View source for Economy of Gylias

{{Infobox economy       
|country             = Gylias
|image               = GyliasFlag.png
|width               = 300px
|caption             = [[Flag of Gylias]]
|currency            = [[Gylian þaler|Þaler]] (GTH)
|year                = 1 March — 28/29 February
|organs              = [[Common Sphere]]
|gdp                 = NSD 303,5 billion <small>({{wpl|Purchasing power party|PPP}}, 2018 est.)</small>
|gdp rank            = 
|growth              = 3,15% <small>(2018)</small>
|per capita          = NSD 12,800 <small>({{wpl|Purchasing power party|PPP}}, 2018 est.)</small>
|sectors             = Services: 70,7%<br>Industry: 25,2%<br>Agriculture: 4,1%
|inflation           = 
|poverty             = 3% <small>(2018)</small>
|gini                = 22.5 <small>(2018)</small>
|labor               = 16 million <small>(2018)</small>
|occupations         = Services: 72,1%<br>Industry: 22,5%<br>Agriculture: 5,4%
|unemployment        = 2,7% <small>(2018)</small>
|industries          = {{Collapsible list|[[Clothing in Gylias|Clothing and textiles]]|Shipbuilding and shipping|Energy|Jewellery<br>Food processing|Wood and furniture products|Metal products|Cement|Fertiliser|[[Computer industry in Gylias|Computers and IT]]|Construction|Pharmaceuticals|Electronics|Biotechnology|Mining|Sugar|Rubber}}
|exports             = 
|export-goods        = {{Collapsible list|Clothing|Jewelry|Electronics|Various consumer goods|Cement|Musical instruments|Ships|Pharmaceuticals|Sugar|Foodstuffs|Rubber|Tobacco|Wood products}}
|imports             = 
|import-goods        = {{Collapsible list|Cars and car parts|Machinery and equipment|Thorium|Raw materials|Semimanufactures|Chemicals|Plastics|Iron and steel|Foodstuffs|Electronic equipment}}
|FDI                 = 
|debt                = 
|gross external debt = 
|revenue             = 
|expenses            = 
|reserves            = 
|credit              = 
|aid                 = 
|usebelowbox = no
|presentUS$asdefault = no
}}

The '''economy of Gylias''' is a {{wpl|Lange model}} {{wpl|market socialism|market socialist}} economy. Strategic areas and industries are {{wpl|state ownership|publicly owned}}, and all companies are {{wpl|cooperative}}s. Cornerstones of the economy include {{wpl|workers' self-management}}, {{wpl|decentralised planning}}, prices and capital allocation set by public bodies, the non-capitalist application of market mechanisms, and pervasive {{wpl|redistribution of income and wealth|redistribution}}.

Gylias is a {{wpl|developed country}} with a {{wpl|mixed economy}}, based on services and industry. Although the GDP per capita is slightly below the [[Siduri (Continent)|Sidurian]] average, the country has very high {{wpl|standard of living}} and {{wpl|quality of life}} indicators, credited to its strongly integrated [[Social security in Gylias|social security]] and low {{wpl|economic inequality}}. Assessments of the Gylian economy are complicated by its non-financial elements and decentralisation, and in some cases different statistical concepts. 

The Gylian economy has shown robust growth since independence, with the exception of a lengthy downturn during the 1980s, and has remained stable for many years, with continuing GDP growth, low unemployment, and moderate budget deficits. Gylias is fairly integrated into the [[Tyran]]ian economy, and various controls and non-tarriff barriers restrain the penetration of international companies into its domestic market.

==History==
===Ancient and pre-modern eras===
The economies of the ancient Gylic states were largely based on agriculture, fishing, timber, and some mining. There is some historical evidence of a {{wpl|palace economy}} between the 9th and 4th centuries BCE, which was wiped out by a {{wpl|Late Bronze Age collapse|Bronze Age collapse}}. The subsequent establishment of the [[Liúşai League]] in 390 BCE set the Gylic states on a path of decentralisation and small-scale economics.

Begun as an alliance of coastal and riverine city-states and agricultural inland region, the League developed into a {{wpl|thalassocracy|maritime-oriented}} entity. It etsablished enduring ties with [[Cacerta]] and [[Kirisaki]], and built trade networks that reached far into Siduri, allowing for the importation of technology that benefited mining and agriculture.

The [[Demographics of Gylias#Population|low population of the Liúşai League and settlement patterns]] helped keep inequality relatively low, preventing the emergence of {{wpl|feudalism}}. {{wpl|Slavery}} was not practiced. The invention and spread of coinage further developed the states' economies, allowing a significant expansion of domestic and foreign commerce. {{wpl|Handicraft}} industries emerged, especially in working with wood and metals. The degree of monetisation of the Gylic economies was limited, with {{wpl|barter}}, {{wpl|payment in kind}}, and {{wpl|tax in kind|taxes in kind}} remaining common.

The Gylic economies experienced stability and steady growth throughout the League era. Historian Nina Raukan writes that the main challenges affecting the League in this period were:
* Unemployment, for which the League states established free distribution of food and other public assistance programs.
* Fluctuating money supply, due to the lack of a central bank, competing currencies, and deficient regulation of the banking system.
* Reliance on trade, which left the economies vulnerable to shocks from abroad.

The relative prosperity of the Liúşai League attracted migration from many parts, contributing to the Gylic states' ethnic diversity.

