1.8+Economic+System+Recommendations

**__ ESSENTIAL SERVICES THAT NEED TO BE PROVIDED… __**

In order for our island to be able to operate effectively, there are several essential services that we will need to provide to our residents. They are:
 * __Medical services__- we will need to be able to have adequate facilities such as x-ray machines and those needed for surgeries, and have medication available to people on the island that become sick. Building a hospital that provides these services will be of high priority. Dental and Mental help services will also be catered for in this facility.


 * __Waste disposal__ – we will need to ensure that we have constructed somewhere to get rid of our rubbish and faeces, as otherwise it will just build up and nobody will have anywhere clean to live.
 * __Trades__- we will need to bring people with us who are adept at particular jobs. Carpenters, plumbers and electricians will all need to be brought over in order for us to construct any of these services that will be needed.
 * __Shelter__- another critical aspect of survival on this island is the type of shelter we can provide to [[image:shelter.jpg width="94" height="91" align="right"]]people. Whether we are able to provide proper houses or just hut-like structures, shelter is a key component of island life and will need to be addressed immediately when we arrive.
 * __Water Purifier/Food Production Plants__- we will need to have somewhere to purify our own water so it can be bottled and distributed or feed through pipes to the residents. We will also need somewhere to organise, produce and ready for distribution any rice, crops, vegetables and fruits(bananas) that we grow on the island. As discussed in the PMI for Rice and Water, at the settlement located in C3-4, it is proposed that a water catchment is set up as a source of fresh water for the island. We are hoping that the surrounding rainforest will act as a natural filter however if this is not the case it will be necessary to create a treatment plant to ensure the water is clean and drinkable.[[image:wind.jpg width="136" height="70" align="right"]]
 * __Energy Plants__- by setting up wind turbines and solar energy panels we will need to construct a plant where we can store the energy. As the turbines and solar panels won’t be set up when we immediately arrive on the island, construction of this plant won’t be necessary straight away but should still be seen as a priority.[[image:townhall.jpg width="155" height="89" align="right"]]
 * __Town Hall__- a place where island meetings can be held and members can be informed of goings-on of the island. It may also be used as a forum for island members to raise any concerns or issues they may have.
 * __Government__- A governing body in charge of distributing our resources, making decisions about our islands future, keeping in contact with other countries and possibly [[image:edu.jpg width="118" height="87" align="right"]]charging a tax and using the tax for the good of the island.
 * __Education__- Schools may be initially used to train people for jobs needed on the island. Schools will then be necessary to educate the children to be effective members of the community on the island.

**__ WHERE WILL THE MONEY COME FROM? __** It would be hoped that the UN would view our recommendations as suitable and necessary and provide most of the funding for our plans for the island. Task Force has advised us that “the UN has established that it will fund the Island's initial settlement for a period of five years”. We predict that the essential services we have outlined above would all be completed within the five year period and therefore be able to be funded by the UN as the island would be able to sustain itself without these services. Initially, within the first year or two, the island will solely rely on the UN for funding as it will not be able to offer anything and generate its own incomes.  <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">As a possibility we could get sponsors to come to our island and create facilities while promoting their brands. For example McDonald's could build a hospital and it could be called the McDonald's Hospital or Pepsi Town Hall.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">**__TAXES__**

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">We propose a similar tax system to that of the income tax in Australia i.e. income tax is levied upon three sources of income for individual taxpayers: personal earnings (salary and wages), business income and capital gains. People would be taxed at a rate of 10% to begin with, this may be modified at a later date.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">**__AN ALTERNATIVE GOVERNMENT PROPOSAL__**

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">We are considering introducing a cross between a socialist and democratic economic system in which everything in commonly or publicly owned, including the means of production. Unlike a traditional socialist government, where everyone is equal, there would still be an elected body of government. Everyone must contribute to society in order to get their share of the wealth.

<span style="font-family: Arial,Helvetica,sans-serif;">**__ HOW ELSE COULD WE GENERATE INCOMES? __**

