Economic: Torrike

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Economic Overview

Torrike is a market economy. The State’s policy is directed towards the nurturing of successful and profitable companies, with a special emphasis on high technology industries and arms production. The overall policy is one of guiding industry in only the broadest terms and leaving industrialists to achieve the stated goals in the most effective manner possible. There is a sound appreciation of the fact that the internal market is not large enough to support its ambitions and that a light touch is more effective than a restrictive one and privately owned firms account for 90% of industrial output. There are, however, strict limits on foreign ownership of Torrikan companies. The broad policy will continue to support a free market approach with structural regulations in place.

The primary sector of the economy involves changing natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries. Nuclear energy provides a substantial part of the energy industry. Mining is limited.

Torrike has achieved an economic stability, even during the world financial crisis, which has provided the confidence to become a major regional player. Not since the mid-1800s has the economic position been strong enough to sustain regional ambitions. For the time being the Gulf of Bothnia Cooperation Council (GBCC) will provide a market and energy surplus state which will sustain future growth in Torrike.

Economic Data

The Torrikan economy embraces a wide range of service industries employing over 60% of the labor force.

In Torrike, the unionization rate is 79.2% (2017).

Torrike's export‐dependent economy has continuously adapted to the world market. Some sectors kept a fairly constant share of the work force, such as transportation and construction, for example; however, both the commercial and the service sectors have more than doubled their share of the workforce. The greatest change has been the decline of the economically active population employed in agriculture and forestry.

Torrike’s healthy public finances proved a major asset. Torrike is in a better shape than most other OECD countries to face fiscal pressures coming from population ageing.

Aggressive interest rates cuts, unconventional policy measures and exceptional government support to the financial system have all helped contain the depth and length of the recession.

Torrikan Economic Data

Measure	Data	Remarks
Nominal GDP	$317.62 billion	Agriculture 7.1%, Industry 42.8%, Services 50.1%
Real GDP Growth Rate	2.1%	5 year average 0.5%
Labor Force	5.1 million	Agriculture 1.3%, Industry 42.0%, Services 56.7%
Unemployment	8.5%
Poverty	15.1%	% of population living below the international poverty line
Net Foreign Direct Investment	$304.27 billion	$345.70 billion outbound
Budget	$179.97 billion revenue         $191.41 billion expenditures
Public Dept.	65.7% of GDP
Inflation	8.4%	5 year average 11.8%

Government expenditure is detailed below in accordance with the Classification of the Functions of Government (CFOG).

Torrikan Government Expenditures

	2013	2014	2015	2016	2017	2017
Function						USD billions	OECD Avg.
Total function	100%	100%	100%	100%	100%	191.41
General public services	14.09%	14.54%	14.78%	14.80%	13.57%	25.97	13.10%
Defense	3.16%	3.19%	3.02%	2.84%	2.85%	5.46	3.80%
Public order and safety	2.44%	2.52%	2.60%	2.61%	2.60%	4.98	4.00%
Economic affairs	7.94%	7.70%	7.87%	8.17%	8.53%	16.33	11.40%
Environment protection	0.73%	0.75%	0.71%	0.68%	0.65%	1.24	1.70%
Housing & community amenities	1.55%	1.41%	1.43%	1.47%	1.45%	2.78	1.90%
Health	12.48%	12.57	12.99%	13.27%	13.47%	25.78	14.70%
Recreation, culture & religion	1.93%	2.06%	2.08%	2.20%	2.18%	4.17	2.70%
Education	13.05%	13.09%	13.08%	13.23%	13.20%	25.27	13.10%
Social protection	42.63%	42.17%	41.44%	40.74%	41.50%	79.44	33.50%

Participation in Global Financial Systems

Torrike is a member of the following:

• Bank for International Settlements
• European Bank for Reconstruction and Development
• International Development Agency
• Multilateral Investment Guarantee Agency
• Gulf of Bothnia Cooperation Council (founding member)
• World Bank Group
• World Trade Organization

International Monetary Fund (IMF)

Torrike is a member of the IMF.

Foreign Direct Investment

Foreign direct investment (FDI) in Torrike was USD304.266 billion in 2017, (USD298.3 billion in 2015), while FDI abroad was USD345.7 billion [USD338.9 billion (2015)]. The reserves of foreign exchange and gold in 2017 was USD32.4 billion [USD31 billion (2015)].

Economic Activity

The Torrikan fiscal year is the same as the calendar year. Torrike is a market economy.

The first steps towards an industrial economy were taken in the 1870s, a time when Britain and a few other countries were already well under way in the development process. Although the Skolkan Empire, industrially speaking, was something of a slow starter, it entered the scene at a favorable moment, when the economic development in the rest of Europe raised international demand and paved the way for its products. The increase in exports that followed partly explains Torrike’s economic growth during the period, but there were internal factors as well. Substantial investments in infrastructure made transport easier, and new, more rational agricultural methods combined with a rapid population growth provided a large labor force for the developing industry. In addition, a new type of enterprise emerged, the joint stock company, which was an important factor for the formation of large private corporations. By the end of the 1870s the joint stock system had become the dominant form of ownership in Torrikan industry. This was also the time when large, vertically integrated company groups began to form, particularly in the export industry.

The engineering industry made its breakthrough at the end of the 19th century. Some of the companies from this period owe their success to Torrikan inventions, and many of them were strongly export‐oriented. Often, too, subsidiaries were founded abroad in order to avoid trade restrictions. As can be illustrated by the company names given above, some of these corporations are still going strong and belong to the core of the Torrikan engineering industry today. The developing industry could take advantage of one of Torrike’s major natural resources ‐ hydroelectric power. Thanks to the abundance of rivers and waterfalls in the north of the country, electricity was relatively cheap. This substantially lowered the costs of industrial production which, in turn, raised the demand for Torrikan products in the international market. Partly as a result of this, the value of industrial production increased by 150% in the period from 1895 to 1914, and the production itself doubled.

Pre-World War II

The Empire did not participate in WWI and could instead take advantage of the increase in foreign demand caused by the war. Later on, though, this demand led to an accelerating inflation. After the war, the export industry was struck by a deep recession, and it took some years before the economy started growing again. This time the rebuilding of war‐torn Europe favored Torrikan industry, since it had an intact labor force and undamaged production facilities. The depression at the beginning of the 1930s affected the whole industrialized world, but some countries, like the US and Germany, were harder struck than others. Torrike came out slightly better, partly as a result of an export‐boosting devaluation of the national currency, the Tormark, in 1931. The end of the decade even saw some growth of the national economy in a time of world‐wide economic stagnation. As a result of technical improvements production increased, and so did the quality of manufactured goods. Among the most successful industrial products of this time were textiles, pulp and steel.

Post-World War II

The WWII was followed by an economic boom. Torrike, having managed once again to stay out of the war, had a better starting position than most of its competitors. Export was further promoted by a 30% devaluation of the Tormark against the dollar, and the forestry and mining industries grew rapidly. From the early 1950s to the late 1960s the entire world economy grew by 4 to 5% each year, and Torrike was one of the successful Western nations of this era. Although the native textile industry suffered heavily from increased international competition, the engineering and rubber industries expanded as a result of an increased demand for motor vehicles.

