Chapter 393, Economic Reform and Development Plan
The alliance system has always been overlooked by the outside world, but in fact it is Gu Hang's trump card.
It is very suitable for rapid development from a poor and backward situation. Welfare benefits meet the needs of the lower-class people to improve their living standards and provide a path for promotion. The centralized system can quickly carry out planned, large-scale and rapid development in certain key areas according to the needs of the rulers.
And there is another core point, the fruits of these rapid developments do not need to be shared with the public. Although the public will be promoted under the job grade system, they are promoted one level a year, and even after reaching level D, it generally takes several years to be promoted one level. The increase in welfare and allowance costs brought about by this is very different from the benefits of the rapid development of the entire social productivity.
The fruits of development in the middle were eaten up by the owner of collectivized production, that is, the union government.
This system has many advantages, but also disadvantages. For example, it doesn't matter if the Union government takes it. After all, in addition to paying imperial taxes and building the army, most of this wealth will be reinvested in social development and construction. Infrastructure construction, more factories, expanding production capacity...
The resulting infrastructure updates, urban expansion, more and larger living space, more jobs, and more promotion opportunities will in turn improve people's quality of life.
But if the system becomes rigid, the fruits of development will end up in the hands of the bureaucracy, or will be wasted terribly due to wrong decisions or systemic corruption. The people will not be able to benefit from it, and the government will have no money for development, then the whole thing will be ruined.
This is an issue that Gu Hang has always been vigilant about. The assessment department of the administrative department will supervise, and the anti-corruption bureau under the alliance legal center, the demon hunter organization, and the alliance internal affairs department, the three-tier structure, all have relevant supervisory authority, and even supervise each other.
At present, the entire system of the alliance is running quite well and has basically achieved what Gu Hang expected.
This is reflected on the Angry Owl Star, the Black Arrow Star, and Korojia.
There is no need to explain what the first two are like. On Koroja, the alliance reform is going quite smoothly.
In the past year or so, Gu Hang's attention has certainly been on targeting the Fats family, but in fact, Koroja's reforms have never been relaxed and have been moving forward at a very rapid pace.
When they arrived at any reform zone, they could quickly implement the alliance reforms with the help of tens of thousands of loyal officials trained by Gu Hang at Zhongsi Academy using his gift points, assisted by many new officials who graduated urgently from the academy, officials transferred from the Angry Owl Star and the Black Arrow Star, and officials from the former Korojia planetary government.
Once the supplies are in place and the ranks are determined, many problems will be solved immediately, there will be no need to fight a security war, and the troops can be transferred.
The Alliance was not in a hurry to reform Koroja, but took it one hive at a time, one block at a time. Administrative officials led the way with supplies, provided jobs, carried out political reforms, and developed industries, and these methods worked every time.
In places where reforms have not yet been implemented, they can also be promoted first. Just tell the truth about the good life and treatment enjoyed by people in other regions. Many places are eagerly waiting for this. When the policy is really implemented, there will be little resistance.
After gaining the support of the grassroots people and relevant propaganda was in place, the alliance possessed absolute military power. The remaining people, forces, and inherent interest groups that might hinder the promotion of reform were all insignificant and could be easily wiped out.
But what went well in Koroja doesn't mean it will go well in Faches. The situations in the two places are completely different. Faches is relatively developed to begin with, so you can't just copy and paste.
But if the alliance system cannot be brought to the Fats Three Stars, that would be very bad. It would directly affect the alliance's control over these three stars and it would be impossible to fully integrate these three worlds into the alliance.
It's not impossible to rule like the Empire does most of the world, but it's fucked up.
The Union Government has obtained their production reports for decades from the old coalition government. In the past twenty years, Fachs Samsung has basically had no economic growth, maintaining an annual industrial and agricultural output value of about 26 billion.
From this perspective, the level of development of Fats three stars is actually not 3, it is only about 2.6 at most.
