Economy of Nasphilitae (Pacifica)

Economy of Nasphilitae

Currency	Nasphiliti Pacifican Pound Sterling (NPP, ∮)
Fiscal year	Personal:March 2 November 15 State:November 16 March 1
Trade organisations	Island Continent Express (ICE)
Country group	Newly emerging economy (NEE)
Statistics
Population	17775000 (2021) 18184000 (2024 est)
GDP	1257151321518 (2021) 1904343407150 (2024 est)
GDP growth	7.17% (2021) 5.12% (2022) 9.77% (2023) 12.55% (2024 est)
GDP per capita	11920 (2021) 19550 (2024 est)
GDP by sector	Agriculture 15.5% Industry and Research 71.5% Services and Social 13%
GDP by component	Consumption Private: 30% Government spending: 15% Capital: 65% Gross Exports: 0% Gross Imports: 0%
Inflation (CPI)	7.5% (2021) 11.8% (2024 est)
Population below poverty line	29.75% (2011-2023 total)
Population at risk of poverty	1.01% (2023)
Gini coefficient	43.75 (2023)
Unemployment	5.01% (2023)
Main industries	Agricultural (Untraded) Construction and Infrastructure Biochemicals Pharmaceuticals Biofuel prduction Machine tools and Intermediaries Telecommunication tools Digital advancements Cryptographic advancements
External
Exports	Unknown
Export goods	(2024 est) Biofuel Machine parts Intermediary processing machines Processing machines Processed goods Digital innovations Networking broadband
Main export partners	(2024 est) Esfalsa Kliegme Izaakia Eflad Sedunn UPRAN
Imports	Unknown
Import goods	(2024 est) Raw materials Ready goods Microbacteria Silicone Electronic components Electricity Textiles
Main import partners	(2024 est) Phanama Esfalsa Kliegme Tepertopia Izaakia Pelinai Eflad
FDI stock	0% (Prohibited)
Public finances
Revenues	5347159380 (2024 est)
Expenses	1583207660 (2024 est)
Foreign reserves	(2023) 40% APS (£) 33% PSD ($) 12% INT ($) 10% Silver 5% Gold
All values, unless otherwise stated, are in International Dollars (INT$).

The Economy of Nasphilitae is a newly emerging market economy transitioning from closed market import substitution industrialisation. ISI came about as a result of a previous post industrial stage, wherein the outsourcing of industries led to lack of funding for further research and service funding.
The re-industrialisation period required: limiting and later closing of foreign trade, freezing of assets and liquidity so that new companies could be created from fixed capital alone, a period of high unemployment (2011–2013) where former government staff was re-allocated to the new companies, abandoning the use of standard measurements such as GDP, adjusting inflation to be measured according to CPI, while attempting to lower inherited inequality.

While much of these measures were required, it also created an ongoing liquidity crisis, as the new companies focused solely on increasing efficiency by production factors (input:output, longer hours, increase of productivity during each hour, etc). As it already came from a once high developed economy, the companies created were focused on emerging sectors, such as biofuel production and digital tools. During a period of political liberalisation (2019–2023), much of these companies were internally liquidised (meaning the production factors became attached to actual cash). This prepared them for a period of economic boom once market liberalisation was re-enacted.
This consequent double-edge sword of freezing assets and liquidity has under the 2024. elected ruling The Center political party of Syd G Patton and Head of State Grand Duke Dawson Ernst been addressed utilising methods of slow transition. Opposed to methods of shock therapy, the current ruling governments approach has received support from the opposition political parties, as well as the general public.
This method revolves around Quarterly measurements, re-assessments, adjustments; After which liberalisation is gradually made adequate for the domestic economy, as to avoid a long period of volatile unpredictable crisis caused by anomie in society.

Minor future challenges will revolve around combating pollution, inflation and trade liberalisation. Major future challenges include addressing regional inequality within Nasphilitae, maintaining budget surplus while lacking a re-developed electronic industry and re-vitalising formerly major financial service sectors. The biggest challenge is agreed to be in establishing real parity value of The Nasphiliti Pacifican Pound Sterling to the Pacifican Dollar. This has become further difficult as 2024. government limited public debt ceilings and encouraged both the Central Bank and secondary creditors to lower interest rates; As to increase cash flow. Since no debt was inherited and inflation measurements were mostly imaginary, this was seen as preferable to addressing the Liquidity Crisis compared to unbacked emissions of domestic currency.

Characteristics

Main article: The communitarian economic model (Pacifica)

See also: Socialist thought in Nasphilitae (Pacifica), Liberal thought in Nasphilitae (Pacifica), and Mark Guy (Pacifica)

Although there are significant differences among countries which adopt The Communitarian Model, they all have some common traits. The Communitarian model was originally developed in through 1870s to 1950s under the leadership of Unionists and the domestic Praxis school of Socialism. However, by mid-1930s, it would garner support from centrist (Pragmatist) and right-wing (Liberal, domestically called Praxeologist) political parties, eventually uniting under the P3 Coalition. The initial theory was proposed by Mark Guy, founder of the Unionist political party. The Communitarian Model began to gain attention after The Great War and The domestic Civil War (1950s-1960s).

