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Victoria 3 - Dev Diary #110 - Building Ownership & Foreign Investment

16_9.png

Hello and welcome to another Victoria 3 Dev Diary!

After last week’s look at Power Blocs, we are going to take a look at another major set of changes that are going to arrive with Sphere of Influence and the free 1.7 update.

Namely, a revision of the Building Ownership system and what it allows us to do: Foreign Investment, a much requested feature which makes its debut in 1.7.

You will see that the changes we are making impact your visibility of ownership and the affected Pops throughout the game.

To understand all the mechanics we will be looking at an example country in the heart of Europe.

Ownership types​

It’s 1836. In Bavaria, a proud member of the Zollverein Power Bloc, all buildings are owned by the state or the workers themselves.

Capitalists, Aristocrats, and Clergymen no longer work in these buildings, and most of the Shopkeepers no longer work in production buildings directly. In addition, the Ownership Production Methods have been removed. Instead, ownership works on a per level basis, allowing a mixed ownership structure in the same building.

A popular Logging Camp it seems. Workers, a Financial District and a Manor House own a part.
DD110_01.png

In worker-owned buildings employees work for themselves basically. So any dividends they may accumulate, they split amongst themselves. This is the default at game start for many countries (not all) and is a state which you can more or less return to at a later stage of the game with the enactment of Cooperative Ownership, which will expropriate your privately owned buildings over time.

One major exception from the ownership situation at game start are subsistence farms which are owned by a new building we are introducing: Manor Houses.

Now they lounge around in luxury, instead of slumming it with the common folks in less refined taste buildings, we wouldn't want their shoes to be dirtied on a subsistence farm!
Manor Houses are able to own levels of other buildings, in our case at game start all the levels of Subsistence Farms in their own states. They pay their wages and dividends by collecting dividends from the buildings they own and distributing them among their employees.
What type and how many employees they have is determined by a limited set of PMs.

Clergymen or Aristocrats? You can’t get rid of both of them!
DD110_02.png

So you can see there are still jobs for Clergymen. What about the Shopkeepers and Capitalists?
Well, they work in the new Financial District buildings, which behave pretty much like the Manor Houses. They too have different employment PMs, can own levels of other buildings and pay their employees by collecting dividends from owned building levels.

Both new buildings expand automatically, depending on how many levels they own. For example if a new level of a privately owned factory is created, a corresponding new level of a Financial District is also generated.

All building levels that you construct are country-owned. Under certain laws, this status can change soon after they are finished constructing. Country-owned buildings come with reduced Economy of Scale bonuses and a bureaucracy cost for each level you own. But in return they can provide additional income based on the building’s dividends which partially get transferred to your treasury.

Not all buildings can be of any ownership type of course, for example barracks or government administrations will always be country-owned.

Summing up, there are now three types of ownership for any building level:
  • Worker owned
  • Privately owned (Financial Districts and Manor Houses)
  • Country owned

If all buildings in Bavaria are owned by the workers or the country itself, how do the first Financial Districts appear, you may wonder!

The main way to get that to happen is the next point on our agenda.

Privatization​

Enter Privatization, whereby you allow country-owned buildings to be sold to Pops.

If you are short on cash, Privatization might help you
DD110_03.png

This makes it possible for your Pops to acquire them. Depending on the type of building you are privatizing, they usually get bought either by Aristocrats or Capitalists, using the investment pool’s funds.
If you don’t have any capitalists in your country yet, other Pops may step up though, using the investment pool’s funds to buy a building you put up for sale and become Capitalists in the process, which in turn leads to the first Financial District appearing.

The money will be transferred from the investment pool to your country’s treasury once that happens. The cost of buying a level is determined by its construction cost and is modified by most of the Economic System laws. These laws also affect the efficiency of these transactions, meaning how much money is lost as overhead and how much is being reinvested into the investment pool or the treasury.
One particularly interesting law is Laissez-Faire which upon enactment forces all your country-owned buildings to be put up for sale and will automatically do so for every new building level you construct. Similarly, enactment of other laws like Cooperative Ownership and Command Economy doesn’t immediately change the ownership of all buildings, but rather can start a process that can convert your economy over time.

Insert witty joke about the free market here
DD110_04.png

Now let’s take a look at how the different ownership model affects investments from your Pops.

Investment​

The existing logic for how the private investment pool works remains similar to before. So, different Pop types still have different priorities and they will look at factors like estimated productivity, available workforce etc.
When a building is about to be constructed by private investment, we randomly determine who is building it, favoring already existing Financial Districts and Manor Houses over creating new ones.

In a worker-owned economy, the private investment pool will continue to function, but they will only expand their own buildings, not create new ones.

An important fact with this system is that investments do not need to be local. A Financial District or Manor House can invest in any of your country’s states, including your colonies overseas.
This system will create a flow of money from the colonies to your homelands, a stronger centralization of wealth and power and it will end the status of colonies’ Pops making more money than your Pops at home.

Of course the non-local investments also come with some challenges with regards to other countries.

It looks like Prussia has heard about that option and has started investing in your country!

“First they took our chairs, then the tables we used to eat at. What’s next? Our beds?!”
DD110_05.png

Foreign Investment​

There are a few ways to acquire Foreign Investment Rights.

First of all, overlords can always invest in their subjects. This is part of the free 1.7 update and will allow you to do Foreign Investment where it matters the most, even if you do not own Sphere of Influence.

Then there are three diplomatic pacts which you can use if you have bought the expansion:
  1. Mutual Investment Rights which allows both countries to invest in each other
  2. One-directional Investment Rights in either direction, so you either demand to be allowed to invest in their country or offer another country to invest in yours

The [redacted] has been [redacted]. We shall see its effects on the 11. of April.
DD110_06.png

There is also a Power Bloc Principle group that deals with Foreign Investment which on Tier 3 has the consequence of being able to invest in any member country.