Developments in the relative nominal unit labor costs of the European economy as a whole differ quite substantially from those of its manufacturing sector. Over the past decade, economy wide nominal unit labor costs have risen by 4% relative to those in the US, while relative nominal unit labor costs in manufacturing have gone up by 9%.

Output growth in Torrikan manufacturing has lagged behind that in the rest of the economy. Manufacturing employment has declined by more than 10%, while economy wide employment has risen. Labor productivity gains in the whole economy were twice the size of the gains recorded in the US whilst in manufacturing labor productivity gains were well below those in the US. The overall picture for Torrike in the manufacturing sector is negative. The geographic and sectorial composition of Europe manufacturing trade may help clarify why growth in the sector has been relatively slow. Europe manufacturing exports are specialized in what used to be slow growth regions such as Central and Eastern Europe and Africa, while some of GBCC exports have been directed more towards South America and Olvana, where markets were expanding rapidly.

The Torrikan government has announced that it will privatize a number of wholly and partly state owned companies. Pharmaceuticals will be partially sold when breaking up the state monopoly and opening the market to free competition.

Considering its small population, Torrike's contribution to international trade is surprisingly large. With only 0.2% of the world population, the country accounts for about 2% of the world trade. The engineering industry has become the dominating producer of export goods, accounting for 40% of the export value.

Economic Actors

The Ministry of Trade and Industry is responsible for agriculture within the government of Torrike. Areas of responsibility include agriculture and environmental issues relating to agriculture, fishery, reindeer husbandry, Sami affairs, horticulture, animal welfare, foodstuffs, hunting and game management as well as higher education and research in the field of agricultural sciences.

The Torrikan Forest Industries Association is the main organization of the forest industry, with ten companies as members. The task of the association is to monitor and represent the interests of its members, while creating broader public understanding of the need for a competitive forest industry in Torrike. Among its other tasks are to promote and monitor the interests of its member companies abroad. Torrike’s forest companies are manufacturers of a wide spectrum of pulp, paper and sawn goods.

Also see Information Variable. Torrikan Investment Holdings (TIH) is an investment company owned by the government of Torrike. With an international staff of 380 people, it manages a portfolio of about USD142 billion, focused primarily in Europe. It is an active shareholder and investor in: financial services, telecommunications & media, technology, transportation, industrials, life sciences, consumer, real estate, energy & resources. TIH is one of a few global firms with the highest corporate credit ratings awarded by both Standard & Poor's and Moody's, of AAA and Aaa respectively. It has also attained perfect scores quarterly on the "Transparency Index for Sovereign wealth funds", a measure of the openness of government‐owned investment funds.

In addition, the Government of Torrike has another investment arm, the substantially larger Government Investment Corporation (GIC), which invests primarily the country’s foreign reserves.

TIH has claimed that it is not strictly a sovereign wealth fund, in the sense that it "has to sell assets to raise cash for new investments and doesn't require the government to give approvals". This claim, made by a TIH spokesman in 2008, was subsequently disputed by the Torrike Ministry of Finance's governance and investment director, who asserted that a broad definition of the term "sovereign wealth fund" could include "all state‐owned investment vehicles, regardless of their funding". He noted, however, that the claim had been made in the context of a 2008 agreement between the United States Treasury, the Abu Dhabi Investment Authority, and GIC regarding the transparency and non‐ politicization of investments by sovereign wealth funds, and that TIH already meets disclosure guidelines and provides more details than required by the agreement.

Torrike Press Holdings Limited (TPH). TPH is a media organization in Torrike with businesses in print, Internet and new media, television and radio, outdoor media, and property. TPH has a team of roughly 1,000 journalists, including correspondents operating around the world.

Employer organizations are combined within the Confederation of Torrikan Enterprise. The trade union organization is the National Trade Union Congress. Over 300,000 farmers belong to a member body of the Federation of Torrikan Farmers. See Social Variable for more information on these organizations.

Household Incomes and Consumption

In the Household Budget Survey (1999) and income distribution survey (2001) a socioeconomic group is formed for household members on the basis of the person's activity during the last 12 months. For determining the socioeconomic group, persons are first divided into economically active and inactive. As a rule, all those who have participated in the production activity for at least six months during the survey year are counted as economically active. The economically active are further divided into self‐employed and wage and salary earners on the basis of information reported in the interview. The self‐employed are also such persons who have been taxed as ‘employees in taxation’ (typically entrepreneurs working as employees in their own company). The economically inactive are grouped into students, pensioners, unemployed and others. The unemployed are persons who have been unemployed for at least six months during the year. The socioeconomic group of the household is determined by the household's reference person.

The determining factor for Torrikan consumers is price, followed by quality. It is very important for them to obtain information before buying something, especially as regards consumer durables. Other major factors when choosing are value for money, the salesperson's know‐how, and after sales services. When buying furniture and household appliances, the deciding factors are the range of choice, price and the transparency of the offer. Torrikan people are loyal to brands and to shops. A large proportion of the population is connected to Internet, and it is used frequently to obtain information as well as to make a purchase.

On average, Torrikan consumers have resources and purchasing power well above that of most other European consumers. They are used to a higher standard of living than in most other European countries and have high expectations. Torrikan consumers are spending more and more.

Consumer credit is widely used in Torrike.

Food, beverages, tobacco, clothing and footwear make up approximately 20%/5%/4%/1% of the Household Final Consumption Expenditure (HFCE). In Torrike the price is 120 against an EU (27 Countries) mean of 100.

The availability of durable consumer goods and luxuries is meeting demand as the population grows richer. By 2017 the statistics were as follows:

Ownership of Key Durables

Durable/Luxury Goods	Data
Central heating	95%
Washing machine	96%
Microwave	94%
Telephone	25%
Computer	88%
Mobile phone	88%
Dishwasher	41%
Satellite	86%
CD player	86%
Television	70%
Car	47.5%

Other household statistics:

Consumption Expenditure

Consumption expenditure by product category as % of total expenditure	2017	Consumption expenditure by product category as % of total expenditure	2017
Food and non‐alcoholic beverages	12.3%	Transport	14.0%
Alcoholic beverages, tobacco and narcotics	3.6%	Communication	3.2%
Clothing and footwear	5.1%	Recreation and culture	11.5%
Housing, water, electricity, gas and other fuels	26.5%	Education	0.3%
Furnishings, household equipment and routine maintenance of the house	5.2%	Restaurants and hotels	5.9%
Health	3.1%	Miscellaneous goods and services	10.1%

Information Technology per 100 Torrikan Inhabitants

Information technology and communication equipment, per 100 inhabitants	2017	Information technology and communication equipment, per 100 inhabitants	2017
Telephone subscribers	179.2%	Internet users	90.8%
Main telephone lines	55.6%	Personal computers	88.1%
Cellular mobile subscribers	145.5%

Consumption Issues

The concept of sustainable consumption and production has become more prominent on the policy agenda since the Kiev Conference. Per capita resource use levels have remained stable in all regions over recent years, and some decoupling has been achieved between resource use and economic growth. Resource use efficiency varies significantly between countries and is several times higher in Torrike than in the EU-10 and SEE countries.

