Majatran Economic Association (MEA)

[Drax]

Finance Minister Sabriiqa Soqnan, Jumhuriat al-Badara:

Producing a lot more oil has produced the expected decrease in Terran oil prices. This has an effect on the economies of oil producers. The government of Jumhuriat al-Badara has proceeded with caution so discharging our governmental responsibilities is not threatened at this time but on balance there is less revenue flowing into our nation because of the reduction in the price of oil. An example is more oil production will be required to reach the oil worth 50 billion LOD at market price than it apparently looked like at the time we made the deal with Yingdala.

One way to deal with this is just wait and hope things will get better. They may. Wars and rumours of wars could drive prices back up.

Another way is to try like APPS to set the price of oil.

Another way and what we hope will be considered by the MEA is to reduce production in a coordinated manner. There are others who have much more experience than Jumhuriat al-Badara at guessing the effect of a certain amount of reduction. Our suggestion is we should reduce production by 5%, note the effect of the reduction on price, and then move to another % to get us where we want to go.

If another nation is already familiar with data on the effects of reduction on price this two step process may not be necessary. Should the MEA favor this idea, it would certainly be helpful to approach the two other largest producers about joining with the MEA in this project. Further, it may well be that only the largest producers in the MEA would need to make the reduction.

We are not formally proposing this at this time but are asking if other MEA members think this is a course we should pursue.

[Zanz]

We are thinking maybe the Badarans are not thinking very clearly about us poor Jelbeks. We are being very sadness that Badarans are not makings all the Yeudish moneys now, but we are saying to you - Jelbeks are needing oil rig jobs. We are seeing many proud Jelbek mens having no works, and you are saying "stop workings so we can be making moneys!" - it is making us nauseous!

Bák Drgrsrmko Kengljy
Representative of the Jelbek Khanate

[Drax]

Finance Minister Sabriiqa Soqman, Jumhuriat al-Badara

We really think this is an instance where our not making ourselves clear has led to a misunderstanding rather than an actual disagreement.

First, Jumhuriat al-Badara is saying reduce not stop.

Second, we suggested as a practical matter such as Jelbek Representative Kengljy has raised that it may be that only the three largest producers should do this. If it succeeded, the Jelbek Khanate would still benefit by the increase in price without itself reducing production or the need for oil rig jobs.

[Reddy]

Talau Siames
Coburan Vizier for Finance

We sympathise strongly with the Badarans on their dilemma on oil price and production. We hope that this will not come across as lecturing PR nagging. Due to the economic downturn, it is unlikely that oil prices will rise as demand will surely fall. It could also be argued that oil prices that prove too high for the currently deflated market may not improve the situation. Even if such market manipulations worked, their effect would be short term and fail to address the oil producers' excessive reliance on oil revenues.

Cobura is of course not anything approaching a major oil producer and is not dictating on a matter which is better handled by the MEA major oil prpducers.

The plight of expatriate Jelbek and other foreign workers in the oil sectot is one of the matters the MEA Fund could be allocated to relieve. The MEA must move strongly against the downturn.

[jamescfm]

Evangelos Galanakos, Chair of the Majatran Economic Association:

The Coburan representative makes a very strong point about the potential effects of economic instability. In recent months we have seen Deltaria and Jakania particularly hit, while other countries are similarly threatened by the events that have precipitated the downturn. I think it would be sensible to hold off on any plans to limit oil production, at least until we understand better the effects that a reduction in demand will have on the global market. The fact that three member states are among the foremost oil and gas producers in the world though, means we will have to address the matter at some point.

With regard to action taken by the MEA in response to the downturn, perhaps we might consider the creation of a "special fund" to invest immediately in efforts to improve the long-run position of an economy, for example large-scale infrastructure projects and investment grants for business. In addition to hopefully creating new employment prospects and equipping workers with spending power to drive demand, these efforts would have lasting effects on the Majatran regional economy.

[Auditorii]

Kafuristan has reduced oil production over the past 3 years, roughly by a million barrels down from 12 million per year to now 9 million starting for 4783. While we understand that the MEA might want to hold off on production, we do not believe that we can survive such a flooded market. We've dealt with this before and increased oil production elsewhere in the world, notably in Vascania has lead to a series of competitions with nations, including my own. In this coming year we can certainly press forward with production and not eliminate a million barrels of oil in the year, bringing us to 10 million for the year but we do feel that a reduction is absolutely necessary.

We would be supportive of more efforts to assist Majatran nations in times of crisis, we're not quite sure of the scope of this organization as it appears its meant to be loosely formed but it might require such a turn to build something that is both relevant and worthwhile to succeed.

Abdul Haleem al-Salame,
Permanent Representative to the Majatran Economic Association
Majatran Republic of Kafuristan

[Pragma]

Mohana Rao, Vascanian Underminister for Majatran Affairs

The Vascanian government would like to express its profound sympathy with all parties affected by the economic troubles certain Majatran nations are experiencing. In our mutual interests, the cabinet of Kavita Mohite would like to relay its desire to open a dialogue between the Empire and the MEA. We would like to know what we can do to help our allies in the region.

We are also aware of the ongoing uncertainty over the price of oil internationally. We ourselves have taken the step of reducing our oil production plans for the next fiscal year, which we hope is the first step towards working bilaterally to address the issue. Our government would not expect less economically developed or less fiscally stable countries to shoulder the burden of managing the price of oil in these tough times. We again ask what we can do to aid the nations of Majatra in this respect.

[Drax]

Finance Minister Sabriiqa Soqman, Jumhuriat al-Badara:

We would like to address two points. First we appreciate Cobura and Jakania reminding us that we as MEA have designated funds and can have more which can and should be put to use relieving economic disruption and providing for ways to avoid it.

Second we welcome the participation and experience of the Vascanian Empire in this discussion. We believe this a far better place to find a way forward than, say, the World Congress ( where, while one discusses the sandstorm devastating the eastern wilderness, another has suddenly seen a walrus; after a debate on the characteristics of walruses and designating a neutral party to examine the statements made and guess whether it was really a walrus, the discussion reverts to the blight of northern wheat which may have been caused by frost.)

[Rogue]

Albert Kočí, Minister of Finance for the Grand Empire of Deltaria

We welcome these discussions inside the MEA chamber as our continent is facing some harsh times ahead. Specifically my nation of Deltaria is being seriously affected by one of the worst economic crisis in the last century. Our nation is racking up debt in a record amount of time and is losing foreign investors on a grand scale. Futhermore some of our sectors are in a real dire position. We would encourage the creation of a fund of sorts to prevent this from happening in the future and possibly aiding the poor parts of Deltarian society now. We will not ask for billions as we are currently working to improve the situation by our own accord but we would ask our fellow MEA members to work together in these trying times and let us all ensure that we overcome the difficult times ahead.

[Kubrick]

I find it scandalous and insulting that you, Koci, ask the MEA for money after a Vanukean company offered to bail your workers out. You can't take that money but ours is fine? No, the Khaganate will not invest a cent to bail out the Deltarians, they refused good Jelbic money before, we will refuse them now.

Jebr Kárak
Representative of the Delegation of the Kingdom of Vanuku
Receiver of a Temrkai's Breed