It has transformed in some ways over the last few decades, including increased deregulation and expanding Privatisation and Socialisation of state and government capital and services. However, it is still distinguished from other models primarily by defining "Public property" as an umbrella of otherwise referred to worker cooperatives, collective ownership, social ownership, and employee stock ownership. Importantly, "public office" is the official term used for state or government offices.
Private property includes personal property, regular private property and Commons. The latter refers to former classifid Royal and Noble land, capital and assets which have been transferred to "High Noble owned, Low Noble managed, State or Public listed, in the name of the Collective operated" property. State property, therefore refers to public offices which "serve and manage in the name of the collective country with the interest of profit as pivotal", belonging to the Government of Nasphilitae.
State and Commons are specifically defined for different reasons; State due to the changing nature of governance, Commons due to the reliance of Nobile capital and finance to the wellbeing of the country as a whole. This is a key feature in the Communitarian Model.

Additionally, the countries which practice this model are liberal or constitutional monarchies, ideally (to Mark Guys ideal model) with electoral procedures of the Sovereign Monarch. All may be described as highly liberal and "royalist social", which is sometimes mistaken as highly democratic. Democratic participation is in fact, limited to procedural democracy. The countries usually have a bicameral legislature, using relative majority models in electoral systems, which enjoys "powers vested" as a signifier that it has primacy over the executive which merely acts to conduct the operations needed for wills of the HM Cabinet and the Legislature. There is a staunch cultural support for least privilege of the state (government) in relation to the community and the individual. The communal culture is entrenched in provoding welfare and help to impoverished individual, to which they are given extensive legal means. However, the community agrees to support one anothers individual autonomy. Social mobility is extremely high in-between generations. A sizeable percentage of the population is employed in the Public (usually worker cooperatives or employee-stockholder companies) and Private sectors (roughly 55-60% of the work force in non-public offices). Most employment in public offices (state and government) are in auditing, education, prosecution, judicial, independent executive agencies, and the intelligence (roughly 15-20%). This is followed by the military and law enforcement (roughly 15%). Least employment includes the central executive and legislature government offices (about 5%). There is some form of new corporatist system through an institutionalised arrangement of tripartite arrangements between labour union memebers and employers, mediated by independent executive agencies.

Impact of communitarian culture

Main article: Culture of Nasphilitae (Pacifica)

Since its foundation in 1589., the socio-economic and political culture of Nasphilitae has been highly communitarian. Due to its nearly determinant levels of unchanging static as a phenomenon, its features have been crystallised by domestic and foreign theorists over time. Impressively, these characteristics have survived the Iron Century socio-cultural revolution and appears to be withstanding globalisation of its culture.

Reasons for this resilience are disputed among scholars, which can be classified into three Schools. "The Intrinsic Equivalence School" argues that the same amount of innovations brought by both events have already existed, as the amount which were not intrinsic, which allowed for the latter ones to be rejected. In opposition, "The Collectivist Identity Resiliance School" argues that Nasphiliti individualist liberal values and royalist social values subject themselves to a transcendental unified identity of the Collective, which simultaneously accommodated demands while preserving its uniformity.
Finally, "The Political Law School" argues that Nasphiliti socio-economic culture was initiated by the arriving settlers, which were highly zealous yet diverse groups, seeking common institutional arrangements. This initial motivation would shape Nasphilitaes political culture in "the principle of least state interference in social communities and individuals self-identity and management". Lastly, the School argues that such arrangements were over time given the legal and social frameworks of "co-existence or polyarchy in internal affairs identity and paradigm", which is by its nature simultaneously resistant to non-organic foreign cultural import and assimilatory of foreign emigration.

The communitarian culture of Nasphilitae crystallised characteristics are described as "pro-liberal, pro-national, socio-culturally silent". It includes self-sustaining communities with various forms of cooperatives within them and the institutionalised citizen-wide help between these communities and defence of the country. An individual is shaped by their particular upbringing in communities which instil these values, as these are the values which allowed each of them to freely exist and participate in country affairs. Solidarity is seen as the pivotal barrier from intrusion and impoverishment of all other communities. Furthermore, Nasphiliti communitarian culture is distinctive from other communitarian cultures by its resistance to positive rights and state interference. It is supportive of negative rights (rights not to have the state provide, freedoms from actions), since this "silence of the state" is the cornerstone which maintains internal harmony and peace. Any violation, wherein the state would enforce particular community interests on the country level, is viewed as threatening all communities and abuse of the extent of rights its been given. This was the foundation of Nasphiliti secularism.

