Solariia's economy overcame stagnation on September 28th, 2017, with a 90.28 on the Krugman-Greenspan Business Outlook Index on the advent of the nation's first major megaproject, known as the Revitalisierungentwicklungsprojekt (Revitalization Development Project (REP, RDP)). It was initiated by the Solariian government and necessitated an astounding 18% of national labor and several trillions of credits of material distributed into multiple phases and plans. The first phase of the project, called Konstruktionsprojekt für den Kapitalrestrukturierungsplan (Construction Project for the Capital Restructuring Plan), entailed the complete renovation of Astromis, the national capital, into a megacity. This plan alleviated a number of issues that arose as the capital rapidly grew and developed throughout 2016 and 2017 and included restructuring the cities districts. The cities nexus, the administrative district, was designed with a neo-classic architecture style surrounded by several standard-style districts. The second phase, known as the Intersystem Straßenplan (Intersystem Highway Plan), was the first aerospace-megastructure for Solariia and was a series of linking gates which comprise the galactic highway between Solariia and Nikgardia. The third phase, known as Gesamtbauplan für die Ringwelt und die Energieerzeugungsstruktur (Overall Blueprint for the Ring World and Energy Generation Structure), will initiate blueprint drafting for a ring-world encircling Kiridau and a dyson sphere surrounding Solarii III. A fourth phase, titled Verschiedene Planetarische Bauarbeiten (Miscellaneous Planetary Construction Work), will finish a number of miscellaneous planetary construction projects throughout Solariia that have been postponed for a variety of reasons. In order to better facilitate the megaproject, the government offers various incentives to private industries and citizens. Credit is offered to the private sector and subsidies are made available for citizens to entice home renovations. A loan of up to ☉5,000 can be accessed by young couples who intend to marry, on the condition that the wife would leave the workforce, and the amount that has to be repaid is reduced by 25% for each child born. The first phase was completed in late October, 2018, and the second phase was completed on 8th February, 2019. The remaining phases are expected to be completed by late November, 2019.
Solariia observes the five-sector macroeconomic theory which states that there are five kinds of unique economic activities grouped according to their place in the production chain, by their kind of work (product or service) or ownership. The five sectors are denoted by their numerical term and are in the order by when they occur in a nation's development cycle: primary, secondary, tertiary, quaternary, and quinary.
The primary sector in any economy includes any industry involved in the extraction and collection of natural resources; such as farming, forestry, mining and fishing. Solariia's strongest primary sector industry is its combination of agriculture and cheese exports. Cheese exports is one of the largest sources of monetary and cultural exchange in Solariia. Strictly in terms of monetary income, it is just behind Information Technology and Defense Manufacturing. On a wider scale, Solariian agriculture is commonly placed within the 90th percentile in the known universe. Timber woodchipping and mining are second and third respectively due to the abundance of timber, potash, salt, uranium, copper, iron, gold, silver, nickel, platinum, aluminium, lead, natural gas, and other common and rare-earth materials.
As Solariia has developed, the primary industry has become far smaller but more efficient through technological advancement; this was exacerbated in August, 2018. For example, the mechanization of farming as opposed to hand picking and planting makes agriculture far more efficient. Consequently, though, this means a smaller percentage of the workforce is involved in primary activities. Therefore, to ensure the financial protection of the primary sector, Solariia leverages excess wealth as a means of propping up primary industries through subsidies. The effect is extraordinarily low and competitive prices in the primary sector, especially abroad. Solariia recognizes the controversy, but maintains that these broad differences are mostly a result of efficient production methods in developed economies. The use of intelligent and autonomous machinery and better information available to industry professionals gives way to more diverse, mulit-sector approaches of economics.
The secondary sector of any economy includes light and heavy industries that produce a finished, usable product or are involved in construction. Solariia's fair mix of light and heavy industries rely mostly on domestic supply from the primary sector. Its major secondary industries include Information and Communication Technology (ICT), defense manufacturing, manufacturing and processing, aerospace engineering, biotechnology and pharmaceutics, and automobile manufacturing to a lesser degree. Some additional industries in Solariia's economy are petrochemicals, shipbuilding, textiles, and processed foods.
Many of these industries consume large quantities of energy and require factories and machinery to convert raw materials into goods and products. Among developed nations, it is an important source of well-paying jobs for the middle class to facilitate greater social mobility for successive generations on the economy and is an important source for engineering job opportunities. However, they also produce waste materials and waste heat that may cause environmental problems or cause pollution. The negative impact on the environment of large scale secondary manufacturing means the secondary sector is limited by law on all planets except the mining planet, Kiridau. This comes with another benefit, domestic transportation of goods is easier; especially since the secondary sector is a major trading force both in Solariia and Autropolis.
The tertiary sector consists of the production of services instead of end products. Services, known as "intangible goods", include: attention, advice, access, experience, and affective labor. The production of information has long been regarded as a service but is now attributed to the quaternary sector. It is the sector which faces the most obstacles as the services offered are intangible, meaning potential customers find it difficult to understand what they will receive and what value it will hold for them. Furthermore, the human force behind this sector is impacted by the use of technology which has simplified the techniques used by this sector, reducing costs for businesses. As a result of these obstacles, this sector in Solariia accounts for just 8% of the economy.
The tertiary sector consists of two types of categories, businesses and nonprofits. Traditionally, this sector is the largest sometime after nations experience the industrial revolution but begins to decline rapidly at the maturation stage of the Information Age. When the tertiary sector begins to decline, the quality of its services typically rises as the remaining individuals have a particular quality skill in providing it or by technological automation. Some of the last remaining businesses within the Solariian tertiary sector are: transportation of people, such as taxi services, city bus systems and subways, traditional hospitality industries, such as hotels and resorts, and certain restaurants.
The quaternary sector is the knowledge-based section of the economy to generate tangible and intangible values. Technology, and in particular, knowledge technology, helps to incorporate part of human knowledge into machines. This knowledge can be used by decision support systems in various fields to generate economic value. Human capital, the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value, is the central focus of the quaternary sector.
Globalization, computing and networking, like IoT, are driving forces for this sector. In the knowledge economy, the specialized labor force is characterized as computer literate and well-trained in handling data, developing algorithms and simulated models, and innovating on processes and systems. In this sector, employees are typically using their head more than their hands and media improves the distribution of such knowledge resulting in a higher collective intelligence. This sector is characterized by a number of unique differences from other sectors such as: economics of abundance rather than scarcity. Virtual marketplaces and organizations. Pricing is based more on knowledge integration like A.I. among other differences. This sector accounts for almost 40% of the Solariian economy.
Quinary activities are services that focus on the creation, re-arrangement and interpretation of new and existing ideas; data interpretation and the use and evaluation of new technologies. Often referred to as ‘gold collar’ professions, they represent another subdivision of the tertiary sector representing special and highly paid skills of senior business executives, government officials, research scientists, financial and legal consultants, and others. Their importance in the structure of advanced economies far outweighs their numbers. The highest level of decision makers or policy makers perform quinary activities.
This sector is often regarded as an extension of the quaternary sector and refers to decision making and at the highest levels of society. These decisions have a big impact on society and the general economic conditions of the nation. Activities in this sector include decisions taken at government level, top management operations in large businesses and universities, as well as cultural activities and the media. The government plays a major role in orchestrating this sector. It owns about 14% of the economic output of the nation.