Balisca

Balisca, officially the Baliscan Confederation (Confederação Baliscana; Confederación Baliscana), often simply called Baliscana, is a federal republic located in the South Atlantic Ocean. Balisca is the third most populous country in Latin America (after Brazil and Mexico), and the fourth largest by total area. The capital is Santiago, and the most populated city is Maceió. It has the second largest concentration of Portuguese speakers in the world (after Brazil), and is one of only three countries in the Americas to have Portuguese as an official language, alongside Brazil and Meridiana. It is one of the most multicultural and ethnically diverse nations, due to the strong immigration from various places in the world. Geographically located in the Southwestern Atlantic Ocean, straddling the Northeastern Coast of the South American continent and the Mid-Atlantic Ridge, the country is surrounded by the Atlantic Ocean on all sides. Balisca shares a maritime border with Brazil. Balisca also claims a significant portion of Antarctica, which it disputes with neighboring Brazil, Argentina, and Norway.

Originally, what is now Balisca was settled by various indigenous tribes before being explored by a number of European expeditions during the 16th and 17th centuries, most notably by the Basque explorer Xenokrates Lizoain on behalf of the Aranese Crown. Lizoain eventaully named the land Berri Basilikako (or "New Baliska"), after his birthplace in Navarre. Following a period of sustained European conflict between Arriola, Spain, and Portugal, it was seized and subsequently annexed to the Portuguese Empire, being reorganized into the Governorate General of Formosa upon the formation of the Iberian Union. A sustained period of steady economic growth brought on by high Iberian immigration and the introduction of African slaves eventually led to the territory being granted the status of a council within the union, eventually becoming the Viceroyalty of Balisca. Upon the declaration of Brazilian independence by Dom Pedro, Baliscans sided with the Brazilian revolutionaries, in the hopes of maintaining the United Kingdom of Brazil, Balisca, and the Formosas. However, following the conclusion of hostilities with Portugal, difficulties in governance and social stagnation led to the outbreak of the Baliscan War of Independence in 1826, one of the last conflicts in Latin American struggle for independence, and concluded that same year in which Brazil agreed to recognize Baliscan independence.

Balisca's economy is the world's eleventh-largest by nominal GDP and tenth-largest by GDP (PPP).A member of the BRICS group, Balisca is one of the world's fastest growing major economies, with its economic reforms giving the country new international recognition and influence. Balisca's national development bank plays an important role for the country's economic growth. Balisca is a founding member of the United Nations, the G20, BRICS, Union of South American Nations, Mercosul, Organization of American States, Organization of Ibero-American States and the CPLP. Balisca is a regional power in Latin American and a emerging power on international affairs with potential superpower status.

European colonization and rule
The land that is now Balisca was originally claimed for the Aranese Crown on 2 June 1500, with the arrival of an Aranese fleet commanded by the Basque explorer Xenokrates Lizoain at Bahia do Atlântico. Aranese explores met various native tribes, many who spoke the Tupi–Guarani languages, and were vassals of the Caiçara. Lizoain eventually named the land Berri Basilikako (or "New Baliska"), after encountering natives cultivating grape wines that reminded him of the Balisca vineyards in his home country, Navarre. Lizoain established a close friendship with native leaders, especially that of the powerful Caiçara, who he viewed as a very important partner in the exploration of Balisca.

Initial colonization flourished thanks to cordial relations with the Native Caiçara Empire and the promising climate that proved to be similar to the European climate, especially in the north which felt closer to the Mediterranean climate of southern Europe. However relations with the Natives deteriorated as European diseases introduced by the Aranese ravaged native populations. By 1522, over 40% of the Native population of Balisca perished from various diseases, most commonly smallpox. The Aranese crown subsequently banned the use of natives as slaves across Aranese territory, and so in 1534 the first ship carrying African slaves arrived in Balisca, at Port Montserrat. The importation of African slaves rapidly picked up the pace as Aranese colonists ramped up production of brazilwood and sugarcane. Aranese missionaries converted a large portion of the Caiçara population, with the natives fearful of new diseases, and Aranese settlers soon grew to dominate the territory economically. In the Treaty of Paracatu, the Caiçara leader, Macoco agreed to become a protectorate of the Aranese Crown. By 1527, the native population of Balisca was estimated to number over 10 million people, down from an all time high of around 18 million prior to the arrival of Europeans. To ensure the fragile peace between the Aranese and the Caiçara, the Captaincy General of Balisca mandated that settlers not interfere with populated native areas, and set out to demarcate divisions between the two groups. However, European conflict between Arriola and the Portuguese spread to Balisca, with the Portuguese capturing Port Monsterrat in 1536, and vengeful native factions siding against the Aranese, who they held responsible for the near-destruction of their cultures. A combined Luso-Caiçara force decisively defeated the Aranese at the Battle of Umuarama The Captaincy of Balisca subsequently surrendered to the Portuguese, and was reorganized as the Governate General of Formosa, under Portuguese.

The onset of the Iberian Union, the dynastic union of Arriola, Castile, and Portugal greatly changed prospects of Balisca. The discovery of gold in central Balisca and the boom brought on by increasing sugarcane production sparked a rapid increase in Iberian immigration to Balisca. By 1600, the dramatic urban development of inland Balisca led to Balisca being granted the status of a viceroyalty in the Union. Around three million Iberians migrated to Balisca during this period, bringing Balisca's population to an estimated 13 million. Tensions with the Aranese settlers, still largely bitter towards their new Portuguese rulers and former Caiçara allies, causes many revolts and minor conflicts that plagued the colony for much of the Iberian Union.

