"A Sustainable Economy"

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First written in 781 WG by the late, great, Opyeme Time, "A Sustainable Economy" is the pivotal text in Pallisican history. Three-quarters of a century after its initial publication, this essay continues to provide an overview of the economic system which serves as the basis for the success of the Realm of Passio-Corum .

A Sustainable Economy

Opyeme Time 781 WG 4th Edition (829 WG)

Introduction

Having approved the SECOND ECONOMIC MEMORANDUM, our nation has once again renewed its commitment to attempting to develop a viable economic model. Despite a general atmosphere of despair regarding micronational economics within the MCS, our nation has again expressed a desire to work within itself, and with other nations, on efforts to create a sustainable system of trade, not only for ourselves, but for all current and future members of the greater community. For this reason, our nation stands apart from so many others in the modern era, who have abandoned their hopes of ever developing a meaningful way of engaging in commerce. That said, if we are to capitalize on the momentum which we have created through our recent economic legislation, it is imperative that citizens of our nation are familiar with the principles and mechanisms of our new, Small Commonwealth Exchange (SCX) based economy. Before beginning on this task however, it is important to shed some light on economics and their role in Hamland’s history. For simplicity, this essay will focus on the modern era, which began in Simia of 729 WG.

History

The modern history of Hamland’s economy can be divided into two distinct periods: the period of the Passasian Economic Model, which lasted until late Sai of 751 WG, and the Reform Period, which is currently ongoing as of Simia, 781 WG. The first of these, the period of the Passasian Economic Model, represents the first attempt by the Hammish government to adopt a SCX based economy. The Passasian Economic Model, for which this period is known, encouraged national and regional governments, rather than individual citizens, to use the Small Commonwealth Exchange to invest in a handful of resource based companies. Despite promising initial gains which managed to garner the attention of the international community (prompting the awarding of a FNORD award to the Commonwealth at the end of 752 WG), this period ended abruptly due to a number of factors, chief among them the lack of a consistent, formal, comprehensive structure. Without a formal structure, most of the nation’s citizens never really gained an understanding of the economy, and so there was little interest in becoming involved. This period in the modern history of Hamland’s economy came to an end when it was reported in Passasian newspapers that the former Hammish Prime Minister, Duke Sinclair, had been implicated in crimes which resulted in widespread inflation in the nation’s economy. Following the collapse of the Passasian Economic Model, the Hammish government set about passing a number of laws aimed at standardizing the nation’s economy, protecting intellectual property rights of producers, and promoting new investment opportunities for private citizens. Such laws include the HAMMISH LIBERALIZATION ACT, the COPYRIGHT ACT, and the LAND DEVELOPMENT ACT. The first of these acts attempted to define various elements of the Hammish economy, such as taxes, fines, the national marketplace, and the ability of the nation’s regions to govern their own local economies.

Though the Liberalization Act had little impact on how commerce operated in Hamland, it helped to set the tone for the parliamentary discussions which would take place over the following days, weeks, and months. Similarly, the Copyright Act, which was passed in 763 WG, did nothing to impact the actual flow of goods in Hamland, though it did ensure that producers of goods and services could opt out of copyright protections, which were automatically provided to all of the nation’s producers. Of the three aforementioned acts, only the Land Development Act attempted to alter the nation’s economic system. This legislation allowed Hammish citizens, for the first time ever, to purchase and own their own land. Several new companies appeared in Hamland following the passage of the Land Development Act, including UTS Property Management. Despite the appearances of new businesses, interest in the national economy remained low, rendering most of this period’s reforms ineffective. Of the reforms which were passed during this period of Hamland’s history, only one retained a lasting impact; the CURRENCY REVALUATION ACT.

