African Entrepreneurship Records

Chapter 1048 Using “Europe and America” as a Mirror

The Austro-Hungarian Empire faced various difficulties, and as time went by, internal conflicts continued to expand and spread to the military field, seriously hindering the development of the Austro-Hungarian Army. It was impossible for countries outside the region like East Africa to save the Austro-Hungarian Empire. After all, in terms of influence, Germany had a stronger influence on the Austro-Hungarian Empire, especially at the economic level.

Of course, due to various factors, the East African government still needs to help the Austro-Hungarian Empire. After Erich's trip, the East African government further strengthened cooperation with the Austro-Hungarian Empire in the military field.

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

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

Of course, there are not many military technologies in the Austro-Hungarian Empire that are worthy of East Africa's attention. Since the South African War, the development of the East African army has entered a new world. It can be said that various military technologies and equipment have emerged in endlessly, and the army and navy have been qualitatively improved.

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Rhine city.

Sweet: "According to New York news, since October this year, a crisis has broken out in the U.S. financial industry. This crisis is likely to spread to Europe. Now many banks in the United States have gone bankrupt, the capital chains of small and medium-sized enterprises have broken, and the U.S. industry has entered a new round. stagnation stage.”

Ernst has become numb to the economic crisis in capitalist countries. Similar incidents happen almost every year, but it depends on 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 economic crisis. At the same time, this economic crisis will also be transmitted to all capitalist countries as the United States becomes the world's largest industrial power. further intensify conflicts among capitalist countries.

The outbreak of the capitalist economic crisis will inevitably have a certain impact on East Africa's Second Five-Year Plan, which requires the East African government to make more intervention to ensure the export of its own industrial products.

Ernst said: "The financial crisis in the United States will inevitably trigger a new round of world economic crisis, especially for the European and American markets. Excess industrial production capacity in a short period of time will seriously suppress the prices of industrial commodities on the market, and the consumption capacity of the European and American markets will also The subsequent weakening is very detrimental to my country’s export of light industrial consumer goods at this stage.”

The economic crisis in the capitalist world has both advantages and disadvantages for the industrial development of East Africa. However, it will not have much impact on the increase of East Africa's domestic industry. In this round of planned industrial development, East Africa has not established many new enterprises. East Africa's own control Markets can also act as a buffer and insulator against external world markets.

During the Second Five-Year Plan, East Africa invested in the construction of more than 1,000 enterprises above designated size. This was to be completed within five years. During the same period, the United Kingdom registered nearly 20,000 new enterprises between 1906 and 1907 alone. There are many enterprises, and industrial giants such as Germany and the United States have only a few more.

Therefore, the threshold for establishing a business in European and American countries is too low, and small and micro enterprises will face operating difficulties at the slightest sign of trouble. Coupled with the fanatical pursuit of wealth in European and American society, people with some spare money are following the trend to set up factories. However, banks in European and American countries cannot afford it. Record-breaking, coupled with ineffective supervision, eventually led to too many bad debts and bad debts, which eventually led to bankruptcy.

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

After decades of development, East Africa's industrial base is not as weak as it was before the Soviet Union's first two five-year plans, and the East African government does not have much spare money to introduce large quantities of excess industrial manufacturing machinery from Europe and the United States. After the First Five-Year Plan, the development of heavy industry in East Africa has reached a certain height, so the machinery manufacturing that meets the production of domestic light industry will naturally be tilted towards domestic heavy industry enterprises.

For example, in the textile industry, East Africa imported a large number of foreign textile machines in the past, mainly from Germany and the United Kingdom. After the First Five-Year Plan, East Africa has been able to produce some good-quality textile machines on its own. In order to support the development of its own enterprises, East Africa naturally gives priority to their use. Domestic production of machinery.

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

Sweet: "This round of crisis will have a greater impact on Japan, Japan, Russia, and Austria-Hungary. After all, the three countries' financial conditions are the worst. The United States and Germany have the ability to cope with the crisis, but industrial development will also be affected to a certain extent."

The governments of Tsarist Russia and Japan now owe a lot of debt due to the war. As for the Austro-Hungarian Empire, although it has not experienced a war, the situation is not much better.

As for Britain and France, they are now giving priority to the development of the financial industry, and have colonies as reservoirs, so they will be least affected, at least in their own countries. As for the life and death of the colonies, that is not within the scope of their consideration.

Due to its economic system, East Africa does not have a deep relationship with the world market, so the impact of the shock will not be too great.

Under the planned economy, East Africa at this stage will at least not have the same bad enterprises as European and American countries. For example, the United Kingdom has a population of nearly 40 million, less than half of East Africa. The number of enterprises established between 1906 and 1907 was more than 25% of the entire East Africa. The plan is to increase the number by about two to three times. It is estimated that many companies can do business just by putting up a brand, and they will go bankrupt if there is any slight disturbance in the market.

"No matter how the changes in 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 will be affected, we must ensure the normal operation of enterprises and release production capacity domestically. At the same time, we must address the problems in the European and American economic crises. , to further optimize our country’s industry.”

The economic crisis is also a process of survival of the fittest, especially in the fields of enterprise technology and management, which serves as a good example for 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 period, and may even affect many enterprises 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 Soviet industry, especially It is the difficulty of light industry in self-replacement, which makes it difficult for the quality and diversity of domestic light industry products to compete with Europe and the United States.

The historical trend is mighty, and East Africa's industrialization cannot go against it, especially the development of light industry. Under the current economic system in East Africa, the development of light industry is not as flexible as that of European and American enterprises. If we do not use European and American enterprises as a reference to update our country's light industry in a timely manner, it will inevitably There are hidden dangers for the future enterprise development in East Africa.

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

With the adjustment of the top government and the impact of unpredictable events such as the economic crisis, great twists and turns have been caused in the middle and later stages of the Second Five-Year Plan, especially the greatest pressure on domestic export companies in East Africa. With the development of the economic crisis, the world's industrial There is a surplus of products and a decline in market consumption capacity. East African export companies have to reduce excess production capacity through price cuts and other means.

The industrial decline in the European and American markets also had a certain impact on the export of ores and agricultural products from East Africa, especially Germany. From 1907 to 1908, East Africa's exports of cotton, coffee, cocoa, rubber, chromite, and manganese ore to Germany all experienced a certain degree of decline. decline.

(End of chapter)