African Entrepreneurship Records

Chapter 579 East African Model

“Also, the current immigration is still mainly concentrated in the inland Matabele Province, so we cannot change the general direction, especially the immigrants from the eastern region, which are still too many compared to other regions.”

Ernst said this, but in fact the population in the eastern region is not that large. Even excluding the arid areas of Somalia and Kenya, the eastern region has nearly two million square kilometers of land. At this amount, the population in the eastern region is less than 20 million. Seems very thin.

“Matabele Province is an industrial province, so the demand for industrial workers is quite strong. However, because Matabele Province is inland, the population is relatively small, and the immigration market is now sluggish, so the government is working We must give full play to our subjective initiative in distribution and try our best to achieve the radiating spread of the East African population from the east to the inland and other regions."

 Big government is more convenient in this regard. The East African government controls national resources and uses these resource advantages to mobilize its citizens. This is very similar to the Soviet Union in the past. Jobs were located in Siberia and people could go there even if they didn’t want to.

 As a key industrial and agricultural province in East Africa, Matabele Province also has the most employment opportunities, so there are many jobs.

The only shortcoming of Matabele Province is that transportation is a flaw. Although the railway passes through Matabele Province, the cost of railway is higher than that of water transportation. The overall development of inland shipping in East Africa has inherent shortcomings. This cannot be solved through manpower and policies. What has changed is that the development of lake shipping is very prosperous. The shipping development of the Great Lakes (Lake Victoria), Lake Solon (Lake Tanganyika), Lake Malawi, and Lake Turkana are all good.

 Speaking of railways in East Africa, only 1,500 kilometers have been built this year. The main reason is that the East African government has too many things to do this year, so the development funds for the railway sector are not as good as before.

But Ernst thinks this is a good thing. The East African Railway, like the Navy, was built in a very short time by throwing money at it. This approach of eating one thing at a time and becoming fat is unsustainable.

As a late-developing country, East Africa actually has very limited funds. However, because East Africa has a vast land and abundant resources and a population of nearly 50 million (including black people), its current fiscal revenue is also very considerable, at least more abundant than most countries in the world.

This is the reason why Ernst was very restrained. The large number of state-owned enterprises established in East Africa are not just about making money. They are significantly different from the royal enterprises. The royal enterprises are the private enterprises of the Hohenzollern family and are different from most of the world's largest enterprises. There is no distinction in most countries. They are for profit. Although they sometimes provide aid to East Africa, the accounts are also calculated separately.

In recent years, Ernst has focused a lot of energy on East Africa, so the development of the Hechingen Consortium has also focused on stability. However, the Hechingen Consortium has grown to the upper limit of what the company can achieve. In one sentence, one million water jobs It is not an exaggeration to describe it as a matter of food and clothing.

 At present, the main role of the Hechingen Consortium is still an investment and control channel, and it is the connection point for technology, capital, talents and markets in East Africa and Germany.

Especially at the technical level, East Africa has not encountered technical barriers so far. The Hechingen Consortium has played a big role because the Hechingen Consortium holds a large number of patents.

With the current development of East Africa, it is not easy for high-end industries to enter the market. It is still conquering the mid- to low-end industries. Of course, some emerging industries in East Africa are also being deployed in advance, especially the electric power and automobile industries that Ernst is optimistic about.

However, he is biting off more than he can chew. The automobile industry has not yet emerged. Ernst just allows Hechingen Energy Power Company to continue to make technological breakthroughs and accumulate experience.

Of course, if possible, Ernst would definitely like to launch the electric power and automobile industries at the same time, but the prerequisite is sufficient funds. East Africa does not have this condition now, and there are too many places to spend money, so Ernst can only focus on improving East Africa first. infrastructure conditions.

"If you want to get rich, build roads first, and have fewer children and more trees." This is the development experience of the Far East in the previous life, so Ernst also continues this approach, and Ernst believes that supporting services should be provided first, and East Africa will develop automobiles in the future. The industry will also be smoother.