No matter how you got the Investment Rights, you and also your Pops will be able to invest in the target country. Private investment does consider foreign states as potential targets for their expansions, allowing them to build profitable buildings more easily.

As nice as it is that Prussia has invested in new buildings in Bavaria, I don’t think we can let them get away with diverting the profits to Berlin instead of our own population!

Nationalization​

Nationalization allows you to take control of foreign assets in your country. You cannot nationalize other countries’ assets as long as they possess Foreign Investment rights in your country.

Once that is no longer the case, e.g. if Bavaria left the Zollverein Power Bloc, you can peacefully nationalize their building levels in your country. For that you need to pay a sum of money from your treasury. Similarly to Privatization, the sum is determined by the construction cost + modifiers from laws.

You will also be able to nationalize your own Pops’ building levels, both worker-owned and privately owned, if you’d like to take ownership. Nationalization is not seen positively by the affected Pops of course and will radicalize them.

“We should compensate them to reduce the quarrels.”
DD110_07.png

But what if the Bavarian coffers are empty yet you still want to take over that juicy productive Furniture Manufacturies that is owned by Prussia?

Well, there is always an alternative.

“Pay them? I don’t think so!”
DD110_08.png

You can demand nationalization of a country’s assets in your country. If they accept, their building levels’ ownership changes to your country. If they don’t, you can try and enforce it as a wargoal. If you are successful, you will also remove their Foreign Investment Rights for your country in addition to taking control of their buildings in your country.

Building Registry​

To visualize all these new mechanics, we are introducing the Building Registry, which allows you a customizable look at your country’s situation.

All the building data one could wish for
DD110_09.png

This is a major new UI, that similar to the Census Data window, comes with a lot of functionality to filter the available data. Only show buildings outside your country? Sure. See all buildings that are owned by Pops and which are currently not hiring but not fully employed? No problem.

Lots of filter groups to browse through
DD110_10.png

We hope you find this as useful as we do. You can access it via the button on the bottom of the Buildings panel.

Really recommend pressing that button
DD110_11.png

Implications for the Directly Controlled Investment Pool Game Rule​

As you can imagine, this new system of ownership, geographic wealth extraction, and privatization/nationalization has far-reaching implications on the economic foundations of Victoria 3. It enables a lot of interesting dynamics we haven't been able to model until this time and adds a whole new dimension to your economic laws.

It also comes with the consequence of making the Directly Controlled Investment Pool game rule that we introduced with 1.2 (as a legacy alternative to the new Autonomous Investment system) impossible to maintain. In 1.6 and prior, if this game rule was turned on, the player would be directing all construction efforts. As long as there was money in the investment pool and the construction queue was building a privately-owned building, the cost of construction goods would be coming out of the investment pool first before being carried by the state budget. With the new rules for building ownership, investment rights, and so on in 1.7 this no longer makes sense - there's now a very clear distinction between a building project initiated by a private investor and the state, a potential source of conflict innate to both foreign ownership and the privatization/nationalization mechanics, and even differences between owners in different regions that cannot be represented if all construction projects were player-initiated.

Because of this it no longer makes sense for players to be in charge of both public and private investments simultaneously, and as such the Directly Controlled Investment Pool rule has had to be removed for 1.7 and beyond. While we can't support non-default game rules to the same degree as the standard options, removing a game rule completely is not something we'd ever do without good cause. We know that a smaller fraction of you favored this setting so we want to be clear with why its removal was a necessity to move forward with these improvements to ownership and foreign expansion.

Outlook​

I would like to end today’s Dev Diary by providing a short outlook for what these changes also enable us to do in the future.

The main thing here is affecting Companies.

The way we have reworked ownership allows us to create Company headquarter buildings which can then own specific building levels of industries they care about, determining its profitability from and providing their throughput bonuses only to these. While we cannot provide a concrete timeline for that change at this point, it is something we would like to tackle for one of our next free updates.

That’s it for today. Check back next week when Mikael is going to walk you through what changes 1.7 and Sphere of Influence brings to relations and interactions between Overlords and Subjects, including how these foreign investment mechanics relate to your grip over your extended empire.

Overview for all upcoming Dev Diaries:
Date Topic
4th AprilSubject Interactions
11th AprilLobbies and More on Power Blocs
18th AprilThe Great Game
25th AprilThe Art of Sphere of Influence
2nd MayChangelog 1.7
 
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This comment has been reserved by the community team for developer responses!

Why is "worker-owned" the default in 1836? Which industries, factories, and plantations were worker-owned in 1836? I don't get it.
"Worker-owned" also covers the artisan economy and things like small landholders on farms, but the vast majority of farms and plantations will be owned by aristocrats.

Just to be clear: the private investment pool may be used by the AI to fund the creation of wholly new buildings in foreign countries, right? That is, we don't need to wait for that country to build something and then put it up for sale.

Does this mean that this may create situations in which capitalists might prefer to invest in foreign, more profitable enterprises, instead of on your own territory, generating employment overseas but not at home? That would be a really nice consequence.
Correct.

So merchant guilds now count as worker owned - it just means pops in it expand only its own building.
It does NOT mean that all pops get equal share.
Yeah, worker-owned does not mean equal dividends for everyone.

When Command Economy forces all your buildings to be nationalize, what will happen to oversea investment ? Will our capitalists try to escape with their treasures?
Command Economy does not actually make this instant on enactment anymore, you have to actively nationalize non-state owned buildings after enacting it and either compensate the owners or seize them by force. It's also possible to simply leave some vestiges of a private economy in place (though it won't grow).