Impact of education and religious foundations

See also: Religion in Nasphilitae (Pacifica), Schooling system in Nasphilitae (Pacifica), and Education in Nasphilitae (Pacifica)

Early introduction of mandatory literacy courses by the turn of the 18th to 19th century drastically impacted the human capital accumulation in Nasphilitae. Confluences of religious monastic universities (pre-1660) and schools (post-1661), with early legalisation of ecclesiastical Universities (1700-1730s) provided established channels for the mandatory literacy to expand into mandatory basic education (1810s-1840s). Wide newspaper availability (1850s onward) created a highly vigilant and educated population. However, this would also create "overqualified" manual labourers (1860s-1930s) which were quick to organise and gain political prominence. It's reasonably assumed that the impact of early education introduction is the reason why global ideologies of the time (industrial liberalism and union socialism) have been introduced by differing domestic modifications.

Standardised 14-year (as of mid-2010s, 17-year) compulsory education system was adopted in 1901. Little modifications were made in terms of pedagogical and didactics since its introduction. It focuses on formal sciences early on as the foundation for logic and valid thought process. The Mandatorian made primary, secondary and undergraduate education compulsory, lasting from age 5 to age 22. This means that "undergaduate" and "bachelor" are distinguished in Nasphilitae. This is related to the aforementioned communitarian culture, as ethical naturalism gained near-universal following. Religious confessions were adaptive to these changes, opting to provide foundations in the form of boarding schools which served as orphanages. During the Iron Century (1952-2005) and contemporary age, the foundations would expand their funding to include scholarships in City Universities and culturally influence foreign exchange students by offering free scholarship programs.

Results of these two factors are seen today in the form of highly educated general population, high human capital potential. Over 85% of the population has either Vocational specialisation (VS) or completed Bachelor diploma, which are impressive developments given the highly stringent criteria for post-Mandatorian (post-17 primary, secondary and undergraduate education) higher education (VS or BA, MA or VSMT, MSc, and PhD). Another factor is that 85-90% of Nasphiliti citizens attend weekly service of their respective religion, while 90-95% declare themselves as "Theistic" on the annual National Registry census. This makes Nasphilitae simultaneously one of the most educated and most religious countries in The South Pacific.

Geography, Agriculture, Resources and Energy resources

See also: Granhalia (Pacifica)

Distinctive features of Nasphilitae are found in the "Inclinelands", which comprise 65% of the territory, most notable of which are lack of inland surface bodies of water and seasional downbursts with severe extratropical cyclones due to frontal boundaries. This led to the formation of aeolian loess.

The fertile surface loess surface, coupled with seasonal volatility between sudden floods and dryland, were noticed as advantageous by the colonial settlers. Nasphilitae was an early adapter of low-till farming through natural permaculture and shallow strip-till farming by disc harrows. Water retention techniques, primarily contour plowing and semicircular bonds, prior to terrace terraforming became widely available during the Industrial revolution, which also brought with it surface soil steaming boilers and machinery.
Granhalia, a noble-owned legal monopoly specialising in agricultural production, food processing and distribution, is the largest domestic company by revenue. Nasphilitae produces a wide range of products, such as sorghum, wheat, barley, and corn. The cloud forests of the southern and western mountlands provide for permacultures fruit gathering. The coastal plains formerly contributed to sugar production, prior to the discovery of valuable resources from loess deposits, which led to mass excavations during the 19th and 20th centuries. Granhalia is specific in that it does not export its produce, as per the contractual exchange of being the only legal monopoly in Nasphilitae.

Resources from the aforementioned coastal plains include limestone, granite, coal, quartz, medicinal clay, and mineral crystals, granite. Western mountlands were inspected during the 19th century, classified into karsts or mogotes, which explain the (still speculated) complex and vast cave systems found on the western crescent of the country. During the 1980s, it was discovered that much of the north-western territories were thermokarstic sediment, upon which geothermal power stations slowly began constructing, though remain severely underutilised in favour of biofuel. These geothermal stations usually accompanied salt mining, which were discovered to be in abundance.
Besides salt, Nasphilitae is notable as having had or have large deposits of silver, which was extensively exploited in the latter half of the 19th century as means of paying colonial duties to the Austral Empire. This practice was abandoned over the first half of the 20th century, though geologists still estimate that silver deposits are far from drained. Nasphilitae also produces zinc, phosphate, bismuth, tungsten, iron, coal and manganese. It formerly extracted oil and gas deposits. This policy changed in 1993., when extraction was ceased in favour of importing raw oil and gas, which were instead refined. A modified version of practice continued under David Innsbolt (2002-2019), until the strict import legislations of 2006. However, refinement of stockpile was still practiced until the 2007/2008. energy black-out. This, though, did not re-initiate the extraction of oil and gas. Refinement was re-introduced after 2019.

