Difference between revisions of "Economy of The Oan Isles"

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{{Infobox economy
 
{{Infobox economy
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|country             = The Oan Isles
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|rank            = 4 ([[Aurora]]), and 1 ([[Polynesian Union]])
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|image               = Port of The Rock.jpg
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|country         = [[The Oan Isles]]
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|width                =  
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|image           = La Rochelle.jpg
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|caption             = [[Port of the Rock]], industrial centre of [[Nation/The Oan Isles|The Oan Isles]]
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|image_size      = 300px
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|currency             = [[Oan Dollar]] (OAD or OA$) and [[Kirib]]
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|caption         = [[La Rochelle]], a major centre of international finance.
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|year                = Calendar Year
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|currency       = [[Oan Dollar]] (OAD or OA$)
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|rank                = 4th (in [[Aurora]]) and 5th (in the [[Auroran Continental Assembly|ACA]])
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|managed exchange  = Free Float
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|gdp                 = $3 trillion
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|year            = 30 March - 1 April
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|growth               = 7%
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|organs          =
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|per capita           = $33,000
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|gdp             = $1.82 trillion  
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|sectors             = Agriculture 10% Industry: 40%, Services: 50% 
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|publisher =
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|inflation           = 2%
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|growth         = {{increase}}2.9%  
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|poverty             = 2%
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|per capita     = $35,000
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|gini                 = 10
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|sectors         =
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|labor                = 45 million
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|components      =  
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|occupations          = Agriculture: 10%, Construction: 5%, Services 30%, Manufacturing: 50%
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|inflation       = {{increase}}5.4%
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|unemployment         = 2%
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|poverty         = 3.1%    
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|average gross salary =  
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|gini           = 39.5
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|average net salary  = $10,000
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|edbr            =  
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|industries           = Construction, financial services, information technology, tourism, manufacture
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|labor          = 29,234,400
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|edbr                =
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|occupations    = 
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|exports             = $400 billion
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|unemployment   = 6.3%
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|export-goods         = Fish, wood, electronics, ships and vehicle parts
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|average gross salary =  
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|export-partners     = [[Nation/Staynes|Staynes]], [[Caltharus]], [[Nation/Tuvaltastan|Tuvaltastan]], [[Nation/Dragonia|Dragonia]]
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|industries     = Financial services, transhipment, information technology, tourism, electronics, recycling, construction, fishing
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|imports             = $700 billion
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|exports         = $500 billion  
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|import-goods         = Metals, fuel, petrochemicals, machinery and vehicles, grains, dairy and meat
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|export-goods   = Electronics, robots, scientific apparata, ships, aircraft, weapons and fish
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|import-partners     = [[Nation/Staynes|Staynes]], [[Caltharus]], [[Tuvaltastan]], [[Nation/Stratarin|Statarin]]
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|export-partners = [[Polynesian Union]], [[Auroran Continental Assembly]], [[Atlantian Alliance]], [[Gordic Council]]
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|FDI                 =
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|imports         = $480 billion
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|gross external debt =  
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|import-goods   = Metal, water, electricity, uranium, fuel, food, wood, sand, stone, cement
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|debt                = $6 billion
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|import-partners = [[Polynesian Union]], [[Auroran Continental Assembly]], [[Atlanian Alliance]], [[Gordic Council]]
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|deficit              =  
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|FDI             = $28 billion
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|revenue             =  
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|gross external debt =
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|expenses             =
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|Trade Surplus  = $20 billion
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|aid                  =  
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|debt            = $5 trillion
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|credit               = AAA (Oan Economics Institute)
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|revenue         = $895 billion
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|reserves             = $100 billion
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|expenses       = $887 trillion
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|cianame              =
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|credit         = A– (Domestic)
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|spelling            =
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|aid             = 18 billion
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|reserves        = $270 billion
 
}}
 
}}
  
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The Oan Isles has a GDP of 3 trillion [[South Hills|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 two fifths and the rest is made up of the primary sector.
 
  
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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.  
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The economy of the Oan Isles follows a mixed socialist and free market model. High taxes, welfare programs and state regulation are employed to control the private sector, promote income equality and redistribute wealth. The state undertakes entrepreneurial activities and invests in industry. Private enterprise is permitted and even thrives. Inequality continues to be a major concern. Wealthy families own most of the nation's wealth through trusts that own and manage their pooled assets.
  
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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.
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The Oan Isles has a wealthy economy. The country has the largest economy in the Polynesian Union and the fourth largest economy in the Auroran region. The Oan Isles has a nominal GDP of 1.82 trillion SHD and a per capita distribution of 35,000 SHD. The Oan Isles has a PPP GDP of 2.08 trillion SHD and a per capita distribution of 40,000 SHD. The Oan economy has a positive growth of 2.9%.
  
