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{{Infobox economy       
{{Infobox economy       
|country            = Delkora
|country            = Delkora
|image              = Delkora_Flag.png
|image              = Flag of Delkora.png
|width              = 200px
|width              = 200px
|caption            = Flag of Delkora
|caption            = Flag of Delkora
|currency            = [[Veld]] (⊻)
|currency            = [[Veld]] (⊻)
|year                = 1 April — 30/31 March
|fixed exchange      = [[Common Sphere#Policies|Common Monetary System]]
|year                = Calendar year
|organs              = [[Common Sphere]]
|organs              = [[Common Sphere]]
|gdp                = 4.98 trillion NSD <small>(2018)</small>
|gdp                = NSD 2.82 trillion <small>(2020)</small>
|gdp rank            =  
|gdp rank            =  
|growth              = 2.5% <small>(2018)</small>
|growth              = 2.4% <small>(2020)</small>
|per capita          = 53,488 NSD <small>(2018)</small>
|per capita          = NSD 29,300 <small>(2020)</small>
|sectors            = Services: 72.5%<br>Industry: 26%<br>Agriculture: 1.5%
|sectors            = Services: 72.5%<br>Industry: 26%<br>Agriculture: 1.5%
|inflation          =  
|inflation          =  
|poverty            = 2.6% <small>(2018)</small>
|poverty            = 2.6% <small>(2020)</small>
|gini                = 24.7 <small>(2018)</small>
|gini                = 24.7 <small>(2020)</small>
|labor              = 52 million <small>(2018)</small>
|labor              = 53 million <small>(2020)</small>
|occupations        = Services: 71.4%<br>Industry: 25.4%<br>Agriculture: 3.2%
|occupations        = Services: 71.4%<br>Industry: 25.4%<br>Agriculture: 3.2%
|unemployment        = 4.3% <small>(2018)</small>
|unemployment        = 4.3% <small>(2018)</small>
|industries          =  
|industries          =  
|exports            = 1.95 trillion NSD <small>(2018)</small>
|exports            = NSD 237 billion <small>(2020)</small>
|export-goods        = {{Collapsible list|Automobiles|Pharmaceuticals|Steel|Chemicals|Machinery|Aircraft}}
|export-goods        = {{Collapsible list|Automobiles|Pharmaceuticals|Steel|Chemicals|Machinery|Aircraft}}
|export-partners    =  
|export-partners    =  
|imports            = 1.81 trillion NSD <small>(2018)</small>
|imports            = NSD 195 billion <small>(2020)</small>
|import-goods        = {{Collapsible list|Raw Materials|Foodstuffs|Textiles|Plastics|Oil and Natural Gas}}
|import-goods        = {{Collapsible list|Raw Materials|Foodstuffs|Textiles|Plastics}}
|import-partners    =  
|import-partners    =  
|FDI                =  
|FDI                =  
|debt                = 46% of GDP <small>(2017)</small>
|debt                = 68% of GDP <small>(2020)</small>
|gross external debt =  
|gross external debt =  
|revenue            = 2.37 trillion NSD <small>(2018)</small>
|revenue            = NSD 1.44 trillion <small>(2020)</small>
|expenses            = 2.39 trillion NSD <small>(2018)</small>
|expenses            = NSD 1.47 trillion <small>(2020)</small>
|reserves            =  
|reserves            =  
|credit              =  
|credit              =  
|aid                =  
|aid                =  
| usebelowbox        = no
| presentUS$asdefault = no
}}
}}


The economy of Delkora is a highly-developed {{wp|market socialist}} economy characterized by the predominance of various forms of social ownership of the means of production combined with the exchange of goods and services in a regulated market. Key industries such as energy and natural resources are fully publicly-owned, while in nearly every other industry various forms of social ownership, including public ownership, cooperatives, or communal ownership either predominate or at least constitute a major share of the industry. The country has a high standard of living due to an expansive {{wp|welfare state}}, as well as low levels of income inequality. It consistently scores high on most {{wp|quality of life}} indicators, scoring near the top of measures of general happiness and subjective well-being. Delkora is a member of the [[Common Sphere]].
The '''economy of Delkora''' is a {{wp|market socialism|market socialist economy}}. It is characterised by the predominance of {{wpl|social ownership}}, highly regulated markets, low levels of income inequality, and an expansive {{wpl|welfare state}}. It consistently scores high on most {{wp|quality of life}} indicators, particularly of general happiness and subjective well-being.
 
Delkora's economic performance has historically been very uneven. It was among the first countries in Eracura to fully industrialise, but it was hampered by income maldistribution and poverty. The severity and duration of the 1950s depression was followed by the [[New Kingdom]] program, which brought high levels of economic growth in the 1960s and 1970s. It has maintained relative macroeconomic stability since, but growth rates have declined on average, a feature attributed to the strongly {{wpl|economic interventionism|interventionist}} and {{wpl|Redistribution of income and wealth|redistributive}} policies pursued by several governments.
 
The country has evolved from an industrial economy to one based more on services. Features of its economic model include high tax levels and government spending, exceptionally high {{wpl|union density}}, and use of {{wpl|indicative planning}} mechanisms through the [[Hermes Programme]]. Persistent unresolved issues include lagging rates of reinvestment, {{wpl|capital flight}} risks, and {{wpl|fiscal sustainability}}, particularly a relatively high {{wpl|government debt|public debt}} level incurred by past economic strategies. Delkora is a member of the [[Common Sphere]], within which the majority of its international trade takes place.


==History==
==History==
===Early History===
 
Delkoran society began transitioning away from its nomadic roots around 1500 CE with the formation of agricultural communes known as the ''varden'', which would be the primary social and economic institutions of Delkoran society for several centuries. The varden were characterized by communal ownership of property and {{wp|egalitarian}} social roles. Historians often cite the varden as contributing to the early development of attitudes favoring economic democracy and decentralization. The most successful varden eventually developed into cities and towns that began to abandon their egalitarian founding principles. This transition resulted in the development of private property rights and the subsequent rise of an urban merchant class, although the varden would continue to be important in Delkoran culture and economics going forward.
===Early history===
Delkoran society began transitioning away from its nomadic roots around 1500 CE with the formation of rural communes, which would be the primary social and economic institutions of Delkoran society for several centuries. They were characterized by communal ownership of property and {{wp|egalitarian}} social roles. Historians often cite them as contributing to the early development of attitudes favoring economic democracy and decentralization.  
 
The most successful communes eventually developed into large cities that began to abandon their egalitarian founding principles. This transition resulted in the development of private property rights and the subsequent rise of an urban merchant class, although the communes would continue to be important in Delkoran culture and economics going forward.