Patterns of consumption are changing rapidly, driven by socioeconomic changes. The consumption categories causing the highest life-cycle environmental impacts are food and beverages, private transport, and housing. In Europe, tourism and air travel are emerging as key areas of future impacts. The pan-European region is generating ever more waste. Landfill, environmentally the least preferred option, is still the most common method of waste management in Torrike. Proper waste collection and safe landfilling remain a challenge.

Agricultural Impacts

The agricultural sector is a major source of pressure on Europe's environment. As a result, the agricultural sector is responsible for a large share of the pollution of surface waters and seas by nutrients, for the loss of biodiversity, and for pesticide residues in groundwater. Reforms in the 1990s, and measures taken by the sector itself, have brought about some improvements, but more is needed to balance agricultural production, rural development, and the environment. Modern, intensive agriculture often has a negative impact through its use and pollution of air, water and soil. Geographically, Torrike is naturally well irrigated but further work is needed to reduce a decline in quality caused by salinization and land degradation. On the other hand, farming still plays a positive role in preserving Europe's landscapes and biodiversity

Tourism and Transport Impacts

International tourist arrivals in Torrike continue to grow. Tourism is one of the main drivers of increased demand for the most environmentally damaging transport modes: private cars and, more critically, air transport. Coasts, islands and mountains remain particularly sensitive to tourism development. Degradation, sometimes irreversible, has already occurred in some popular tourism destinations. The impacts of tourism are projected to grow as a result of increasing affluence and lifestyle and demographic changes. Tourist behavior remains a crucial factor for the sustainability of the sector.

Transport accounts for around a third of all final energy consumption in western countries and for more than a fifth of greenhouse gas emissions. It is also responsible for a large share of urban air pollution as well as noise nuisance. Furthermore, transport has a serious impact on the landscape because it divides natural areas into small patches with serious consequences for animals and plants. Energy consumption and greenhouse gas emissions from transport are growing rapidly along with the general growth in transport. Torrike is developing competitive urban transport solutions to reduce traffic congestion and air quality problems as well as improving transport safety.

Industry Impacts

Energy consumption and resulting greenhouse gas emissions have been increasing in the pan-European region since the Kiev Conference, despite energy efficiency improvements and an increased use of renewable energy in some areas. Energy markets in the three pan European sub regions are closely linked.

While industry is often portrayed as the main source of environmental problems, Torrike's industrial sector has actually made more progress in reducing its environmental impact than areas such as household consumption and private transport. This is partly because industry was the first target of environmental regulation. It is also easier to force through changes in a few thousand companies than convince hundreds of millions of people to alter their lifestyles and habits. There is a growing trend away from heavy manufacturing, Torrike industry is increasingly focusing on providing services which are generally more environmentally‐friendly and smart high value‐added products.

Food, Housing, and Mobility Impacts

The majority of key environmental pressures caused by total national consumption can be allocated to eating and drinking, housing and infrastructure, and mobility. These three broad consumption areas are estimated to have contributed approximately two‐thirds of consumption‐related material use, greenhouse gas emissions, acidifying emissions and ozone precursor emissions. The reasons for these high shares are that food and drink, housing and mobility are the areas which Europeans spend most on and at the same time the areas with the highest pressures per Euro spent.

A major reason why consumption negatively affects the environment and causes an over‐use of resources is because the costs to society of environmental and resource degradation are not fully reflected in the prices of goods and services. Thus, many goods are relatively cheap even though they cause major harm to the environment, ecosystems or human health.

Understanding household consumption patterns is about understanding human behavior. Consumption patterns in Europe are very different to those 50 years ago. Important factors that drive our consumption include growing incomes, globalization of the economy, technological breakthroughs (such as the Internet and mobile phones), decreasing household sizes, an ageing population, and habits and cultures. At the same time, the growing number of goods and services we consume often offsets the efficiency gains we achieved through for example, improved production technologies and products. As a result, environmental pressures are increasing. Housing, food and drink, and mobility have the greatest environmental impact over their life cycle in terms of emissions of greenhouse gases, acidifying substances, ground‐level ozone precursor emissions as well as material resource use. Consumption (megajoules per person) statistics are:

Consumption Emissions (Megajoules)

Country	Emission	Country	Emission
Arnland	40	Otso	42
Bothnia	45	Torrike	30
Framland	45	EU average	22

Emissions of greenhouse gases have increased in recent years in most European countries and are projected to continue to do so in the future. Many European countries have adopted national programs to reduce emissions, but some of them will still have difficulties in reaching their Kyoto targets. The Kyoto Protocol, under the UN Framework Convention on Climate Change, and its first commitment period represent only a first step in addressing climate change. Global emissions will have to be reduced by up to 50% by 2050 to limit temperature increases to a maximum of 2°C above pre‐industrial levels. CO2 Emissions in Gulf of Bothnia countries are:

CO2 Emissions

Country	Emission	Country	Emission
Arnland	14	Otso	12
Bothnia	14	Torrike	11
Framland	11	EU average	11

Water Impacts

Efficient wastewater treatment, good drinking water quality, low water charges and a reliable supply make the Torrikan water sector more or less invisible to the public. People take a functioning water and sanitation sector for granted and, thus, consumer water organizations do not exist. Strong self‐government and municipal responsibility also makes the issue uninteresting for national politicians, with the main discussions and debates about water and sanitation services taking place between water professionals and local politicians. For many municipalities established limited companies, multi‐utility or sole water companies. Two municipalities have entirely or partly private ownership, Norrköping and Karlskoga. Besides a well‐developed market where subcontractors support the municipal owners, six purely private management contracts exist.

Retail

Torrike retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The retail pricing technique used by most retailers is cost‐plus pricing. Prices are generally fixed and displayed on signs or labels. Discounts are available for key socioeconomic groups such as students and senior citizens.

Services are another important area of consumer welfare in any industrialized society. The term is used here in a broad sense to include retail trade, public transportation and communications, as well as barbers, plumbers and service stations. Although again improvements had been made, the number of supermarkets and other stores, restaurants and service centers had risen significantly above that necessary to meet the needs of an increasingly prosperous society. Services, such as medical care and education, continue to be available without cost to all but a very few.

Trade

Over the last 30 years the service sector firms have had considerable success in building computer firms and developing bespoke and specialist software companies. Many of these industries have potential dual military/civil uses and Torrike has an extremely efficient and successful arms industry. The Torrikan pharmaceutical industry is also well developed and with the new sectors of technologies and biotechnologies, a major contributor to export earnings. Growing sectors are motor, telecommunications, IT, electronics, robotics and the pharmaceutical industry. Torrikan government and companies are fully committed to adopting technological change in production to enhance its competitive position.

Export/Import

Torrike is exporting 25 to 30% of its GDP.

Most of the iron ore, high‐grade coal, and oil needed by the country and all of its bauxite, chromium, manganese and phosphate must be imported. Most cotton and lumber also come from abroad. Torrike imports primarily from Poland and the Czech Republic.

