ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES - With an oil crisis on the rise, many petroleum-exporting countries are finding it harder and harder to stay afloat in a sea of expensive production.
Investments are a key part in keeping up the economies of petroleum-exporting countries, and each country has their own needs to of investment to fulfill. The delegate of Malaysia presented a country with a diversifying economy-an economy that requires investments from other countries to continue diversification. The delegate of Mexico suggested investments from China-especially since China’s introduction of new firms and more efficient technologies has proven to boost the economy and to lower the unemployment rate. The delegate of Nigeria also requires investments, but wants regulations of investments so that countries are not mindlessly pouring money into countries wanting investments. The delegate also encourages the creation of local jobs into the invested infrastructure instead of bringing in foreign workers. The delegate of Oman also agrees-foreign investment should be encouraged, but the impact this will have on local businesses should also be discussed. The delegate of Saudi Arabia has come to an understanding: “countries are afraid to invest because they are afraid that their money won’t be returned”. The delegate introduced the idea of an equity buyback agreement-allowing countries such as the United States of America to invest without a fear of lack of profitable return. The delegate of Norway has a similar idea: countries can invest by buying shares and help countries in an oil crisis by stimulating local growth.
From the investing countries, direct investment seems to be favoured over indirect investment. The delegate of China believes that his country has the technology, manpower, and knowledge to invest and help countries in building infrastructure to boost their economy. The delegate of Russia is also willing to invest in fellow countries, and has the money to invest in renewable resources. However, the delegate also posed a question “If all of our investment is solely direct and bilateral, how do we guarantee that [the countries] will have enough investment to be happy?” The delegate of the United States of America believes in investment in both infrastructure and sustainable energy. “If [petroleum-exporting] countries are unable to cut down production costs, [they] will fail and will be unable to run.”
Investments are a key part in keeping up the economies of petroleum-exporting countries, and each country has their own needs to of investment to fulfill. The delegate of Malaysia presented a country with a diversifying economy-an economy that requires investments from other countries to continue diversification. The delegate of Mexico suggested investments from China-especially since China’s introduction of new firms and more efficient technologies has proven to boost the economy and to lower the unemployment rate. The delegate of Nigeria also requires investments, but wants regulations of investments so that countries are not mindlessly pouring money into countries wanting investments. The delegate also encourages the creation of local jobs into the invested infrastructure instead of bringing in foreign workers. The delegate of Oman also agrees-foreign investment should be encouraged, but the impact this will have on local businesses should also be discussed. The delegate of Saudi Arabia has come to an understanding: “countries are afraid to invest because they are afraid that their money won’t be returned”. The delegate introduced the idea of an equity buyback agreement-allowing countries such as the United States of America to invest without a fear of lack of profitable return. The delegate of Norway has a similar idea: countries can invest by buying shares and help countries in an oil crisis by stimulating local growth.
From the investing countries, direct investment seems to be favoured over indirect investment. The delegate of China believes that his country has the technology, manpower, and knowledge to invest and help countries in building infrastructure to boost their economy. The delegate of Russia is also willing to invest in fellow countries, and has the money to invest in renewable resources. However, the delegate also posed a question “If all of our investment is solely direct and bilateral, how do we guarantee that [the countries] will have enough investment to be happy?” The delegate of the United States of America believes in investment in both infrastructure and sustainable energy. “If [petroleum-exporting] countries are unable to cut down production costs, [they] will fail and will be unable to run.”