Passed in late Troemia of 764 WG, after weeks of very heated debate, the Currency Revaluation Act pegged the value of the Hammish currency, the obol, to that of the unit of exchange of the Small Commonwealth Exchange, the credit. By altering the value of the nation’s currency, this highly controversial legislation aimed to expand the money supply without causing inflation, create demand for a new national loan market, and create a government bond program. Although it failed to gain the desired consensus in Parliament, the Currency Revaluation Act was approved after a clause was added to it which would allow the legislation to be revisited after a given period of time. Four years after the passage of this legislation, the Social Liberal Party (who had heavily opposed the idea of currency revaluation) proposed its radical MEMORANDUM OF UNDERSTANDING ON ECONOMIC DEVELOPMENT. This economic memorandum attempted to undo the effects cased by the Currency Revaluation Act by reverting the obol back to its original value, while institutionalizing the long-standing distinction between the nation’s “real” and “simulated” economies, and imposing strict requirements on parliamentary procedure regarding the passage of transitory laws such as the one which the memorandum’s authors most heavily opposed, the Currency Revaluation Act. Despite what appeared to be early support for the memorandum, the proposal failed to ever even reach a vote. In response to the Social Liberal’s proposal, the Pallisican Imperial Party issued an economic memorandum of its own, entitled the SECOND MEMORANDUM OF UNDERSTANDING ON ECONOMIC DEVELOPMENT.

While it is true that the Second Memorandum of Understanding on Economic development, or the Second Economic Memorandum for short, borrowed heavily from its predecessor, especially in regards to Parliament’s role in determining economic policy and in regards to the nation’s overall role in the greater international community, the two pieces of legislation differed greatly over such things as the value of the nation’s currency, as well as restrictions regarding the passage of transitory laws, and finally the two documents disagreed over the distinction between the “real” and simulated economies. Whereas the proposal put forth by the Social Liberal Party aimed to revert the currency to its original value, the Second Economic Memorandum aimed to permanently peg the value of the currency to that of the credit. While the Social Liberal’s proposal attempted to impose heavy restrictions on the passage of transitory laws, the Second Economic Memorandum outright prohibited the passage of such laws. Finally, while the Social Liberal’s proposal aimed to institutionalize the distinction between the “real” and “simulated” economies, the Second Economic Memorandum abolished that distinction by declaring there to be only one economy. After some debate, the Second Economic Memorandum was approved by Parliament in Simia of 780 WG. Following the passage of the memorandum, Parliament also approved two additional laws: the RE-NATIONALIZATION ACT, which permitted the Hammish government to nationalize a handful of companies, and the STOCK MARKET RESET ACT, which authorized a reset of the Hammish Stock Market, the HAM50. Both of these pieces of legislation were passed with unanimous support in Parliament.

Structure and Commerce

Having reviewed the evolution of Hamland’s economy through to the current day, this essay now turns to its original aim of shedding light on the workings and mechanisms of the nation’s new economy. To begin, it is important to broadly define some of the economy’s characteristics. First, and most importantly, the nation’s economy is based on the Small Commonwealth Exchange. This means that the value of the official unit of exchange within Hamland, the obol, is equal to the value of the unit of exchange in the Small Commonwealth Exchange, the credit. The value of the obol therefore fluctuates in value as investments in the Hammish economy expand and shrink. Prices of goods in Hamland also fluctuate according to the value of the producer’s stock on the HAM50, for the reason that the price of any given product is pegged to the value of the producer’s stock. This leads to the second characteristic of the modern Hammish economy, which is that the consumer goods market and the stock market operate as a single entity; citizens acquire goods in Hamland by using obols to invest in the stock of their preferred producer. Prices of goods, therefore, are not listed in values of obols, but rather in numbers of shares.

Regarding the first of these two characteristics, there are three main advantages to maintaining a SCX based economy. The first advantage is that by pegging the value of the obol to that of the credit, the nation’s currency enjoys a real value, unlike currencies which are backed by SCUE currency, or otherwise. SCUE currency, in contrast to the credit, which is backed by the various markets featured on the exchange, is backed solely by the faith and goodwill of the constituents of the Small Commonwealth Bank. Secondly, due to the relatively low value of the credit, the nation is able to enjoy high liquidity due to a very large money supply, which can be easily expanded and reduced without greatly affecting the currency’s value. This high liquidity translates into a potential loan market, which would not be possible if the value of the obol was pegged to that of SCUE currency, due to the inability of banks to justify meaningful interest rates. Thirdly, by having a currency which is backed by the credit, the nation’s government gains the capability to regulate the nation’s money supply with the aid of a bond program, which is funded by the nation’s reserve of SCUE currency. By allowing citizens the opportunity to exchange obols, which are backed by credits, for bonds, which are backed by SCUE currency, at rates which are less than those offered by the Small Commonwealth Exchange, the Hammish government remains able to regulate the money supply in a way which largely negates the need for taxes. For all of these reasons, a SCX based economy which features a currency which is equal in value to that of the credit, is preferable to an economy which is based solely on the limited Small Commonwealth Bank.

