Auroran Monetary Fund: Difference between revisions
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Pooling the resources of member states (the governments of which are its primary shareholders), it also raises private sector financial capital via preferential shares and bonds. Disputes between members undergo internal and external processes of mediation, arbitration and adjudication, ending with a decision by the Auroran Court of Justice. Though comprising two parts each led by its own [[Auroran Monetary Fund#Vice Presidents|Vice President]], the General Assembly (comprised of member states) makes the final decisions and appoints the [[Auroran Monetary Fund#President|President of the AMF]] who oversees and administers the daily running of the institution. Alongside, the [[Auroran Central Bank]], the AMF is one of the key financial institutions of [[Aurora]]. The AMF uses the [[Kirib]] as its sole currency.
== History ==
On December 8, 2019, Arana Marama, the Foreign Minister of the Oan Isles published an article on the Oan national news broadcast service OAN NEWS, calling for member states of the UNAC to use finance to foster peace through using finance to encourage economic prosperity<ref>Marama, Arana. 2019. ''Using finance as a vehicle for peace''. OAN NEWS. https://forum.theeastpacific.com/oan-news-t3208-s75.html#p219521</ref>. She discussed that bringing economic prosperity to the Kohatu Isles by investing in infrastructure allowed the Oan Isles to maintain political stability. Prone to internal conflict such as but not limited to the [[Auroran-Pacific War]] and the [[Auroran Imperial War]], she argued that the Auroran continent needed to encourage prosperity to prevent wars for all nations. In the article, it was pointed out that while trade encourages competition, entrepreneurship and technology transfer, infrastructure was crucial to facilitate it, and a lack thereof, puts member states at a disadvantage.
On the same day, the National Treasury and Foreign Department of the Oan Isles published a white paper titled ''Auroran Monetary Fund: A White Paper on the Implications, Aims and Mechanics of a Debt Coordinating Structure for the Auroran Continent'' in which they proposed how the Auroran Monetary Fund should be structured and how it should function.<ref>National Treasury & Department of Foreign Affairs. 2019. ''Auroran Monetary Fund: A White Paper on the Implications, Aims and Mechanics of a Debt Coordinating Structure for the Auroran Continent.'' The Oan Isles. https://docs.google.com/document/d/1TMF-IQCDGdKKYQwB72kh6Ar3GgZS_2o2SckZ9JmRAsg/edit?usp=drivesdk</ref> The original intent was for the AMF to focus on low-cost finance for infrastructure. Concerns were raised by member states that these financial models were not ideal and that welfare should be prioritised. On February 2020, a poll was conducted in [[Blueacia]] asking political parties if they supported or opposed the formation of the AMF.<ref>Trevisano, Adalgisio. 2020. ''Opinion on the AMF''. National Broadcasting Foundation. https://forum.theeastpacific.com/the-national-broadcasting-foundation-nbf-t3166.html#p224112</ref> Political parties were divided, hinting at the questions across the continent about the power this organisation would have and the proclivity for neo-liberal capitalist policy interventions that would yield unfavourable conditions for receiving states. Discussions on the AMF stalled.
On 13 February 2020, the [[Emperor of Polynesia]] [[Oahoanu]] opened the Oan National Assembly and delivered the Speech-from-the-Throne. In this speech, discussed how the Oan government would resume the process on the AMF. In the same month discussions resumed and the Oans published a revised discussion document titled the ''Auroran Monetary Fund Discussion Document''.<ref>National Treasury & Department of Foreign Affairs. ''Auroran Monetary Fund Discussion Document''. The Oan Isles. https://cdn.discordapp.com/attachments/711632856740528179/814164894634213376/AMF_Discussion_Document-1.docx</ref> Member states were more supportive of the revised format with the AFSF being included to provide the welfare issues and how policy making would be revised to protect the poor. Following extensive discussions, the AMF was passed by UNAC member states and came into force on 1 March 2021.
==Purpose and function==
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* Bonds give the bondholder a fixed repayment in the form of maturities according to the conditions of the bond-certificate. Usually bonds are payable regardless of the financial performance or position of the AMF, unless bondholders are willing to accept revised bond-certificate conditions through accepting a different (which they are not forced to).
The AMF may not invest money in equities unless the GA agrees to convert a loan repayment to an equity swap. The AMF is not an investment management firm, instead it is a last-resort source of finance to help nations navigate financial distress or access economic opportunities.
== References ==
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