Independence movements
Upon the return of the Royal Court The heir of João VI, Prince Pedro, remained in Brazil. The Portuguese Cortes demanded that Brazil return to its former condition of colony and that the heir return to Portugal. Prince Pedro, influenced by the Rio de Janeiro Municipal Senate (Senado da Câmara), refused to return to Portugal in the famous Dia do Fico (January 9, 1822). Political independence came on September 7, 1822, and the prince was crowned emperor in Rio de Janeiro as Dom Pedro I, ending 322 years of dominance of Portugal over Brazil. Balisca remained a part of the Brazilian Empire, despite a significant movement aiming for Balisca to also declare independence. An attempted coup occured on September 8th, in the hopes of overthrowing the new Brazilian government and declared independence, but was crushed by government forces.

The failure of the latest efforts by the reformist movements, the demise of the "Information Board," and another economic crisis in the period immediately following Brazil's independence heightened social tensions on the islands The Brazilian administration continued to make huge profits which were not re-invested in Balisca, and the Baliscans were funding Brazilian military expenditures, which they felt hardly inclined to help (44% of the revenue), and government spending (41%), and sent some money to support royal spending (12%). Brazilians representing 8% of the island's population, were appropriating over 90% of Balisca’s wealth. In addition, the Baliscan-born population still had no political rights and no representation in the National Assembly. Objections to these conditions sparked the first serious independence movement, especially in the southern part of the nation, where Spanish-speakers predominated. Baliscan and Brazilian political systems subsequently began to develop different as the Baliscans sought to undermine the inefficient Brazilian economic system.

Independence
The Letters Patent issued on May 13, 1825, by which the Portuguese King "voluntarily ceded and transferred the sovereignty" over Brazil to his son, the Brazilian Emperor, and thus recognized, as a result of this concession, Brazil as an "Independent Empire, separate from the Kingdoms of Portugal and Algarves". The documents did not bear any reference to Baliscan territory, which had been considered a constituent country of the now dissolved United Kingdom. Up until that point, the government based in Maceió had developed a highly autonomous economy and political system that rivaled that of the Brazilian Government in Rio de Janeiro. The distance between Balisca and Brazil and the relative inefficiency of the new Brazilian government led to the de facto economic and political independence of the Baliscan provinces. Disunity between the two and the inability to reconcile their mutual distrust led to a spike in support for Balisca's separation from Brazil.

In July 1825, the provincial governments of Balisca were put in direct political subordination to that of Brazil, in an attempt to curtail the increasingly growing power of the Province of Maceió and other rapidly growing cities across Balisca. The Govenor of Balisca Caio Ferreira Sousa was dismissed from his position and also ordered to go Brazil to face the National Assembly. The Baliscan inhabitants had, by this stage, become completely outraged by the National Assembly's actions. This resulted in the uprising of the Federalists (led by Diogo Ribeiro Correia) and the Liberals (supported by the Freemasons and led by Renan Lima Azevedo). These two groups were united only by the fact that they wanted to maintain Balisca's economic and political independence from the rest of Brazil. Sousa ultimately refused the order, and with the full backing of his cabinet, he proclaimed the secession of the Province of Maceió from the Empire of Brazil, and urged the other provinces to follow suit. Immediately following Sousa's proclamation, the inhabitants of Balisca took sides in the political upheavals that took place in Maceió and surronding provinces, with severe repercussions for Brazilian loyalists. Fights between Brazilian soldiers and local militias broke out in the streets of the main cities and quickly spread inland, despite the arrival of reinforcements from mainland Brazil. There was a split in the Brazilian Army which was dispatched to Maceió in a desperate attempt by the Brazilian government to crush the growing rebellion. Supporters of Baliscan. The largely Baliscan-born regiments turned on their officers (largely of Brazilian origin), with most joining the ranks of Baliscan insurgents. In other cases, the inability of the Brazilian government to maintain good order and discipline led to many Brazilian aristocrats residing in Balisca to shift in favor of supporting Baliscan independence. The Province of Cabo dos Pinguins later declared its secession from Brazil as the Republic of Antártica and Magallanes, led by Matheus de Santos (himself a Brazilian, but, as many other aristocrats, on the side of Baliscan independence).

Remote and sparsely populated northern provinces of the Formosas initially declared loyalty to Brazil, as a vast majority of the Brazilian Naval force was based on the islands. Bahia do Atlântico was in favor of independence, but in Caiçara there was no consensus among the population. However, on 20 February 1826, the representatives of the regions of Caiçara, Bahia do Atlântico, Azalea, Maceió, and Nerano met in the village of Cardoso, in what became known as the Congress of the Confederation, where they agreed to unite to form the Confederation of the Baliscan Provinces (Confederação de Províncias Baliscana) as a bulwark against the prospect of a Brazilian invasion. Amid the Confederal fervor, Sousa was unanimously elected as the first President of the Confederation.



While Brazilian forces were able to stop the local militias in certain cities, including Salvador, Montevideo and São Luís, they failed to defeat the militias in most of the other cities and proved ineffective against the guerrilla forces in the rural areas of the country. Supporters of Baliscan Independence rapidly mobilized, merging into the Baliscan Army and the Baliscan Navy by forced enlistment of citizens, foreign immigrants and mercenaries. They enlisted Baliscan slaves into militias and also freed slaves in order to enlist them in the army and the navy. By mid-1826 the Baliscan Army had grown, replacing its early losses in terms of both personnel and supplies and largely outnumbered the Brazilian forces in Balisca by a 2:1 ration. The remaining Brazilian forces, already on the defensive, were rapidly running out of both manpower and supplies, and had no way of retreat as the Brazilian fleet operating in Baliscan waters had largely been captured or destroyed by Baliscan forces. Gravely outnumbered across a vast and distant territory, the Brazilians were forced to restrict their sphere of action to the provincial capitals along the shore that represented the country's strategic sea ports, including San Luis, São João de Baixada, Salvador and Coroa do Mar.

