African Entrepreneurship Records 2

Chapter 1048: Using "Europe and America" ​​as a Mirror

The Austro-Hungarian Empire faced various difficulties, and as time went on, internal conflicts continued to expand and spread to the military field, seriously hindering the development of the Austro-Hungarian army. Extraterritorial countries such as East Africa could not save the Austro-Hungarian Empire. After all, in terms of influence, Germany had a stronger influence on the Austro-Hungarian Empire, especially in the economic level.

Of course, for various reasons, the East African government still had to lend a helping hand to the Austro-Hungarian Empire. After Erich's trip, the East African government further strengthened its cooperation with the Austro-Hungarian Empire in the military field.

For the purpose of exchange, East Africa opened up to the Austro-Hungarian Empire to a certain extent in terms of battleship technology, and the Austro-Hungarian Empire reciprocated by providing East Africa with assistance in artillery technology.

Although East African artillery developed well, there was still a certain gap compared with European powers. The Austro-Hungarian Empire was the leader in this field, especially in the manufacture of large-caliber artillery.

Of course, the Austro-Hungarian Empire did not have much military technology worthy of East Africa's attention. Since the South African War, the development of the East African army has entered a new realm. Various military technologies and equipment have emerged in an endless stream, and both the army and navy have achieved qualitative improvements.

……

Rhine City.

Siwei Te: "According to news from New York, a crisis has broken out in the US financial industry since October this year. This crisis is likely to spread to Europe. Now many banks in the US have gone bankrupt, the capital chain of small and medium-sized enterprises has been broken, and the US industry has entered a new round of stagnation."

Ernst has become numb to the economic crises in capitalist countries. Similar incidents occur almost every year, the only difference is the scope of the impact.

The economic crisis of 1907 undoubtedly had a profound impact. For example, the birth of the Federal Reserve was directly caused by this round of economic crisis. At the same time, as the United States became the world's first industrial power, this economic crisis would be transmitted to all capitalist countries, further exacerbating the contradictions between capitalist countries.

The outbreak of the capitalist economic crisis will inevitably have a certain impact on East African countries' Second Five-Year Plan, which requires East African governments to make more interventions to ensure the export of their industrial products.

Ernst said: "The US financial crisis is bound to trigger a new round of world economic crisis, especially for the European and American markets. In a short period of time, excess industrial capacity will seriously suppress the prices of industrial goods in the market, and the consumption capacity of the European and American markets will also be weakened. At this stage, it is not conducive to the export of my country's light industrial consumer goods."

The economic crisis in the capitalist world has both advantages and disadvantages for the industrial development of East Africa, but it will not have much impact on the growth of East Africa's own industry. In this round of industrial planning development, East Africa has not established many new enterprises, and East Africa's own controlled market can also play a buffering and isolating role against the external world market.

During the Second Five-Year Plan, East Africa invested in and built more than 1906 large-scale enterprises, which were to be completed within five years. During the same period, Britain registered nearly 1907 new enterprises between and alone, and industrial powers such as Germany and the United States registered no less.

Therefore, the threshold for establishing a business in Europe and the United States is too low, and small and micro enterprises will face operational difficulties at the slightest disturbance. In addition, under the fanatical pursuit of wealth in European and American societies, people with some spare money are following the trend to set up factories, while banks in European and American countries are more concerned about eating than being punished, and coupled with poor supervision, this ultimately leads to too many bad debts and eventually bankruptcy.

"During the economic crisis, a large number of companies in Europe and the United States went bankrupt. This is also an opportunity for us to appropriately introduce some light industrial production machinery and equipment that we have never been involved in, and fill the many gaps in East Africa's light industrial production in a short period of time."

After decades of development, East Africa no longer had a weak industrial base like before the first two five-year plans of the Soviet Union, and the East African government did not have much spare money to import large quantities of surplus industrial manufacturing machines from Europe and the United States. In addition, after the First Five-Year Plan, the development of heavy industry in East Africa had reached a certain level, so the machinery manufacturing that met the production of domestic light industry naturally tilted towards domestic heavy industrial enterprises.

