Economy of Vale

The Economy of Vale is a developed domestic-oriented highly diverse economy based on an unique socioeconomic system of aristocratic communalism. According to the 1713 Globalization Index, Vale ranks as the 165th most globalized economy in Kobol.

Government finance
Budget U/C

Valois government debt
The Valois government may borrow only from the Bank of Vale, with no interests, as proclaimed in the Constitution of Vale. After the Valois Revolution, Vale defaulted its foreign debt, stating the "current socioeconomic system doesn't able the Government of Vale to pay its obligations in any circumstances yesterday, today or tomorrow."

Agriculture
Agriculture in Vale is intensive, highly mechanised, and efficient by European standards, producing about 110% of food needs, with less than 6.8% of the labour force. Agriculture in Vale is entirely planned by the government and food prices remain very low. There is relatively little to no agriculture production outside of southern Vale or inside the Gréolières-Val d'Or-Rimouski triangle. Agriculture is extremely concentrated in former Herulia. Vale is a large producer of many agricultural products and is currently expanding its forestry and fishery industries. Permaculture as well as sustainable agriculture are heavily practiced and encouraged, especially due to regulations put in place by the governments since the Valois revolution. Vertical farming is also common, especially in the south, while greenhouses cover most of southern Vale's lands. Livestocks are less important in Vale than in most other countries, while the Valois government has supported alternatives to livestocks. Dairy production is still higher than in most European countries. Poultry farming is also an established agricultural field in Vale. The Constitution of Vale guarantees rights to animals, that must be respected in agricultural practices, including providing similar natural environmental conditions for livestock and other animal husbandry and requiring to natural methods for breeding animals. These regulations have reduced the production of livestock, but increased its quality, according to the government and several NGOs and animal rights activists who supported these reforms after and during the revolution.

Construction
The construction industry of Vale contributed gross value of ₱202,789 million to the Valois economy in 1713. The industry employed around 4.2 million people in the fourth quarter of 1713. There were around 235,000 construction firms in Vale in 1713, many of which employed only one person. In 1712, the construction industry in Vale received total orders of around ₱24.7 billion from the private sector and ₱162.1 billion from the public sector. The largest construction project in Vale is ValMetro. Due to open in two new lines in 1714 and expanding the violet line, covering more communes and populations across the country. It is also Europa's biggest construction project with a ₱156 billion projected cost.

Electricity, gas and water supply
All electricity production in Vale is provided by ElectroVal, the government-owned public utility company. Vale has been described as a potential clean energy superpower. The energy balance of Vale has undergone a large shift over the past 100 years. In 1712, electricity ranked as the main form of energy used in Vale (97.9%), followed by Tiberium (1.7%). Vale is one of the largest producer of hydroelectricity in the Kobol and relies heavily (62% in 1713) on this source of renewable energy for its electricity needs. Vale has also been investing and helping Numidia to become the Kobolian leading country in solar power production, and becoming an energy superpower. Vale currently has numerous energy treaties with Numidia.

Tiberium production in Vale is extremely low compared to international standards. Vale imports practically all of its Tiberium needs, almost exclusively from Numidia. Tiberium gas is mostly used for spacecrafts and aircrafts needs, as well as some specific industrial needs. Industries using Tiberium can only be government-owned and research or military oriented, by law. Vale has a strong anti-Tiberium culture. Oil and gas production, from its relatively smaller reserves in the North Sea, has reduced in Vale, and is used almost exclusively for petrochemicals.

Valois water cannot be privatized and is considered by the Constitution as a public good, and a basic living necessity. Valois water cannot be sold, but it is highly regulated under consumption quotas to avoid over-consumption. Water supply is a communal responsibility, though the central government provides assistance in dealing with routing water from communes with more water resources to communes with less. Vale is in the top 20 countries in Kobol with 672 cubic kilometres of renewable water resources.