===Xevden===
The conquest of the Gylic states by [[Xevden]] in the [[Colonisation War]] had a destructive impact on the economy. The Xevdenite elite confiscated land from farmers, imposing a feudalistic system and constituting an {{wpl|aristocracy}}. The destruction of infrastructure and disruption of trade networks amplified a severe {{wpl|depression (economics)|depression}}. Poverty became widespread, most Gylic peoples and minorities being reduced to penury, and inequality skyrocketed. As the state was now run by an alien elite, Xevden's economy became a tool to repress and marginalise the native population.

Economic reforms carried out in the late 18th century, during queen Senalta's reign, brought some tenuous stability and modernisation to Xevden. Industrialisation proceeded in a halting and deficient manner during the 19th century. Wages remained poor, national income lagged far behind the Sidurian average, and infrastructure was slow to modernise. High inequality, pervasive corruption, and poor conditions wracked the economy.

The deficiency of public services and ubiquitous marginalisation led Gylians during the [[Gylian ascendancy]] to create a network of self-help institutions outside the state, including {{wpl|mutual organisation}}s, {{wpl|cooperative}}s, {{wpl|benefit society|benefit societies}}, clandestine education, and a press that helped disseminate radical political and social ideas.

[[Cacerta]] successfully [[Cacerta-Xevden War|conquered]] parts of Xevden in 1908, which became the province of [[Alscia]]. The province benefited from the institution of localised democratic government and integration into the [[Cacertian Empire]]. The [[Donatella Rossetti government|activist government]] of [[Donatella Rossetti]] spurred industrial development and created an [[Alscia#Government policy|interventionist policy model]] that would be influential on later Gylian economic policies. Alscia gained a prosperous and diversified industrial economy; Iárus' shipbuilding tradition was strengthened by the access to Cacertian expertise.

Xevden's slow disintegration continued during Karnaz's rule, whose attempts to crush dissent simply fueled insurgencies and rebellions which gained control over significant territory. These were driven by various philosophies, of which [[Anarchism in Gylias|anarchism]], [[Socialism in Gylias|socialism]], and [[Communism in Gylias|communism]] were the most prominent.

===Liberation War===
During the [[Liberation War (Gylias)|Liberation War]], the [[Free Territories (Gylias)|Free Territories]] were proclaimed, which were self-organised along anarchist principles and experimented with various economic models. The Free Territories succeeded in uniting all other rebel factions behind them in the war's second phase, and gained a complete victory in 1958, destroying the Xevdenite state.

===Independence===
At independence, Gylias faced massive challenges: it was one of the poorest countries in Tyran, its anarchist leanings fueled regional suspicion, and it had a very small industrial base. The destruction of the war, however, consolidated a popular consensus behind the implementation of anarchist principles.

The transition from the Free Territories to Gylias lasted from 1958 to 1962, coinciding with the [[National Obligation period]]. {{wpl|Rationing}} continued until 1961, while rebuilding took place at a massive scale in adverse conditions. The [[Darnan Cyras government]] took a pragmatic tack, maintaining some state-like institutions at the federal level to carry out coordination and planning based on {{wpl|subsidiarity}}. Reconstruction was financed through federal deficit spending, the issuing of {{wpl|bond (finance)|bonds}}, nationwide savings and resource mobilisation movements, and the use of {{wpl|demurrage (currency)|demurrage}}-based local currencies.

The Free Territories' economic models were implemented throughout Gylias, with local and regional currencies pegged to the [[Gylian þaler|þaler]] used to guarantee the coexistence of different systems and experiments. A profound reorganisation of the economy took place, which included:

* The transfer of land to collective ownership, and the establishment of {{wpl|agricultural cooperative}}s as the basis of the agricultural sector.
* The {{wpl|social ownership|socialisation}} of the economy, achieved by transforming private enterprises into {{wpl|cooperative}}s, administered by {{wpl|workers' self-management}}.
* The nationalisation of key sectors of the economy, including natural resources, transportation, infrastructure, and telecommunications. The resulting [[Gylian administrative agencies#Public organisations|public organisations]] were also administered by workers' self-management.
* The implementation of {{wpl|price controls}} based on the {{wpl|Lange model}}, set by the [[National Prices Board]], and the funneling of investment through the [[National Capital Investment Board]].
* The use of {{wpl|indicative planning}} mechanisms to achieve coordination between autonomous cooperatives and equal development of Gylias' regions.

[[Sofia Westergaard]] wrote in ''The Free Territories'' that "at nearly every juncture, the government favoured cooperatives, decentralisation, and worker control over {{wpl|state socialism}}."

At the same time, a comprehensive and generous [[Social security in Gylias|social security]] system was built, which included numerous support payments (such as unemployment, disabilities, family support, and pensions) and services (such as [[Health in Gylias|universal health care]] and [[Education in Gylias|public education]]).

===Economic miracle===
The mobilisation of labour and resources for reconstruction, combined with high rates of volunteering, led to increases in production and domestic capital formation. Gylias' growth rates were modest during the transition. The maturation of the reforms and the honing of the NPB's price mechanism produced the conditions for an economic boom. Between 1962 and 1976, the economy grew by an average of 10,61%, one of the highest rates in Siduri. Average per capita income grew dramatically, inequality and poverty were drastically reduced, and GDP per capita grew from Ŧ700 (1958) to Ŧ3.248 (1976).

The economic boom eschewed a heavy industrial base. Economic policy remained suspicious of heavy industry, feeling that it risked undermining {{wpl|anarcho-communist}} aims of the [[Golden Revolution]]. One of the few significant heavy industries was shipbuilding, capitalising on age-old Gylic maritime traditions.

