The Empire of Varangia is an absolute monarchy allied to the People’s Coalition. Very rich, it possess abundant mineral resources as well as a very powerful heavy industry. It is distinguished by very strong inequalities between those of means and those without; the rich are superbly well-off while the poor can barely eke out of a living. Wealth is thus mainly owned by the great families who reign over the Empire. The Empire of Varangia is also one of the most densely populated nations of the Galaxy.
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GOVERNMENT AND POLITICS
If the Empire is no longer one of the first economic powers of the galaxy as it was a few centuries ago, it economy remain today rich due to its unsurpassed natural resources and its important and low-cost manpower. Having largely retreated on the exploitation of its natural resources, the economy of the Empire is marked by the predominance of extractive industries. The manufacturing economy of the Empire depends for its part on a large and inexpensive labor force. Exports are thus largely composed of products with low added value. The large trade surplus caused by industrial exports enabled the Empire to build up large foreign exchange reserves. These reserves give it considerable financial strength. Despite these assets, the Empire’s economic development has long been penalized by inefficient centralized policies, a low-skilled workforce and strong corruption. Although very rich, the Empire is unequal. Wealth is thus mainly held by a few families. As a result, domestic consumption is relatively reduced.
- Agriculture :
The share of agriculture in the national economy is an important sector of activity.
Its contribution to national wealth, however, is small compared to the workforce it employs.
- Natural resources :
Established within a stellar nursery, the Empire benefits from very important natural resources
Essential and strategic source of currencies, these are exploited by corporations belonging for the most part to the great families that rule the Empire.
Indeed, an important part (47%) of this huge production is exported.
The Empire has a very important industrial base (steel industry and heavy industry), but aging, with a very small proportion of small enterprises. The manufacturing industry is mainly specialized in the production of low-end range products at low cost. Aware of its weaknesses, the Kingdom has invested a large part of its financial reserves in major industrial programs that will enable it to make up for its technological backwardness.
Though less developed than in other nations, services dominate both in terms of labor force and gross domestic product in the economic structure of the Empire.
The balance of trade of the Empire is surplus, mainly because of the exports of raw materials.
Natural resources account for almost 80% of the Empire’s exports. Products from agriculture and livestock also provide a significant share of the galactic markets.
The Empire is a market with greater trade barriers than in other industrialized nations. Imports of consumer goods dominate the purchases of the Empire.
SCIENCE AND TECHNOLOGY
The scientific production from Varangia, although historically weak, has entered in a phase of rapid growth for two decade. Funds allocated to research and development have gone from 0.05% to 1% of its GDP.