Improvement economy

Improvement economy refers to a plan of economic redevelopment intended to bring about rapid economic growth, urbanization, and modernization in wartorn developing countries by means of mass investment in internal improvements. It was coined by Urcean scholars in reference to its system of economic development in Crona in the aftermath of the Deluge. As understood in the Urcean context, the improvement economy included a number of major integral parts funded by huge investments primarily by Urcea: construction or reconstruction of highway and railway networks connecting major cities and planned major cities, including bridges and any ancillary roadways necessary; construction of international airports; construction or reconstruction of major seaport infrastructure; construction or reconstruction of canal networks and irrigation systems; payment of wages to those involved in construction projects according to the prevailing wage in Levantia, and; use of the Taler by all countries in order to ensure economic stability. Once completed, ownership of the new infrastructure is transferred to the indigenous government with continued but declining operational aid until the projects reach self-sufficiency by user fees. All countries receiving improvement economy investments have already liberalized their economies, both as a prerequisite for receiving funds but also as an envisioned precondition for economic growth through the funds to actually occur.

The large wave of infrastructure projects is envisioned by proponents of the improvement economy to essentially bootstrap economic modernization by creating all the conditions necessary for the establishment of robust urban service economies in the major Cronan cities as an outgrowth of the construction (and later infrastructure maintenance) workforces, such as restaurants, vehicle charging stations (and/or gas stations), retail stores, and other similar firms that would result as a concentration of people and excess capital in major cities. The large number of construction projects was intended to create a huge number of new local construction firms to serve as contractors, the owners of whom would form the basis of a new indigenous economic elite that would reinvest in other profitable enterprises locally. The payment of prevailing wage would also bypass some of the expected waste, fraud, and abuse of local construction contractors by putting large amounts of disposable income directly into the hands of Cronan workers, creating the nucleus of an indigenous middle class necessary for the survival of a large urban service economy. As planned, the Urcean improvement economy system was also envisioned to make Cronan cities attractive to foreign capital due to their well-developed and easily travelable networks as well as amenity-filled inner cities. Additionally, improvement economy proponents generally believe that user fees generated from the infrastructure - particularly from Occidental investors and traffic related to their firms - will serve as critical "bridge funding" for the indigenous governments between the envisioned end of continued aid and large tax revenues from a future robust middle class.

In terms of urbanization and modernization, the results of the improvement economy have been promising. New Harren, which in many ways was the proving ground for the system in the years between the War of the Northern Confederation and Final War of the Deluge, has become one of the most economically prosperous countries on the Nysdra, as has Quetzenkel, the second country to receive such investments. In addition to the economic benefits, some have observed that the improvement economy as used in the Nysdra Sea area is a method by which Urcea creates a class of individuals in the region loyal to it and willing to support governments Urcea helped establish, thereby creating a virtuous circle of support and continued alliance. The reconstruction and standardization of all transportation networks to Levantine Union specifications have also fueled speculation that the projects have strategic benefit to the Urcean military as well.

The Urcean application of the improvement economy has been one of the largest ongoing expenses in Urcean history, exacerbated by the use of the Taler rather than by taking advantage of hypothetically beneficial exchange rates; accordingly, the program has engendered significant domestic opposition in the 2030s. Scaling down or ending the project has been called for by members of the National Pact. Implementing the improvement economy was one of the signature foreign policy decisions of the Livio Iarnán administration during his second term.