While uranium deposits were found in 1991., strong public opposition and the political culture of rejecting any potentially hazardous radioactive energy source nor mine extraction, left them unused for the foreseeable future. This opposition to radioactivity had according to some experts, stagnated the industrial potential of Nasphilitae, limiting itself from utilising nuclear power as the energy source required for large scale extraction operations. Others have argued against nuclear energy primarily from the stand-point of nuclear waste, rather than its radioactive hazard. Additional opposition came from the nobility, which was concerned that waste management techniques such as deep geological repositories would lead to soil degradation and contamination, thus damaging Granhalias production. Nuclear energy had been on moratorium until innovations in cold fission and fusion become viable.

Sectors

The leading sectors (not including public offices) by employment, comparative production output (within sector), and GNP participation. Note that high comparative production output and GNP are implicative of an exported sector, as low indications imply an imported sector. Some conjunctive sector discrepancies indicate an emerging industry (ex. Construction and Infrastructure high indicators with Transportation services low indicators). Some services production output is not reliably deductible:

• Primary:
  • Agriculture-Fungiculture-Gathering (8%, 75%, N/A)^{(Granhalia monopoly)}.
  • Forestry and Carpentry (3%, 10%, 1%).
  • Mining (2%, 15%, 3%).

• Secondary:
  • Resource Refinement (6%, 10%, 5%).
  • Home and Tradescraft Appliances (1%, 5%, 2%).
  • Intermediary Machine tools and Machinery (19%, 30%, 16%).
  • Construction and Infrastructure (17%, 40%, 17%).
  • Military Industrial Complex (5%, 13%, 15%).
  • Energy and Electricity (7%, 2%, 4%).

• Tertiary:
  • Industrial and Research design and engineering (5%, 58%, 10%).
  • Financial services (5%, N/A, 7%).
  • Pharmaceuticals (7%, 30%, 7%).
  • Transportation services (5%, N/A, 3%).
  • Telecommunications and IT (4%, 16%, 10%).

Industry and manufacturing

Nasphilitaes secondary sector has had the most variance throughout its history. Pioneering the commercial or early industrial revolution, manufactory workshops were developed into small and medium factories. The Industrial Revolution brought the advent of a large, domestic heavy industrial sector which was reliant on mining. After the end of the Civil War against the Military Junta in 1962/1964., mining saw cessation, as did the industrial sector. Favouring the tertiary services sectors and pioneering the Digital Revolution, many factory plantations were foreclosed and their production outsourced. This would have severe political and economic implications (see History section below). During David Innsbolt (2002-2019) and the Import Substitution Re-Industrialisation, much of the Industrial sector was reinstated, this time at the expense of the service sector.

From 2019 onwards, the renovated Industrial sector and new Import Substitution Re-Industrialisation companies continue the Re-industrialised agenda. It includes the strategic goal of monopolising intermediary industrial goods and construction on the global market, while sacrificing mining in favour of importing raw materials. As trade liberalisation slowly intensifies, this agenda can be pursued in synergy with the plan to renovate the services sectors (particularly the lost Financial services global dominance). However, the challenge of energy remains looming.

Energy

Main article: Energy in Nasphilitae (Pacifica)

As had been discussed in the Geographic section above, energy is an uncertain and constantly looming issue in Nasphilitae. Reasons for this are the abandoning of domestic exploitation of fossil fuel in favour of refining them and the near-unilateral rejection of nuclear power, either which are pre-requisite for enough energy to be produced as to satisfy the Industrial-Services goal. While major breakthroughs were made in the fields of Biofuel (particularly ones derived from Luminescent microorganisms) and it satisfies the current energetic situation, foresight suggests that it will not be sustainable if the goal is to be realised.

Further renewable energy sources have and are being a (somewhat) heated point of domestic debate. As Nasphilitae lacks inland surface rivers, hydropower garners no advocates. However, three alternative additional sources have created three "blocs" of advocates: Wind power energy, Solar power energy, and Geothermal power plant energy. The RDEFI, an independent executive agency responsible for ecologic standards, is rejective of wind power energy due to the waste it creates. Financial and engineering experts are skeptical of solar power potential for the foreseeable future. The most support is currently gathered around Geothermal power sources, due to the abundance of below-surface fluvial bodies of water. The RDEFI is tolerant of this method due to its record of being safe in comparative relation to other energy sources, as a geothermal power plant never completely exploded in any accidents that have occurred and as hazards created from mismanagement have remedy. Furthermore, the pollution of geothermal power plants have effective and low-cost solutions, which have developed throughout decades of their use.

It is therefore very likely that future energy sources will be amplified by Geothermal power.

