Sovereign Natural Resources

How to make an economy efficient (cheap), cost of business and chess

One way to make an economy competitive is to make its main "ingredients" cheap.

Low Taxes
Low taxes reduce the cost of produced items and services.

Cheap Labour
Cheap labour reduces the cost of produced items and services, allow s more employment of labour intensive industries.

Cheap Energy
Cheap energy reduces cost of heavy industry, transport and logistics.

Cheap agricultural resources
Cheap agricultural resources reduce the cost of food for people, so ir creates demand for different goods and services.

Cheap mineral resources
Cheap mineral resources reduce the cost of industrial and chemical goods.

Cheap Plastics
Cheap plastics reduces the cost of goods in general, especially consumer goods.


In global competition large companies always look for the most favorable country to run business operations. Usually it's about cheap labour and low taxes. But a country could also be competitive if it reduced the cost of the main "ingredients". Too often base industries like utilities, mining, oil & gas are owned by private companies which try to maximize profits. But by maximizing their profit, they often make whole industries uncompetitive. In some cases, cap the cost of "ingredients" to cost price, could allow many other industries to flourish.
In many cases such a decision would make sense, strategically speaking: a bit like in chess, where it is encouraged to sacrifice low value pieces short term in order to win the game longterm.
Russia did this quite cleverly, where profits from sale of oil is capped at 42 USD/barrel, all excess is going to the sovereign National Wealth Fund which invests in more strategic projects for longterm economic growth.

Climate Change vs Sovereign Economic Model


Climate change is constant, as Earth is a living organism and things change, depending on solar radiation, earth axis(magnetic pole shifts) and eventual catastrophic natural disasters like volcanic eruptions which can severely block sun radiation.

But the biggest threat of climate change is as buzzword of a fear mongering narrative, which is used to scare people, and push big shifts in technologies, laws and taxes, and mostly to, reward or punish people, businesses and whole countries.

We already know that climate change will be used to disrupt trade, by taxing fossil fuel and other perceived "dirty" "non-green" natural resources. Probably there will be also taxes and regulation for countries and companies which are not perceived as "sustainable"or because of excessive greenhouse gas emissions. Taxes and wealth will be distributed to companies and countries which are in compliance. One can see the Tesla example which sells "green credits" to more conventional car makers.

I  believe that the Sovereign Economic Model is definitely the way to go for emerging countries, precisely for the climate change issue.
A nation has to take advantage of its land, natural resources and context, in order to satisfy the need of business, people and state.
So unreasonable impositions for climate change should be rejected if it imperils the sovereignty of the people and the state. Not every industry sector can be made in complete sustainable or clean way. And an country which gets industrial goods in a third country does not mean it is climate friendly, as the country also raises demands for goods because of consumption.

I believe the right way is both adopting the Sovereign Economic Model, but also try to protect the environment as much as possible, not as afterthought, a buzzword, but with technical tools and scientific effort.