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== Primary sector ==
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The Oan Isles has a diverse economy. The primary sector makes up 1% of the economy. The secondary sector makes up 39% of the economy. The tertiary makes up 60% of the economy. The largest sectors of the economy are financial services, transhipment, telecommunications, information technology, tourism, government, retail, electronics, robotics, scientific apparata, machines, weapons, aircraft assembly and ship building.
  
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The primary sector makes up approximately a tenth of GDP.
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The Oan Isles has an export driven economy. It's largest trade partners are Konoa, Asian Pacific Islands, East Polynesia, Staynish-Caltharus Empire and Kuthernburg. It has imports of 480 billion SHD. They include metals, fuel, food, wood, sand, cement, weapons, and machines. It has exports of 500 billion SHD. They include electronics, robotics, scientific apparata, weapons, aircraft and ships.
  
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=== Forestry ===
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The Oan Isles has several companies. The largest companies include the Metatron Corporation (electronics), Standard National Bank (banking), Cafe Net (internet services), Oan Industrial and Commercial Bank (banking), Floating Market (retail), Oan Shipwrights Corporation (shipbuilding) and Oan Aerospace Corporation (aircraft). Approximately 10 Oan companies appear on the Auroran Stock Exchange 100 Largest Companies in Aurora Index.
  
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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 [[wikipedia:Araucaria|Araucaria araucana]]) and wood for latex or rubber (for example from the [[wikipedia:Hevea|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]].
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The Oan Isles has stable public finances. The Oan Isles uses the Oan dollar as its legal tender. It has a stable exchange rate of 7 OAD to 1 SHD, and 4.1 OAD to 1 KRB. It has an interest rate of 1%. It has reserves of 270 billion SHD. It has managed to remain buoyant on its high debt of 5 trillion SHD through beneficial repayment agreememts. The state generates revenues of 895 billion SHD and expenses of 887 billion SHD.
  
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=== Fisheries ===
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Ultimately the Oan economy is helped by an active and competent government, highly technically skilled, innovative and hardworking population, strong cooperative wealth generation and management tools, strategic geographical position, prudent investment choices and a policy that actively pursues interaction with other nations.
  
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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.
 
  
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=== Food ===
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== Primary Sector ==
  
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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.
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The primary sector is made up of fishing, forestry, agriculture and mining. By far the largest component of the primary sector is fishing. The primary sector makes up 1% of the economy of the Oan Isles. This represents 18.2 billion dollars in nominal terms or 20.8 billion dollars in power purchasing parity terms. This sector benefits from the location of the Oan Isles. It is located in fhe tropical area of the world. There are many coral reefs. Coral reefs contain a large amount of the marine life on the planet. They make up about 25% of the marine life of the planet, yet they only make up 2% of the planet's oceans.
  
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=== Minerals ===
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The Oan Isles is heavily urbanised. That means it is covered in cities. Much of the country does not have space for forests and farms. Many companies have chosen to build tall greenhouses in order to produce food. This is called vertical farming. Produce is grown going up rather than spreading on the floor. This was done because there was no space for farms. The Oan people are so numerous, however, that the sector cannot produce all of the food that they need. A big part of the food that is eaten comes from neighbouring countries.
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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.
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== Secondary sector ==
 
== Secondary sector ==
  
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The secondary sector (i.e. manufacturing and recycling) makes up 40% or 1,2 trillion dollars of GDP, and 540 billion dollars or 90% of exports.
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The secondary sector is made up of processes that turn natural resources and raw materials into goods. This sector makes up 39% of the economy. This represents 709.8 billion dollars in nominal terms or 811.2 billion dollars in power purchasing parity terms. This sector drives the economy, generates jobs and makes up most exports. It benefits from a highly technically skilled workforce and an established and generally positive reputation.
  
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=== Manufacturing ===
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This sector is diverse and is made up of a variety of industries. The biggest part of this sector is the production of electronics. This is followed by the manufacture of robots, scientific apparata, ships, aircraft and weapons. A very large and important part of this sector is the recycling of old goods to produce new ones. The ability and willingness to take what seems like garbage and turn it into profit is a very important part of this sector. It allows us to reuse materials that would have otherwise been discarded. Another important part of this sector is property development. This is the construction of infrastructure and other facilities that make it possible for the economy to work. Because the Oan Isles is heavily urbanised, new buildings are constantly being erected and roads are being laid.
  