Financial services

The Crownlanded Grand Duchy of Nasphilitae, a Dominion of The late Austral Empire under Queen Dorothy Atkinsons reign, was globally renown for its financial services. After its elevation to the status of Dominion, colonial duties were paid in silver, while Nasphilitae was given the allowance to trade outside of the Austral Empire and preserve Foreign Exchange Reserves in other currencies. Having been a neutral country, the Dominion generated profit through the FX Market and by offering Interbanking services to the growing global trade market in the second half of the 19th century.

Finances generated by the international financial service sector fuelled the Nasphiliti economy for nearly a century. It survived the Military Junta and the militarisation of the industrial sector, it invested into Eric Xors cryptographic research and later KRYPTOS, and it enjoyed a privileged position during the subsequent P3 Coalition. The financial services sector would falter during "The Lost Decade" of the Reformist Party (1988-2002). While Innsbolt considered that financial services were in need of renovation as well as the industrial sector, the policy was to post-pone their re-initialisation while the heavy industrial base was in recovery.

After 2019., the financial service sector began recovery. This was accelerated in 2024. due to the liberalisation of trade, re-opening of the Agorport Stock Exchange, and "privatisation" (in reality, both socialisation and privatisation) of the ISI-Reindustrialised new companies. Manner in which this was conducted pioneers incentives for its recovery. Namely, the de-nationalisation of companies occurred using three methods: "Closed Voucher" (Employee-Owner stock assets, "Public Cooperatives" (Worker self-managed social enterprises), and "Public Auctioning" (regular privatisation of companies by public offering). Additional incentive was the fixation of interest rate to 2.5% of the Central Bank onto commercial banks, as well as the issuing of Government guarantees (budget-backed) for loaning ont the secondary market. This encouraged crediting and increased the flow of money, which was the actual goals of this policy, as Nasphilitae had been in a Liquidity Crisis. Additional results included the creation of private Commercial Banks and public (in Nasphilitae sense) Social Crediting Unions.

However, a looming challenge which remains is the FX market. In particular, determining the real value parity of the Nasphiliti Pacifican Pound to the Pacifican Dollar. This is complicated by the historically high level of autonomy and self-governance enjoyed by the three central financial and monetary institutions (The Central Bank, the Royal Treasury, and the AGSE), which are discussed in below sections.

Pharmaceuticals

See also: General public v the AID 1982 (Pacifica) and Reformation of Department Nine into Unit Nine in Nasphilitae (Pacifica)

Early research and Drug policy section

Connection to the military and the AID (1900s-1979)

AID Unit Nine experimentation on the general public (1950s-1982)

Private Healthcare section

Pharmaceutical revenue section

Health hazard addiction section

Infrastructure

Main article: Infrastructure in Nasphilitae (Pacifica)

{{See also|Air travel in Nasphilitae (Pacifica)|NAEROBUS (Pacifica)

Renovation plan

Telecommunications

See also: NAPA OS XX (Pacifica), KRYPTOS operating systems (Pacifica), and PrototAutomaton (Pacifica)

Statistics on radio, television and telephone

Elaboration on cellular and mainframe research (Technocacy P3 Coalition period, Academic OPAL)

Internet Broadband, Arcades and Home Computers

Statistics on devices and internet uses, providers

Satellite impact on cable television, NAPA-OS-XX, and KRYPTOS-IV plans

Lack of domestic smartphone attention

Lack of domestic console attention

Airspace

Main article: Air travel in Nasphilitae (Pacifica)

See also: Nasphilitae folklore and myths (Pacifica), NAEROBUS (Pacifica), North South Bridge Briefs (Pacfica), and Nasphilitae new transport strategy (Pacifica)

Summarised history

Impact of the Ziz myth

Airhubs, airports, airfields and airstrips (active)

Short section of military airfields and airstrips

Airliners

Maritime

SHORT summary (Arrival and Buccaneer Wars), SHORT summary (impact of Industrial revolution)

Former dockyards (PERMANENT), Free Port City legal ambiguity

Active dockyards (Include 2025 ones)

Commercial vessels

Terrestrial

SHORT summary on history of rail travel

Railway network now

Metro of Agorport

Metro of New Sorthane

Planned (WAIT FOR IRP) Metro of Suhavenster

Monetary and financial system

Main article: Octagon district, Agorport (Pacifica)

See also: Political economy of Nasphilitae (Pacifica), Nasphiliti pound sterling (Pacifica), and Octagon district conspiracy theories (Pacifica)

Chancellory

Secretary of the Exchequer

Civilian government

Fiscal year

Budgeting

Taxation and Excise

Old Monetarist School v New Monetarist School (Cohen)

CURRENCY

Central Bank

Duties

Structure

De facto independence

Control over commercial banks

Lax interbanking and intermittence regulations

"Highest jurisprudence on monetary policy"

Royal Treasury

Structure

De facto independence

FX Reserves

Budget policy consultation obligation

Fiscal balance sheet auditing

Monetary policy co-consultation

The AGSE

Main article: Agorport stock exchange (Pacifica)

Joint Service structure

Listings

FX Market activities

Monetary policy co-consultation

Former De facto independence

Credit rating and National Registry coordination

History

See also: Candice Cohen (Pacifica)

From the first colonial settlers in 1589. to present, Nasphilitae underwent numerous different economic models. It inherited from The Austral Imperial Core early workshop technical advancements, which made it an early pioneer in Proto-industrialisation. Yet, as the colonial settlers were established tenures of arriving domestic Nobles, it was late in the Commercial revolution. Prior to gaining independence in 1952., three major changes impacted the economy of Nasphilitae over those ~300 years.

