Economy of Radictistan
| Currency | Radictistani radin (R$) |
|---|---|
| September 1 - August 31 | |
| Statistics | |
| GDP | $2,883,121,080,400 (nominal) $5,304,681,527,200 (PPP) |
GDP per capita | $5,456 (nominal) $10,038 (PPP) |
GDP by sector | 12.4% agriculture 44.1% industry 50.5% services |
| 50.6 | |
Labour force | 201.4 million (2013 est.) |
| Unemployment | 18.6% |
Median gross salary | $494 monthly |
Main industries | Mining and ore processing, steel, machinery and transport equipment, automobile manufacturing, textiles, chemicals, food processing, shipbuilding |
| External | |
Export goods | Agricultural products, ferrous and nonferrous metals; chemicals, textiles, consumer electronics, food |
Import goods | Petroleum products, machinery |
Gross external debt | $2.965 trillion (2013) 105.9% of GDP |
| Public finances | |
| $2.288 trillion (2013) 81.7% of GDP | |
All values, unless otherwise stated, are in US dollars. | |
The economy of Radictistan is a developing mixed economy based primarily on mining, manufacturing, and agriculture with a comparatively small services sector. Many enterprises in the areas of communications, transportation, and energy are under state ownership. Most major sectors of the economy are dominated by a small number of large, vertically integrated firms. Because of endemic cronyism within the economy, GDP growth rates have historically been low and both unemployment and poverty remain high.
Significant regional disparities exist in terms of per capita wealth. GDP per capita in Greater Nuxenstat is four times the national average while Hyarpsur lags significantly behind the rest of the country.
Since the beginning of the Communist insurgency in Norcustsur the Radictistani economy has suffered due to decreased foreign and domestic investment and the downward turn of the national currency, the Radin.
Government role
State-owned enterprises
Royal Radictistan Holdings Corporation, a government-owned holdings company, maintains partial or complete ownership of more than half a dozen companies including the national rail operator Royal Radictistan Railways, electricity generation and distribution company Royal Radictistan Energy, and defense contractor Royal Defense Industries. Most of these companies, such as the railway and power company, enjoy statutory monopolies or quasi-monopolies in their respective industries. The parastatal sector is characterized by significant inefficiencies, in particular chronic overstaffing as the result of a number of entrenched patronage networks.
Sectors
Agriculture
Agriculture is a major sector of the Radictistani economy, accounting for over 12% of total GDP. Agriculture is most prominent in the eastern Counties of Eastval, Yestingsur, and Hyarpsur where arable land is plentiful. Agricultural products make up a large, although declining, percentage of Radictistan's total exports. The main export crops are wheat, rye, potatoes, and barley. Dairy products and beef are also exported in bulk. Major non-food crops include cannabis, tobacco, and flax.
Land usage and labor
Patterns of arable land usage in Radictistan vary by region. In Eastval and Yestingsur farms and ranches are large, often covering thousands or tens of thousands of hectares. This is a product of the original settlement of Radictistan when vast tracts of land were granted to the new aristocracy. Over time these noble families sold off parts of their estates and leased many of the remaining properties to farmers. Most farms in these Counties are either owned outright by the operator or leased from one of the remaining noble landowners. Labor on eastern farms is usually provided by wage-earning laborers with extensive mechanization.
Farms in the south and west of the country tend to be smaller. In Hyarpsur, hired labor and mechanization are less common due to the poverty of the region. The agricultural sector there is characterized by small-scale agriculture barely above the subsistence level. These farmers live under the constant threat of bankruptcy and a steady stream of failed smallholders migrate to cities such as Wussrhas and Capstat where they form part of the socioeconomic underclass.
Crops
Cereals, grown primarily in Eastval and Yestingusr, are the most economically important food crops. Wheat, rye, and barley are grown in vast quantities on the eastern plains for use as animal feed, for producing foodstuffs, and for export. Potatoes, an important staple of the Radictistani diet, are also grown in that region.
Fruits and vegetables are grown in farms all over the country, particularly in the western Counties where cereals production is less common. The most widely cultivated fruits are apple, pears, and a number of berry cultivars. Common vegetable crops include peas, kale, turnips, and asparagus. Sugar beets are extensively grown as feedstock for table sugar refineries.
