Economy of Corraile

The Economy of Corraile is the 19th largest in the world, and a constituent economy of the Organization for Economic Co-operation and Development as well as the AINERO Zone and the ACFTA. As with other developed nations, the Corrailite economy is dominated by the service industry, which employs about three quarters of Corrailites, although the manufacturing sector has contributed significantly to both GDP growth and labour force growth in recent years as well. The Corrailite economy has a strong emphasis on a Tri-Sectorial approach to economic growth, with major emphasis placed on all three major components of the economy: agriculture, manufacturing and services.

The Corrailite economy's focus on export-driven growth in the post-independence period, through a series of State-Supported Organisations (SSO) such as the United Cannery Company and Franklin, as well as the encouragement of Foreign Direct Investment (FDI) into the country set the motion for exponential economic growth that the economy experienced throughout the 1970s and 1980s. Today, the economy enjoys one of the highest levels of economic freedom in the world, and has been described as one of the most dynamic economies in the Western Hemisphere.

Background
The Corrailite economy, despite the disparity in levels of economic development between states, has generally consistent economic standards in terms of the unemployment rate as well as average income per citizen. Despite the effects of the 2007–2012 global financial crisis, the unemployment has remained one of the lowest in the Western Hemisphere, hovering around 3-4%, albeit at the expense of economic growth, which slowed from 2.7% in 2007 to 0.7% in 2011. This has been attributed to the fact that many major employers in Corraile are domestic corporations, as well as labour laws which ensure that a minimum percentage of employees must be local for major corporations.

International trade makes up a large portion of Corraile's economy, as Corraile is the 11th largest exporter and the 23rd largest importer in the world. The country also has a high trade-to-GDP ratio in the world at 103.6%, signifying the importance of trade to its economy. Manufactured products such as automobiles, aircraft parts and consumer electronics make up the majority of Corrailite exports, while agricultural produce such as corn, wheat and dairy products also play an instrumental role in Corrailite exports. Major trading partners include the United States and the EU, as well as the AC and other nations of the AIN.

Manufacturing activity is generally concentrated in the Federal Territory, Freedo as well as the Solando Metropolitan Area. These areas have been designated by the Corrailite government as key areas for industrial and manufacturing development, and thus have significant benefits for companies, domestic or foreign, that set up industries in these locations. The rapid industrialisation that Corraile underwent in the 1970s and 1980s ensured rapid economic growth, and earned the country the moniker "The Atlantic Tiger". Today, manufacturing still plays a key role in the Corrailite economy, employing a significant percentage of the population (22.6%) and contributing significantly towards GDP as well.



Due to governmental policies to reduce the reliance on primary industries, resource extraction industries such coal mining and logging have experienced a drastic decline since independence in the 1970s. Once a key pillar of economic growth, the coal mining industry in Corraile is now virtually nonexistent, due to the collapse of National Mining in the 1980s, while the logging industry has severely diminished in size due to strict governmental regulations governing the sustainable logging of Corrailite industries. Today, the logging industry constitutes 0.12% of GDP, highlighting its low level of importance n the Corrailite economy.

Key Industries
Due to the economic policies of successive Corrailite governments since independence, the economy is generally well-developed in all three-major sectors. However, in recent years, governmental policies to promote the growth of the tertiary sector, primarily financing and banking, has led to a slight decline in both manufacturing and agriculture's contribution towards the national economy. Nonetheless, both sectors continue to make up a significant proportion of the country's GDP, contributing towards 40.9% of GDP in 2011.

Services
Corraile is home to more than 150 multinational corporations, owing to its favourable corporate tax rates and pro-business environment. A policy of pursuing foreign investments in the tertiary sector was begun under then-Prime Minister Herald Vickers, to help further develop the economy beyond industrialisation. This included the reduction of bureaucracy and red tape in government, which simplified processes for foreign companies to invest in Corraile. In addition, corporate tax rates were cut, and taxes on capital gains were reduced as well. Such efforts to liberalise the financial and services sector of the economy bore fruit at the end of the decade, when the economy entered what was termed as a "second wind". This growth was exemplified by the "skyscraper period", when major construction projects were initiated in major Corrailite cities, most notably Centreburg, due to the much increased demand for office space. Today, measures to further develop the commercial and services sector are being applied to Stanraer Island as well, with the intention of developing the country's smallest and most economically-underdeveloped state into a primary offshore financial sectors for financial institutions and corporations. Much has been spent by the Corrailite government in an attempt to attract major foreign corporations to register their operations in Stanraer Island.



