African Entrepreneurship Records 2

Chapter 1205 Industrial Dependence
However, with the passage of time, especially after the implementation of the new economic policy in East Africa, the East African beverage market can be said to have truly ushered in a glorious era of "a hundred schools of thought contending, a hundred flowers blooming" in recent years.

As a typical light industry, the production and R&D of the beverage industry do not require any technical difficulty. This has led to the emergence of at least tens of thousands of beverage brands on the East African market in just a few years after the new economic policy. It does not require too much investment, and any small family beverage workshop, as long as the taste is acceptable, is enough to gain a foothold in society.

Of course, this can easily lead to a lot of problems, such as lack of supervision. There will definitely be problems with the quality of products in many small workshops and factories, but this is obviously difficult for the East African government to deal with today.

With so many new things suddenly appearing on the market under the new economic policy, it is impossible for the East African government to check them one by one now.

Of course, the problems behind the prosperity of the East African beverage market are nothing compared to those in Europe and the United States, so the East African government is not in a hurry to carry out large-scale rectification.

Back to the East African World Expo, many tea varieties of the Far Eastern Empire were well received by the East African people. Many people placed orders on the spot, and the tea merchants who were favored had their faces frozen with smiles.

Many Far Eastern tea merchants are also coming to East Africa for the first time, so they are not familiar with East Africa's emerging tea market, which is large in scale and has strong consumption capacity.

The East African Expo provides them with such a channel, allowing them to better understand the national conditions of East Africa. Through the feedback from the East African people, they also realize that there is great potential in the East African tea market.

Tea is just one of the representative products of the Far Eastern Empire. Other products such as porcelain, silk, handicrafts, etc. are also popular among tourists and businessmen from all over the world.

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Rhine City.

The East African government has been keeping a close eye on the East African Expo, and the news coming from Dar es Salaam, First Town and Bagamoyo has made the East African government feel very satisfied.

Siwei Te said: "From the feedback so far, the World Expo has been quite successful. Now, my country's commodities, industrial strength, urban development status and many other information are being rapidly disseminated to southern countries and regions through the World Expo platform."

"If all goes well, this will greatly promote our progress in seizing markets in southern countries and regions, such as electrical appliances, automobiles, textiles, etc., to gain more stable overseas markets."

The most important reason for East Africa to host this World Expo is to establish East Africa's influence in southern countries and regions.

This will allow these countries and regions to witness East Africa’s true level of development and strong comprehensive national strength, thereby establishing East Africa’s authority among southern countries and regions.

This is actually digging at the foundations of traditional European powers such as Britain and France. East Africa and the United States are each wielding their hoes and digging into the corners of European countries. It is foreseeable how aggrieved the European victors will be after the end of the European war. Not only will Europe be destroyed, but its influence and voice in the world will also be much less than before.

Ernst said: "This World Expo is huge in scale and impact. We will have to keep an eye on it in the next six months."

"This is different from our attitude towards Europe. The European market is only temporarily vacant due to the war. When the war is over, these vacancies will be filled."

“So it is foreseeable that after the war is over and Europe is rebuilt and factories resume work, competition in the international market will become more intense.”

"We have taken advantage of this period to build a strong industrial production capacity. If we don't digest it in time and find a stable overseas base, it will be very dangerous."

"So the southern countries and regions are our new fronts for digesting the wealth gained from the war. We will incorporate these countries and regions into our East African commodity market and raw material supply system." "In this way, after the war, our industry will not shrink rapidly due to overproduction, thus allowing our country to survive the difficult economic period."

In fact, after the war in the previous life, the world economy still ushered in a new prosperity. After all, the whole of Europe was hit hard by the war, and it took time for European countries to restore normal social production.

During the war, a large number of farmlands, houses, roads and factories were destroyed, which also led to strong demand in post-war Europe.

When the European economy fully recovered, which was almost the same as the recovery of the German economy in the previous life, the whole world ushered in an economic crisis of unprecedented scale, and this crisis also laid the seeds for World War II.

This is easy to understand. In the past, the United States' production capacity expanded rapidly during World War I. After the end of World War I, this capacity expansion was able to continue due to the post-war depression in European society. However, when countries such as Britain, France and Germany resumed production, overcapacity in the market was inevitable.

So from an economic perspective, the outbreak of World War II is closely related to the United States. After all, the culprit for the Great Depression before World War II was the disorderly expansion of crazy American capital.

This involves two aspects. One is that the United States has a serious overcapacity, and the US government has turned a blind eye to risky choices. On the other hand, in order to rearm Germany, the United States has invested in Germany, which has led to a rapid recovery of German industry. Coupled with the recovery and development of industries in other countries, the market capacity in the short term cannot support this economic prosperity.

The fundamental reason why the United States and Germany are singled out is that before World War II, the United States and Germany were the two most powerful industrial countries in the world, which made their impact on the world economy huge.

And in this time and space, there is an additional heavyweight player, East Africa. Ernst can foresee that if an economic crisis occurs after the war in the future, it will only come earlier than in the previous life, and will be larger in scale and more powerful.

Therefore, when Ernst already knew that such a far-reaching global economic crisis was bound to break out, the dispatch of the large ship in East Africa became even more important.

There is no doubt that the most effective way to deal with economic crises is to shift the blame to the colonies. This is an important reason why Britain and France were able to easily survive economic crises in the past. This also reflects why Germany is more warlike than Britain and France.

Apart from the Junker aristocracy system, even if Germany did not provoke a war, without colonies as a reservoir, its ability to cope with economic crises would be much smaller than that of Britain and France. At this time, unless Germany is willing to carry out social reforms, benefit the people, and expand its domestic market capacity, even if it does so, it may not be effective and may even backfire on itself.

In comparison, the risk of gambling like war is much smaller than that of proactive reform, so it is better to take a chance with Britain and France. Not only may reforms lead to their own destruction, but even if they succeed, at most they can only allow Germany to temporarily survive the dangerous economic cycle.

Although war also carries the risk of national destruction, its visible benefits are also huge. After all, the victor can have hegemony over the whole of Europe. So if Ernst was the ruler of Germany, he would have no choice but to go to war.

After all, society’s resources are limited within a certain period of time. If East Africa wants to survive the economic crisis safely, it must obtain more overseas markets and colonies, and they must be stable overseas markets and colonies.

For example, Germany's pre-war colonies seemed large in scale, but they basically did not play a role in strength. Instead, Germany's investment went down the drain. If it were not for the support of East Africa, Germany would not even be able to make any profit.

Therefore, East Africa, which is seeking regional economic hegemony and colonies, must remember Germany’s lessons and cannot wait until the end of the European war and then just run away with the former world order makers, Britain and France.

There are only two ways to develop economic colonies: one is the threat of force, and the other is inducement. The East African Expo belongs to the second point. By connecting with the markets of southern countries and regions, they will become dependent on East African industries.

(End of this chapter)