As for when the East African automobile industry will be launched, Ernst decided to wait until truck technology is relatively mature to promote it in East Africa. As for cars, it is still necessary to build factories in Europe.

 Trucks and tractors are of great help in improving productivity. However, when cars first appeared, they were completely luxury goods. Their practical functions were not very prominent and they served more of the rich and powerful. Therefore, if we develop automobiles in East Africa first, Ernst feels that it is not very cost-effective, but it is not a one-size-fits-all approach. East Africa can promote the automobile industry on a small scale, mainly to meet the needs of the government and foreign trade.

Of course, Ernst also has a small calculation here, that is, "brand". Ernst has experience in his previous life, so he attaches great importance to the brand effect. Although East Africa will not vigorously develop the automobile industry for the time being, it must first maintain its position as a pit. .

Just imagine, in the 21st century, the "100-year-old car" brand will feel that its style and temperament have been sublimated instantly, and cars are products that are easy to compare with, and both common people and rich people can afford them, so now East Africa does not consider them Focus all your energy on the automobile industry, but also build a reputation first.

So Ernst thought that by then the world's first commercial car would be assembled and manufactured in East Africa and win the title of the world's number one.

As for the test vehicle, the Hechingen Consortium has already made it in Europe, but it is still working hard to improve performance and reduce costs, so that it can directly occupy the market when it is launched, and at the same time directly open the gap with future competitors.

 In addition to these reasons, East Africa is not suitable for the promotion of commercial automobiles. The current economic system in East Africa is considered a semi-planned economy, and the planned economy is sometimes slow to respond to changes in market demand, which is not conducive to the upgrading and development of the automobile industry.

As for the development of the automobile industry in Europe, there is no problem. It is just that the money is made by the Hechingen consortium.

 As for East Africa, the main focus is on improving productivity, so many investments do not take cost issues into consideration and make do with it. The current development model is still very suitable for East Africa.

East Africa is actually similar to a weakened version of the Soviet Union, and the Soviet model has significant advantages in developing heavy industry. East Africa has also fully realized this. East Africa does not have to worry about problems with this model until the third technological revolution.

 A major difference between the economic models of East Africa and the Soviet Union is that East Africa attaches great importance to import and export trade, and it is a complementary economic development model that draws on each other's strengths to offset weaknesses.

 This is also in the 19th century. In the 19th century, there was no so-called bipolar structure and one superpower with multiple powers, but the diversified world structure that the previous Far Eastern Empire had been pursuing in its early days.

Therefore, East Africa does not need to take sides, and can move among various forces without worrying about being hanged on a tree. For example, although Japan is targeted by East Africa, it can choose to cooperate with Britain and the United States, and Tsarist Russia can also cooperate with Britain, the United States, and Austria. wander between.

The same is true for East Africa, except that East Africa strategically cooperates with the Far Eastern Empire at the same time. Although the Far Eastern Empire has many shortcomings, it is large and has many advantages. Therefore, countries around the world are greedy for the sizzling fat of the Far Eastern Empire.

It’s just that East Africa was able to put down its posture, or was more willing to change its sincerity for sincerity, and gained an advantage in the Far Eastern Empire that other powers did not have. After all, standing and kneeling to ask for food, anyone with a discerning eye knows to choose the former, and East Africa Countries that cooperate must feel more comfortable than other countries.

This is also a shortcoming of the East African economic system. It is very similar to that of the Soviet Union. However, Ernst did not have the habit of spending a lot of money. The money earned by East Africa cannot be less. Brothers must also settle accounts clearly. Even if East Africa and Germany The relationship between Austria and Austria is so close.

The Soviet Union did not understand this truth. In those countries that later split from the Soviet Union or the Soviet camp, few of them had good words to say about the Soviet Union. But did the Soviet Union really not pay anything? On the contrary, the Soviet Union made huge contributions to its allies and alliance countries.

 (End of this chapter)