2023 Pelo-Myrian Economic Conference

Pacifica
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6:37 AM.
Ambassador Hanako Yukijo of the Pelinese Ministry of Foreign Affairs quickly checks her wristwatch as her diplomatic vehicle turns to enter the car park of the A. dainēiko Diplomatic Conference Center. It is a spring morning in the southern Yukisora Mountains; a white overcast sky shines down on the city of Dainēsa as a heavy rainstorm washes the last winter snow from its parks and streets and as the white-and-red Pelinese Sakura flying outside the conference center flutters erratically in the wind. Today, September 23, Hanako and other representatives from the proud Mediterranean nation of the Kingdom of Pelinai are scheduled to meet with a delegation from the neighboring Republic of Myria and discuss potential Pelinese private or government investment in it as it attempts to stabilize its economic situation. Other Pelinese individuals scheduled to attend include Economics Minister Sergey Kazak, State Industry Minister Pyotr Krasnosk, and multiple delegates from various Pelinese companies that had expressed interest in investing in Myria.

After a short walk through the frigid parking garage and an elevator ride, Hanako arrives in the granite-floored lobby of the conference center. Though the meeting is scheduled to formally begin at precisely 9:00 AM, still more than two hours from now, she hopes to at least shake hands and obtain introductions with all present on both sides before it starts; thus, she walks briskly through the winding halls and offices of the bustling structure before arriving at the door leading to the designated room. “Your identification, please.” asks a uniformed, submachine gun-carrying officer of the Pelinese Internal Troops. ”Hanako Yukijo.” says Hanako as she provides both her lanyard badge and her diplomatic ID to the officer for the usual scanning and visual inspection, respectively. After doing so, the officer unlocks the door with the keycard and opens the door.

Inside the room are arrayed a multitude of Pelinese diplomatic, economic, and industrial personnel, as well as various aides and assistants to help organize the many materials to be used over the multi-day conference. ”Peace be with you, Miss Yukijo. It is good to see that you have made it here so soon; the rain is unfortunately delaying the arrival of some of our colleagues, especially those that planned to travel by helicopter.” says the current Economics Minister, Sergey Kazak, as Hanako enters the room. She brushes her long, straight black hair to the side and straightens the traditional flaming sword pendant that she is wearing as she turns to address him in turn: ”Peace also be with you, Minister Kazak; it is good to see you as well. Before we begin the meeting, I wished to inquire about one of the delegates that we have scheduled for participation here. While I do not claim to be an economist of any kind, and while I am admittedly not fully knowledgeable about the precise matters of Myria’s economic profile, may I ask why we brought a representative of Katako Security here? Cybersecurity does not seem fully relevant here.”

”I, too, have questions as to the meaning of my presence here.” states a figure sitting at the far end of the conference table. However, perhaps it would be best to wait and see - I have, after all, already taken the trouble of traveling here.”

Hanako looks at the list of participants to remind herself of who it was:

26. Katako Security: スカンダグロフチュレーレヌ

”I suppose so.” she says. ”Has anybody here received an update on the travel status of the Myrian delegation?”

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7:21 AM

The air was cold.

Even inside the vehicle, Minister of Trade Yacub Karam could feel it. As he finished the files in front of him, he prayed that this cold won’t be the reactions of the men he was about to meet.

“Why did we ever agree to meeting the Pelinese at a mountain?” He muses to his colleague Sehla Khuri, the minister of Industry. He knows he won’t get a response from her, unlike him, she sadly does not have a sense of humour. Doesn’t matter. He tells to himself, the joke was to ease his mind anyways.

The rain keeps pouring down upon the vehicle, a consistent background noise as he thinks to himself the plans for the meeting. However, this contemplation by himself would be short-lived, as he arrives at the A. Daineiko Diplomatic Conference Center. It must be 7:50 already.

7:54 AM
Room for the Myrian Delegation

“Good day, Minister Karam.”
The man dressed in a black buisness suit greets the minister. He was Mikhal Zimra, Head of the Myrian LIG Council(Labour, Industry, and Government). His attendance to this conference was essential in ensuring that the companies will agree to invest in the Start-up SMEs.

“Good day to you too, Chairman Zimra, I take it that we have made an agreement in the LIG?”
“Yes, the Compnaies have agreed to cooperate. They’ll do anything we ask as long as we come home with an agreement. GIbiri was very enthusiastic about expanding their markets to Pelinai.”
“Very good. Now all that’s left is the conference itself. Let’s go over the plans again.”

He opens the files given to him by the Myrian Ambassador to Pelinai, detailing its economy, its leaders, and so on. Pelinai, despite its large deposits of wealth underground, could not say it was leading in aboveground wealth. Agriculture.