The Hammish economy can be divided into four distinct levels. Though not all of these levels are found in all of Hamland’s economic regions, they are found in the majority of the nation’s more economically developed regions, such as the Second Republic of Passas. These four levels are , in order of overall spending capababilities: The Royal National Bank (RNB), Regional Banks, Regional Investors and companies, and Communities. After being produced by the Royal National Bank, currency is allocated to the Hammish Government and Regional Banks at the discretion of the Ministry of Coin. In turn, the Hammish Government begins investing in the nation’s economy, while a portion of the currency received by the Regional Banks is then allocated to Regional Investors. With the currency they receive, Regional Investors invest in the nation’s companies, on behalf of their communities, which are constituted by Individual Investors and Non-Investors. Individual investors are typically private citizens, or companies, who invest either on behalf of themselves, or on behalf of private communities. Non-investors, in contrast, are private citizens who do not invest in the nation’s economy, who receive guaranteed goods stipends from their respective Regional Investors. Levels of stipends vary according to the size of Regional Investor’s investments in the nation’s companies.

Traditionally, there have been two types of companies featured on the Hammish market throughout the modern era: simulated companies, which produce intangible goods such as oil and salt, and real companies, which produce tangible goods such as real estate and maps. The first of these two types is by far the more prevalent in the modern era. This is due primarily to the large number of companies which came into existence during the period of the Passasian Economic Model, which promoted the exchange of simulated goods between companies and city governments. Central Grain and Haps Gasoline are examples of simulated companies; both produce goods which are intangible. The second type of company, real companies, are far less common in modern times, though they have become more prevalent since the fall of the Passasian Economic Model. Such companies include Free Society Printing Press, which produces books and manuals, Corum Expeditions, which provides intelligence gathering services, and Fanny Confectionaries, which at one point produced high quality images of various types of candies and other assorted treats. Real companies such as Fanny Confectionaries have traditionally listed their prices in values of SCUE currency, while the majority of simulated companies have traditionally listed their prices in terms of numbers of shares. Following the passage of the Second Economic Memorandum, all companies are required to list their prices in terms of numbers of shares. That is to say that Company A might offer 5 Kg of its product, X, at the price of 1 company share, which sell for 1.25 obols each. In order to obtain 25 Kg of X, the consumer, Consumer B, would invest in 5 of the company’s shares, at a total cost of around 6.25 obols. Having now invested 6.25 obols in Company A, Consumer B becomes the proud owner of 25 Kg of product X. Meanwhile Company B also enjoys an increase in the value of its stock.

In the above example, Company A is a simulated company. This is clear because it is offering a a quantity of a product which would not be offered by a real company, which would offer an individual tangible good with a price which varies according to quality, as opposed to quantity. A company which produces oil, for instance, would offer different quantities of oil at different price levels, whereas a company which produces maps would offer different qualities of maps at different price levels. In addition, the consumer who invests in a simulated company would receive a continuous supply of the quantity of the product they obtained upon investing, whereas the consumer who invests in a real company would receive no such continuous supply. In other words, upon investing 6.25 obols in Company A, Consumer B would receive a continuous supply of 25 Kg of X, until they decided to sell their shares, while Consumer C, who invests the same amount in the real company, Company D, would receive one product, Y, only once, upon investing. That said, real companies may, if they so desire, choose to provide continuous supplies of their product to their investors, while simulated companies may not choose to not provide a continuous supply.