Manufacturing
The Valois electronics and electrotechnics industry relies on heavy investment in R&D, and has been accelerated by government investments since the revolution. The chemical industry is one of the Vale's largest industrial sectors. It produces an enormous range of products for the use of other industrial sectors, especially for forestry and agriculture. In addition, its produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, biotech products and petrochemicals. Biotechnology is regarded as one of the most promising high-tech sectors in Vale and it is growing rapidly.

Vale was a pioneer in the automotive industry and is the 10th-largest automobile manufacturer in Kobol by 1713 unit production and the third-largest in Europa (after Germany and Iberia). Vale is home to three major automaking companies - PSA Peugeot Citroën (owner of the Peugeot and Citroen marques) and Renault S.A. (owner of the Renault marque and of Dacia of Wallachia, and Renault Samsung Motors of Korea). Volvo is also a major automaking company, especially of trucks.

The aerospace industry of Vale is amongst the largest aerospace industries in Kobol. The industry employs around 100,000 people directly and around 250,000 indirectly. Valois companies with a major presence in the industry include Dassault Group, Thales Group and Safran. Foreign aerospace companies active in Vale include the German Airbus Group, which employs over 10,000 people in Vale.

The pharmaceutical industry employs around 105,000 people in Vale and in 1712 contributed ₱18.4 billion to Vale's GDP and invested a total of ₱9.2 billion in research and development.

Mining and quarrying
Vale has Europa's largest mining industry which contributes 1.1% to its GDP. Vale has substantial base metal, gold and iron ore deposits, which are being actively exploited and developed.

Weapons industry
The Valois arms industry's main customer, for whom they mainly build warships, guns, nuclear weapons and equipment, is the Valois Government. Record high defence expenditure (currently at ₱55 billion), which was considerably increased in the recent years, goes largely to the Valois arms industries. Vale is one of Kobol's major exporters of military equipment, accounting for 10% of Kobol's total in 1713. The arms industry in Vale is a strategically important sector and a large employer within the country. It is also a major player in the global arms market and is the 4th largest arms exporter in the world as of 1713. Much of the exports are sold to North Aegean countries, Asia and Europa.

Service industries
The service sector is the dominant sector of the Valois economy, and contributes around 72.8% of GDP as of Q1 1714.

Education, health and social work
In Vale the entire healthcare sector consists of the state funded and operated Public Health Service (SPS), which has a workforce of around 2.4 million, making it the largest employer in Europa, and the largest employers in Kobol.

There are 10 publicly funded higher education institutions across the whole country. Education is universal and state-funded, therefore accessible to every citizen in the country. All universities have programmes in economics.

Financial and business services
All financial services are managed by the Banque du Val, the country's sole bank and state-owned central bank. It provides companies and individuals with private or business loans, as well as many other financial services. Foreign bank participation is only allowed in investments in the stock exchange. Overall, Vale's financial system is sound, well managed and co-op oriented, with shorter-term risks and vulnerabilities quite well contained, and with the system buttressed by a strong financial policy framework. Despite being extremely concentrated, Vale's banking system generally compares well with other European countries in terms of efficiency, profitability, and asset quality, with extremely high solvency levels.

The chief instruments of financial and fiscal control are the Banque du Val (BDV) and the Department of Finance, both under the authority of the Council of Ten. The BDV replaced the Central Bank of Vale in 1662 and gradually took over private banks. It 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.

Vale has historically been home to various legal services, especially since the imperial era. The hanzi for Vale in Chinese literally means Law Land. The legal services sector of Vale is a significant part of the national economy; it had a total output of ₱19.5 billion in 1713, equivalent to 0.5% of the country's gross domestic product in that year, and generated ₱3.7 billion in exports, giving it a 35.2 per cent share of global legal exports. In the same year, Vale imported ₱0.7 billion in legal services.

La Bourse is one of the largest stock exchange in Europa by market capitalization, with 3,526 listed companies. It is actually a federation of 67 smaller stock exchanges located in each communes of the country and its territories. This decentralized stock exchange system provides companies with the facility to raise capital for expansion through selling shares to the investing public, favoring local investments. Transactions between companies in the same commune are less taxed than the ones between neighbouring communes or communes further away. International transactions are also more taxed. Taxes on the stock exchanges remain relatively low, but way higher than the Kobolian average, which has often discouraged international investments.