Very interesting. However, I'm wondering, with laissez-faire enacted, every building the state chooses to build will be bought by aristocrats or capitalists, right ? But what will happen if they don't have enough money to buy the building ? Or maybe I misunderstand something.
The building is put up for sale immediately on construction and counts as state-owned until it is purchased. So you'll have some buildings temporarily managed by the state until an investor snaps them up.

How does the private sector decide whether to devote funds to new construction or towards buildings "on the market" for purchase?
They use somewhat different score calculations, with a very heavy emphasis on potential profit for privatization. Generally speaking privatization of profitable buildings has the highest return on investment, so is what they'll often do first if possible, but it's not guaranteed or anything.

Can I just confirm:
1) If i invest in oil fields in Persia as Russia - do i get access to that oil in Russian market or does it stay in Persian market and my pop just gets the cash dividents/wealth?
The latter. You'll have to trade for it or be part of the same market to access the resource.

How does the AI handle this? If they go communist and enact Command Economy will they actually nationalize private industries or just leave them be and build state-owned industries going forward?
The AI should generally want to nationalize as much as they can under Command Economy, exactly how they handle it depends a bit on their strategy though.

One of the most anticipated features I had hoped for Vic 3 is here! Praise be, a big thanks to the developers here for listening to our main concerns!

How will the AI countries cope with these new mechanics, will they in general be more willing to build more resources etc? How will they act in terms of nationalising or privatising?
Thanks :)

On your question, as Martin wrote:
"They use somewhat different score calculations, with a very heavy emphasis on potential profit for privatization. Generally speaking privatization of profitable buildings has the highest return on investment, so is what they'll often do first if possible, but it's not guaranteed or anything."

I don't believe there's a change with regards to investments specifically in resources, but you should probably see it being a bit more developed inherently since you generally have more possible actors that could invest in it.




Good afternoon,a great DD and can't wait to play it and to mod the system as well.However,i have a few questions:
1)Regarding the new investment pool,will it still be possible to define triggers for what the private pops investors can build,such as the way it works like when the Opium is banned in Vanilla current version?
2)How moddable ownership pms of Manor Houses and financial districts will be?
3)Will there be effects for changing ownership by event or things like this?
4)Can we add ownership by Manor Houses and Financial Districts for modded building as well?
Thanks for any replies about this.
1) Should remain the same as far as I know
2) Like any other PM
3) Yes, I believe so
4) That should be possible, yes. There's a list like this which you should be able to include own modded buildings in:
investment_scores = {
bg_manufacturing_score = {
group = "bg_manufacturing"
score = {
value = 80
}
}
bg_modded_building_score = {
group = "bg_modded_building"
score = {
value = 20
}
}


We can sell buildings to aristocrats/capitalists, but can we sell or just give them to the workers instead? Or does that require Cooperative Ownership?
Currently no functionality to just give them building levels outside Cooperative Ownership where they'll just take them, but that sounds like a potentially neat addition for the future.

Would that be different depending on various factors, or the worker-owned dividend ratio is set in stone?
Right now it's based on relative pay, but I'd like to add some differentiation for cooperative ownership vs artisan buildings there.

Question: When worker-owned buildings expand themselves where does the money come from? Investment Pool or the building's own cash reserves? I assume this would use the private construction queue either way.
Investment Pool.

This looks very, very good.

Two things:
1. Isn't a bit odd that even developed economies like Britain start as an economic terra nullis, with all capital in the hands of labour?
2. Don't these two sentences conflict with each other? i.e. pops can invest but don't consider foreign states as potential targets?
1. The example was specifically for Bavaria. Great Britain does start with a bunch of capitalists.
2. You misread, they DO consider them as targets.

Loving this!

Can a country refuse a peaceful nationalization? Is there a way to prevent it, via obligations, humiliations, and the like?
Can nationalization be demanded as a separate war goal, instead of the primary one?
1. Currently there's no refusal for peaceful nationalization, except having investment rights
2. Yes, you can demand it as a separate war goal

Will you be able to build railroads in other countries?

How will the game distinguish different production methods for foreign owned buildings/private and public owned buildings in the same state?

Will there be anything regarding ownership of foreign trade centers? Historically custom houses were confiscated from debtor countries, being the first step as a way to vassalize and eventually absorb them.
Yes, you can build railroads in other countries if you have Investment Rights.

The game does not distinguish between production methods. There is always one PM active for a whole building, no matter who owns how many levels. The controller of the country where the building is located also controls the PM that is active.

Nothing on foreign trade center ownership for the time being at least. Sounds cool, but that would require some fairly drastic changes to how trade centers are generated etc.

Very interesting, however , while it's probably a balance thing, It feels weird that we have to wage a war to confiscate assets in our territory, it would make more sence if after trying to nationalise, the other country would be able to attack the nationalising one, to enforce its reparation+keep its factories.

Imagine a communist revolution in Russia, I don't feel like they would need to take London in order to get ownership of some british canned pork factory
Few things I'd like to point out. The wargoal's use is likely ending up as the separate war goal more often than being used as a primary one. So you'd throw it onto other diplomatic pacts I'd imagine.
The war goal is also not going to be the primary way of nationalizing another country's assets. The most used for this will likely be cancelling their investment rights, then using the nationalize button and paying them (or not, suffering consequences to relations and radicals and such).
The "casus belli" idea you're pitching does sound cool though. Not quite how we thought about this and would require some work, but maybe something like that could work in the future.

Can pops downsized privatized buildings ?
Yes.
Buildings with several unstaffed levels and that are at least 50% privately owned, can autonomously reduce their privately owned levels if they fail to hire for an extended period of time.