It is important to note that the system of commerce described above effectively addresses the issue of the lack of scarcity in regards to simulated goods such as oil. If Company A, a company which offers 25,000 shares on the Hammish Stock Market, offers 5 Kg of Product X at the price of 1 share, then it can be said that Company A has a production capacity of 125,000 Kg. By gaining the permission of the Market Administrator to expand the number of shares it offers on the market, or by offering more of its product per share, Company A could increase its production capacity. That said, the production capacity of any given company is limited by the number of shares which it originally places on the market. In this case, production capacity is equivalent to the scarcity of any given resource. This element of scarcity, if expanded upon and developed further, has the potential to drive international commerce.

Wages and Taxation, and Bonds

When considering the system of commerce described in the paragraphs above, a question naturally arises as to the nature of wages in the Hammish economy. In a system in which consumers obtain goods by investing in the stocks of their preferred producer, rather than by directly exchanging currency for goods, how are participants in the nation’s economy reimbursed for their activity? Although different countries may handle this question in their own ways, Hamland chooses to provide subsidies to all investors, or consumers, in values equivalent to a portion of the total value of their investments. That is to say that on a regular basis, investors are required to submit an Investment Summary, which reports the total value of their investments. In turn, the government provides each investor an allocation of obols equal to a portion of the total value they reported. In addition to the regular government subsidies received by all active investors who submit their required reports, additional subsidies are available to investors who do certain jobs. Employment subsidies, as they are known, provide a lucrative incentive for investors who wish to increase their own personal liquidity.

Taxation in Hamland is handled similarly to wages. In much the same way as the nation’s government uses Investment Summaries to determine the value of its subsidies for investors, it also uses them to determine the amount of taxes owed by investors. The Hammish government reserves the right to impose a progressive tax on all investor’s whose stocks are worth more than a certain predetermined value. Should the government decide to impose taxes, all investors whose stocks exceed the certain predetermined value will receive a notice from the government stating that they are required to pay a specific amount in taxes. In order to pay the tax, those investors must sell a portion of their stock in order to obtain obols, which they must transfer to the government within a certain window of time. Investors may be granted temporary tax exemptions for acts of particular note. Such exemptions may be granted at the discretion of the government. regarding punitive taxes, investors who fail to submit their Investment Reports, or who submit false information, may be subject to penalties ranging from a reduction of subsidies to banishment from the national market. That said, punitive taxes, and taxes in general, are rarely levied against investors. Rather than taxation, the government prefers to regulate the money supply with the use of an efficient bond system.

Bonds are units of currency which are equal in value to that of SCUE currency, which are offered by the Hammish government to the nation’s investors, as a means of simplifying the process of purchasing goods in foreign markets in which the local currency is pegged to the value of SCUE currency. The value of the bond in relation to the obol is proportional to the current value of SCUE currency in relation to the credit. The Hammish government reserves the right to alter the price of bonds, though not to the extent that it undermines the exchange rate offered by the Small Commonwealth Exchange. Only Hammish investors may purchase bonds from the Hammish government, which may also purchase foreign goods with the use of bonds, and bonds may not be used to purchase goods in Hamland. These measures have all been implemented by the Hammish government in an attempt to secure the nation’s economy, while continuing to promote trade with the other nations of the Standardized Currency and Unified Economy.

Conclusion

In stark contrast to many of the other nations of Micras, who’s most prudent and experienced members have taken to despair over the prolonged failure of the world’s great minds in their attempts to develop a viable economic system, Hamland stands as a beacon of hope in the potential of the community’s members to overcome great challenges so as to improve the world for future generations. It is the hope of the author of this essay that Hamland’s past, present, and future works in this field may serve as a guide for those who aim to develop superior systems in years to come. Much thought and effort has gone into the creation of this essay, and if it is successful, it will help to prompt an economic revitalization not only in Hamland, but in the many nations who make their home with the Micronational Cartography Society.

