Economy of Gylias
|1 March — 28/29 February|
|GDP||NSD 303,5 billion (PPP, 2020)|
GDP per capita
|NSD 12,800 (PPP, 2020)|
GDP by sector
Population below poverty line
|16 million (2020)|
Labour force by occupation
The economy of Gylias is a Lange model market socialist economy. Strategic areas and industries are publicly owned, and all companies are cooperatives. Cornerstones of the economy include workers' self-management, decentralised planning, prices and capital allocation set by public bodies, the non-capitalist application of market mechanisms, and pervasive redistribution.
Gylias is a developed country with a mixed economy, based on services and industry. Although the GDP per capita is slightly below the Sidurian average, the country has very high standard of living and quality of life indicators, credited to its strongly integrated social security and low 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 Tyranian economy, and various controls and non-tarriff barriers restrain the penetration of international companies into its domestic market.
- 1 History
- 2 Geography and resources
- 3 Sectors
- 4 Economic organisation
- 5 Financial system
- 6 Trade
- 7 Income and wealth distribution
- 8 Regional development
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 palace economy between the 9th and 4th centuries BCE, which was wiped out by a 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 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 low population of the Liúşai League and settlement patterns helped keep inequality relatively low, preventing the emergence of feudalism. Slavery was not practiced. The invention and spread of coinage further developed the states' economies, allowing a significant expansion of domestic and foreign commerce. Handicraft industries emerged, especially in working with wood and metals. The degree of monetisation of the Gylic economies was limited, with barter, payment in kind, and 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.
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 aristocracy. The destruction of infrastructure and disruption of trade networks amplified a severe 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 mutual organisations, cooperatives, benefit societies, clandestine education, and a press that helped disseminate radical political and social ideas.
Cacerta successfully 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 activist government of Donatella Rossetti spurred industrial development and created an 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, socialism, and communism were the most prominent.
During the Liberation War, the 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.
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. 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 subsidiarity. Reconstruction was financed through federal deficit spending, the issuing of bonds, nationwide savings and resource mobilisation movements, and the use of demurrage-based local currencies.
The Free Territories' economic models were implemented throughout Gylias, with local and regional currencies pegged to the 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 agricultural cooperatives as the basis of the agricultural sector.
- The socialisation of the economy, achieved by transforming private enterprises into cooperatives, administered by workers' self-management.
- The nationalisation of key sectors of the economy, including natural resources, transportation, infrastructure, and telecommunications. The resulting public organisations were also administered by workers' self-management.
- The implementation of price controls based on the Lange model, set by the National Prices Board, and the funneling of investment through the National Capital Investment Board.
- The use of indicative planning mechanisms to achieve coordination between autonomous cooperatives and equal development of Gylias' regions.
At the same time, a comprehensive and generous social security system was built, which included numerous support payments (such as unemployment, disabilities, family support, and pensions) and services (such as universal health care and public education).
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 10,6%, 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 anarcho-communist aims of the Golden Revolution. One of the few significant heavy industries was shipbuilding, capitalising on age-old Gylic maritime traditions.
Light industries dominated Gylian manufacturing, particularly the production of consumer goods. The manufacture of clothing and jewellery became one of the strongest sectors of the economy, catering to and fueling the emergence of an ideal of socialised luxury. Massive construction activity and public works successfully improved Gylian infrastructure and built modernised facilities nationwide. The services sector experienced rapid development, particularly tourism.
|Average GDP growth by decade|
|Source: National Bank of Gylias data (2020)|
Two crucial contributors to economic growth developed in the 1960s. The Hermes Programme, an ambitious system of using 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 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 complementary currencies and local currencies circulated at parity with the þaler, creating a parallel currency system marked by high 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 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 social and 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 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 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 -2,0% growth rate in 1984. The þaler was destabilised and fell against other currencies, creating a dual exchange rate and putting pressure on its participation in the Common Monetary System.
The economic standstill was cushioned by the country's strong 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 automation.
The crisis began to ebb in 1986, with the inauguration of Filomena Pinheiro's 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.
The Mathilde Vieira government, taking office in 1990, launched an ambitious program of public works and mildly liberal reforms to rejuvenate the economy, notably including the Social Partnership Program. Much of the stimulus spending was directed towards upgrades of transport infrastructure: major renovations and expansions of roads, railroads (particularly high-speed rail), public transport, and cycling infrastructure were carried out.
The other major component of the stimulus was information and communications technology and the internet: programs were implemented to achieve universal internet access, from installing a nationwide network of high-speed connections to regulating the internet as a public utility, to increasing computer production and providing computer literacy courses through public education.
The stimulus succeeded in returning Gylias to economic growth. Already in 1990, the economy grew by 4,4%, 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 7,6% 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 science policy revitalised the science and technology sector, which stimulated the growth of the biotechnology sector.
Environmentalism became a prominent aspect of economic policy in the 1990s, reflecting the strength of the Green Party. Aishwarya Devi, cabinet minister from 1990 to 2008, carried out a difficult policy of reducing consumption for sustainability purposes, while not affecting the domestic demand that drove economic growth.