{{wpl|Light industry|Light industries}} dominated Gylian manufacturing, particularly the production of {{wpl|consumer good}}s. The manufacture of [[Clothing in Gylias|clothing]] and jewellery became one of the strongest sectors of the economy, catering to and fueling the emergence of an [[Culture of Gylias#Luxury|ideal of socialised luxury]]. Massive construction activity and {{wpl|public works}} successfully improved Gylian infrastructure and built modernised facilities nationwide. The services sector experienced rapid development, particularly [[Tourism in Gylias|tourism]].

{| style="width: 220px; font-size: 85%; text-align: left;" class="infobox"
|-
!  style="text-align:center; background:lightblue;" colspan="3"|Average GDP growth by decade
|-
|colspan="4"|
|-
!  style="text-align:left; background:#f0f0f0; vertical-align:top;"| 1960–1969
|  style="background:#f0f0f0; vertical-align:top;"| 9,68%
|-
!  style="text-align:left; vertical-align:top;"|1970–1979
|valign="top"| 7,78%
|-
!  style="text-align:left; background:#f0f0f0; vertical-align:top;"|1980–1989
|  style="background:#f0f0f0; vertical-align:top;"| 0,08%
|-
!  style="text-align:left; vertical-align:top;"|1990–1999
|valign="top"| 6,26%
|-
!  style="text-align:left; background:#f0f0f0; vertical-align:top;"|2000–2009
|  style="background:#f0f0f0; vertical-align:top;"| 3,69%
|-
!  style="text-align:left; vertical-align:top;"|2010–2016
|valign="top"|3,18%
|-
|colspan=2|Source: [[National Bank of Gylias]] estimates (2017)
|}
Two crucial contributors to economic growth developed in the 1960s. The [[Hermes Programme]], an ambitious system of using {{wpl|cybernetics}} to manage allocation and improve coordination, was successfully implemented in Gylias, becoming a fundamental instrument of economic policy. Gylias had joined the [[Common Sphere]] soon after independence, which had provided critical aid and expertise during the National Obligation period. The development of the Common Sphere brought greater cooperation and policy integration between the member states, and the spread of the Hermes Programme, which strongly benefited bilateral trade.

The [[Gylian þaler]], introduced after independence, experienced a burst of high inflation in its early stage, as the NPB worked out prices by trial-and-error. It became part of the [[Common Sphere#Policies|Common Monetary System]], and remained one of Tyran's lower-valued currencies. The government and central bank sought to maintain the low exchange rate in order to boost exports. Various {{wpl|complementary currency|complementary currencies}} and {{wpl|local currency|local currencies}} circulated at parity with the þaler, creating a parallel currency system marked by high {{wpl|velocity of money}}.

While Gylias' GDP continued to lag behind the Sidurian average, the emphasis on building modern facilities and improving public services achieved high {{wpl|quality of life}} indicators. Gylians on average were better housed, better educated, healthier, more politically active, lived longer, and reported being happier with their lives than before. The prevalence of volunteerism, alternative currencies, and {{wpl|social engagement|social}} and {{wpl|civic engagement}} meant that much of these social gains were not captured by conventional economic measurements.

===The wretched decade===
Economic growth began to slow down after 1976, a trend amplified by the loss of charismatic finance minister [[Aliska Géza]] and the [[Gylian federal election, 1976|1976 federal election]]. Prime Minister [[Aén Ďanez]] sought to increase state involvement in the economy and develop heavy industry. While her goals failed to become policy due to her [[Aén Ďanez government|coalition government]], her term in office still damaged the economy. Poorer foreign relations caused a decline in trade, poor choice of cabinet members affected public services, and her attempts to interfere with the private sector depressed the overall economic climate.

These factors culminated the [[wretched decade]] — a lengthy political and economic crisis during the 1980s. Average prices crept up due to the destabilisation of the economy, unemployment increased to a peak of 12% in 1983, and Gylias' balance of payments deteriorated. From 1982 to 1986, the economy contracted, reaching a -2,01% growth rate in 1984. The þaler was destabilised and fell against other currencies, creating a {{wpl|dual exchange rate}} and putting pressure on its participation in the [[Common Sphere#Policies|Common Monetary System]]. 

The economic standstill was cushioned by the country's strong {{wpl|social safety net}} — GDP per capita only fell from Ŧ3.822 (1982) to Ŧ3.581 (1987) at the worst stage —, but its psychological effect was considerable. Science and technology were notably affected, as the stagnation caused Gylias to fall behind fellow Common Sphere member states in terms of {{wpl|automation}}.

The crisis began to ebb in 1986, with the inauguration of [[Filomena Pinheiro]]'s {{wpl|national unity government}}. The [[Filomena Pinheiro government]] began to undo the damage inflicted on Gylias' economy and foreign relations. Public services' efficiency was restored, the Hermes Programme was updated, and economic policy reversed course, cancelling attempts at heavy industrialisation and increasing state control of the economy. 

Filomena lacked the mandate to carry out more radical action in the absence of an election, and so the initial recovery was modest: growth rates remained between 1%-2% for the rest of the decade, and unemployment still stood at 9% in 1989.

===Contemporary===
The [[Mathilde Vieira government]], taking office in 1990, launched an ambitious program of public works and mildly [[Liberalism in Gylias|liberal]] reforms to rejuvenate the economy, notably including the [[Social Partnership Program]]. Much of the stimulus spending was directed towards upgrades of {{wpl|transport infrastructure}}: major renovations and expansions of roads, railroads (particularly {{wpl|high-speed rail}}), public transport, and {{wpl|cycling infrastructure}} were carried out. 