“From what we discussed, we’ll be selling grain for investments, like an underdeveloped nation pampering to its benefactors. Is this the image we want to show to our citizens?” Khuri expressed her discontent with the plans. She preferred to approach Pelinai with Myria’s Heavy Industry and expertise in trade.

“We’ll be an underdeveloped nation if the economy implodes on itself any further. I’m willing to bet my position as minister that our citizens would rather be less proud of their nation yet have a paycheck instead of being a nationalist in a bankrupt nation.” Karam interjected. Myrian Manufacturing would only meet an already full market in Pelinai. “We have an advantage in Agriculture, Khuri, it’s use it or lose it. Now, let’s not keep our hosts waiting any longer.”

Pelinai, Myria’s largest neighbour, was a nation that could be described in many ways. An Industrial Powerhouse. A military power, a Religious bastion. Despite these varying descriptions, everyone agreed on a common trait. “Mysterious.” Despite its large navy and resources, it favoured growing the domestic market instead of turning to the global market like Myria did.

In any other situation this conference would’ve been a meeting to discuss opening trade with Myria, but these situations were different. Myria, facing a lack of money to invest in the SMEs, needed investments from anyone that is willing to.

“Your identification please.” A uniformed, armed officer of the Pelinese Internal troops asks them to identify themselves. While Karam doesn’t agree with the presence of openly-armed men even inside the complex, he can understand the line of thought. Following inspection, Karam and his delegation enter the room.

“Peace be with you all, gentlemen. We are very grateful that you have agreed to a conference with us.”

It was 8:31, and the air was cool.

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”Peace also be with you, ministers. Allow me to be what is likely not the first individual to welcome you to Pelinai; I hope that the weather here has not been too unpleasant for you. I understand that we are meeting to discuss an agreement for Pelinese investment in Myrian capital markets, yes? But, of course, please have a seat; we can discuss business when the meeting starts.”

Minister Kazak showed the Myrian delegation their designated half of the hickory meeting table before sitting down on the Pelinese side.The meeting room was large enough to accommodate roughly 40 or so people at the table itself, with more room on the margins for aides, and had no windows; instead, reinforced faux-wooden doors on either side led to the adjoining hallways or to private rooms for each of the delegations to use for organization. The floor was made of the same white quartzite tile that was typical to modern Pelinese government buildings, and the walls were painted navy blue.

”I’m sure that you have materials to prepare before the meeting begins, so I will leave you to complete any remaining tasks that you have; we will complete formal introductions at the start of the conference.”

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“Thank you for your hospitality, Minister Kazak.”
Karam replies on the behalf of his delegates, as they sit down on their side of the table. Karam, seasoned in the art of neogotiation, uses a brief moment to scan the Pelinese delegation. While there were more than 20 on the Pelinese delegation, he could tell that thare are just 2 people who he’ll have to focus on. Economics Minister Sergey Kazak, a man who considers national interest the greatest virtue of economic policy. While Karam did not agree with the protectionism on raw resources, a policy kept under Kazak, he could understand the thought process behind it. State Industry Minister Pyotr Krasnosk. While he does not often come out to the limelight, he was famous in the Industrial scene for preparing documents and reports systematically and faithfully, even at the rank of Minister. While he analyses his “adversaries”, his eye catches an anomaly, of sorts, sitting at the far end of the conference table.

In a room of government officials and industry captains, mostly in the fields of manufacturing, financing, and agriculture, a representative from Katako, a cybersecurity company, was not who he had expected to see here. What caught Karam’s interest more, was the man’s attitude, acting simultaneously as if he was in control of the room, and as if he was trying to blend in with the navy blue walls of the room. Karam’s fair share of experience allowed him to see what kind of power an individual holds in an organisation just by looking at a person’s body gesture. This man, the black sheep of the herd, must be here for a reason.

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After directing the Myrian delegation to their side of the table, Minister Kazak assesses the present negotiating situation between Pelinai and Myria.

]Pelinai’s comparative position here is favorable; Myria’s compromised domestic economic situation applies significant pressure for it to prioritize obtaining the means to avert further crisis as quickly as possible, even at the cost of providing economic concessions to the provider of those means. However, it is entirely possible that Pelinai would derive more long-term benefit by refraining from profiting too much at Myria’s expense. Doing so could, after all, sour it towards further diplomatic-economic engagement with Pelinai, which would function as a major impediment to furthering Pelinai’s regional economic presence. A more favorable action would be to use Myria’s desire for financial investments as an opportunity to establish some manner of joint economic exchange that can be built upon later.

Minister Kazak then opens a binder in front of him, filled with documents and notes that had been prepared himself or received from Minister Krasnosk. He quickly leafs through the binder, reviewing the most probable options that Pelinai could exercise as part of an agreement: reductions in trade barriers, investment in certain Myrian public companies, and arrangements for the importation of Myrian agricultural products such as corn and milk. Myria also happens to be selling government securities with highly favorable terms, which presents an additional opportunity.

