OOC Source: Business Today KenyaNiederung: The government of Prime Minister Waysira Tolessa has revealed a proposed package of major economic reforms and initiatives to be handed to the House of Representatives for review. The package, named the "Llaqta Forward Now!" initiative, merges several economic reforms, investments and changes into one single legislative proposal meant to drag Suyu Llaqta out of its worsening economic situation. Following the Llaqtese-Istapalian war the Llaqtese economy was nearly completely destroyed with 62% of Llaqtese living in poverty and a major 42% unemployed. This only worsened when conscription was abolished after the war, causing thousands more to end up in unemployment. The last two years marked a step towards political stability, as the last of several constitutional ammendments was enacted making Suyu Llaqta a proper constitutional monarchy. With the political arena now clear, Prime Minister Tolessa and the government as a whole have turned to the economy, trying to gain the system some legitimacy.
In the package several measures are outlines, first of all economic reform. In the proposals the KVP-DP government has announced reforms that would liberalize the economy, privatizing large sectors including the previously untouched banking sector while putting in place a web of regulations meant to prevent corruption and improve efficiency in these new to be created private sectors. Almost every sector is to be privatized, with only TOC's and large banks seeing some state involvement, with the state keeping 50% of their share. All other sectors are to be privatized, with new taxation rules, work-ethics regulations and a medium to high minimum wage to be imposed, making sure these bussinesses are still regulated in some ways. This measure will mean the first time the Llaqtese economy will be a largely private economy in over 300 years. Besides these reforms a investment package corresponding to 50% of the GDP (40 billion) will be made available, financed through debt financing and mostly plundering the national reserves. This investment package is highly necessary according to the Finance Minister, which has indicated that if no drastic measures are taken, Llaqtese infrastructure, services and government institutions will not be able to keep up with a growing economy. This massive fund will be invested into the creation of the "Coastal System" first proposed by Prime Minister Tolessa, which will see all major coastal population centers connected by a major highway as well as the centers themselves being renovated with new roads, services and better connectivity in the form of basic internet. Further funds will be invested into the "National Railways", with a railway line to be constructed passing through every region. As of right now, Suyu Llaqta does not have any major highway or railway line, relying on smaller unpathed roads and secondary paved roads. Besides infrastructure, at least 5 billion is to be invested into creating a digital government network in which ministries can communicate with eachother, organize their plans and decisions and publish upcoming projects for the population to see. This fund is also to be used in hiring new administrators and further strengthening state institutions.
This proposed plan, meant to reignite the whole economy and spur major economic growth, coincides with the KVP-DP government its desire to join the Dovani Pact as an full member, hoping to strengthen its economic position on the continent. The economic ministries, being the Ministry of Economic Affairs and Ministry of Finance, have admitted that the proposed reform and investment package will mean a massive increase in government debt, expecting it will baloon to over 141% of the GDP at the end of the program while it currently sits at 85%. This has let to some oppossition in the KVP, with some of its members being fiscally conservative. Prime Minister Tolessa has underlined the need for the reforms, saying that
if nothing is done, our people will bear the consequences. While our debt will increase, this package will mean the birth of a new economic reality for Suyu Llaqta. It will likely be a rought few years as the economy adapts, but my government hopes and in fact knows that it will be worth it, as our current trajectory is not substainable.The LFN package is to be voted upon next month by the House of Representatives.