Cannabis, flax, and tobacco are important non-food crops. Cannabis is grown for both recreational and industrial use. Flax is grown as a source of natural fibers. Tobacco in Radictistan is most commonly consumed in cigarettes.
Livestock
Eastval and Yestingsur are the centers of stock raising in Radictistan. Large ranches and dairy farms in those Counties produce beef cattle and dairy products for home consumption and export. The capital of Eastval, Beschertal is the main center for animal slaughter and meat packaging in Radictistan.
Forestry
The Radictistani forestry industry satisfies the economy's demand for lumber and paper products. Most lumber and pulpwood production occurs in the western Counties of Westwoodsur and Erdwoodsur. The largest logging and wood processing company in Radictistan is Horzinsy Forest Products Limited.
Mineral resources and energy
Mining
Mining is one of the most productive sectors of the Radictistani economy. About 590,000 persons are directly employed at Radictistani mines. Major mineral products include iron and coal, bauxite, copper, lead, zinc, and uranium. Kazdan Mining and Metals is the largest employer of miners in Radictistan with about 19% of the total labor force.
Oil and natural gas
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Radictistani oil resources are found primarily within offshore oil fields along the country's western coasts adjacent to the Counties of Norcustsur, Westwoodsur, and Erdwoodsur. Another important field lies off the coast of Yestingsur. Radictistani domestic crude oil production is unable to meet the country's demand of 3.8 million barrels per day. Radictistan is forced to import large amounts of oil from foreign countries. The Port of Brightburg is the greatest entry port for petroleum imports.
Modest natural gas production comes from small fields in southern Erdwoodsur and eastern Eastval. Radictistan is a net importer of natural gas as it is with petroleum. The largest petrochemical companies in Radictistan are Rothram Energy and Murkervech Petrochemical Corporation which together provide about 88% of Radictistan's oil and gas supply through production and importation.
The weakness of the Radictistani radin as a result of the Norcustsur conflict has led to higher prices for energy in Radictistan, particularly affecting the poorest elements of society who rely on propane or butane for cooking.
Synthetic fuels
Because Radictistan has ample coal reserves but little petroleum, the conversion of coal to liquid hydrocarbons has received considerable interest and now occurs on an industrial scale. Synthetic fuel plants using coal as their primary feedstock are operated by the two main petrochemical companies and the coal mining firm Norcustkohle. Both direct coal hydrogenation process and the indirect Fischer-Tropsch process are in use producing roughly 20,000 tonnes of synthetic fuels daily.
Manufacturing
Manufacturing is a major sector of the Radictistani economy in terms of employment and added value. Heavy industry, such as steelmaking, shipbuilding, and automobile manufacturing is found almost exclusively in Norcustsur while light industry such as consumer products and food processing predominate in the southern Counties.
Shipbuilding
Major Radictistani shipbuilders include Drozdev Heavy Industries, headquartered in Norwach, Norcustsur, and Barhof Shipbuilding headquartered at Kronhavn, Norcustsur. A number of other companies produce major ship components, such as engine maker Kustenwach Engineering.
Automobile
Raictistan has a large automobile industry which is protected from foreign competition by high tariffs. Radictistan produces just over seven million civil vehicles annually, a number which as remained steady due to stagnant consumer spending growth and scarce opportunities for export. The largest automobile manufacturer is Radictistan Automotive Works which has strong financial ties with the ruling Radicti family. RAW and other Radictistani automobile maufacturers directly employ 412,000 persons. About 215,000 are employed in the city of Hartfer alone. It is estimated that there are about 95 million personally-owned motor vehicles in Radictistan.
Steel
The steel industry in Radictistan produces roughly ninety-eight million metric tonnes of raw steel annually. The largest steel producers are Nor Stahlwerk, Kazdan Mining and Metals, and Brightburger Stahl. Nor Stahlwerk and KMM are headquartered in and center their production in Hartfer, Norcustsur. Brightburger Stahl locates its headquarters and main production facilities in Erdwoodsur. Smaller steel firms account for roughyl 20% of total steel production. The steel industry as a whole directly employs about 168,000 persons of which about 65,000 are employed in Hartfer which accounts for thirty percent of Radictistan's total steel output.
