Nadiya

[Svetlana]

How three technocrats saved the Nadiyan economy from a wave they ardently opposed


[b]Analysis piece by: Dr. Yuditsky Kvetoslav Katharinovich for @Vmeste![/b]

The Nadiyan Confederation, and more specifically the Nadiyan Central Bank, have a somewhat unique mindset and attitude when it comes to handling the financial world of the nation with its complex and cut-throat environment which hasn't been matched anywhere in Terra as most nations don't fall under the category of bankocracy like Nadiya and its banks. 

The Confederation's financial uniqueness showed itself again following the conclusion of the Kerisian War and the government releasing sn alarming report on the country's financial situation, this led to the NCB and its allies to trigger article 51st of the constitution and effectively take over Nadiya's budget for an undetermined period of time. 

However for the nation to reach such a situation, a series of decisions and power expansion must be studied in order to understand Nadiya's orphan position among the banking world.

I) Establishement of the NCB & Creation of the Nadiyan Ruble

For starters, the history of the Nadiyan Central Bank begins in 5568 shortly after the First Trigunian War erupted, the Bank was created alongside the Nadiyan Economic Community, a decentralized economico-political hybrid that blurred the lines between being an intergovernmental organization and being an economic and trade union.

The idea of a unified yet decentralized Banking system was first brought up by representatives of the Free Democratic Republic of Brakav, who had recently suffered from a robbery of its gold reserves by rogue elements of the imperial Governorship that controlled the major city of Kaiserberg in the north.

The Brakavans argued that the newly independent breakaway republics needed to create a unified currency as a counter weight go the imperial Trigunian Ruble but also as a way to grant the new republics a glimpse of legitimacy among terran nations especially since most didn't recognize those republics and others openly embargoed them which caused currencies such as the Kozakis Rada, Lesnovian Ruble, Nova Beagukiyan Won to free fall and threaten the collapse of new republics.

This ultimately led to the creation of the Nadiyan Ruble, a common currency between the 7 members of the NEC with the new NCB being put in charge of its regulations while the financial ministers of the member states were permanent members of the board of directors which allowed them to effectively exploit the central bank by appointing a loyal governor in exchange of them conceding powers to the ever more powerful Nadiyan General Assembly. Ultimately the gambit of conceding political support in exchange of money will be the nail on their coffin. 

II) Dawn of Unification & rise of the twin serpents

Only 10 years had passed since the conclusion of the Second Trigunian war and official execution of the entity known as Trigunia by the NEC and their allies, yet the archipelago suffered from a wave of revenchist Trigunian terrorist attacks that rocked the established belief that decapitating the twin headed eagle and organize "fair and transparent trials", which were nothing more than a grand piece of theater because those same nations that judged Trigunia for their war crimes had committed heinous ones themselves on the population that was still living inside the Trigunian Tsardom by deploying weapons of mass destruction in the form of a weaponized viral agent capable of physically handicapping thousands of people by attacking the eyes and hijacking blood pressure this in turn would cause the infected to lose their eyesight and for the lucky ones to suffer from chronic vision issues.

On top of that, recent polls and elections had shown the population longing for a unified country as opposed to the newly reformed five republics which suffered from political and economical instability due to the lack of diplomatic and economic unity between them, which pushed the NGA to officially launch a unification protocol that would focus on economic and social integration between the republics until  they were "parts of the same body and mind, indivisible and synchronized". During the period that followed the launch of the protocol, a dynasty began establishing itself as the rulers of the financial world in the Isles and those were the Maximovnas.

 Originally a Trigunian aristocratic family, they jumped ship after the NEC announced the creation of the Nadiyan Ruble while the Trigunian Ruble had already lost more than 1200% of its value because of the war, the Maximovnas were quick to build connections with the rebels as the first records of them in the NEC have them listed as governors of the central banks of Kozacchyna, Brakav, and Vrosnok while their children studied in the most prestigious schools just to come back and help solidify their family's position as the isles financial hegemon. 