The other major component of the stimulus was {{wpl|information and communications technology}} and the [[Internet in Gylias|internet]]: programs were implemented to achieve universal {{wpl|internet access}}, from installing a nationwide network of high-speed connections to regulating the internet as a {{wpl|public utility}}, to increasing computer production and providing {{wpl|computer literacy}} courses through public education.

The stimulus succeeded in returning Gylias to economic growth. Already in 1990, the economy grew by 4,38%, reflecting the climate of renewed confidence even as the stimulus program hadn't fully taken effect. Growth surpassed the 6% mark in 1993, and hit a peak of 7,59% in 1999. The þaler stabilised on foreign exchange markets, unemployment fell from 8,1% (1990) to 3,5% (1999), and the federal budget deficit, which initially jumped to 11% of GDP as a result of the stimulus program, was reduced to 3% in 1999. 

The consumer electronics and IT sectors grew significantly, with computers and IT becoming one of Gylias' largest sectors. The newly-established national {{wpl|science policy}} revitalised the science and technology sector, which stimulated the growth of the {{wpl|biotechnology}} sector.

{{wpl|Environmentalism}} became a prominent aspect of economic policy in the 1990s, reflecting the strength of the {{G-GP}}. [[Aishwarya Devi]], cabinet minister from 1990 to 2008, carried out a difficult policy of reducing consumption for {{wpl|sustainability}} purposes, while not affecting the domestic demand that drove economic growth. 

This was accomplished through the implementation of various {{wpl|ecotax}}es, taking advantage of infrastructure upgrades to incentivise {{wpl|hybrid electric vehicle|hybrid}} and {{wpl|electric car}}s, and developing the {{wpl|sustainable energy}} sector. {{wpl|Nuclear power}}, {{wpl|solar power}}, and {{wpl|wind power}} grew substantially during the 1990s and 2000s, and today most of Gylias' energy needs are met from {{wpl|renewable energy}}.

High growth rates began to recede in the 21st century, coming to an average of between 2% and 4%. Economic policy debates increasingly focused on new challenges: how to adapt the model of [[Politics of Gylias#Cooperative democracy|cooperative democracy]] and {{wpl|decentralised planning}}, the necessity of {{wpl|degrowth}} for sustainability purposes, the value of new economic experiments, and what transformations would be necessary in the future.

==Geography and resources==
{{main|Geography of Gylias}}
Gylias possesses deposits of gold, silver, copper, nickel, potash, and some iron. These are mostly concentrated in the mountainous north. {{wpl|Rock salt}} reserves are found in various hilly areas, extracted through {{wpl|salt mining}}. Salt is also extracted in coastal areas through {{wpl|salt evaporation pond}}s.

Forests are abundant, occupying 105 million hectares, or 60,8% of the total land area. The forestry sector is strongly regulated and controlled; policies prioritise conservation and recreation. Forestry is mostly small-scale, carried out by collective farms and small companies. Wood production reached 60 million m<sup>3</sup> in 2014, most of which was used for industrial purposes.

==Sectors==
===Agriculture===
Agriculture's importance to the economy declined after the economic boom. It accounts for 4,1% of GDP and employs 5,4% of the {{wpl|workforce}} as of 2017.

Agriculture is highly subsidised and protected, and policies favour small-scale cultivation. {{wpl|Collective farming}} is the norm, with the majority of agricultural land in {{wpl|common ownership}} and {{wpl|agricultural cooperative}}s carrying out farming. An individual is only allowed to possess as much land as they can personally use. {{wpl|Community-supported agriculture}} is often used at the local level as a distribution method.

Crops generally fit two major categories:
* Crops for domestic consumption — including maize, barley, sorghum, rice, tea, tropical fruits and citrus.
* {{wpl|Cash crop}}s for export — sugar, cocoa, coffee, banana, coconuts, tobacco, rubber, and tropical fruits.

Agriculture is governed by a supply management policy. The [[Gylian administrative agencies#Ministry of Agriculture and Fisheries|Directorate of Supply Management]] controls supply to ensure stable prices for farmers and consumers. The [[Gylian administrative agencies#Ministry of Agriculture and Fisheries|Agricultural Produce Marketing Board]] is the {{wpl|monopsony|only legal buyer}} of agricultural products domestically, guaranteeing minimum prices, and in turn sells products to other companies.

In recent years, tea has gone from being a primarily domestic crop to also being produced for export.

{{wpl|Animal husbandry}} is strongly controlled due to strict {{wpl|animal welfare}} legislation. {{wpl|Animal slaughter}} is illegal. Animals must die natural deaths before being made into food, resulting in subsidies for farmers. Common {{wpl|livestock}} include poultry, sheep, goats, and pigs, which also yield other products — such as wool, eggs, and milk. Meat production is geared towards using every part of an animal carcass for food.

The fishing industry was gradually shut down in the 1990s by the [[Mathilde Vieira government]], replaced with {{wpl|aquaculture}}. Fish farming remains concentrated along coasts and rivers.

