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DispatchBulletinPolicy

by The Imperial Welfare Union of New Camelot of Avalonia. . 86 reads.

The Avalonian Economy: The Freedom & Foreign Goods

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THE AVALONIAN FREEDOM
The High Commission for Foreign Affairs
1 Amalienvajg
Amalijeshavn, Inner Köbarnhavn
Capital Region Avalonia, K0002078

The Imperial Welfare Union of New Camelot of Avalonia
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Terminology

Freedom, in the Avalonian context, refers to the Imperial Welfare Union's unique material economic system. While the first idea conjured by the Freedom may be the state of being free from something, in Avalonia, Freedom refers to a centuries-old state policy of goods and services being provided without direct charge to the people. In Old Avalonian, the Freedom is "Frejdereijket", and is formed by "Frejde-", meaning offered for free, and "reijk", meaning the state/entity. It was translated to Freedom in the way the Avalonian word for Kingdom, "Dreijnarjareijk") is translated: Frejde/Dreijnarja (Free/King) + Reijk (dom).

Today, the Commonwealth refers to the political organization of the nation, and the Freedom refers to the economic organization of material goods and services (as opposed to post-materialist aspects, which characterize Avalonia's post-materialist economy. We in Avalonia sometimes refer to the superstructure formed by both the State and the material Economy as the Commonwealth-Freedom. For instance, an embargo removing a certain nation from being able to trade with Avalonian companies or deal with the government may be characterized as "An embargo implemented by the Commonwealth-Freedom". Though in an official capacity, we refer to Avalonia as the Imperial Welfare Union, many politicians also refer to the nation as the Commonwealth-Freedom when expressly not referring to the post-materialist economics. When talking purely about the material economy, many say the material economy, or iron economy (Using the Old Avalonian word Isijenkomonij) as we call it, but some say Freedom if they are referring to the economy in the material context of everything being free, or in the context of international trade. Today, for Avalonian Citizens and Permanent Residents, and select other status-holders everything is free, but for some status-holders, not all goods and services are free, meaning that not all those in Avalonia are in the Freedom. The separate materialeconomy for those not with statuses granting access to the Freedom is referred to as the Exchequerie. But in Avalonia, as a post-materialist country, the economy refers mostly to the post-materialist aspects. The post-materialist part of the economy is referred to the Amssjajlshandele (Meaning Soul-Trade in Old Avalonian). Therefore, the Avalonian Economy refers to and consists of both the Freedom and the Amsjajlshandele (shortened as the Amsdel). To refer to the state and only the Amstel, the Welfare Commonwealth is used. In the context of this article, economy is used without specifying reference to the material economy, as it is generally understood that economics in regard to the Freedom refer only to material production and consumption.

The History of the Freedom

The idea of Avalonian Freedom dates back to 1672, in a southern province of Suèditje Region Avalonia. In 1672, the southern Suèditje state of Skaaćne attained semi-autonomy from Avalonia. They established their own neutral, non-militarized government, and as a province with a well developed (material) economic support system, the state extended their existing support to the inhabitants of Skaaćne to encompass all goods and services. Many would call this communism, but in reality, it was the earliest view into Avalonia today - a democratic, egalitarian society of state-owned industry serving all people. The state named itself The Freedom of Skaaćne (Skaaćnes Fririk), it was called, meaning that everything was free in Skaaćne. The name was changed in 1673, to the Commonwealth of Skaaćne (Skaaćnes Samäldet), and Freedom was instead used to describe only the materialist economic system. In 1738, after the Matignon Revolution and the Great Disunion Collapse of 1733, the Commonwealth of Skaaćne was integrated into the Duchy of Köbarnhavn-Stenorholm, and the system ended.

In 1745, Her Majesty The Queen Amalia, who is considered the greatest of Avalonia's enlightenment rulers, and who had a keen interest in economics decided that the system should replace the existing welfare system at the time. This was an extremely expensive proposition, one that was met with much opposition by the nation's elites. But with her and the Royal House's vast fortunes as the largest private interest in Avalonia's economic empire, the Royal House funded the a three-decade transition into the freedom, which paved the way for the thriving economic system Avalonia has in place today. These original three decades, from 1745 to 1775, contain the origins of many of Avalonia's economic terms. For instance, for those in Avalonia, like Tourists, who do not have free access to goods and services, are instead part of a separate economy, known as the Exchequerie. This comes from the Her Majesty's Exquequerie, which was the Royal Account established in 1752, to manage the requests of special Aristocratic families that requested special goods and services for their lavish balls and social events.

