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Zaxar's Economic Catch-Up Proposal


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The Empire of Greater Zaxar Official OOC Outline: Economic Catch-Up Proposal

This is the first draft of the Economic Catch-Up Proposal for the Empire of Greater Zaxar. This is by no means final and still must undergo review by @Iverica and other members of the staff. Any countries mentioned in this proposal have been tagged and have every right to decline my ability to use their nation within this program. Any comments or concerns regarding this proposal may be addressed on discord or on this thread if preferred. As this draft is not final, it will likely undergo several edits and will eventually provide a link to the final draft of the proposal. This proposal is designed to cover events taking place from 2022-2025.

 

Current Stats

Population: 10,000,000

Nominal GDP: $50,000,000,000.00 (50 Billion)

GDP Per Capita: $5,000.00 (5 thousand)

 

Target Stats (After 4 Years)

Target Population: 36,000,000 (similar to Morocco)

Mean Growth (AVG 4 years): 33.7% (assuming growth is compounded annually)

 

Target Nominal GDP: $840,000,000,000.00 (840 Billion)

Mean Growth (AVG 4 years): 102.5% (assuming growth is compounded annually)

 

GDP Per Capita: $30,000.00

Mean Growth (AVG 4 years): 56.5% (assuming growth is compounded annually)


 

Brief Background on Economy

The economy of Greater Zaxar is a developing 3rd wurld market economy located in Southern Aurelia. The economy is currently experiencing strong growth because of recent exploitation of lithium deposits, a significant rise in the number of college graduates, several significant global trade deals, and increased government investment into infrastructure and development projects. The majority of Zaxari economic growth is contributed to rising foreign demand for Zaxari goods and Greater Zaxar is therefore considered to be very reliant on trade for continued growth though the domestic market is projected to grow quickly and soon be able to support a significant portion of the market.

Greater Zaxar is a developing country and has recently transitioned from a largely agricultural and aquacultural economy into a more diversified economy made up largely of the lithium mining industry with contributions from the pharmaceutical industry. Zaxar remains a fairly low-technology country though it has recently made efforts at modernization. Zaxar has quickly and relentlessly cornered the lithium market of Eurth and is the only significant exporter of the metal. This has led to the Empire gaining significant trade influence and foreign investor interest which will certainly be used to improve the country's economic situation over the coming years.

Zaxar experiences little known corruption which is often attributed to the strong patriotism of the Zaxari peoples following the Flaxzar War of the twentieth century. Inflation is currently very low, however, experts predict a rapid rise in consumer prices if the nation continues to grow at its current rate. The country has strong environmental protection laws which have been cited as a significant hinderance to economic growth. There has also been recent problems with workers unionizing across the nation and demanding higher pay thanks to the national labor shortage.


 

Overview of Strategy

The Zaxari government is relying on the projected growth in revenue from the lithium industry, projected to more than double before 2024, to increase incomes as well as foreign investment. The Emperor's government announced that it would be working to reduce tariffs with local Aurelian and Marenesian nations in the lithium, electronics, machinery, and pharmaceutical industries in order to decrease the cost of, and in turn increase the consumption of, Zaxari goods while also allowing for Zaxari corporations to have access to cheaper machinery and electronics which will benefit the exporting nations while also improving the economic output of Zaxar. The government also expressed interest in reducing tariffs on a global scale in line with the goal of maintaining the Zaxari monopoly on lithium while preparing the sector for inevitable future competitors.

The government has also expressed its intentions to rapidly modernize all sectors of the economy. It plans to do this mainly through the tariff reduction mentioned above though there are also plans to offer lucrative contracts to Rhodellian (@Rhodellia) and Tagmentine (@Tagmatium Rules) heavy machinery manufacturers to open up factories on Zaxari soil. This would work to reduce the costs of this equipment for all Zaxari corporations.

The third measure the government plans to take is to extend visas to thousands of Velaherian (@DPR Velaheria) guest workers to live and work in Zaxar for up to five years at a time. This measure is aimed at increasing the blue collar worker pool which has fallen behind the rapid pace of the economy as a whole. The government also hopes to offer citizenship to Veleharians who have lived and worked in Zaxar for at least three years though this will require extensive work with the Velaherian government and may not be possible due to the Velaherian regime's ban on emigration. Further economic growth combined with open borders is hoped to attract other immigrants to Zaxar as well.

To address the issue of unions within the country, the Emperor has made it clear that he is willing to do whatever it takes to prevent economic stagnation and has recently pushed through and signed several union busting bills provided by the Green Dawn Party of the Senate. It would not be unheard of for the Ranger Corps to be sent into harder hit regions to enforce this legislation. While some foreign governments may not like this, it is imperative that investors are not scared away from Zaxar in this critical period.

The government of Zaxar has recently started a national investment program and plans to develop a governmental investment corporation. The basic premise of this organization would be to sell stock in the investment firm which would be run by the national Department of Commerce which would then use this stock money to offer low interest loans to new Zaxari companies and to buy shares of major Zaxari companies, providing them with investment capital. This will also offer individual Zaxars access to a low risk investment option for retirement funds with decent rates of return.

The government's biggest project is set to be in expanding and modernizing the national infrastructure of the Empire. The Department of Commerce and the Department of the Treasury plan to throw billions of marks (ω) into the development of high speed rail lines running from the lithium mines of Niyol to the deep water ports of Bostar and Pawtucket where the port infrastructure is also planned for getting serious upgrades from the program. The Emperor has simultaniously announced his intentions to revamp the national highway project which would see a national interstate connect the eleven largest cities to one another and to the national grid of Kirvina (@Kirvina) and Anatea (@Anatea). Air infrastructure is also scheduled for upgrades including but not limited to the Imperial Airport of Sandrica (IAS), Imperial Airport of Niyol (IAN), and the International Areoport of Malinsk (IAM).

Coupled with these investment programs and lowering the national interest rates to hover around 1%, the government plans to expand on its pro-natalist policies through large tax deductions for families with at least three children and lowering the age of the national school systems to include all children from age 3 to age 18.

To sustain this massive increase in government 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. The government also plans to request development loans from the Aurelian League which can provide low interest loans to Zaxar and which has expressed interest in doing so. Further, the government plans to issue a new class of government bond with a 15 year maturity date and a 2% interest rate. Planned tax reforms will introduce a stagnation tax which will add a progressive tax to any businesses or individuals who own land which is not directly used for housing, business practices, or short term investment projects. These entities will be exempt however, if they apply for a national reserve permit which will entail annual surveying and possible monitoring, should the land contain rare or bio-significant habitats, by the Ranger Corps and allow for "the continued natural diversity" of Zaxar to thrive.

 


 

Annual Goals & Quarterly Challenges [completion upon later drafts]

 

2022

Population Growth %: xx%

Nominal GDP Growth %: xx%

Nominal GDP Growth: $xxx

 

Year Overview: xxxxxx

 

Quarterly Challenge 1 (April-July): xxxxxx

 

Success Trigger: xxxxxx

 

Quarterly Challenge 2

Quarterly Challenge 3


2023

Population Growth %: xx%

Nominal GDP Growth %: xx%

Nominal GDP Growth: $xxx

 

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

Edited by Zaxar (see edit history)
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