Semiconductors
Semiconductor fabrication is a relatively small but rapidly growing sector. There are currently four semiconductor fabrication plants in operation. Capital Semiconductors owns two of the currently existing plants which are located in Nuxenstat and Spauling, Westwoodsur. Luerkraft Semiconductors has is first plant located in the city after which it is named. A second plant located just outside the city was completed in 2017. Both companies operate according to the foundry model of semiconductor fabrication, producing only designs from other companies.
Virtuelle Designs and RISC Technologies Corporation design integrated circuits for manufacture by domestic and foreign fabrication plants. Virtuelle Designs specializes in system-on-a-chip products used in mobile phones, cameras, and other embedded systems. RISC Technologies Corporation designs microprocessors and microcontrollers for server, aerospace, and defense applications. In 2019 the company releasd the first microprocessor fully designed in Radictistan, the EA01x3201 for embedded systems.
The semiconductor industry as a whole has received substantial financial support from the Radictistani state in the form of startup capital, direct subsidies, and trade protectionism. Because of the technological backwardness of Radictistani fabrication technology it is considered doubtful by most experts that the infant industry could survive a loss of governmental support.
Aerospace
Radictistan has an aerospace sector dedicated mostly to military production. Royal Defense Industries produces a number of military aircraft models under license and has developed modifications such as the Su-25RM ground atttack aircraft. Konavia, also headquartered in Nuxenstat, produces artificial satellites such as the RadSat and RBSat series through its Konavia Orbital division. The company also produces a variety of civil aircraft including the popular Mantis general aviation aircraft and the new Konavia Super Seven STOL airliner. In addition to aircraft the company produces various avionics systems.
Consumer products
Brightburg-based Elektronenexport, Radictimund-based Pardaev Industries, and other Radictistani companies produce consumer electronics products under contract from foreign and domestic firms.
Services
Telecommunications
Radictistan possesses a modern communications infrastructure that connects all parts of the country with telephone, internet, television, and radio services. Most fixed communications infrastructure is owned by Royal Radictistan Telecom, a state-owned company which has a statutory monopoly on fixed-line telephony. Radictistan has about 114 million fixed telephone connections, one for every 4.6 persons. About forty percent of the population has access to the internet at home, most commonly through a dial-up connection or DSL. Radictistan has two internet exchange points, at Nuxenstat and Hartfer.
There are about 394 million mobile phone subscribers. Seven companies provide GSM and UMTS mobile phone service. LTE service is available in some major cities. The four mobile phone networks are owned by Kazdan Mobile, LuftFon, NuWelle, and Jagoda Wireless. Three other companies provide mobile phone service using leased bandwidth.
The Radictistani consortium RadSat operates five geostationary satellites for television broadcasting and international telephony. Two satellites serve the Radictistani market while three others are stationed over distant continents.
Finance
Financial industries such as banking, accounting, and securities exchange are centered in Greater Nuxenstat and wealthy west coast cities such as Brightburg and Barking. The financial sector accounts for a small percentage of Radictistan's economic output compared to manufacturing, mining, and agriculture. The largest banks include Fromm-Kohler, Lieber-Griffenbach, Ostbank, and Continental Express. Radictistan has strict financial privacy laws. International observers have raised concerns that Radictistan will become a haven for money laundering.
The Nuxenstat Stock Exchange is the largest in Radictistan measured by the total value of its listed securities. Radictistan's second stock exchange is the Brightburg Stock Exchange.
Media
The Radictistan Broadcasting Service, a state-owned corporation, is the largest broadcaster in Radictistan with five television and four radio channels available nationwide through free over-the-air broadcasts in addition to regional television and radio channels specific to each of Radictistan's seven counties. The growth of private broadcast networks has been hampered by government regulations limiting the number of markets in which private broadcasters can operate.
Tourism
Most tourism in Radictistan is internal. The island of Ailand Vakka and the ski town of Nubarghof are the most popular destinations. One of the few driving factors of foreign tourism is sex tourism which flourishes in the major cities.