First came about as a result of early adaptation of rentier fiefdoms as opposed to the manorial system during Grand Peer-Generals Morganfort and Taylor. This made the High Nobility which owned the land tied to residing on it if they wished to inherit it. It also allowed the Lower Nobility and serfs to abandon their suzerain tenures freely, which were compensated by more capable workforce which specialised in agriculture and received payment for their work. Furthermore as a result of that, a lot of former serfs were forced out of their former suzerain tenures, which led to the first mass urbanisation. However, as the Lower Nobility had no land of their own, most of them also moved into the coastline Cities. The new-comers divided between "The Free Buccaneers" (Pirates) and "Privateer Insurance Companies" (which were Chartered and whose privateers had received Letters of Marquis). Ultimately, the divide resulted in The Buccaneer Wars (1734—1771).

Second is a symbiosis of the first and the third. Namely, urbanisation and the establishment of PICs, would finally lead to the Commercial revolution in the 1760s. This led to founding of (still legally unclear) "Free Port Cities" by owners of the Chartered PICs. Since they legally did not fall under the jurisdiction of either Nasphilitae nor the Austral Empire at the time, they were allowed to tade with other merchants outside the Imperial territories as well. Some Free Port Cities were leased to other countries, such as exiled Izaakia, which today serves as a foreign military base. Other Free Port Cities helped emerging powers at the time (namely Karnetvor and Sedunn) in establishing trade outposts through free docking rights. Coupled with constant communication with the Imperial Austral core, this provided Nasphilitae with tools for very early Industrialisation, which is usually divided into the first wave (1777—1844), second wave (1844—1889) and third wave (1889—1940).

The third and final major change came about during the reign of Queen Dorothy Atkinsons (1850—1900), specifically in 1851–1853. Dorothy managed to negotiate a deal with the Austral Empire wherein Nasphilitae was allowed to trade with other countries and no longer had to pay colonial duties in natural goods. In return, Nasphilitae would provide the Imperial Core colonial payment with Silver, which was found to be abundant. At the time, this was seen as favourable, and led to the establishment of The AGSE, as well as making the second wave of industrialisation accelerate into rapid development of domestic industries. Nasphilitae specialised in financial services at the time. One important legislation passed by Dorothy Atkinsons was the Ordinance of 1875., which essentially heavily incentivised participation in the Military, and subsequent development of domestic MIC industries.

Machinery and the Proto-Digital Revolution

Main article: Military Junta period in Nasphilitae (Pacifica)

See also: Carl Darzens (Pacifica), Daisy Day (Pacifica), and Cryptography and espionage in Nasphilitae (Pacifica)

To understand how and why Nasphilitae became one of the pioneers in The Digital Revolution, it's crucial to understand the context behind why it is often said that it was "forced" into the Digital Revolution.
The third wave of Industrialisation (1889 1940) is distinguished from its predecessor in mainly political events at the time. Rapid development after 1853. created a liberal-oriented Whig Club which later was re-named to "The Industrialist Party". However, the (lack of) working conditions also created a specific type of socialism which was domestically theoretically modified by Mark Guy, founder of "The Unionist Party". Neither are important for this topic, but created a political atmosphere where parties were seen as forms of interest groups.
This would, together with the previously mentioned Ordinance of 1875., pave the way for the Military to create their own political party. As this was ongoing, an early suffragette by the pseudonym of Daisy Day, who wrote in primitive cipher, began being studied by Eric Xor.

King Carl Darzens (1901—1928) heavily expanded social rights and was favoured by The Unionist Party, hence why domestic socialism to this day is very Royalist. Apart from those reforms, his HM Cabinet had Owen Edwards in it, among others. Edwards was interested in Xors inquiries into Daisy Days cipher, and insistently kept proposing to Darzens to establish the Agency for Identification and Documentation (The AID). This was done in 1904. by Edwards himself utilising regulation law, though The AID would gain notability with the Ordinance of 1911., when Darzens finally Chartered its creation as a Government Agency. Eric Xor would be the first Directorate of The AIDs (now defunct) Unit Nine, specialising in cryptology and cryptography. KRIPT-01, a prototype to KRYPTOS-1, was created in 1925.
Secondly, Darzens expanded the Ordinance of 1875., creating a professional standing Military force. Along with Owen Edwards, he included an established military strategist who heralded from one of the PIC families, General Walt Marcel. Marcel proposed a modification to the Ordinance, wherein mandatory military service of all adults would be enacted, to serve in the Military of the Country for three years. Darzens saw this as an opportunity to quell both the Industrialists and the Unionists. The expanding legislation would be enacted posthumously, by a (likely) forged Will of Carl Darzens.

