PASSED: International Competition Law

[Funkaholics]

[...] Mathematania would like to further state that we find any law assuming that competition of any type has inherent value to be [...] de-evolutionary. [...]

I must say, honorable delegate of Mathematania, that you raised some strong points! But we are not sure how you came to the conclusion that promotion of competition is "de-evolutionary". On the contrary, we would say; competition is an essential part of evolution!

In our view, this proposal has enough merit to deserve our support. We do think that there are some issues that need ironing out, and we hope that a future version will deal with these issues. In the mean time, we believe that free market mechanics work best when the game is played by the rules, and that cheating should be discouraged as well as punished.

We will therefore support this proposal with our vote in favor.

Dr. Funkenstein
Supreme Funkapriest
Free Land of Funkaholics

[Viktors]

OOC: This is by far one of the most ignorant proposals I've seen thus far, I won't even debate this, I have no intention of halting any of my nations cartel operations, as they bring great wealth to the government. Again... Retarded proposal

[Jefe051]

This is not a stupid proposal, and I like that you are trying to make the market fair, but I don't think the World Assembly should have that much power. I cant vote for a bill that would grant even more power to a centralized government. The World Assembly is gaining too much control over peoples lives.

[Eluthrium]

The government of Eluthrium supports the proposal in-question. However, the foreign and finance ministries would also like to note that such a resolution would gain more broad-based support from the nations of the World Assembly if it were amended to apply solely to those countries with capitalist economic systems. As it stands, the International Competition Law would unfairly undermine the economic systems of those nations who choose not to organize their economies in a capitalist manner. Nevertheless, for capitalist countries, the proposed legislation has it merits and should therefore be approved.

Dr. Isaac Grey
Ambassador to the World Assembly,
the Most Serene Republic of Eluthrium

[Glen-Rhodes]

... By hindering the natural competition which is part of the business world, this measure only fosters weakness by propping up those who cannot compete.

I'm unsure how well many delegations in this body understand the basic principles of competition. Perhaps my writing as too cryptic with this resolution, or maybe many delegations are simply not reading hard enough. Or they simply don't understand that monopolies are antithetical to capitalism, free trade, fair trade, or whatever trade it is that you subscribe to.

The whole idea of the free market relies upon perfect competition, which entails absolutely no barriers to entry. For all that is placed in the laws of supply and demand, many delegations that have responded have a backwards view that there needs to be no regulation to ensure that economies are actually dictated by those laws, rather than by manufactured, fake versions. Monopolies are the exact opposite of what those delegations are supporting. Monopolies limit competition, introduce barriers of entry that are impossible to climb over, and distort the price equilibrium that is so sought after in free market economies. It makes no sense that on one hand there is support for a free market ran on the principles of perfect competition and supply and demand, and on the other hand an apparent protection of monopolies that work against those principles. Not that this resolution is a rallying-call for capitalism; I want to regulate international monopolies because they affect countries that have no power over them, not to turn nations towards capitalism. Neither do I want to turn nations towards any other economic system. I walked the middle line, here, believe it or not. The ITA could have easily had more authority and I would have been exuberant to give it to them.

First of all, this resolution doesn't address government monopolies because it can't. The World Assembly cannot ban government monopolies and I'm unsure to what extent it can even regulate them. Assuming that it could doesn't change things, either. Government monopolies exist to provide a needed service at no direct cost. Some may disagree with this, but the World Assembly is in no position telling governments that they can and cannot provide services for their citizens. A resolution regulating government monopolies would have to take into account that by nature there is price-fixing and by nature there is market division. Such a resolution would not be able to broadly issue bans and would have to tread carefully, ensuring that the entire purpose of the government monopoly is not totally decimated by a few over-eager laissez-faire proponents. All of that simply could never fit in ICL.

Secondly, I'm not at all convinced that the majority of the delegations even understand what a government monopoly is, yet alone could even explain the differences between a natural monopoly, a regular monopoly, and an anticompetitive monopoly. If the government maintains sewers, that is a government monopoly. If it provides healthcare, that is a government monopoly. If it picks up trash from the side of neighborhood streets, that is a government monopoly. The common factor in those are that they are done not only for the public good, but not in the interests of profit. That is the difference between a government monopoly and an anticompetitive monopoly. That is why there are two different rules and regulations. Are any delegations here honestly going to stand and say that government monopolies are in all cases evil and ought to be banned? I would pray not.