This cycle of self renewable continued until two twins began leaving their marks more obvious to the wider Nadiyan population, and those twins were Evelina Maximovna and her brother Pestov Osip Maximovna. The twins made their first appearance by being the top graduates from the Zarvospol High University of Finances, and Commerce which propelled them to the highest banking positions in Kozacchyna with Evelina being governor of a local credit union in Svitoba while her brother Osip took over a banking union in Petrograd, the twins then gained a reputation of being strict technocrats focused on making their institutions stronger and more stable either through dictator-like purges of corrupt elements or strong arm reforms to clean their institutions image and credibility.

 After the unification was completed and the Constitutional Convention was called by the NGA, the twins successfully lobbied for the introduction of a never seen before constitutional clause for the central bank to use, Article 51 of the constitution was passed by the convention alongside a series of other executive amendments which allowed for that specific article to go unnoticed by the general public as the constitutional referendum was approved by the population and the isles geared themselves toward the proclamation of the Confederation.

III) Evelina's rise to power & the Great War on the Underworld

In the wake of the first confederal elections and the election of Snezana Konstantinovna as Chief Executive, Evelina Maximovna was appointed governor of the Nadiyan Central Bank with virtually no opposition, her opponents tried discrediting her by saying she wasn't fit to govern such an important institution since she only controlled a minor credit union, but Snezana didn't back track from her choice and even justified it by saying "Nadiya's economy is in shambles with need someone that doesn't fear consequences at the helm of our Nation's most important bank to get us on the right track and finally be able to consider debt and our currency as minor issues." 

After all the ceremonial procedures were concluded and Evelina was sworn in as governor of the NCB, her first decision was fo fire the entire board of directors and replace them with fresher members who will bring brand new ideas to the bank, the decision sparked an outrage among the well established financial bodies who saw their position as powerful entities crumble as Evelina carried out reform after reform in the hopes of saving the Confederation from its self inflicted drowning. She then declared was against the black market in a famous declaration in which she said, "The previous governors of this bank clearly knew about the rampant issue of unofficial exchanges and under table agreements that undermine this institution's stability and reputation. But today I'm here to fix this mess once and for all because I fear nobody instead I install fear into the hearts of my enemies, head my words, ANYBODY that stands in the way of the Nadiyan Central Bank and our reforms will find their head on a spike and their stocks will serve as fuel for the insects eating at their foundations until their whole scheme comes crashing down. Nadiya will become a financial gem in terra, we will acknowledge debt, make our currency strong, rely on official and trustworthy sources for our income, and we will spend mindlessly and ignore the debt monster like so many nations do in Terra, I'll personally drag Nadiya into a better world even if she kicks and screams." 

Shortly after that famous declaration, she imposed a spending limit on the Konstantinova government which forced them to flip the government's situation from a 5% into a 14% surplus thanks to the bank imposed harsh austerity measures and complete defending of the armed forces alongside tax hikes on the mega corporations. The Bank's open war against the black market culminated in the raids of hundreds of exchange positions, closure of financial institutions that were found to be involved in underground deals, busting of illegal currency exchange offices, and the famous unleashing of the Bank's regulation on the Nadiyan Ruble by allowing it to float and match the value before orchestrating a subtle take over of the exchange markets by making them puppets of the bank.

 Those cutthroat policies eventually led to Nadiya paying off its debt and making it fall from 135% to an excellent 20%, while the bank turned its gaze toward the megacorporations dominating the Nadiyan market and violating every aspect of "intelligent finances", in a famous declaration Evelina said "You cannot be a financially smart nation when you have megacorporations dominating your market and suffocating everyone that doesn't subjugate themselves to them and obediently follow their orders like some obedient dog without free will." As every megacorporation found themselves on the chopping block and financial entities cleansed themselves of their corrupt elements, the Central Bank poised itself as the sole savior of the Nadiyan financial world even if it was to the expanse of the average Nadiyan.