This was accomplished through the implementation of various ecotaxes, taking advantage of infrastructure upgrades to incentivise hybrid and electric cars, and developing the sustainable energy sector. Nuclear power, solar power, and wind power grew substantially during the 1990s and 2000s, and today most of Gylias' energy needs are met from 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 cooperative democracy and decentralised planning, the necessity of degrowth for sustainability purposes, the value of new economic experiments, and what transformations would be necessary in the future.
Geography and resources
Gylias possesses deposits of gold, silver, copper, nickel, potash, and some iron. These are mostly concentrated in the mountainous north. Rock salt reserves are found in various hilly areas, extracted through salt mining. Salt is also extracted in coastal areas through salt evaporation ponds.
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 m3 in 2019, most of which was used for industrial purposes.
Agriculture's importance to the economy declined after the economic boom. It accounts for 4,1% of GDP and employs 5,4% of the workforce as of 2020.
Agriculture is highly subsidised and protected, and policies favour small-scale cultivation. Collective farming is the norm, with the majority of agricultural land in common ownership and agricultural cooperatives carrying out farming. An individual is only allowed to possess as much land as they can personally use. 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.
- Cash crops for export — sugar, cocoa, coffee, banana, coconuts, tobacco, rubber, and tropical fruits.
Agriculture is governed by a supply management policy. The Directorate of Supply Management controls supply to ensure stable prices for farmers and consumers. The Agricultural Produce Marketing Board is the 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.
Animal husbandry is strongly controlled due to strict animal welfare legislation. Animal slaughter is illegal. Animals must die natural deaths before being made into food, resulting in subsidies for farmers. Common 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 agricultural sector benefited from extensive mechanisation and application of 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, RYU and scouting activities, experiential education in agriculture, and various ecovillage and back-to-the-land movements. A large-scale shift towards organic farming occured in the 1990s, and organic urban agriculture has also grown significantly.
Approximately 40% of land is used for agriculture, and Gylias is largely self-sufficient in food.
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 Inspectorate of Competition and directions provided by the Office of Industrial Production Coordination.
Gylias' energy industry is dominated by renewable energy, which supplies 99% of electricity. Leading energy sources include hydroelectricity, thorium-based nuclear power, solar power and wind farms. Gylias has one of the largest recycling industries in Tyran, and is a notable importer of waste from other countries.
Mining is mostly concentrated in mountainous areas. Natural resources are publicly owned.
Light industry and handicrafts dominate the industrial sector. Top manufacturing sectors include clothing and textiles, jewellery, computers, consumer electronics, wood and metal products, food processing (including the sugar industry), cement, fertiliser, rubber, and tobacco.
High-technology industries have grown rapidly since the 1990s, with biotechnology experiencing notable development. Gylias has a sizeable 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.
The service sector is the largest sector of the Gylian economy, accounting for 70,7% of GDP as of 2020. Major industries include creative, cultural and entertainment, transportation, telecommunications and ICT, retail, and leisure.
Gylias is one of the most visited countries in Siduri, and has a highly developed tourism sector. It is home to cities of cultural interest, beaches and seaside resorts, ski resorts, and national parks and nature reserves. The country's permissive society has also been a magnet for tourism, especially in sex work and drug distribution.
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 stock exchange, and the National Bank of Gylias is the central bank. Overall, Gylias' financial system is sound, well-regulated, and cautious.
Gylias enjoys high technological development in certain fields, and research and development efforts form an integral part of the economy. Scientific research is notably focused on reducing working time through automation and increasing sustainability. The Institute for the Protection of Leisure is the largest publicly-owned research institute. Its work has resulted in both mass automation to reduce working time and the preservation of service occupations that provide patterns of civilised sociability, such as elevator attendants, tray vendors, tea servers, filling station attendants, telephone operators, and paid dance partners.
Gylias' economy has been heavily influenced by anarchism, and fuses aspects of multiple economic systems. It has variously been described as a solidarity economy, self-managed economy, social economy, sharing economy, decentralised economy, participatory economy, and cooperative commonwealth; the only consensus is that it is anti-capitalist.
Gylias has a robust cooperative movement with a long tradition. Cooperatives became the basis of the Free Territories' economy, and have the same role in Gylias. The Economic Code requires any company created in Gylias be a cooperative. Cooperative ownership is the predominant form of economic ownership: it represents 70% of the economy, according to the Bureau of Statistics and Accounting.
As all companies are cooperatives, they are organised by workers' self-management, governed by various models of workplace democracy, and operate as not-for-profit entities in practice. Profits are distributed to employees equally as social dividends, while those of public organisations are distributed as public dividends. Companies form cooperative federations 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.
The cooperative movement in turn has driven the emergence of a powerful consumer movement. It encompasses multiple consumer organisations, confederated into the Consumers' Union. The movement's vigorous activism and education have been a driving force behind Gylias' consumer protection laws, which are among the strictest in Tyran.
The Consumers' Union serves as the country's 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, environmentalism has become one of the defining concerns of the consumer movement.