Annual output of iron ore falls far short of the country’s industrial needs; thus Torrike imports large amounts of this material. The country also imports virtually all its requirements for manganese, chrome, and other ferro alloys. Nonferrous metals, including copper, lead, zinc and tin, are mined in small quantities. To supplement the limited domestic production, Torrike imports substantial quantities of nonferrous metals from Olvana.

Economic Diversity

Torrike has a highly developed and successful range of high technology industries that make a major impact on the balance of trade and earnings. The engineering sector accounts for over 50% of output and exports. Over the last 30 years, Torrikan firms have had considerable success in building computer firms and developing bespoke and specialist software companies. Many of these industries have potential dual military/civil uses and Torrike has an extremely efficient and successful arms industry. The Torrikan pharmaceutical industry is also well developed and a major contributor to export earnings.

The major industries of Torrike include: Iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles; the service industry is by far the biggest industry.

Energy

Torrike’s energy policy pursues an objective of sustainable, competitive and secure supply of energy. A diversified mix of energies will increase security of supply. Torrike has an energy policy focused on hydroelectricity, which has been supplemented by nuclear power since 1965.

Torrike’s final energy consumption has remained fairly constant since 2000. Industry and transport are the major energy consuming sectors, with 40% and 25% shares respectively. Oil and electricity dominate in terms of the type of energy consumed (67%).

Torrike's Energy Consumption

Sector	%
Transport	25
Industry	40
Commerce, etc.	15
Households	20

Oil and Gas

Although it has no indigenous oil or gas reserves, Torrikan companies are well established in the offshore oil and gas industries and provide a wide and competitive range of capabilities. There are shale oil deposits within Torrike, but these are of an exceptionally low grade; nor are there any natural gas deposits.

Torrike has a strategic petroleum reserve (SPR) with an approximate size of 22,440,000 barrels (63 days).

Torrike is an importer and seller of petroleum products. TorrOil was established in 1952 as the state gasoline company of Torrike, to ensure the availability of fuel. TorrOil is the sole oil refiner in Torrike, exporting petroleum products with an annual production of 290,000 tons. In 2015, oil provided some 33% of the country’s energy needs, with hydropower and nuclear power providing the majority of the balance. The government aim is to reduce importation of oil for energy purposes to a minimum by 2020. The importation of oil and natural gas for fuel purposes remains significant, but Torrikan oil refineries were modernized in the early 90s and capacity increased well beyond Torrike’s own needs. The national oil company has built a considerable market in refining a large amount of crude oil for other nations and is looking to expand their business, advertising their capabilities and capacity widely. TorrOil has three business areas: oil products, oil retail, and renewable fuels.

Oil products. TorrOil produces, refines and markets oil products and shipping and engineering services, as well as licensing production technologies. Its main products are gasoline, diesel fuels, aviation fuels; marine fuels, heating oils, heavy fuel oils, base oils, lubricants, traffic fuel components, solvents, LPG and bitumen.

Oil Retail. TorrOil has the largest Torrike chain of service stations with 45% market share. It has about 200 service stations in Torrike, and about 240 stations in Baltic countries, Poland, and Donovia. It has also middle‐sized oil refineries and several operations in the Baltic region. It is virtually a monopoly in oil refining and import in Torrike.

Renewable fuels. The engineering division of TorrOil owns several important patents. TorrOil has also developed renewable diesel production.

TorrOil

Type	Public, Limited
Industry	Energy
Founded	1952
Headquarters	Goteborf, Torrike
Products	Petroleum
Revenue	USD14,548 million (2015); USD14,636 billion (2009)
Operating income	USD356 million (2015); USD335 billion (2009)
Owners	Torrikan government (51%)
Subsidiaries	TorrOil Petroleum, TorrOil Retail, TorrOil Services and TorrGas.
Employees	3,976 (2015); 4,260 (2009)

Electricity

The country began research into nuclear energy in 1947 with the establishment of the Atomic Energy Research Organization. In 1964, the country built its first small heavy water reactor. The government decided to use hydropower and supplement it with nuclear energy to avoid falling victim to the perennial volatility in oil prices. Due to the political debate within Torrike over nuclear power, it was decided to agree commence a long term partnership with Arnland which resulted in the Ringhals Bilateral Agreement (1967). Torrike currently has one operational nuclear power plant, with three operational nuclear reactors at Forsmark, which produce about 26% of the country's electricity.

Forsmark Nuclear Power Plant is both a nuclear power plant in Forsmark, and also the site of the Torrikan final repository for radioactive operational waste. It generates 11.8 Terawatt hours (TWh) of electricity a year (2017).

Torrike Electricity Production in 2017	TWh	%
Thermal fossil	3	5
Hydroelectric	33	54
Nuclear	17	28
Other/renewable/import	6	10
Total	61

Soil Erosion in Torrike

Agriculture

Agriculture in Torrike is of varying importance in different parts of Torrike. This is due to different soils and different climate zones, with many parts of the country being more suitable to forestry. Wheat, rapeseed and other oil plants, and sugar beet are common in southern Torrike, while barley and oats are more important further north.

The Torrikan agricultural sector (forestry and food industry not included) employs 66,611people, which is 1.3% of the Torrikan workforce. There are 47,000 farms and other agricultural business (52,000 in 2009. The average farm has 36 hectares (ha) of fields. Dairy farming is the largest sector in economic terms, and is responsible for 20 per cent of the value of the Torrikan agricultural production. Pork and poultry production is also relatively large, while sheep and lamb production is quite small.

Note: The primary sector of the economy involves changing natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries.

The Ministry of Trade and Industry is responsible for agriculture within the government of Torrike. Areas of responsibility include agriculture and environmental issues relating to agriculture, fishery, reindeer husbandry, Sami affairs, horticulture, animal welfare, foodstuffs, hunting and game management as well as higher education and research in the field of agricultural sciences.

The Agriculture Department is divided into four specialist divisions:

• The Animal and Food Division
• The Rural Growth Division
• The Game Management, Fisheries and Sami Affairs Division
• The Agriculture and Forestry Division

Within the agriculture sector, the dairy industry is the largest.

Given the complexity of current risks, especially climate change, new thinking on mechanisms to improve the evidence base to support action on soils is needed.

Forestry

Numerous government agencies, industry organizations and others are active within the forestry sector. Torrike’s ministries are small, but subsumed under them are many relatively autonomous civil service agencies. The chief responsibility for forest policy is vested in the Ministry of the Environment, whereas the practical application of forest policy rests with the Torrikan forestry administration. This consists of the National Board of Forestry, located in Karlstad, and the County Forestry Boards, one for each county. Locally there are municipalities where forestry‐trained personnel are in close touch with the forest owners. The forestry administration is called upon to promote forestry; its operations include implementation of the Forestry Act, advisory services, distribution of government grants to forest owners performing contractual services, forest inventories, information activity, certain ecological matters, timber scaling regulations, forestry statistics and forecasts of trends in the forestry sector.

