Economy of Nanzhao

The Economy of Nanzhao is one of Gaea's biggest and fastest growing economies with a GDP growth rate of 9.5% annually.

Nanzhao is classed as an Emerging Market along with Canterbury, Émsoulle Luxia and Pavlovsk.

The Government calls their economic system "Socialism with Nanzhese characteristics" but what this means is disputed.

Government Role
Since 1948 the government, under the socialist political and economic system, has been responsible for planning and managing the national economy. In the late 1950s, the foreign trade system was monopolized by the state. Nearly all the domestic enterprises were state-owned and the government had set the prices for key commodities, controlled the level and general distribution of investment funds, determined output targets for major enterprises and branches, allocated energy resources, set wage levels and employment targets, operated the wholesale and retail networks, and steered the financial policy and banking system. In the countryside from the late 1950s, the government established cropping patterns, set the level of prices, and fixed output targets for all major crops.

Since 1973 when economic reforms were instituted, the government's role in the economy has lessened to a huge degree. Industrial output by state enterprises slowly declined, although a few strategic industries, such as the aerospace industry and ore smelting have today remained predominantly state-owned. While the role of the government in managing the economy has been reduced and the role of both private enterprise and market forces increased. With its policies on such issues as agricultural procurement the government also retains a major influence on rural sector performance.

Consumer spending has been subject to a small and limited degree of direct government influence but is primarily determined by the basic market forces of income levels and commodity prices. Before the reform period, key goods were rationed when they were in short supply, but by the mid-1980s availability had increased to the point that rationing was discontinued for everything except grain, which could also be purchased in the free markets. Collectively owned units and the agricultural sector were regulated primarily by indirect instruments. Each collective unit was "responsible for its own profit and loss," and the prices of its inputs and products provided the major production incentives.

Systematic Problems

The government has in recent years struggled to contain the social strife and environmental damage related to the economy's rapid transformation; collect public receipts due from provinces, businesses, and individuals; reduce corruption and other economic crimes; sustain adequate job growth for millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; and keep afloat the large state-owned enterprises, most of which had not participated in the vigorous expansion of the economy and many of which had been losing the ability to pay full wages and pensions. From 500 to 750 million surplus rural workers were adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Another long-term threat to continued rapid economic growth has been the deterioration in the environment, notably air and water pollution and soil erosion.

Nanzhao's ongoing economic transformation has had a profound impact not only on Nanzhao but on the world. The market-oriented reforms Nanzhao has implemented over the past three decades have unleashed individual initiative and entrepreneurship.

Tax System
From the 1950s to the 1980s, the central government's revenues primaraly came from the profits of the state enterprises, which were remitted to the state. Some government revenues also came from taxes, of which the most important was the general industrial and commercial tax.

The trend, however, has been for remitted profits of the state enterprises to be replaced with taxes on those profits. Initially, this tax system was adjusted so as to allow for differences in the capitalization and pricing situations of various firms, but more-uniform tax schedules were introduced in the early 1990s. In addition, personal income and value-added taxes were implemented at that time.

Regional Economies
The economy of Nanzhao is very uneaqual with the east being by far the most productive region especially in the Guangxi - Shanxi Basin, Guangzhen National Capital Region, Yellow River Delta and Black Dragon River Delta.

By contrast the most productive Province (Excluding all Municipalities and Harbin) by per Capita is Ningbei.

Banking and Finance
Nanzhao's Banking and Finance sector is dominated by state-owned companies. 90% of banking assets are state owned. The chief instruments of financial and fiscal control are the People's Central Bank of Nanzhao (PCBN) and the Ministry of Finance, both under the authority of the State Council of Nanzhao.

The People's Central Bank of Nanzhao fulfills many of the functions of other central and commercial banks. It issues the currency, controls circulation, and plays an important role in disbursing budgetary expenditures. Additionally, it administers the accounts, payments, and receipts of government organizations and other bodies, which enables it to exert thorough supervision over their financial and general performances in consideration to the government's economic plans. The Bank of Nanzhao (BON) is responsible for international trade and overseas transactions, it has branches in over 30 countries mainly in Orientia and Uberia.

Other financial institutions that are crucial, include the Industrial Bank of Nanzhao (IBN) is reponsible for providing capital funds for certain industrial and construction enterprises, and the Nanzhao Commercial Bank (NCB) which conducts ordinary commercial transactions and acts as a savings bank for the public.

The four biggest banks are refered to as the 'Big Four' state-owned commercial banks in Nanzhao.

Stock Exchanges
Nanzhao has two Stock Exchanges, Guangzhen Stock Exchange (GZSE) And Changshu stock exchange

Agriculture
Nanzhao is Gaea's largest agricultural producer with it accounting for 6.7% of the GDP and worth an estimated $359 Billion Virtually all arable land is used for food crops. There is still a relative lack of, especially advanced, agricultural machinery. For the most part the Nanzhese peasant or farmer depends on simple, nonmechanized farming implements. Good progress has been made in increasing water conservancy, and about half the cultivated land is under irrigation.

