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Chapter 562 Four-Year Plan (Fourth update, please subscribe)

A sudden heavy rain. There are many black and blue umbrellas on the streets. Passers-by, whether they are civil servants, clerks, businessmen, bankers, brokers, customers, shopkeepers, lawyers or doctors, all hold umbrellas on the streets. While walking, they are all busy, rushing, and rushing for their personal future.

Looking at the rain outside the window, Zuo Xiaohan couldn't help but sigh.

"The spring rain is continuous..."

As soon as he finished speaking, he laughed at himself again.

"What are the four seasons?"

After gathering his mood, Zuo Xiaohan asked,
"Has the "Industrial Planning Report" from the Construction Planning Committee been delivered?"

Although the Ministry of International Trade and Industry is responsible for trade and industrial policy planning, the Presidential Palace also has a Construction Planning Committee. Although it is an advisory body to the President, it was once the largest government agency in Borneo, with nearly a thousand employees, and The vast majority are experts in various fields, and most of them have participated in formulating Germany's four-year plan.

In the past five years, Nanyang's construction has been implemented in accordance with the "Four-Year Construction Plan" formulated by the committee. The early completion of the "Four-Year Plan" at the end of last year also marked the completion of Nanyang's basic industrialization and the initial establishment of a set of industrial system.

It is for this reason that the committee is formulating the "Second Fourth Plan" to further promote the industrial and economic development of Nanyang.

It is inevitable that there will be power entanglements in the officialdom, especially when powers overlap. It is simply not normal to have this kind of "infighting".

"alright,"

Pan Guoliang's heart trembled when he was hit, and he bowed quickly.

After waving his hand, Zuo Xiaohan said to him,

However, Zuo Xiaohan, as the head of the department, knew that while explaining, he would inevitably have to beat down one or two.

"However, the role of the Construction Planning Committee will gradually fade in the future, but not now. Now, we are still students and cannot throw away this crutch. Secretary Pan, you must remember that greed for quickness is a taboo in doing things. "Governing a big country is like cooking small dishes." Although Nanyang is not big, the truth is the same! "

Pan Guoliang, who is the director of the General Secretary's Office, speaks out what most officials of the Ministry of Industry and Trade say. After all, most of the time, they are responsible for trade, and industrial policy plans are often drawn up by the Construction Planning Committee.

"The commander-in-chief's instruction is that if I understand, I will know what to do in the future!"

Pan Guoliang adjusted the frame and said.

"Director Pan, you have a profound meaning in doing this. The Construction Planning Committee is responsible for formulating the draft, and we are responsible for the implementation. At the same time, we are responsible for identifying and filling in the gaps in a targeted manner. This is a relationship of mutual cooperation, and during the draft formulation, we were consulted many times. opinion.”

Why is it so thin!
The moment he saw the "Four-Year Plan (Draft)", Zuo Xiaohan had such questions in his heart, and even looked at Paul Conor with some confusion.

Zuo Xiaohan, who was born in the official residence secretary office, is well aware of the role of the two organizations. In fact, there is another reason - most of the construction and planning committees are Germans, and many of them are German officials. Therefore, in your opinion, they have more roles. It is advisory and supervisory. The Ministry of International Trade and Industry is responsible for implementation.

"Go down, um, prepare the car, I'll go to the official residence."

……

"General, I think that since we are responsible for trade and industrial policy planning, can we ask you to participate in the formulation of the draft? After several years of training, we are fully capable of participating in and even leading the formulation of the plan."

"It hasn't been sent over yet, but I heard from colleagues on the Construction and Planning Committee that Director Paul has made an appointment with you. I guess the draft plan needs to be submitted to you first, and it will only be sent to us after your approval."

Although they did not directly participate in the formulation of the "Four-Year Plan", the committee also solicited their opinions. If the plan is fully implemented, the draft will never be so thin.

This thickness is similar to that of the first four-year plan a few years ago. According to the first draft they discussed before, the investment scale of this four-year plan is double that of the first four-year plan, which means that the thickness of the draft will definitely be much thicker than the past plan.