Since the Nobility at the time could not agree on nomination for a candidate, the opportunity was seized by General Walt Marcel to enact expansion of the Ordinance in 1929. The Militarist political party would in 1930. elections win substantial majority, as those now drafted were also party members. This election saw the change in election law which, essentially, allowed The Military (headed by General Walt Marcel) to bring about a nepotistic Stratocracy. However, Eric Xor and The AID were kept uninterrupted.
The period of 1930-1955 saw rapid militarisation globally as well as The Great War. Even upon the election of Grand Duke Philip Masons in 1934., such global events convinced the Nobility to tolerate what had essentially become a Military Junta. This would change in 1952. after Austra formally granted independence to Nasphilitae, and especially after 1955. with the end of the Great War. Marcels Junta would continue to de facto rule Nasphilitae until 1962., de jure until 1964. However, despite all this, Eric Xor would develop KRYPTOS-01 in 1940., marking the end of industrialisation in Nasphilitae. Keep in mind that the Military-Industrial Complex was merely restructured after 1964., and that Machinery kept being a major part of Nasphilitae's economy.

Biochemistry during Innsbolt

Main article: David Innsbolt (Pacifica)

See also: Travis Palmer (Pacifica), PrototAutomaton (Pacifica), and Jonas Val (Pacifica)

In 1998., an established orator and career politician at the time, Palmer was chosen to be the Speaker of the Parliament as an independent politician between the opposing Reform Party and P3 Coalition. As neither could form a ruling government, Palmer utilised his position in Joint Sessions as Speaker to enact "Rules and Regulations", which ultimately limited political freedom of both parties. During this time, a young man by the name of David Innsbolt working in Granhalia, decided to join Palmers List. Innsbolt was noticed by Palmer with his dissatisfaction over how the incompetence in Technocracy of the P3 Coalition or Bureaucracy of the Reform Party was felt by ordinary citizens in decrease of living standards.
Innsbolt was first introduced in 2001. Joint Session to both politicians of the P3 Coalition and the Reform Party, as well as the general public as these sessions were televised. Coming from a blue-collar background, Innsbolts first appearance included him reading out a paper he wrote, criticising both parties for allowing Nasphilitae to decay into "A Post-Industrial Society". Palmer noticed that Innsbolt was not a good public speaker but that his words resonated extremely well with the voting audience. Consequently, Palmer decided to run on an "Innsbolt-Palmer List" ballot for the 2002. elections, whose outcome saw the List winning over 70% of the total vote.

We will note that Innsbolts reign (seen as lasting from 2002–2019., though realistically from 2011–2019.) also saw numerous reforms which limited political and media freedoms. However, we will focus on his economic policies and how they relate to the specific rise in Biochemical Industries. In March of 2003., when Palmer was absent due to sickness, Innsbolt managed to:

• Repeal the anti-trust laws (last modified:1988).
• Last-minute budget re-allocation from administration to "Public property creation fund".
• Pass a regulation which allowed for companies to be created purely on capital basis.
• "Incentivise" pharmaceutical companies to donate 50% of their budget gross revenue to R&D in Biochemical fields to all Universities in the country for 10 years, or risk their budget net revenue be subject to 30% taxation.
• Increase tariffs on all imported goods from 20% to 45% (modified in 2007 to excise tax distribution of imported goods by 45%)
• Increase taxation of domestic firms mainly operating outside of Nasphilitae by 65% for 5 years, after which their savings and property would be seized by the state authorities and declared "Public property".
• Incentivise mergers of infrastructure, mechanical and pharmacological companies which still mainly operated inside Nasphilitae by offering a 10-year grace period of no taxation.
• Increase excise on exports of any goods by 25%.
• Prohibit retrieval of funds from the National Reserve.
• Prohibit the Central Bank from further emissions of domestic currency.
• Repeal environmental and regulatory laws in relation to the Industrial sector.

2008 Power Outage, Biofuel and Innsbolt-Palmer Split

All which paved the way to mass creation of giant domestic operating companies specialised in mechanical engineering, biochemistry and (soon) Biofuel. Palmer disagreed that these reforms were too quick. However, 2003-2011 saw the establishment of major new Industrial sector "Public" companies with no additional burden on the budget. As Nasphilitae lacked an established Electronic Industry, the increase in tariffs and the modification in 2007. created a nation-wide power outage lasting for two weeks in the following year. This event is likely what began swinging public opinion against Innsbolt, as response and ahead of 2009. elections, he managed to convince Palmer to ban the P3 Coalition and the Reform Party from running. As such, 2009-2011 saw substantial opposition in the Parliament, merely in the media.
This prompted PrototAutomaton and AmpoChem Inc. to jointly work on developing actually efficient Biofuel technologies. The project was financially strongly supported by Innsbolt who also oversaw a lot of work being done. It took until 2014. for a specific Biofuel breakthrough to be found, which in 2024. comprises 85% of all energy in Nasphilitae.