The agricultural sector benefited from extensive {{wpl|mechanised agriculture|mechanisation}} and application of {{wpl|agronomy|agronomic}} expertise, starting in the Free Territories. The sector has remained highly productive, allowing labour to be transferred to other sectors of the economy. It has remained relevant through volunteering, [[Revolutionary Youth Union|RYU]] and [[Scouting in Gylias|scouting]] activities, {{wpl|experiential education}} in agriculture, and various {{wpl|ecovillage}} and {{wpl|back-to-the-land movement}}s. A large-scale shift towards {{wpl|organic farming}} occured in the 1990s, and organic {{wpl|urban agriculture}} has also grown significantly.

Approximately 40% of land is used for agriculture, and Gylias is largely self-sufficient in food.

===Industry===
Gylias has few historically established {{wpl|heavy industry|heavy industries}}. These include {{wpl|shipbuilding}}, {{wpl|freight transport}}, {{wpl|energy industry|energy}}, and {{wpl|metalworking}}. A small {{wpl|automotive industry}} is also present domestically. The heavy industries experienced consolidation under the [[Social Partnership Program]], and are mainly concentrated in several government-directed companies like [[Miyashita Industries]], with market allocation determined by the [[Gylian administrative agencies#Ministry of Trade and Commerce|Inspectorate of Competition]] and directions provided by the [[Gylian administrative agencies#Ministry of Resource and Land Administration|Office of Industrial Production Coordination]].

Gylias' energy industry is dominated by {{wpl|renewable energy}}, which supplies 99% of electricity. Leading energy sources include {{wpl|hydroelectricity}}, {{wpl|thorium-based nuclear power}}, {{wpl|solar power}} and {{wpl|wind farm}}s. Gylias has one of the largest {{wpl|recycling}} industries in Tyran, and is a notable importer of waste from other countries.

Mining is mostly concentrated in mountainous areas. Natural resources are {{wpl|public ownership|publicly owned}}.

{{wpl|Light industry}} and {{wpl|handicraft}}s dominate the industrial sector. Top manufacturing sectors include [[Clothing in Gylias|clothing and textiles]], jewellery, [[Computer industry in Gylias|computers]], {{wpl|consumer electronics}}, wood and metal products, {{wpl|food processing}} (including the {{wpl|sugar industry}}), cement, fertiliser, {{wpl|rubber}}, and tobacco.

High-technology industries have grown rapidly since the 1990s, with {{wpl|biotechnology}} experiencing notable development. Gylias has a sizeable {{wpl|pharmaceutical industry}}, which is in public ownership and non-profit.

Construction has been an important industry since independence, and in recent years has also become an export industry.

===Services===
The {{wpl|service sector}} is the largest sector of the Gylian economy, accounting for 70,7% of GDP as of 2017. Major industries include {{wpl|creative industries|creative}}, {{wpl|cultural industry|cultural}} and entertainment, [[Transport in Gylias|transportation]], {{wpl|telecommunication}}s and {{wpl|Information and communications technology|ICT}}, retail, and {{wpl|leisure industry|leisure}}.

Gylias is one of the most visited countries in Siduri, and has a highly developed [[Tourism in Gylias|tourism]] sector. It is home to cities of cultural interest, beaches and seaside resorts, ski resorts, and {{wpl|national park}}s and {{wpl|nature reserve}}s. The country's {{wpl|permissive society}} has also been a magnet for tourism, especially in [[Prostitution in Gylias|sex work]] and [[Drugs in Gylias|drug distribution]].

Gylias possesses significant [[Education in Gylias|education]] and [[Health in Gylias|healthcare]] sectors. As these sectors are legally non-profit, measuring their economic impact is difficult.

The financial sector, heavily regulated and with unique traits in Siduri, is a significant contributor to the economy. The [[Gylian Stock Exchange]] is the sole {{wpl|stock exchange}}, and the [[National Bank of Gylias]] is the {{wpl|central bank}}. Overall, Gylias' financial system is sound, well-regulated, and cautious.

Gylias enjoys high technological development in certain fields, and {{wpl|research and development}} efforts form an integral part of the economy. Scientific research is notably focused on reducing {{wpl|working time}} through {{wpl|automation}} and increasing {{wpl|sustainability}}. The [[Institute for the Protection of Leisure]] is the largest publicly-owned {{wpl|research institute}}. Its work has resulted in both mass {{wpl|automation}} to reduce working time and the preservation of service occupations that provide patterns of civilised sociability, such as [[elevator attendant]]s, [[tray vendor]]s, {{wpl|tea lady|tea servers}}, {{wpl|filling station attendant}}s, telephone operators, and {{wpl|taxi dancer|paid dance partners}}.

==Economic organisation==
Gylias' economy has been heavily influenced by [[Anarchism in Gylias|anarchism]], and fuses aspects of multiple {{wpl|economic system}}s. It has variously been described as a {{wpl|solidarity economy}}, {{wpl|self-managed economy}}, {{wpl|social economy}}, {{wpl|sharing economy}}, {{wpl|decentralised planning|decentralised economy}}, {{wpl|participatory economics|participatory economy}}, and {{wpl|co-operative economics#co-operative commonwealth|cooperative commonwealth}}; the only consensus is that it is {{wpl|anti-capitalism|anti-capitalist}}.

===Cooperatives===
Gylias has a robust {{wpl|cooperative}} movement with a long tradition. Cooperatives became the basis of the Free Territories' economy, and have the same role in Gylias. The [[Law of Gylias#Commercial law|Economic Code]] requires any company created in Gylias be a cooperative. {{wpl|Collective ownership|Cooperative ownership}} is the predominant form of economic ownership: it represents 70% of the economy in 2017, according to the [[Gylian administrative agencies#Unaffiliated agencies|Bureau of Statistics and Accounting]].