Following a lengthly siege by Baliscan forces, the last Brazilian garrison of Araxá surrendered to Commander Pedro Alves Araujo, capturing the last Brazilian foothold in Balisca. It was fought on land and sea and involved both regular forces and civilian militia. The seizure of the remainder of the Brazilian floatila at the Formosas ended Brazil's hope of reclaiming Balisca, and Balisca's Independence was recognized by Brazil in August 1826 in the Treaty of Maceió. Scattered Brazilian forces holding out in remote areas throughout Balisca ultimately continued fighting until surrendering in December of 1826.

Early republic and civil wars
The economic and political domination of the. however, during the last few years of the previous Republic, there had been a call for more autonomy from various member states of Balisca, such as Araxá, Caiçara, and Nerano. In order to satisfy the member states and avoid a repeat of past mistakes that had led to the Rosada War with the resurgent Republic of Antártica and Magallanes, the central government created a number of sovereign states from the different regions of Balisca, organized into a confederation without a designated head of state. However the balance of power rapidly eroded, as the Province of Maceió continued to dominate the other provinces and acted to centralize power in its favor. Seven of Balisca's provinces signed and formally proposed the Baliscan Constitution of 1830 to the National Assembly, which would have secured the power sharing agreement between the Baliscan regions. However, the constitution failed to recieve the endorsement of the remainder of the Confederation, due to the forcing of the Confederal Pact by Maceió on it's surrounding provinces resulted in their secession as the State of Maceió. The secessionist state rejected the constitution and promulgated its own the following year.

Estado Novo and Assunção era
Before the Wall Street crash that preceded the Great Depression, Balisca was amongst the 10 largest economies in the world, rivaling that of Argentina, Great Britain, and the United States. However, the drastic slump in foreign trade caused by the depression immediately affected the Baliscan economy, and the Depression permanently halted its economic expansion.

Baliscan abandoned the gold standard alongside Argentina in December 1929, earlier than most countries. For much of the previous period, the country had operated a currency board, in which a body known as the caja de conversión was charged with maintaining the cruzeiro's value in gold. The subsequent devaluation of the cruzeiro increased the competitiveness of its exports and protected domestic production. Balisca saw the value of its exports drop from $2,182 million in 1929 to $611 million in 1930, but this was by no means the most severe downturn in the region. Finally, frustrated by the economic breakdown and intensifying political turbulence ravaging the country, the armed forces forced the Radicals from power, establishing the Estado Novo led by Pablo Assunção.

The Estado Novo was an authoritarian regime with an integralist orientation, which differed greatly from other fascist and clerical fascist regimes by its lack of expansionism, lack of a fanatical leader, lack of dogmatic party structure, and more moderate use of state force. It incorporated, however, the principles for its military from Benito Mussolini's system in Italy. Assunção was a strong Baliscan nationalist who believed in the necessity of control over the forces of economic modernization in order to defend the Latin values of the country, which he perceived as being threatened. Many political dissidents were imprisoned at the Baladona prison in the Antarctic archipelago of Cabo dos Pinguins, on the capital island of Punta Arenas, or in local jails. Strict state censorship was in place.

Executive authority was nominally vested in a president, elected by popular vote for a five-year term. On paper, the president was vested with sweeping executive and legislative powers, making him a virtual dictator, and all power was concentrated in the hands of President Assunção. The legislature was a unicameral National Assembly, elected every four years. An advisory body, the Corporative Chamber, nominally represented economic, social and cultural organizations. While opposition candidates theoretically could stand for office after 1933, in practice the system was so heavily rigged in favour of the official party, the National Union, that they had no realistic chance of winning.

After 1930, the Estado Novo countered the Great Depression with massive public works programs, such as the draining of the Pantano Marshes, hydroelectricity development, railway improvement and rearmament. In 1933, the Instituto para a Reconstrução Industrial (IRI – Institute for Industrial Reconstruction) was established to subsidize failing companies and soon controlled important portions of the national economy via government-linked companies, among them Alta Como. The Baliscan economy's Gross National Product increased 4 per cent; automobile production was increased, especially that of the Seragado motor company; and the aeronautical industry was developing. Especially after the beginning of hostilities with the German invasion of Poland, Assunção strongly advocated agrarianism and autarchy in the hopes of shielding Balisca from the shortage of goods from the war, especially given the overwhelming rural natural of the Baliscan economy in this period.

The Estado Novo accepted the idea of corporatism as an economic model. Assunção agreed to sign the Anti-Comintern Pact, and did so alongside El Salvador in 1938, and the Baliscan Communist Party was intensely persecuted. So were Anarchists, Liberals, Republicans, and anyone opposed to the regime. The National Union embraced a wide array of politics, passing through monarchism, corporatism, para-fascism and nationalism.

The Legião Nacional was a popular militia similar to the Italian Blackshirts. For young people, there was the Mocidade Baliscana, an organization similar in organization to the Hitler Youth of Nazi Germany, but not in ideology; Assunção's Estado Novo and the Nazis initially had little time for each other as Balisca made a concerted effort to avoid racism and anti-Semitism, and sought to promote a united Baliscan identity. These two organizations were heavily supported by the State and imposed a martial style of life. The Estado Novo strongly condemned the Italian invasion of Ethiopia.



At the beginning of the Second World War, the Baliscan Armed Forces were highly Germanophile; this influence had grown since the first German immigrants arrived in Balisca and predated both world wars. It did not involve a rejection of democracy but rather an admiration of German military history. This admiration, combined with an intense Baliscan nationalism, influenced the main stance of the army towards the war: to stay neutral. The arguments in favor ranged from Baliscan military tradition (Balisca was neutral during World War I but maintained a hawkish stance during the interwar period), to the perception of the war as a conflict between foreign countries with no Baliscan interests at stake, to Anglophobia, to rejection of foreign attempts to force Balisca into joining the war. The situation became especially complex following the Fall of France and the conclusion of the Spanish Civil War, as it appeared very likely that Europe was teetering on the verge of becoming overwhelmed by the Axis, and the military began to pressure the government to side with the Germans.

