Istkalen, the Republic of
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Economy of Istkalen
(WIP)
The economy of Istkalen is developing, largely dependent on agricultural and mineral exports, with industry, albeit mostly handicraft and light industry, playing a role. There is a significant emerging service sector, growing largely due to lowered demand for unskilled labor in rural areas, as well as higher demand for such labor in urban areas, primarily in the retail sector. The "information" sector is also prominent, and is more well-established than the service sector, but does not contribute to the economy as significantly as other sectors.
The country's economy has stagnated in recent years, largely due to mismanagement, and is expected to decline significantly this year. In particular, agricultural output in 2021 is far lower than normal; while the country was previously able to narrowly get by with what it produced, while at the same time being able to export, produce is now far lower than what is necessary to sustain the population on mere survival rations. Mineral extraction has also ground to a virtual halt; virtually all remaining extraction does not contribute to Istkalen's economic output, as it is conducted by the Archrepublic of Vayinaod and the Kingdom of Reitzmag. The light and handicraft industries, without the necessary materials deriving from agricultural and mineral produce, have also collapsed. Supply chains have also been severely disrupted by the destruction of major transportation arteries, several of which remain damaged.
Prior to the invasion, Istkalen's primary exports were uranium, iron ore, cobalt, various rare earth metals, lumber, and agricultural products , particularly potatoes and other similar indigenous root vegetables, although cereals and poultry were also a significant component. The country also exported, to a lesser extent, light industrial products and handicrafts such as paper, textiles, glass goods, and leather goods. A small amount of steel was also exported; however, most was reserved for domestic use. Its primary imports were refined metals, including steel, cereals, other agricultural products, particularly fruit, and machinery, particularly agricultural machinery.
Industrial productivity in the country is low. A significant portion of its industry is handicraft in nature; light industrial plants, which also exist on a significant scale, often have no or little division of labor within them, which in many cases hampers production. Agricultural productivity, particularly outside of the cities, also lags behind the rest of Europe, although not as significantly as in industry - this has been attributed to the dominance of smallholdings (the average plot size is about 3 hectares). A significant percentage of the crop is also consumed by their growers, although this has reduced as time has progressed. While what is produced is under normal circumstances enough for the population and some export, there are often visible shortages within the country, coupled with prices that are on average significantly higher than elsewhere. In order to prevent "foreigners" from taking advantage of this, successive governments have imposed virtual bans on the importation of a number of products, as well as high tariffs on many others.
The country's economic output is largely decentralized. While there are significant concentrations of the population in certain areas, particularly Kirelesile, in reality industry, apart from heavy industry, is decentralized and spread throughout the countryside, as is agriculture and forestry. Cities are mostly self-sufficient, and consume virtually all of their economic produce, although they are largely developed, housing most of Istkalen's "modernity," including attempts to fuse traditional handicraft industry with modern industrial techniques, as well as collective agriculture.
The country generally exports in the summer months and imports in the winter. Throughout the summer, the country is able to export its primary good - agricultural products - as most of the population is employed in agriculture. In winter, however, as agriculture becomes impossible, the population will temporarily transition from agriculture to other industries, particularly light industry, crafts, construction, and mining. The demand for raw material increases accordingly, eventually requiring importation - largely unnecessary during the summer months.
Most businesses in the country take the form of cooperatives, which are termed "collectives," "dual proprietorships," which arose by consequence of the development of the "partnership of labor" under the Social Democrats, and "sole proprietorships." Family businesses are nominally permitted, but the family, largely as a result of Social Democratic rule, barely exists in Istkalen anymore. These different ventures are organized through municipal trade organizations, which demand of their members various duties in production, and cooperation in the accomplishment of these duties. The trade organizations are further organized into broader national "people's syndicates," which themselves demand certain duties in production and cooperation from the trade organizations to implement plans set out by local, regional, and national "Congresses of Producers." This has been criticized as inefficient by a great number of economists; Istkalen's government argues that it is traditional and allows for a greater dignity and equality than any other system existing in Europe at this time.
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Industrial Organization in Istkalen
Industrial organization in Istkalen closely follows the organization of society. The country is highly decentralized in this respect, particularly because of land reforms conducted in the late 1700s and the early 1900s which distributed land previously owned by the state, or rather the Emperor, to individual peasants.
Workers are organized first into "labor partnerships," or "partnerships of labor," composed of two individuals. This arrangement originated in the late 1990s, as a result of extreme crime and instability that made individual work outright dangerous. In the context of industrial organization, the two members of a "labor partnership" are effectively one; they are contracted or find work as a partnership, not as individuals, are expected to make decisions as a group rather than as individuals, and are expected to produce as a single unit rather than two. Partnerships may contract each other freely - for example, a metallurgist might contract steelworkers under certain scenarios; consumers, too, may contract individuals - a doctor to care for them, for example, or a craftsperson to make or repair some good. Contracting of this nature makes up the vast majority of the urban economy.
In agricultural work, contracting is not as prominent between workers and consumers, for clear reasons; agricultural producers will largely set the amount they produce themselves, although limitations and requirements are imposed by higher bodies. Most also seek to be self-reliant, seeking to refrain from contracting others to labor for them, although it is occasionally done. Collective but informal and usually voluntary labor is used to maintain larger infrastructure needed to sustain agriculture.