===Industrialization===
===Industrialization===
Industrialization began in Delkora around the mid 1700’s. The introduction of the steam engine and innovations in iron making facilitated a rapid increase in worker productivity. Meanwhile, improvements in agricultural equipment helped contribute to major population growth. As a result of industrialization, the cities began to eclipse the varden as the primary drivers of the economy, prompting a transition of Delkoran society away from its agrarian roots. Attracted by the prospect of urban jobs, young people began relocating from the varden in large numbers starting around 1780, and by the turn of the century, most of the population lived in cities and towns.  
Industrialization began in Delkora around the mid-1700s. The introduction of the steam engine and innovations in iron making facilitated a rapid increase in worker productivity. Meanwhile, improvements in agricultural equipment helped contribute to major population growth.  


Aside from the economic consequences of this shift, there were a number of political consequences that would impact Delkoran politics going forward. In particular, as the egalitarian culture of the varden declined as a political force, the country’s aristocracy, whose power and influence had been mostly limited to the cities, accrued a great deal more political power. Throughout the early 1800’s, the aristocracy increasingly sought to extend its influence over the varden, creating a tension in Delkoran society between its urban and rural elements.  
As a result of industrialization, the cities began to eclipse the rural communes as the primary drivers of the economy, prompting a transition of Delkoran society away from its agrarian roots. Attracted by the prospect of urban jobs, young people began relocating from the communes in large numbers starting around 1780, and by the turn of the century, most of the population lived in cities and towns.  
   
===The Brom Program===
By 1850, the negative consequences of the rapid population growth enabled by the industrial revolution began to be felt as cities and towns became increasingly overpopulated, leading to poor living conditions and widespread poverty. This phenomenon was further exacerbated by the large influx of people into the cities in the aftermath of the Delkoran Civil War, which had ravaged much of the countryside. Additionally, lax workplace regulations permitted by Conservative governments throughout the 1850’s and 60’s led to horrific abuses as factory workers were subject to seven day workweeks, dangerous working conditions, starvation wages, and a proliferation of child labor.  


Beginning in the 1860’s, urban industrial workers began organizing to demand reform, but were stymied by laws prohibiting the formation of unions. Nonetheless, various labor groups were formed during the decade, eventually uniting under an umbrella organization known as the United Workers’ Congress of Delkora, the predecessor of the National Labor Party. Throughout the 1870’s, the UWCD organized general strikes throughout the country, which were often met with violent suppression. Still, the labor movement was able to secure widespread support, resulting in the National Labor Party winning a majority in the Federal Parliament in the 1880 Federal Election.  
Aside from the economic consequences of this shift, there were a number of political consequences that would impact Delkoran politics going forward. In particular, as the egalitarian culture of the communes declined as a political force, the country’s aristocracy, whose power and influence had been mostly limited to the cities, accrued a great deal more political power. Throughout the early 1800s, the aristocracy increasingly sought to extend its influence over the communes, creating a tension in Delkoran society between its urban and rural elements.


Chancellor Jordlan Brom implemented a sweeping reform agenda posthumously termed the “Brom Program”, which explicitly protected the right of workers to organize and collectively bargain, implemented workplace reforms, and laid the foundation of the Delkoran welfare state by establishing {{wp|unemployment insurance}} and a national pension program.  
The {{wpl|industrial revolution}} also caused significant unrest as it exacerbated inequality and harsh working conditions. A series of popular uprisings and riots against mechanisation's role in immiseration, symbolised by {{wpl|Swing Riots|destruction of machinery}} as a form of protest, took place in the 19th century, pushing governments of the day to begin undertaking reforms.


===Economic Liberalization and Depression===
===The Brom program and Liberal reforms===
Throughout the 1940’s, the Conservative government of Veidnar Albendor implemented a sweeping agenda of economic liberalization which included tax cuts, a reduction in social security spending, and a weakening of {{wp|competition laws}} that enabled the rise of {{wp|oligopolies}} in a number of important industries. The cumulative effect of these reforms was a major transfer of wealth to the top 10% of wage earners, with this group controlling an estimated 74% of the economy by the early 1950’s.  
By 1850, the negative consequences of the rapid population growth enabled by the industrial revolution began to be felt as cities and towns became increasingly overpopulated, leading to poor living conditions and widespread poverty. This phenomenon was further exacerbated by the large influx of people into the cities in the aftermath of the [[Delkoran Civil War]], which had ravaged much of the countryside. Additionally, lax workplace regulations permitted by Conservative governments throughout the 1850s and 1860s led to horrific abuses as factory workers were subject to seven day workweeks, dangerous working conditions, starvation wages, and a proliferation of child labor.  


Additionally, the rise of oligopolies proved to be disastrous to economy, culminating in the Banking Crisis of 1953, which was caused by the default of a number of the country’s largest employers when a severe recession hit in the early 1950's. This in turn prompted a bank run that led to the insolvency of a number of major banks due to {{wp|financial contagion}}. By late 1953, the economy entered a severe depression, with unemployment eventually reaching as high as 25%.
Beginning in the 1860s, urban industrial workers began organizing to demand reform, but were stymied by laws prohibiting the formation of unions. Nonetheless, various labor groups were formed during the decade, eventually uniting under an umbrella organization known as the United Workers’ Congress of Delkora, the predecessor of the [[National Labor]] party. Throughout the 1870’s, the UWCD organized general strikes throughout the country, which were often met with violent suppression. Still, the labor movement was able to secure widespread support, resulting in [[National Labor]] winning a majority in the Federal Parliament in the 1880 federal election.  


===New Kingdom Program===
Chancellor Magnus Brom implemented a sweeping reform agenda posthumously termed the “Brom Program”, which explicitly protected the right of workers to organize and collectively bargain, implemented workplace reforms, and laid the foundation of the Delkoran welfare state by establishing {{wp|unemployment insurance}} and a national pension program. The [[General Labor Confederation of Delkora]] (LO) was established in 1892.
Implemented by the National Labor governments of Petris Elvensar and Gandymyr Feldengar throughout the 1960's and 70's, the New Kingdom Program marked the beginning of a fundamental transformation of the Delkoran economy, with a goal of pulling the country out of depression and initiating a peaceful transition away from private ownership in the economy to various forms of socialized ownership.  


