Economy of the Wechua Nation
|This article or section is a work in progress. The information below may be incomplete, outdated, or subject to change.|
|Currency:||the Wechua Sol ($)|
|GDP:||$225.366 billion (1678)|
|GDP by Sector:||agriculture: 13.6%; industry: 38.1%; services: 52.0% (1662 est.)|
|Industries:||mining, smelting, natural gas, food and beverages, tobacco, handicrafts, clothing, jewelry|
|Major Industry (% of GDP):|
|Largest Company (Value):||General Company of Parap (TBD %)|
|Labour Force (% of Total Population):||TBD (TBD %)|
|Labour Force by Sector:||
|Unemployed (% of Total Population):||▲ 18.3% (1678 est.) note: data are for urban areas; widespread underemployment.|
|Budget Surplus or Deficit:||TBD $|
|Reserves of Foreign Currency:|
The economy of the Wechua Nation previously known for a historic pattern of a single-commodity focus, that experienced a successful period of economic diversification and growth until the events after the Wechua Spring that led to national collapse. The pre-collapse GDP of the Wechua Nation in the year 1664 was $78.351 billion Sols. By 1679 AN, it has increased to $225.366 billion.
Before the collapse of the Wechua state, rampant inflation and corruption also thwarted the country's overall economic development, despite the fundamentals of its economy showing consistent improvement, which is largely credited to the country's accession to the Raspur Pact. Political instability, the collapse of the Wechua state, and the extremely difficult topography have all constrained efforts to modernize the country, especially its agricultural sector. Similarly, relatively low population growth due to the Wechu Exodus, coupled with low life expectancy and high incidence of disease kept the labor supply in flux until 1676 AN. The mining industry, especially the extraction of marble, natural gas, and zinc, currently dominates the Wechua Nation's export economy.
The Wechua Nation is currently an emerging, social market economy characterized by a high level of foreign trade. The inequality of opportunities has declined steeply between 1675 and 1678 AN, due to the increased public investment in water, agriculture, sanitation, transportation, and sustainable power sources has sustained the downward trend in inequality of opportunities. Its economy is diversified, although commodity exports still make up a significant proportion of economic activity and thus subject the economy to the risks of price volatility in the international markets. Trade and industry are centralized around major cities like Parap, Rimarima, Apurimaq, and the nation's only port city, San Francisco. Strong agricultural exports (mainly to Constancia and Alduria have led to the development of all the regions of the country.
The Wechua Nation employs central planning, although it still has a substantial internal market economy. Its main trade partners are Constancia, Alduria, Natopia, Ransenar, Senya, and the UGB. Its currency is called the Sol ($). Services account for 53% of the Wechuan gross domestic product, followed by manufacturing (22.3%), extractive industries (15%), and taxes (9.7%).
As of 1678 AN, the Wechua Nation's main exports are marble, foodstuffs, natural gas, software, pharmaceuticals, weapons, services, and textiles. The Wechua economic performance has been tied to exports, which provide hard currency to finance imports and external debt payments. Although exports have provided substantial revenue, self-sustained growth and a more egalitarian distribution of income have proven elusive. Recent economic growth has been fueled by macroeconomic stability, improved terms of trade, and rising investment and consumption.
The Wechua economy has experienced crippling inflation for decades, at some point before its formal recognition at the MCS, experiencing a rate of inflation that reached over 20,000% (1638). In 1660, the government underwent fiscal and monetary reform that reduced the inflation rate to single digits by 1664, when the Wechua Nation experienced a manageable 4.9%. The reforms implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating poverty.
The most important structural changes in the Wechua economy involved the capitalization of numerous public sector enterprises. Capitalization in the Wechua context is a form of privatization where investors acquire a 50% share and management control of public enterprises by agreeing to invest directly into the enterprise over several years, rather than paying cash to the government. A major reform of the customs service significantly improved transparency and reduced corruption significantly. Additional trade links such as roads and railways that linked the country to Caputia built during 1660-1664 further expanded commerce between the two neighbors.
At the beginning of the reign of Sapa Wechua Ayhuasca, a series of radical reforms were introduced, which included key agrarian reforms, expropriation of some foreign companies that had control of important national resources, and a large expansion of the already large state-owned sector. Some of these reforms were not changed until the first days of Inkap Ratin Kayara Mayhuasca Soncco's liberalizing Government, under the rule of Sapa Wechua Manco Capac. He moved to end price controls, protectionism, and most restrictions on foreign direct investment. Other economic reforms like low corporate taxes and a slightly more relaxed regulatory structure have permitted sustained economic growth in the country. It was under his leadership that the Wechua Nation joined the Raspur Pact, which opened the country to one of the largest free trade zones in Micras.
The Wechua Spring brought renewed social and political tension that culminated with structural reforms that have expanded individual liberties, further opened the Wechua economy, boosted wages for Wechua workers, and brought greater political involvement by the people. The country's accession to the Raspur Pact and the benefits of its free trade market, coupled with parallel legislative reforms have locked into place market-oriented policies, that have led to growth and more private investment, especially in the hydrocarbon and telecommunication sectors. Foreign investors are accorded national treatment, and foreign ownership of companies enjoys virtually no restrictions in the Wechua Nation. While the capitalization program was successful in vastly boosting foreign direct investment, the country has begun to experience reduced foreign direct investment as investors begin to complete their capitalization contract obligations.
Central Bank of the Wechua Nation
Port of San Francisco
The San Francisco Megaport Project is a proposed plan to build a huge air, naval, and terrestrial port in the city of San Francisco. Part of the port will be built using land reclamation techniques, with plans to serve as a mega port for the developing economy of the Wechua Nation. It plans to grow one of the largest in Keltia over the following 20 to 30 AN years after its completion, in coordination with assistance and direction from the national government. The port would provide easy access to the interior of Keltia and connect to regional roads and railways. It would be linked to the rest of the country by a proposed series of roads, railways, and tunnels with access for subway, freight trains, and automobiles. A financial center and a new airport would also be built near the port.