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The biggest company in The Oan Isles and by far the biggest manufacturer in The Oan Isles is the [[Metatron Corporation]]. It has a market value of approximately 400 billion dollars. It is the eighth largest company in [[Aurora]], according to the Aurora 100 index, published by the Auroran Stock Exchange. This company reflects the nature of Oan manufacturing. Approximately two fifths of the Oan manufacturing sector is made up of electronic consumer and industrial products. It is either the third or second largest manufacturer of electronics, in Aurora.
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The biggest company in the Oan Isles was the [[Metatron Corporation]]. It was the 8th largest company in [[Aurora]]. Its manufacturing component, Metatron Industries remains the single largest exporter in the country. It is followed by the [[Shipyards of The Oan Isles Ltd.|Oan Shipwrights Corporation]], the Oan Aerospace Corporation, the Oan Arms and Munitions Corporation, the [[Oan National Motor Corporation]], Takalo Pharmaceuticals, Moana Chemicals, Pounamu Technologies and Huahana Industries.
  
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Approximately two fifths of the manufacturing sector is made up of the construction or assembly of maritime, aerial and terrestrial vehicles. The [[Oan Aeroapace Corporation]] has a monopoly on the construction and assembly of civilian and military rotary and fixed wing aircraft. The [[Shipyards of The Oan Isles Ltd.|Oan Shipyards Corporation]] has a monopoly on the construction and assembly of civilian and military surface and submarine seacraft. The [[Oan National Motor Corporation]] has a monopoly on the construction and assembly of rail and road passenger and freight vehicles.
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== Services ==
  
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The rest of the manufacturing sector makes up a fifth of the manufacturing sector. In the Oan Isles textiles are made from plant fibres or polymers. These plant fibres are extracted from softwood trees and other plants. Polymers such as nylon and polyesters are used to make fabric. Furniture is made from wood and plastic. General tools and other implements are made from plastic, metal or wood, or a combination of all. This portion of the manufacturing sector is characterised by two things: recycling and plastic (recycling will be discussed in more depth under the section "Material Waste"). Processed food and beverages also play a part. The biggest sector, however, is the manufacture of weapons (by revenue). The Oan National Arms Corporation has a monopoly on the production of weapons.
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The services sector relates to services that are performed for rather than goods that are sold to people. The services sector is the largest sector of the economy. It makes up 60% of GDP. It generates 1.248 trillion SHD of PPP GDP and 1.092 trillion SHD of nominal GDP. It employs 40% of the workforce. It is highly influential and far reaching.
  
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=== Recycling ===
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It is a diverse sector. Its biggest sector is made up of financial services. This sector manages how money moves around. This translates to many institutions such as banks, insurance companies, auditing firms, and transaction handlers. The biggest company in this sector is the [[Standard National Bank]]. This sector is followed by transhipment. The Oan Isles lies at the mouth of the [[Caven Sea]] that connects two major oceabs (the Packilvanian and Pacific) oceans with one another. By extension, it connects three continents: Yasteria, Aurora and Gondwana. Many ships pass through Oan ports and many countries rely on Oan shipping companies to ferry their products across the seas.
  
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The Oan Isles has a fairly small land area. Its plants and animals are sensitive. The people of the Oan Isles had to find a way to meet their needs and wants without damaging their home or depleting their natural resources. They developed a culture that was steeped in recycling. Goods are produced from waste materials. This sector produces a third of the material that is used in manufacturing. This contributes 400 billion dollars to the manufacturing industry. Almost all of The Oan Isles's waste is recycled or destoyed.  
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These two big sectors are followed by information technology. Information technology relates to services that are offered on digital devices, that cannot be touched. This includes services on the internet and the development of software. The biggest company in this sector is [[Cafe Net]]. This sector is followed by tourism. Millions of people come every year to visit and enjoy various sights such as museums, hotels, shopping malls, clubs and resorts. Retail is a big sector. It is made up of the actual selling and buying of goods. Due to the large and affluent population of the country, the sector is booming. Many people can afford the products on offer. This biggest retailer is Floating Market.
  
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The [[Oan Chemicals and Fuel Corporation]] is the largest producer of vehicle and household fuel in the Oan Isles, in fact it has a monopoly on the Oan market. It primarily produces cellulosic ethanol and methane, that are used as fuel for vehicles and for household and industrial machinery. About four fifths (or 80%) of its products are produced from recycled materials. Cellulosic ethanol is made from plant matter while methane is derived from livestock and from the decay in old land fill sites and it supplies. It provide about half of Oan fuel needs.
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Telecommunications is also large. It is the process of communicating through a device like a cellphone and all the services and infrastructure that support that process. This biggest provider of telecom services is the Oan Telecommunications Corporation (generally known as Oan Telecoms). This sector is followed by all the services that are provided by the government. Many are usually affordable or free. This covers many services such as healthcare, utilities and administration.
  
