Esplandia’s economy is a complex system that tries to balance free market decisions over goods and services with a centrally planned system that decides which companies are allowed to compete in a given area and how much of the market they can hold. It would be easy to call it something like a Planned Market Economy, but that description would be too simplistic and inherently misleading. The state argues that it has an inherent interest in promoting the economy, and it sets about doing this by making decisions based on what is considered best for the Kingdom, or its regional divisions. While things like transportation, infrastructure, utilities, and emergency services are completely state controlled, very little else is.
The state supports entrepreneurialism and innovation with grants and beneficial policies, but limits number of startup businesses of similar types in a region. This is to prevent over saturation while still promoting competition. Each business or corporation is able to set their own prices within reason, and have complete freedom of choice in employment and termination. As long as a company operates within the limitations set by the government they can handle their own affairs without intervention.
Esplandia is dominated by its own domestic companies, but foreign corporations are allowed to operate within their borders, as long as the government deems their operations are not detrimental to Esplandian businesses. Foreign corporations are also required to follow the same strict guidelines and rules set forth by the state as domestic businesses, with a few other limitations.
Foreign corporations operating inside Esplandia cannot buy or sale property or assets without government approval. Should a company cease operations inside the kingdom, the government has the right of first refusal on buying up all assets. The Esplandian government is also the only entity that any foreign corporation can sell real estate assets to. The state rationalizes that by having this much control over foreign corporations they can prevent those corporations from pushing the interests of their home nations within Esplandia.
The state also has final say over what can be imported into the country, though over the last twenty years many of these regulations have been relaxed, and only bans on certain pharmaceuticals, automobiles, and most firearms remain. Esplandia maintains a skilled labor force, a high level of innovation, and medium to low levels of corruption through a progressive policy of education. All Esplandian youths are required to attend fully funded schools, attend a two year university or trade school, and then serve a two year mandatory state service in either the military or any qualifying civil program.
Service Industries make up the largest percentage of the nation’s gross domestic product, with telecommunications and information technology following after. Esplandia is also one of Eras’s biggest exporters of raw materials like Tungsten, Iron, and Copper. Despite having a wealthy and powerful elite nobility, wealth in Esplandia is evenly distributed between the lower and middle classes, with the vast majority of Esplandians being able to live comfortably on their incomes. However the upper 5% of the population controls the majority of Esplandian wealth.
The state supports entrepreneurialism and innovation with grants and beneficial policies, but limits number of startup businesses of similar types in a region. This is to prevent over saturation while still promoting competition. Each business or corporation is able to set their own prices within reason, and have complete freedom of choice in employment and termination. As long as a company operates within the limitations set by the government they can handle their own affairs without intervention.
Esplandia is dominated by its own domestic companies, but foreign corporations are allowed to operate within their borders, as long as the government deems their operations are not detrimental to Esplandian businesses. Foreign corporations are also required to follow the same strict guidelines and rules set forth by the state as domestic businesses, with a few other limitations.
Foreign corporations operating inside Esplandia cannot buy or sale property or assets without government approval. Should a company cease operations inside the kingdom, the government has the right of first refusal on buying up all assets. The Esplandian government is also the only entity that any foreign corporation can sell real estate assets to. The state rationalizes that by having this much control over foreign corporations they can prevent those corporations from pushing the interests of their home nations within Esplandia.
The state also has final say over what can be imported into the country, though over the last twenty years many of these regulations have been relaxed, and only bans on certain pharmaceuticals, automobiles, and most firearms remain. Esplandia maintains a skilled labor force, a high level of innovation, and medium to low levels of corruption through a progressive policy of education. All Esplandian youths are required to attend fully funded schools, attend a two year university or trade school, and then serve a two year mandatory state service in either the military or any qualifying civil program.
Service Industries make up the largest percentage of the nation’s gross domestic product, with telecommunications and information technology following after. Esplandia is also one of Eras’s biggest exporters of raw materials like Tungsten, Iron, and Copper. Despite having a wealthy and powerful elite nobility, wealth in Esplandia is evenly distributed between the lower and middle classes, with the vast majority of Esplandians being able to live comfortably on their incomes. However the upper 5% of the population controls the majority of Esplandian wealth.