Afterword

Military Development

In much the same way as commerce has long been neglected by the greater international community, many nations have long abandoned their efforts to develop a viable system of conducting warfare, and other operations involving the military. Discouraged by past failures in this field, including major and minor wars which have dissolved into chaos and petty squabbling, many members of the international community have largely chosen to ignore their underdeveloped militaries, rather than attempt to work together on projects aimed at making warfare more objective, and more structured. While it is true that even Hamland is guilty of neglecting its military, the national government has begun to take steps to develop a system which places a predictable, tangible cost on the creation and maintenance of military forces, as well as on the actual exercise of war. This system, which is based on that originally developed by the Passasian War League, attempts to provide a basis for the rules outlined by the Anunia Convention by assigning real costs to Forces and Actions, such as preparation, and battles themselves

The Passasian War League was formally established 729 WG. Based in Zimia, the War League employs and as a Regional Investor provides, stipends for its staff and soldiers, maintains its arms, and purchases new weaponry, using money traditionally provided to it by Passas’ other Regional Investors. Investors, in turn, enjoy the ability to determine the composition of the War League’s individual regiments, while also receiving the security services provided by the League, which until recently, also functioned as Passas’ national police force. Regarding the first point, investors retain the ability to determine regiment composition by purchasing shares of the Passasian War League, which is part of the Zimian Stock Fund. By purchasing shares investors acquire points, which correspond to the points described in the ANUNIA Convention Charter, which can be used to acquire products ranging from soldiers, to various types of military technologies including ships and aircraft. Regarding the second point, investors may gain the authority to personally command the regiments which they fund, though the President of the Passasian Regional Government reserves the right to assume control of all of the War League’s forces at any time, should the need arise. Foreign shareholders are naturally excluded from the privileges entitled to domestic shareholders, though they may still invest in the War League, should they decide to. In the event that the foreign investors hold the majority of shares, the President of the Passasian Regional Government assumes the role of supreme commander of the War League, though the office reserves the right to delegate command.

In 787 WG the Hammish Government authorized plans to restructure the Hammish military in such a way that it would more closely resemble the model associated with the Passasian War League. Authorization for this restructuring came in the form of the AUTHORIZATION OF NAVAL CONTRACT AND SHIPYARD ACT, or the Shipyard Act for short, which allocated funds to the Hammish military, so that it could in turn invest in a number of ventures which would result in the creation of a multitude of advanced new warships, as well as the construction of a new shipyard in the city of Port Tablot. According to the Shipyard Act, the Hammish Military would acquire ships by investing in the two new companies which were created as a result of this legislation: the Shirley Stock Fund, which oversees the construction of sea-vessels in the New Zimian city of Shirley, and the Tablot Construction Company, which was created to perform the job of constructing and maintaining a shipyard in the city of Port Tablot In the decade following their establishment, these two companies produced a number of unique sea-going vessels, with the former company placing a greater emphasis of the construction of a larger number of smaller, faster ships, such as the Zimia Class Submersible Destroyer, while the latter focused on building fewer, much larger ships, such as the Seneschal Class Emergency Response Vessel. Today, the ships produced by these two companies play an important role in ridding the Captive Sea, Orange Sea, and Sea of Storms, of the pirates who have plagued shipping lanes for decades.

Despite the military innovations which stemmed from the passage of the Shipyard Act , there are some within the national government who object to the idea that the Hammish Economic Model affords a sustainable and straightforward method developing the nation’s military. This is due, in part to the confusion which arose within the Hammish government soon after the passage of the aforementioned legislation when it was revealed that the authors of the legislation failed to correctly calculate the overall monetary costs of their proposal. Though the exact details of this miscalculation are not known, it is clear that the nation’s leaders failed to accurately predict the number of ships which they could afford to acquire, while still aligning to the terms outlined in the ANUNIA Convention, upon which all modern warfare is still based. Whereas the government approved the Shipyard Act on the basis that the nation’s military would be receiving 72 ships from its deal with the Shirley Stock Fund, it was later determined that the military could only receive roughly one-third that number of ships, a mistake which served to embarrass the nation’s Ministry of Sword, which had helped to draft the proposal in question.

Critics of the Shipyard Act argue that the very faulty legislation should have never been passed, at least not in the condition in which it was presented and approved. Though the mistake was corrected, the government’s miscalculation of the number of ships it would acquire as part of the Shipyard Act required the government to reflect upon the true merits of the nation’s ability to develop its military by methods based on the Hammish Economic Model. Supporters, however, continue to argue that military development, like any other industry, requires the tangible costs in order to be successful. The Hammish Economic Model, according to supporters of the Shipyard Act and other similar pieces of legislation, offers tangible costs more effectively than any other economic model currently in existence. For now, the Hammish Economic Model remains the basis for the development of the Hammish military, despite the concerns of some within the government.

