Political and Economic Forms

Syldavia is a socialist based country but that contains capitalist forms. It keeps the term "socialist" in its official form for historical reasons. The economy is a Social Market Economy type.

It may be resumed like this:
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The social market economy is a system of market economy rejecting both socialism and laissez-faire capitalism, combining private enterprise with government regulatory measures in an attempt to establish a fair competition, low inflation, low unemployment levels, a level of working conditions and social welfare.
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* The Social Market Economy contains the central elements of the free market economy such as private property, free foreign trade, exchange of goods and free formation of prices.
* Other elements shall diminish occurring problems of the free market economy. These elements, such as pension insurance, health care and unemployment insurance are part of the social security system. The payments to the social security system are mainly made by the labour force. In addition, there are provisions to restrain the free market (e.g. anti-trust code, laws against the abuse of market power etc.).
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After 1991, the dissolution of the USSR, the leaders of the new country of Syldavia were trying to find a strong and viable future for the country. They were greatly inspired by West Germany which appeared to maintain a balance between communism/socialism and capitalism politically and economically.

Considerable areas of the Syldavian Society are public. The National Research Centre is the only company offering services of medical and scientific research throughout the country. In the health field, the Law on Health Insurance, Insurance Work and the protection against medical errors are services offers to all the citizens of the country. Education is free at all levels but you must pay your books and school supplies. In aeronautics, the airline Avia Syldavia belongs to the state and offers flights around the world at very reasonable prices.