Kalistani Major History

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The transition of the Enskalan economy from the old order of state owned assets to a privately controlled-government regulated liberal
democracy is one which provides great opportunities for Enskalan, allowing for both national and foreign investment, enabling businesses
to make use of cheap labour and resources from abroad whilst providing improved living standards for the people back home. The Berrio
Government has from day one pursued the aim of liberalising the economy while also protecting the most vulnerable during the transition.
The Enskalan Model is a great representation of this aim, where in the government retains majority control of of companies which otherwise
would have immense power over easily monopolised resources, ensuring that the price of these goods is kept low and protecting the nation's
energy resources, transport, infrastructure and defense industries from the worst aspects of the free market.
That the government needs to implement such policies should stand as a warning for the negative aspects of liberalisation, most notably the
threat which foreign investors may pose to Enskalan stability, economic growth and national defense.

The Positives
An excellent case study is the influx of foreign investment from nations such as Likatonia, Valruzia and Kazulia. All these states have vibrant
powerful economies, their investment could provide innumerable business and job opportunities for the people of Enskalan long lacking
investment and modernisation. Likatonia's Hamilton Company has been highly successful, and their investment in the national EnsGas company
provides needed capital for the expansion of the Ananto Strait gas field. Kazulia's Northern Airlines has taken significant interest in the use of
Enskalan as a transport hub between North Dovani, Seleya and Antania. Valruzia is certainly the most significant investor, with privately
controlled LOT Group expanding their reach beyond solely Air Kaliburg, purchasing a 34% stake in EnskalAire. The Valruzian State has also taken
an interest in the energy sector, with State owned Enerwal and Walatom expanding their control over Energia. These investments have allowed
Enskalan companies the much needed capital to expand operations and provide the current economic boom, a negotiated settlement for which
foreign investors and the Berrio Government must be applauded.

The Risk
However, positive the impacts of investment, there is a significant risk that permeates such liberalisation programs, the threat which foreign state
and foreign corporate investment has on the development of national industries which both remain profitable but in such a way as to be
advantageous to the Enskalan people. Valruzian owned Enerwal and Walatom, although perfectly effective operating within their own country,
run the vast majority of their services in a country in which their state maintains political control over their energy industry. Hence their ownership
of a section of the Enskalan national Energia is concerning as it undermines the very reason firms like Enerwal are state owned in the first place,
to protect the population and ensure government oversight. Private industries are also of great concern, with Hamilton directly tied to the
Likatonian President, and LOT Group holding effective monopoly control of airspace in numerous countries, able to increase sales prices without
the ability for national government's to effectively regulate them.
In order to ensure that the assets of Enskalan are protected in a way which provides opportunities for entrepreneurs, capital for development
employment for workers and cheap products for consumers whilst taking into account the political and social needs of the Enskalan people will
always be a balancing act. The Enskalan model, which prevents private investors from gaining over 50% of a natural monopoly, and which
prevents foreign companies from having a larger stake than the state in partially-nationalised industries, helps maintain a semblance of control,
but it is not a catch all solution to the problem. Such issues as Enskalan continues to grow in strength and prosperity will have to be addressed
if there is ever to be a prosperous, progressive and liberal Enskalan economy.


Haritza is the leading Enskalan newspaper in Kalistan. Although having historically limited readership it has grown in popularity with the
rise of the National Movement and the election of Marinel Berrio as Lehendakari of the Enskalan State. Its editors emphasise political
neutrality on internal Movement matters, however it is staunchly in support of the National Movement's aim of establishing an Enskalan
national identity.