And inevitably, I am going to be told that not all monopolies are evil and ought to be banned, either. I agree absolutely. There are natural monopolies that exists simply because it's inefficient for them not to; e.g. power companies in Glen-Rhodes are granted legal monopoly status, because it would be unruly to have 25 different sets of power lines running through the streets and neighborhoods. There are monopolies that exist simply because there is no competition, rather than as a result of anticompetitive practices. Those are fine. They are not the subject of this resolution.

If nations want to operate under some kind of laissez-faire system, that is their right. But on the international stage, their actions affect nations that don't. The World Assembly exists to moderate the world. This is a perfect case where the World Assembly should be stepping in and leveling the playing field, making sure that the rights of one nation or not treaded on by the rights of another. I refuse to accept any other way.

Dr. Bradford William Castro

Ambassador-at-Large,
Permanent Chief of Mission for World Assembly affairs,
the Commonwealth of Glen-Rhodes

[Omega Uliza]

The Commonwealth finds something inherently wrong with this proposal. The very use of competitive means in a restricted manner no longer allows room for evolution but instead creates a stagnant system which will decay and find alternate roots to achieve the same effect. This is not a perfect society, and thus having not reached such a pinnacle of advancement, the continued evolution of all facets of society is still needed through creative means.

Prime Minister Pashki Zario

By the approval of His Royal Majesty Emperor Slyvus del Omegus Uliziano the III.

[Southron Nation]

monopolies are antithetical to capitalism

I beg to differ. Monopolies are inherently productive firms that best satisfy the needs of consumers. They only arise when a particular firm is capable of driving its competition out of the industry by being more efficient, more cost effective, and better serving the consumer. The moment the monopoly begins to raise prices, a competitor will enter the market in an attempt to get his own crack at the increased profits. Chances are that the newcomer will offer similar services at a cheaper rate, which will leach consumers away from the former monopoly, thereby destroying its chokehold on the industry. It is simple logic.

I want to regulate international monopolies because they affect countries that have no power over them

How do your regulations promote freedom of choice between countries when your legislation proposes that the individual gov'ts of the world are not responsible enough with their own laws and trade. That it is the responsibility of the WA to mediate the decisions of the citizens in individual countries. That is hardly freedom, dignitary. That is compulsion.

How would the WA decide what the optimal size is for a company? In what way would your regulators decide what the appropriate price level is? Is the WA so omniscient that it knows entrepreneurship better than entrepreneurs?

... the differences between a natural monopoly, a regular monopoly, and an anticompetitive monopoly. If the government maintains sewers, that is a government monopoly. If it provides healthcare, that is a government monopoly. If it picks up trash from the side of neighborhood streets, that is a government monopoly.

Your lack of consistency is astounding. You assert that it is the place of the WA to regulate international commerce in order to precent international monopolies because they would destabilize the natural order of things. The natural order being the order your legislation and the WA "regulate" into existence. But at the same time you state that gov't mandated monopolies are completely legitimate? Which is it, dignitary? Are monopolies evil and worthy of our contempt or are they for the good of mankind?

There are natural monopolies that exists simply because it's inefficient for them not to; e.g. power companies in Glen-Rhodes are granted legal monopoly status, because it would be unruly to have 25 different sets of power lines running through the streets and neighborhoods. There are monopolies that exist simply because there is no competition, rather than as a result of anticompetitive practices. Those are fine. They are not the subject of this resolution.

How is a legal monopoly status a "natural" monopoly? Would it exist without gov't intervention? Moreover, 25 power lines may, in fact, be efficient. How many neighborhoods have you witnessed with multiple lines providing power to families? perhaps the Smiths do not make as much money as the Whites and cannot afford the exorbitant prices the gov't mandated monopoly seeks to levy on them. A natural monopoly would be the company that most efficiently provides cheap and reliable power to as many families as possible, without gov't mandates.

