Economy of Nasphilitae (Pacifica)
| Currency | Nasphiliti Pacifican Pound Sterling (NPP, ∮) |
|---|---|
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Trade organisations | Island Continent Express (ICE) |
Country group | Newly emerging economy (NEE) |
| Statistics | |
| Population | 
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| GDP |
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GDP growth |
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GDP per capita |
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GDP by sector |
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GDP by component |
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Population below poverty line |  29.75% (2011-2023 total) |
Population at risk of poverty | 1.01% (2023) |
| 43.75 (2023) | |
| Unemployment | 5.01% (2023) |
Main industries | |
| External | |
| Exports | Unknown |
Export goods | (2024 est)
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Main export partners | (2024 est) |
| Imports | Unknown |
Import goods | (2024 est)
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Main import partners | (2024 est) |
FDI stock | 0% (Prohibited) |
| Public finances | |
| Revenues | 5347159380 (2024 est) |
| Expenses | 1583207660 (2024 est) |
(2023)
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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.
History
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
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.
KRYPTOS-01 Design
The Digital Revolutions of P3 Coalition
KRYPTOS-02 and Technocracy
AID Unit Nine Controversy
Reform Party and The Lost Decade
Biochemistry and Energy
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
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
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.