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Connections™ Investment Reports - Minmatar Republic Report Out

Author
Apollo Lyserius
Minerva Technologies
#1 - 2014-03-03 21:28:01 UTC  |  Edited by: Apollo Lyserius
Greetings, ISG. I have recently been invited by the Garoun Investment Bank Connections™ Magazine to help writing investment guides for aspiring investors. I will try to cover the most significant economic entities of the cluster, ranging from the proper States to specific, autonomous locations, such as Hueromont. I thought I'd might share these reports here with you, as I know there are many starting investors and budding (And already established) industrialists around.

I have no intention, however, of exhausting the information on the matter, as it would obviously require a few PhD thesis on each State's economy to do so. The intention here is of offering a simple, general guide to offer a starting point for interested individuals.

I have picked the Caldari State for the first guide.

You are more than welcome to comment and give me your perceptions of the report. Did you consider it accurate? Do you perceive the investment environment in a different way? Which State or autonomous region would you like to see in the next report?

Garoun Connections™ Magazine wrote:


Caldari State - Executive Summary

The Caldari State’s highly developed infrastructure, economic stability and location in the cluster has made it a popular hub for investment. Since the start of the capsuleer age, and the capsuleer industry boom, the Caldari economy has opened itself up considerably, resulting in record inflows of foreign capital and in the Jita 4-4 Phenomenon. This guide introduces some of the key issues which investors should be aware of in setting up and running a business in the State, ranging through corporate structures, tax and employment matters.

Some of the key matters to be aware of are as follows:
[+] Stands for positive aspects
[-] Stands for negative aspects
No symbol stands for neutral aspects


  • [+] In the State you will find a highly developed economic, political and infrastructural framework providing the necessary security.

  • [+] Judiciary and civil service institutions are professionally regulated to ensure consistently excellent service. Contractual agreements are secure and intellectual property is strictly protected.

  • [+] The State's foreign direct investment ranges the hundreds of trillions. Through capsuleer industry and Jita, more than 10,000 foreign corporations are already operating in the State.

  • [+] The State has significantly reduced the level of its corporate tax burden planetside in the last years. Orbital taxes remain the same.

  • [+] The Chief Executive Panel also develops reforms to improve the general tax framework in order to keep indirect labour costs down.

  • Customers and corporate partners in the Caldari market do appreciate contracts under Caldari law and local corporations and locations.

  • [-] Historical factors and recent conflicts may create animosity towards Gallente investors. This can be easily worked around by hiring façade Caldari figureheads for proxy corporations and through investments on PR. On planetside level, however, this may be harder.

  • [-] The capsuleer boom and the Jita 4-4 phenomenon has caused the State's infrastructure to become highly-saturated, with stargates to Jita constantly closed on peak hours due to high congestion, slowing down the flow of goods.

  • [-] The State's complex and decentralized financial system offers a significant challenge for foreign investors, with exchange rates from ISK to corporation scrip often rendering trade unprofitable or even impossible.

  • [--] The State's complex and decentralized financial system, along with megacorporation monopoly on colonies and peripheral locations makes it extremely hard for foreign investors to enter its planetside markets. Such barriers are relatively weak on central locations such as New Caldari and nearly non-existant in orbital stations, where the megacorporations welcome foreign capital with open arms. The Eight still maintain a strong presence and advantage in every level.

  • For the complete, 150 pages report, access the Connections™ GalNet website.

James Syagrius
Luminaire Sovereign Solutions
#2 - 2014-03-03 23:27:01 UTC
As someone with a passing familiarity with trade I congratulate you on your project.

Such a project is long overdue.

It is surprising to me however that you didn't choose to start with the clusters largest and most vibrant economy.

But no matter, to each his own.

Fredfredbug4
The Scope
Gallente Federation
#3 - 2014-03-04 00:44:59 UTC  |  Edited by: Fredfredbug4
Excellent guide! I hope to see more. Another downside to doing business in the State that I recently discovered is that the markets are saturated! There is a lot of competition making it hard to get into the market and even harder to stay there. This isn't just limited to megacorporations, but other capsuleers as well. There are people who will literally fight you 24/7 over one cent.

