Kingasong

==KINGASONG   ==  KINGASONG'S POLITICAL-ECONOMIC GOALS The goal of Kingasong’s political economy is to have a very stable but free, market-dependent economy. The economy will not be regulated by the government in any way because freedom is more important than equality in this country. Kingasong’s economy will be dependent on the skill of the major companies that manufacture imported goods into products. This is a liberal economy, so ultimately the goal is to promote freedom and self-responsibility of the individual through assuming that the individual is best suited to manage their well-being. Capitalism is the best way for a country to become economically strong, and after gaining independence from China, Kingasong sought to form a strong economy not dependent on any single entity, be it a country, company, or import, so a liberal economy was chosen because it creates more prosperity than a strictly regulated and isolationist economy.

 NATURAL RESOURCES Because there aren’t many resources on the island of Kingasong, the economy relies on refining imported goods like electronics, petroleum refining, mechanical engineering, and biomedical sciences. This variety is important because it allows the economy to be diversified and not reliant on a single import.

ROLE of the STATE The state has a very limited role in the economy of Kingasong. Regulation is not needed because the economy will drive itself, and it does not need interference from the government. If the economy should ever fail, interference would be minimal because the economy would rebuild itself into a stronger model without regulation. ROLE of the MARKET The market is the basis of the economy. There is little to no regulation allowed in this economy, and supply and demand determines values. Hypothetically, in the unlikely event this very strong, export-based economy should fail, bailouts would probably not be used so that the economy could heal itself by allowing competition to bring strong companies to the top and bring the economy to a new strength.

 CAPACITY and AUTONOMY, EQUALITY, and GOVERNMENT Kingasong has a parliamentary democracy with many branches that makes the government balanced and free from corruption. There is low capacity in this country, as the people are expected to take care of themselves, not depend on the government. Kingasong’s autonomy is also constrained in a similar way, because the free market controls the economy. However, crime in Kingasong is punished harshly by the government. Equality is not a major part of Kingasong’s economy. This country has one of the highest GDPs in the world, and poverty is not a huge problem in Kingasong because the population is very small and condensed in the capital. Kingasong has a parliamentary democracy that is run with a Westminster system. There is no sovereign figurehead, only a prime minister that manages the executive branch with his cabinet. The legislative branch is unicameral, and the judicial branch is headed by the Supreme Court. The prime minister is elected by the people, as is the legislative branch, but the judiciary and the executive cabinet are appointed by the PM.  PUBLIC GOODS and SOCIAL EXPENDITURES The public goods of Kingasong are education, defense, and transportation. These are the basics goods provided by the government and paid for with taxes There are not many social expenditures in Kingasong because freedom is favored over equality.

 TAXES and REGULATION Kingasong has very low taxation system because not many public goods or social expenditures are created for the people. Around 25% of the GDP is consumed by taxes. There is very little regulation upon the Kingasongian economy. Kingasong’s economy is focused on making profit, so regulation is minimized to maximized profit.

 MONETARY AUTHORITY OF KINGASONG The Monetary Authority of Kingasong (MAK) is in charge of issuing currency, and was granted the power to regulate all monetary, banking, and financial aspects of Kingasong’s economy. MAK promotes stability, credit, and exchange policies that are conducive to the growth of Kingasong’s economy. It is powerful in the sense that it handles all these important pieces of Kingasong’s economy, but it is limited in terms of how much MAK is allowed to regulate.  FREE TRADE Kingasong is a supporter of free trade and has twenty seven trading partners. Kingasong is widely considered a valuable trade partner because of its transparent trading policies and its virtual lack of corruption. As one the largest and busiest seaport in the world, Kingasong is a popular trading partner and does not need to influence trade to benefit itself. Free trade allows for stronger and better companies to rise to the top of the economy while weaker companies fail.

 COMPARATIVE ADVANTAGE Kingasong has a comparative advantage in electronics.

POLITICAL ECONOMIC FLAWS The one major hypothetical flaw of Kingasong's political economy would be the aftermath of an economic depression or recession. If the many countries Kingasong depended on for imports were to fail economically and no longer send imports, Kingasong’s economy would take a severe toll. This is unlikely as Kingasong depends on several other economies, not just one.

 GROSS DOMESTIC PRODUCT: $57,721 GINI INDEX: 42.7 <span style="background-color: #1a8014; font-family: Impact,Charcoal,sans-serif; font-size: 160%;">HUMAN DEVELOPMENT INDEX: 22