A Breakdown of the Freedom in Avalonia

This brief overview references statuses that are assigned to all people in Avalonia, and to some people outside of Avalonia. You may find information on the tiers and statuses here
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**Note: This document uses the words Goods, Services, and Opportunities here. As defined by the Ministry of the Economy and Her Majesty's National Ombudsman, Goods refer to articles with intrinsic use or value. It can include anything from an electric vehicle to a organically cultured tomato, but excludes money and securities. Services can include plumbing services, going to a restaurant, education, healthcare, and wifi. Services refer to activities performed by one for the interest, benefit, or requisite of another, as well as the provision of certain resources and systems. The latter refers to State Services, the provision of important resources like electricity, water, wifi, healthcare, education. State Services are only available through the State, and can not be receive through Free Access of Goods or Opportunities. Opportunities refer to a small amount of goods, services, and experiences sourced outside of the Freedom for which Avalonians would require foreign currency. Opportunities include vacations out of the country or studies in another country. Most times that an Avalonian leaves the Freedom, they will be receiving Free Access of Opportunity through the Opportunity Stipend.

The Right of Access is central to your place in the freedom. The Rights of Access, also known as the Freedom Right, defines one's access to the Goods, Services, and Opportunities that the Freedom provides. All Permanent Residents (even if that status is temporary) have Rights of Access, meaning they have free access to the Freedom Economy's goods, services, and opportunities. Statuses 1-3 and 6-9 have the Rights of Access.

If you are a citizen or a permanent resident (Status 1-3):

  • Everything is free (Goods, Services, Opportunities)

  • Tax rate is 100%

The reason for there being no difference between Citizens and Permanent Residents is that all Permanent Residents may receive citizenship after 6 years, and the Avalonian Government does not distinguish between the Citizens and Nationals in matters of all other rights, except for voting abroad. There is, for the most part, effectively no difference between Citizens and permanent Residency.

If you are a Special Status Holder (Tier Four)

  • Everything is free (Goods, Services, Opportunities)

  • Tax rate is 100%

If you are a Temporary Resident without a Special Status (Status 4 Holder):

  • Goods and State Services are free

  • There is no income tax, but there are special payroll taxes

If you are a Permanent Resident of a Special Economic Zone:

  • State Services, with the exception of Education, are free. Education comes at a special income tax.

  • There is no income tax.

If you are on a Visitation Visa

  • State Services are free

  • No income tax rate, as there is no work permit for Visitation Visas

We hope this has been informative.

Foreign Goods and the Avalonian Freedom

In the unique Freedom system, varied choices of goods exist, yet foreign trade is not managed by the individual entities that directly provide such goods to Avalonian consumers. Instead, foreign trade is managed by a massive economic administrative superstructure that balances Avalonian needs and desires for foreign goods.

The system of Avalonian exports is simple - an order may be made through the Avalonian Economic Repository, and through an efficient order system, the goods then arrive on the shelves of the foreign country. As part of the Avalonian Economic Repository, all goods are labeled according to their industry, and their individual company. For instance, a Francés Soap produced in the Provence would be Provence-Anjou French Soap UIR. Geographical markers are also used for specific lines of a company. For instance, as shown above, the Pré de Provence is used for certain types of soaps produced that are exports to certain markets. It is easy to spot Avalonian produced goods - they will have a Company Name (ending in UIR., standing for Unionized, Incorporated, and Registered), and then the Foreign Goods Distributor's name, Sonderburg Incorporated Commonwealth. With regards to trade policy, as a full integrated global exporting economy, the Avalonian Government always pursues reduced tariffs for Avalonian Goods.

Avalonian imports is more complicated. Avalonia imports many goods from many countries, majority of which are free market countries. When goods leave a free market country, they cost money, and the nice businessmen and women expect to get paid for their goods. But when it arrives in Avalonia, in the established Freedom, the goods are totally free, to be taken by an Avalonian that has need for it. In between those two stages, as money must have been exchanged between the Avalonian Government (which buys all foreign goods on behalf of the Avalonian people) and the business that produced the goods, there exists the massive Avalonian importing superstructure.