Watch_ Fred Fred Frederation_ and stop [u]cryptozoologist[/u]! Fight against the brutal genocide of fictional creatures across New Eden! Is that a metaphor? Probably not, but the fru-fru- people will sure love it!

Apollo Lyserius
Minerva Technologies
#4 - 2014-03-04 00:45:40 UTC
James Syagrius wrote:
As someone with a passing familiarity with trade I congratulate you on your project.

Such a project is long overdue.

It is surprising to me however that you didn't choose to start with the clusters largest and most vibrant economy.

But no matter, to each his own.



Thank you very much for your feedback, sir.

And the reason I didn't start with the Federation was to avoid being seen as biased. The Federation has fared quite well in its report, probably the best amongst Nation-States concerning business environment and investment opportunities, and as a Gallente citizen I didn't want to sound like I was promoting my nation through these reports. I may release it as the next one, though.

Apollo Lyserius
Minerva Technologies
#5 - 2014-03-04 00:54:37 UTC
Fredfredbug4 wrote:
Excellent guide! I hope to see more. Another downside to doing business in the State that I recently discovered is that the markets are saturated! There is a lot of competition making it hard to get into the market and even harder to stay there. This isn't just limited to megacorporations, but other capsuleers as well. There are people who will literally fight you 24/7 over one cent.


Thank you, sir.

And that is true. Jita markets are extremely competitive, making it very hard for starting industries to get any profit. That is, however, a positive aspect as competitiveness is good for market and overall growth - unless prices are appearing below the production costs, in which case it means some corporation or megacorporation is practicing illegal abuse of economic power. The Caldari Business Tribunal, however, seems quick to address such cases.
Noden Vorpalstar
The Knights of Polaris
#6 - 2014-03-04 02:14:59 UTC
Mr. Lyserius,

An interesting and very informative read. While I possess only a base knowledge of economics and trade, I have been looking for opportunities to expand that knowledge.

I look forward to the next edition.

Sincerely,
Noden Vorpalstar

Public Channel:  Polaris-Public Roleplaying Channel:  Gallente Lounge

Diana Kim
State Protectorate
Caldari State
#7 - 2014-03-04 08:36:02 UTC
Apollo Lyserius wrote:

  • [-] Historical factors and recent conflicts may create animosity towards Gallente investors. This can be easily worked around by hiring façade Caldari figureheads for proxy corporations and through investments on PR. On planetside level, however, this may be harder.
  • This is actually a positive key matter, since Gallente investors can't really offer to the State anything, that we don't have already. Besides, it cuts off negative gallentean influence on Caldari business.

    The most politically incorrect thing about this effort, is that it doesn't emphasize, that prosperous Caldari economy is grateful with its efficiency to our last leader, the greatest Executor Tibus Heth-haan.
    If investors don't respect Caldari hero, they don't respect Caldari culture and they don't respect Caldari people. We don't need such investors!
    We will do better without them!

    Honored are the dead, for their legacy guides us.

    In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

    Apollo Lyserius
    Minerva Technologies
    #8 - 2014-03-04 17:30:46 UTC
    Diana Kim wrote:

    This is actually a positive key matter, since Gallente investors can't really offer to the State anything, that we don't have already. Besides, it cuts off negative gallentean influence on Caldari business.

    The most politically incorrect thing about this effort, is that it doesn't emphasize, that prosperous Caldari economy is grateful with its efficiency to our last leader, the greatest Executor Tibus Heth-haan.
    If investors don't respect Caldari hero, they don't respect Caldari culture and they don't respect Caldari people. We don't need such investors!
    We will do better without them!


    That's a very unique point of view, Ms Kim, but one that is far from reality.

    First, Gallente investors are investors like any other - and the less investors the State receive, slower its economic growth. While the Caldari State was able to grow on par with other states before the capsuleer era, the scenario has changed too much. Without the substantial portion of investments coming from Gallente investors through capsuleer industry, the State would lag behind all the other three nations in growth and eventually fade out. See, the Federation is of the four the most welcoming to foreign investors - Caldari included - and it is the one growing the most.