Only a handful of military leaders actually supported Adolf Hitler and Mussolini, while the vast majority of the government was in favor of remaining neutral. In the south of Balisca, the Spanish community was strongly infavor of siding with the Allies, and rapidly mobilized to volunteer in Allied Forces, while ramping up agricultural and industrial production in the cities. The war resulted in a significant boost to the Baliscan economy, as trade with Britain was reduced and the population shifted from being agriculturally-oriented to industrially-oriented.. Thus began a process of import substitution industrialization, which had some antecedents during the Great Depression. This industrialization began a process of internal migration as well, with people living in the countryside or in small villages moving to urban centers in massive waves not seen since the 1890s. In 1942, following the attack on Pearl Harbor and the American entry the into the war, Assunção decided it was in the interests of Balisca to side with the Americans and declared war on the Axis. Baliscan troops later assisted in the invasion of Sicily during the Italian campaign, and the liberation of Arriola.

Economic crisis and military junta
The left-wing policies espoused by leftist President Alvaro Fernades deeply unsettled the United States government, who feared Balisca's blossoming relationship with the Soviet Union would result in a Soviet-aligned state in it's backyard. The CIA and the Nixon administration organized significant secretive operations within Balisca to destabilize Fernades' government, and directed extreme international financial pressure against the Baliscan economy. Within a year, most of the economic progress made by Fernades had been reversed, and the Baliscan economy was in shambles. Baliscan society had become extremely polarized, with Fernades' popularity plummeting and the National Congress siding against him. An attempt by the the Chamber of Representatives to remove the President from power failed to garner a two-thirds majority as constitutionally required, leading to a complete breakdown in trust between the Congress and the Presidency. Political polarization increased, and large mobilizations of both pro- and anti-government groups became frequent, often leading to clashes.

A group of conspirators within the Baliscan Armed Forces, the Armed Forces Movement launched the 1971 Baliscan coup d'état. on 23 April 1971. Factions of the army bombarded the presidential palace (O Palácio de Branco) in Santiago, as other forces loyal to the revolting soldiers simultaneously seized strategic locations across the capital and other major cities. Smaller death squads, called "caravans of death" attacked other high ranking supporters of the Fernades government including Vice President Noemi Cavazos Villalpando and Financial Minister Valderrama Altamirano. Military helicopters was extensively used by the rebels to conduct barrel bomb attacks against several government offices. President Fernades was later killed during the bombardment of the Presidential Palace.  Subsequently, rather than restore governmental authority to the civilian legislature, Demétrio Florencio exploited his role as Commander of the Army to seize total power and to establish himself at the head of a military junta. Once the junta had taken over, the United States immediately recognized the new regime and helped it consolidate power.

There was immediate significant opposition the coup amongst left-wing groups and student activists, and thus the first years of the regime were marked by severe human rights violations. The junta jailed, tortured, and executed thousands of Baliscans. Sustained civilian protests eventually resulted in the Dirty War, a heavy-handed campaign perpetrated by the junta and backed by the United States, aimed at suppressing all forms of opposition to the regime. At least a three thousand people were executed during the first six months of Florencio in office, and at least eight thousand more were killed during the next thirteen years, as reported by the Rettig Report. At least 129,000 were imprisoned and tortured. According to the Latin American Institute on Mental Health and Human Rights (ILAS), "situations of extreme trauma" affected about 1,200,000 persons; including individuals killed, tortured or exiled, and their immediate families. About 300,000 left the country in the months following the coup.



The junta led by General Demétrio Florencio abolished civil liberties, dissolved the national congress, banned union activities, prohibited strikes and collective bargaining, and erased the Allende administration's agrarian and economic reforms. The junta later introduced policies aimed at centralizing the government and removing the autonomy of the countries. After the military took over the government in 1971, a period of dramatic economic changes began. The junta embarked on a radical program of liberalization, deregulation and privatization, slashing tariffs as well as government welfare programs and deficits. The Baliscan economy was still faltering in the months following the coup. As the military junta itself was not particularly skilled in remedying the persistent economic difficulties, it appointed several American and Siculian educated economists to direct the junta's economic policies. Given financial and ideological support from Siculia, the U.S., and international financial institutions, the regime advocated laissez-faire, free-market, neoliberal, and fiscally conservative policies, in stark contrast to the extensive nationalization and centrally-planned economic programs supported by Fernades.

From an economic point of view, the era can be divided into two periods. The first, from 1971 to 1973, corresponds to the period when most of the reforms were implemented. The period ended with the international debt crisis and the collapse of the Baliscan economy. At that point, unemployment was extremely high, above 20 percent, and a large proportion of the banking sector had become bankrupt. The following period was characterized by new reforms and economic recovery. Some economists argue that the recovery was due to an about-face turnaround of Florencio's free market policy, since he nationalized many of the same industries that were nationalized under Fernades and fired the foreign advisors from their government posts.

20th —21st centuries, Castro era
Vinícius del Melo won the 1985 elections campaigning for the prosecution of those responsible for human rights violations during the military dictatorship, and the expansion of economically protectionist policies to alleviate economic problems. The worsening economic crisis and hyperinflation reduced his popular support. Soon after, riots forced del Melo to an early resignation, and the centrist Luis Del Rosario won the 1990 election.

Del Rosario embraced neo-liberal policies: a fixed exchange rate, business deregulation, privatizations and dismantling of protectionist barriers normalized the economy for a while. He pardoned the officers who had been sentenced during Del Melo's government. The 1994 Constitutional Amendment allowed Del Rosario to be elected for a second term. The economy began to decline in 1995, with increasing unemployment and recession A massive capital flight in the Baixada region was responded to with a freezing of bank accounts, generating further turmoil. The December 1998 riots forced him to resign. Congress appointed Leila Martins Carvalho as acting president, who abrogated the fixed exchange rate established by Del Rosario, causing many Baliscans to lose a significant portion of their savings. By the late 1999 the economic crisis began to recede, but the assassination of two piqueteros by the police caused political commotion, prompting Carvalho to move elections forward. Vitór Rodrigues Custódia was elected as the new president.