It is no wonder that the Fats family had a big reaction to the fact that the development of the three planets under their command was adjusted to level 3. Although at first glance, it is not as terrible as a fine of 100 billion, this incident will cause harm for thousands of years.
For the empire, although it is reasonable to adopt a dynamic balance strategy to judge the development level of a planet, if the development level is high, it is okay to collect more taxes; if the planet encounters difficulties, then it is reasonable to collect less taxes and lower the development level.
However, although this mechanism exists, it is in fact useless. If you raise the development level, the star zone government will verify it and report it quickly, and the process will be completed quickly. Basically, the star zone has the final say; but if you want to lower it, it will be too difficult. After the star zone is determined, the report must be directly reported to the center of the empire, and every level in between may be taken down by you.
If the rate is lowered by one level, there will be countless benefits and the tax will be much less. No government at any level wants to take such a responsibility.
It is basically impossible to get approval unless the situation is really special.
The 0.4 development degree lost by Fache Samsung will be borne by them forever in the future - unless they can really develop.
The tax that the Fats family received from Samsung was only about 2.8 billion per year. After deducting the 2 billion in taxes, they had a little over 800 million left each year, and they lived a very enjoyable life.
But if it rises to 3 billion, we won’t be able to survive.
If Gu Hang does not copy the alliance system and continues to use the old coalition government system, then there will be no point.
So after Gu Hang got the three stars from Fachs, he would have to invest another 200 million yuan into it every year?
This is unacceptable.
Gu Hang has no regrets about contributing to local development. Investment is for greater returns in the future.
But this money is purely extra tax, so I definitely won’t do it.
Raising taxes and engaging in vicious harvesting are not impossible, but they will definitely have a huge negative impact on local social production.
Only by copying the alliance system can we break the original shackles and better collect surplus value.
At the same time, only by implementing an alliance system can the black technologies in Gu Hang's hands be brought into play.
To this end, he and his government officials have been conducting research for more than a month, taking local data from Faches and conducting visits and investigations.
By now, the officials of the coalition government headed by Ossena who came to take over the Facheras Samsung have already had a preliminary strategy.
It was Ossena herself who reported this strategy to him.
The first is to reform the financial sector by abolishing the currency issued by the original Facheras regime, which was only circulated in Facheras Samsung, and replacing it with the currency issued by the alliance.
In the next two years, the original currency of Faches can still continue to be used, but the subsequent issuance will be mainly in the form of Alliance currency, a dual-track system; Faches people can also exchange the old currency they originally held for new currency at a certain exchange rate within these two years.
On this basis, the second step is to invest in the construction of state-owned factories. On the one hand, it is to build new factories and provide more jobs; on the other hand, it is to nationalize the industries originally held by the "Fachs Family".
The old government of Fachs did not directly control the enterprises. However, the direct and collateral branches of the Fachs family owned a lot of industries and wealth. Gu Hang would definitely not be polite about these.
With these two foundations in place, direct reforms to people’s livelihood will come into play.
Workers, technical experts, clerks, and government employees working in state-owned factories will be assigned ranks and receive allowances according to their ranks. Some of the benefits originally attributed to the ranks will be cancelled and converted into currency at the local price of the planet Fachers and included in the allowances. Most of the benefits cancelled are in-kind benefits, including food supply, daily necessities supply, and entertainment supply; but medical benefits, education benefits, and housing security benefits will be retained.
Nationalized hospitals and educational institutions will be open to all qualified people for free. They will enjoy different levels of medical and educational benefits according to their different ranks. People of different ranks will also have different basic housing conditions, which will also be guaranteed by the government.
The people working in these newly invested and built alliance factories, as well as the government employees who swear allegiance to the alliance government, will have relatively high job levels at the beginning, in order to ensure that their living standards are not lower than before; but in order to avoid taking on too much financial pressure, the number of people is limited. Only highly skilled people in factories, important management positions, and important government employees will have clear job levels.
Normal workers and employees will maintain their previous salary levels and be paid according to their wages, but without job levels, they will no longer have corresponding housing, medical and education benefits.