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== Tertiary sector ==
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What makes the services sector of the Oan Isles such as a big part of the economy is that many Oan companies also work for and make money from clients overseas. For example, [[Standard National Bank]] has an office in Tarov, the capital of [[Tivot]]. [[Ita Marama]] is a big network of accountants and auditors that has offices in 28 countries. Oan Telecoms has a monopoly on internet access and network coverage in [[Nacata]], [[Atiland]] and [[Latianburg]]. Floating Market is the biggest online shopping service on the continent of Aurora.
  
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The tertiary sector makes up 50% or 1,5 trillion dollars of GDP.
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== Monetary Policy ==
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[[File:Oan10dollarfront.jpg|thumbnail|Obverse of the Oan 10 dollar banknote, the lowest banknote in the "Macaw series"]]
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=== Financial services ===
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The Bank of the Oan Isles issues and regulates the Oan currency, which is the [[Oan Dollar]]. The average exchange rate of the Oan Dollar is 7 OAD to 1 SHD, 3.5 OAD to 1 [[Kirib]] and 1.8 OAD to 1 [[Veskono]]. It is backed by sizeable reserves and supported by low interest rates and a stable institutional infrastructure, and policy framework. It is a fiat currency, fluctuating in value according to market forces. Its value was significantly reduced in 2017 by the [[Auroran-Pacific War]], massive below-market value sale of [[Nation/Xagrurg|Xagrurgian]] kiribs and completely leaving the Auroran Common Monetary Apparatus. Analysts believe that the devaluation was a long term achievement, that attracted more buyers of Oan services and goods.
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The Oan Isles has a sound financial system. The largest bank is the [[Standard National Bank]], which is also the 11th largest corporation in [[Aurora]] according to the Aurora 100 index published by the Auroran Stock Exchange. The Oan financial services sector benefits from prudent financial policy, a stable currency and open trade with the [[Auroran Continental Assembly]] and shielded, somewhat, by anti-tax evasion legislation. It is limited by state taxes and competition with tax havens such as [[Blueacia]], however. The largest foreign bank currently operating in The Oan Isles is the [[Nation/Staynes|Staynish]]/[[Blueacia|Blueacian]] [[LabiaTurtle Bank]].
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=== Information technology ===
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Information technology is a major sector. [[Café Net]] is an Oan internet service provider, and is among the top 50 companies in [[Aurora]]. It operates internationally. Kuthernburg is one example of ys international operations and reach. Online services have replaced many services that were provided or handled physically. Online shopping accounts for half of retail. The largest online shopping website is the Floating Market. Online public transport services such as Smart Traveller are a popular alternative to public buses and trains or metred taxis. In fact, they account for a third of the large public transport sector. Many publications and news media have moved online such as the ''The La Rochelle Times'' and ''The Critic''. Online media or entertainment platforms such as Cafe Vibe (a social networking and instant messaging application) and Cafe Tube (a video and music platform) are ubiquitous.
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The information technology industry benefits from a well developed infrastructure, the appeal of Oan online services and a shifting modern lifestyle. The government-owned company [[Oancom]] (or the Oan Telecommunications Corporation) is responsible for managing and disseminating optic fibres, operating the state public WiFi and is by far the largest cellular network provider. The Oan Isles' internet is entirely broadband. The Oan Isles have universal internet coverage and its people have universal access to the internet. There are 1,100 cellphones per 1000 people and 900 computers per 1000 people. The internet has an average speed of 50Mbps.
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=== Transhipment services ===
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The Oan Isles is located at a strategic location. It is stretched across the Pacific Ocean between Gondwana and Aurora. The Port of the Rock is the largest Oan city and one of the largest container ports in the Pacific. It lies at the mouth of the Caven Sea, which leads to the Packilvanian Ocean. It handles a large amount of the passenger and container shipping traffic from Arcturia, Yasteria and Antilla, that is headed towards Atlantia or Gondwana, and vice versa. The Oan also has unique access to Celannica and Daneelmark, where Oan merchants have been permitted to conduct trade and cross over the Fire Line (a line that divides the [[South East Pacific Coalition]] and [[FPA]]. Ships travelling from the wealthy trading nations [[Nation/Stratarin|Stratarin]] and [[Nation/Setzna|Setzna]] have to travel through Oan ports before reaching Aurora or going through the Caven Sea.
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The [[Shipyards of The Oan Isles Ltd.|Oan Shipyards Corporation]] does not only build ships. It maintains and repairs ships that pass through Oan ports and has a shipping division. It transports approximately half of the cargo that moves out of the Oan Isles. This company is so prominent and large that it is among the 100 largest companies from or in the continent of Aurora.
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=== Tourism ===
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The Oan Isles has a strong tourism sector. It benefits from affordable accomodation and flights, direct flight routes between La Rochelle and many Auroran cities, such as the mighty capital of [[The Staynish-Caltharus Empire]], [[Sani Bursil]]. Citizens of ACA member states may enter Oan borders freely and have long visas to work or play. This attracts many tourists. The Oan Isles has a thriving and attractive urban night life, especially in the capital [[La Rochelle]] and the Port of The Rock. It has many cultural sites of profound historic significance such as the ancient ruins in [[Serenity City]].
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The Oan Isles has many mighty and tall mountains such as Heavenly Mountain on Heavenly Island  or the Trumphant Mountains on the Oan Gondwana Territories. They attract mountain climbing and sports entusiasts. The Oan Isles has many resorts and amusement parks. The Royal Tranquility Resort is located on Tranquility Island. It is built into the dead or hollow banyan trees and features a water park that is built into the forests. Many of the trees have been preserved, adding to the unique resort. The ancient city of Tukanoaeni has floating markets that attract buyers from all over the country and Aurora.
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== Monetary policy ==
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The Oan Isles uses two currencies: the [[Oan Dollar]] and the [[Kirib]]. The Oan dollar is used for domestic transactions and the Kirib is used for foreign transactions. The Oan dollar is issued and managed by the Bank of The Oan Isles. The Auroran Continental Bank issues and manages the Kirib. The Oan Isles has opted to be a partial user of the Kirib. This means that it retains control over its monetary policy. The Oan dollar must be converted into kiribs before leaving the Oan Isles and currencies that enter the Oan Isles must be converted into Kiribs before they are converted to Oan dollars. The Oan dollar is pegged to the Kirib. The Bank of The Oan Isles fixes the exchange rate. The Oan dollar is worth 1 dollar to 2 kiribs.
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The Bank of The Oan Isles is responsible for managing the supply of the currency and the availability of money. It is also responsible for regulating banks. It acts as a lender of last resort to banks and other institutions. It is the sole banker of the government. This means that all transactions undertaken by the state, are done by the Bank on its behalf. The Bank exercises strict controls to maintain the strength of the Oan dollar, keep inflation as low as possible and ensure the continued buying power of this nation.
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== Fiscal policy ==
 