The Southron Nation, after consulting our people, now consider this legislation an outright attempt by certain factions within the WA to assert more direct control over our economy. Our people can hardly be prosperous with a world organization leering over our shoulders, watching for any slip ups. This legislation would severely strain relations between the WA and the Southron people.

[Charlotte Ryberg]

For the record, The resolution International Competition Law has just passed 3,679 votes to 2,019, and implemented in all WA member nations. For my commentary, I must admit that this is a close vote but at least the local businesses are going to have a great chance at last. When Honoured ambassador Harper goes home, she is going to try and invite her fellow villagers to create a new computer building company and sell it to her home county, Medea.

[The Altani Federation]

I would like to state for the record that I agree with everything the honorable ambassador from the Southron Nation said, that the Federation is gravely disappointed that this harmful legislation has passed, and that we are glad we had the foresight to withdraw the Federation from this Assembly in favor of a representative "state" before such nonsensical legislation could affect us.

-Nikolai Nagashybyuly, Ambassador

[Omigodtheykilledkenny]

The Federal Republic joins its friend and ally the Altani Federation in pointing and laughing at all the nations foolish enough to remain in the World Assembly and thus allow this resolution to wreck their economies. This is why I keep tuning in to this show week after week: 'cause the stuff that goes on here is just so fucking ridiculous you can't believe it would actually happen. Misery for you, hilarity for us! Keep up the good work, guys!

- Sammy Faisano, Secretary of State

[Yelda]

This is why I keep tuning in to this show week after week: 'cause the stuff that goes on here is just so fucking ridiculous you can't believe it would actually happen. Misery for you, hilarity for us! Keep up the good work, guys!

- Sammy Faisano, Secretary of State

You watch this thing too? Ha ha! I thought I was the only one. My staff makes fun of me for watching and I told them "it's like a parody of the NSUN dressed up in the guise of a reality show". They still think I'm nuts for watching but I don't care, this is high comedy!

Quynn Olver
Foreign Minister

[The Altani Federation]

This is why I keep tuning in to this show week after week: 'cause the stuff that goes on here is just so fucking ridiculous you can't believe it would actually happen. Misery for you, hilarity for us! Keep up the good work, guys!

- Sammy Faisano, Secretary of State

You watch this thing too? Ha ha! I thought I was the only one. My staff makes fun of me for watching and I told them "it's like a parody of the NSUN dressed up in the guise of a reality show". They still think I'm nuts for watching but I don't care, this is high comedy!

Quynn Olver
Foreign Minister

We have to agree. My family's network subsidiary, NDRTv, has begun running its own version of this show, titled "Are You Smarter Than A Fifth Grader's Pet Yak". So far, the yak, named "Dimples", has a 35-episode winning streak. But we're confident the WA will win one eventually.

-Nikolai Nagashybyuly, Ambassador

[Glen-Rhodes]

I beg to differ. Monopolies are inherently productive firms that best satisfy the needs of consumers. They only arise when a particular firm is capable of driving its competition out of the industry by being more efficient, more cost effective, and better serving the consumer. The moment the monopoly begins to raise prices, a competitor will enter the market in an attempt to get his own crack at the increased profits. Chances are that the newcomer will offer similar services at a cheaper rate, which will leach consumers away from the former monopoly, thereby destroying its chokehold on the industry. It is simple logic.

Coercive monopolies do not gain their status through being the most efficient, most cost effective. They gain their status by cheating the capitalist system: fixing their prices, rigging competitive bidding processes, etc. A coercive monopoly will not allow a competitor to enter the market; they will decimate them the same way they do all competitors. That is the entire point of coercive monopolies. This is elementary.

How would the WA decide what the optimal size is for a company? In what way would your regulators decide what the appropriate price level is? Is the WA so omniscient that it knows entrepreneurship better than entrepreneurs?

You ought to direct your questions to the ITA, as they are the committee responsible and they would be able to give better, more detailed answers that I could. Monitoring international trade is their specialty, after all.

Your lack of consistency is astounding. You assert that it is the place of the WA to regulate international commerce in order to precent international monopolies because they would destabilize the natural order of things. The natural order being the order your legislation and the WA "regulate" into existence. But at the same time you state that gov't mandated monopolies are completely legitimate? Which is it, dignitary? Are monopolies evil and worthy of our contempt or are they for the good of mankind?