Next, increase the cost of education, health care, and housing to make job positions more desirable.
Subsequently, the path for normal private enterprises to be nationalized will be opened. The original managers will remain in office and become state-owned factory managers with alliance ranks. The specific ranks will be determined based on the scale and revenue of the original enterprises. After nationalization, the corresponding workers and employees will also receive ranks.
All state-owned enterprises will be supported by the Union Government, mainly in terms of technology and product procurement. The products produced by state-owned enterprises will never have trouble selling. As long as they meet the requirements under the inspection of relevant quality supervision departments, all products will be handed over to the state for payment of imperial taxes, welfare distribution, market sales, interstellar trade exports...
As for non-state-owned enterprises, government procurement is not completely absent, but in the case of priority state-owned enterprises, they will probably be affected.
But in terms of market sales, it will not be affected - if the price and quality cannot beat the state-owned factories, that is their own problem.
The essence of Ossena's strategy is to implement a dual-track system, adding state-owned industries to the original economic foundation of Facheras. By binding benefits, it ensures that employees in state-owned factories, government employees and other "regular" personnel will receive the same or even better treatment as before in an environment of high benefits and high stability.
At the same time, it limits the upward paths for people and enterprises outside the system.
This is to drive private enterprises into the system.
But the core difference is that the alliance's system is open to the public and enterprises. Especially for the public, almost everyone is welcome. Those who have the ability to join state-owned enterprises, government systems, medical and education industries are welcomed by the alliance; those who don't have much ability, but are willing to work, can now also have a salary income that is not worse than that of private enterprises; in the future, the alliance has a clear plan to expand the system and will eventually include everyone in the job grade system.
However, for business owners, the conditions are much more harsh. Originally, as a boss, all the surplus value of employees was in his hands. If he did a good job, he would make a fortune; if he did a bad job, he would go bankrupt. But now, if he chooses to convert to a state-owned enterprise, although the rank of the business owner will be set higher, it is still a big difference compared to the past when all the income belonged to him.
Moreover, although they are staying in the position, they can only be kept and promoted if they do a good job. If they do not do a good job, their output and efficiency cannot be improved, or their products do not sell well, they may be demoted and transferred to another company to work as a low-level staff member. If they are corrupt or have serious faults, they will have to go to jail or even be shot.
But not nationalizing it?
Then you will be squeezed out by state-owned enterprises, and then you will be left with nothing, not even a job title.
Unless you are really awesome, you can guarantee good benefits under a series of problems such as taxation, marketing, lack of government procurement, and the need to offer high salaries to offset the welfare advantages of state-owned industries in order to retain talent, which leads to rising costs... Then you are awesome and deserve to make money.
The ultimate goal is to hope that under these reforms, Facheras Samsung will gently transition to a normal and ideal alliance system environment: a situation in which the state-owned economy is the main body and the private economy is supplementary.
Of course, this series of reforms has caused quite a stir.
But there are steps in implementation.
All policies will not be implemented all at once, but will be reformed gradually, starting with nationalization of important sectors such as energy, mining, smelting, military industry, and heavy industry, and then the rest will be done slowly.
"...We estimate that our public expenditure will increase significantly after the corresponding policies are introduced. After the reform begins, the total tax revenue of Fachers Samsung will continue to decrease, but combined with the profits after deducting expenses from the income of state-owned enterprises, it is expected to provide no less than 2.5 billion in revenue in the first year, and increase by 5% every year. After five years, Fachers will be self-sufficient and no longer need subsidies from the Union government. It will complete the imperial tax and begin to generate a surplus."
Ossena carefully recounted their estimates and conclusions, and gave the five-year economic reform and development plan she had prepared according to Gu Hang's requirements.
Gu Hang listened very carefully.
In essence, this means spending money first, and on the premise of ensuring people's livelihood and existing productivity, he will endure more losses and gently implement the alliance system to ultimately achieve the results he wants.
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I will be on a business trip for a week starting tomorrow...
(End of this chapter)
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