The Economy of the People's Republic of Porto Capital is primarily based on a system of state ownership of the means of production, worker's cooperatives in non-strategic industries and services, collective farming and centralized administrative planning. The economical policy is decided by the National People's Development Council, an organ made of representatives from the People's Senate, the Economy, Labour, Industry, Trade and Agriculture ministries and delegates from trade unions, worker's cooperatives and factory committees.
For the first three years after the Peaceful Revolution, the government of Porto Capital allowed a number of free-market policies from former Brolecia to continue in place in the new country - to the point that Vexillium Bank reports from 303 considered the People's Republic a "liberal economy". These measures, temporarely retained in order to acquire foreign hard currency, were gradually withdrawn by 304, when the current economical policy was officially adopted.
Since 304, Porto Capital follows, in essence, a centrally-planned economy. From 303 until 309, most of the heavy, strategic industries were nationalized. Other non-strategic industries, as well as most major companies of the services sector, were reorganized as workers' cooperatives. From 302 to 308, a major land reform programme reorganized all arable land into collective farming areas. Still, a small - albeit healthy - private sector still remains.
The National People's Development Council defines both short- and long-term economical planning for Porto Capital, determining goals, investment projects and general economical policies - always aiming for objectives such as macroeconomical stability and negligible unemployment. Its policies, then, are applied and followed by the Portocapitalian economical entities - state-owned enterprises are obliged to follow these directives, while they serve as recommendations for the workers' cooperatives, farming colectives and private enterprises. The state-owned Bank of Porto Capital is able to furnish short- and long-term credits, pending approval by the National People's Development Council.
Daily planning is achieved via distributed decision support systems. Economical data is supplied on an hourly (for key industries), daily or monthly (for non-strategic areas) basis by every workplace in the country. This data - information as diverse as raw material imput, production output, consumer behavior and number of absentee workers, depending on the economical sector - is then fed into a statistical modeling software, which is used to make short-term predictions and develop necessary adjustments. In case of abnormal behaviour, or in case any parameters fall outside accepted ranges, managers and the National People's Development Council are alerted. This same data is also fed into an economical planning software, used by analysts of the National People's Development Council to forecast the possible outcome of economic decisions.
From 303 to 309, the government of Porto Capital set in motion a programme of industrial reorganization. While most of the heavy industries were converted into state-owned enterprises - as per the socialist maxim of collective ownership of the means of production -, non-strategic industries were converted into workers' cooperatives. A number of private-owned industries still remain, normally small or family-owned business acting on non-sensitive sectors. Factory committees, made of representatives of the workers, usually send delegates to several instances of the Foro.
The Portocapitalian industry is based mostly on oil, mining and chemical companies, with a small electronics and computing industry. Notable Portocapitalian industries include Petromax, Corley Motors and Belosoft.
The 303-309 economical reorganization also affected the services sector. Major companies were combined and converted into either state-owned enterprises or workers' cooperatives. Most small businesses, however, were untouched. Key companies in the services sector include AirPC, PortoComm, Yellow Flag Lines, Televídeo Nazionaļ Portocapitaliana and IngáliaNews.
As the great estates of the old Mauretanian nobility were expropriated during the land reform of 302-308, the agriculture of Porto Capital took its current form, based on hundreds of collective farms, ranches and fisheries. Agriculture products, such as beans, coffee, maize and tropical fruits rank amongst the main exports of Porto Capital.
All banking establishments of Porto Capital were consolidated in 305 into the single state-owned Bank of Porto Capital.
Apart from certain services tariffs (such as electricity, internet access and water), fuel and food, there are no price controls for consumer goods and services in Porto Capital.
Types of companiesEdit
Economical entities in Porto Capital may be registered - and organized - as any of the following:
- Company owned by the People's Republic (EDRŞ) is the standard form for state-owned enterprises. These companies must follow all directives of the National People's Development Council and, as such, management boards and other key posts are usually nominated by special inter-ministry committees. Exemples: Petromax Petróleos deļa Şente deļo Porto Capital EDRŞ, Enerşia Nazionaļ Portocapitaliana EDRŞ
- Company managed by the workers (EGL) are the common workers' cooperatives. Workers receive a conventional salary, plus a certain share of the cooperative's profits. All management posts are voted on by the workers themselves. In case of severe mismanagement, the workers may call for government intervention in the company. Exemple: Aeroliñas Portocapitalianas EGL.
- Mixed-ownership company (EDM), where control and manegement of the enterprise is divided between the state and a private individual or group.
- Limited company (Ltd), the standard private-owned enterprise, which may be owned by a private individual, or a group, or a consortium. Shares may be or may be not publicly traded. Exemples: Companhia Automobilística Corley Ltd, al'Líga al'Koxída al'Kamelo al'Ouahranija Ltd.
The currency of Porto Capital is the Silas. As per directives of the National People's Development Council and the Bank of Porto Capital, the Silas follows a fixed exchange rate, being pegged to a basket of foreign currencies - namely, the Cruisanan Crown, the Lendosan Coronalo, the Zartanian Crown and the Burovian RealmsZaster.
- Gross domestic product: CC$ 319.150.000.000
- GDP Per Capita: CC$ 16.118
- Inflation Rate: 1.2% per year
- Unenployment Rate: 2.2%
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