Chapter 579 East African Model
"Also, immigration is still mainly concentrated in the inland Matabele Province, so we cannot change the general direction, especially the immigration from the eastern region is still too much compared to other regions."
Ernst said this, but in reality the population in the eastern region is not that large. Even if the arid areas of Somalia and Kenya are removed, there are nearly two million square kilometers of land in the east. With a population of less than 20 million, this number seems very thin.
"Matabele is an industrial province, so the demand for industrial workers is quite strong. However, because Matabele is located in the interior, the population is relatively small, and the current immigration market is not good. Therefore, the government should take the initiative in job allocation and try to achieve the radiation and diffusion of East African population from the east to the interior and other regions."
A big government is more convenient in this regard. The East African government controls national resources and uses these resource advantages to dispatch citizens. This is very similar to the former Soviet Union, which set up jobs in Siberia so that people have to go there even if they don't want to.
As a province that focuses on industrial and agricultural development in East Africa, Matabele Province has the most employment opportunities and therefore has many jobs.
The only shortcoming of Matabele Province is its transportation. Although the railway passes through Matabele Province, the cost of railway is higher than that of water transportation. The overall development of inland waterway transportation in East Africa has inherent deficiencies, which cannot be changed through manpower and policies. On the contrary, lake shipping is very prosperous. The shipping of the Great Lakes (Lake Victoria), Lake Solon (Lake Tanganyika), Lake Malawi and Lake Turkana are all well developed.
Speaking of East African railways, only 1,500 kilometers were newly built this year. This is mainly because the East African government has too many things to do this year, so the development funds for the railway department are much less than before.
However, Ernst thought this was a good thing. The East African Railway, like the navy, was built in a very short period of time by spending a lot of money. This approach of getting rich overnight is unsustainable.
As a late-developing country, East Africa actually has very limited funds. However, due to its vast territory and rich resources, and its population of nearly 50 million (including blacks), its current fiscal revenue is also very considerable, at least more abundant than that of most countries in the world.
This is also the reason why Ernst was very restrained. The large number of state-owned enterprises established in East Africa are not just about making money. They are significantly different from royal enterprises. Royal enterprises are private enterprises of the Hohenzollern family. They are no different from most countries in the world. Their purpose is to make profits. Although they sometimes provide aid to East Africa, the accounts are also calculated separately.
In recent years, Ernst has focused a lot of energy on East Africa, so he has mainly sought stability in the development of the Heixingen Group. However, the Heixingen Group has already developed to the upper limit of what an enterprise can achieve, and it is not an exaggeration to say that it is the livelihood of millions of boatmen.
Now the main role of the Hechingen Group is still investment and control channels. It is the connection point between East Africa and Germany in terms of technology, capital, talent and market.
Especially on the technical level, East Africa has not encountered any technical barriers so far, and the Hexingen Group has played a big role because it holds a large number of patents.
With the current development of East Africa, it is not easy to enter the high-end industries, and the focus is still on conquering the mid- and low-end industries. Of course, East Africa is also making early arrangements for some emerging industries, especially the electricity and automobile industries that Ernst is optimistic about.
However, one cannot bite off more than one bites off. The automobile industry has not yet emerged, and Ernst only allows Hechingen Energy Power Company to continue to make technological breakthroughs and accumulate experience.
Of course, if possible, Ernst would definitely like to launch the electricity and automobile industries at the same time, but the prerequisite is sufficient funds. East Africa does not have this condition now, and there are too many places to spend money, so Ernst can only focus on improving East Africa’s infrastructure conditions first.
“If you want to get rich, build roads first, have fewer children and plant more trees.” This was the development experience of the Far East in the past, so Ernst also continued this approach. Moreover, Ernst believed that if the supporting services were done well first, the development of the automobile industry in East Africa would be smoother in the future.
As for when the automobile industry in East Africa will be launched, Ernst decided to wait until truck technology is relatively mature before promoting it in East Africa. As for automobiles, a factory should still be built in Europe.
Trucks and tractors are very helpful in improving productivity, but when cars first appeared, they were completely luxury goods. Their practical functions were not very prominent and they served more of the rich and powerful.
Therefore, Ernst thinks it is not cost-effective to develop automobiles in East Africa first. However, it is not a one-size-fits-all approach. East Africa can promote the automobile industry on a small scale, mainly to meet government and foreign trade needs.
Of course, Ernst also has a little calculation here, that is "brand". Ernst has experience in his previous life, so he attaches great importance to the brand effect. Although East Africa will not vigorously develop the automobile industry for the time being, it must first establish its position as a toilet.
Just imagine that when the "Century Automobile" brand comes to the 21st century, the class and temperament will be elevated at once. Automobiles are commodities that are very easy to compare with others. Both ordinary people and rich people can afford them. Therefore, if East Africa does not focus all its energy on the automobile industry, it must first build its reputation.
So Ernst thought that the world's first commercial car must be assembled and shipped in East Africa to win the title of the world's first.
As for the test car, the Hexingen Consortium had already made it in Europe, but it is still working hard to improve performance and reduce costs so that it can directly occupy the market when it is launched, while also directly widening the gap with future competitors.
In addition to these reasons, East Africa is not suitable for the promotion of commercial vehicles. East Africa’s current economic system is a semi-planned economy, and the planned economy is sometimes slow to respond to changes in market demand, which is not conducive to the upgrading and development of the automobile industry.
As for developing the automobile industry in Europe, there is no problem with this, except that the money was earned by the Heixingen Group.
As for East Africa, the main focus is still on improving productivity, so many investments do not consider cost issues and just make do with what they have. The current development model is still very suitable for East Africa.
East Africa is actually similar to a weakened version of the Soviet Union. The Soviet model has obvious advantages in developing heavy industry, which East Africa has also deeply realized. Until the third scientific and technological revolution, East Africa does not have to worry about problems with this model.
A major difference between the economic model of East Africa and that of the Soviet Union is that East Africa attaches great importance to import and export trade, and adopts a complementary economic development model that draws on each other's strengths to overcome each other's weaknesses.
This is what happened in the 19th century. In the 19th century, there was no so-called bipolar structure or one superpower and many strong countries, but rather a diversified world structure that the Far Eastern Empire had always pursued in its early days.
Therefore, East Africa does not need to take sides and can move between various forces without worrying about being hanged on a tree. For example, although Japan was targeted by East Africa, it could choose to cooperate with Britain and the United States, and Tsarist Russia could also move between Britain, the United States, Germany and Austria.
The same is true for East Africa, except that East Africa also cooperates strategically with the Far Eastern Empire. Although the Far Eastern Empire has many shortcomings, it is large in size and has many advantages, so countries around the world are coveting the fat meat of the Far Eastern Empire.
It's just that East Africa can humble itself, or is more willing to exchange sincerity for sincerity, and has gained advantages in the Far Eastern Empire that other powers do not have. After all, it is better to beg for food while standing than to beg for food while kneeling. Anyone with a discerning eye knows that choosing the former is better. Countries that cooperate with East Africa must feel more comfortable than other countries.
This is also a shortcoming of the East African economic system, which is very similar to that of the Soviet Union, except that Ernst does not have the habit of spending money lavishly. Not a penny of the money earned by East Africa can be lost, and even brothers have to settle accounts clearly, even though the relationship between East Africa and Germany and Austria is so close.
But the Soviet Union did not understand this principle. Later, few of the countries that split from the Soviet Union or the Soviet camp said anything good about the Soviet Union. But did the Soviet Union really make no sacrifices? On the contrary, the Soviet Union's contributions to its allies and member states were enormous.
(End of this chapter)
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