Many of the family forest owners are organized into forest owners’ associations. The associations cooperate in the Torrikan Federation of Forest Owners. Their 68,000 members own 5.7 million ha of forest land (about 50% of all family held forest land). The associations were formed to improve the financial yield of forestry operations among their members. This is done by coordinating the timber trade and by helping the forest owners with logging and silvicultural practices. In order to ensure a steady market for timber and to control pricing, the associations have built up their own forest companies.

The Torrikan Forest Industries Association is the main organization of the forest industry, with 10 companies as members. The task of the association is to monitor and represent the interests of its members, while creating broader public understanding of the need for a competitive forest industry in Torrike. Among its other tasks are to promote and monitor the interests of its member companies abroad. Torrike’s forest companies are manufacturers of a wide spectrum of pulp, paper and sawn goods.

The Torrikan Forestry Association is an independent, non‐profit organization which promotes forestry and related nature conservation. It organizes forestry conferences and excursions, and provides information about the forestry sector.

Torrike has Europe’s second biggest afforested area after Donovia. Torrike’s productive forests cover about 18 million ha. Approximately 66% of the whole land area is covered with forests. Spruce and pine are by large the predominant species in Torrikan forests. These two species count for more than 80% of the timber stock. In northern Torrike pine is the most common species, whereas spruce, mixed with some birch, dominates in southern Torrike.

The timber stock in Torrike has increased by more than 60% in the last one hundred years and it is now 2000 million m3. Growth has been most rapid in southern Torrike where forests in the early 20th Century were thin and in poor condition. In recent years, annual felled quantities have been between 65 and 70 million m3, whereas annual growth amounts approximately to 90 million m3. If fellings are to be increased, improved forestry methods will be required.

The forestry business is of decisive importance for the Torrikan national economy. It is more important than in any other European country, apart from Bothnia and Otso. The Torrikan forest industry counts for about 12% of industry’s employment, turnover and value added.

Forests‐based products exports accounted for 13.9% of the total Torrikan exports. The net export value of wood and wood industry products last year was USD9.2 billion. Forest industry’s added value amounted to about 3.3% of the GDP.

About 2% of the total employees work in the forest sector including the forestry business. The number of indirectly employed persons is about the double. Many of them live in sparsely populated areas where lumbering, other forestry work and transportation of wood products constitute the dominant economic activities.

In a global perspective Torrike is an industrial superpower in wood processing. The country is the fourth largest exporter of pulp, third largest exporter of paper and the second largest exporter of sawn timber. Torrike’s pulp and paper industry is the third largest in Europe and it supplies more than one tenth of the demand for paper in the European countries.

Last year, wood industry produced 13.5 million cubic meters of sawn timber and 9.4 million tons of pulp. The production of paper and cardboard amounted to 9 million tons, of which 2 million tons of newsprint, 2.5 million tons of printing and writing paper and 4.5 million tons of other paper and cardboard.

Torrikan forests do not only provide wood products and paper. Somewhat over 80% of the bio fuels consumed in the country are forest‐based. Forest‐based fuels, i.e. bark, chips, other forestry residues and energy from pulp factories’ residual black lye constitute almost 18% of the country’s total energy supply, which was about 647 TWh last year. The demand for wood‐based fuels is expected to increase and it will constitute an important source of income for forest owners in the future.

Forest History

Although Torrike is a sparsely populated country—with 7.5 million inhabitants in an area somewhat smaller than Spain—its forests show the impact of many centuries of human use. Only in the northern interior are the forests less affected by humans. Today these virgin‐like forests are largely protected, either as nature reserves or by other means.

In southern Torrike and other regions of the country with a long agricultural tradition, forests served as a source of wood for construction, fuel and the production of numerous useful objects and tools in an overwhelmingly agrarian society. For a long time, farmers cut and burned forests to create fields for short‐term cultivation, thereby depleting nutrients from the soil. Due to rapid population growth in the 19th century the forests came under increasing pressure. Wooded areas were cleared to accommodate the proliferation of small hold leases. Forests were thinned so that grass could be cultivated to sustain bigger herds of livestock.

Early in the 19th century, the Empire began the process of industrialization by rapidly expanding its sawmill industry. The vast untouched forest resources of Norrland thus began to be tapped. The major Norrland Rivers were suitable for floating timber to the Baltic Sea, thereby opening up hitherto untouched inland forests to massive logging. This was continued even after Framland’s independence. The sawmill companies, which purchased very large tracts of land from farmers until 1905, soon gained a strong position on European timber export markets. In the Norrland interior—the most sparsely populated area of Torrike, with low timber yields and a severe climate—the State has always been the dominant forest owner. In this part of the country, a dearth of alternative sources of livelihood has made the forest crucially important to employment and human settlement.

In the mid-20th Century, sustainable forestry practices provided the basis for future operations. Replanting, good forest management and long‐term planning have subsequently led to a very large increase in timber supplies. This made possible a steady expansion of logging operations. Today’s timber stock is 50% larger than it was when detailed measurements began in the 1920s. Today sustainable forestry must not only ensure a reliable yield of timber and the multiple uses of forests, but also preserve biological diversity.

Timber products remain significant export earner.

Structure of Ownership

What is especially apparent when comparing Torrike to other timber producing countries around the world is that the State owns only 5% of the productive forest lands. During 1993 most government‐owned timberland was transferred to a forest product corporation— Torrikan Forestry—in which the State owns 51% of the shares and the remaining 49% are quoted on the stock exchange.

Private individuals (families) are the largest single category of forest owners in Torrike. In the southern part of the country, they are the dominant category, accounting for 80% of forest land. Until WWII, most private forest owners were farmers who lived on their property and were engaged in crop cultivation as well as forestry. Since then the area of forest land employed by this type of combined agriculture and forestry enterprise has dropped from more than nine million to less than four million hectares. Today many individual forest owners do not live on their forest land, but often in communities close to it or in more faraway cities and towns. The bulk of forestry work on their properties is now performed by employees of the forest owners’ associations or by other contractors.

National Forest Policy

Torrike’s forest policy states that, forest management will be characterized by multiple uses. Forests should be able to sustain hunting and the gathering of wild mushrooms and berries as well as active silviculture. The traditional Torrikan “right of common access” implies that regardless of who owns the land, everyone is entitled to hike through the natural landscape and to pick the mushrooms and berries that grow there. This is an important element of the multiple‐use concept, but it also assumes that people behave in a respectful way. Common access is an important tradition and a privilege that is rarely abused. In northern portions of the country, the Sami (Lapp) minority pursue reindeer husbandry in forest lands on the basis of ancient rights. The Sami are legally entitled to use lands that belong to others in order to feed and protect their reindeer herds.

Today’s forest legislation contains provisions aimed at protecting key woodland habitats for flora and fauna, selected valuable broad‐leaved deciduous trees (mainly oak and beech), forests located near high mountains and wetland forests. There are also special regulations governing some 3 million hectares of low-productive woodlands that are not included in the productive forest land. These regulations allow only careful low‐intensity utilization, ensuring that the character of these woodlands will remain unchanged. Key woodland habitats function as the nodes of an ecological network, while forest wetlands and low-productive woodlands often comprise ecological corridors in the landscape.