Ultimately, it must be acknowledged that military development is not so critical a function of Micrasian governments so long as the risk of war is minimal. Whereas there exist few nations who possess any natural enemies, and whereas the world’s land and resources remain at the disposal of all nations, the risk of war is minimal, except in the case of those who base their existence on war, and so the true need for most nations to develop a military is also minimal. That said, it is the philosophy of the government of Hamland that the nation should, because it has a well-developed economic system worthy of defending, develop viable, realistic methods for developing and improving a powerful military. So long as Hamland continues to trade goods with other nations around the world, it will seek ways to retain and expand its ability to defend its shipping lanes, as well as the nation’s borders, should they ever be threatened by a foreign adversary. When it comes to waging war, the Hammish Ministry of Sword employs its own structural methodology, which shall be described in the next section.

Warfare


Like its method for applying tangible costs to military development, the Hammish system of warfare seeks to apply similar costs to the use of the military in war. In order to place a greater strategic and tactical significance on war, Hamland has developed a method for waging war, which is itself also based upon the Hammish Economic Model. This method, while never having been actually tested, is believed to provide a sound structural basis for other nations who seek to wage meaningful wars, whether they be to resolve disputes, or to expand borders. By employing a system in which militaries are developed in a manner like the one described above, and wars are waged in the manner to be described below, the wagers of war can be ensured that their conflict will not fall prey to the petty quarrels which have consumed conflicts of ages past.

For the purpose of describing the Hammish method of war in the simplest and clearest terms, this essay will focus on a hypothetical conflict between two imaginary countries: Country X and Country Y, who having had finally reached the climax of a prolonged disagreement over the placement of their border, Country X and Country Y have declared war against one another, as per the terms outlined by the ANUNIA Convention, but with one distinct difference, in that the two countries have, out of a desire to wage their war according the Hammish methodology, also issued an application for their conflict to appear on the HAM50. This application submitted by the nations reflects the nature of the conflict, as well as information about the size of the forces intended to be used in the conflict by each side. For instance, Country X features two participants, worth 25,000 points, or shares each, while Country Y features 3 participants, also worth 25,000 points each. Assuming that all five participants intend to use all 25,000 of their points, the total number of shares which will be floated by the conflict on the HAM50, will equal 125,000. Once the conflict is listed, all five participants are required to purchase 1/5 of the shares offered. Using these 25,000 shares, each participant then drafts the OrBat which they will use in the conflict itself.

When all OrBats for both countries are delivered to a neutral judge, work begins on the conflict map. This map will encompass the entire area in which the conflict in question will occur. Within the area shown on the map, each participant will control 5 supply centers, which will appear within a grid covering the entirety of the map. When the conflict begins, these centers will serve as the focal point of the conflict; participants for both countries will compete against one another for control of supply centers. As the conflict between Countries X and Y expands and evolves, the conflict map will be updated by the neutral judge at an interval of twice a week. Updates to the map shall reflect unit movements, battles, and changes in territories controlled by Countries X and Y. No one except for the neutral judge, who was appointed at the beginning of the conflict as part of the declaration of war, shall be allowed to publish official updates to the conflict map.