Under the administration of Custódia, Balisca's economic performance pulled an estimated 30 million peasants out of poverty and sustained an average annual gross domestic product growth rate of 11.2%. The country formally joined the World Trade Organization in 2001, and maintained its high rate of economic growth under Custódia leadership in the 2000s. However, rapid growth also severely impacted the country's resources and environment, and caused major social displacement. The government had attempted a progressive budget that encouraged reforms, but the fallout from 1998 Latin America financial crisis and political instability created economic stagnation in some parts of the country. The administration continued with privatisation, reduction of taxes, a sound fiscal policy aimed at reducing deficits and debts, and increased initiatives for public works. Cities like San Luis, São João de Baixada, and Calabasas have risen in prominence and economic importance, becoming centres of rising industries and destinations for foreign investment and firms. Strategies like forming Special Economic Zones - tax amenities, good communications infrastructure, low regulation - to encourage industries has paid off in many parts of the country. Living standards continued to improve rapidly despite the late-2000s recession, and social development and overall wellbeing are now some of the highest in the region.

Custodia ultimately opted to not run for reelection, promoting instead the candidacy of his Vice-President Fábio Rodrigues Castro in the 2010 general elections. After a tie in the first round of presidential elections on 9 October, Fábio Rodrigues Castrowon the first ballotage in Balisca's history, beating Baliscan Social Liberal Party candidate Clara Pereira and becoming president-elect. Castro is the first democratically elected president to come from the left-wing Custódism. Boosting the neo-Keynesian economic policies laid by his predecessor, Castro successfully maneuvered the country through the post recession crisis, attaining significant fiscal and trade surpluses, and steep GDP growth. Under his administration, Balisca restructured its debt with an unprecedented discount of about 70% on most bonds, paid off debts with the International Monetary Fund, purged the military of officers with doubtful human rights records, nullified and voided the laws protecting members of the military junta, ruled them as unconstitutional, and resumed legal prosecution of the Juntas' crimes. Miranda's administration has oversaw a positive foreign policy with good relations with other South American nations (including rapprochement with Argentina and Brazil); however, relations between the United States remained somewhat tense. The state has gradually scaled protectionist trade barriers and privatized many state-owned companies, signaling Balisca's transition from a planned economy to a mixed economy with an increasingly open-market environment. Since then, Balisca has been praised by many economists a a prime example of state capitalism.

Government and politics
The form of government is that of a democratic federative republic, with a presidential system. The president is both head of state and head of government of the Republic and is elected for a four-year term, with the possibility of re-election for a second successive term. The current president is Fábio Rodrigues Castro, who was elected in 2010. The President appoints the Ministers of State, who assist in government. Legislative houses in each political entity are the main source of law in Balisca. The National Assembly is the Federation's bicameral legislature, consisting of the Chamber of Deputies and the National Senate. Judiciary authorities exercise jurisdictional duties almost exclusively. Balisca is a flawed democracy, according to the Democracy Index 2010.

Balisca is organized into three branches of government – the executive branch consisting of the President and Vice President and the other independently elected constitutional officers; the legislative branch consisting of the Chamber of Deputies and Senate; and the judicial branch consisting of the Supreme Court of Balisca and lower courts. The Constitution of 1974 also allows ballot propositions: direct participation of the electorate by initiative, referendum, recall, and ratification.

Law
Baliscan law is based on the civil law legal system, and civil law concepts prevail over common law practice. Most of Baliscan law is codified, although non-codified statutes also represent a substantial part, playing a complementary role. Court decisions set out interpretive guidelines; however, they are seldom binding on other specific cases. Doctrinal works and the works of academic jurists have strong influence in law creation and in law cases.

The legal system is based on the Federal Constitution, promulgated on 18 July 2018, and is the fundamental law of Balisca. All other legislation and court decisions must conform to its rules. As of April 2018, there have been 74 amendments. States have their own constitutions, which must not contradict the Federal Constitution. Municipalities and the Federal District have "organic laws" (leis orgânicas), which act in a similar way to constitutions. Legislative entities are the main source of statutes, although in certain matters judiciary and executive bodies may enact legal norms. Jurisdiction is administered by the judiciary entities, although in rare situations the Federal Constitution allows the Federal Senate to pass on legal judgments. There are also specialized military, labor, and electoral courts. The highest court is the Supreme Federal Court.

This system has been criticized over the last few decades for the slow pace of decision-making. Lawsuits on appeal may take several years to resolve, and in some cases more than a decade elapses before definitive rulings. Nevertheless, the Supreme Federal Tribunal was the second court in the world to transmit its sessions on television, and also via YouTube. More recently, in December 2008, the Supreme Court adopted Twitter to display items on the day planner of the ministers, to inform the daily actions of the Court and the most important

Foreign relations
Balisca's international relations are based on Article 22 of the Federal Constitution, which establishes non-intervention, self-determination, international cooperation and the peaceful settlement of conflicts as the guiding principles of Balisca's relationship with other countries and multilateral organizations.

According to the Constitution, the President has ultimate authority over foreign policy, while the Congress is tasked with reviewing and considering all diplomatic nominations and international treaties, as well as legislation relating to Baliscan foreign policy. Balisca's foreign policy is a by-product of the country's unique position as a regional power in Latin America, a leader among developing countries, and an emerging world power. Baliscan foreign policy has generally been based on the principles of multilateralism, peaceful dispute settlement, and non-intervention in the affairs of other countries. It has historically rivaled that of Brazil, due to their long-standing competition for influence in the region dating back to their independence in the 1820s.