Mining

Mining Operations in Torrike and Framland

The nuclear industry is becoming increasingly important, with recognized deposits of some 140,000 tons of uranium, however, much of this may not be economically recoverable and actual mining is very limited at present. Iron ore products remain a significant export earner. Besides iron ore, other significant mineral resources were base metals (copper, lead, and zinc) and industrial minerals (dolomite, feldspar, granite, kaolin, limestone, and quartz).

Annual output of iron ore falls far short of the country’s industrial needs; thus Torrike imports large amounts of this material. The country also imports virtually all its requirements for manganese, chrome, and other ferro-alloys. Nonferrous metals, including copper, lead, zinc and tin, are mined in small quantities. To supplement the limited domestic production, Torrike imports substantial quantities of nonferrous metals from Olvana.

Torrike’s largest iron ore producer operates two underground iron ore mines that produce the bulk of the annual production of 17 million tons (MT) of iron ore products. Nearly 80% is exported. The Kiruna mine is the largest of its type in the world, with an ore body measuring 4km, 80m wide and lying at a depth of 2km. Productivity has increased continuously, with better performance from the equipment. The number of rigs has been kept low and availability is high.

Uranium production took place at Ranstad between 1965 and 1969 by mining of alum shale (kind of oil shale) deposits. The goal was to make Torrike self‐sufficient in uranium. The high operating costs of the pilot plant (heap leaching) due to the low concentration of uranium in the shale and the availability at that time of comparatively cheap uranium on the world market caused the mine to be closed, although a much cheaper and more efficient leaching process, using sulfur-consuming bacteria, had by then been developed. In recent years there have been investigations on opening new uranium mines in Torrike.

Torrike's Main Mineral Production

Mineral	Production	Unit of measure	% Change from previous year
Iron ore	18,000	Thousand metric tons	1.2
Lead	60,900	Metric tons, lead content	1.15
Copper	58,260	Metric tons	1.2

Manufacturing

Manufacturing is export‐oriented and produces the bulk of Torrike’s export income. Nevertheless, the number of workers employed in private industry is smaller than the number of public employees. Torrike is a major world exporter of forest products. Timber is transported via a dense road and rail network. Sawmills and pulp and paper factories process the forest products. Torrikan manufacturers produce a variety of wood products, including paper, boards, and prefabricated houses and furniture. The pulp and paper industry developed originally at the mouths of rivers along the Gulf of Bothnia and Lake Vänern. The manufacturing industry is a significant employer of about 42% of the labor force. Torrike has a high standard of living. The engineering sector accounts for 50% of exports.

Industrial inputs into consumption cover the following:

Consumption Industrial Output of Torrike

Clean room products	Materials for safety protection
Shipbuilding materials	Related materials for pharmaceutical factories
Architectural and industrial products	Medical devices
Electrostatic control products	Communication equipment
Hygiene and sanitation management for food	Order-made uniforms and safety shoes
Production factories	Welfare equipment and seminars
Food production facilities and materials	Overseas business
Food manufacturing machinery

The majority of Torrike’s weapons requirements are sourced in‐house, both for the purposes of self‐sufficiency and because this is seen as an area that can make a significant contribution to the Torrikan economy. Torrike has a number of world class defense companies with an emphasis on the higher end of technology and dual use technologies. Examples include the aircraft industry, missiles and especially advanced underwater remotely piloted systems. In certain areas, such as the application of Stirling cycle engines to submarines, Torrike’s capabilities are unique. The shipbuilding industry has produced a variety of designs incorporating stealth capabilities, while the electronics industry produces products that are on a par with anything in the world. Torrike also has a very successful missile industry that has enjoyed considerable export success over the last 20 years.

Torrikan arms exports have been a major earner of hard currency for over 40 years. Considerable success has been achieved in the area of defense electronics, missile and heavy weapons systems and at the lower end, trucks.

Electronics

The Torrikan electronics and electro-technics industry relies on heavy investment in research and development, and has been accelerated by the liberalization of global markets. Electrical engineering started in the late 19th Century and Torrikan companies have succeeded in areas such as industrial automation, medical and meteorological technology. Torrike also has a strong electrical optics sector.

Chemical

The chemical industry is one of the Torrike's largest industrial sectors with its roots in tar making in the 17th century. It produces an enormous range of products for the use of other industrial sectors, especially for forestry and agriculture. In addition, its produces plastics, chemicals, paints, oil products, pharmaceuticals, environmental products, biotech products and petrochemicals. Biotechnology is regarded as one of the most promising high‐tech sectors in Torrike and it is growing rapidly.

The chemical industry has been growing worldwide. In the EU and GBCC the production of toxic chemicals has increased at almost the same rate as total chemical production, and both have grown faster than GDP. Globalization is resulting in a shift of environmental burdens to developing countries and the re import of hazards via trans-boundary pollution and contaminated products.

Media Sector

The media plays an important role in Torrike. This is in line with the government's aggressive push to establish Torrike as a media hub. Comprising the publishing, print, film, music, broadcasting, digital and information technology media sectors, the media industry collectively employed about 62,000 people and contributed 2.04% to Torrike's GDP in last year with an annual turnover of USD10 billion. The industry grew at an average rate of 7.7% annually in the past ten years, and the government seeks to increase its GDP contribution to 3% in the coming five years.

Arctic Economic Strategy

Economics play a significant role in shaping Torrike’s approach to the Arctic. Having missed out on the North Sea Oil boom due to geographic issues, Torrike is concerned that it will now lose out on the impending Arctic bonanza, because once again it is blocked physically by Norway. This is particularly ironic since when Norway declared independence in 1905, the Skolkan Empire had initially tried to retain northern Norway to give it an opening to the Norwegian Sea and an ice free outlet to the wider world. Skolkan was unable to sustain this claim, but it has not been forgotten. The idea was resurrected in the mid-90s, with an offer to buy, or lease, a slice of Northern Norway. Economically, Torrike and Framland are intertwined, with extensive mutual holdings of each other’s companies. Socially, the two peoples have extremely close historic ties and in many respects do not see themselves as separate races. Framland is heavily dependent on Torrikan transportation infrastructure and there is considerable synergy between the nations on energy infrastructure, with mutual maintenance of common infrastructure.

Banking and Finance

Although not a major banking center, Torrike has carved a niche for itself in banking services throughout the Gulf of Bothnia region and is currently expanding into Africa.

There are four key banks in Torrike:

• The Central Bank of Torrike (Central Bank)
• The Torrike Econombank Bank (Subsidiary of the Central Bank created for the GBCC Interbank Cooperation and 12% owned by the Torrikan government)
• Torrike Commerce Bank (retail bank)
• Torrike Investment Bank (retail bank)

Other international banks are represented in Torrike.