As all companies are cooperatives, they are organised by {{wpl|workers' self-management}}, governed by various models of {{wpl|workplace democracy}}, and operate as not-for-profit entities in practice. Profits are distributed to employees equally as {{wpl|social dividend}}s, while those of [[Gylian administrative agencies#Public organisations|public organisations]] are distributed as {{wpl|citizen's dividend|public dividends}}. Companies form {{wpl|cooperative federation}}s based on area of activity, and these in turn are federated into the [[National Cooperative Confederation]] (NCC), which thus encompasses all economic activities in Gylias.

===Consumers===
The cooperative movement in turn has driven the emergence of a powerful {{wpl|consumer movement}}. It encompasses multiple {{wpl|consumer organisation}}s, confederated into the Consumers' Union. The movement's vigorous {{wpl|consumer activism|activism}} and {{wpl|consumer education|education}} have been a driving force behind Gylias' {{wpl|consumer protection}} laws, which are among the strictest in Tyran.

The Consumers' Union serves as the country's {{wpl|consumer watchdog}}. It publishes the independent magazine ''Consumer Reports'', which carries out systematic tests, reviews, and comparisons of products and services, and engages in consumer-oriented research, education, advice, and advocacy.

Since the 1990s, {{wpl|environmentalism}} has become one of the defining concerns of the consumer movement.

===Labour===
Gylias' strong {{wpl|labour movement}} is reflected in one of the highest unionisation rates in Tyran, and among the lowest average {{wpl|working hours}} per year. Enrollment in a {{wpl|trade union}} is automatic upon beginning employment. All trade unions and workers' associations are federated into the [[General Council of Workers' Unions and Associations]] (GCWUA), the {{wpl|national trade union centre}}. 

{{wpl|Closed shop}}s and {{wpl|union shop}}s are the norm for workplaces. Workers in large companies elect {{wpl|supervisory board}}s to supervise the {{wpl|executive board}}s.

===Pricing===
In accordance with the {{wpl|Lange model}}, prices are set by the [[National Prices Board]] based on existing {{wpl|supply and demand}}. The NPB's approach seeks to achieve {{wpl|Pareto efficiency}}: a surplus of a good causes its price to be lowered, and a shortage causes its price to be raised.

The planned price mechanism makes impossible the measurement of conventional {{wpl|inflation}} and {{wpl|deflation}}, although the system's strain during the [[wretched decade]] did manifest in a general increase in prices. The NPB also functions in practice as a {{wpl|consumer price index}}.

===Planning===
{{wpl|Decentralised planning}} is the basis of Gylian economic management. Since the late 1980s, the expansion of {{wpl|information and communication technologies|ICT}} and the [[Internet in Gylias|Internet]] have brought an even larger degree of popular participation in planning and {{wpl|participatory budgeting|budgeting}}.

The central vehicle for planning is the [[Hermes Programme]]. A {{wpl|cybernetic}} {{wpl|decision support system}}, the Hermes Programme is a real-time information bridge between the population, NCC, GCWUA, and the governments. Gylians take part in the planning and budgeting process through Hermes' ''Cybervote'' system and [[Communal assemblies (Gylias)|communal assemblies]]. The Hermes Programme is vital to the economy, in allowing the coordination of production at local and national levels in a close to optimal fashion.

The short-term plans formulated through Hermes are integrated into a set of longer {{wpl|indicative planning}} guidelines, the {{wpl|five-year plan}}s proposed by local and federal governments.

===Applied science===
The tradition of applying scientific and university research to improve quality of life dates back to the [[Alscia]]n [[Alscia#The "hurried province"|efficiency movement]] and the extensive mobilisation of {{wpl|agronomy}} to support the Free Territories' agriculture.

Supported by Gylias' extensive university sector and scientific research, {{wpl|applied science}} continues to play an important role in the economy and society, ranging from the [[Institute for the Protection of Leisure]]'s work on automation for the purpose of reducing work, the widespread use of cybernetics in economic planning, to the embrace of {{wpl|sustainable development}} as a fundamental principle.

===Ecology===
While the lack of heavy industry and Golden Revolution phenomena such as {{wpl|ecovillage}}s made Gylias' economy historically have a low environmental impact, the emergence of an explicit {{wpl|environmental movement}} and the {{G-GP}}'s entrance into government have shaped environmental consciousness and policy.

The economic transformations of the 1990s had a notable {{wpl|green economy}} component. {{wpl|Renewable energy}} became the predominant source of energy, and an extensive {{wpl|recycling}} system was implemented nationwide. A permanent shift in consumer behaviour was engineered through various campaigns, resulting in reduction of consumption, massive growth in {{wpl|collaborative consumption}}, and renewed emphasis on {{wpl|sustainable consumer behaviour|sustainable}} and {{wpl|green consumption}}.

Recent governments have implemented policies to make the Gylian economy a completely {{wpl|circular economy}}.

===Markets and distribution===
The markets that exist in Gylias represent the sum of all voluntary exchanges and interactions. They are not to be confused with the capitalist manifestation of the {{wpl|free market}}; for that reason, [[Iana Rynai]]'s term "emancipated markets" is generally preferred.

