Chapter 459: Work Conference
Starting in 1876, with the completion of the railway bridge over the Zambezi River along East Africa's Central Railway, trains could now reach the Zimbabwe region directly. To further develop the interior, East Africa began expanding its version of agricultural cooperatives along this major artery. "This year, we plan to establish over 1,500 modern agricultural cooperatives along the railway in Zimbabwe to promote the development of the interior," stated the Minister of Agriculture at a government work meeting. Agricultural cooperatives are not unique to the East—regions in France and Germany with developed small and family farms also have similar organizations, which are essentially trade union-type groups formed voluntarily by farmers. French law once stipulated: "Agricultural cooperatives and their alliances are a special category of enterprise distinct from civil and commercial companies, possessing independent legal status and full civil rights." These were variable-capital enterprises.
East Africa's agricultural cooperatives differ from those in France, as they are state-led, semi-political economic organizations. Land has not been privatized and remains allocated by the kingdom. Their primary functions include scientific planting guidance, seed provision, grain purchasing and storage, livestock and slave management, equipment maintenance, and organizing agricultural infrastructure projects.
They fall under local East African governments but are directed by the East African Agricultural Corporation, which sits at the top of the agricultural value chain. Although the corporation only exists within East Africa, it connects to the Hechingen Consortium's industrial clusters in Germany and Austria, supplying them with raw and basic agricultural products, while also maintaining ties with commercial groups and overseeing East Africa's grain exports.
The corporation's main business is procurement and sales, making it a syndicate-like agricultural monopoly. Unlike regular syndicates, it is vast and functions to enhance East Africa's competitiveness in global agricultural markets. This is not corporate competition—it is competition between nation-states. It serves as a powerful weapon against the U.S. and Russia in the global grain trade. Though American grain producers are strong, they appear fragmented compared to the Agricultural Corporation.
Even though massive, the corporation still relies on Hechingen-linked food companies, supermarket chains, and distributors across Europe to export its products—so outside East Africa, few have even heard of it. This creates some jurisdictional overlap with the Ministry of Agriculture, but it suits East Africa's current national conditions. The corporation is staffed by specialists, whereas the Ministry, due to lower education levels, is less effective at driving agricultural progress.
"For the new villages, we suggest expanding tobacco cultivation. Recently, the German government announced tobacco monopoly regulations. This isn't good for profits—more taxes are due. To maintain dominance in the German market, we must lower our production costs and preserve our edge in the German-speaking regions."
Bismarck pushed a new law to increase government revenue, but it hurt the Hechingen Consortium. Tobacco taxes were already high, and now license fees for buying and selling tobacco rose too. But complaints were useless. The German government held all the cards. Unlike Austria-Hungary, where the Consortium could use media pressure to force compromises, centralized Germany didn't allow that.
Still, East Africa could accept this. The goal was to keep selling tobacco to Germany. Domestic consumption in East Africa was decent but not as lucrative. Local sales were more about recirculating currency.
"In recent years, countries have raised tariffs, especially on steel and agricultural imports. As a steel importer, we're not too concerned. But agricultural tariffs have hit us hardest."
Ernst said, "Domestic consumption must absorb excess grain. Interior development requires a stable food base. Alongside population expansion inland, we must also recruit more slaves this year to build roads, irrigation, and other infrastructure. I also plan to open several mines along the Zimbabwe rail line. Mining consumes grain too."
Overproduction of food isn't a problem—just build infrastructure to use it up. There's always land left to develop, which requires manpower and food. Thus, surplus grain gets consumed.
As for using surplus grain to improve living standards? Don't be naïve. Honestly, it would harm East Africa's culture of diligence. Though East Africans work hard, not as intensely as some countries. Add welfare, and people might stop striving altogether.
Argentina is a prime example from Ernst's past life. Citizens wanted welfare with no effort. Politicians used benefits as campaign promises. No one focused on real work or construction. Argentina wasn't even developed, so the welfare system relied on debt. Without industry, it collapsed into a debt crisis and national stagnation.
Of course, that's a simplified take. Argentina had many problems. But fundamentally, the government fostered a culture that discouraged effort—politicians and citizens played an abstract game to keep the broken ship sailing.
To be fair, Argentina had conditions that made slacking off sustainable—better agriculture than the U.S., a smaller population, and if basic needs couldn't be met, the military could always take over. The cycle would repeat forever. This pattern is common among underdeveloped countries—especially in South America and Africa.
East Africa, as a new nation, had performed well. The Hechingen royal family had no reason to stoop to the level of such dysfunctional parasites. Amid global instability, East Africa had a real chance to become a major player on the world stage.
Don't be fooled by the number of great powers in this era. Precisely because there were many, the spoils were unevenly split—creating more opportunities for other nations. Japan capitalized on this to join the elite. This was a form of multipolarity.
East Africa's conditions weren't top-tier—but far better than those of Italy or Japan. Its potential outstripped every major power except the U.S. and Russia.
"We must fully utilize our interior iron and coal resources and continue increasing our steel production. By 1880, we must surpass one million tons annually."
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