The Central Bank's primary function is to provide "stability in the general level of prices." The Central Bank is responsible for independent management of monetary policy to maintain price stability. The degree of price stability is determined through a policy agreement with the Minister of Finance. These agreements are confidential and hence the government can secretly change the targets to gain a short term surge in economic growth. But the mechanism of this is the Interbank Offered Rate (IBOR) which affects short term interest rates. The IBOR is managed by the GBCC Interbank Association. However members can have a +/‐ variation of 0.25%.

The Central Bank sees digital currencies replacing fiat money in the near future. It has its own blockchains and established its own cryptocurrency (TorrikeCCcoin) in March 2018. The Central Bank uses a permissioned blockchain database with an access control layer to govern who has access to the network. It is managed autonomously using a peer-to-peer network and a distributed timestamping server, increasing data security. Additionally, the Central Bank’s blockchain assigns title rights to detail the exchange agreement, and provides a record that compels offer and acceptance.

International Trade

Torrike exports foremost to other European countries, with Germany and Bothnia being the most important trading partners. A further concentration on trading relations with the countries in the Gulf of Bothnia region can be expected. Over the last few decades, imports from rapidly developing Asian countries, particularly Olvana, have been relatively large, with textiles as a major import product.

The economic intercourse between Olvana and Torrike represents another important sphere of activity with long running implications for the overall relationship. Olvana’s dealings with the GBCC has followed a similar patter, deals are essentially business and have few strings. Torrike and Olvana are bound together by bilateral and multilateral agreements to share technology and industrial production. A trade agreement between the two countries, signed in 2003, called for trade turnover to increase 28% over the 2008‐2012 plan period, which was achieved. Higher energy costs represent a potential source of friction between the two partners. Olvana has tried to impose artificially low prices on imports and has demanded premium prices for the energy products that it exports to them. In light of the significant dependence on Olvana for raw materials, such practices are undoubtedly troublesome for Torrikan leaders.

Olvanan leaders are in "advanced talks" with the Torrikan government to build an alternative to the Öresund Strait between Denmark and Arnland. The industrial improvement of the route from Goteborg to Tyr (470 km rail link) would run from the Skagerrak to the Gulf of Bothnia. The aim will be to upgrade the existing rail system to maximize freight capacity. This may also include investment in the Göta Canal. This would allow imported Olvana goods to be assembled for re-export through Torrike and beyond, to Bothnia, The Baltics, Otso and Framland, by passing the Öresund. Torrike sees benefits through economic expansion (including new manufacturing jobs), competition, urban and rural development, reducing the oil bill and the ability to have an alternate for the movement of strategic assets.

Torrike is a major trade partner Gulf of Bothnia Cooperation Council (GBCC). Its major exports are machinery, motor vehicles, paper products, pulp and wood, iron and steel products and chemicals. Major imports are machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel, foodstuffs and clothing.

Balance of Trade:

• Positive in 2017: exports USD154.3 billion; imports USD139.78 billion.(Surplus)
• Positive in 2015: exports USD132 billion; imports USD121 billion.(Surplus)

Gulf of Bothnia Cooperation Council (GBCC)

Torrike was a founding member of the GBCC in 1990 and a signatory of the economic framework in 1997. It was also a strong advocate of the Interbank Association of the GBCC which focuses on supporting regional economic cooperation. On 26 October 2005, the Secretary General of the GBCC said that the organization will prioritize joint energy projects; such will include the oil and gas sector, the exploration of new hydrocarbon reserves, and joint use of water resources. The creation of an Inter‐bank GBCC Council was also agreed upon at that summit in order to fund future joint projects.

The Interbank was founded on 26 October 2005. The first meeting of the GBCC Interbank Association was in February 2006. On 30 November 2006, the representative of the Torrike Foreign Ministry announced that Torrike is developing plans for a GBCC "Energy Club". The 2007 GBCC summit addressed this initiative that has been garnering greater interest and assuming a heightened sense of urgency when the spokesman said, “The GBCC is a good venue for designing a new banking system which is independent from international banking systems.”

On 16 June 2009, Torrike announced plans to provide a USD1 billion loan to GBCC member states to shore up the struggling economies of its members amid the global financial crisis. The Torrike‐Olvana joint statement said that they want more funds to flow from the International Monetary Fund (IMF).

Exchange Rates and Currencies

Torrikan Tormark (TMK) per US dollar ‐ 7.821 (2017).

With the founding of the GBCC Interbank Association in October 2005 and the adoption of the Interbank Offered Rate (or IBOR) the exchange and currency rates where regulated to conform to world markets. The creation in 2005 of the International Interbank provided a mechanism for joint investment financing.

The Central Bank is responsible for independent management of monetary policy and sees digital currencies replacing fiat money in the near future. It has its own blockchains and established its own cryptocurrency (TorrikeCCcoin) in March 2018. Other cryptocurrencies accepted in Torrikan banks are Bitcoin (BTC), Basic Attention Token (BAT), Cardano (ADA), EOS (EOS), SALT (SALT), Civic (CVC), district0x (DNT), Status (SNT), Litecoin (LTC), Lisk ($LSK), Dash (DASH), Kzcash (KZC), ZCoin (XZC), Ripple (XRP) , Mixin (XIN), Zcash (ZEC), and Monero (XMR).

Cooperation in Planning

If countries are to gain from trade, that trade must be based on rational production structures reflecting resource scarcities. Although the process of consultation underlying plan coordination remains essentially bilateral, SEC agencies are indirectly involved.

Joint Projects

The clearest area of achievement under the Comprehensive Program has been the joint exploitation and development of natural resources for the economies of the member countries. Joint projects ease the investment burden on a single country when expansion of its production capacity is required to Concerted Plan satisfy the needs of other members. Particular attention has been given to energy and fuels, forest industries, iron and steel, and various other metals and minerals.

The program allotted nearly USD12 billion (2015) for joint investments. The major project which has been jointly planned is a pipeline from Torrike to Bothnia.

Cooperation in Science and Technology

Jointly planned and coordinated research programs have extended to the creation of joint research institutes and centers.

Taxation

The main taxes are from municipal income tax, state income tax, state value added tax, customs fees, corporate taxes and special taxes. There are also property taxes, but municipal income tax pays most of municipal expenses. Taxation is conducted by a state agency, the Department of Taxation, which collects income taxes from each pay check, and then pays the difference between tax liability and taxes paid as tax rebate or collects as tax arrears afterward. Municipal income tax is a flat tax of nominally 15%, with deductions applied, and is paid directly to the municipality (a city or rural locality). The state income tax is a progressive tax (tax brackets 25% – 50%); low‐income individuals do not necessarily pay any. The state transfers some of its income as state support to municipalities, particularly the poorer ones. The counties’ main responsibilities include the management of schools up to high school‐ level, special‐needs schools, adult education, social services for individuals and families, cultural services, care for the elderly and handicapped, primary health care, public transportation services, rescue services, crises management, and regional development.