The first phase of the program was the introduction of a socialized capital market known as the National Common Fund. The federal government undertook a compulsory purchase of all privately held financial instruments and pooled the assets into the NCF, dividing them among numerous publicly-managed investment funds. The NCF effectively nationalized all capital in the country and enabled the government to begin gradually transitioning the economy toward {{wp|worker self-management}}, with many of the firms within the investment funds purchased by the NCF subsequently converted into various forms of cooperatives over the next two decades.  
The outbreak of the [[Siduri War]] and Eracura War in the 1930s benefited the Delkoran economy, as the neutral country was able to significantly increase trade, particularly for industrial products and {{wpl|matériel}} now in high demand. The [[Sofia Westergaard]] government took important steps towards {{wpl|social democracy}}, expanding the welfare state and undertaking {{wpl|public works}} to reduce unemployment and improve infrastructure.


The second phase of the New Kingdom Program consisted of a fundamental restructuring of government fiscal policy. Conservative-era regulations requiring balanced federal budgets were repealed and federal spending priorities changed significantly, leading to major cuts to military spending. Government intervention in the economy to stimulate aggregate demand and ensure low levels of unemployment became the new standard, replacing the laissez-faire policies of the preceding Conservative governments.  
===Economic liberalization and depression===
Throughout the 1940s, the Conservative government of [[Veidnar Albendor]] implemented a sweeping agenda of economic liberalization which included tax cuts, a reduction in social security spending, and a weakening of {{wp|competition laws}} that enabled the rise of {{wp|oligopolies}} in a number of important industries. The cumulative effect of these reforms was a major transfer of wealth to the rich. The worsening inequality affected the economy, particularly after the wartime boom ended and the [[1946 Delkoran Steel Strikes|1946 Steel Strikes]].


The third phase of the program, implemented starting in the mid 1960's, focused on the strengthening of worker’s rights and collective bargaining, requiring {{wp|co-determination}} for all companies over a certain size. Also implemented during this phase were various regulations limiting working hours, requiring paid leave, and requiring a minimum level of employee benefits. As part of the overall effort to expand worker ownership of the economy, laws were adopted promoting the formation of various kinds of worker and consumer cooperatives, as well as extending concepts of communal ownership into new areas of the economy.
Additionally, the rise of oligopolies proved to be disastrous to economy. A severe recession struck in the 1950s, which the Banking Crisis of 1953 turned into a major depression. Unemployment reached a peak of 25% in 1957 and poverty increased significantly. The depression coincided with a period of severe unrest, which included violent riots, a [[Far-left insurgency in Delkora|far-left insurgency]] spearheaded by the [[Labor Underground]], and massive strikes organised by the [[General Labor Confederation of Delkora|LO]] under [[Mireli Sørensen]]'s leadership. Fears of state collapse or a new civil war became widespread.


The fourth and final phase of the program saw the rise of the modern Delkoran welfare state in the late 1960's and into the 1970's. A {{wp|universal basic income}} was implemented in 1968, guaranteeing all citizens a monthly income calculated according to regional costs of living and financed primarily by profits from publicly-owned enterprises. The success of the UBI resulted in it eventually replacing many of the Kingdom’s older social security programs. The fourth phase of the New Kingdom Program also saw a major increase in healthcare and education spending, resulting in all citizens having access free at the point of use to all medically-necessary healthcare and to all levels of public education. Public housing was another top priority, and the construction of large-scale public housing projects in the major cities, combined with {{wp|housing first}} policies, virtually eliminated chronic homelessness in Delkora by the late 1980’s.
===New Kingdom program===
[[National Labor]]'s landslide victory in the [[Delkoran federal election, 1959|1959 federal election]] ushered in a period of prosperity and fundamental economic transformations under the [[New Kingdom]] program.


Many of the core reforms embodied in the New Kingdom Program were embedded in the federal constitution by the Economic Rights Amendment of 1969 passed by the Feldengar government, which states that, “All Delkoran citizens shall have the right to a decent standard of living, including the right to housing, food and water, medical care, old age care, gainful employment, fair compensation for their labor, education, and recreation.” The amendment was intended to prevent a future Conservative government from undoing the New Kingdom reforms, as well as to ensure that the states could not circumvent them.
In its first phase, the program focused on recovery and immediate relief. This was achieved through a massive expansion of {{wpl|social security}}, nationwide {{wpl|public works}} programs, and aggressive nationalisation, significantly increasing the number of [[List of government enterprises of Delkora|government enterprises]] and [[Delkoran administrative agencies|administrative agencies]].


===1983-Present===
With the economic collapse halted and recovery underway, the second phase brought in long-term structural changes. {{wpl|Progressive tax}} rates were significantly hiked, and {{wpl|company law}} reformed to favour {{wpl|cooperative}}s and {{wpl|co-determination}}. The National Industrial Administration was set up to administer {{wpl|economic planning}} and {{wpl|incomes policy|wage and price controls}}. The Cooperative Economy Act of 1965 created {{wpl|employee funds}} and obligated companies to issue new shares to their employees, to achieve a gradual transfer of economic ownership from private shareholders to workers.
Chancellor Larz sar Vellarand came to power in 1983 as leader of Conservative-Agrarian coalition that had campaigned on reversing much of the New Kingdom Program, in particular the high levels of government ownership in the economy, worker self-management mandates, and above all the welfare state, which the Delkoran right argued was wasteful and unsustainable. Although Vellarand and his successor, Uldric Bekenheimer, achieved some small victories through regulatory changes and court battles, neither were able to muster the support necessary to fully dismantle the New Kingdom Program, repeatedly stymied by the Economic Rights Amendment and occasionally even moderate Conservatives within their own coalition, who recognized that many of the New Kingdom’s reforms had strong public support.


The New Kingdom was reaffirmed during the chancellorship of Emma Olymyr from 1994 to 2002, with Olymyr accelerating the transition toward worker self-management and reducing the share of the economy held by private enterprises, which had been allowed to grow under the previous Conservative governments. Her chancellorship is often cited as a pivotal moment for the Conservative Party, when a faction of pro-New Kingdom moderates in the Conservative Party known as the “New Conservatives” emerged as a major political force, challenging the more economically liberal establishment wing of the party. This, combined with the increasing unity of the Delkoran left culminating in the “traffic light coalition” negotiated by current Chancellor Adric Azengaard in 2014, has led political scientists to assert that the core principles of the Delkoran economy are becoming a point of consensus across the political spectrum.
The 1960s and 1970s marked the height of the New Kingdom program, and brought a period of unprecedented prosperity. High economic growth rates were sustained, averaging nearly 8% over the two decades. The expanded welfare state and powerful LO ushered in an era of extraordinary {{wpl|wage compression}} and {{wpl|redistribution of wealth}}. Poverty, inequality, and unemployment all declined dramatically. Delkora [[Delkoran referendum on membership in the Common Sphere, 1965|voted in 1965]] to join the [[Common Sphere]], which became its main trading partner and brought benefits such as implementation of the [[Hermes Programme]] for planning purposes.
 
