African Entrepreneurship Record

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, and 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 be reduced." 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, but 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 setting up 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, and 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 domestic 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 prioritizing 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 their scope of 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, at this stage, East Africa will at least not have as many poorly established enterprises as European and American countries. For example, the UK has only nearly 40 million people, less than half of East Africa. The number of enterprises established between 1906 and 1907 is about two or three times more than the entire Second Five-Year Plan in East Africa. It is estimated that many enterprises can do business by hanging a sign, and they will go bankrupt if there is any 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 will be affected, the normal operation of enterprises must be guaranteed, and production capacity will be released to the domestic market. At the same time, in response to the problems in the European and American economic crisis, my country's industry will be further optimized."

The economic crisis is also a process of survival of the fittest, especially reflected in the field of enterprise 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 East Africa has no burden 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 that the Soviet industry, especially the light industry, is difficult to replace itself, which will lead to the quality and diversity of its own light industrial products being difficult to compete with Europe and the United States.

The historical trend is mighty, and East Africa's industrialization cannot go against the tide, especially the development of light industry. Originally, under the current economic system in East Africa, the development of light industry is not as flexible as that of European and American companies. If it does not refer to European and American companies and update its own light industry in a timely manner, it will inevitably lay hidden dangers for the future development of East African companies.

Fortunately, East Africa's five-year plan has never been relatively radical, so increasing the workload of the government and enterprises will also cause serious impacts. 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 has been greatly affected, especially the pressure on East African domestic export enterprises to complete. With the development of the economic crisis, there is a surplus of industrial products in the world, and the market consumption capacity has declined. East African export enterprises have to digest the excess capacity through price cuts and other means.

The industrial recession in the European and American markets has also had a certain impact on East African ore and agricultural product exports, 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.