Once the conflict is underway, participants will compete for control of the most amount of supply centers, for their own benefit, or for the benefit of the country for which they originally claimed to be fighting. Participants move their forces by submitting orders to the neutral judge, who updates the map once per “phase,” so as to reflect the orders submitted by the participants. Forces are moved within a grid, so that units may only move a number of squares as determined by the neutral judge at the beginning of the conflict. When two forces attempt to occupy the same square, a battle will occur, the outcome of which shall be determined by comparing the strength of each force, which is proportional to the total cost of the units which constitute the forces. If for instance, Force A, which cost its participant 12,000 points, and therefore features a strength of 12,000, and force B, which cost its participant 13,500 points, and which has a strength of 13,500, attempt to move into the same square, Force B will move into the square, while Force A will be bounced, and will suffer a loss of points equivalent to the difference in the strength of the two opposing forces. In this case, Force A would lose 1,500 points, meaning that the participant controlling this force would be required to sell 1500 of their shares in the conflict. If however, Force A is supported into the square by Force C, which has a strength of 5,000, then Force A takes the square, while Force B is bounced. In this case, the participant in control of Force B would be required to sell 3,500 of their shares. If, in this example, Force B loses a Supply center, then the participant controlling Force B must also sell 5,000 shares while the participant controlling Force A may purchase 5,000 shares, for the reason that each supply center is worth 5,000 shares. If, by virtue of having lost this Supply Center, the participant controlling Force B is forced to sell the last of their shares in the conflict, then they are defeated, and they may play no further part in it. If the participants fighting on behalf of either country control most, or all of the available supply centers, the war may be brought to a close in favor of that country.

Before concluding, it is important to consider that this method for waging war does not attempt to undo, or overthrow the institutions set in place by the ANUNIA Convention, but rather it seeks to improve those institutions by providing a more objective and competitive playing field, which places a greater emphasis on tactical and strategic planning. The elements of story-telling and character development preserved by the ANUNIA Convention should also be preserved in this method of war, so that each war serves as a valuable component in the history of the nations who participate. Warfare, or recwar as it is known within the MCS, is, and has always been a meaningful element of geopolitics, and this essay strives to do nothing but to make warfare more accessible, and user-friendly, to those who would strive to do it.

Epilogue

In the fifty years since its writing , ‘A Sustainable Economy’ has played a pivotal role in economic development in regions around the world, in partiuclar in the lands claimed by the Commonwealth of Hamland and the Realm of Passio-Corum. Indeed, the economic model described in length and detail by the late, great, Opyeme Time, in his acclaimed essay, has played a central role in the overall evolution of the Kingdom of New Zimia. From the outset, New Zimia has attempted to live up to the ideas and ideals expressed in ‘A Sustainable Economy,’ and as a result, the nation has grown into a diverse and wealthy society which rivals the most storied of the world’s nations. Today, as a result of the influence of Mr.Time’s essay, the Kingdom of New Zimia, and the Realm of Passio-Corum, retains fruitful and meaningful economic and political interests on every one of the world’s continents.

Despite its overwhelmingly positive impact on the Realm of Passio-Corum, and in the Commonwealth of Hamland – where the essay was originally written and published – the economic ideas expressed in ‘A Sustainable Economy’ have fallen out of favor with the greater international community, and with the government of Hamland. In regards to the international community, a lack of interest in meaningful economic development has prevented the model from gaining a foothold. In regards to Hamland, a lack of widespread involvement resulting from misunderstanding has led to an ongoing movement for the nation to adopt a new, alternative currency and system of trade. In regards to Hamland specifically, and the greater international community, a series of political missteps by the adherents of the ideas and ideals expressed within the essay have resulted in a comprehensive rejection of the economic model from which the model is unlikely to recover. In terms of its role within the international community, and within Hamland, the model has effectively reached its death. That said, the economic model described in ‘A Sustainable Economy’ will continue to benefit and encourage economic growth within the Realm of Passio-Corum, as it always has, until a superior model is developed. For this reason, it is important to continue to strive to promote understanding regarding the economic model, and to address critiscms expressed by those who oppose the model. Therefore, this epilogue will address the basis upon which current legislation in Hamland is based, which if passed, will allow Hamland to abandon the model detailed in ‘A Sustainable Economy.’

In 828 WG, a proposal was issued by Lord Lewis before Hamland’s Houses of Parliament, on the basis of three misconceptions regarding the Hammish economy as it currently exists. The first of these misconceptions is that the country lacks a ‘real coinage,’ and that it lacks the mechanisms to regulate its money supply The second is that nation uses the bank of the Standardized Currency and Unified Economy in two separate ways, and that this is a detriment to trade overall. The third misconception is that Hamland, as a result of its application of the ideas expressed in ‘A Sustainable Economy,’ is more limited in its ability to trade than other nations, who’s economies do not implement similar ideas.

