Kalistani Major History

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Bjorksdattir reflects on a year of Integration
General Investment flows have been a "net out for Kalistan"
Kaliburg, Ananto
October 9, 5075


Premier Bjorksdattir summarizes the first year of the AESA as a benefit for Kalistani Investors

The Premier of the Republic, Agnethe Bjorksdattir, evaluated the first year of the Anantonese Economic Standardization Accord with public and private economists and the Press yesterday at Kalibrug Polytechnic University. The briefing was called following the publication of the report from the Finance Ministry on whether or not the experiment in economic integration with Kalistan's neighbor Lourenne is yielding benefits for the Republic.

"Obviously," said Bjorksdattir in her opening statement, "we have two competing interests: we believe that open and reciprocal trade is beneficial. We want to ensure that we can import what Kalistani consumers want from whoever produces it, and satisfy the vast array of Kalistani demands. On the other hand, we fully believe that there are somethings that supercede ephemeral tastes and fads in consumer spending, and one is National Interest. We will never make decisions that are bad for this Republic or its people. So this is what we have to weigh when evaluating Integration with our neighbor: Do Kalistanis get what they want, and how much does this help our Republic?"

On both metrics, the Premier was cautiously optimistic. "We have seen imports of consumer goods from Lourenne increase fairly substantially with the implementation of integration. We are increasing the variety of food imports, which has already had a positive effect in the National Food Bank. We are seeing increases in both staples and produce especially, and there is already reports that Kalistanis are adopting the new food stuffs and integrating them into their diet. We are also seeing increases in consumer goods, especially consumer electronics, though Lourenne was already one of our primary suppliers of consumer electronics. The benefit of eliminating any import costs, and ensuring a regularized and supply, is reduction in prices in Kalistan for Lourennais goods."

Along with an increase in items in the market, Kalistan has seen an increase in tourism. "Let's face it: Lourennais currency is allows a favorable exchange rate. We have already seen a noticeable increase in foreign exchange and spending in shopping centers in Kaliburg, Dulnerstaad, and Sulari, and we see increased starts for hotel and resort licenses in Ananto and Suldanor, as more Lourennais citizens are visiting."

Over all, there is a net inflow of Lourennais money and consumer goods. However, the Premier also noted, there is a net outflow of capital from Kalistan. "Kalistan's laws do not necessarily favor off the rails investment," said the Premier. "Our zero growth policies and rock solid currency valuation ensured long ago that new development only comes with new technology, or with the failure of old firms. So there is not a lot of space for those with money to invest to do so in Kalistan. We have used zero growth to ensure that prices are kept low without strict price caps, and inflation does not effect prices.

"So, with investment opened, investors have really taken the opportunity to invest in Lourennais firms primarily, but start a few new Kalistani companies too. Overall, Kalistan has become a net exporter of investment. MoCo finally has some competition in the Anantonese Automobile Company (AAC). Several electronics companies in Lourenne have benefitted from Kalistani investment, and a new firm which is working with Lourennais environmental scientists, Daylight Photovoltaics, has opened to begin developing very inexpensive solar panels for both home installation and for solar parks in cities. The close cooperation with Lourennais environmentalists could help Kalistan move off of its dependency on petroleum."

In the end, the Premier gave her Government's evaluation of the first year of Integration. "We are on the cusp of some really amazing growth for Kalistan, and I hope our partners in Lourenne feel the same for them. Our markets offer great opportunities to grow for Lourenne's producers, and this Accord is bringing some amazing new products to Kalistani stores which enrich Kalistani diets and quality of life that might not have otherwise been available at equity. We also welcome Lourennais visitors to our shores as they visit our warmer climates and also our winter resorts. Kalistani investment and tourism has also dramatically increased in Lourenne over this year, and Kalistan will reap the benefits from this for years to come."

The first year of integration with the Kingdom of Lourenne has been, in the summary of the Premier, a success, though at this point a foundation rather than a completed construction. "We will continue to look forward for opportunities to increase Kalistan's attractiveness to Lourennais investment. Kalistan has comparative advantages in a number of things, and the Republic would be a good place for Lourenne to increase or relocate production. We will continue to work with our counterparts across the Channel as integration deepens."