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Economy of the Commonwealth of Saltusland
Topic Started: Apr 19 2010, 09:05 PM (221 Views)
Manuel
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A Brief Examination of the Provincial and National Economies of the Commonwealth
1938 Report: Ministry of Trade & Finance
Minister Cilian MacCarthy
President Alban Ó Cairre

FOR PUBLIC USE


It is of grave importance to seek the establishment of a national trade policy, for the purposes of coordinating economic efforts across the nation. Under the National Gas and Trade Act of June of 1936, the state is authorized to begin the institution of a national, cohesive, and comprehensive trade policy. This report was ordered by the Ministry of Trade & Finance to document the existing state of natural resources and manufactured goods in the Commonwealth, to be used to recommend policy applications.

This report will be discussed on a province by province basis.

Province of New Sketis

New Sketis is highly dependent on plantation farming, and is the single largest agricultural producer in the Commonwealth. Coffee, bananas, pineapples, and other miscellaneous fruit products are highly valuable cash crops produced by both individual and corporate farmers, in plantation economies. Labor is primarily composed of independent growers and family, while larger corporate plantations rely on sharecropper methods.

Pitterweem is the largest city on the island, and a major shipping hub. Shipyards comprise the bulk of industrial business on New Sketis, although canning factories in Vazimillus account for as much as 20% of the provincial GDP.

Large petroleum reserves have been identified off the coast of New Sketis, but have, as yet, been largely untapped. It is the belief of this organization that export of petroleum is a feasible proposition, given proper investment into the infrastructure necessary to exploit these reserves. This should be done on a national, domestic level.

Province of Innse Chait

Innse Chait is a major industrial and service center, particularly around Manxcaester. Shipping and canning are the largest industries on the island, employing an estimate 50% of the local workforce. The other half work in service jobs, as merchants, or in the plantations that exist on the western coast. Rice and corn are the major goods grown in this region, and account for about half of the province's agricultural needs.

Petroleum reserves in provincial waters have been tapped in a limited manner, by the National Petroleum Corporation, authorized by the National Gas and Trade Act. Continued investment is an economic necessity.

Province of Saltus Orcadus

The Orcadus are a major domestic shipping site, and 90% of goods that reach the mainland arrive first on Abernethy, according to a 1935 study by the Committee of National Raillines. Slaughterhouses and ranches comprise a majority of use of this land, alongside a thriving timber industry. The environmental impact of deforestation has not yet been studied, but is the opinion of this organization that major initiatives are necessary to protect domestic timber reserves from over harvesting.

Province of Saltusia

Subsistence and plantation farming account for 80% of the provincial GDP, which is the smallest in the nation. Cash crops include sugar and tropical fruits, but this is grown on a limited scale. Saltusia is the breadbasket of the nation, and responsible for our independence from foreign food imports. Rice, corn, and other similar tropical crops are the mainstay of the region. It is the belief of this committee that this should be maintained.

Local industry is minimal, but includes timber harvesting and canneries. Shipyards exist at Iverness, and Iverness is the major shipping hub in the region.



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Manuel
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BRIEF OVERVIEW

The Saltusian economy is officially described as the National System, and academically described as a 'franchise market'. There are three components to the National System, said to work in sync for the good of the state: Government, Management, and Labor.

The Ministry of Trade and Finance represents Government. Economic activity is regulated through the Ministry. In order to legally operate, any Manager must own the proper license. There are five major categories of trade licenses: Agrarian, Maritime, Retail, Extraction and Industrial.

In order for a Manager to open a business, he must first procure a trade license. These are generally a thousand Saltusian pounds each, and must be renewed every two years. Only Saltusian residents can procure trade licenses. In addition to the trade license, each Manager must also procure production licenses. These vary from group to group.

An Agrarian Production License, for example, permits a Manager to produce a certain crop up to a certain amount. To produce more, or varying crops, they must purchase additional licenses. These are generally cheaper than the basic trade license, and must be renewed annually. A Maritime Production License limits fish and tonnage in a similar way. An Industrial Production License is different - Managers purchase the rights to produce a certain technology from the government patent office. The patent holder receives a small royalty for each unit produced under the license, without upper limit. For example, a car manufacturer from a foreign nation that wants to expand its market would not itself produce the vehicles, but give permission to a factory within Saltusland to produce on their behalf, and collect royalties. Once all licenses have been procured, Managers generally operate in a free market system. The government may deny licenses if it feels it has too, but cannot deny a renewal of an existing license. A Retail License is also different. Managers need only purchase the base license, and pay a set fee per unit sold (sales tax). Possession of a Production license includes permission to sell to others holding a Retail license or Production License (a tractor maker to a farm, for example), but selling directly to the people requires a purchase of a Retail License. A Retail License covers service activities as well, such as restaurants or distribution centers. An Extraction License is unique in that it has a very high base cost, but variable on the type of extraction being done: be it lumber, minerals, oil, or any other material. Extraction Licenses are complex, and costs are determined on the market price of the previous year. A Manager seeking to open an Oil Well, for example, would need to pay for an Extraction License equal to twenty percent of the market price per ton of the material extracted. These would have to be renewed each year for a small base price, and limit the tonnage a single Manager may extract. Multiple licenses do not stack their variable costs, and expand on the tonnage able to be extracted by a Manager, but have a progressively rising base cost per license.

Managers must hold secret ballots among the entire workforce (including themselves) once a year. Labor votes on the question of whether the Manager is providing adequate wages, hours, or benefits to the workers. If less than four in ten workers feel the Manager is not serving their interests, the Ministry of Trade and Finance has permission to refer the issue to an internal committee, which can review the business practices of the corporation. If the Manager is ruled to be unsatisfactory, they will have all production licenses placed on probation. The Manager then has a two month grace period to make satisfactory changes before a second vote takes place. If at this point, sixty percent of workers still feel negatively, the manager is removed, and production licenses auctioned at a reduced rate to other Managers. Until a buyer is found, the factory is nationalized and run by Civil Managers from the Ministry of Trade and Finance.

Workers are required to be offered a percent dividend of company annual profits in their employment contract, though the size of the dividend varies contract to contract.

There are no corporate taxes in Saltusland. Income is procured through the franchise system instead. Private banks are not permitted, and the National Bank handles savings and loans.
Edited by Manuel, Jun 3 2010, 07:48 AM.
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