Kalistani Major History

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Empire at Crossroads
Tensions on Mainland and Encroachment from abroad challenge Ontiveros Administration
Kaliburg, Grand Duchy of Ananto
January 20, 5555


Ontiveros Administration adopts siege mentality in National Assembly while seeking new Opportunities

Kalistan is often known as a land of stability, to put it kindly. Others would say Kalistan changes at a geological pace. One way or another, the recent troubles have offered new challenges that would absolutely crush lesser administrations. As for the current Government under Chancellor of the Empire, Dame Lindsey Ontiveros-Maxwell, Kalistan is facing numerous issues that are testing her and her Government's resolve and credibility, and her response to the sudden and unexpected dynamism in domestic and world events could be described as "a bunker mentality." And yet, she also shows her nimbleness at policy, and demonstrates why she still is the unequivocal leader of the Institutional Party of Kalistan and the Head of His Imperial Majesty's Government, despite all the ongoing conflicts in the world.

"Kalistan is suddenly surrounded by people seeking to pick up the scraps of the unexpected dissolution of the world order created by Lourenne's withdrawal from world affairs," said Dame Ontiveros at a party planning retreat in Kaliburg last week. "Luthori is once again making noise about their commonwealth ambitions which will bring an historically expansionistic Artanian empire right into Kalistan's home. And the Baltusian proletarian revolution seems to be linked, even if informally to the terrorist organizations that are plaguing Kalistan Proper, with the aim of destabilizing this Government and this Empire. There is not one appropriate response to all these forces pushing inward. It feels like a fight on all fronts, all the time, all at once."

The mentality of being surrounded often leads to bad policy. His Imperial Majesty, the Emperor has more or less given Dame Ontiveros a free hand in addressing the domestic situation, while working very closely with Dame Jacqueline DuMont, His Imperial Majesty's Foreign Minister to attempt to create new avenues for international relations. "His Imperial Majesty has sought to create new friendships in Likatonia, Wrnuke and Beiteynu," said Dame DuMont. "while strengthening existing relationships with Lodamun and Kundrati. But the opportunism of Luthori following the Lourenne situation creates additional tension in Northern Seleya, just as we thought we were getting some breathing space. And we now also maintain a fully militarized border with Baltusia, due to their coddling of communists and support for terrorists who assassinate Kalistani Nobility. There doesn't seem to be a light at the end of this tunnel yet. And I fear it will get much darker before the dawn."

To underscore this attitude, the Foreign Minister has recalled the Ambassador to Luthori, Sir William Howard, in protest of their Commonwealth expansion plans. "Luthori has made it very clear that their motivation is to check Kalistan in Seleya," said Dame DuMont. "They have not reached out to us on any topic since we assisted them with building a monorail from their airport to their city center a decade ago. They opted not to attend the Emperor's Wedding. And now they are dispatching emissaries to Lodamun and Likatonia for the purpose of strengthening their Commonwealth in Seleya. They have let this Nation know where we stand with them." Dame DuMont did say, however, that Kalistan is looking for opportunities to work directly with other Artanian Nations, and the Emperor would like to travel in the near future to Kundrati with the Princess Consort to meet her family, and allow the Princess Consort Pavlina Ananto-Hulanevek some vacation time away from the rigors of life in present day Kalistan. "We will also pursue diplomatic openings and security cooperation with the Kundrati Government and President at that time under the Non-Aligned Movement treaty."

The one area where things seem to be progressing as normal, despite the disruption in the international pollical and security order, is in the economy. After more than a decade, Kalistan has finally returned to a tiny but not insignificant trade surplus, and prices are coming down for the first time in 12 years. "We are experiencing a period of deflation in line with about .35% a year," said His Imperial Majesty's Finance Minister, Vincent Rodrigues.

"This is in line with where Kalistan would like to be. A third of a percent will not dramatically affect anyone's pocket book or economic production, but producers will feel a squeeze for about three quarters as higher priced supplies are consumed to be replaced by lower priced ones. We have also ordered a fairly generous tax rebate program to producers to offset business losses due to deflation which we will extend for an additional year if deflation becomes more robust. During the whole period, we have seen prices increase more than 8%, while our economy has grown only 3 percent, and that deflation then is caused by consumers being accustomed to new norms in supply and adopting new purchasing habits rather than a glut in supply, which precedes deflation in market economies."

Over all, imports are down from Lourenne and other Canrillais states, but total trade volume is up to include new sources of trade and investment in Majatra, Keris and Dovani. "In the end, we are hoping for a feather fall in prices over a long term," said the Finance Minister. "This will make Kalistani goods more attractive on the international market including emerging and re-energized Majatran markets. For example, we have preliminary word of a new contract with the Potensi shipping company Derovyan for container ships built by the Sulari based SSC. This deal could be worth a quarter of a billion rubles when it is completed. New friends bring in new opportunities but it is safe to say that Kalistan can outcompete most, if not all international producers in our nationalized sectors. We are also well into a very encouraging investment in Wrnukean microchips that benefit Kalistani Consumers by maintaining KMD's profitabilities while allowing the company to lower prices for consumer electronics. And That doesn't even touch the investment we are making in the equipment necessary to produce those same microchips."

In the Security realm, His Imperial Majesty's Defense Minister, Colonel Martin Jackson, advised the Party leadership on efforts to increase security and intelligence in Northern Seleya with Lodamun. "The Lodamese aim to take up much of the security role carried out by Lourenne in Seleya," said Col. Jackson. "His Imperial Majesty aims to be of assistance in that goal. Naturally, our security interests do not extend south of Gaduridos or west of Likatonia, but within our sphere of interest, Kalistan looks to be a full partner with Lodamun in the security of the Anantonese Ocean, as we were with Lourenne. This includes full access to the Ananto Strait and the Meridian Straits for Lodamese Military vessels, intelligence sharing and possible reconsideration of basing questions. Of course, should Lodamun decide to lock arms with Luthori, the same terms wouldn't be open to Luthori as we would be able to offer to Lodamun. But Lodamun's interests in the region align with His Imperial Majesty's interests, and working together is almost assured for our joint benefit."

The Defense Minister also noted plans to approach both Likatonia and Kundrati on security issues. "Kalistan doesn't seek to project our power into the Mad Dog Ocean," said Col. Martin. "We have no reason to cruise there, and see our natural westward limits to be the Karzon Passage between Lodamun and Dolgava. But Likatonia and Kundrati seem to be logical places for Kalistan to seek the ability to build eyes and ears out into the direction of Artania. Our aim is to build radar installations to keep tabs on the Artanian Sea. Naturally, of course we would be willing to share our Intelligence with the host nations, but the benefit we would get from putting an OTH radar station in Likatonia and Kundrati would certainly be of great value to Kalistan, and it would serve as early warning for both Kalistan and the nations that the installation is built in." Capt Martin also discussed openness to joint training exercises with all three nations and closer security cooperation between Kalistan and other Equifund Nations.

Kalistan may be under constant threat from internal enemies, and new rivals on the international stage, but "We are creative and we adapt to new situations pretty quickly," said Dame Ontiveros. "Our reputation of the country where change goes to die is well deserved, but we also possess a dynamism and a willingness to make the best of a generally bad situation that has allowed us to weather many worse storms. Our Government is stable, it enjoys the full confidence of the Emperor and the support of the vast majority of the people in Kalistan. This is political Capital that we can turn into our advantage when the time comes. We are ready for all challenges and we hope to meet them, with a smile or knife, either way, we will do so."