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Before discussing ways that we could generate income, it is important to realise that we would probably need to sell our goods at a cheaper rate than already established countries. Some ways we could generate income from the island is by:
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Producing more crops, vegetables or fruits than is necessary for those living on this island to exp[[image:veg.jpg width="117" height="102" align="right"]]ort it to other countries- although this may not be a viable option however due to the fact that other countries has been producing their own crops, vegetables or fruits for many years and would more than likely not require any of our product. We could sell them at a cheaper rate however, to try and entice people to buy from us.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">A big exporting product for the island would be bananas, which are available in abundance. Bananas will be a constant source of revenue as they mature quickly, with the first bunch available within 12 months and then a new batch available every 8-12 months after that. Statistics have shown that our banana bunches average 40kg and when we can export bananas at $994/tonne it is a great source of revenue. There is 907kg to a ton which works out to be just over 22 bunches meaning that with the size of our plantations we will have a large amount of revenue. Our current banana plantations on the island measure up to a total of 109.3 hectares.
 * <span style="font-family: Arial,Helvetica,sans-serif;"> Producing rice to export overseas may be a profitable option as during the drought many major producers of rice panicked about the prospect of there being a shortage. While thi[[image:rice.jpg width="134" height="115" align="right"]]s did not occur, prices inflated. Countries such as China and India are two of the largest producers of rice however export very little of it. This may be a gap in the market that we can fill.
 * <span style="font-family: Arial,Helvetica,sans-serif;"> The island may be able to create it's own beer. Tasmania does this, as do smaller countries or islands such as Fiji or Bali. "Beer is produced by the brewing and fermentation of sugars, mainly derived from malted cereal grains, most commonly malted barley and malted wheat. Sugars derived from maize (corn) and rice are widely used due to their low cost."(wikipedia, 2011, beer, para 1) It is the world's third most popular drink, after water and tea. If we [[image:beer.jpg width="143" height="118" align="right"]]sell this cheaply to other countries, people may be inclined to buy our beer. We may also be able to create social traditions for the island such as beer festivals, which may become a tourism attraction for those overseas.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">We would need to try and find the oil deposits that the island has in order to use this both for ourselves on the island and if the oil deposits are large enough, we could then sell the oil to the other countries, once again at a cheaper price than people already buy them for. There have also been whispers of minerals being on the island and we should also be looking at finding these to try and sell overseas.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Being abundant with volcanos, the island can also use things from the volcano to trade with other countries.[[image:volc.jpg width="144" height="97" align="right"]] Volcanoes (n.d) says that volcanic ash can be used as a natural resource in the construction industry. We can use stones for buildings that we can source from lava a tuffs. Fine-grained volcanic ash is used as a polishing compound, it can be found in toothpaste and household cleaning equipment. We can also mix the volcanic ash with cement to form strong materials that can be used in building. From the volcanoes we can also get pumice (used in exfoliants and to create pencil rubbers) and obsidian (used to create arrows), all of these uses means that our volcanic ash will be much sought after.

<span style="font-family: Arial,Helvetica,sans-serif;">**__ * __** - Digging into the island to try and find minerals and oil deposits will not be very beneficial to the island’s ‘health’ and will reduce the island’s sustainability. We will also need to be digging around the volcanoes, again, not a very sustainable way to guarantee income because eventually the supplies will run out and demand from the other countries may be greater than we are able to produce.

<span style="font-family: Arial,Helvetica,sans-serif;">**__ TOURSIM __**

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Many islands in the Pacific rely on tourism as a major source of revenue. For our island, tourism<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;"> may provide support for our economy by generating substantial foreign exchange and income, and creating employment opportunities. The island has many features that may attract visitors from abroad such sandy beaches, rainforests and wildlife. The island could cater for all types of holidays; relaxing, luxurious holidays, as well as adventure holidays where explorers can have a ‘Man vs. wild’ experience i.e. camp, live off the land and explore the island’s unsettled areas. This source of revenue would come many years down the track however, as the island would need to be running very efficiently and be self-sustainable already.

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">__Activities available on the island:__
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Snorkelling
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Surfing
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Jet skiing
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Hiking/guided walks
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Sailing
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Fishing
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Mountain biking
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Exploring volcanoes

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">__Polynesian Spa__ <span style="font-family: Arial,Helvetica,sans-serif; font-size: 110%;">Countries such as New Zealand have utilised the geothermic energy from volcanos to create a Polynesian Spa which<span style="font-family: Arial,Helvetica,sans-serif;"> attracts local and international visitors while also allowing people to tour the natural hot springs and mud pools. The geothermic energy is used to heat thermal spas while the mud and minerals found in and surrounding volcanos to create health and beauty products such as mud masks. Furthermore, the spa is internationally recognised as being environmentally conscious and sustainable as it uses geothermic steam to heat buildings and heat water for showers, among other things (Polynesian Spa Rotorua New Zealand, 2011). This may be another tourism attraction to consider on our island, after further research surrounding the volcano is conducted.

<span style="font-family: Arial,Helvetica,sans-serif;">__ Some ventures we could try to undertake a while after the island has been set-up effectively is try to: __
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Another idea could be to set up a casino for our tourism attraction as it would be a good way to generate income as rich tourists could come over and spend their money.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">Sponsorship by major brands. It sounds evil but is great publicity for them and it could be used to get major resources built. Telling companies that only they will be used will get us revenue; for example, allowing McDonald’s to be the only fast food restaurant, Pepsi to be the only soft drink or Cadbury being the only chocolate provider will generate money

__**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15px;">REFERENCES **__

Polynesian Spa. (2011). //Polynesian Spa Rotorua New Zealand//. Retrieved August 2, 2011, from [] Wikipedia. (2011) Beer. retrieved from http://en.wikipedia.org/wiki/Beer on 13/8/2011

<span style="font-family: 'Calibri','sans-serif'; font-size: 14.6667px;">Volcanoes, (n.d), Volcanoes: the advantages, Retrieved August 6th from: <span style="font-family: 'Calibri','sans-serif'; font-size: 14.6667px;">[]