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Minister Karam and his delagation had formed a strategy using what was available since almost a month ago.

‘The nation is in an unprecedented economic crisis, Triad investments turned out to be not enough to return Confidence in global investments. This is vital if we want to float back our economy.’

These thoughts had plagued Minister Karam and his delagation since the plan to neogotiate with Pelinai was confirmed. While on generally amicable terms, Pelinai and Myria cannot be described as nations that are closely tied to each other, or historical partners.

For one, Myrians cannot live without Wine, but the Pelinese have a profound distate for Alcohol. Yet, a Compromise is possible, Myria’s Grapes, while renowned for their taste as wine, are also enjoyed globally as itself, or as ingredients for other products.

‘Perhaps, I’ll have to make concessions to Pelinai.’

Recent policies indicate that Pelinai is seeking an enhanced economic position in the Mediterranean. Its neighbour would certainly be a good starter base for this endeavour. Yet, one could solve a problem by another. A quid pro quo.

‘When you got skin in the game, you stay in the game. But you don’t get a win unless you play in the game.’

Karam finalised his deck of cards.

‘What do we want?’
A streamlined investment process. Those start ups will need more money to prosper.
Investment in Public Companies, the railways have been almost abandoned due to the economic crisis.
Any measures that can boost trade, keep the Hana flowing in.

‘What can we give?’
Cheaper Agricultural Products. After all, a number of those who lost their jobs turned to farming, and agriculture was the only industry that wasn’t devastated by this fiasco.
Lowering trade barriers. This would be an win-win.
Shipbuilding? No. Their dockyards won’t have their work stolen from them.
Allow easier access to the Myrian market. If not for all of those above this should get them to consider it.

Karam’s mind was in overdrive. Yet, from the outside, he was as calm as the gentle Mediterranean Sea. His delegation were not too different.

When he noticed that the others were all ready, and the Pelinese seem to be as well, he rose up from his seat, extending an arm for a handshake, the conference was to start with one after all.

“Yacub Karam, Minister of Trade of the Myrian republic.”

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Minister Kazak and Minister Krasnosk both stood up and returned Minister Karam’s handshake.

”Sergei Kazak, Minister of Economics for the Kingdom of Pelinai.”

”Pyotr Krasnosk, Minister of State Industrial Developments for the Kingdom of Pelinai.”

Both ministers then returned to their seats and retrieved some document folders from a nearby stack. Behind them, a Pelinese aide prepared a notepad to take minutes.

”Now, without further ado, let us begin this meeting. To start, we understand that the Myrian Republic is looking to finance some of its public expenditures using government bonds. The Kingdom of Pelinai is willing to purchase some of these bonds in order to facilitate Myria’s economic recovery programs, depending on the terms of their issuing, and we would like to confirm some details with you: their maturity dates, interest structure, currency denomination, and recourse in the event of default, to be specific.

Continuing with finance, I have assurances from a selection of Pelinese banking firms that they are willing to extend lines of credit to ailing Myrian companies in exchange for commensurate safeguards on their investments.”

Sergey opted to discuss finance first before moving on to trade infrastructure later. He would then have to consult Director Georgiyevic on the matter of facilitating further cross-border traffic; the Special Police Directorate and the DCIBS would naturally both need to be apprised of any potentially substantial increase in volume of goods to screen. The inspections would also pose a challenge for highly perishable imports like milk as well, but that would come later: he had other things to negotiate for at the moment, and it was not an extremely high priority item in any case.

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Sehla Khuri had been managing Government bonds for the past few months of the new government. The Sunrise Triad’s bond programme was somewhat successful in injecting much needed investments to survive, but would bonds be enough for Myria to thrive? There was not much alternatives. She conceded to herself.

“Yes, As of now, Myria’s government bonds we have traded have a maturity date of 10 years. Our data predicts, and in recent years has identified a flat interest structure, with its rate being a 4.5%. There are both variations that are denominated into either Myrian Tynat or foreign currencies. Regarding the event of a sovereign default, the Myrian Government would likely be selling its foreign assets as to mitigate the theoretical situation.”

How many times had she repeated that data and information to investors? She lost count at this point. She carried on and on, until the Pelinese delegation seemed satisfied with what they’ve heard.

“Regarding the topic of industrial credits, Myria currently has a programme offering insurance that covers non-commercial risks that may cause investments to be lost. Said programme also provides easier access to small and medium businesses, should it be of interest for the Kingdom of Pelinai.”

She was unsure how much or hiw little the Pelinese are trusting the Myrian financial situation. In one side, they had every right to have doubts, especially if Myria has experienced a major recession, but on the other, they promise quite generous terms, with a few even being able to be covered by existing progrmmes.

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