Economy of Gerenia
The economy of Gerenia is a planned economy, dominated by state-run enterprises which means that the Gerenian goverment oversees it.
Gerenia was founded by immigrants from planet Meeredres in 2012, and until late 2013 the development of the country depended exclusively on Meeredrian imports. A crisis in Meeredres caused the Gerenian state to collapse (event known as December Anarchy). When the state was reestablished the following year, it became evident that Gerenia had to overcome its dependency.
Then, in March 2014, Filip Ulrige was appointed as Minister of Economy. Ulrige was given full powers to transform Gerenia's economy from a partially regulated economy to a fully regulated one. Ulrige, considered the "father of the Gerenian economic system", decreeted the creation of the Directorate of Economic Planning, and declared illegal private enterprise, among other reforms.
Land redistribution, and other reforms are yet to be implemented.
- See also: Sorona
The currency of Gerenia is the Sorona, divided in 20 persti. Before the creation of the sorona in 2013, various local currencies existed at the same time.
One sorona is equivalent to 130 miligrams of gold.
Although rationing does not exist in Gerenia, there is a maximum amount of certain goods that can be consumed by a family. These amounts are determined by the Ministry of Economy.
Many consumer goods are stored in warehouses before being distributed to stores. In many cities and towns, people are allowed to purchase what they need directly at the warehouse instead of at a store. In smaller settlements, it is common to find "popular markets" (Löbarehantes).
The prices of goods are strictly controlled by the government, and usually vary from zone to zone.
The sources of energy in Gerenia depend on the geographical region: in the north, most of electricity is produced by burning fossil fuels. On the other hand, in the south, 75% of electricity is generated by hydroelectric power stations, and 15% is generated from wind power.
Agriculture employs roughly 20% of the population, and since it is little mechanized, it is inefficient. Cultivation of wheat, rye, garaman, maize, and potatoes is concentrated in the Midlands, the central region, and along Maiŷnat River. In southern Gerenia, cultivation depends mainly on irrigation. Agricultural activities are in many cases carried out by cooperatives (pevanti) based in towns and villages across the Midlands.
Fishing and logging are also important in the country. They are most developed in the northern provinces.
The mining sector is one of the economic pillars of Gerenian economy. The Adarman Highlands are rich in plumber. Zinc, gold and silver are extracted in smaller amounts.
After the 2013 anarchy, efforts have been put to develop heavy industry in Gerenia (especially metallurgy and shipbuilding). This implied a decrease in support to the food processing and textile industries, which were the first established in the country.