== Fiscal policy ==
  
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=== Spending ===
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The National Budget hovers around 1,3 trillion SHD. It is set by the National Treasury. It focuses on health, education, social welfare, and infrastructure followed by law and order, administration, and debt servicing. The state generates income from rents, taxes and profits around 1,3 trillion dollars in total. It has a high debt of 6 trillion dollars, with its largest contributor being the [[LabiaTurtle Bank]] seated in [[Blueacia]]. Through shrewd policy frameworks and negotiations, debt has been offset and its impact, especially on the poor and working class, has been significantly reduced. Taxes, especially for the rich, are high, going as far as 60% of income and profits.  
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The National Budget is a plan of proposed expenses and predicted income for the entire government. It is prepared each year by the Member of the National Council for Finances, currently [[Kia Uye]]. When the draft receives the approval of the national Council, it is sent to the people to decide on. The 2017/2018 budget has a total spending of 2,6 trillion dollars (which reflects 80% of GDP). It is apportioned as follows:
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* A thirdthird is given to the provincial and territorial governments.
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* A third is given to the local governments.
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* A third is retained by the national government.
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The National Budgets develops the areas that the local, provincial and national governments must focus their funds on. These are as follows:
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* Education -- 15%
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* Health -- 12%
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* Welfare -- 25%
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* Law enforcement -- 5%
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* Defence -- 1%
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* Infrastructure -- 9%
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* Administration -- 6%
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* Envronment -- 5%
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* Transport -- 7%
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* Housing -- 8%
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* Spirituality -- 3%
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* Debt -- 1%
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* Foreign Aid, Diplomacy and international organisations -- 3%
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=== Revenue ===
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The government generates revenue from two sources: taxation and state entrepreneurial activities. Taxation accounts for two thirds of its income while state entrepreneurial activities account for another third. State entrepreneurial activities include leases and rents, capital gains and dividends.
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Taxes are collected by the Oan National Revenue Services. The national government makes half of its money from taxes (the vast majority of which is income and company tax), while provincial and local governments make three quarters of their money from taxes and rates and a quarter from entrepreneurship. The government makes 2,25 trillion dollars in revenue. The national government generates two fifths of it, the provincial and local governments generate 30% each. Personal income below 10,000 dollars is not taxed and company income below 100,000 dollars (monthly) is not taxed. Income of 1 million dollars a month is taxed at 80% and corporate income of 10 million dollars a month is taxed at 60%. Inheritance tax, capital gains tax and other forms of tax are not charged by the national government. The provincial and local governments charge smaller taxes such as rates and so on. The state has trade agreements with many countries that significantly reduce tariffs. This means a very small amount of money is generated from customs duties.
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=== Debt ===
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If one looks at the preceding sections income and expenses, one will realise that there is a shortfall in funds of 350 billion dollars. This portion is made up for by borrowing. The state has a total debt of 6 trillion dollars. The Oan Isles' largest creditor is the LabiaTurtle bank from Blueacia and Staynes. It has lent the state 10% of the total debt or 600 billion dollars. The state has agreed to pay the bank over 500 years. This reflects many of the beneficial agreements that the state has entered into (this is the reason only 1% of the budget goes towards servicing debts).
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A fifth of Oan debt remains in foreign hands. The rest is owned by domestic businesses and citizens. The state borrows money from a foreign bank. It raises the money to pay it back from the citizens. The accumulated money is paid to the bank. The state now owes the citizens money. Instead of paying a large amount of money over a short period, the state pays a small amount of money over a long period.
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Four fifths of the population benefit from subsidies and allowances. These measures reduce the amount of household and personal debt dramatically. Most families have less than 5% of their income going towards debt. 80% of the debt is generated and paid for by the state. Through the beneficial agreements that the state enters into, the overall amount of national income that goes towards paying debt is very minute.
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Businesses are very different. Large businesses dominate the economy. They have operations in other countries. The debt that these operations accrue, is not included as a part of Oan debt. Businesses generate 15% of Oan debt.
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== Trade ==
 
