General Theory of the State

Day 861, 08:38 Published in South Africa Brazil by Danie! Moreno

Since always, in eRepublik, the efforts in the economic area passed through many changes. At the same time is possible to note the predominance of a closed market in the big countries producers of raw, We see these same countries with difficulty on the production of manufactured products, acquisitions of consumer products for the population of mid-level and with the fluid exchange of the monetary market. We see a certain hegemony in many countries with these protectionist politics, but We also see the appearance of spaces (that's still a bit reduced) with discussions that escapes from these traditional methods.

Some members of our virtual society always asked themselves about the tools used by the pure economy, like the juridic theories, to get their results. But, usually, among they that are resisting to these methods, the real critic was on the sense of how these tools have been used - - than a critic about the tools itself.

In reality, It was just a few that contested the fact that the formal tools did, do and must do part of the talk of the economists, although it wouldn't be put in the first plan. It's curious the fact that part of this discussion - and it's implications - have lost itself along the time. I remember what Rockman9 said, in the earlier times of the V1, in the end of 2008:

"... I see a worldwide race after the raw materials that I ever even imagined possible in this game. At this point, I admire the admins, that passed in a superb form one of the high points of the worldwide economy in real life to the eRepublik. Although, like the real life, I believe that the power will be on the hands of who have the bread, not the grain..."

Today We see geopolitical disputes for territories. But, We see that the "work force" is basically divided between the manufactured products and the raw materials. We see big and powerful countries like United States, Romania, Indonesia and Brazil having nationally manufactured products for their population in absolute quantity just like countries with half of their population. Resuming in a didactic way: the real productive capacity is less than it would supposed to be.

In a common scenario nowadays, a country normal and healthy, in ideal conditions, can have about 1/3 of their days involved with wars/wargames and still in this way the economy will work in a balanced and predictable way. In this situation, the mid-level citizen consumes food daily, uses gifts and buys some weapons in alternated days. Still, half of the production of the country is turned to items indirectly that, although it be a substantial part of the consumed products, don't go directly to the population that effectively needs them.

Just one more time: "... the power will be on the hands of who have the bread, not the grain..." . For me it would be magnificent if this country, even more if it have a valued currency, would have a bigger vantage if it have in own the double of food, weapons, gifts in its national industry instead of dedicate its capacity of work in raw materials. Small countries that have a little or nothing of regions of high productive primary actually have an advantage, and not a disadvantage. It wouldn't be better to have deals and alliances with friendly countries, low taxes of import and buy these raw materials, that's cheap, and invest in resources of great needs to the population? eRepublik is like the real life, where It's better to export products of high technology than export raw materials.

We live in a market saturated of items of quality 1 and 2 in about 90% of the new world. It's almost impossible the healthy competition into these levels, and the situation is aggravated more by the uses of fakes. These ghosts don't consume and are causing an harmful overbalance in the production, affecting negatively the newly businessman. The worse is that in many countries with Q3 industries are going to the same way. The solution? We must work in the market little explored of high quality materials.

We have to work with these Q4 and Q5 industries. Alone, few businessmen can reach in this stage. It's necessary encourage the cooperatives, limited society and the investment in low and medium companies. And, just when it be necessary, the State must intercede for the national industry, with investiments through loans guaranteed by the eRepublik contract.

What We need to do:
1) Invest massively in manufactured products;
2) Promote economic alliances and import raw materials from countries with a low exchange;
3) Invest in high quality companies.