Two theories exist for the 2011-2013 Innsbolt-Palmer split, each favouring one or the other. A more prominent theory supported by the 2019–2023 transition governance saw the divide as having a political nature. Namely, 2009-2011 opposition mainly came from the media, which led to Innsbolt in 2011. drastically decreasing media freedoms, as well as setting a quota on employees listed as "Technocrats" or "Bureaucrats". Ultimately, in 2013., Innsbolt prohibited all political parties and drastically re-allocated formerly employed administrative staff to the newly created companies. The less prominent theory has to do with the fact that these changes were ultimately what formed the initial Innsbolt-Palmer List, and that Palmer was a dead weight to much needed reforms. As time goes on, this viewpoint seems to be gaining prominence, as 2013–2019 saw the greatest increase in living standards for the average Nasphiliti citizen.

Accords and the Second Digital Revolution

Main article: Peaceful revolution accords in Nasphilitae (Pacifica)

See also: Lloyd Paul Taylor (Pacifica), Suhavenster circle (Pacifica), Open public access library (Pacifica), and Media in Nasphilitae (Pacifica)

After the "August Rain" demonstrations in 2019. which were initiated by the Suhavenster Circle, an underground opposition coalition led by Peer LP Taylor, The negotiations over the Peaceful Revolution began. Contrary to advice from Stenhouse at the time, LP Taylor convinced Travis Palmer to preside over negotiations with Innsbolt. Although the negotiations are not public, the resulting Accords saw David Innsbolt resign from office.
A temporary Intermediate government was set up with a mandate of four years. It consisted mainly of old P3 Coalition members, Suhavenster Circle members and was headed by LP Taylor. Aside from internal liquidation of newly emerging companies, this government did not enact many liberalisation reforms. It kept being reasoned that this government lacked legitimacy and that elections needed to be held after the four year mandate was over for substantial reforms to take place.

Despite how inactive the Intermediate government (2019—2023) was, its policies in the realm of political liberalisation somehow managed to create a framework for the Second Digital Revolution. RANDICE attributes this to the fact that the AID was a key component which had been opposing Innsbolt since his first appearance in 2001. As such, a lot of networking limitations which were seen at the time were likely deliberate operations undertaken by the AID. This hypothesis is further supported by the fact that NAPA-OS-XX and MLMLAI NUS were seemingly quickly developed in 2024., despite being mostly very robust.

Dawson Ernst Period and the Techno-Agricultural Revoution

Main article: Dawson Ernst (Pacifica)

See also: Granhalia (Pacifca), Politics of Nasphilitae (Pacifica), and Political parties in Nasphilitae (Pacifica)

L.P. Taylor, despite being backed by three other Peers and most of Innsbolts former opposition, ended up losing the elections for the Grand Duke and Head of State to Dawson Ernst, on 02. Dawson enacted an electoral Ordinance within 24 hours, prior to even attending the coronation ceremony. It mandated that political parties be the only ones who can be present on ballots. Finally, it abolished the dysfunctional P3 Coalition. The subsequent elections were won by Pattons Center Party, while the HM Shadow Cabinet was won by Trentons Opportunity Party.

Although the government is that of an Assembly Parliament, meaning its Lower House mandate is limited to 20, it seems that both Patton and Trenton have negotiated with one another well enough to pass substantial reforms regardless of how short their term is. "The Simulacra Package" was openly negotiated between the two party leaders and includes the mentioned slow transition. It also included "The Agenda", a rough framework of reforms that need to be passed prior to the passed within a year. Two are of vital importance: Codification of a minimalist Constitution, which was advocated by The Center during their campaign; and (short-reference) "Act on Workplace Organisation", which was advocated by the Opportunity Party, UML and NNP in their campaigns. It re-inforced the 1988. anti-trust laws. This act introduces the "Two Associations", one uniting all Union and employees from every workplace to the central Association of Unions; and one uniting all Employers and Investors in the same manner. It also introduced the RDEFI, though unlike the Two Associations, it is explicitly part of the Lord Chancellory jurisdiction. The RDEFI is tasked with enacting ecological policies to reduce pollution.

See also

• List of companies in Nasphilitae (Pacifica)
• Candice Cohen
• Old monetary school of Nasphilitae (Pacifica)
• New monetary school of Nasphilitae (Pacifica)
• Fiscal autonomy of Nasphilitaes administrative subdivisions (Pacifica)