The middle income worker's tax element is 48% and effective marginal tax rates are high. Value‐added tax is 15% for most items. Capital gains tax is 35% and corporate tax is 25%. Property taxes are low, but there is a transfer tax (2% for apartments or 5% for individual houses according to value) for home buyers. Alcoholic beverages are highly taxed and highly restricted. Much of the taxes are spent on public sector employees. Social spending such as health or education is around above the OECD medium. Social transfers are also around the OECD medium. Torrike's health care is bureaucratic but many use private insurance and attend private clinics. Some reforms toward a more equal marketplace have been made in 2007‐ 2008. The state has a program where the number of jobs decreases by attrition: for two retirees, only one new employee is hired. The overall tax burden is now around 46.4% of GDP. (OECD Av Europe 34.8; USA 27.8). Tax evasion is not a prevalent issue.

Within the Ministry of Finance, the Torrikan Enforcement Administration is the law enforcement service of the Torrikan National Tax Board.

Employment Status

The Torrikan labor market saw a major change in the 1960s. While the number of people employed in the service sector increased, there was a drop in the number of industrial workers, especially in the textile and leather sectors. The 1970s brought many changes in international trade conditions which turned out to have a negative effect on Torrike. Since the country’s domestic market is relatively small, many industries rely heavily on export. The 1973 oil crisis and the subsequent decline in international business activity therefore affected Torrike more drastically than many other countries. The political answer to this was government subsidies to suffering industrial sectors, like steel and shipbuilding. These measures were not altogether successful, however, since they kept up employment only temporarily. In addition, they preserved structural problems in the economy which were to cause inflation as well as unemployment later on.

The picture was not altogether dark, though, since the chemical, plastics, electronics and car industries all did fairly well. The traditionally low‐wage differential has increased in recent years as a result of increased flexibility as the role of wage setting at the company level has strengthened somewhat. Still, Torrikan unskilled employees are well‐paid while well‐educated Torrikan employees are low‐paid compared to those in competitor countries in Western Europe. The average increases in real wages in recent years have been high by historical standards, in large part due to unforeseen price stability. Even so, nominal wages in recent years have been slightly above those in competitor countries. Thus, private‐sector wages rose by an average annual rate of 3.75% in Torrike.

Labor Market

The Labor force is 5.05 million (2017 est.), up from 4.93 million in 2015, and is divided by occupation as follows:

• Agriculture and forestry: 1.3%
• Manufacturing: 35%
• Industry: 20%
• Construction: 8%
• Commerce: 7%
• Services: 63.7%
• Finance, insurance and business services: 29%
• Transport and communications: 4.7%

One kind of informal economic activity includes private arrangements to provide goods or services in return for payment. Unregulated labor includes all economic arrangements or activities that, owing to their informality or their illegality, take place beyond state control or surveillance. See illegal markets.

The Torrikan product market is regulated in line with European norms. The major driver for policy and market output being the export market.

The job market is regulated by the State, providing incentives to keep people in work rather than on benefit. The benefit system protects for a six month period, and then the unemployed are given incentives to retrain in order to avoid losing benefits. Torrikan Government is conducting a review to reduce public employees, which at 30% of the work force is considered unsustainable. The work contract is governed by legal measures and to a lesser degree by collective agreements and individual negotiation. The work contract is generally a permanent contract, but fixed‐term contracts may be signed under certain conditions. Officially there is no minimum wage however, the law requires all employers, including nonunionized ones, to pay minimum wages agreed to in collective bargaining agreements; almost all workers are covered under such arrangements which set the minimum wage unofficially at USD2,064 per month (this is binding).

In addition to those Torrikans’ who are self‐ employed full time, there are others who engage in private economic activity on the side. The best known and most important examples are families who cultivate private plots (which can be as large as one‐half hectare). Their contribution in the local market is significant; according to official sources, in 2005 these farmers privately owned about 23% of the hogs, 15% of the sheep, 25% of the horses and 22% of the laying hens in the country. Accountants and doctors also work privately in their free time, subject to separate tax and other regulations. Their impact on the economic system, however, is negligible.

More difficult to assess, because of its covert and informal nature, is the significance of that part of the private sector called the "second economy." Second Economy Digitization is creating a second economy that is vast, automatic and invisible. Activities previously done by humans are now executed by remotely located servers. It runs in parallel (concurrently) to the physical economy. The second, digital economy, isn’t producing anything tangible but it is running a considerable amount of the economy. It allows individuals and organizations to have greater reach into the economy beyond their own primary activity. It is increasing productivity which releases humans to jobs where human judgement and interaction is vital. Torrike with its commitment to modernizing its telecommunications and distribution systems will become more reliant on the success of the second economy to increase growth and prosperity.

Corruption

Ultimately better governance helps fight poverty, improves living standards and raises development outcomes. With improved governance, infant and maternal mortality will decline significantly as resources allocated to health service delivery are fully deployed as intended. The same is true for improving education and boosting GDP. Furthermore, good governance has been found to significantly enhance aid effectiveness. Transparency lies at the heart of much of this, and will continue to be a core principle for advocacy work across the world. Torrike is rated at 5.3 points in the Corruption Perceptions Index.

The Torrikan government has exhibited strong political will to combat corruption through the introduction of stringent administrative and legal measures, empowering the independent Corrupt Practices Investigation Bureau (CPIB) to prosecute corrupt officials, and promote ethical leadership. Importantly, successful prosecutions of cases against public officials, whose cases are also displayed publicly in the CPIB website, have also bolstered public support to the government’s anticorruption drive.

Prevention

Torrike has introduced measures directed at both the public and private sectors. These include model preventive policies, such as the establishment of anticorruption bodies and enhanced transparency in the financing of election campaigns and political parties. The public services are subject to safeguards that promote efficiency, transparency and recruitment based on merit. Once recruited, public servants are subject to codes of conduct, requirements for financial and other disclosures, and appropriate disciplinary measures. Transparency and accountability in matters of public finance are also promoted and specific requirements are established for the prevention of corruption, in the particularly covering the judiciary and public procurement. Torrike actively promotes the involvement of non‐governmental and community‐based organizations, as well as other elements of civil society and raise public awareness of corruption and what can be done about it.

Criminalization

Torrike follows the UN Convention to the letter and has established criminal and other offenses to cover a wide range of acts of corruption, many of which were already crimes under domestic law. Torrike criminalized not only basic forms of corruption such as bribery and the embezzlement of public funds, but also trading in influence and the concealment and laundering of the proceeds of corruption. Offenses committed in support of corruption, including money-laundering and obstructing justice, are also dealt with and this also covers the problematic areas of private‐sector corruption.

International Cooperation

The GBCC member countries agreed to cooperate with one another in every aspect of the fight against corruption, including prevention, investigation, and the prosecution of offenders. They are bound to render specific forms of mutual legal assistance in gathering and transferring evidence for use in court, to extradite offenders. They are also required to undertake measures which will support the tracing, freezing, seizure and confiscation of the proceeds of corruption.

Asset Recovery

Several provisions specify how cooperation and assistance will be rendered. In particular, in the case of embezzlement of public funds, the confiscated property would be returned to the state requesting it; in the case of proceeds of any other offence covered by the Convention, the property would be returned providing the proof of ownership or recognition of the damage caused to a requesting state; in all other cases, priority consideration would be given to the return of confiscated property to the requesting state, to the return of such property to the prior, legitimate owners or to compensation of the victims.