Most mines are organized as collectives, where labor-partnerships will enter and be assigned a role by a general assembly of all workers, or in extraordinary circumstances the "head" of the mine, who is usually, but not always, elected by the assembly. They do not employ individuals, instead opting to integrate them into the collective itself - a result of the often seasonal nature of mine employment The same applies to factories, particularly in heavy industry (light industry is largely craft-based in nature) although the system only arose after the abolition of the apprenticeship system; unlike mines, however, factory-collectives will occasionally contract others to work under the collective.
In light industry, contracting and informal relationships are dominant; workshops will often be constructed near or next to each other in related industries, in some cases within the same space. A machinist, for example, might have their workshop or workspace in a greater manufacturing compound, and send completed parts to another, contracted workshop for use in the creation of a larger product. This is largely an organic replication of the factory system, differing only in its partial rejection of the division of labor (division of the type described is only really practiced in the manufacture of more complex products, particularly electronics), as well as in its relative decentralization, which is criticized for inefficiency but also praised for being more humane.
In previous years, individuals in Istkalen could be formally employed. Prior to 2003, an apprenticeship system allowed individuals to directly employ great numbers for extended periods of time; this was, however, abolished by the Social Democrats and replaced by a system of state-administered vocational education involving work for the state, which plays a minor but noticeable role in Istkalen's greater economy.
"Partnerships of labor" are directly organized into ward-level "workers' associations," whose purpose is to organize the distribution of property and ensure broad social welfare. These organizations allocate capital and hold most productive property in the country, which they are responsible for lending to individual workers in exchange for a portion of the product, previously predominantly collected in-kind but now increasingly in financial forms. Corvee duties were previously organized through these associations, but were abolished under the tenure of Kalju Ilves. They also, however, exist to organize much of Istkalen's expansive welfare state, managing many of the "new" universal services that were introduced with the occupation, from public canteens to childcare.
Workers are also expected to render certain duties to the greater "workers' association" to which they belong; they must, when operating independently outside of public and state duties, hold to specific principles set out by it, particularly in regards to the methods which they use and the fees and prices they impose. However, they also defend and represent their members, particularly in regards to contracting and in matters of state.
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Heads of State of Istkalen since 18 April 2021
Name Position Political Affiliation Term Cabinets Ilest Kerel Head of State (republic) Unity (far-right) 18 April 2021 - 5 May 2021 n/a (presidentialism) Liros Ikomar Head of State (republic) Radical Democratic Party (center) 5 May 2021 - 11 September 2021 presidentialism, Rikkalek Vistek Rikkalek Head of State, Chairman, Héletek (republic) Green Party (center-right), People's Association (center-left), Liberation (far-left) 11 September 2021 - 1 September 2022 presidentialism, Malk I, directorial rule, Ilves I Yasemin Demirkol and Kondres Uklertal Co-Presidents Union/Progress (center-right) and Social Democratic Party (center-left) 1 September 2022 - 23 January 2023 Ilves I, Uskeled Ursula Orlich State Protector non-partisan 23 January 2023 - 29 May 2023 Ilves II Makketis Mindrestek President of the NSC non-partisan 29 May 2023 - 30 June 2023 Ilves II Lance Kareskenet Head of State non-partisan 30 June 2023 - 26 July 2023 Malk II Itani Virkoknas Head of State non-partisan 26 July 2023 - 9 October 2023 Ikoszer, Oskon Ilmaras Kalessed Head of State Agrarian Union (left-wing) 9 October 2023 - 9 October 2024 Oskon, Orlich, Íkrat I, Íkrat II Ursula Korhonen interim Head of State Agrarian Union (left-wing) 9 October 2024 - 31 December 2024 Íkrat II, Íkrat III Lauri Laakonen and Veia Veivet Iveva Co-Presidents Statebuilding Party (center-left) and Agrarian Union (left-wing) 1 January 2025 - present Íkrat III Governments of Istkalen since 12 February 1912
Name Constituent Parties Term presidentialism under Kerel Union 18 April 2021 - 5 May 2021 presidentialism Union, Radical Democratic Party 5 May 2021 - 22 July 2021 Rikkalek Communist Party, Agrarian Union, National Republican Party, Radical Democratic Party, Patriotic League 22 July 2021 - 30 November 2021 Malk I Communist, Agrarian Union, Patriotic League 30 November 2021 - 14 January 2022 presidentialism Agrarian Union, Patriotic League 14 January 2022 - 1 February 2022 directorial rule People's Association 1 February 2022 - 15 May 2022 Ilves I non-partisan/Social Democratic, Agrarian Union, Union 15 May 2022 - 28 November 2022 Uskeled Communist, Social Democratic, National Republican 28 November 2022 - 23 January 2023 Ilves II Communist, Social Democratic, National Republican, Liberation 23 January 2023 - 30 June 2023 Malk II National Repubican, Agrarian Union, Liberation 30 June 2023 - 26 July 2023 Ikoszer Social Democratic, National Republican 26 July 2023 - 29 September 2023 Oskon Social Democratic, National Republican, Liberation 29 September 2023 - 11 November 2023 Orlich Communist, National Republican, Statebuilding, Farmer-Green, Agrarian Union, Union 11 November 2023 - 20 March 2024 Íkrat I Communist, National Republican, Farmer-Green, Republican Syndicalist 20 March 2024 - 15 June 2024 Íkrat II Communist, National Republican, Farmer-Green, People's, Statebuilding, Radical Democratic 15 June 2024 - 31 December 2024 Íkrat III Communist, National Republican, Statebuilding, Democratic Movement 1 January 2025 - present -
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