Belassolt (CS) – A government white paper published today aims to develop a functional white-collar economy for the Republic of Glastieve using a model that uses an approach focused on practicality.
The self-described “Glastieven Model” was announced by Mark Kavanah, the micronation’s Minister for Media and Economics, who fêted it as the “next conceptual evolution” in the creation of a functional micronational economy. Such has been a sort of ‘Holy Grail’ for the community, with numerous failed intermicronational- and national-level projects over the past two decades.
His confidence in the model is underpinned by a focused developmental strategy which is seen as compensating for a lack of building blocks that fostered unviability in other models. The model’s lodestar is an economy founded on in-demand infrastructure, such as stock exchanges, that is further developed by a “Three Pillars Strategy”.
The three pillars, which according to the white paper are fundamental to the model’s success, focus on transactional exchange of currency to develop value, fostering supply and demand, and the state’s participation in the intermicronational and macronational economies.
Ensuring that the Luach, as the national currency is called, has meaningful “real-world” value is central to the first pillar. The white paper argues that the national economy should be thought of as a “game of give-and-take”, in which each participant strives to spend all he or she receives. The national government will insist that public servant salaries are spent on useful products or services and that policy will focus on “strict reciprocity”. These steps it is argued will allow the currency to build a practical exchange value against macronational currency, as opposed to being assigned such a random or desired value, as is a common practice.
Spending on useful products or services will play a key role in fostering a constant supply and demand within the Glastieve economy, which is the second pillar of the strategy. That other models have allowed the proliferation of useless services is seen as contributing to economic gluts. To achieve success the model seeks to overcome a key hurdle: that most micronational demands are already met by macronational merchants, who generally work from a point of competitive advantage. Accomplishing this, it is suggested, requires that the economy offers goods and service that are more attractive than macronationally-sold equivalents.
The third and final pillar will build the state’s capacity to act as a single, self-sufficient, entity within the broader intermicronational and macronational economies. In the former case, Glastieve will trade with other micronations using existing frameworks and recognized intermicronational currencies; in the latter, it will seek to earn sufficient macronational currency to cover operating costs, thereby creating financial independence.
In his announcement, Kavanah was optimistic about the model’s future, hoping that domestic success would translate to its wider adoption throughout the community. “I would also like to try to end [the neglect of economies] in the micronational community in general … to create a powerful intermicronational economy,” he said.