Will there be already invested levels of buildings at the start of the game? For example British and Dutch Indian colonies?
Yes, we are including some kind of setup where that is the case. Just a small disclaimer: It's surely not going to be fully historic, especially not in all countries, but we're rather working with guidelines on how to distribute ownership buildings etc.
This is something we can easily tweak over time like any of our other historical setup attributes, e.g. resources, starting buildings, laws and so on.

I'm wondering about subjects like the EIC or the formable African colonies, this will be great to solve the issue of never having enough accepted pops for owners to fill the rest of the workforce but also, does this means they won't be able to fill a financial center? SHOULD they have financial centers or should their buildings be auto-sold to their overlord?

I'm also wondering about being able to auto-sell in interventionism or co-op. You do build quite a lot of stuff especially as the game goes on, hope it's not much of a chore to sell all that manually.
Ideally, the colonies have a small privately-owned sector I'd say. But then they'd mainly build government owned buildings which do not require a financial district.
Maybe we could expand our laws to define what happens to these buildings in the future.

Auto-sell sounds like a neat idea, yes. Not coming with release, but I'm taking a note.

Simply amazing DD! I’m extremely hyped for this!

By the way, when a foreign country owns buildings in my country, I’m assuming the production output is kept nationally, and the profits are sent overseas, no?

If that’s the case, will there be any way to tax some of these profits?
Correct, output stays in the country, profits are sent overseas.

Do you mean you'd want an additional tax specifically for profits made outside your country? Because of course any profits are taxed the usual way your country does taxation if the law applies, e.g. income, no matter where their income is coming from.

Amazing, this is really transformational! I am looking to play with it.

have you encountered the situation that your wealthy pops prefer to invest overseas than in your nation?

Can owners disinvest from one building if it is running a deficit? How often will they do it?

Thank you! very bold move
Depending on the circumstances, yes it can happen that they prefer investing outside. But I wouldn't say it's the default.

As I mentioned in another reply:
"Buildings with several unstaffed levels and that are at least 50% privately owned, can autonomously reduce their privately owned levels if they fail to hire for an extended period of time."

Would a more accurate term for country owned be "state owned" because it is the state who exists as a legal entity and who can own things?
Yeah, possibly.
One thing we wanted to avoid is that people don't get confused with the state that the building is located in. There's no ownership by Normandy, Picardy and Burgundy, only French is what we wanted to make clear. :D
If you want to call it state-owned you're welcome to do so and we will understand.

Is it possible for the government to buy private owned buildings? How will subsidies work, the same as before?
1. Yes, that's nationalization :)
2. Subsidies can be set by the country where a building is located in. So no subsidies from foreign owners in building levels in your country.

R.I.P Direct Investment option.
Not that it stops anyone from modding private allocation to 10% for all economic systems :D

What happens if I eat state with manors or financial centers? Do they relocate or do they accept, that they are in new country even if discriminated now?
If communist nation eats state with manors/financial centers, then all employed capitalists/aristocrats become unemployed?
Can they relocate?
Generally, aristocrats and capitalists will stay where they are even if there's a new owner. They didn't move before, so why would they move now?
If they own levels in your country, you can of course nationalize them or their assets might get expropriated over time and transformed into worker-owned buildings (laws depending). If they own levels outside your country, nothing really changes for these. Manor houses and financial districts are never country-owned after all. They just spawn if pops of your country own buildings somewhere basically.

I have a few questions:
1. What determines which "ownership building" owns a building when it's built? Does each building have it's own individual investment pool?
2. Is there any way for me to favour one set of owners over others? EG, can I only sell buildings to financial districts in my capital, instead of owners located overseas? Or prevent Aristocrats owning the best buildings?
3. Is there a way for building levels to be transferred between owners other then through privatization/nationalization? EG can my capitalists by lumber camp levels from the lumber camp employees?
4. is there a way for me to "selectively nationalize" building levels? EG I have lumbercamps, with 1 level owned by the workers, 2 by local financial district, and 3 by foreigners. Is there a way to only nationalize the 3 owned by foreigners?
5. Besides generating a wargoal, does nationalisation interact in any other way with diplomacy, eg by generating infamy?
6. Who gets the dividend taxes from foreign owned buildings? The country where the owner is, or the country where the building is located?

Click to expand...
1. Briefly mentioned it in the DD: there's a weighted random function in there to determine the owner since they all access the same shared investment pool
2. No concrete decision currently, no. But the investment preferences do apply, so aristocrats are a lot more likely to buy farms and plantations etc.
3. Not at this moment
4. Also not currently possible, except for the wargoal which will nationalize all assets of target country that are located in yours. We have talked about it in the past and will consider adding a better selection in the future.
5. If you enforce the nationalization wargoal, there is an infamy hit, yes
6. Where the owner is

Like.

What does "Furniture Manufacturies in Franconia" under "Owners" mean. Are those levels owned by workers?
Yep, that's exactly it.

Does privatization automatically sell to capitalists/aristocrats or can it make worker owned industries too?
Not creating worker-owned industries, no.

What will "Mutual Funds" unlock now?
A different PM for Financial Districts that shifts workforce more towards Capitalists and away from Shopkeepers (without fully removing them).

How does traditionalism work?

1711648151970.png



Of course as always, take it with a grain of salt. Everything you're seeing in the Dev Diaries is subject to change until release. Might change, might not.

Who will pay Construction in Foreign Invesrment?
The country that is constructing a building. So if GB invests, they pay for the cost until it's completed. Then, basically all control (PMs, subsidies etc.) goes to the target country.

How will the player be able to interact and purchase building levels in a subject? For example if I'm GB how do I purchase opium plantations in EIC at game start?