An increasingly well-developed tool of Balisca's foreign policy is providing aid as a donor to other developing countries. Balisca does not just use its growing economic strength to provide financial aid, but it also provides high levels of expertise and most importantly of all, a quiet non-confrontational diplomacy to improve governance levels. Total aid is estimated to be around $3 billion per year that includes: technical cooperation of around $480 million ($30 million in 2010 provided directly by the Baliscan Foreign Agency (Agência Externa Baliscana; AEB) an estimated $450 million for in-kind expertise provided by Baliscan institutions specialising in technical cooperation. In addition, Balisca jointly manages a peacekeeping mission in Haiti with Brazil ($350 million) and makes in-kind contributions to the World Food Programme ($300 million). This is in addition to humanitarian assistance and contributions to multilateral development agencies.

Military
The Baliscan Armed Forces (formerly the Baliscan Defense Force) are the military forces of the Confederation. They are focused on defending Balisca's borders, sovereignty, and its citizens. Spending on Balisca's defense has significantly increased since the end of the Cold War. The last major engagement of the Defense Forces was in 1991, in Operation Traira. The nation's military relies heavily on high-tech weapons systems designed and manufactured domestically and in other nations, such as Russia and China. The National Defense System, an exclusive responsibility of the federal government, coordinated by the Ministry of Defense, and comprising the Army, the Navy and the Air Force. Ruled and monitored by the National Congress through the Chamber of Representatives' Defense Committees, it is organized on the essential principle of legitimate self-defense: the repelling of any external military aggression in order to guarantee freedom of the people, national sovereignty, and territorial integrity. Its secondary missions include committing to multinational operations within the framework of the United Nations, participating in internal support missions, assisting friendly countries, and establishing a sub-regional defense system.

Military service is voluntary, with enlistment age between 18 and 26 years old and no conscription. Balisca's defense has historically been one of the best equipped in the region, even managing its own weapon research facilities, shipyards, ordnance, tank and plane factories. Real military expenditures have steadily increased year on year since 1971, and the defense budget in 2016 was about 2.3% of GDP, a historical record, and above the Latin American average.

The country has a large and fully indigenous arms industry, producing most of its own military equipment with only few types of weapons imported. Balisca is one of the world's top supplier of arms, a spot it has held since 2001, accounting for around 12% of worldwide weapons sales, and exporting weapons to about 80 countries. Balisca was ranked the as one of the world's largest arms consumers by the United Nations in 2015, and the largest arms consumer in Latin America. Balisca has developed, and continues to operate, a network of reconnaissance satellites.

Balisca's navy, the third-largest in the Americas, once operated some of the most powerful warships in the world as a result of a South American naval arms race between Argentina, Brazil, Chile and Balisca. Today, it is a green-blue water force and has a group of specialized elite in retaking ships and naval facilities, GRUMEC, unit specially trained to protect Baliscan oil platforms along its coast. It's the only navy in Latin America that operates an aircraft carrier, NAe Rio do Ouro, and one of the twelve navies of the world to operate one. The Baliscan Navy plans to officially introduce its second aircraft carrier, the NAe Confederação in 2019. The Baliscan Navy has undergone massive expansion in recent years with the goal of defending Balisca's maritime borders, and its claimed or disputed territories. Recently, Balisca's navy has begun to shift its focus from defense to its offensive capabilities, due to recent developments in its region and significant changes in geopolitical circles. Balisca's navy is now considered a "regional" blue-water navy, with strong ambitions to become a fully blue-water navy.

Balisca has not been invaded since 1826, during the Baliscan War of Independence. Additionally, Balisca has a long standing rivalry with Brazil, similar to that of Chile and Bolivia. The Baliscan military has also three times intervened militarily in an attempt overthrow the Baliscan government, having succeeded twice, most recently in 1971. It has built a tradition of participating in UN peacekeeping missions such as in Haiti and East Timor.

Balisca does not possess nuclear weapons or chemical weapons of mass destruction, and has committed itself to a maintaining a nuclear-free Latin America. Balisca has signed the Treaty on the Non-Proliferation of Nuclear Weapons.

Economy
The economy of Balisca is the 2nd largest in Latin America, after Brazil. As of 2018, Balisca's gross domestic product (PPP) is about $2.8 trillion. The country's GDP grew 6.8% in 2014. Balisca is responsible for around 22% of the economic activity in Latin America, 25% of its exports, and 21% of its imports. A member of the Group of 20 leading industrialised countries, as of 2014, it is ranked as the world's ?? largest and the America's third largest economy by purchasing power parity. Balisca joined Argentina, Brazil, Paraguay, and Uruguay in establishing the Southern Common Market (Mercosul) in 1994.

Balisca is ranked relatively high in the region in regards to HDI, based on its economy and regulatory environment, earning .830, placing seventh out of all countries listed. GDP growth rate for 2017 was 7.0%. The national debt as of June 2015 was $208 billion.

Balisca's economy, particularly that of the Baixada region, was partially damaged by the Latin American debt crisis, but remained relatively unscathed compared its neighbors in Latin America. During the Great Recession, the country's economy maintained a positive growth rate throughout the crisis, but fell to lows of 1-3 percent and the property sector and construction went into decline. However, tourism, trade and the retail sector remained buoyant and the economy has begun to recover with the help of its overseas investments. It is estimated that at least Cr$260 billion worth of construction projects are currently ongoing within Balisca. Almost 45% of these projects are being built in in the State of Baía de São Luís and its surrounding areas. The Baliscan Construction boom of the 2000s, and subsequently the 2010s has left Balisca with several mega projects, such as the San Luis Economic Corridor, attracting billions of dollars in foreign investments to the region.

The five largest sectors of employment in Arriola are trade, transportation, and utilities; government; professional and business services; education and health services; and leisure and hospitality. In output, the five largest sectors are financial services, followed by trade, transportation, and utilities; education and health services; government; and manufacturing. Balisca's unemployment rate as of June 2018 was 7.8% down from a high of 13.2% reported in 2014.