This is impossible to answer, when you insist on ignoring the fact that there are numerous types of monopolies. I believe I have already answered this question in my previous response, anyways.

How is a legal monopoly status a "natural" monopoly? Would it exist without gov't intervention?

It would help if you knew what a natural monopoly was. Natural monopolies exist when maximum efficiency is realized through a single seller. Generally, natural monopolies are given legal monopoly status when they are providing a public service, to prevent competition from entering and decreasing efficiency, which has a negative impact on the public. For example, it is common to see electricity and water services be provided by natural monopolies granted legal monopoly status.

Usually, when granted legal monopoly status, the government regulates the company.

Moreover, 25 power lines may, in fact, be efficient. How many neighborhoods have you witnessed with multiple lines providing power to families? perhaps the Smiths do not make as much money as the Whites and cannot afford the exorbitant prices the gov't mandated monopoly seeks to levy on them. A natural monopoly would be the company that most efficiently provides cheap and reliable power to as many families as possible, without gov't mandates.

I personally do not consider this efficient, but to each his own, I suppose.

The Southron Nation, after consulting our people, now consider this legislation an outright attempt by certain factions within the WA to assert more direct control over our economy. Our people can hardly be prosperous with a world organization leering over our shoulders, watching for any slip ups. This legislation would severely strain relations between the WA and the Southron people.

The international economy is not the Southron Nation's economy. The World Assembly does have the authority to regulate national economies, though. If this is disagreeable, Southron Nation is reminded that membership is voluntary.

Dr. Bradford William Castro

Ambassador-at-Large,
Permanent Chief of Mission for World Assembly affairs,
the Commonwealth of Glen-Rhodes

[Enn]

The Federal Republic joins its friend and ally the Altani Federation in pointing and laughing at all the nations foolish enough to remain in the World Assembly and thus allow this resolution to wreck their economies. This is why I keep tuning in to this show week after week: 'cause the stuff that goes on here is just so fucking ridiculous you can't believe it would actually happen. Misery for you, hilarity for us! Keep up the good work, guys!

- Sammy Faisano, Secretary of State

Strangely enough, Enn's economy seems to be far, far stronger under the WA than it was while the NSUN was around. Although our civil war and subsequent restructure of society* may have something to do with that.

Stephanie Fulton,
WA Ambassador for Enn

* OOC: Apparently, you leave the game for long enough, your nation gets reset to 'Inoffensive Centrist Democracy'. Which in my case has meant losing a lot of civil and political freedom ratings, but a massive, massive increase in the economy.

[Yelda]

The World Assembly does have the authority to regulate national economies, though. If this is disagreeable, Southron Nation is reminded that membership is voluntary

Foreign Minister Quynn Olver claps and hoots at the television, much to the amusement of the others in his office.

"Bravo! Bravo! I always enjoy his long-winded speeches where he condescendingly explains to someone how stupid they are then invites them to leave the show. Like any of them would do that! Ha ha! Man, this guy is good. I think he's my favorite this season."

[Glen-Rhodes]

(OOC: Because I'm definitely the first to ever do that. )

[Unibot]

Now: http://forum.nationstates.net/viewtopic.php?f=15&t=23224

Eduard Heir found himself in the General Assembly, sprawled on a desk naked over a colored 'twister' mat.

"Radical... man. International.. um, Competition." blabbed Eduard in intense embarrassment, as he walked out of the Assembly with the pace of a wild gazelle raised on angel dust.

A few hours before...

Eduard Heir looked both ways before sneaking one of the gnomes a large jug of 'cool aid',
The other gnomes hobbled over to him in curiosity as Eduard passed around brownies of questionable nature.

"FREE YOURSELF!" he screamed, as the gnomes giggled, choking from their sudden feeling of inexplicable happiness and cheer.

Accounts vary, but apparently they tossed and turned playing twister all night till one of the gnomes decided to try to fly out the window which ended badly to say the least.

Yet the night was young, and Doctor Eduard still had another tray of 'magic' brownies to prescribe.