After I've then purchased these buildings, say I decide to then auction them off, will they be purchased by my own capitalist's or by EIC private ownership?

When I buy a specific building as a government from private ownership, where does that money go? To the individual pops? They don't have bank accounts for such a large sum of transfer?
You don't buy their buildings. You can nationalize building levels in your own country. You can construct new buildings in their country. If you privatize buildings, any Pop with investment rights in the target country can buy it, so it could be your own Pops or the local population.

If you nationalize a level, the money largely goes to the investment pool (depending on laws).

How does my country get its first capitalists, if the economy starts entirely agrarian and artisanal?
It's mentioned in the Dev Diary :)

"If you don’t have any capitalists in your country yet, other Pops may step up though, using the investment pool’s funds to buy a building you put up for sale and become Capitalists in the process, which in turn leads to the first Financial District appearing."

Will foreign investment pools with access to our country be able to buy buildings that are up for privatization?
Yes


Thanks, but you can just call me Lino or H4n1baL :)


I can appreciate that this may have been done for technical reasons, but it feels somewhat incorrect that this isn't dictated by the majority owner. I'd also have expected some way for technologically advanced states to invest into a lower tech state and use their advanced technology to operate more efficient industries (especially in resource extraction) which clearly won't be possible if the controlling state is the one making the decision re: PMs
Yeah, we have actually investigated splitting PM ownership but it's really complex.
Maybe one day :crossed_fingers:

Yeah, this is how this works now.
When will this change?
Not in the near future. We've investigated it during development and it comes with a lot of difficult problems.

Thanks for using shortcuts like PM without explaining them ever. Much appreciated!
I apologize. I had wrongly assumed it was known widely enough.
PM = Production Method

Will mod owners get early access to allow them time to make such drastic changes to their pop and building set ups. I do look forward to creating wealthy centers of commerce.
I don't know at this moment, but I'll get back to you with an answer sometime after the easter weekend.

So state can be traded, conquered, etc back and forth, while manors and financial centers don't care that it was Prussian then Austrian then Russian state in quick succession.
Is that stating a fact or including a criticism?
No other building really cares about it. If you have a point of feedback on why they should, I'd like to hear it though.

Can you build railroads in countries that don't have the railroads tech? Or buildings a country doesn't have tech for in general?
Yes, you can. For construction purposes the game looks at the tech of the one who is trying to construct, not where the building will be located.

Bavaria? Proud, you say? Is there even as much as one proud Bavarian?

But in all seriousness: the ownership changes are the best change since launch, I think!
God damnit, I should have definitely written "Bavaria, one proud member..." instead :D

Thanks, we're very glad to hear!

To expand on this, how are investment rights retracted? I assume it is unilateral?
So you can get investment rights from another country, build stuff there, then they break the treaty and nationalize it? That's kinda cool
As mentioned in the DD, there's different ways of getting the rights, not only unilateral, also mutual.
But for all diplomatic pacts, there should be only fairly low barriers to cancelling an ongoing pact, yea. Kind of like any other diplomatic pact, really.

Will companies (when the changes come) own the building levels immediately or will they make an effort to buy those up over time? It'd be cool to see them representing a large company but not necessarily owning ALL of my relevant industry. Also, will we be getting company ownership characters?
I want to stress this is purely a design thought we are having at this point.
We think it could work like that or similar to it and will need to see during implementation if it is actually feasible the way we're thinking about it currently.
So, with this in mind, another pure from-the-top-of-my-head response to your question:
I'd expect companies to start small and grow over time, yes. And definitely not owning ALL your relevant industry unless you let it intentionally come to this.
Company owner characters are definitely on my personal wishlist, but again, no clue if that's realistic. They need to fit within the context, otherwise we likely won't pursue this idea.

Can I change Production Method in Privately owned buildings?
Yes. As I mentioned elsewhere: PMs are always controlled by the country where the building is located and this rule also applies to privately owned buildings.

Most farms, for example - your typical small farmer owned or rented his own land, and maybe had a few hired hands. Similarly, artisanal production is the same.

We should mentally distinguish between worker-owned because the operation is too small to warrant outside ownership, and worker owned as a legal structure for a large organization.

I'd like to inquire about a few things, @PDX_H4n1baL :
- Can non-state owners (workforce, manor houses, or financial sectors) buy from each other, or just from the state when you decide to privatize?
- What happens if you revoke investment rights with a foreign country, but do not nationalize?
- Related to the previous two questions, can non-state owners purchase foreign-owned property?

Anyway, I'm extremely excited about this patch, and, depending on how it plays out, it could be what gets me to finally buy Vicky3.

Click to expand...
1. Not between them at this point
2. Nothing, they just continue existing with the foreign ownership :)
3. Yep, if the foreign country privatizes these assets, they can

Normally I would agree, I just think it could be annoying from a gameplay perspective. Early game is dominated by government building iron mines. Do you really want to have to go iron mine -> admin-> iron mine -> admin -> iron mine -> admin -> tools -> admin ->paper ->admin ect.
Thanks for your suggestion.
I'll see if that'd be a feasible alternative to employ bureaucrats. I do see some problems with it though which I'll need to investigate first.


Can my nation or pops own all buildings in the world?
You could grab more and more subjects and buildings over time if you have GDP 2x bigger than next country.
Theoretically, yes.
Practically, probably only through conquest. Though I haven't tried, so I challenge you to do it! :D


Very nice rework! Do the new "allow investment" pacts cost diplomatic capacity to maintain? And how much if so?
50 per pact as of right now.

Hello great DD, Does your diplomatic relationship affect the likelyness of the AI building in your country ? Like will the investment decreases in your country you have too much infamy ?
Not currently as far as I know. But of course the initial signature willingness for Investment Rights is affected by it.

