[Non-Canon] Testlandia's Economic Catch-Up Proposal

[Iverica]

Sample OOC Outline

This is a sample OOC Outline which eligible catch-up participants can use as reference for their own. NOTE that this is part of a larger Google Document that will be linked once it has been reviewed. Also note that the Document has annotations which explain why things in the outline are the way they are. I am releasing this so our participants get an early look at what is expected of the outline and can start work while review is still ongoing. This is not finished and further content may be added or removed from this sample. Do not expect things to be permanent or settled at this point.

 

Current Stats

Population: 50,000,000

Growth Est. (CY2022): 3%

Nominal GDP: $250,000,000,000.00 Adapton Solidus (250 Billion)

GDP Per Capita: $3,125.00

 

Target Stats (After 4 Years)

Target Population: 56,988,474

Mean Growth (AVG 4 years): 3.32%

Target Nominal GDP: $500,000,000,000.00 (500 Billion) 

GDP Per Capita: $8,773.70

 

Brief Background on Economy

Testlandia has a developing middle-income market economy. Long term growth is positive because of [population characteristic], [education trend], [foreign investment situation], [key policy change], [other]. X Percent of the current GDP is driven by Domestic Consumption but the current trends have been showing movement towards diversification with export values increasing year-on-year. Testlandia is a newly industrialised country transitioning from a largely agricultural economy. Testlandia remains a low-technology country with a developing transportation infrastructure. It has struggled to gain market share among regional competitors but increased development of seaport infrastructure, railway systems, and highways have projected to increase the country’s export volume by % in [yyyy].

 

After a gruelling 5 years spent in anti-corruption reforms involving a widespread audit of ombudsmen, accountants, and senior officials, Testlandia has recently claimed that corruption is in sharp decline, as evidenced by open media reporting over the last year and by its new policy of fiscal transparency which allow NGOs to take part in the auditing process of public service accounts.

 

Overview of Strategy

The government is depending on the increased revenue of [industry], projected to increase by % in [yyyy], to increase incomes and domestic spending as well. The Testlandian government announced that it would be conducting a bilateral tariff reform with Maxtopia to reduce tariffs in the X industry and X industry allowing for an increased export value and volume of ### while allowing Maxtopian [PRODUCT] to compete in Testlandian markets, challenging a domestic monopoly of the [PRODUCT]. In light of the (retroactive) 10-year long-term contract to supply X to Maxtopia secured by [Largest company 1] and [Largest Company 2] in 2016, the tariff reduction will bolster revenues in [industries]. Currently, annual exports from [2 largest companies] contribute 33% of gross national revenues in the [Industry]. With a reduction in tariffs and an increase in demand from their Maxtopian buyers, this figure is projected to increase year-on-year in 2022 until the end of the contract in 2026. Following government oversight agreements [Companies] have agreed to some measures including; accepting foreign consultants, temporarily outsourcing R&D to Maxtopian companies, including high-technology innovators from Maxtopia as suppliers in key segments, and commencing a widespread training program for a rotation of its lead engineering teams in [Foreign Country with High Education Quality].

 

Coupled with [strategic inflation measures like Quantitative Easing or others] and lowering interest rates, the government plans to incentivise X Industry companies to increase salaries by offering tax deductions commensurate to the volume of lower salary grades raised. Likewise, interest rates offered by national banks and state partners are also being lowered for Small-Medium Enterprises and for lower-income brackets. To sustain the increased spending, the administration plans to increase its revenue from foreign investments by reforming Foreign Direct Investment regulations and adding comprehensive legal protection for registered foreign brokers, equity firms, and sovereign investors. Furthermore, it plans to issue a new class of government bond with an X year maturity date and a % interest rate. Tax reform, though controversial will introduce a Sin Tax and Value Added tax for tobacco, hard liquor above 39.99% ABV, and for inelastic luxuries like jewellery.

 

Since 2016, increased family incomes have come with a tax that puts % of income into a partition of the Sovereign Wealth Fund that will also be used to improve the training, salary, and welfare of educators. Public Corporations have also been incentivised to begin charitable funds for state universities and public schools. Participant corporations will have the benefit of choosing scholars for an X year lock-up apprenticeship or employment period. Private Universities are also being incentivised with tax deductions or partial subsidies to hire foreign consultants and educators to create new degree programmes or improve existing ones.

 

Annual Goals & Quarterly Challenges

 

2022

Population Growth %: 3%

Nominal GDP Growth %: 25%

Nominal GDP Growth: $62,500,000,000.00

 

Year Overview: In 2022, the Testlandian government’s excessive spending over the last 6 years has begun to catch up to them. National Debt is up by 40% and inflation is setting a record high 18% with the increases in wages across income brackets hardly keeping up… [Set the stage for your quarterly challenges and explain the year’s economic conditions].

 

Quarterly Challenge 1 (April-July): Testlandia realises that inflation is quickly becoming hard to manage. But forces in the government disagree on its current fiscal management. The Finance Ministry and the National Whatever Reserve will have to slow inflation by raising interest rates again and slow down Quantitative Easing. However, if it does this, consumer spending could be affected, which certain interest groups would rather not experience… [Okay, don’t copy this. I just blurrbed this out and don’t expect someone to RP their interest rate plans and the ramifications on 2022’s retail and food markets. Use this as an example only]

 

Success Trigger: Testlandia must come out with a plan to manage inflation with minimal effects against the growth of domestic consumption

As mentioned (in the document) YOU CAN FAIL. There are risks involved to allow a member to experience the whopping 25% GDP growth per year. There are also degrees of success. Recall Step 5 (above) At the end of the year, the success of each quarterly challenge will be considered. For 4 challenges, each challenge counts towards 25% of filling the target amount. Hence succeeding 3 out of 4 times nets 75% of the target.

 

Quarterly Challenge 2

Quarterly Challenge 3

 

2023

Population Growth %: 3.2%

Nominal GDP Growth %: 25%

Nominal GDP Growth: $62,500,000,000.00

 

Year Overview: In 2023, the administration…

 

Quarterly Challenge 1: 

Success Trigger:

Quarterly Challenge 2

Success Trigger:

Quarterly Challenge 3

Success Trigger:

Quarterly Challenge 4

Success Trigger:

 

2024

2025