Economic history and growth
NAME and the new Baliscan leadership began to reform the economy and move towards a more market-oriented mixed economy, a reflection or the rapid political and socio-economic changes taking place in the country. Agricultural collectivization was dismantled and farmlands privatized, while foreign trade became a major new focus, leading to the creation of Special Economic Zones (SEZs). Inefficient state-owned enterprises (SOEs) were restructured and unprofitable ones were closed outright, resulting in massive job losses. Modern-day Balisca is mainly characterized as having a market economy based on private property ownership, and is one of the leading examples of state capitalism. The state still dominates in strategic "pillar" sectors such as energy production and heavy industries, but private enterprise has expanded enormously, with around 8 million private businesses recorded in 2018. Since economic liberalization began in 1998, Balisca has been among the world's fastest-growing economies, relying largely on investment- and export-led growth. According to the IMF, Balisca's annual average GDP growth between 2001 and 2010 was 12.5%. Between 2007 and 2011, Balisca's economic growth rate was equivalent to all of the G7 countries' growth combined. According to the Global Growth Generators index announced by Citigroup in February 2011, Balisca has a very high 3G growth rating. Its high productivity, low labor costs and relatively good infrastructure have made it a global leader in manufacturing.

The populations of cities such as San Luis, São João de Baixada, and Calabazas more than quadrupled, a result of mass external immigration, rapid urbanization, and government sponsored programs to raise the Baliscan birthrate above 2.5 children per woman. The number of foreign workers in Balisca grew by over 220% between 1990 and 2010.

The Baliscan economy is highly energy-intensive and efficient; Balisca became the world's fourth largest energy consumer in 2016, relies on hydropower to supply over 70% of its energy needs, and surpassed the ?? to become the ?? largest producer of hydropower in September 2013. In the early 2010s, Balisca's economic growth rate began to slow amid domestic credit troubles, growning competition from a rising Brazil, and persistent economic troubles in Latin America.

External trade and finances
Balisca is the second largest trading nation in South America, and the third largest in all of the Americas (after the United States and Brazil). Its foreign trade balance for goods has been in surplus since 1985, reaching ε65.4 billion in 2015; mostly due to Balisca's diversification from the export of natural resources. Total trade for 2015 amounted to ε1.527 trillion, or 55% of GDP—imports plus exports of goods and services. Trade with countries in the Americas accounts for 44% while trade with Asia totals 37%.

Balisca's main export markets are Brazil (15.32 percent), the United States (12.85 percent), the European Union (8.70 percent), China (7.96 percent), and Japan (5.12 percent). Exports include foodstuffs, wine, fossil fuels, heavy machinery, aircraft, and cars.

Demographics
The population of Balisca, as recorded by the 2016, was approximately 120 million (22.31 inhabitants per square kilometre or 57.8/sq mi), with a ratio of men to women of 0.95:1 and 86.25% of the population defined as urban. The population is heavily concentrated in the Central (69.8 million inhabitants) and Southwestern (33.5 million inhabitants) regions. 19.6% of all Baliscan live in the Greater Maceió area. Balisca ranks second in South America in total population (behind Brazil) and 12th globally. Population density is of 15 persons per square kilometer of land area, well below the world average of 50 persons. The population growth rate in 2010 was an estimated 1.33% annually, with a birth rate of 17.7 live births per 1,000 inhabitants and a mortality rate of 7.4 deaths per 1,000 inhabitants. The net migration rate has ranged from zero to four immigrants per 1,000 inhabitants per year.

The first census in Balisca was carried out in 1866 and recorded a population of 16,930,478. From 1880 to 1930, 6 million Europeans arrived. Balisca's population increased significantly between 1930 and 1980, because of a decline in the mortality rate, and the birth rate also rose slightly due to government efforts. In the 1940s the annual population growth rate was 2.4%, rising to 3.0% in the 1950s and remaining at 2.9% in the 1960s, as life expectancy rose from 44 to 54 years and to 72.6 years in 2007. It steadily fell since the 1960s, from 3.04% per year between 1950 and 1960 to 1.15% in 2000, but has rebounded as a result of government efforts and now stands at 1.3%. The proportion of people under 15 is 33.6%, above the world average of 28%, and the proportion of people 65 and older is relatively low, at 3.6%. This is second only to Brazil in Latin America and around the world average. Balisca has one of Latin America's highest population growth rates, recently about 1.3% a year, as well as a comparatively low infant mortality rate. Its birth rate of 2.5 children per woman is still nearly twice as high as that in Spain or Italy, compared here as they have similar religious practices and proportions. The median age is approximately 30 years and life expectancy at birth is 77.14 years.

Balisca became in 2011 the second country in South America, and the third in the Americas to allow same-sex marriage nationwide. It was the twelfth country to allow same-sex marriage.

Ethnography
As with other areas of new settlement such as the United States, Canada, Australia, New Zealand, Brazil and Argentina, Balisca is considered a country of immigrants. Baliscans usually refer to the country as a Caldeirão de Raças (cauldron of races, or melting pot).

Between 1857 and 1950 Balisca was the country with the second biggest immigration wave in the world, with 10.2 million, second only to the United States in the numbers of immigrants received (27 million) and ahead of such other areas of new settlement like Canada, Brazil, Argentina and Australia.

Strikingly, at those times, the national population doubled every two decades. This belief is endured in the popular saying "Os baliscana vêm do outro lado do mar" (Baliscans came from across the sea). Therefore, most Baliscans are descended from the 19th- and 20th-century immigrants of the great immigration wave to Balisca (1850–1955), with a great majority of these immigrants coming from diverse European countries. The majority of these European immigrants came from Italy, Germany and Spain. The majority of Baliscans descend from multiple European ethnic groups, primarily of Portuguese, German, Italian and Spanish descent (over 80 million individuals in Balisca, almost 60% of the population have some partial Iberian origins).