The prevalent norms of generalised {{wpl|reciprocity (cultural anthropology)|reciprocity}} are manifested in the presence of {{wpl|gift economy}} characteristics within the Gylian economic system. A widespread system of [[Community markets (Gylias)|community markets]] exists: periodic, non-monetary markets where goods and services are shared, exchanged, and bartered. Community markets form part of a national network of collaborative consumption and recirculation, which includes {{wpl|give-away shop|free shops}}, {{wpl|second-hand shops}}, {{wpl|flea market}}s, {{wpl|jumble sale}}s, {{wpl|car boot sale}}s, {{wpl|garage sale}}s, {{wpl|used bookstore}}s, popular libraries, and {{wpl|infoshop}}s.

[[Merchants (Gylias)|Merchants]] who sell goods and food in urban areas are also a notable component of distribution. Merchants are licensed and regulated, adhering to NPB prices and consumer and labour laws, and have a significant position in Gylian communities. They account for a significant proportion of {{wpl|self-employment|self-employed}} Gylians, together with {{wpl|artisan}}s (who may double as merchants) and artists.

More conventional {{wpl|retail}} is carried out by {{wpl|consumers' cooperative}}s, which are supplied by {{wpl|retailers' cooperative}}s.

===Public policy===
The [[Gylian consensus]] forms the basis of economic and social policy in Gylias. Its basic principle is that the economy is subordinate to social protection and well-being — from this derive other tenets, such as comprehensive {{wpl|social security}} and {{wpl|social services}}, {{wpl|workers' rights}} and {{wpl|consumer protection}}, {{wpl|social ownership}} of the {{wpl|means of production}}, and {{wpl|regulated market}}s.

Gylias has among the highest tax rates in Tyran (overall taxation is 51,9% of GDP), a large {{wpl|public sector}} (52,7% of GDP), and a comprehensive {{wpl|social safety net}}. All Gylians receive tax-funded {{wpl|public education}}, {{wpl|universal health care}}, and a variety of generous [[Social security in Gylias|social security]] payments. The percentage of population at risk of {{wpl|relative poverty}} and inequality is among the region's lowest.

The tax system is strongly {{wpl|progressive tax|progressive}} and {{wpl|Pigovian tax|Pigovian}}. {{wpl|Income tax}} has 20 brackets, beginning at Ŧ3.000.000. The lowest bracket is 5%, and the highest bracket is 95%. Above the highest bracket is the {{wpl|maximum wage}}: any income earned above the maximum threshold is automatically taxed at 100%. {{wpl|Corporate tax}} is similarly progressive, with 10 brackets, the highest being 50%. {{wpl|Value-added tax}} is 5% nationally. {{wpl|Payroll tax}}es are divided equally between employers and employees. {{wpl|Land value tax}} and {{wpl|property tax}} are collected at the [[Municipalities of Gylias#Responsibilities|municipal level]], and taxes on currency transactions and financial transfers at the [[Regions of Gylias#Responsibilities|regional level]].

A variety of {{wpl|ecotax}}es exist, including on {{wpl|road tax|vehicle registration}}, {{wpl|fuel tax|fuel}}, and {{wpl|carbon tax|carbon}}. Taxes collected for {{wpl|Redistribution of income and wealth|redistribution}} purposes include taxes on {{wpl|wealth tax|wealth}}, {{wpl|excess profits tax|excess profits}}, and {{wpl|inheritance tax|inheritance}}.

Gylians' tax returns are publically available for anyone to see through the [[Gylian administrative agencies#Ministry of Finance|National Tax Agency]]. This contributes to a culture of transparency and egalitarianism in economic matters, and profilic philanthropy among [[List of Gylians by net worth|wealthy Gylians]].

===Management===
Cooperativisation and anarchist experimentation have fundamentally defined Gylian companies and their internal cultures.

As part of the system of workplace democracy and self-management, many companies elect a figurehead {{wpl|CEO}}, who are often also the founders. The CEOs serve as the public face of the company, outline its vision, and exercise management based on negotiation, charisma, and the assent of its workers. 

In a company, the foundations for some new change or project are usually laid quietly, by talking to its workers, gathering support and feedback. Consensus-building before formal steps are taken is considered important to the success of a change or project.

During periods of financial difficulty, {{wpl|job sharing}} schemes are a common method used by companies to avoid dismissals.

By law, the supervisory boards of large companies must be equal to or larger than their executive boards.

Broadly, Gylian companies employ management styles that are humanistic, with common tenets such as respect for people, avoidance of waste, and high {{wpl|quality control}}.

The {{wpl|four-day week}} is the norm. Average {{wpl|working hours}} per year are among the lowest in Tyran, with fully-paid {{wpl|sick leave}}, {{wpl|parental leave}}, and at least 30 days of {{wpl|annual leave}} are guaranteed by law. {{wpl|Overtime}} is rare, and {{wpl|flextime}} is reasonably common.

==Financial system==

===Currency===
The [[Gylian þaler|þaler]] (symbol: '''Ŧ''') has been Gylias' national currency since 1958. It is part of the [[Common Sphere#Policies|Common Monetary System]], and operates a {{wpl|managed float regime}} in relation to other [[Common Sphere]] currencies. Its exchange rate tends to be around Ŧ700 to Ŧ1000 for 1 NSD, although it has climbed higher at times in the past.

The þaler serves as the unit of reference for numerous {{wpl|complementary currency|complementary currencies}} with whom it coexists, including {{wpl|community currency|community currencies}}, {{wpl|local currency|local currencies}}, {{wpl|local currency|regional currencies}}, {{wpl|sectoral currency|sectoral currencies}}, and, more recently, {{wpl|cryptocurrency|cryptocurrencies}}. All complementary currencies in Gylias are legally pegged to the þaler, at a value of 1:1. Complementary currencies are traded through {{wpl|local exchange trading system}}s and online {{wpl|community exchange system}}s. Their purpose is to strengthen community building, stimulate local and regional economies, and promote solidarity and volunteering.