By the 1970s, the Delkoran workforce was among the best paid, most protected, and best treated on Eracura. It benefited from policies such as the {{wpl|social dividend}}, the {{wpl|sliding wage scale}}, and the replacement of {{wpl|minimum wage}}s with {{wpl|National income policy agreement (Finland)|income policy agreements}}. Many of the core reforms embodied in the New Kingdom program were embedded in the federal constitution by the Economic Rights Amendment of 1976.
 
Most economists see the era as the Delkoran government choosing to prioritise redistribution of wealth over growth. Structural weaknesses remained evident: industrial unrest simmered beneath the surface, as the militant LO under Sørensen pushed for productivity gains to go to workers through wage increases, dampening private reinvestment. The ongoing [[Far-left insurgency in Delkora|far-left insurgency]], sustained {{wpl|deficit spending}} and a growing {{wpl|Current account (balance of payments)|current account deficit}} further worried investors.
 
Delkora's heavy reliance on the CS for trade and economic partnership came under fire; [[Conservative Party (Delkora)|Conservative Party]] leader [[Archibald Bødker]] famously accused [[Geirbjørn Feldengaard]] of "cutting off Delkora from the rest of [[Tyran]]".
 
The high growth rates brought about by economic recovery and reconstruction abated by the late 1970s, and faced the country with a dilemma as its international competitiveness began to decline. Feldengaard's latter National Labor–[[Liberal Party (Delkora)|Liberal Party]] cabinets tried to respond with the ''Tænk stort'' ("Think Big") strategy, which entailed borrowing funds to undertake large-scale industrial projects in order to reduce imports and improve {{wpl|balance of payments}}.
 
The impact of ''Tænk stort'' is hotly debated — several projects were abandoned due to {{wpl|environmentalism|environmentalist}} opposition. The heavy borrowing significantly increased Delkora's {{wpl|national debt}}.
 
===1983–present===
The fracturing of the New Kingdom coalition brought a Conservative–Agrarian coalition to office in 1983 under [[Lars af Vellarand]]. Vellarand sought to curtail much of the New Kingdom program, criticising it as wasteful, unsustainable, and responsible for Delkora's economic stagnation.
 
The government failed to fully dismantle the program as intended, but did pursue policies of {{wpl|fiscal conservatism}}, {{wpl|privatisation}}, and a degree of {{wpl|deregulation}}. It sought to reorient Delkora away from the CS and towards closer economic relations with [[Acrea]], but its centrepiece effort to withdraw from the CS was [[Delkoran referendum on withdrawal from the Common Sphere, 1984|defeated in a 1984 referendum]].
 
The Vellarand government's reforms produced the phenomenon of a [[Early 1990s depression in Delkora#Casino economy|"casino economy"]], marked by heightened speculative activity and a boom in {{wpl|leveraged buyout}}s and {{wpl|corporate raid}}s in the private sector. The economy overheated and collapsed, leading to a [[Early 1990s depression in Delkora|protracted depression in 1991–1994]], the most severe since the 1950s.
 
The depression and the exposure of the [[neoliberal conspiracy]] outraged the electorate and destroyed [[Ulrik Andersen]]'s government, leading to a left-wing victory in the 1994 federal election. The governments of [[Emma Jørgensen]] and [[Kol Vossgaard]] introduced policies to strengthen the cooperative sector, increase {{wpl|environmental sustainability}}, and address the economy's middling performance through {{wpl|Rehn–Meidner model|structural adjustments and active labor market policies}} in the context of the {{wpl|digital revolution}}, with the aim of incentivising long-term investments and productivity gains.
 
The ascent of the moderate [[Conservative Party (Delkora)|New Conservative]] faction under [[Harald Møller]] and the consolidation of a {{wpl|traffic light coalition}} under [[Adric Azengaard]] is considered by political scientists to reflect the acceptance of the New Kingdom program as a cross-party consensus, with major debates now centred around adapting its tenets to contemporary realities.


==Sectors==
==Sectors==
===Primary===
===Primary===
Agriculture, forestry, and mineral extraction collectively account for only about 1.5% of the Delkoran economy and employ about 3.2% of the workforce. A significant portion of agricultural output comes from the varden, whose production meets most of the country’s domestic food needs. Forestry is a major industry in the country, although it is subject to extensive environmental regulations that require replanting at replacement levels for all felling operations and prohibit felling in protected wilderness areas. As a result, Delkora is a net importer of wood products. Mineral extraction is similarly limited by environmental regulations and as a result, the country is a net importer of many raw materials. Coal mining has been banned in Delkora since 2003.  
Agriculture, forestry, and mineral extraction collectively account for only about 1.5% of the Delkoran economy and employ about 3.2% of the workforce. A significant portion of agricultural output comes from rural communes, whose production meets most of the country’s domestic food needs.
 
Forestry is a major industry in the country, although it is subject to extensive environmental regulations that require replanting at replacement levels for all felling operations and prohibit felling in protected wilderness areas. As a result, Delkora is a net importer of wood products. Mineral extraction is similarly limited by environmental regulations and as a result, the country is a net importer of many raw materials. Coal mining has been banned in Delkora since 2003.


===Secondary===
===Secondary===
Industry accounts for about 26% of the economy and employs about 25.4% of the workforce. Scholars typically cite the late 1990’s as the period in which the Delkoran economy began a trend toward deindustrialization as advancements in automation began rendering older, labor-intensive forms of manufacturing obsolete, prompting layoffs of many industrial workers. Nonetheless, the country continues to maintain a strong industrial base in the present day. The Garenfyor Peninsula in eastern Faurelia is one of the most important industrial areas of the country and is home to sprawling steel mills in cities like Fyodonor and Halmodryn.
Industry accounts for about 26% of the economy and employs about 25.4% of the workforce. Scholars typically cite the late 1990s as the period in which the Delkoran economy began a trend toward {{wpl|deindustrialization}} as advancements in automation began rendering older, labor-intensive forms of manufacturing obsolete, prompting layoffs of many industrial workers. Nonetheless, the country continues to maintain a strong industrial base in the present day. The coastal region of [[Førelskov]] is one of the most important industrial areas of the country and is home to sprawling steel mills in cities like Fjødonor and Halmodryn.


===Tertiary===
===Tertiary===
Services account for about 72.5% of the economy and employ about 71.4% of the workforce. The largest categories within the service sector are financial services, retail, entertainment, and logistics. Tourism, especially environmental tourism, has also become a significant contributor to the economy, with Delkora being a popular destination for tourists from throughout Tyran.  
Services account for about 72.5% of the economy and employ about 71.4% of the workforce. The largest categories within the service sector are financial services, retail, entertainment, and logistics. Tourism, especially environmental tourism, has also become a significant contributor to the economy, with Delkora being a popular destination for tourists from throughout Tyran.


