a standard tariff of 15% for nondurable goods and 30% for durable goods. Classification via audit as a market economy or SCS partner is performed by the Ministry of Trade by nations that apply and pay the fee of 50 million Solaris.

The Vetalian government does reserve the right to impose sanctions and expropriate property of foreign nations if deemed necessary.


Fiscal Freedom

Taxation is levied as a single flat tax of 35% on income. A negative tax provision is given to those with an income less than 25,000 Solaris. For incomes higher than 1,000,000 Solaris, a flat tax of 25% is assessed according to net worth and compared to income tax, with the higher amount being paid.

Freedom from Government
Government expendure of budget, including consumption and tax revenue from government regulated businesses. Amount of government control over economy.

Monetary Freedom

No price controls, restrictions on pricing, or any form of government regulation of the free market. Monetary policy is determined by the wholly independent Vetalian Central Bank which adheres to monetarist monetary policies and a rule for growth in the money supply equal to long-term potential real GDP.

The Vetalian Solaris is freely traded and is currently trading at a rate of $1.97 per Solaris.

Investment Freedom

Law for foreign and domestic investment is identical for market economies and SCS economies, and country of origin plays no role in the selection process except in cases where trade is halted for diplomatic reasons. Nations that do not fall in to market economy or SCS status must pay additional costs and submit additional financial and management data in order to ensure there is no abuse of the investment system.

Financial Freedom

No restrictions on stock market investment except for stop-loss provisions to prevent market crashes, laws against insider trading and false information, and other regulations to protect against criminal abuse of the trading system including identity theft. IPOs require a review of financial prospects and corporate transparency prior to approval.

Property Rights

The right to own, lease, rent, and develop private property for any legal purpose is part of the Vetalian Constitution of 1973. The government still maintains the right of eminent domain for government projects and certain private sector projects deemed vital to economic development and the proper working of the free market.

Freedom from Corruption

Corruption is generally low, but the Vetalian Mafia, or Organizatsiya, has a presence in the gambling, alcohol, and other industries. Illicit drugs sales and trafficking are also problematic. The government's Bureaucratic Accountability Office and Special Security Bureau are the primary anti-corruption offices in the Vetalian government and work with the police and judicial systems to coordinate anti-crime and anti-corruption efforts.

Labor Freedom

Employment is at will and closed shops are outlawed. Formation of unions is allowed and companies are prohibited from firing workers which wish to unionize. However, unionization is relatively low, both due to the decline in heavy manufacturing and the overall strong economic climate.

OOC: Did I ever get in? I think hamp said I did, if so please add me to the memberlist.