For example, in the textile industry, East Africa used to import a large number of foreign textile machines, mainly from Germany and the United Kingdom. After the First Five-Year Plan, East Africa was able to produce some high-quality textile machines on its own. In order to support the development of domestic enterprises, East Africa naturally gave priority to using domestically produced machines.

Of course, light industry covers a wide range, and East Africa may not have such convenient conditions as the textile industry in other light industrial fields, so it still needs to import machines or goods to meet the light industrial consumer goods demand in the domestic market.

Siwei Te: "This round of crisis has a greater impact on Japan, Russia and Austria-Hungary. After all, the financial situation of these three countries is the worst. The United States and Germany have the ability to cope with the crisis, but their industrial development will also be affected to a certain extent."

Because of the war, the Russian and Japanese governments are now heavily in debt. As for the Austro-Hungarian Empire, although it has not experienced war, the situation is not much better.

As for Britain and France, they now give priority to the development of the financial industry and have colonies as reservoirs, so they are the least affected, at least that is the reflection on their home soil. As for the life and death of the colonies, that is not within their consideration.

However, due to its economic system, East Africa has no deep connection with the world market, so the impact of the shock will not be too great.

Under the planned economy, at this stage, East Africa at least will not have poorly established enterprises like those in Europe and the United States. Take the United Kingdom for example, which has a native population of only nearly 1906 million, less than half of East Africa. The number of enterprises established between 1907 and is about two to three times the number of East Africa's entire Second Five-Year Plan. It is estimated that many enterprises can do business by just hanging up a sign, and they will go bankrupt at the slightest disturbance in the market.

"No matter how the European and American markets develop, the output of my country's light industry must be increased during the Second Five-Year Plan. Even if exports are affected, we must ensure the normal operation of enterprises and release production capacity to the domestic market. At the same time, we will further optimize our industry in response to the problems in the European and American economic crisis."

The economic crisis is also a process of survival of the fittest, especially reflected in the fields of corporate technology and management. This has a good demonstration effect on the industrial development of East Africa. After all, East Africa is not the Soviet Union, so there is no burden for East Africa to borrow the industrial development experience of typical capitalist countries.

Of course, this will also increase the workload of the East African government during the Second Five-Year Plan, and may even have an impact on many companies under construction in East Africa. However, even if it takes more effort, the East African government must do this, otherwise it will fall into the vicious circle where the Soviet industry, especially the light industry, will find it difficult to replace itself, making it difficult for the quality and diversity of its own light industrial products to compete with Europe and the United States.

The tide of history is unstoppable, and East Africa's industrialization cannot go against the tide, especially the development of light industry. Under East Africa's current economic system, the development of light industry is not as flexible as that of European and American companies. If it does not use European and American companies as a reference and update its own light industry in a timely manner, it will inevitably pose a hidden danger to the future development of East African companies.

Fortunately, East Africa's five-year plans have never been radical, so increasing the workload of governments and enterprises will not have a serious impact. Therefore, under the dual influence of the Second Five-Year Plan and the world economic crisis, making some adjustments will not have too much negative effect.

With the adjustment of the top government and the impact of unpredictable events such as the economic crisis, the work in the middle and late stages of the Second Five-Year Plan was greatly disrupted, especially for East African domestic export companies. With the development of the economic crisis, there was a surplus of industrial products in the world, while market consumption capacity declined. East African export companies had to digest excess capacity through means such as price cuts.

The industrial recession in the European and American markets also had a certain impact on East Africa's exports of minerals and agricultural products, especially Germany. From 1907 to 1908, East Africa's exports of cotton, coffee, cocoa, rubber, chromite and manganese ore to Germany all declined to a certain extent.

(End of this chapter)