Nanzhao grows significant amounts of Rice, Tea, Tobacco and Wheat but also many fruits and vegetables are grown too.

Industry
Nanzhao is a major industrial power on Gaea. Nanzhao's Industrial sector is 48.4% of the GDP and worth an estimated $2.6 Trillion. But due to the rapid development and some lax policies, Industry in Nanzhao is incredibly wasteful and uses around 2x more energy than more industrialised nations.

Nanzhao is Gaea's largest recycler and has a huge thriving industry recyclng over one 1/8 of all Gaea's collected recyclables, importing thousands of tonnes of products including Paper, Copper, Steel, Plastic and Tyres. Over 1/3 of Kobiyashi's recycling is shipped to Nanzhao and much of it shipped back in the form of new goods and packaging. And 100% of Harbin's recycling is sent to Nanzhao where again lot's of it is resent in the form of new packaging and products.

Mining and Energy
Nanzhao has very large reserves of many minerals both Metals and Non-Metals but becuse of the sheer amount of resources Nanzhao uses many resources have to be Imported such as Oil, Iron ore, Natural gas and Aluminuim.

In the 1990s, energy demand rocketed in response to the rapid expansion of the economy but energy production was constrained by limited capital. As in other sectors of the state-owned economy, the energy sector suffered from low utilization and inefficiencies in production, transport, conversion, consumption, and conservation. Other problems included declining real prices, rising taxes and production costs, spiraling losses, high debt burden, insufficient investment, low productivity, poor management structure, environmental pollution, and inadequate technological development. In order to keep pace with demand.

Nanzhao, due in large part to environmental concerns, has wanted to shift it's current energy mix from a heavy reliance on coal, toward greater reliance on oil, natural gas, renewable energy, and nuclear power.

Service
Nanzhao's service sector makes up 44.9% of the GDP and is worth an estimated $2.4 Trillion.

Prior to the onset of economic reforms in 1973, Nanzhao’s services sector was characterized by state-operated shops, rationing, and regulated prices. With reform came private markets and individual entrepreneurs and a commercial sector. The wholesale and retail trade has expanded quickly, with urban areas now having many shopping malls, retail shops, restaurant chains and hotels. Public administration has still remained a main component of the service sector, while tourism has become a significant factor in employment and as a source of foreign exchange. The potential for growing services in Nanzhao through franchising is huge.

Telecommunications
The Nanzhao Telecommunications industry is large with many different forms. The entire country is linked by Internet, Telephone, Television and Radio.

Nanzhao's number of Mobile phone's in use in september 2009 was 991 Million the largest on Gaea and is expected to reach 1 Billion within the next year.

Nanzhao's number of Internet users in 2009 was 492.5 Million the largest on Gaea. And the number of broadband subscribers is 91 Million the largest on Gaea.

Unlike many Communist nations Nanzhao has less control over the Internet as the government as seen it as a way to increase social stability and increase economic growth and allow foregin nationals to get to know what Nanzhao is like without visiting.

External Trade
From the 1950's to 1975 about 80% of all trade was with Communist nations with over 40% with Pavlovsk alone.

Nanzhao is one of Gaea's largest exporters and trades with nearly every nation on Gaea with particualr emphasis placed on it's neighbours where Nanzhao dominates as the largest trading partner to over 15 Orientian nations

The vast majority of Nanzhao's imports consists of industrial supplies and capital goods, notably machinery and high-technology equipment, the majority of which comes from the developed countries, primarily Kobiyashi and Uberia. Regionally, almost half of Nanzhao's imports come from East and Southeast Orientia, and about one-third of Nanzhao's exports go to the same destinations. About 75 percent of Nanzhao's exports consist of manufactured goods, most of which are textiles and electronic equipment, with agricultural products and chemicals constituting the remainder. Out of the ten busiest ports in the world, three are in Nanzhao.

The Nanzhao Investment Promotion Agency (NIPA) promotes Nanzhao's international economic and commercial interests. This is accomplished by developing business cooperation and exchanges with foreign countries.

Trading Partners
Nanzhao is the Largest trading partner of:


 * Bhaktapur
 * Cuba
 * Dumat Al-Badr
 * The Democracy of Émsoulle Luxia
 * Goina
 * Herat
 * Indonesia
 * India
 * Kobiyashi
 * Malaysia
 * Mimbasa
 * Mongolia
 * North Korea
 * Pavlovsk
 * Siam
 * South Korea
 * Tibet
 * United Kingdom
 * Uyghurstan
 * Uzbekistan

Nanzhao's largest trading partners are:


 * 1 Amagosa
 * 2 Kobiyashi
 * 3 Uberian Union
 * 4 Carpathia
 * 5 Pavlovsk