IV) The Honeymoon and collision with the canons of war

As a result of the harsh austerity and major reforms, Nadiya was finally able to pay off its debt with Evelina allowing the government to run a small deficit budget in 5667 after 12 years of war against financial idiocy. In the wake of the war, the Commission for Fair and Humane Development with Babkina Vladimir Igorievna at its helm while Evelina's twin brother Pestov Osip Maximovna took over the newly created Commission for Financial Transparency and Stability. The trio of bankers took the reigns of power and allowed for the Nadiyan financial world to ripe the awards of Evelina's reform by maintaining the cutthroat standards established by her alongside pulling the strings of politics by making sure all the governments were obedient to the bank by threatening to trigger article 51 of the constitution. 

Even when the right-wing Hosian Matriarchal Democratic Party swept the third confederal elections of 5670, they didn't dare outsmart the bank and instead adopted a pragmatic budget that bended the deficit cap but not enough to anger the bankers since they saw C.E Liliana Keitel Thaller as a wise and reasonable women who had already shown herself to be useful such as when she helped the bank fix Brakav's budget by filling the abysmal revenu hole that threatened to push the state into a recession, so it wasn't surprising that Thaller government and the bank trio enjoyed a long period of honeymoon until they snapped back to reality with murder of Lesnovian citizens by NEKK junta forces in the deliverance pass. Immediately after the incident there were talks about Nadiya launching a war against NEK in winter taking advantage of the pass freezing over which would allow for tanks and soldiers to roll over into NEK. 

When Evelina and her brother heard about the plans of the presidential council to drag Nadiya into an armed conflict the scales of which were unmatched ever since the Second Trigunian War, they both tried reasoning with the presidential council arguing that the Nadiyan can't handle the pressure caused by a war especially the banking system which was already licking the wounds from the purge of its corrupt elements. On top of that, a war would inevitably cause the annual budget to go into the deep red and inflate the Nadiyan debt, something the bankers desperately try to avoid.  However, even with all their warnings, the presidential council still declared war and marched over NEK all while the NCB and their commissions daily routine became an endless cycle of crisis management and ever retreating trust from international institutions they desperately worked to achieve.

V) Take over of the budget and establishement of the bankocracy

After the Kerisian war, Nadiya found itself at the edge of a financial cliff. The economy had retracted because of the war, the reckless decision from the government to borrow large sums of money to militarize the economy, trust in the Nadiyan banking system eroded as many saw the decisions of Petrograd as erratic, and to top it all off, Vamaj was in the deep red because of ongoing troubles in the Migrant's Pass. 

As soon as civilian rule was restored and the military was called back into their baraques, Evelina triggered article 51st of the constitution during the budget negotiations for the financial year 85. This unprecedented move was backed by the Supreme Cooperative Court, who rulled in favor of the NCB by declaring their hijack of the budget as constitutional. 

Shortly after the takeover, the NCB implemented a new budget by decree which consisted of a near total defending of the army and relocation of their funds toward investment plans alongside a titulage of the Nadiyan Commission for Financial Transparency and Economically Prosperity, allowing the bank to carry out whatever plan they have in mind for Nadiya's financial stability. The new budget made by the NBC flipped the previously 13% deficit into a 5% surplus with the NCB lowering interest rates as it turned its gaze back onto the banking system, which saw black market financial institutions flourish during the war as Nadiyans used them to bypass the government's ban on foreign currency exchanges.

Ever since the takeover of the budget by the NCB, Nadiya developed what is called a "bankocracy" aka the rule of bankers and their banks over a country's institutions or economy. In this case, the trimuvirate between the NCB, CFHD, and CFT has allowed them to essentially control the entire Nadiyan financial world to goals for growth and development while maintaining a tight leash around the government by forcing them to adopt a surplus budget every year until the debt lowers back to 20% of GDP then they would be able to have a deficit again yet the banking trimuvirate will still forbid them from ever crossing the 3% deficit limit since it would derail their plans for ultra stability in the Nadiyan financial world.