Economy of The Oan Isles
| Economy of The Oan Isles | |
|---|---|
 Port of the Rock, industrial centre of The Oan Isles | |
| Rank | 4th (in Aurora) and 5th (in the ACA) |
| Currency | Oan Dollar (OAD or OA$) and Kirib |
| Fiscal year | Calendar Year |
| Statistics | |
| GDP | $3 trillion |
| GDP growth | 7% |
| GDP per capita | $33,000 |
| GDP by sector | Agriculture 10% Industry: 40%, Services: 50% |
| Inflation (CPI) | 2% |
| Population below poverty line |
2% |
| Gini coefficient | 10 |
| Labour force | 45 million |
| Labour force by occupation |
Agriculture: 10%, Construction: 5%, Services 30%, Manufacturing: 50% |
| Unemployment | 2% |
| Average net salary | $10,000 |
| Main industries | Construction, financial services, information technology, tourism, manufacture |
| External | |
| Exports | $400 billion |
| Export goods | Fish, wood, electronics, ships and vehicle parts |
| Main export partners | Staynes, Caltharus, Tuvaltastan, Dragonia |
| Imports | $700 billion |
| Import goods | Metals, fuel, petrochemicals, machinery and vehicles, grains, dairy and meat |
| Main import partners | Staynes, Caltharus, Tuvaltastan, Statarin |
| Public finances | |
| Public debt | $6 billion |
| Credit rating | AAA (Oan Economics Institute) |
| Foreign reserves | $100 billion |
| All values, unless otherwise stated, are in US dollars | |
The Oan Isles has a GDP of 3 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 two fifths 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.
Contents
Primary sector
The primary sector makes up approximately a tenth of GDP.
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.
Secondary sector
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.
Manufacturing
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.
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 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.
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.
Recycling
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.
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.
Tertiary sector
The tertiary sector makes up 50% or 1,5 trillion dollars of GDP.
Financial services
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 Staynish/Blueacian LabiaTurtle Bank.
Information technology
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.
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.
Transhipment services
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 Stratarin and Setzna have to travel through Oan ports before reaching Aurora or going through the Caven Sea.
The 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.
Tourism
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.
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.
Monetary policy
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.
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.
Fiscal policy
Spending
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:
- A thirdthird is given to the provincial and territorial governments.
- A third is given to the local governments.
- A third is retained by the national government.
The National Budgets develops the areas that the local, provincial and national governments must focus their funds on. These are as follows:
- Education -- 15%
- Health -- 12%
- Welfare -- 25%
- Law enforcement -- 5%
- Defence -- 1%
- Infrastructure -- 9%
- Administration -- 6%
- Envronment -- 5%
- Transport -- 7%
- Housing -- 8%
- Spirituality -- 3%
- Debt -- 1%
- Foreign Aid, Diplomacy and international organisations -- 3%
Revenue
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.
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.
Debt
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).
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.
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.
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.
Trade
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.
The largest trade partners of The Oan Isles are (in descending order of the value of trade) as follows: Staynes, Caltharus, Tuvaltastan, Dragonia, Stratarin and South Hills.
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.
Labour
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
Two fifths of the labour force work in the tertiary sector. Jobs are divided by geography and cultural group as follows:
- 12 million people employed in the tertiary sector work or live in the Southern Oan Isles.
- 3,381,000 of the people employed in the tertiary sector in the Southern Oan Isles are Konoanan.
- 8,610,000 of the people employed in the tertiary sector in the Southern Oan Isles are Oatunu.
- 5 million people employed in the tertiary sector work or live in the Northern Oan Isles.
- 675,009 people employed in the tertiary sector in the Northern Oan Isles are Oatunu.
- 4,335,000 people employed in the tertiary sector in the Northern Oan Isles are Konoanan.
- 1 million people employed in the services sector live or work in the Oan Gondwana and Pacific Territories (OGPT).
- 133,000 people employed in the tertiary sector in the OGPT are Oanutu.
- 867,000 people employed in the tertiary sector in the OGPT are Konoanan.
8,583,000 people employed in the tertiary sector are Konoanan. 9,417,000 people employed in the tertiary sector are Oatunu.
Two fifths of the labour force work in
Employment by demographic area
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.