== Trade ==
  
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The Oan Isles is driven by foreign trade. Trade generates 600 billion dollars in income. The Oan Isles has many agreements with other countries which reduces barriers to trade. This bolsters businesses. The most important single agreement that the Oan Isles' has, is its membership in the [[Auroran Continental Assembly]]. Over four fifths of Oan trade is with members of the ACA.
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The Oan Isles has a large number of trade partners. Its largest trade partners by political and/or economic bloc are: the [[Polynesian Union]] (33%), the [[Auroran Continental Assembly]] (25%), [[Atlantian Alliance]] (20%) and the [[Gordic Council]] (12%).
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The largest trade partners of The Oan Isles are (in descending order of the value of trade) as follows: [[Nation/Staynes|Staynes]], [[Nation/Caltharus|Caltharus]], [[Tuvaltastan]], [[Nation/Dragonia|Dragonia]], [[Nation/Stratarin|Stratarin]] and [[South Hills]].
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The Oan Isles generates most of its export earnings from the following sources: fish and fish products, wood and wood products, industrial and household electronics, machinery and machine parts, automobile and automobile parts, ships and ship parts, aircraft and aircraft parts. The main items imported by the Oan Isles are: petrochemicals, cellulosic ethanol, weapons, machines and machine parts, automobiles and automobile parts, ship parts, aircraft and aircraft parts, and grain and meat.
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== Labour ==
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45 million people in the Oan Isles are employed or self-employed in permanent and temporary, formal or informal jobs, virtually all of whom are between the ages of 18 and 65. This is distributed evenly between male and female, Oatunu and Konoanans.
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30 million in the Southern Oan Isles are employed.
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* 2.5 million are employed in the primary sector.
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* 13.75 million are employed in the secondary sector.
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* 13.75 million are employed in the tertiary sector.
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11.25 million people in the Northern Oan Isles are employed.
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3.75 million people in the Oan Gondwana and Pacific Territories are employed.
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=== Employment by demographic area ===
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The section on "Dispersion" in the article on the [[Demographics of The Oan Isles]] explains how people are dispersed throughout out The Oan Isles, in urban and rural areas, and according to ethnic or cultural group. This section helps to explain how this dispersion affects labour trends from one area to another and among cultural groups.
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Its largest trade partners by country are: [[Konoa]] (15%), [[Asian Pacific Islands]] (12%), [[Staynes]] (9%), [[Kuthernburg]] (8%), [[Caltharus]] (6%), [[East Polynesia]] (6%), [[Tuvaltastan]] (4%), [[Nation/Dragonia|Dragonia]] (3.5%), [[Nation/The Atlae Isles|The Atlae Isles]], [[Furnifold]], [[Nation/Tretrid|Tretrid]], [[Mexregiona]], and [[Latianburg]] (2%).

Latest revision as of 19:42, 11 October 2017

Economy of The Oan Isles
La Rochelle.jpg
La Rochelle, a major centre of international finance.
Rank 4 (Aurora), and 1 (Polynesian Union)
Currency Oan Dollar (OAD or OA$)
Fiscal year 30 March - 1 April
Statistics
GDP $1.82 trillion
GDP growth Increase2.9%
GDP per capita $35,000
Inflation (CPI) Increase5.4%
Population
below poverty line		 3.1%
Gini coefficient 39.5
Labour force 29,234,400
Unemployment 6.3%
Main industries Financial services, transhipment, information technology, tourism, electronics, recycling, construction, fishing
External
Exports $500 billion
Export goods Electronics, robots, scientific apparata, ships, aircraft, weapons and fish
Main export partners Polynesian Union, Auroran Continental Assembly, Atlantian Alliance, Gordic Council
Imports $480 billion
Import goods Metal, water, electricity, uranium, fuel, food, wood, sand, stone, cement
Main import partners Polynesian Union, Auroran Continental Assembly, Atlanian Alliance, Gordic Council
FDI stock $28 billion
Public finances
Public debt $5 trillion
Revenues $895 billion
Expenses $887 trillion
Economic aid 18 billion
Credit rating A– (Domestic)
Foreign reserves $270 billion
All values, unless otherwise stated, are in US dollars


