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Comrades,

Some time back I looked at our economy and ideas on how we can improve it. Today I present another of these ideas - the Sovereign Wealth Fund.

The main goal of the SWF will be to use our money, to make money. The Sovereign Wealth Fund will use data analysis on eRepublik's economic trends to make informed investment decisions, with the long term goal of raising additional money for eNorway.

The Investments

The following can be bought, with the sole intention of selling them again at a later date for profit.

# Weapons
# Aircraft
# Food
# Moving tickets
# Raw materials (all kinds)
# Gold

Organization

This should ideally be done through an organization account. Maximum visibility is key and transparency allows the citizens of eNorway to scrutinize the performance of our fund. The minister of finance and elected president should be the only citizens with direct access to this account.

Finance Team

The minister of finance should elect citizens to join the "board", whose job it is to discuss and debate what to invest in and when to cash in on previous investments. For example, they may collectively decide that the price of food is likely to rise in x months, and y amount should be bought from world markets. They can then debate whether this would be the right move.

Financing

Ideally a significant amount of currency should be available to maximise the opportunities. This can be funded in two ways:

Option 1 - State Money

A left-leaning approach would be to use only the state's money. The state, as an example, provide a $500k investment and bear the sole responsibility for any profit or loss, being the sole beneficiary of the returns.

Option 2 - Bonds

For a centre-right government. Citizens can invest in 'bonds', for $100k cc for example, and after a set amount of time have their bond returned to them based on the performance of the fund. If the fund lost money, the bond will be worth less upon return. If a profit was made, investors will see more money returned to them than they put in.

The state will take a cut (say 25😵 of all profits before sharing the remaining 75% amongst the bond holders. The state will also be able to buy bonds for itself.

Potential Returns

It is indeed possible to profit this way, but this is the riskiest way to invest in eRepublik. For example, if 500,000 cc was invested in tanks three months ago, and those tanks were cashed out today, almost 25,000cc profit would have been made.

Thoughts

As always, I'd love to hear people's views on whether this could work or not. 🙂