Although the Free Territories did not manage to entirely abolish money, their legacy lives on in the sizeable non-monetary component of Gylian finance. Exchanges and transactions here are conducted through {{wpl|payment in kind}}, {{wpl|barter}}, various forms of gift economy, and alternative systems such as {{wpl|labour voucher}}s and {{wpl|time-based currency|time-based}} or {{wpl|demurrage}}-based currencies.

===Banking===
The [[National Bank of Gylias]] is the {{wpl|central bank}}, which issues the þaler and is responsible for {{wpl|monetary policy}}. It is publicly owned, while independent of the government, and has a mandate to ensure stable prices and combat unemployment, with the latter taking precedence.

Notably, the National Bank operates a {{wpl|full-reserve banking}} system, in order to guarantee democratic control of the {{wpl|money supply}}, and automatically gives personal accounts to all Gylians, which allows real-time payments and transfers without transaction fees. The NBG's personal accounts are the main way taxes, salaries, assistance payments and social dividends are paid.

{{wpl|Cooperative banking}} dominates the banking system. The majority of Gylian banking cooperatives, {{wpl|credit union}}s, and {{wpl|mutual savings bank}}s are small, locally-rooted, and prioritise security. They are confederated into the National Popular Banking Association of Gylias, itself part of the NCC.

The [[Law of Gylias#Commercial law|Economic Code]] mandates a separation between banking, {{wpl|investment bank|investment}}, {{wpl|security (finance)|securities}}, and {{wpl|insurance}} companies: no institution can act as any combination of these.

Also in the public sphere, {{wpl|Postal savings system|postal savings and banking}} are handled by [[Gylian Post and Telecommunications]], and the [[Gylian Police]] offers {{wpl|giro}} transfer services.

As with the broader economy, there is a large independent and non-monetary component to the financial system. This is represented by {{wpl|collaborative finance}}, {{wpl|mutual credit}}, {{wpl|rotating savings and credit association}}s, and {{wpl|timebanking}}, among others.

The [[National Capital Investment Board]] directs domestic capital and foreign investment on the basis of social priorities. It has been significant to the growth of key Gylian industries, and its allocations focus on areas that would benefit the economy through {{wpl|multiplier (economics)|multiplier effects}}.

Gylias operates a {{wpl|sovereign wealth fund}}, the [[Gylian National Investment Fund]]. It plays a key role in the economy, providing equity for enterprises and a comfortable retirement for Gylians, and helping maintain a current account surplus.

The [[Gylian Stock Exchange]] is the country's {{wpl|stock exchange}}, dominated by {{wpl|small and medium-sized enterprises}}. The exchange is characterised by conservative investments and a relative lack of market speculation. {{wpl|Bureau de change|Currency exchange}} is somewhat more active in comparison, due to the multiple complementary currencies in existence.

==Trade==
The majority of Gylias' trade is conducted with the [[Common Sphere]], particularly [[Cacerta]] and [[Kirisaki]]. Other significant trading partners outside the bloc include [[Allamunnika]], [[Schottia]], [[Ossoria]], and [[Acrea]].

The principal exports are clothing and jewelry, electronic, cement, musical instruments, pharmaceuticals, sugar, foodstuffs, rubber, timber, paper and pulp, coffee, chocolate, tobacco, and other consumer goods.

The principal imports are automobiles and automobile parts, machinery and equipment, thorium, raw materials and semimanufactures for industry, iron and steel, and chemicals.

The Gylian economy tends to be {{wpl|Galápagos syndrome|strongly focused on the domestic market}}, which affects Gylian companies' international competitiveness. Certain industries have emerged that are concentrated on adapting and importing customised items, including automobiles, bicycles, and electronics.

While Gylias' tarriffs are low, foreign firms face significant barriers to entry, ranging from legally-enforced cooperativisation and strict consumer protection to high taxation and {{wpl|capital control|capital}} and {{wpl|foreign exchange controls}}.

==Income and wealth distribution==
Distribution is considered the strong point of the Gylian economy. Although Gylias' GDP of NSD 288,5 billion and GDP per capita of NSD 12.440 (as of 2017) are below the Sidurian average, income and wealth distribution is strongly equal, reflected in the {{wpl|Gini coefficient}} of 22.5 and high {{wpl|quality of life}} indicators.

Gylias has one of the smallest number of millionaires in Tyran. The [[List of Gylians by net worth|richest Gylian]] is [[Agsa]] founder [[Agathe Sanna]].

==Regional development==
Gylias as a federation is a polycentric economy without a single centre. Economic disparities between [[Regions of Gylias|regions]] are comparatively small. The coastal regions have traditionally been economically stronger than the landlocked regions, due to maritime activities and trade. The mountainous regions have grown in recent years especially due to {{wpl|winter tourism}}.

In addition to the Hermes Programme, several regional development programs exist to ensure equal development of regions. One Community One Product (OCOP) is a program which encourages communities, whether urban or rural, to produce one competitive, staple, and superior product, which can then be promoted nationally and produce revenue for the community members. Products included in the program range from traditional handicrafts, pottery, clothing, and foods.

{{Gylian regions}}

{{Gylias Navbox}}

[[Category:Economy of Gylias]]