The economy of the Oan Isles follows a mixed socialist and free market model. High taxes, welfare programs and state regulation are employed to control the private sector, promote income equality and redistribute wealth. The state undertakes entrepreneurial activities and invests in industry. Private enterprise is permitted and even thrives. Inequality continues to be a major concern. Wealthy families own most of the nation's wealth through trusts that own and manage their pooled assets.

The Oan Isles has a wealthy economy. The country has the largest economy in the Polynesian Union and the fourth largest economy in the Auroran region. The Oan Isles has a nominal GDP of 1.82 trillion SHD and a per capita distribution of 35,000 SHD. The Oan Isles has a PPP GDP of 2.08 trillion SHD and a per capita distribution of 40,000 SHD. The Oan economy has a positive growth of 2.9%.

The Oan Isles has a diverse economy. The primary sector makes up 1% of the economy. The secondary sector makes up 39% of the economy. The tertiary makes up 60% of the economy. The largest sectors of the economy are financial services, transhipment, telecommunications, information technology, tourism, government, retail, electronics, robotics, scientific apparata, machines, weapons, aircraft assembly and ship building.

The Oan Isles has an export driven economy. It's largest trade partners are Konoa, Asian Pacific Islands, East Polynesia, Staynish-Caltharus Empire and Kuthernburg. It has imports of 480 billion SHD. They include metals, fuel, food, wood, sand, cement, weapons, and machines. It has exports of 500 billion SHD. They include electronics, robotics, scientific apparata, weapons, aircraft and ships.

The Oan Isles has several companies. The largest companies include the Metatron Corporation (electronics), Standard National Bank (banking), Cafe Net (internet services), Oan Industrial and Commercial Bank (banking), Floating Market (retail), Oan Shipwrights Corporation (shipbuilding) and Oan Aerospace Corporation (aircraft). Approximately 10 Oan companies appear on the Auroran Stock Exchange 100 Largest Companies in Aurora Index.

The Oan Isles has stable public finances. The Oan Isles uses the Oan dollar as its legal tender. It has a stable exchange rate of 7 OAD to 1 SHD, and 4.1 OAD to 1 KRB. It has an interest rate of 1%. It has reserves of 270 billion SHD. It has managed to remain buoyant on its high debt of 5 trillion SHD through beneficial repayment agreememts. The state generates revenues of 895 billion SHD and expenses of 887 billion SHD.

Ultimately the Oan economy is helped by an active and competent government, highly technically skilled, innovative and hardworking population, strong cooperative wealth generation and management tools, strategic geographical position, prudent investment choices and a policy that actively pursues interaction with other nations.


Primary Sector

The primary sector is made up of fishing, forestry, agriculture and mining. By far the largest component of the primary sector is fishing. The primary sector makes up 1% of the economy of the Oan Isles. This represents 18.2 billion dollars in nominal terms or 20.8 billion dollars in power purchasing parity terms. This sector benefits from the location of the Oan Isles. It is located in fhe tropical area of the world. There are many coral reefs. Coral reefs contain a large amount of the marine life on the planet. They make up about 25% of the marine life of the planet, yet they only make up 2% of the planet's oceans.

The Oan Isles is heavily urbanised. That means it is covered in cities. Much of the country does not have space for forests and farms. Many companies have chosen to build tall greenhouses in order to produce food. This is called vertical farming. Produce is grown going up rather than spreading on the floor. This was done because there was no space for farms. The Oan people are so numerous, however, that the sector cannot produce all of the food that they need. A big part of the food that is eaten comes from neighbouring countries.

Secondary sector

The secondary sector is made up of processes that turn natural resources and raw materials into goods. This sector makes up 39% of the economy. This represents 709.8 billion dollars in nominal terms or 811.2 billion dollars in power purchasing parity terms. This sector drives the economy, generates jobs and makes up most exports. It benefits from a highly technically skilled workforce and an established and generally positive reputation.

This sector is diverse and is made up of a variety of industries. The biggest part of this sector is the production of electronics. This is followed by the manufacture of robots, scientific apparata, ships, aircraft and weapons. A very large and important part of this sector is the recycling of old goods to produce new ones. The ability and willingness to take what seems like garbage and turn it into profit is a very important part of this sector. It allows us to reuse materials that would have otherwise been discarded. Another important part of this sector is property development. This is the construction of infrastructure and other facilities that make it possible for the economy to work. Because the Oan Isles is heavily urbanised, new buildings are constantly being erected and roads are being laid.