In addition, Corraile is promoting itself as a major Research & Development (R&D) centre for both foreign and local companies. Government initiatives, including major tax breaks, development of supporting infrastructure and financial benefits for companies have led to moderate success in this field. Due to it's strong emphasis on agriculture, Corraile is one of the world's leading centres for agricultural research, hosting more than 15 crop research facilities and generating over $10 billion in revenue in 2011. Furthermore, this link to biotechnology has also resulted in the development of biotech-related research industries, mainly the pharmaceutical industry. Major pharmaceutical corporations such as GlaxoSmithKline and Pfizer have committed to the production of vaccines and pharmaceuticals in Corraile, further supporting it's position as a global hub for research.

Manufacturing
Manufacturing comprises a significant proportion of the economy, helping to generate over $140 billion worth of worth of exports in 2011 alone. Manufacturing in Corraile is diverse, with more than 30 individual sectors present. These include automobiles, aircraft parts, telecommunications equipment, ships and processed foods. Ownership of the means of production are generally even between foreign ownership through Multinational Corporations (MNCs) and local companies, some of which are still owned by the state indirectly. In general, however, the manufacturing sector is privately run and owned, and generates significant employment and income for both Corrailites and the Corrailite government.



Promotion of manufacturing and industrialisation was introduced in the 1970s under the "Pioneer Government" led by Sir Darren McGhurry, then-Prime Minister of Corraile. In a 10-year period lasting between 1970 and 1980, the Corrailite economy grew at an unprecedented rate, largely due to the effects of rapid industrialisation on the once-agrarian economy. During this period of time, the Corrailite economy grew at an average of 7.6% per annum, as the influx of Foreign Direct Investment (FDI) grew year-on-year at approximately 10.2% (avegraged figures). Further contributing to the high rate of growth was the creation and growth of government-supported Corrailite companies such as United Cannery Company, Franklin Cars and Corraile Airlines. By providing further economic output and essential infrastructure required by a industrialising country, they acted as a catalyst for further development in the 1980s.

Today, Corraile is a manufacturing hub for mainly high-value products. It is one of the main centres for aircraft maintenance and ship overhaul and shipbuilding, and companies such as Darius Aviation help to overhaul and maintain commercial aircraft operating throughout North America and even aircraft in Europe. Furthermore, Corraile hosts major shipbuilding companies, and has one of the world's largest shipyards in the Port of Centreburg, operated by STX Corraile, a subsidiary of the South Korean shipbuilding giant STX Corporation.

Agriculture
The Agricultural sector is considered one of the primary movers of the Corrailite economy, as well as the backbone of the country's economic growth. In 1970, the government initiated the Rural Revitalisation Programme, creating a series of initiatives and policies to encourage the growth of the agricultural sector. In the pre-independence period, much of Corrailite agriculture was made up on small, independent farmers, who lacked the capital and the drive necessary to undertake major reform of the agricultural sector. In tandem with the RRP, the Public Savings Bank of Corraile (PSBC) was set up for the purpose of providing these farmers with financing and credit necessary for the procurement of farming equipment such as tractors and combine harvesters. Furthermore, the government began to open up swathes of land for agricultural purposes, allowing farmers to expand the total size and therefore the total output of their farms. This, when combined with modern farming technologies and methods such as fertilisers and irrigation systems, revolutionised the countryside and resulted in massive increases in the total output of the Corrailite agricultural sector.