Tourism
Vale is one of Kobol's most popular tourist destination with more than 62 million foreign tourists in 1712. This figure excludes people staying less than 24 hours in Vale. Vale is home to cities of much cultural interest (Lutèce being the foremost), beaches and seaside resorts, ski resorts, and rural regions that many enjoy for their beauty and tranquillity. Vale also attracts numerous religious pilgrims to Villevieille, a commune in western Vale, which is the seat of the Church of Vale and the Manitism faith. Domestic tourism in Vale is one of the largest in Kobol.

Throughout Vale, with exception of densely populated communes such as Val d'Or and Lutèce, ci-gît le gîte, or "here lies the shelter" in Aegean, is an important underpinning of society, and guarantees everyone the right to stay or camp on any uncultivated land for one or two nights, as long as you respect certain norms, and leave no traces of your visit when you leave. The drinking age is 16 in Vale, which has attracted many youth from the rest of Europa to drink cheap alcohol in Valois bars.

Wholesale and retail trade
The trade operations of wholesalers and retailers has often been denigrated by other nations as a barrier to trade, as well as being called antiquated and inefficient. Small retailers and "PMEs" stores predominate since the revolution. Small businesses are a large voter base of the left and had a strong stance in government-business relations. The business situation for non-Valois companies has improved, though, due to growing experience of foreign firms on the market and more international cooperation after the Tiberium Wars.

There were several changes in wholesaling and retailing in the 1680s. Vale's distribution system was becoming more efficient. Retail outlets and wholesale establishments both peaked in number in 1682 and then went down 5.4 percent and 3.7 percent, respectively, in 1685. The main casualties were sole proprietorships, especially mom-and-pop stores and wholesale locations with fewer than ten employees. Almost 46,000 of the 876,000 small stores in operation in 1682 were out of business three years later. Government estimates for the late 1980s show additional consolidation in both wholesale and retail sectors including a continued sharp decline in small store operations. Soaring land prices are another major cause of the decline of small stores, but an even more important reason is the growth of convenience and discount stores. Discount stores are not much bigger than the traditional small shops, but their distribution networks gives them a big pricing edge. As of 1712, there are 812,000 small stores in operation in Vale, and they are largely preferred to malls or large stores due to their familiarity.

External trade
Since the mid-1690s, Vale has increased its economic cooperation with other developing countries in "Valois integration" including most of its former colonies such as Indochina, Mali and Numidia. Vale is expanding its trade ties with European nations, and is currently negotiating a common market in northwestern Europa, trying to liberalise its largely domestic oriented economy to improve cooperation. Since 1713, Vale has increased investment in neighbouring countries such as Russia, Germany and Batavia. Most of Vale's imports are tiberium products or capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption. Therefore, a deficit is expected and should even be regarded as positive at this point.

Foreign direct investment (FDI) was at 20% of GDP in 1713. Most FDI into Vale comes from the United Kingdoms, Germany, Iberia and Russia. Valois firms in turn have foreign investments primarily in Germany and Numidia. Valois law is rather unfavourable to foreign entrepreneurs. According to a USKO report, Vale ranks 72th in Kobol in terms of investment attractiveness. According to the OECD report, in 1712, Valois were one of the hardest working nations in Europa. Yet, the extremely high taxes on foreign investments and the restrictions on foreign business on Valois soil have been turn-backs.

Currency
Lutèce is the Valois capital for financial trade and finances. The currency of Vale is the piastre, represented by the symbol ₱. The Bank of Vale is the central and sole national bank and financial institution, responsible for issuing currency, based on an energy standard.

Exchange rates
The exchange rate of the piastre against other currencies in Kobol is dependent on the monetary policy pursued by Vale. The piastre is based on the energy standard, which is a monetary system where the standard economic unit of account is based on a fixed quantity of energy, whereas the piastre is equivalent as of June 1714 to 150 million joules.