Gylias' strong labour movement is reflected in one of the highest unionisation rates in Tyran, and among the lowest average working hours per year. Enrollment in a 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 national trade union centre.
In accordance with the Lange model, prices are set by the National Prices Board based on existing supply and demand. The NPB's approach seeks to achieve 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 inflation and 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 consumer price index.
Decentralised planning is the basis of Gylian economic management. Since the late 1980s, the expansion of ICT and the Internet have brought an even larger degree of popular participation in planning and budgeting.
The central vehicle for planning is the Hermes Programme. A cybernetic 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. 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 tradition of applying scientific and university research to improve quality of life dates back to the Alscian efficiency movement and the extensive mobilisation of agronomy to support the Free Territories' agriculture.
Supported by Gylias' extensive university sector and scientific research, 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 sustainable development as a fundamental principle.
While the lack of heavy industry and Golden Revolution phenomena such as ecovillages made Gylias' economy historically have a low environmental impact, the emergence of an explicit environmental movement and the Green Party's entrance into government have shaped environmental consciousness and policy.
The economic transformations of the 1990s had a notable green economy component. Renewable energy became the predominant source of energy, and an extensive recycling system was implemented nationwide. A permanent shift in consumer behaviour was engineered through various campaigns, resulting in reduction of consumption, massive growth in collaborative consumption, and renewed emphasis on sustainable and green consumption.
Recent governments have implemented policies to make the Gylian economy a completely 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 free market; for that reason, Iana Rynai's term "emancipated markets" is generally preferred.
The prevalent norms of generalised reciprocity are manifested in the presence of gift economy characteristics within the Gylian economic system. A widespread system of 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 free shops, second-hand shops, flea markets, jumble sales, car boot sales, garage sales, used bookstores, popular libraries, and infoshops.
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 self-employed Gylians, together with artisans (who may double as merchants) and artists.
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 social security and social services, workers' rights and consumer protection, social ownership of the means of production, and regulated markets.
Gylias has among the highest tax rates in Tyran (overall taxation is 51,9% of GDP), a large public sector (52,7% of GDP), and a comprehensive social safety net. All Gylians receive tax-funded public education, universal health care, and a variety of generous social security payments. The percentage of population at risk of relative poverty and inequality is among the region's lowest.
The tax system is strongly progressive and Pigovian. 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 maximum wage: any income earned above the maximum threshold is automatically taxed at 100%. Corporate tax is similarly progressive, with 10 brackets, the highest being 50%. Value-added tax is 5% nationally. Payroll taxes are divided equally between employers and employees. Land value tax and property tax are collected at the municipal level, and taxes on currency transactions and financial transfers at the regional level.
Gylians' tax returns are publically available for anyone to see through the National Tax Agency. This contributes to a culture of transparency and egalitarianism in economic matters, and profilic philanthropy among wealthy Gylians.
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 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, 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 quality control.
The four-day week is the norm. Average working hours per year are among the lowest in Tyran, with fully-paid sick leave, parental leave, and at least 30 days of annual leave are guaranteed by law. Overtime is rare, and flextime is reasonably common.
The þaler (symbol: Ŧ) has been Gylias' national currency since 1958. It is part of the Common Monetary System, and operates a 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 complementary currencies with whom it coexists, including community currencies, local currencies, regional currencies, sectoral currencies, and, more recently, cryptocurrencies. All complementary currencies in Gylias are legally pegged to the þaler, at a value of 1:1. Complementary currencies are traded through local exchange trading systems and online community exchange systems. 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 payment in kind, barter, various forms of gift economy, and alternative systems such as labour vouchers and time-based or demurrage-based currencies.
The National Bank of Gylias is the central bank, which issues the þaler and is responsible for 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 full-reserve banking system, in order to guarantee democratic control of the 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.
Cooperative banking dominates the banking system. The majority of Gylian banking cooperatives, credit unions, and mutual savings banks are small, locally-rooted, and prioritise security. They are confederated into the National Popular Banking Association of Gylias, itself part of the NCC.
As with the broader economy, there is a large independent and non-monetary component to the financial system. This is represented by collaborative finance, mutual credit, rotating savings and credit associations, and 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 multiplier effects.
Gylias operates a 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 stock exchange, dominated by small and medium-sized enterprises. The exchange is characterised by conservative investments and a relative lack of market speculation. Currency exchange is somewhat more active in comparison, due to the multiple complementary currencies in existence.
The majority of Gylias' trade is conducted with the Common Sphere, particularly Cacerta and Kirisaki. Other significant trading partners outside the bloc include Allamunnika, Tennai, 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 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 capital and foreign exchange controls.
Income and wealth distribution
Distribution is considered the strong point of the Gylian economy. Although Gylias' GDP and GDP per capita are below the Sidurian average, income and wealth distribution is strongly equal, reflected in the Gini coefficient of 22.5 and high quality of life indicators.
Gylias as a federation is a polycentric economy without a single centre. Economic disparities between 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 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.
|Flag||Region||Abbr.||Capital||Area (km²)||Population||GDP share (%)|
|Data from the 2020 census conducted by the Bureau of Statistics and Accounting.|