The AlorianThe Alorian is one of Aloria's oldest and most respected Alorian-language online news platforms. Aloria makes timid economic recovery November 5348
The Alorian economy has been in a dire state as a result of decades of mismanagement and neglect, plunging living standards and grinding economic activity to a halt. This is a situation that the liberal PRR / FDP government has vowed to remedy since its establishment. After six years in power, the government can celebrate moderate success in this regard, though its promised "Aurorian miracle" is far from becoming a reality. Instead we have seen moderate economic growth and an increase in foreign direct investments, which has led to rising standards of living, but this growth has been unequal and may not be sustainable in the long run, and inequality has also augmented.
Aloria's growth has been spurred by the implementation of a number of economic reforms that simplify the tax code and deregulate the economy, also coupled with a reduction in welfare spending and the privatization of most state-owned enterprises. The adoption of a flat tax of 23%, including the income tax, corporate tax, essential goods and luxury goods tax, has partially been responsible for the moderate growth, though critics argue it is a form of regressive taxation and also blame it for the rise in inequality. A further possible cause behind Aloria's economic recovery is the establishment of the
LuKuDuAl Union, a free trade area and military alliance grouping together Artania's emerging economies and adhered to, besides Aloria, by Luthori, Kundrati, and Dundorf. These four nations have similar levels of economic development and military power, and the hope is that the Union will allow them to pool together their resources in order to enhance their economic and military status without too much dependence on any great power.
Regarding economic independence the Alorian government has also been keen to reduce Aloria's dependence on foreign oil and gas. Aloria benefits from a complex and large
river system that includes the large Crentol River and its Delta. A number of hydroelectric dams already exist benefiting from this system, and the government has pledged to increase the amount of energy generated via hydroelectric power. Roughly 20% of Aloria's energy is currently generated this way, and the PRR / FDP government aims to increase that number to 30% within ten years.
Although Aloria has experienced an economic recovery and its economy is on an upward swing, this may be more the result of the establishment of an active government than any specific policies it has taken. The latter have had mixed results, with some critics praising the flat tax and deregulatory reforms as responsible for economic growth, while others have criticized the growing inequality and precarization of work that these policies have resulted in. But for now, enjoying an unchallenged monopoly on power, the PRR / FDP has no reason to change course, meaning that its reforms are likely to continue.