Essentially, the Avalonian government manages the supply of goods to Avalonians to not eclipse the demand excessively.

The Avalonian Ministry of Consumption: This Ministry distributes and monitors the consumption of both foreign and domestically produced goods. There are two important commissions: The Avalonian High Commission on Foreign Consumption, and the Avalonian High Commission on Domestic Production.

  • The Avalonian High Commission on Foreign Consumption monitors the consumption of foreign goods in Avalonia, and distributes them throughout Avalonia.

  • The Avalonian High Commission on Domestic Production monitors, controls, and distributes the production of goods inside Avalonia, and monitors the consumption of the domestically produced goods inside Avalonia to decide how much should be sold on international markets. In reality, the HC on Domestic Production operates as multiple industry-specific commissions, which receive information and directives from the central High Commission.

These two commissions work hard to keep stable the supply of all goods for Avalonians and it is their biggest priority to make sure that the eclipse of demand by supply does not grow wasteful.

STEP ONE: CONSUMPTION BUDGET
The two commissions use value indicators of the per capita budget and the national budget for consumption. They then use data of consumer trends to carve out of the budget the amount of money needed for foreign goods consumption in one year. The other money is used to go back into Avalonian domestic industry. Every purchase made in Avalonia has a record sent to the central Ministry of Industry. There are hundreds of thousands of processors and backup processors making sure that this information is kept safe and back loaded, so that in case of a malfunction, there is excess data to keep the economic information production, and therefore the nation, running smoothly. Records are also printed to paper, which can be processed in the extremely unlikely event of a malfunction that effects all electronic processors. There are twenty five automated timber farms and mills that ensure the records do not run out of paper supply.

STEP TWO: TARIFFS
6 months after establishing the budget for foreign goods consumption, and 6 months before the goods will be bought and enter the Avalonian Freedom, the two commissions meet and decide if anything has changed - if domestic industry will need more resources, etc.. After doing so, if there is a need for more resources for Avalonian domestic industry, the Avalonian High Commission on Domestic Production and the Avalonian High Commission on Foreign Consumption will set tariffs together on the goods they established a need for the year before.

These tariffs will come into effect 3 months later, 3 months before all goods will be bought and enter into the Avalonian Freedom. This is a little different for agricultural goods.

STEP THREE: PREPARATION:
For the next three months, 6-3 months before the goods are bought and enter into the Avalonian Freedom, the Avalonian Ministry of Consumption will work with the Avalonian High Ministry for Foreign Affairs and the Avalonian Commission for Foreign-Bound Goods Production (A sub-ministry of the Avalonian High Commission on Domestic Production) to settle any trade disputes that might arise due to the tariffs set. The Avalonia Ministry on Foreign Consumption will also monitor trends for consumption of foreign goods. For Avalonian Tariff Policy, if a tariff is placed, there is usually a 1-2% wiggle room set.

STEP FOUR: GOODS BOUGHT
For two months, the Avalonian Commission on Foreign Consumption works the budget out, preparing budgets, factoring in tariffs, and preparing Blue Papers of Demand. They meet with the producers of foreign goods, the businesses, etc., that they may order from. Then, after those two months, and one month before the goods will enter the Avalonian Freedom, the Avalonian Commission on Foreign Consumption finalizes the Blue Papers of Demand and publishes it, as the Whitepaper on Foreign Consumption. They then order from their chosen companies the chosen goods, and for the next month, the goods are on their way to Avalonia! When they arrive, they enter the Avalonian Freedom, and are made available to Avalonians.

Please note: this explanation explains this as though all goods are bought at the same time. This was a simplification of the process, in reality, goods are planned out to be ordered, and rationed over the year, so that the supply always meets the trends of demand for the specific seasons. The commissions review trends not holistically from one year, but in seasons, even breaking them down into months and weeks as they plan the order of goods from abroad. Some industries function faster than others, which is why the High Commission for Foreign Consumption has many sub-commission departments. The agricultural imports, which are imported on a weekly and even daily basis, for instance, enter the country through a process much faster than the one explained above. All departments have special sub departments to react to any shortages in other countries, or any contamination crises of goods that will be ordered.

A Visualization of the Freedom System

[To see the visual featuring Her Majesty's Royal Treasury Flag that is used officially within the Aix and Nord-Amalien Provinces of France Region Avalonia, utilize this link: https://i.imgur.com/tAw7RQK.jpg

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