Regarding the first misconception, which relates to the ability of the nation to regulate its money supply, it is important to note that the Hammish Ministry of Coin, and the First National Bank of Passio-Corum, regulate their money supply by exchanging ‘obols’ or ‘polis’ (credits) for ‘bonds’ (SCUE Currency). In order to increase the money supply, or to increase the number of obols in circulation, the Hammish Ministry of Coin simply exchanges bonds for obols, at the current rate offered by the SCX. To reduce the money supply the ministry simply exchanges obols for bonds, again at the rate offered by the SCX, or at a rate set by its own bank. The rate at which the nation can reduce its money supply is dependent upon the amount of money in circulation, while the rate at which the nation can increase its money supply is dependent upon the frequency with which it uses the bank. Therefore, the ability of the government to regulate the money supply is not hindered by the application of the ideas expressed in ‘A Sustainable Economy.’ Rather, they are expanded and improved; the government enjoys a greater ability to regulate its money supply than nations who do not apply the same theories.

Regarding the second misconception, which is ‘that the Obol serves two roles,’ it is important to note the distinction between the obol and the bond, which were described earlier. The distinction between these two units of exchange is simple. Obols, which are worth less than bonds, and who’s value is derived from the amount of money invested in the SCX, are used for exchange within the Hammish market; they are used used by Hammish investors for the purpose of investing in real and simulated companies on the HAM50. Bonds, in contrast, which lack their own intrinsic value, are used to trade with nations who use the bank of the Standardized Currency and Unified Economy, but who do not peg the value of their currency to the SCX credit. In other words, bonds are used in lieu of obols, to facilitate trade with other nations at an exchange rate of 1:1. That said, this difference between obols and bonds does not imply the existence of two contradicting or opposing purposes; both currencies are used first and foremost for trade. The difference between the currency lies in the context in which the currency is being used.

Regarding the third misconception, which is that Hamland’s involvement in the international market is hindered by its application of the ideas outlined in ‘A Sustainable Economy,’ it is important to make note of two important points. The first of these points is the most sraightforward, and it is one which was addressed in the previous paragraph. That is that by trading in two separate currencies, bonds and obols, the government is able to trade with other nations at a rate of 1:1 while maintaining very high liquidity in its own economy. By pegging the obol to the credit, rather than SCUE currency, the nation enjoys access to a much larger supply of currency, which can be used for a wider range of purposes regarding the domestic market, while not losing out on the ability to conduct straightforward trade with nation’s who’s primary currency is not equal in value to the credit, so long as it also continues to use the bond for foreign trade. As a result, the nation enjoys an increased ability to trade domestically, and abroad.

Considering now that the government enjoys higher liquidity than others who’s currencies are not pegged to the credit, and that the the government enjoys an enhanced ability to regulate its money supply, it is also important to note – as a second refutation to the assertion that the ideas expressed in ‘A Sustainable Economy’ hinder the nation’s involvment in foreign trade – that the nation is capable of issuing loans with reasonable and meaningful, fluctuating interest rates. Insofar as the nation’s currency is pegged to the credit, who’s value fluctates with regard to the amount of money invested in the SCX, the nation’s central bank gains the ability to issue interest rates on loans which can not be matched nor justified by nations who maintain currencies with static values. Such meaningful and justifiable interests rates have the potential, when implemented by active members of the community, to promote economic collaboration on an unprecedented scale, by virtue of encouraging joint investment between investors. Examples of this include the company which now provides the majority of electricity to the Commonwealth of Hamland, Tulsan Electric.

In closing, the Houses of Parliament of Hamland are urged to reject the current economic proposal issued by Lord Lewis, and to vote instead on a proposal which is based on a more accurate understanding of the model which the current proposal is intended to reject. This epilogue is not intended to discourage the government of Hamland in its efforts to change its economy, but to encourage it to address the matter of change in a manner which truly and accurately reflects the nature of the model which was designed and realized by Opyeme Time. Though the model may no longer be applied in Hamland, its legacy can only be impactful if it is finally, properly understood. Perhaps then, may Hamland’s economy begin to serve as a true and proper example to the nations of the world.

-Queen Evahn I Realm of Passio-Corum