By 1988, when the RRP was official ended by the government, Corrailite farmers had seen a 66% increase in their total farming output, and also saw their total incomes more than double. More modern farming methods, such as aeroponics and hydroponics, have made significant inroads into the rural regions, further increasing the productive output of Corrailite agriculture in general. Today, Corraile is a leading exporter of certain agricultural products, such as wheat, corn, potatoes, milk and apples. Increasing interest and demand for crop-derived biofuels has also led to the growth of the biofuels sector in Corraile, and highly-productive plants such as rapeseed and soybean are seeing increased harvests on a yearly basis.

Both mining and logging were major contributors to the Corrailite economy, representing some 22.9% of GDP in 1970. However, both sectors have seen a rapid decline in the post-independence period, with the mining sector having been controversially shut down completely by 1986 when the last mine shuttered operations. Today logging continues only in certain designated locations, and reforestation of logged areas is mandatory procedure for logging companies operating in Corraile. The sector contributed a paltry 0.12% towards GDP in 2011, representing the massive decline in the logging industry in Corraile.

Energy
Corraile is one of the world's largest energy consumers on a per capita basis. Being connected to the North American electricity grid via undersea cables to Nova Scotia, it is a net exporter of electricity. In 2010, Corrailite power plants generated a total of 176,4 terrawatt-hours, of which 12% of the energy was exported to foriegn consumers. Much of Corraile's energy sources are fossil fuel-based, although there has been considerable growth in the amount of energy generated from renewable sources. Today, some 63% of all plants are oil-fired, 22% being natural gas-fired, 10% solar-generated and 5% wind-generated. The main source for fossil fuels is Atlantsia, although this is further supplanted by shale-oil imports from Canada.



Transport
Corraile, despite being a group of islands, has a relatively well-developed land transport system. The National Highway System, comprising of the Corraile Highway Agency and the Bureau Des Autoroutes in Corraile and Lanaya respectively. In total, there are 73 highways which cover 883 km. The majority of the highways are found in Lanaya and the Federal Territory.

Corraile also has an extensive railway network, although this is primarily limited to the Federal Territory and Lanaya as well. Much of this railway network is used almost exclusively by the fright rail system, due to the lack of regular, scheduled intercity passenger services. Instead, most passenger railway systems (with the notable exception of Lanaya) are limited to commuter rail, which is more considered to be intracity as opposed to intercity railway traffic. However, there are plans to reestablish major intercity railway services in Corraile via the adoption of high-speed railway.

Major aviation hubs in Corraile include Centreburg Gateway International Airport and Solando International Airport. Other significantly-sized airports include Freedo International Airport, Highvale Carlaken Airport and Colganston International Airport.

North American Free Trade Agreement (NAFTA)
Corraile, along with the United States, Canada and Mexico, formed the North American Free Trade Agreement on January 1, 1994, creating a quadrilateral trade bloc in North America. This has greatly liberalised trade between Corraile's largest trading partners, Canada and the United States, removing trade barriers such as taxes and tariffs, which further promoted trade between the three countries. This replaced earlier bilateral trading agreements that existed between the United States and Canada.

European Union-Corraile Free Trade Agreement (EUCFTA)
The European Union-Corraile Free Trade Agreement (EUCFTA) was set into force in June 1, 2001, after an agreement was reached between the EU and the Corrailite government. In effect, the EUCFTA superseded all previous bilateral free trade agreements between Corraile and EU countries, and removed any trade barriers between the two economies. As a result of the EUCFTA, the EU has grown to become one of the largest trading partners of Corraile.

Atlantic Commonwealth
The Atlantic Commonwealth, founded on October 25, 2010, included the integration of the national economies of its constituent states, namely Galbadia, the Atlantic Federation, Ascadylea and Llithustania. Negotiations are still underway, although certain trading barriers, such as import taxation of products from the aforementioned states, have already been lifted. An openskies agreement is also expected to be put in place in the near future.

Other agreements


Corraile maintains other trade agreements with other countries. These countries include:


 * Japan
 * South Korea
 * Andean Community
 * Brazil
 * Argentina
 * Australia
 * New Zealand
 * Cattala

Negotiations are underway for trade agreements between these countries


 * Turkey
 * China
 * India
 * CARICOM
 * Indonesia
 * Asgard