Business
The currency of Fugo is extremely strong relative to the world economy. This is due to the fact that Gosic is exported exclusively by the city. Thus, it has a trade surplus. The exchange rate is 1 Gosicoin = 1 Yuan = 10 INR. There is a progressive taxation system, with an extra tax imposed on those who have more than 3 children. Those who domesticate animals must pay a cruelty tax. The diagram below pictorially summarizes the trade in terms of cash flow and material flow across the whole city:
|
Economically, the city is divided majorly into four areas:
|
1. The volcano region (Centre of the island)
Resources available: A special metal called ‘Gosic’, which has combined properties of gold, silver and copper, is found in this region. This metal has been deposited here due to continuous volcanic activity taking place over years. This metal is unique to Fugo. It is a major raw material for a number of final products which are used by the people staying in the residential regions.
Ownership rights: The first few people who discovered this metal on the island were a group of transgenders. They discovered the metal, realized its true potential and gradually made a business out of it. Over time, they built a strong business community of their own and through use of their business power, they gained the ownership rights of the metals available in this volcano region. This is also called the Gosic region because of abundance of Gosic metal.
Trade: The owners of the region have further rented parts of it to different people. The people who have rented the mines travel everyday to this region via waterways connecting the mainland and the volcano region. The metal is extracted and laden into hovercrafts which carry the metal to the periphery while moving through waterways. From that point, they finally transport it to the domestic industries as well as to the ports for export purposes. Hovercrafts are technologically advanced vehicles which can travel both in water and land, thereby smoothening the process of transportation. Given that this metal is found only in this island, it is an exclusive exporter of the metal throughout the world. This export brings in a lot of foreign reserves which are then utilized to import foodgrains for the domestic consumption. 3. The industrial region (Part of the outer periphery)Resources available: This is the manufacturing hub of the city. The industries are technologically advanced with up to date machinery and means of communication. All the major product and service based industries are present. Though most of the industries get raw materials from within the city, but only industry which is dependent on import is the food processing and agriculture industry. The agriculture in the city is not developed as the climatic conditions are not suitable for it. Hence, the foreign reserves earned from exporting metal are used for importing foodgrains for the city.
Ownership Rights: Unlike cooperatives of the forest region, factories are owned by a handful of people who also are the scientific community of the city. In the past, as scientists designed new ideas and developed technology, they themselves started putting these ideas into commercial use instead of just publishing their research. They showed an entrepreneurial streak and are today the owners of most of the industries. In fact, they have developed research laboratories within the factories and are continuously working on R&D along with handling business operations of the factories. Trade: The raw materials, coming from the forest and the volcano region, enter the factories as inputs and are finally processed into finished goods. These finished goods are then transported, through wooden carts, to the marketplace of the city. Different customers come to the marketplace and buy the finished goods and services. None of these are exported as the only export which takes place is of the metal from the volcano (Gosic) region.
|
2. The forest area (Part of the outer periphery)Resources available: This region has two major resources. Firstly, it provides for fruits and other food items, except food grains. Secondly, forest area is the main source of wood which acts as fuel not only for different industries but also as a major input in real estate, since houses and furniture mainly use Nyang wood. Nyang wood has specific properties that make it ideal for use as a fuel source - both efficient and sustainable.
Ownership rights: Years ago when Fugo first came into existence, the forest region was primarily inhabited. Different groups of people divided the forest area amongst themselves and peacefully stayed throughout the years. Till date, this region is run as a cooperative, syncretic structure where all the families of this area have an equal amount of ownership rights on the forest region. Trade: The extracted food and wood is traded with people from other parts of the city. The major means of transportation used are again hovercrafts which carry huge loads of materials to different parts, especially to the industrial region. Thus, the industrial region receives additional raw material from forest region, in addition to the metals which it receives from the volcano region. This raw material also takes care of the fuel needs of the industries, thereby the city is not dependent on imports for energy usage. IT has achieved self sufficiency in meeting its energy needs. 4. The coastal regionsResources available: These areas exist because of the beautiful and largely untouched beaches of Fugo. Tourism plays a big part in the economy of this region and thus there is a unique government policy framed. Both foreigners and locals enjoy the adventure sports that are available as well as surfing. Due to special concessions alcohol is priced very low and non-chemical drugs are legal. This is a purely commercial area, no residential property exists here.
Ownership rights: Since the Great Crash of 2025, the government controls wholly or partially all the large companies of the coastal region. These are the only PSUs on Fugo and they are run with uncharacteristic efficiency. There is widespread corruption and numerous barriers to entry for private players. Also, the government has had the upper hand since the beginning so therefore any new business finds it difficult to survive sustainably. Trade: Only services are provided and products are consumed; nothing is produced in this area. They export everything. However, due to the goodwill generated by this area and the large number of visitors (tourists and natives) this is not a burden and no one exploits the government. It is economically prosperous, but has come under media scrutiny due to the prevalence of corruption and recently, large bonuses doled out to top executives. |