    Second, Heth was a disaster for the Caldari economy - no wonder he has been kicked out by the commanders of Caldari economy. His radical politics scared away investors from all nations, his isolationism raised barriers to beneficial trade - with al nations. The results were a mild recession during his rule and slower growth since. Rumours are Caldari corporations have been working hard to attract Gallente, Minmatar and Amarr investors back after Heth's fiasco. See, on business to business level, political and ideological differences matter little and it's profit and growth that really count. Although business relations are affected by the political and military theathers, they stand on their own scenario.
    Jandice Ymladris
    Aurora Arcology
    #9 - 2014-03-04 19:39:23 UTC
    Thank you for this report, it's good to see how outside investors view the State and it's economical potential.

    Providing a new home for refugees in the Aurora Arcology

    Pieter Tuulinen
    Societas Imperialis Sceptri Coronaeque
    Khimi Harar
    #10 - 2014-03-04 23:15:22 UTC
    Apollo Lyserius wrote:
    Second, Heth was a disaster for the Caldari economy - no wonder he has been kicked out by the commanders of Caldari economy. His radical politics scared away investors from all nations, his isolationism raised barriers to beneficial trade - with al nations. The results were a mild recession during his rule and slower growth since. Rumours are Caldari corporations have been working hard to attract Gallente, Minmatar and Amarr investors back after Heth's fiasco. See, on business to business level, political and ideological differences matter little and it's profit and growth that really count. Although business relations are affected by the political and military theathers, they stand on their own scenario.


    Well, that's not entirely true either. The Caldari economy was stagnating due to the muddying effect of nepotism, prior to the Executor's rise. His militarisation projects and his ruthless quashing of the 'old boy' network certainly did wonders for the Caldari economy - sadly his influence was not as positive towards the end of his period in control, hence the rather overwhelming vote of 'no confidence'.

    Towards the end of his career he was siphoning money out of corporate coffers and driving the State towards economic ruin.

    For the first time since I started the conversation, he looks me dead in the eye. In his gaze are steel jackhammers, quiet vengeance, a hundred thousand orbital bombs frozen in still life.

    Apollo Lyserius
    Minerva Technologies
    #11 - 2014-03-06 10:09:31 UTC
    Jandice Ymladris wrote:
    Thank you for this report, it's good to see how outside investors view the State and it's economical potential.


    You are most welcome.

    Pieter Tuulinen wrote:
    Well, that's not entirely true either. The Caldari economy was stagnating due to the muddying effect of nepotism, prior to the Executor's rise. His militarisation projects and his ruthless quashing of the 'old boy' network certainly did wonders for the Caldari economy - sadly his influence was not as positive towards the end of his period in control, hence the rather overwhelming vote of 'no confidence'.

    Towards the end of his career he was siphoning money out of corporate coffers and driving the State towards economic ruin.


    That's a very interesting analysis, Mr. Tuulinen, one that deserves a proper verification. Thank you for your feedback.

    Diana Kim
    State Protectorate
    Caldari State
    #12 - 2014-03-06 12:56:04 UTC
    Apollo Lyserius wrote:

    That's a very unique point of view, Ms Kim, but one that is far from reality.

    Whom would judge it, but not an incompetent jaijii, so, next topic...

    Apollo Lyserius wrote:

    First, Gallente investors are investors like any other - and the less investors the State receive, slower its economic growth. While the Caldari State was able to grow on par with other states before the capsuleer era, the scenario has changed too much. Without the substantial portion of investments coming from Gallente investors through capsuleer industry, the State would lag behind all the other three nations in growth and eventually fade out. See, the Federation is of the four the most welcoming to foreign investors - Caldari included - and it is the one growing the most.

    Federation is a rotten wastebin, full of useless peoples doing useless business.
    Investitures in form of raw money could help the State, but it will also put the corporations into dependence from gallentean swines, which must be avoided at all cost. Caldari corporations are for Caldari !
    We have lived without gallenteans for thousands of years, we don't need them.