Labor
Radictistan's estimated total labor force is 201.4 million persons, about 38% of the total population. The low labor participation rate is due to chronically high unemployment and the preponderance of informal economic activity.
Radictistani workers are unionized at a high rate, particularly within heavy industries such as steel, mining, and certain types of manufacturing. The Radictistani Congress of Trade Unions is the largest confederation of trade unions in Radictistan representing more than 70% of all unionized workers. Major trade unions include GB Metalle which represents steelworkers, smelters, and other metal processing workers, and GB Bergbau which represents miners.
Overall labor costs in Radictistan are low compared to more developed countries but significantly higher compared to other less developed countries due to intensive unionization and other factors. Radictistan suffers from considerable brain drain.
Infrastructure
Transport
The development of transportation infrastructure is given a high priority by the Radictistani government. Most freight haulage occurs by rail transport with Radictistan's major rivers acting as an important secondary artery for mineral traffic. Radictistan has 56,362 route-kilometers of railway. A state-owned company, Royal Radictistan Railways, is the sole rail operator with the exception of some mineral haulage on branch lines owned by mining companies.
The major commercial ports in Radictistan are at Brightburg, Ghorma, Baronshas, Luerkraft, and Kalanach. The Port of Brightburg on the west coast is one of the country's largest container ports as well as a key receiver of imported petroleum products. Baronshas sits at the mouth of the Eastval River on Radictistan's east coast. Its port is utilized primarily for agricultural exports. Most of Radictistan's mineral exports flow through Luerkraft and Ghorma.
Energy
Total installed electricity generation capacity in Radictistan is 216.8 GW of which about 64% comes from nuclear energy. The remaining capacity primarily comes from hydroelectric dams, and fossil fuel-burning thermal power plants. All generation and distribution is performed by the state-owned Royal Radictistan Energy.
External trade
Radictistan's primary exports are mineral products (excluding oil and gas), foodstuffs, industrial chemicals, and consumer products. Radictistan mainly imports capital goods, such as industrial machinery, and petroleum products. Radictistan possesses a large merchant marine of almost four hundred ocean-going ships to convey its exports and imports. Many sectors of the economy, such as the politically influential automobile industry, are protected from foreign imports by high tariff barriers. Radictistan has historically suffered trade deficits.
Financing for external trade deals is provided by the Royal Import-Export Bank, the official export credit agency of Radictistan.
Remittances from Radictistanis working abroad contribute billions of dollars each year to the Radictistani economy. These payments are vital to keeping Radictistan's current account deficit at a minimum. Radictistani expatriates are particularly prominent working as farm workers, merchant seamen, medical professionals, and skilled factory workers. The outflow of skilled labor to foreign countries has resulted in sporadic shortages of vital professionals within Radictistan.
Foreign investment
Foreign direct investment remains an insignificant factor in the Radictistani economy due to legislation placing many large sectors of the economy off-limits to foreign ownership. Protected economic sectors include telecommunications, steel, and mining. The Norcustsur internal conflict has discouraged investment due to the insurgents' tactic of striking foreign-owned businesses.
Currency and central bank
The Radictistani radin is the official currency of Radictistan. One Radin is divided into one hundred Cents. The Bank of Radictistan acts as a central bank and controls the money supply through changes in interest rates and reserve requirements. The Radin is a relatively unstable currency, often experiencing fluctuations of up to 15% of its value over the span of a few years. The communist insurgency in Norcustsur resulted in an extended period of decline in the Radin's value which prompted the Bank of Radictistan to drastically raise interest rates in order to avert a balance of payments crisis.
In addition to its role as a regulator of the economy, the Bank of Radictistan manages the country's official gold reserves, currently amounting to 449.6 tonnes stored at the National Bullion Depository in the Jazekfeld Department of Yestingsur.
Informal economy
In common with other developing countries, a large percentage of economic activity in Radictistan is informal and therefore not included in official statistics. The informal sector is especially dominant in the blutstats, violent slum areas found around most large Radictistani cities, where it frequently takes the form of stolen consumer goods sold to those who cannot afford to or are otherwise unable to patronize legitimate businesses.