When you privatize a building and pops go and buy it, will they always be pops from that same state creating a new ownership building in that state?

Can an existing ownership building buy a privatized level of a building in another state?

Can pops in one state create a completely new ownership building in order to buy a recently privatized building in another state?
Doesn't have to be from the same state. It's not necessarily a new building, can be, but can also be an existing manor house/financial district that expands (which should actually be more likely).

Can you privatize foreign investments? If so, who can buy those levels?
No, you don't control them after all. You'd need to nationalize them first.

Is there a way to force a country to accept foreign investment?
For trade we can either open their market or take a treaty port, do we have similar options for foreign investments?

Does our economic system law and/or trade law affect foreign investment?
Yes, there is a demand to get Foreign Investment Rights. You may need to go to war over it, but you can enforce it.

Can you expand on what you're getting at with the laws? What effects are you thinking of with relation to foreign investment?

What about privatization of unprofitable buildings though?
As Wiz said, they mostly care about profitability. So it would be very unlikely that they'd buy an unprofitable building compared to building a new profitable one for example.

Why do government owned building suffer from economy of scale debuffs? If it's to motivate privatisation, why not just increase the bureaucracy cost? It seems kind of arbitrary to say that goverment is worse at producing stuff as a principle.
During initial testing we discovered that nationalization felt like an auto-click button basically that you would always want to press. So we added more consequences on all ends pretty much.
Personally, I think it does make sense that government-run buildings work less efficiently. If the private sector were in charge of a government's bureaucratic system for example, it would very likely see efficiency improvements. But maybe that's just a faulty perception being a German ;)
In any case, we will keep an eye on this feedback when SoI releases of course and are happy to adjust it if it really doesn't work well.

Hi, can you have the investment pacts with decentralised countries?
No, you cannot.

"Because of this it no longer makes sense for players to be in charge of both public and private investments simultaneously, and as such the Directly Controlled Investment Pool rule has had to be removed for 1.7 and beyond."


I very very very dislike.

So I as a player only can build governmental buildings?
No, you can still build any building like before.
You will just not be able to direct what buildings are being built from the private investment money.

Can my nation have urban centers, trade centers, manors, financial districts and government buildings as only buildings?
That is no anything except for those buildings.

That is country would be fully utilizing foreign investments for its own economy (microstate like Luxembourg).
Theoretically, maybe?
Try it out and ping me. I'd love to see it!

There’s a lot to unpack here, sorry for all the questions, but here goes:

Do you think the changes to ownership could provide a platform for adding more financial mechanics? Ie, banking, insurance, private and public lending, and international credit?
I would say these wouldn't necessarily require the changes we're making. But the changes also don't invalidate these ideas. So maybe eventually, no concrete plans for any of these at this point though.


Will capitalists buy/sell buildings from/to each other?
Not at the moment, no.

Are speculation and market bubbles modeled?
Not really. If there's highly profitable targets, you could theoretically see a bunch of investments into that particular state+building which would then reduce profitability, but not to a point of crashing I'd assume.

If a country my capitalist’s have invested in goes bankrupt or nationalizes foreign industry, will my capitalists create a lobby to invade and demand compensation?
Good question. I actually don't know if we could set it up with the current Lobbies systems since I was not really involved after initial design discussions. I'd recommend asking it again when we publish the Dev Diary on Lobbies!

This is one major changes I like the most out of all the updates!! Also love the new building registry, QoL improvements like this just shows that the game is going in the right direction.

I still have some questions regarding the ownership though.

1. What’s going to happen to the skyscraper buildings? Is it duplicated with the new financial district, especially the Trade Nexus PM?
2. Can manor houses and financial districts spawn in multiple states in each country? And how to determine where they can spawn (if multiple of such building is possible)?
3. What happen to the existing ownership, both national and foreign one, if one country got annexed?
4. What happen to ownership of some unique buildings e.g. Panama canel? Are they follow the same rules as other buildings?
5. Can we have financial district upgraded to skyscrapers, maybe visually in the late game? I really wish I could see a New York city skyline filled with skyscrapers in this game, pleasssssssse.

Click to expand...
1. Skyscrapers are still there. The Trade Nexus PM provides a trade route quantity multiplier, so I'm not sure how it would relate? Is this in relation to question 5? If so, see answer on that :D
2. Yep, there can be as many manor houses and financial districts as you have states. There's a random chance function to determine where it spawns.
3. Depends what you mean with each of these terms. Any country-owned buildings' ownership is transferred to the winning country, no matter where the building is located. Any privately-owned buildings remain in place and they also keep their possessions, no matter where they are.
4. Nothing changes for unique buildings pretty much
5. Not with release of SoI at least. We do have very cool new 3d models for these financial districts though. We could theoretically think about turning them into a skyscraper if size is above 100 and you have all the tech etc. for example, but it's nothing we're planning at this point.

This is the biggest change to the gameplay-loop since the war changes or the original introduction of Auto-investment. I like how it lays the foundation for things to come, seemingly company ownership.

Thought: have you considered moving the investment pool source from the pops to these buildings? Right now we have 20% of capitalist income going to the investment pool, but when the income is paid by the building it might as well be 20% of financial district profits, no?

I feel like this has potential in regards to things like experiments with private debt/interest rates, companies / districts modeling investment banks investing in their own expansion.

Edit: it allows you to mess with having a seperate debt / investment pool per company. But it does remove the pop type determining what type of building is built. So it's an interesting tradeoff.

Click to expand...
Yeah. Building based investment pools would be awesome, wouldn't they?
It's definitely something we've talked about especially in relation to the potential company changes. Doing that would require a significant rework of very fundamental code though.
It would require more design and tech investigations before we can make any kind of more concrete statement on its feasibility.