==Economic Organization==
==Economic organization==
===National Common Fund===
{{Pie chart
The Delkoran government maintains a socialized capital market known as the National Common Fund that serves as the source of financing for most economic endeavors. Following passage of the National Common Fund Act of 1960, the federal government undertook a compulsory purchase of all privately-held financial instruments, which were then pooled into a National Common Fund that was organized into numerous publicly-managed investment funds. Subsequent amendments to the NCFA decentralized the Fund, establishing state level common funds managed by each Delkoran state subject to federal regulations. While individuals can still start private enterprises, it is legally mandated that they be sold into the National Common Fund once they reach a certain size. Most firms sold into the common funds are subsequently reorganized as worker cooperatives, although certain firms deemed strategically important to the economy remain under public ownership.     
| thumb = right
| caption = Economic ownership in Delkora (2018)
| other =  
| label1 = {{wpl|Public ownership}}
| value1 = 32.8
| color1 = Red
| label2 = {{wp|Collective ownership|Cooperative ownership}}
| value2 = 37.1
| color2 = Magenta
| label3 = {{wp|Private property|Private ownership}}
| value3 = 26.3
| color3 = Yellow
| label4 = {{wp|Communal ownership}}
| value4 = 3.8
| color4 = Purple
}}    


===Labor===
===Labor===
Delkora has one of the highest union densities in Tyran, with over 87% of Delkoran workers registered as members of a labor union and 92% of workers covered by a collective bargaining agreement. In workplaces that are unionized, federal law mandates {{wp|closed shop}} union security agreements. Labor unions across different industries are united under the General Workers' Congress of Delkora, which helps to coordinate collective bargaining and activism. All public and private sector workers have a right to strike, although strike action on the part of certain categories of public workers deemed essential to public safety is subject to restrictions. Most forms of anti-strike action on the part employers, such as lockouts and hiring strikebreakers, are illegal. Additionally, federal law establishes one-tier co-determination for all companies over a certain size, starting at 25% of seats on the board of directors and increasing as the company expands past certain thresholds.  
Delkora has one of the highest union densities in Tyran, with over 87% of Delkoran workers registered as members of a labor union and 92% of workers covered by a collective bargaining agreement. Federal law mandates {{wp|closed shop}} or {{wp|union shop}} union security agreements. Labor unions across different industries are united under the [[General Labor Confederation of Delkora]], which helps to coordinate collective bargaining and activism.
 
All public and private sector workers have a right to strike, although strike action on the part of certain categories of public workers deemed essential to public safety is subject to restrictions. Most forms of anti-strike action on the part employers, such as lockouts and hiring strikebreakers, are illegal. Additionally, federal law mandates {{wp|co-determination}} for {{wp|Public company|publicly traded}} companies, starting at 25% of seats on the board of supervisors for companies employing over 500 people, 50% for those employing over 5,000 people, and 75% for those employing over 10,000.
 
===Collectives and communal ownership===
Various forms of {{wp|collective ownership}}, including worker cooperatives, consumer cooperatives, and hybrid cooperatives constitute about 37% of the economy. Under Delkoran corporation law, all members of a cooperative each own a single nontransferable share of the cooperative, and shares can only be held by members of the cooperative. Cooperatives are governed by a board of instantly-revocable delegates comprised of members elected by a vote of all members of the cooperative. {{wp|Communal ownership}} constitutes 3.8% of the economy, with the largest subset of this category being property owned by the communes.
 
===Planning===
{{wpl|Indicative planning}} is a cornerstone of economic policy, carried out through the [[Hermes Programme]]. The mixture of planning mechanisms and {{wpl|market economy}} created by the New Kingdom's strategy of long-term change is a distinctive feature of the economy, and has occasioned criticism for its negative effect on growth rates.
 
==Fiscal policy==
{{main|Taxation in Delkora}}
The largest categories of government spending include healthcare and education, followed by social security programs. A primary goal of government fiscal policy is large scale income redistribution to ensure low levels of income inequality. In 2020, Delkoran government expenditures amounted to 52% of GDP, while revenue amounted to 51%. 
 
Accordingly, the Delkoran tax system is highly progressive, with personal rates ranging from 5% to 85%. The corporate tax rate ranges from 15% to 40%, with individual dividends and capital gains taxed at higher rates. Various redistributive taxes are levied by the federal government, including a {{wp|wealth tax}}, an {{wp|inheritance tax}}, and a {{wp|financial transaction tax}}. A federal {{wp|carbon tax}} is applied to greenhouse gas emissions by corporations.
 
Other taxes include {{wp|Value-added tax|VAT}}, {{wp|Excise tax|excise taxes}}, and {{wp|Stamp duty|stamp duties}} for [[States of Delkora|states]], and {{wp|land value tax}} and {{wp|Property tax|property taxes}} for [[Local government in Delkora|municipalities]]. Both state and local governments receive transfer payments from the [[Delkoran administrative agencies#Ministry of Finance|Federal Equalization Fund Administration]] intended to offset disparities in fiscal capacity and ensure that social services are equitably funded in all parts of the country.
 
The taxation system has been a key factor in maintaining Delkora's quality of life indicators, but also forces the public sector to take a greater role in reinvestment due to its effect on the private sector.


===Collectives and Communal Ownership===
Delkora operates within the framework of the [[Common Sphere#Policies|Common Tax Compliance System]], which requires all Delkoran citizens to file {{wpl|tax return}}s even if they are not resident, and all foreign financial institutions to report the assets and identities of persons connected to Delkora to the authorities.
Various forms of {{wp|collective ownership}}, including worker cooperatives, consumer cooperatives, and hybrid cooperatives constitute about 51% of the economy. Under Delkoran corporation law, all members of a cooperative each own a single nontransferable share of the cooperative, and shares can only be held by members of the cooperative. Cooperatives are governed by a board of instantly-revocable delegates comprised of members elected by a vote of all members of the cooperative. {{wp|Communal ownership}} constitutes 3% of the economy, with the largest subset of this category being property owned by the varden.          


