<Tech>

What's a Vexillium Bank?
What will the bank do?
So, what do you want from my country?
So, how much work's involved?
What's this I hear about a trade and economic database?
Surely this is just Utanian self-interest? ;-)
How'd you come up with this crazy idea?
Okay, pal, what the heck are you on about? What is this Vexillium Bank?

The Vexillium Bank will fulfill the roles of the World Bank, the International Monetary Fund (IMF) and World Trade Organisation (WTO) of the fictional planet of "Earth".

Though highly vilified, these three organisations, nonetheless, play a vital role in the economic world, and I think it is important that Vexillium has the same "villians" available: just think of the storylines we can now develop that weren't around before!

The role of the World Bank is to make development loans to nations in need of development dollars and expertise. Nations don't just approach other nations or national banks for loans. If Burundi wanted money for a new roads, and was not able to pay for the roads through taxes for twenty years or so, then they would approach the World Bank for a development loan. The World Bank was the organisation that helped to rebuild war-torn Europe, and continues to fund trillions of dollars worth of development projects around the world.

The IMF, the most vilified of all, especially in Asia, is the organisation that makes loans to nations for 3-5 years to tide them over, while they endure difficulties. It is the IMF that has billions of USD in Asia, helping these countries stay afloat after the asian crisis. BUT, they are also there to provide loans to any country in the world, primarily for currency stabilisation, to prevent a currency sliding through the floor.

And the WTO is there to promote world trade.

Okay, sure, but what will this Vexillium Bank do?

Let's say Eichensehria, a new developing nation, needs several billion Crowns for a power station, roads and hospitals, and will be able to save together the money in about twenty years
The second role the bank (more precisely ME for the time being) will have will be to maintain an economic and trade database.
What's this about a trade and economic database?

Expansive storylines can be developed if we have an understanding of the international economics of Vexillium. We could apply economic sanctions against a country (by order of the UNV) and actually know what the impact on the victim nation is. If one or two other nations refuse to apply sanctions, we could say with some authority what impact that will have on sanctions.

It will also allow us to know the effect if one nation or another falls under revolution, warfare, etc.. Remember the Kobe earthquake in Japan? Remember how the price of microchips for the next year or two was twice or thrice the normal price? That's what we're talking about.

Let's say the Lendian Confederation is the world's ONLY producer of copper, then if it falls to revolutionaries, and exports are banned, there's a world copper shortage with enormous repercussions: no more electrical goods can be manufactured! This may then prompt the world to stiffer action against the revolutionaries, and get, maybe, a bigger story out of a small revolt.

To begin with, we'll start small, but with something that has the greatest international impact: the oil industry.

All oil producers and consumers can state their production and consumption amounts, and the producers can also state how much they want to sell their oil for. I'll compile all of these numbers, and develop the Vexillium Standard Oil Price. From there, oil shocks and price rises, embargoes and OPEC's of Vexillium can evolve and have a real impact. Whenever a change occurs, a country changes its price, or production levels, it will be a simple matter of plugging in the new numbers into the database, and out pops the effect on Vexillium!

Cool, huh?

Alright, but how much work is involved if my country becomes a member?

Not much. If you're a Board member, then check the E*group at least once every two weeks for Board decisions required. If not, all you really need to do is supply economic figures: oil consumption/production figures and national economic size for the time being. Further information on the Projects page.

Alright, but what do you want from my country?

The Bank needs members in order to function. And from ALL nations, members or not: So, sign-up now as a member: send me an
email. Then, take the pin-logo below and apply it to your site.
Member, the Vexillium Bank

Surely this is just Utanian self-interest?

Well, Utania will certainly be one of the first nations to apply for a loan, but if all Utania wanted out of this was capital funding, it would have just approached various nations for loans. This way we have something so much more... ;-D

What made you come up with this crazy idea?

Utania was about to embark on a series of funds-raising bouts, because the country is in dire need of a cash injection, when I realised that countries on earth don't borrow from eachother, they borrow from the World Bank.

Secondly, I thought investors (the loan-makers) need some assurance that they'll get their money back. It's the bank's job to act as the professional mediator in this situation, to ensure that the recipient continues to service the loan.

It occurred to me that the Burovian Commonwealth already had a good inter-nation loans scheme going, but it was exclusively for Burovian nations, and unless we ALL elect Burovian governments... [I'm sure Max'd be only too happy... ;-) ]

The most important reason was that we have no way of realisticly implementing sanctions on a recalcitrant nation, unless we have an understanding of world trade: who trades with whom, how much and what's the product. Then, when we need to apply sanctions we can authoritatively say "Recalcitrantia is suffering from a complete lack of rubber, and a baby boom begins".

Finally, after some searching around, I discovered that Scandia have a World Bank: Hey! WE'RE the first, the premier, the original! Surely this cannot be tolerated! ;-)