So a question,

As far as I understood, you could just like build a farm, plantation or industrial plant and etc from the state budget and it would be owned by the country until you privatise it by “selling” it to aspiring capitalists or capitalists and receive the costs from investment fund into the treasury pool? Right?

Then how could we force the investment AI not blow its budget on things so that it could “afford” to pay the cost of privatization?
As has been mentioned in other replies, AI considers anything up for sale compared to building new buildings. So a productive building you're privatizing may stay "on sale" for some time until the investment pool is filled enough, and then will likely be bought.

question in the screenshots, it shows manor houses owning lumber mills, something i think in the past did not employ aristocrats, have their been changes to what aristocrats and capitalist buy and own?
There are weights for what industries the ownership buildings will invest to. It doesn't exclude anything, just makes it more or less likely.

Very good DD. I also appreciate the transparency about Companies!

My only major gripe left with the game is how Navies are handled, from fleets being able to go anywhere in the globe (they should be limited to a range from their HQ), to how fleet deployment and combat works, leading a whack-a-mole gameplay, to how buildings work for navies being really awkward at dealing with ship upgrades...

Anyway, thank you for pouring so much effort into the base game, instead of focusing on churning out only DLCs.
Thank you :)
As you may have seen, we do have some plans with Navy in general. Because we do agree that the Naval Warfare is not where it should be. When we'll get around to that is not clear at this point though.

Some thougts:
  1. Will consolidation of upper strata pops in manor houses and financial districts significantly impact total pop counts, and can this help performance?
  2. Are revolt tags able to nationalize/alter building ownership? Seems like this could get annoying in cases where the revolution is unsuccessful.
1. There is a reduction in the number of Pops as a result of this change, yes. The later in the game, the more noticeable the reduction. But I would be careful with expecting a significant performance gain from this. It helps, but will not move the needle enough on its own.
2. Yeah, they are able to. We will have to keep an eye on this to see how bad this gets and see if we need to react.

Does this mean more shopkeepers are employed in the actual building itself, if that’s the case?
Shopkeepers are mainly employed by the new Financial Districts.

Thought about one more thing. Is the price of nationalization/proceeds from privatization going to be modified by productivity/profit of the building within [timeframe?] Otherwise selling off unprofitable industries could net as much as profitable ones.
No, the costs are not modified as of right now.
Unprofitable buildings might not be sold at all because they are still compared versus new investments into profitable buildings. So time is definitely a component that will be affected.

One last thing: are country-owned buildings automatically subsidized?
No, subsidies are controlled by the country where a building is located in.

Two questions:

1) Since the player always controls a building's PMs, what stops them from selecting bad PMs for foreign owned buildings and good ones for their own? Obviously you could only do this if the buildings were in different states, but if all the foreign owned buildings were in one or two states, you could change the PMs to make them less profitable, which would then also make your own buildings more profitable (since the foreign owned buildings are now producing less goods, decreasing supply). You could also do this with government owned and pop owned buildings, favoring the government owned ones to make them more profitable.

2) Can one level of a building like the Manor House or Financial District own multiple levels of other buildings? Or do they always have to increase their level as they own new levels? I understand that's how it works in vanilla, but could this be modded so that one level can own a ton of other building levels, making the small number of pops in that one level of Manor House extremely wealthy?

Click to expand...
1) The player does not always control it. It is the country where the building is located that sets the PM. So not sabotaging that way.

2) They have to increase their level pretty much. An exception being subsistence farms where we look at the employment rather than the amount of levels. I don't think you'll be able to mod that. What you can mod though are the PMs, so you could reduce the number of Pops that "work" in these buildings and you'll create a very rich upper class.

Here’s hoping that “at this point” is carrying a lot of weight there!

And on point 3, I’m not sure I understand the answer.
So, suppose the UK invests in Japan and builds a steel mill. Its owned by some owner in the UK. Is there any way for Japanese owners to buy that mill, aside from the Japanese state nationalizing it and then privatizing it?
If the owner of the steel mill is a country, let's say GB, they can privatize that steel mill. Then japanese pops can buy that steel mill, yes.
As I mentioned, there's no transfer of ownership between two private pop investors (at least with release of SoI).


This would be interesting to me too, also makes me wonder how much Urbanization you roughly get from Manor Houses/Financial Districts? Is it comparable to the industry buildings we currently have?
We have set it to 0 as it was creating a lot of issues, since it would score urbanization twice effectively, once for the industry building, then again for the owning building.


I still do not understand how foreign investment works construction wise. If Prussia invests in a Bavarian Furniture Factory, does it go into a Prussian government building queue, Prussian private queue, or Bavarian private queue? Sometimes I just want another country to get levels of mines or plantations, so that I can import the resource, and don't really care about then getting the profits, so it's mostly just important to me - how fast can I build things in different countries.
The building country gets the entry in their construction queue, independent of where in the world the building is being constructed.

Will there be any quality of life features to make it easier to nationalise/privatize at scale? For example, I imagine if I'm a GP and I conquer a new territory, it might be preferable for me to nationalize everything in the newly conquered province and then privatize it. Or i might want to Nationalise all the Oil in my country etc. etc.
A group nationalization button is on our list.
I cannot promise that it will be there for release. If it's not, it will likely be in a post-release patch not too long after.

Is it possible to have hybrid ownership of buildings, like, say, oil fields being owned concurrently by the government and capitalists?
Yep, it's on a level basis, not whole building.

I asked this question earlier in the thread, not sure if it got missed or if you'll need to look into it first but judging from the amount of reactions the question got others seem to be curious about the topic too (sorry for bumping but this is something that has bugged me for a long time)
No plans to change it at this point I'm afraid.