    Apollo Lyserius wrote:

    Second, Heth was a disaster for the Caldari economy - no wonder he has been kicked out by the commanders of Caldari economy. His radical politics scared away investors from all nations, his isolationism raised barriers to beneficial trade - with al nations. The results were a mild recession during his rule and slower growth since. Rumours are Caldari corporations have been working hard to attract Gallente, Minmatar and Amarr investors back after Heth's fiasco. See, on business to business level, political and ideological differences matter little and it's profit and growth that really count. Although business relations are affected by the political and military theathers, they stand on their own scenario.

    Annoying ignorant jaijii, the glorious and greatest leader Tibus Heth was the best what happened to the State in last two hundred years! Your disrespect to Caldari culture is unacceptable. I will look forward to delivering some Caldari Superiority into your ship by using of high grade Caldari Navy ammunition!
    I hope your crew will like it, and I hope, that a round will pierce a capsule to make a hole in your stomach before you will be brain scanned, so you will remember forever this feeling.

    And have a good jam.

    Honored are the dead, for their legacy guides us.

    In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

    Lucien Rouen
    #13 - 2014-03-06 16:07:32 UTC
    Fun report. When will the Federation one be up?
    Apollo Lyserius
    Minerva Technologies
    #14 - 2014-03-06 18:29:14 UTC  |  Edited by: Apollo Lyserius
    Diana Kim wrote:

    Whom would judge it, but not an incompetent jaijii, so, next topic...

    Federation is a rotten wastebin, full of useless peoples doing useless business.
    Investitures in form of raw money could help the State, but it will also put the corporations into dependence from gallentean swines, which must be avoided at all cost. Caldari corporations are for Caldari !
    We have lived without gallenteans for thousands of years, we don't need them.

    Annoying ignorant jaijii, the glorious and greatest leader Tibus Heth was the best what happened to the State in last two hundred years! Your disrespect to Caldari culture is unacceptable. I will look forward to delivering some Caldari Superiority into your ship by using of high grade Caldari Navy ammunition!
    I hope your crew will like it, and I hope, that a round will pierce a capsule to make a hole in your stomach before you will be brain scanned, so you will remember forever this feeling.

    And have a good jam.


    *Chuckles*
    That's why you're the pawn taking orders at the frontline, and not the king giving them from a penthouse in New Caldari, kiddo.

    Just remember next time you shoot a Gallente pilot that there's a high chance that your charge was funded indirectly by Gallente investors, in the same way that his next ship will probably be indirectly funded by a Caldari businessman.

    As trying to shoot me in my ship, don't bother. I only pilot from my labs to Caille and back. But you may take your chances next time I visit New Caldari to close a deal, and try to put a bullet through my head in front of all your superiors - and consequently ruin their profits in the name of Tibus Heth.

    Also - watch out for the Tier 2 modules you buy. I may have made them.

    Lucien Rouen wrote:
    Fun report. When will the Federation one be up?


    Quite soon, sir. I am right now making the final reviews and it should be here by monday.
    Diana Kim
    State Protectorate
    Caldari State
    #15 - 2014-03-07 10:30:28 UTC
    Apollo Lyserius wrote:

    Just remember next time you shoot a Gallente pilot that there's a high chance that your charge was funded indirectly by Gallente investors


    Killing subhumans with ammunition, they helped to produce, isn't it a nice demonstration of State's superiority?

    Honored are the dead, for their legacy guides us.

    In memory of Tibus Heth, Caldari State Executor YC110-115, Hero and Patriot.

    Apollo Lyserius
    Minerva Technologies
    #16 - 2014-03-07 13:18:30 UTC
    Diana Kim wrote:
    Apollo Lyserius wrote:

    Just remember next time you shoot a Gallente pilot that there's a high chance that your charge was funded indirectly by Gallente investors


    Killing subhumans with ammunition, they helped to produce, isn't it a nice demonstration of State's superiority?


