Chapter 980 Atlantic Economic Zone

East Africa also had a "westward movement" like the United States in the past, but as time went by, the connotation of the westward movement was also changing.

Originally, the westward movement was aimed at developing what is now the central region, including industrial areas such as the Bohemian Province (Zambia and Zimbabwe, southern Congo, etc.). However, after the South African War, the geographical west of East Africa has actually shifted to more western areas such as Angola, so this is the result of changes in the East African territory.

Ernst added: "Today, the western part of our country has changed from the central part before the South African War to the Ubangi River Basin, the Congo River Basin, Angola and the Southwest Province from the north, so the original western movement should also change with the development of the times."

"Southwest Province, formerly Southwest Africa, was incorporated into my country's territory relatively early, but it was not effectively developed in the past due to limited transportation conditions. The Ubangi River Basin was developed earlier, but has always been on the edge of my country's territory. The estuary of the Congo River Basin was also incorporated into the East African territory together with the Angola region, so among these regions, only Angola has the highest level of development."

"However, there is still a big gap between the Angolan region and the developed eastern and central regions, so in the next decade, the western region with Angola as the core will be the focus of national development."

"Our country has moved the capital from the first town on the eastern coast to the current Rhine City. So with Rhine City as the center, there are two important radiating lines, corresponding to the Indian Ocean and the Atlantic Ocean respectively. The economic development level of the Indian Ocean coast is higher than that of the Atlantic coast. This is unbalanced."

"So how to make the west catch up with the development level of the east in a short period of time is the key issue we should discuss. I think East Africa should form three major economic cores in the future, namely the Indian Ocean Economic Zone, which has already taken shape, the Central Economic Zone centered on Rhine City, and the Atlantic Economic Zone, which has not yet taken shape, three vertical economic development areas."

Among the three major vertical economic zones proposed by Ernst, the two ocean economic zones mainly rely on the advantages of maritime transportation, while the central zone relies on mineral resources and land transportation advantages.

At this time, Siwei Te said: "According to the request of His Highness, we are going to develop relevant advantageous industries in western regions such as Angola, and use national power and policies to significantly increase the local industrial level."

"This includes building a deep line of the Atlantic Coast Railway to break the poor traffic conditions in Angola and the Ubangi River Basin, the Congo River Basin, and the Southwest Province. This is a key project for Angola's future railway transportation."

The Atlantic Coast Railway has been built long ago, but it only covers the coastal areas of Angola. Now the East African government’s idea is to transform it into a major artery like the Indian Ocean Coast Railway that can connect the entire west.

"The technical difficulty lies in the fact that the extension line has to pass through two climate zones, tropical rainforest and tropical desert, and covers complex terrains such as mountains, plateaus, plains, hills, deserts, rainforests, grasslands, and rivers. This railway will also be the most difficult railway to build since the founding of our country in East Africa."

“Once the railway is completed, the route from Bangui to Kinshasa will no longer rely solely on water transport on the Ubangui River. Although the Ubangui River can reach Bangui directly, it cannot be unobstructed all year round due to the seasonal climate. The railway is a supplement to the shipping on the Ubangui River. At the same time, after the railway is completed, it will also be able to completely connect the two major railway arteries of the Northern Railway and the Atlantic Coast.”

"The same is true for the Southwest Province Railway Extension, which will connect the Atlantic Coast Railway and the Southern Railway Network, which is of great significance to the economic development of the West."

"Especially in the transportation of energy and minerals, although the west is also rich in minerals, it also needs the support of minerals in the south, especially the relatively scarce coal resources."

Angola is currently self-sufficient in iron ore, but it is far behind in coal mines. Therefore, the coal resources it needs need to be transported from southern East Africa before the mineral exploration work in the region is completed. In the past, the coal needed for Angola's industrial development had to be transferred through the central region via the central railway, which increased costs out of thin air.

Although East Africa, like Japan, a resource-poor country, also imports foreign mineral resources to develop its own industry, the difference is that East Africa's imported minerals account for a very small proportion of its own industrial development, and it mainly relies on resources in the central and eastern regions.

There is also a key issue here. In order to balance the accounts, many industrial products exported by East Africa to backward countries and regions are mainly exported through material exchanges with local countries in the absence of advantageous markets.

Many backward countries and regions, including some colonial areas, lack funds and purchasing power due to their backward economic levels.

In this case, they are naturally unable to consume more industrial products, so the East African government will directly engage in a "barter" trade situation based on local resource conditions, similar to the currency swap implemented by a certain major Eastern country in the past in order to bypass the US dollar.

Of course, East Africa has not yet developed to the level of a major power, and the times have not developed to this level. For example, the currency issuance rights and finance in many colonial regions are in the hands of the colonial powers. The locals have no autonomy and no conditions for direct and equal communication with East Africa, so barter is more acceptable to people.

For example, this is the case with trade between East Africa and India. Although India is a British colony, it also has its own subordinate governance system, mainly local princes and nobles and local British officials. East Africa bypassed interference from Britain by negotiating with these forces.

After all, it was impossible for East Africa to directly ask the Indian colonial government to accept the Rhine guilder. If this was discovered by the British mainland, it would be a big taboo. However, goods were much easier to handle. After all, the place of production might not be directly stated on the goods, and the price of goods was not fixed like currency.

One pound is one pound, but how much a pound of goods might sell for on the market is uncertain. This provides room for middlemen to make a profit from the price difference, and the Indian colonial government plays the role of a middleman.

Moreover, in general commercial activities, the purpose of merchants is to obtain more currency. It is very difficult for East Africa to directly take a penny from other countries and forces, but if it is something unimportant locally to exchange, it will be much easier.

For example, India has abundant coal resources, but as a colony, its own industry does not have much demand for coal. At this time, corrupt officials of the colonial government and local princes and nobles can use local coal to exchange goods with East Africa.

Although this approach is inefficient, has slow returns, and a long cycle, and is not as convenient as monetary settlement, it has allowed East African commodities to circulate successfully, thereby driving the development of local industries.

This works in East Africa. After all, as an economy dominated by state-owned enterprises, East Africa can redistribute and integrate resources at the national level, while commercial activities in general countries are mainly carried out through private enterprises.

Imagine a British rag merchant in the 19th century who sold his products in India. The return he wanted was obviously in pounds. If you asked him to bring back a pile of coal of equal value, then he would definitely be mentally unstable. After all, coal in the UK is abundant, well developed, and low cost. He would have to pay more for transportation costs, which further increased the risk, unless the coal was given away for free and he had a market in his home country.

Therefore, this form of trade is not impossible in other countries, but it must be done by people with strength. Even the European monopoly organizations have profit as their main goal and will not do what is done in East Africa. Money can certainly be made, but it is too much effort and not worth the effort.

Therefore, in addition to normal commercial trade activities, the development path of the East African government in the Atlantic Economic Zone will also focus on direct barter trade with backward countries and regions along the Atlantic coast. This is essentially a replication of East Africa's trade in the Indian Ocean.

For the East African governments, this is beneficial to the current economic development of East Africa. After all, as a late-developing country, East Africa does not have traditional business paths.

(End of this chapter)