However, it looks very thin now. "You don't have to look at me like that. This is your wish."

Paul Conor quickly put aside the relationship with himself and threw the responsibility to Li Yian. Li Yian, who was smoking a cigar, laughed.

"Yes, that's what I meant."

Looking at Zuo Xiaohan, Li Yian said.

"After the implementation of the first "Four-Year Plan", except for the three eastern districts, the island has established a sound industrial base. The next development will be more about the expansion operations of the enterprises themselves. Officials or corporate leaders "Balancing key investments is not necessarily conducive to economic development."

After taking a puff of his cigar, seeing that Zuo Xiaohan seemed a little unclear, he continued.

"The economic control we are currently implementing is very similar to Russia's planned economy. It is not just us. As early as after the 29-year crisis, Keynesian theory prevailed and all countries began to intervene in the economy. Among them, Russia played an exemplary role. At that time, the economic crisis severely damaged the economies of various countries, but Russia, which adopted the planned economic model, was advancing triumphantly and became unique. Naturally, Western countries had the idea of ​​​​imitating Germany's "four". The "Year Plan" is almost a replica of the "Five-Year Plan"."

"In fact, if you trace the origin, Russia's planned economy was actually the wartime economy implemented by Germany during World War I, and the formulation of Russia's "First Five-Year Plan" itself involved many German experts."

Paul Conor interjected from the sidelines.

"Indeed."

Li Yian said with a slight nod.

"World War II reduced the entire Europe to ruins. Naturally, post-war reconstruction cannot rely on market forces. Therefore, the government control faction once had the upper hand. Currently, Britain, France, Germany, and Japan have implemented government industrial control and accelerated reconstruction through direct investment. Speed. And the effect is remarkable. The economies of European countries are currently developing rapidly, but there is a question mark as to whether this policy can be sustained. "

Why a question mark?
Because this is the case in the other world. Although the economy recovered rapidly under the control of countries such as Europe and Japan after World War II, its economy has been weak since the mid-to-late 50s. From the late 60s to the 70s, serious stagflation occurred in Western countries. State intervention methods became increasingly ineffective, and free market theory returned.

In the following two decades, Western countries began a large-scale privatization process to stimulate economic development in the opposite way.

Zuo Xiaohan asked doubtfully.

"This... Your Excellency, you don't understand your humble position?"

Looking at Zuo Xiaohan who was confused, Li Yian turned his attention to Paul.

"Paul, please explain. You have participated in and chaired two "Four-Year Plans". Let's hear it."

"Okay, Your Excellency."

Paul nodded, looked at Zuo Xiaohan and explained.

"In fact, it is the path dependence of development. This is that once a specific solution or decision path is selected and implemented, even when better choices appear later, individuals or organizations may suffer from various costs and complexities. The reason is to continue on the original path, thus creating a state of inertia or dependence.”

When path dependence was mentioned, Paul glanced at His Excellency who was smoking a cigar. It was Li Yian who introduced this natural science term into the economic and social laws.

"Just like when we formulated the "First Four Plan", we planned how many factories, how much steel production was required, how many cars, how many ships, how many machinery, coal, power generation, etc., all aspects of the planning were very detailed. And we have achieved corresponding success, so the question is, when formulating the "Second Fourth Plan", are we repeating the "First Fourth Plan", planning factory construction, formulating various plans for steel, machinery, coal, petroleum, etc. Development Plan for Industrial Indicators.”

In fact, this is the secret of the typical "Russian model" - continuous investment in the construction of heavy industrial factories. Every year, steel, machinery, automobiles, cement, petroleum and other industrial products are constantly increasing to promote economic development.

But market demand has an end. What should we do when we reach the critical point where supply exceeds demand?
In another world, Russia did not solve this problem until the collapse of its empire.

This problem is not only a problem for Russia, but also a problem that Nanyang needs to face.

(End of this chapter)