==Fiscal Policy==
Delkora's {{wpl|public debt}}, at 68% of the GDP in 2020, remains high for Eracura, a legacy of the ''Tænk stort'' projects and governments refusing to turn to {{wpl|austerity}} policies to reduce it, instead favouring {{wpl|financial repression}} policies to reduce it.
The largest categories of government spending include healthcare and education, followed by social security programs. A primary goal of government fiscal policy is large scale income redistribution to ensure low levels of income inequality. Accordingly, the Delkoran tax system is highly progressive, with personal rates ranging from 10% to 95%, while corporate taxes range from rates of around 15% applied to most small businesses, up to a 35% rate applied to the largest corporations. Progressive wealth and inheritance taxes are also in place. Additionally, a national VAT tax of 10% is applied to most purchases, with a lower rate of 5% applied to certain vital goods like food, medicine, and clothing. In recent decades, numerous {{wp|pigovian taxes}} have been implemented, including a carbon tax and various taxes on the consumption of unhealthy foods and drugs. Delkoran states also have the authority to levy taxes, with most of their revenue drawn from land and property taxes.      


==Banking and Monetary Policy==
==Banking and monetary policy==
The financial industry is entirely socialized, with all institutions either publicly-owned by the National Common Fund or organized as cooperatives. The national currency of Delkora is the veld, which operates according to a managed float regime relative to other Common Sphere currencies. The Central Bank of Delkora is responsible for conducting monetary policy and has a statutory responsibility to ensure price stability and keep unemployment low. The Central Bank is an independent federal agency, but is subject to oversight from the Ministry of Finance.
The financial industry is heavily socialized, characterized by the predominance of state ownership and credit unions. The national currency of Delkora is the veld, which operates a {{wpl|crawling peg}} as part of the [[Common Sphere#Policies|Common Monetary System]].


==Welfare State==
The Central Bank of Delkora is responsible for conducting monetary policy and has a statutory responsibility to ensure price stability and keep unemployment low. The Central Bank is an independent federal agency, but is subject to oversight from the Ministry of Finance. 
Delkora has long maintained an expansive and comprehensive welfare state that guarantees a minimum standard of living to all citizens. Key elements of this system include single-payer healthcare that is free at the point of use for all permanent residents, free public education from preschool through university, well-funded state pensions, and a universal basic income administered to all adult citizens that is calculated according to the cost of living for different areas of the country.  
 
==Welfare state==
Delkora has long maintained an expansive and comprehensive welfare state that guarantees a minimum standard of living to all citizens. Key elements of this system include single-payer healthcare that is free for all at the point of use, free public education from preschool through university, well-funded state pensions, and a social dividend program.


==Trade==
==Trade==
Delkora maintains a small trade surplus, with its main trading partners being the other Common Sphere countries. The economy is characterized by a high degree of technological innovation, contributing to highly-profitable export industries include automobiles, pharmaceuticals, renewable energy, and steel. Major import commodities include raw materials, foodstuffs, and textiles. Imports originating from outside the Common Sphere are subject to relatively high tariffs, with the exception of countries with which Delkora has negotiated bilateral trade agreements.
Delkora maintains a small trade surplus, with its main trading partners being the other Common Sphere countries. Its economy is characterized by a high degree of technological innovation, contributing to highly-profitable export industries include automobiles, pharmaceuticals, renewable energy, and steel. Major import commodities include raw materials, foodstuffs, and textiles. Hefty tariffs are imposed on countries with lax environmental and labor standards, as well as those that engage in {{wp|Dumping (pricing policy)|dumping}}.
 
Outside the CS, one of Delkora's significant trading partners is neighbouring [[Acrea]]. Economic ties between the two countries have been historically affected by Delkora's entrance to the CS and subsequent turn towards {{wpl|protectionism}}, but have begun a revival in recent decades.


[[Category:Delkora]]
[[Category:Delkora]]
[[Category:Tyran]]
[[Category:Economy of Delkora]]

Latest revision as of 07:12, 9 October 2021

Economy of Delkora
Flag of Delkora.png
Flag of Delkora
CurrencyVeld (⊻)
Common Monetary System
Calendar year
Trade organisations
Common Sphere
Statistics
GDPNSD 2.82 trillion (2020)
GDP growth
2.4% (2020)
GDP per capita
NSD 29,300 (2020)
GDP by sector
Services: 72.5%
Industry: 26%
Agriculture: 1.5%
Population below poverty line
2.6% (2020)
24.7 (2020)
Labour force
53 million (2020)
Labour force by occupation
Services: 71.4%
Industry: 25.4%
Agriculture: 3.2%
Unemployment4.3% (2018)
External
ExportsNSD 237 billion (2020)
Export goods
List
  • Automobiles
  • Pharmaceuticals
  • Steel
  • Chemicals
  • Machinery
  • Aircraft
ImportsNSD 195 billion (2020)
Import goods
List
  • Raw Materials
  • Foodstuffs
  • Textiles
  • Plastics
Public finances
68% of GDP (2020)
RevenuesNSD 1.44 trillion (2020)
ExpensesNSD 1.47 trillion (2020)

The economy of Delkora is a market socialist economy. It is characterised by the predominance of social ownership, highly regulated markets, low levels of income inequality, and an expansive welfare state. It consistently scores high on most quality of life indicators, particularly of general happiness and subjective well-being.

Delkora's economic performance has historically been very uneven. It was among the first countries in Eracura to fully industrialise, but it was hampered by income maldistribution and poverty. The severity and duration of the 1950s depression was followed by the New Kingdom program, which brought high levels of economic growth in the 1960s and 1970s. It has maintained relative macroeconomic stability since, but growth rates have declined on average, a feature attributed to the strongly interventionist and redistributive policies pursued by several governments.

The country has evolved from an industrial economy to one based more on services. Features of its economic model include high tax levels and government spending, exceptionally high union density, and use of indicative planning mechanisms through the Hermes Programme. Persistent unresolved issues include lagging rates of reinvestment, capital flight risks, and fiscal sustainability, particularly a relatively high public debt level incurred by past economic strategies. Delkora is a member of the Common Sphere, within which the majority of its international trade takes place.

History

Early history

Delkoran society began transitioning away from its nomadic roots around 1500 CE with the formation of rural communes, which would be the primary social and economic institutions of Delkoran society for several centuries. They were characterized by communal ownership of property and egalitarian social roles. Historians often cite them as contributing to the early development of attitudes favoring economic democracy and decentralization.

The most successful communes eventually developed into large cities that began to abandon their egalitarian founding principles. This transition resulted in the development of private property rights and the subsequent rise of an urban merchant class, although the communes would continue to be important in Delkoran culture and economics going forward.

Industrialization

Industrialization began in Delkora around the mid-1700s. The introduction of the steam engine and innovations in iron making facilitated a rapid increase in worker productivity. Meanwhile, improvements in agricultural equipment helped contribute to major population growth.

As a result of industrialization, the cities began to eclipse the rural communes as the primary drivers of the economy, prompting a transition of Delkoran society away from its agrarian roots. Attracted by the prospect of urban jobs, young people began relocating from the communes in large numbers starting around 1780, and by the turn of the century, most of the population lived in cities and towns.

