Difference between revisions of "Economy of The Oan Isles"

Revision as of 01:49, 5 May 2017

The Oan Isles has a GDP of 4,8 trillion SHD. Three quarters of the economy are made up of the state and state-owned enterprise and a quarter is made up of the private sector. The biggest sector of the economy is the services sector which accounts for half of the economy, while the secondary sector accounts for a third and the rest is made up of the primary sector.

The Oan Isles has two currencies. It uses the Kirib for foreign transactions, while it uses the Oan Dollar for domestic transactions. The Oan dollar is pegged to the kirib. The Bank of The Oan Isles is the central bank of The Oan Isles. It issues Oan currency, shapes monetary policy, regulates the banking sector, acts as a lender of last resort and acts as a banker for the state.

The debt of the Oan Isles is over twice the value of GDP and wasted spending runs into billions of dollars. The Oan Isles benefits from its strategic location between the continents of Aurora and Gondwana, from a productive population, efficient management of the economy and access to an abundance of non-mineral natural resources. Although income is distributed unevenly, this is mitigated by high taxes and a large welfare system.

Primary sector

The primary sector relates to the extraction of natural resources or the production of foodstuffs. The Oan Isles has very small amount of minerals. Most minerals are imported. The only mineral that is in abundance is natural gas. The primary sector is subsequently dominated by two industries: forestry and fisheries

Forestry

The Oan Isles' geography and climate are characterised as monsoon jungle. The Oan Isles has an abundance of trees. Forestry makes up 50 billion dollars of GDP. The government has a plethora of regulations to prevent our forests from being exploited and depleted. Plantations produce half of the wood, while the rest come from natural forests. The Oan forestry sector is dominated by two areas: wood for construction and furniture (for example from the Araucaria araucana) and wood for latex or rubber (for example from the Hevea brasiliensis). Most of the trees are grown by and wood is taken from small plantation and logging businesses, a third of whom are affiliated under the Oan National Forestry Corporation.

Fisheries

The Oan Isles is an island country spread across the biggest ocean on the planet Urth, the Pacific. It is located between the Aequator and the tropic of Makara. This means it has a tropical climate. This tropical climate allows coral reefs to thrive. Coral reefs house 25% of the world's marine life. This creates the perfect conditions for the fishing industry to thrive. Fish is very popular in the Oan Isles, because it is an affordable and easily accessible alternative to meat. Oans consume an average 30kg of fish a year per capita. Local consumption and foreign exports mean that fisheries contribute 100 billion dollars to GDP. Half of the fish is produced through aquaculture. Most of the fish is caught and raised by small businesses, a third of whom are affiliated under the Oan National Fisheries Corporation. Crustaceans such as lobster, shrimp and crabs, and fish such as haddock and tuna, generate the biggest income.

Food

The Oan Isles is largely formed from volcanic activity. These volcanoes supplied the soil with an adundance of nutrients. This has made Oan soil very fertile. Approximately a fifth of the land is used for farming and husbandry. The sector generates 150 billion dollars in GDP. Along with fisheries, it provides for 80% of the Oan food supply. A third of the sector is made up of grains, a third is made up of vegetables and fruit, and a third is made up of animal products such as dairy and eggs. Meat is expensive and scarce. The most common grain is maize, which makes up three quarters of all grains. A third of the food is produced in green houses and factories to conserve space and cut costs. Produce that is grown in the Oan Isles is not genetically modified.The most common meat is chicken.

Minerals

The Oan Isles is relatively young, in terms of the geographical time scale. It lies near or on the boundaries of tectonic plates: the Pacific and Auroran. Volcanic activity is common here. The islands were formed from volcanic activity. Most of the rock is formed from magma that cools down and hardens. Most of this rock is made up of the minerals that are common in the magma. Most of the mineral extraction is made up of quarrying. The main minerals that are quarried and used commercially are quartz, marble and granite. Mineral extraction makes up 5 billion dollars of GDP.