Economy of Kivu

The Kivuian economy is classified by most economists as a mixed economy, a prosperous capitalist welfare state, that features a (mostly) free market activity. Kivu has a per capita output that is the sixth-highest GDP per capita among Erosian countries, and the tenth-highest in the world. The largest sector of the economy is the service sector which accounts for about 46.4% of GDP, followed by the agricultural sector (31.2%), and the industrial sector (22.4%).

Around 75% of Kivu’s GDP is generated in cities, with the largest being Bayport. Most industries, businesses and financial institutions are concentrated in coastal and central Kivu, particularly in the X and X metropolitan areas. X is the economic capital of Kivu

Tourism, forestry, foodstuff, manufacturing, electronics, and fishing are the leading sectors of the Kivuian economy. Kivu’s most important economic sector is tourism.

After Kivu gained independence from the Jackson Empire, the welfare state was created. In the early 2000s, taxes were raised to expand the welfare state. This combined with a series of successive social reforms transformed the country into one of the most equal and developed on Terraconserva. Kivu consistently ranks near the top of world rankings for health, literacy and Human Development. Kivu has the sixth-highest Human Development Index (HDI) as well. It is judged by most to be a well-functioning and stable country. Kivu is believed to be one of the least corrupt countries in Terraconserva. Property rights are well protected and contractual agreements are strictly honoured.

Large organisations, both in manufacturing and services, dominate the Kivuian economy, with the largest companies being Bluefront Inc., Kivu Aerospace Company, Papaya, etc.

Kivu has a very free labor market, employers can hire and fire whoever they want,, and establishing a business can be done in very little time at a very low cost. No restrictions apply regarding overtime work, which allows companies to operate 24 hours a day, 365 days a year.

Although, Kivu operates a free-trade economy that gives businesses significant economic freedom, there are still strict regulations that prevent the exploitation of people and natural resources.

Natural Resources

Kivu has plentiful natural resources including, forests, fish, hydropower, and minerals. Natural resources are an important for rural residents.

In 2008, strict regulations were placed on the harvesting of its natural resources. These regulations were placed to ensure that all natural resources are harvested sustainably without significantly harming the environment.

Worker’s Rights

Kivu has very strong workers’ rights, including state funded universal healthcare. Parents receive a federally mandated minimum of 10 weeks of parental leave per year. Depending on the company, most Kivuians receive around 21 days of sick leave per year. Kivu has an unemployment rate of 5.7%, with 66% of the working age population employed. The female employment rate is high, as gender segregation and discrimination were banned in the 1990s. The minimum wage in Kivu is $18.25 KCRD per hour, and the difference between a company’s lowest and highest paid employees is relatively small compared to other similar economies. Only about 10% of the population lives below the National poverty line of earning less than $2,000 Qubecshirite Credits per month.

Kivu has a large, well funded pension program for all citizens. Citizens are automatically permitted to access their pensions after they turn 60, or are disabled.

Unemployment compensation is relatively high. The level of unemployment benefits is dependent on former employment and on membership of the Kivuian government’s unemployment fund.

Collective Labor Agreements

Kivuian law requires that all businesses with greater than 99 employees must have a collective labor agreement that is approved by at least 52% of its employees. They are renewed every 3-5 years, depending on the company.

Controversies

People living in Eastern Kivu are, on average, wealthier than people living in other parts of Kivu. This causes a divide among the population.

Taxation

Kivu has a two-step tax scale with a provincial income tax of about 30% and an additional high-income state tax of 20–25% when a salary exceeds roughly 320,000 Qubecshirite Credits per year. In addition, a national values added tax (VAT) is added to all nonessential items bought by citizens. Certain items are subject to additional taxes beyond the VAT. The typical worker receives 45% of his or her labor costs after taxes. Corporate tax rates are 34%.

Currency

The currency is the Kivuian Credit which is regulated by the Kivuian National Bank, which is headquartered in Sequoia It was established by the first government after Kivu gained its independence from the Jackson Empire.

Spending

Kivu spends 26.3% of its GDP on public social spending. 5.8% of GDP is spent on education, and 10.0% is spent on healthcare.