Aside from the economic consequences of this shift, there were a number of political consequences that would impact Delkoran politics going forward. In particular, as the egalitarian culture of the communes declined as a political force, the country’s aristocracy, whose power and influence had been mostly limited to the cities, accrued a great deal more political power. Throughout the early 1800s, the aristocracy increasingly sought to extend its influence over the communes, creating a tension in Delkoran society between its urban and rural elements.

The industrial revolution also caused significant unrest as it exacerbated inequality and harsh working conditions. A series of popular uprisings and riots against mechanisation's role in immiseration, symbolised by destruction of machinery as a form of protest, took place in the 19th century, pushing governments of the day to begin undertaking reforms.

The Brom program and Liberal reforms

By 1850, the negative consequences of the rapid population growth enabled by the industrial revolution began to be felt as cities and towns became increasingly overpopulated, leading to poor living conditions and widespread poverty. This phenomenon was further exacerbated by the large influx of people into the cities in the aftermath of the Delkoran Civil War, which had ravaged much of the countryside. Additionally, lax workplace regulations permitted by Conservative governments throughout the 1850s and 1860s led to horrific abuses as factory workers were subject to seven day workweeks, dangerous working conditions, starvation wages, and a proliferation of child labor.

Beginning in the 1860s, urban industrial workers began organizing to demand reform, but were stymied by laws prohibiting the formation of unions. Nonetheless, various labor groups were formed during the decade, eventually uniting under an umbrella organization known as the United Workers’ Congress of Delkora, the predecessor of the National Labor party. Throughout the 1870’s, the UWCD organized general strikes throughout the country, which were often met with violent suppression. Still, the labor movement was able to secure widespread support, resulting in National Labor winning a majority in the Federal Parliament in the 1880 federal election.

Chancellor Magnus Brom implemented a sweeping reform agenda posthumously termed the “Brom Program”, which explicitly protected the right of workers to organize and collectively bargain, implemented workplace reforms, and laid the foundation of the Delkoran welfare state by establishing unemployment insurance and a national pension program. The General Labor Confederation of Delkora (LO) was established in 1892.

The outbreak of the Siduri War and Eracura War in the 1930s benefited the Delkoran economy, as the neutral country was able to significantly increase trade, particularly for industrial products and matériel now in high demand. The Sofia Westergaard government took important steps towards social democracy, expanding the welfare state and undertaking public works to reduce unemployment and improve infrastructure.

Economic liberalization and depression

Throughout the 1940s, the Conservative government of Veidnar Albendor implemented a sweeping agenda of economic liberalization which included tax cuts, a reduction in social security spending, and a weakening of competition laws that enabled the rise of oligopolies in a number of important industries. The cumulative effect of these reforms was a major transfer of wealth to the rich. The worsening inequality affected the economy, particularly after the wartime boom ended and the 1946 Steel Strikes.

Additionally, the rise of oligopolies proved to be disastrous to economy. A severe recession struck in the 1950s, which the Banking Crisis of 1953 turned into a major depression. Unemployment reached a peak of 25% in 1957 and poverty increased significantly. The depression coincided with a period of severe unrest, which included violent riots, a far-left insurgency spearheaded by the Labor Underground, and massive strikes organised by the LO under Mireli Sørensen's leadership. Fears of state collapse or a new civil war became widespread.

New Kingdom program

National Labor's landslide victory in the 1959 federal election ushered in a period of prosperity and fundamental economic transformations under the New Kingdom program.

In its first phase, the program focused on recovery and immediate relief. This was achieved through a massive expansion of social security, nationwide public works programs, and aggressive nationalisation, significantly increasing the number of government enterprises and administrative agencies.

With the economic collapse halted and recovery underway, the second phase brought in long-term structural changes. Progressive tax rates were significantly hiked, and company law reformed to favour cooperatives and co-determination. The National Industrial Administration was set up to administer economic planning and wage and price controls. The Cooperative Economy Act of 1965 created employee funds and obligated companies to issue new shares to their employees, to achieve a gradual transfer of economic ownership from private shareholders to workers.

The 1960s and 1970s marked the height of the New Kingdom program, and brought a period of unprecedented prosperity. High economic growth rates were sustained, averaging nearly 8% over the two decades. The expanded welfare state and powerful LO ushered in an era of extraordinary wage compression and redistribution of wealth. Poverty, inequality, and unemployment all declined dramatically. Delkora voted in 1965 to join the Common Sphere, which became its main trading partner and brought benefits such as implementation of the Hermes Programme for planning purposes.

By the 1970s, the Delkoran workforce was among the best paid, most protected, and best treated on Eracura. It benefited from policies such as the social dividend, the sliding wage scale, and the replacement of minimum wages with income policy agreements. Many of the core reforms embodied in the New Kingdom program were embedded in the federal constitution by the Economic Rights Amendment of 1976.

Most economists see the era as the Delkoran government choosing to prioritise redistribution of wealth over growth. Structural weaknesses remained evident: industrial unrest simmered beneath the surface, as the militant LO under Sørensen pushed for productivity gains to go to workers through wage increases, dampening private reinvestment. The ongoing far-left insurgency, sustained deficit spending and a growing current account deficit further worried investors.

Delkora's heavy reliance on the CS for trade and economic partnership came under fire; Conservative Party leader Archibald Bødker famously accused Geirbjørn Feldengaard of "cutting off Delkora from the rest of Tyran".

The high growth rates brought about by economic recovery and reconstruction abated by the late 1970s, and faced the country with a dilemma as its international competitiveness began to decline. Feldengaard's latter National Labor–Liberal Party cabinets tried to respond with the Tænk stort ("Think Big") strategy, which entailed borrowing funds to undertake large-scale industrial projects in order to reduce imports and improve balance of payments.

The impact of Tænk stort is hotly debated — several projects were abandoned due to environmentalist opposition. The heavy borrowing significantly increased Delkora's national debt.

1983–present

The fracturing of the New Kingdom coalition brought a Conservative–Agrarian coalition to office in 1983 under Lars af Vellarand. Vellarand sought to curtail much of the New Kingdom program, criticising it as wasteful, unsustainable, and responsible for Delkora's economic stagnation.

The government failed to fully dismantle the program as intended, but did pursue policies of fiscal conservatism, privatisation, and a degree of deregulation. It sought to reorient Delkora away from the CS and towards closer economic relations with Acrea, but its centrepiece effort to withdraw from the CS was defeated in a 1984 referendum.

The Vellarand government's reforms produced the phenomenon of a "casino economy", marked by heightened speculative activity and a boom in leveraged buyouts and corporate raids in the private sector. The economy overheated and collapsed, leading to a protracted depression in 1991–1994, the most severe since the 1950s.