    Of course not, silly, since the opposite happens quite as often.
    Apollo Lyserius
    Minerva Technologies
    #17 - 2014-03-07 15:02:51 UTC  |  Edited by: Apollo Lyserius
    Gentlemen, here is the Federation report. Decided to release it a bit earlier because I wasn't sure if I'd have time by monday.

    As always, feedback is welcome.

    Garoun Connections™ Magazine wrote:


    Gallente Federation - Executive Summary

    The Gallente Federation is one of the largest and most dynamic economies in the cluster. With a population second only to that of the Amarr Empire, a quality of life unrivaled by any other nation-state, and the largest market for consumer goods in the cluster, the Federation is a prime destination for investment by foreign corporations.
    Corporations from around the cluster, in almost every industry sector, sell their products and services into the Federation market either from a foreign base or their own directly owned operations. Many of these operations have flourished and continue to expand. New businesses from abroad continually enter the Gallente marketplace bringing with them new products and services.
    This guide will provide a great starting point for any investors thinking about doing business in the Federation.

    Some of the key matters to be aware of are as follows:
    [+] Stands for positive aspects
    [-] Stands for negative aspects
    No symbol stands for neutral aspects

    • [+] The Gallente Federation is a free enterprise system, with a large quantity of natural resources and a highly educated work force.

    • [+] The workforce in the Federation ranks as one of the best educated, most productive, and most innovative in the cluster.

    • [+] As a place to do business, the Federation offers a predictable and transparent legal system, outstanding infrastructure, and access to one of the cluster’s most lucrative consumer markets.

    • [+] The Gallente economy is also one of the most technologically advanced, with one of the largest numbers of research & development corporations and open research facilities. Corporations and capsuleers from around the cluster come to the Federation to invest in research and development in one of such facilities.

    • [+] The Federation has the strongest supply of venture capital. In no other nation-state will you find so much financial capital directed at high-risk, high-potential business.

    • [+] Due to the Federation's cultural and ethnic diversity, as well as its generally tolerant nature, foreign investments and enterprises are just as welcome as local ones by consumers.

    • [++] The Federal government welcomes foreign direct investment, providing equal treatment to domestic and foreign investors, while many planets and local jurisdictions actively compete to attract new business investment through a range of incentives and other support to help businesses set up. Planetary and local governments have become increasingly competitive in offering inducements to attract and retain desirable corporations for economic growth.

    • Prices in Dodixie, the Federation orbital market hub, aren't as low and competitive as in Jita, although they are in planetary market hubs such as Caille, Hueromont and Intaki.

    • Financial system centered around stock exchanges rather than banks, unlike in the Caldari economy.

    • [-] Tax burden higher than in other nation-states due to well-spread welfare state. Not entirely negative as the same welfare may keep consumer rates stable in short crisis.

    • [-] 'Bureaucracy traps' may occasionally slow down business. Although bureaucracy in the Federation tends to concentrate at politics, some of its effects may sometime affect business.

    • [-] Gallente stock markets are regarded by some as too unregulated, prone to influence from political, social and military events.



    For the complete report, please acess the Connections™ GalNet website.

    Lucien Rouen
    #18 - 2014-03-07 15:49:17 UTC
    Sounds about right, though I think it is worth mentioning that the multicultural and aesthetically developed aspects of its planetary hubs can make investment more enjoyable on a personal level.
    Bryen Verrisai
    Aliastra
    Gallente Federation
    #19 - 2014-03-07 15:57:58 UTC
    Astute analyses that are also quite well-written and easy to read. I look forward to viewing further reports from you.
    Fredfredbug4
    The Scope
    Gallente Federation
    #20 - 2014-03-07 16:36:31 UTC
    LOVE the Federation guide! However one thing you forgot to memtion is that the Federation has higher taxes due to our more socialized economy. While this does give us fantastic infrastructure and services, it does detract from profits.

    Watch_ Fred Fred Frederation_ and stop [u]cryptozoologist[/u]! Fight against the brutal genocide of fictional creatures across New Eden! Is that a metaphor? Probably not, but the fru-fru- people will sure love it!

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