The biggest company in the Oan Isles was the Metatron Corporation. It was the 8th largest company in Aurora. Its manufacturing component, Metatron Industries remains the single largest exporter in the country. It is followed by the Oan Shipwrights Corporation, the Oan Aerospace Corporation, the Oan Arms and Munitions Corporation, the Oan National Motor Corporation, Takalo Pharmaceuticals, Moana Chemicals, Pounamu Technologies and Huahana Industries.

Services

The services sector relates to services that are performed for rather than goods that are sold to people. The services sector is the largest sector of the economy. It makes up 60% of GDP. It generates 1.248 trillion SHD of PPP GDP and 1.092 trillion SHD of nominal GDP. It employs 40% of the workforce. It is highly influential and far reaching.

It is a diverse sector. Its biggest sector is made up of financial services. This sector manages how money moves around. This translates to many institutions such as banks, insurance companies, auditing firms, and transaction handlers. The biggest company in this sector is the Standard National Bank. This sector is followed by transhipment. The Oan Isles lies at the mouth of the Caven Sea that connects two major oceabs (the Packilvanian and Pacific) oceans with one another. By extension, it connects three continents: Yasteria, Aurora and Gondwana. Many ships pass through Oan ports and many countries rely on Oan shipping companies to ferry their products across the seas.

These two big sectors are followed by information technology. Information technology relates to services that are offered on digital devices, that cannot be touched. This includes services on the internet and the development of software. The biggest company in this sector is Cafe Net. This sector is followed by tourism. Millions of people come every year to visit and enjoy various sights such as museums, hotels, shopping malls, clubs and resorts. Retail is a big sector. It is made up of the actual selling and buying of goods. Due to the large and affluent population of the country, the sector is booming. Many people can afford the products on offer. This biggest retailer is Floating Market.

Telecommunications is also large. It is the process of communicating through a device like a cellphone and all the services and infrastructure that support that process. This biggest provider of telecom services is the Oan Telecommunications Corporation (generally known as Oan Telecoms). This sector is followed by all the services that are provided by the government. Many are usually affordable or free. This covers many services such as healthcare, utilities and administration.

What makes the services sector of the Oan Isles such as a big part of the economy is that many Oan companies also work for and make money from clients overseas. For example, Standard National Bank has an office in Tarov, the capital of Tivot. Ita Marama is a big network of accountants and auditors that has offices in 28 countries. Oan Telecoms has a monopoly on internet access and network coverage in Nacata, Atiland and Latianburg. Floating Market is the biggest online shopping service on the continent of Aurora.

Monetary Policy

Obverse of the Oan 10 dollar banknote, the lowest banknote in the "Macaw series"

The Bank of the Oan Isles issues and regulates the Oan currency, which is the Oan Dollar. The average exchange rate of the Oan Dollar is 7 OAD to 1 SHD, 3.5 OAD to 1 Kirib and 1.8 OAD to 1 Veskono. It is backed by sizeable reserves and supported by low interest rates and a stable institutional infrastructure, and policy framework. It is a fiat currency, fluctuating in value according to market forces. Its value was significantly reduced in 2017 by the Auroran-Pacific War, massive below-market value sale of Xagrurgian kiribs and completely leaving the Auroran Common Monetary Apparatus. Analysts believe that the devaluation was a long term achievement, that attracted more buyers of Oan services and goods.

Fiscal policy

The National Budget hovers around 1,3 trillion SHD. It is set by the National Treasury. It focuses on health, education, social welfare, and infrastructure followed by law and order, administration, and debt servicing. The state generates income from rents, taxes and profits around 1,3 trillion dollars in total. It has a high debt of 6 trillion dollars, with its largest contributor being the LabiaTurtle Bank seated in Blueacia. Through shrewd policy frameworks and negotiations, debt has been offset and its impact, especially on the poor and working class, has been significantly reduced. Taxes, especially for the rich, are high, going as far as 60% of income and profits.

Trade

The Oan Isles has a large number of trade partners. Its largest trade partners by political and/or economic bloc are: the Polynesian Union (33%), the Auroran Continental Assembly (25%), Atlantian Alliance (20%) and the Gordic Council (12%).

Its largest trade partners by country are: Konoa (15%), Asian Pacific Islands (12%), Staynes (9%), Kuthernburg (8%), Caltharus (6%), East Polynesia (6%), Tuvaltastan (4%), Dragonia (3.5%), The Atlae Isles, Furnifold, Tretrid, Mexregiona, and Latianburg (2%).

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