The depression and the exposure of the neoliberal conspiracy outraged the electorate and destroyed Ulrik Andersen's government, leading to a left-wing victory in the 1994 federal election. The governments of Emma Jørgensen and Kol Vossgaard introduced policies to strengthen the cooperative sector, increase environmental sustainability, and address the economy's middling performance through structural adjustments and active labor market policies in the context of the digital revolution, with the aim of incentivising long-term investments and productivity gains.

The ascent of the moderate New Conservative faction under Harald Møller and the consolidation of a traffic light coalition under Adric Azengaard is considered by political scientists to reflect the acceptance of the New Kingdom program as a cross-party consensus, with major debates now centred around adapting its tenets to contemporary realities.

Sectors

Primary

Agriculture, forestry, and mineral extraction collectively account for only about 1.5% of the Delkoran economy and employ about 3.2% of the workforce. A significant portion of agricultural output comes from rural communes, whose production meets most of the country’s domestic food needs.

Forestry is a major industry in the country, although it is subject to extensive environmental regulations that require replanting at replacement levels for all felling operations and prohibit felling in protected wilderness areas. As a result, Delkora is a net importer of wood products. Mineral extraction is similarly limited by environmental regulations and as a result, the country is a net importer of many raw materials. Coal mining has been banned in Delkora since 2003.

Secondary

Industry accounts for about 26% of the economy and employs about 25.4% of the workforce. Scholars typically cite the late 1990s as the period in which the Delkoran economy began a trend toward deindustrialization as advancements in automation began rendering older, labor-intensive forms of manufacturing obsolete, prompting layoffs of many industrial workers. Nonetheless, the country continues to maintain a strong industrial base in the present day. The coastal region of Førelskov is one of the most important industrial areas of the country and is home to sprawling steel mills in cities like Fjødonor and Halmodryn.

Tertiary

Services account for about 72.5% of the economy and employ about 71.4% of the workforce. The largest categories within the service sector are financial services, retail, entertainment, and logistics. Tourism, especially environmental tourism, has also become a significant contributor to the economy, with Delkora being a popular destination for tourists from throughout Tyran.

Economic organization

Economic ownership in Delkora (2018)

  Public ownership (32.8%)
  Cooperative ownership (37.1%)
  Private ownership (26.3%)
  Communal ownership (3.8%)

Labor

Delkora has one of the highest union densities in Tyran, with over 87% of Delkoran workers registered as members of a labor union and 92% of workers covered by a collective bargaining agreement. Federal law mandates closed shop or union shop union security agreements. Labor unions across different industries are united under the General Labor Confederation of Delkora, which helps to coordinate collective bargaining and activism.

All public and private sector workers have a right to strike, although strike action on the part of certain categories of public workers deemed essential to public safety is subject to restrictions. Most forms of anti-strike action on the part employers, such as lockouts and hiring strikebreakers, are illegal. Additionally, federal law mandates co-determination for publicly traded companies, starting at 25% of seats on the board of supervisors for companies employing over 500 people, 50% for those employing over 5,000 people, and 75% for those employing over 10,000.

Collectives and communal ownership

Various forms of collective ownership, including worker cooperatives, consumer cooperatives, and hybrid cooperatives constitute about 37% of the economy. Under Delkoran corporation law, all members of a cooperative each own a single nontransferable share of the cooperative, and shares can only be held by members of the cooperative. Cooperatives are governed by a board of instantly-revocable delegates comprised of members elected by a vote of all members of the cooperative. Communal ownership constitutes 3.8% of the economy, with the largest subset of this category being property owned by the communes.

Planning

Indicative planning is a cornerstone of economic policy, carried out through the Hermes Programme. The mixture of planning mechanisms and market economy created by the New Kingdom's strategy of long-term change is a distinctive feature of the economy, and has occasioned criticism for its negative effect on growth rates.

Fiscal policy

Main article: Taxation in Delkora

The largest categories of government spending include healthcare and education, followed by social security programs. A primary goal of government fiscal policy is large scale income redistribution to ensure low levels of income inequality. In 2020, Delkoran government expenditures amounted to 52% of GDP, while revenue amounted to 51%.

Accordingly, the Delkoran tax system is highly progressive, with personal rates ranging from 5% to 85%. The corporate tax rate ranges from 15% to 40%, with individual dividends and capital gains taxed at higher rates. Various redistributive taxes are levied by the federal government, including a wealth tax, an inheritance tax, and a financial transaction tax. A federal carbon tax is applied to greenhouse gas emissions by corporations.

Other taxes include VAT, excise taxes, and stamp duties for states, and land value tax and property taxes for municipalities. Both state and local governments receive transfer payments from the Federal Equalization Fund Administration intended to offset disparities in fiscal capacity and ensure that social services are equitably funded in all parts of the country.

The taxation system has been a key factor in maintaining Delkora's quality of life indicators, but also forces the public sector to take a greater role in reinvestment due to its effect on the private sector.

Delkora operates within the framework of the Common Tax Compliance System, which requires all Delkoran citizens to file tax returns even if they are not resident, and all foreign financial institutions to report the assets and identities of persons connected to Delkora to the authorities.

Delkora's public debt, at 68% of the GDP in 2020, remains high for Eracura, a legacy of the Tænk stort projects and governments refusing to turn to austerity policies to reduce it, instead favouring financial repression policies to reduce it.

Banking and monetary policy

The financial industry is heavily socialized, characterized by the predominance of state ownership and credit unions. The national currency of Delkora is the veld, which operates a crawling peg as part of the Common Monetary System.

The Central Bank of Delkora is responsible for conducting monetary policy and has a statutory responsibility to ensure price stability and keep unemployment low. The Central Bank is an independent federal agency, but is subject to oversight from the Ministry of Finance.

Welfare state

Delkora has long maintained an expansive and comprehensive welfare state that guarantees a minimum standard of living to all citizens. Key elements of this system include single-payer healthcare that is free for all at the point of use, free public education from preschool through university, well-funded state pensions, and a social dividend program.

Trade

Delkora maintains a small trade surplus, with its main trading partners being the other Common Sphere countries. Its economy is characterized by a high degree of technological innovation, contributing to highly-profitable export industries include automobiles, pharmaceuticals, renewable energy, and steel. Major import commodities include raw materials, foodstuffs, and textiles. Hefty tariffs are imposed on countries with lax environmental and labor standards, as well as those that engage in dumping.

Outside the CS, one of Delkora's significant trading partners is neighbouring Acrea. Economic ties between the two countries have been historically affected by Delkora's entrance to the CS and subsequent turn towards protectionism, but have begun a revival in recent decades.

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