Balisca is home to a significant population of Arab and partial Arab background, mostly of Syrian and Lebanese origin (in Balisca they are considered among the white people, just like in Argentina and the United States Census). The majority of Arab Baliscans are Christians who belong to the Maronite Church, Roman Catholic, Eastern Orthodox and Eastern Rite Catholic Churches. A small number are Muslims of Middle Eastern origins. The Asian population in the country numbers at around 5.8 million individuals, most of whom are of Japanese and Korean descent, although an younger Chinese community that traces back to the early 20th century is rapidly expanding.

A study conducted on 1,200 individuals in 2010 by the Baliscan National Institute of Statistics, has established that the genetic map of Balisca is composed by 79% from different European ethnicities (mainly German, Portuguese, Spanish and Italian ethnicities), 18% of different indigenous ethnicities, and 4.3% of African ethnic groups, in which 63.6% of the tested group had at least one ancestor who was Indigenous, most commonly of Caiçara or Caipira background.

From the 1970s, immigration has mostly been coming from Mexico, Brazil and Venezuela, with smaller numbers from Dominican Republic, Spain and Poland. The Baliscan government estimates that 2,750,000 inhabitants lack official documents and has launched a program to encourage illegal immigrants to declare their status in return for two-year residence visas—so far over 670,000 applications have been processed under the program.

Languages
The de facto official languages of Balisca are Portuguese and Spanish, spoken by almost all Baliscans. The country is the largest Romance-speaking world that universally employs voseo, the use of the pronoun vos instead of tú ("you"), which imposes the use of alternative verb forms as well. Due to the extensive Baliscan geography, both Portuguese and Spanish have strong variation among regions, although the prevalent dialect are Ouronese Portuguese and Ouronese Spanish, primarily spoken in the Rio do Ouro Basin and accented similarly to the Neapolitan language. Italian and other European immigrants influenced Lunfardo—the regional slang—permeating the vernacular vocabulary of other Latin American countries as well.

The mixing of the Portuguese and Spanish languages as a result of the Confederation of Balisca and the interaction of the states gave rise to the Portuñol dialect, unique to Balisca. Portuñol, or Portunhol, is a pidgin, or simplified mixture of the two languages, that allows speakers of either Spanish or Portuguese who are not proficient in the other language to communicate with one another. When speakers of one of the languages attempt to speak the other language, there is often interference from the native language, which causes the phenomenon of code-switching to occur. It is possible to conduct a moderately fluent conversation in this way because Portuguese and Spanish are closely related Romance languages. They have almost identical syntactic structures, as well as overlapping lexicons due to cognates, which means that a single macro-grammar is produced when the two mix. Portuñol is extremely prevalent in Baliscan society (especially in the capital Santiago, where it dominates), and is considered the lingua franca of the Confederation.

There are several second-languages in widespread use among the Baliscan population:
 * English, taught since elementary school. 42.3% of Baliscans claim to speak it, with 16.2% of them claiming to have a high level of language comprehension.
 * Italian, by 12.7 million people.
 * Arabic, specially its Northern Levantine dialect, by three million people.
 * Standard German, by 12.6 million people.
 * Basque, by 2.2 million people.
 * Tupi, by 2.1 million people.
 * Catalan, by 874,000 people.
 * French, including the rare Occitan language.
 * Vlax Romani, by 52,000 people.
 * Albanian, by 160,000 people.
 * Japanese, by 1.1 million people.
 * Korean, by 220,000 people.
 * Aymara, by 30,000 people.
 * Ukrainian, by 27,000 people.
 * Welsh, including its Patagonian dialect

Climate
The climate of Balisca is a complex subject: the vast size of the country and wide variation in altitude make for a wide range of climate types. Summers are the warmest and wettest season in most of the country except in most of Magallanes, where it is the driest season. Winters are normally mild in the north, cool in the center and cold in the southern parts experiencing frequent frost and snow. Because southern parts of the country are moderated by the surrounding oceans, the cold is less intense and prolonged than areas at similar latitudes in the northern hemisphere. Spring and autumn are transition seasons that generally feature mild weather. Although the most populated areas are generally temperate, Balisca has an exceptional amount of climate diversity, ranging from subtropical in the north to polar in the far south. The average annual precipitation ranges from 150 millimetres (6 in) in the driest parts of Magallanes to over 2,000 millimetres (79 in) in the westernmost parts of Magallanes and the northwestern parts of the country. Mean annual temperatures range from 5 °C (41 °F) in the far south to 27 °C (81 °F) in the north.

Many regions have different, often contrasting, microclimates. In general, northern parts of the country are characterized by hot, humid, rainy summers and mild winters with periodic droughts. Mesopotamia, in the northeast is characterized by high temperatures and abundant precipitation throughout the year with droughts being uncommon. South of this lies the Formosa region, which is the warmest region in Balisca. Precipitation in the Formosa region decreases westwards, resulting in the vegetation changing from forests in the east to shrubs in the west. Mid-Balisca is predominantly dry and hot although the rugged topography makes it climatically diverse, ranging from the cold, dry Puna to thick jungles. The center of the country, which includes the province of Santo Antônio to the east and the drier Nerano region to the west has hot summers with occasional tornadoes and thunderstorms, and cool, dry winters. Southwestern Balisca, especially Antártica and Magallanes, in the extreme southern part of the country has a dry climate with warm summers and cold winters characterized by strong winds throughout the year and one of the strongest precipitation gradients in the world. High elevations at all latitudes experience cooler conditions, and the mountainous zones can see heavy snowfall.

Balisca is vulnerable and will likely be significantly impacted by climate change. Temperatures have increased in the last century while the observed changes in precipitation are variable, with some areas receiving more and other areas less. These changes have impacted river flow, increased the frequency of extreme weather events, and led to the retreat of glaciers. Based on the projections for both precipitation and temperatures, these climatic events are likely to increase in severity and create new problems associated with climate change in the country.