Valtoria, economic centre of Eothasia
Eothasi pound ruby
14 April - 13 April
Bank of Eothasia
€1 = $1.2839
ℭ5, ℭ10, ℭ20, ℭ50
€5, €10, €20, €50, €100, €500
▲ 110,336,793 (est. 2020)
GDP per capita
GDP by sector
▲ 0.946 - Very High
▼ 12.2 - Very Low
The Eothasi economy is an extremely developed and advanced, high-income economy. The services sector, undoubtedly the largest in the country, contributes approximately 72% of the value of the gross domestic product. Most important amongst these services is the financial sector, which occupies almost a quarter of the services sector in Eothasia. Despite this, the agricultural and industrial centres of the country are not ignored; the aerospace, nautical and automobile industries also carry a significant weight, as does the entire agricultural sector, whose nationalisation was finalised in the early-to-mid 20th Century.
The most important aspect about the Eothasi economy —and that which, comparatively, makes it most noticeably different from other economies across the globe— is that the conception of company in accordance with capitalist economies, which is to say, that of joint-stock or single owner companies, is not permitted. All companies must be cooperatives, set up with a number of associates that each must put a minimum quantity of money as quota in order to form a part of the company. Furthermore, these partners are also the workers, in such a way that the dividends that would otherwise be rewarded to the owners of the company’s capital are redirected towards the workers.
However, the Eothasi economy also foresees the arrival of foreign companies into the environment, which would otherwise be difficult, given that many of these foreign companies will not necessarily follow the tendencies of collectivist economic policy. As such, the Eothasi economy only allows the incorporation of these companies in the event that the salary for each of the positions of said company matches the mode salary of the equivalent position in domestic companies of the same industry; furthermore, these workers must be given additional incentives, as well as stock market shares, which must be pacted with the Ministry of Economy, Business and Industry before the companies are allowed to expand into the UESR.
The only exception to this rule of the partners necessarily being quotas is by organisations of the Eothasi State. This includes the Imperial Bureau of Collectivist Entrepreneurship, under the Ministry of Economy, which not only grants subsidies to nascent cooperative companies, but also is capable of paying ‘quotas’ in companies in exchange for forming a part of the list of partners for a minimum of five years, extendable as per negotiations with the company in question. This also extends to other organisations of the State, such as the Ministry of Defence, the Imperial Home Office or People’s Treasury. As a subordinate institution to the State, the Bank of Eothasia acts as the central bank of the Eothasi economy, and has competences over monetary policy and other measures of economic interest.
The currency of the UESR is the Imperial pound ruby, as it has been since the conception of the country in 1913. It is an extremely well-valued currency, which allows it to import foreign products at easier prices for local consumers and businesses, although it makes exporting domestically produced goods more difficult.
However, despite the relatively recent history of the Empire itself, the Eothasi economy dates much farther back. Industrialisation of the economy first took place during the 18th Century, in a time in which it could not be said that the Eothasi economy was particularly equal for all of its participants. In fact, the nature of the exploitation of the working class was far more than prevalent; it was bordering on feral, with subsistence wages reduced to the bare minimum and workers stretched to the very last minute of their capability without regards to their physical (or mental) health. This continued well into the 19th Century, which saw unprecedented growth of the Eothasi economy, although entirely centred on only a few of the agents and disregarding social benefits.
The coup d’etat that brought the Union of Eothasi Republics to power did little to change this status quo; the economy was still concentrated into a number of extremely large owners of capital which had accumulated their wealth over the decades. This was fomented, in fact, with the deregulation of economic and labour laws in the country that allowed further exploitation of the working class.
The true turning point was after the triumph of the socialist revolution in Eothasia. Massive fortunes were frozen in the country, unable to be taken abroad; nationalisation took place, with appropriate recompense for the owners of the companies, and through extensive taxing of the rich, the wealth they had accumulated was redistributed through society until a more equal footing was reached. Income equality skyrocketed, and new labour protection laws ensured that the working class would not be exploited, largely due to their very own input in the dealings of the companies themselves. This massive socialisation of the modes of production was the true triumph of the revolution, and did not end until the early 1930s, long after Priscilla Poriér had resigned as Lady Regent.
As the wealth was redistributed through the economy to the working class and equality was reached in terms of income, the Eothasi government slowly but surely began to release the industry it had nationalised, allowing them to be taken over by associations of working class people to establish cooperative companies, as had been dictated by its own internal legal framework. The largest companies —the ones considered multinationals, monopolistic in nature, and otherwise harmful to the status of income equality in the Empire— were broken down into various smaller companies, each of which was assigned an ‘area’ of the country in which they would normally operate. Furthermore, after the collectivisation of the companies took place, the parliament approved a bill that set a maximum number of partners permitted in a company and heavily regulated mergers and acquisitions.
Despite these collectivisations, several industries considered essential services for the Eothasi people were kept nationalised. These included the following industries: the healthcare industry, as private healthcare is not permitted in the Empire; the licence to construct homes and residential buildings, as state housing would be secured for all citizens and residents and it would be an exclusive competence of the State; the entire alimentary agricultural sector, which would be put to use with the exclusive purpose of feeding the Eothasi population; education, as private educational institutions would not be permitted except in extremely special circumstances approved by the Imperial government; arms manufacturing, as weapons exports are absolutely prohibited unless authorised by the Imperial government, which has never occurred since this prohibition was approved in 1927; and the utilities industry, as the State is the sole provider of water, electricity, gas and, since 2002, Internet. In addition to this, several other sectors are heavily regulated and intrinsically linked with the State, such as the retail industry or the pharmaceutical sector.
Today, the aforementioned sectors are the only ones that remain nationalised. All others have been collectivised, although they oftentimes work in close relation with the Ministry of Economy, Business and Industry as well as the Ministry of Work and Migration, as there are multiple regulatory standards that must be followed to ensure that there is no exploitation of workers in the Unified Eothasi Socialist Republic.