I feel like this will cause a services/transport shortage in states with a high concentration of ownership buildings.

Wouldn't it have been better to split the urbanization in some kind of ratio, say half and half, or 1/3-2/3?
Maybe, yeah.
I'll investigate in more detail if I find the time.


I think you misunderstood. The question was more likely asking for a hybrid ownership type integrated directly instead of the player having to configure each level manually. It could be pretty tiresome on high scale maybe?
Your country can own some levels, your Pops can own some levels. The country owner controls all PMs, no matter who owns each level.
Not sure what manual configuration you are referring to. I guess we'll see when OP writes back if I answered their question or not :D
 
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One of the most anticipated features I had hoped for Vic 3 is here! Praise be, a big thanks to the developers here for listening to our main concerns!

How will the AI countries cope with these new mechanics, will they in general be more willing to build more resources etc? How will they act in terms of nationalising or privatising?
 
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Sounds like a solid foundation for future companies rework (would be cool to see companies owning other buildings to gain monopoly for certain market goods!).

Anyways I love dynamic ownership!
 
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Looking forward!

HOWEVER:

I feel the need to immediately flag this from Victoria 2, almost as a reflex. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
What happenes to these assets when a war happens with that country? Please bring in some sort of mechanic to get them back, be compensated for them, or both. Nationalisation of assets is historically a major issue and has formed a casus belli in the past. Compensation has often been part of these settlements.
 
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Good afternoon,a great DD and can't wait to play it and to mod the system as well.However,i have a few questions:
1)Regarding the new investment pool,will it still be possible to define triggers for what the private pops investors can build,such as the way it works like when the Opium is banned in Vanilla current version?
2)How moddable ownership pms of Manor Houses and financial districts will be?
3)Will there be effects for changing ownership by event or things like this?
4)Can we add ownership by Manor Houses and Financial Districts for modded building as well?
Thanks for any replies about this.
 
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Question: It says "You cannot nationalize other countries’ assets as long as they possess Foreign Investment rights in your country." but also that attempting to nationalize and being rejected results in a wargoal that if successful removes foreign investment rights (in addition to nationalizing the buildings).

So which is it? Do you need to remove their rights before you attempt to nationalize or does attempting to nationalize removes their rights?
 
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This looks very, very good.

Two things:
1. Isn't a bit odd that even developed economies like Britain start as an economic terra nullis, with all capital in the hands of labour?
2. Don't these two sentences conflict with each other? i.e. pops can invest but don't consider foreign states as potential targets?

No matter how you got the Investment Rights, you and also your Pops will be able to invest in the target country. Private investment does consider foreign states as potential targets for their expansions, allowing them to build profitable buildings more easily.​
 
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Very interesting and fun, and a far far more accurate representation of a vital dynamic both during the gamespan and even in the modern times, between Metropole and Peripherie.

If you wish to get very absurd about the idea, there is also the option of when you introduce company headquarters as a concept making it so they themselves have ownership shares as well. Allowing for partial nationalization of companies, as well as buyouts of companies from others. So if you aren't careful, you end up with a single company with total ecconomic dominance...which if they are properly tied into the political system would get quite interesting.

I really like the fact that passing a law no longer instantly changes the actual on-the-ground ecconomic situation, especially with command and cooperative ecconomies, as in the historical instances of those, the process of expropriation was a massively complex (and interesting) ongoing event. It deserves this additional layer of representation.

Even more so, I love the way this represents the slow enclosure of the commons via steady privitization, though its a bit of a shame that subsitance buildings seemingly can't be held in common before implimenting collectivized agriculture, as the process of enclosure was, to my awareness, still an ongoing one in alot of countries by 1836. Though that would also be featurecreep.
 
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Why is "worker-owned" the default in 1836? Which industries, factories, and plantations were worker-owned in 1836? I don't get it.
 
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This is the reason I'm not playing anymore until May - it should be the most progress you have made towards making the game what it always could be since launch. I can't wait to see it in action!
 
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Loving this!

Can a country refuse a peaceful nationalization? Is there a way to prevent it, via obligations, humiliations, and the like?
Can nationalization be demanded as a separate war goal, instead of the primary one?
 
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Will you be able to build railroads in other countries?

How will the game distinguish different production methods for foreign owned buildings/private and public owned buildings in the same state?

Will there be anything regarding ownership of foreign trade centers? Historically custom houses were confiscated from debtor countries, being the first step as a way to vassalize and eventually absorb them.
 
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Very interesting, however , while it's probably a balance thing, It feels weird that we have to wage a war to confiscate assets in our territory, it would make more sence if after trying to nationalise, the other country would be able to attack the nationalising one, to enforce its reparation+keep its factories.

Imagine a communist revolution in Russia, I don't feel like they would need to take London in order to get ownership of some british canned pork factory
 
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Something I'm curious about are construction sectors, will the state continue to pay all construction worker wages (even if they just sit around and do nothing)?

Right now even if your private queue "pays" for construction it means it is only paying for construction goods, construction workers are counted as government workers and the government always has to pay their wages. Maybe this is something that can be looked at? I would like it to work a bit like conscription and some/all workers get layed off when there is no/not enough construction being done plus private investments should not be built by government construction workers.
 
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I'm wondering about subjects like the EIC or the formable African colonies, this will be great to solve the issue of never having enough accepted pops for owners to fill the rest of the workforce but also, does this means they won't be able to fill a financial center? SHOULD they have financial centers or should their buildings be auto-sold to their overlord?

I'm also wondering about being able to auto-sell in interventionism or co-op. You do build quite a lot of stuff especially as the game goes on, hope it's not much of a chore to sell all that manually.
 
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