Chapter 1506 - 40: Regional Economic Cooperation Organizations 3

Chapter 1506: Chapter 40: Regional Economic Cooperation Organizations 3

However, Friedrich certainly won’t point this out, and other countries, as long as they’re not brainless fools, won’t expose East Africa’s ambitious intentions. For all the nations attending this time, their purpose is always just one thing, which is to strive to gain as much benefit as possible.

Crown Prince Friedrich said, "Regarding the establishment of the Southeast African Common Market, the essence lies in all of us being united, thus leveraging our respective strengths."

"For instance, for resources that you originally lack the ability to develop, or goods you cannot sell, we in East Africa can provide funding, technology, or channels to help you develop or market them."

"The final result of this is that everyone benefits, while simultaneously stimulating the vitality of regional economic development, helping each nation escape the current plight of economic depression. Why not do it?"

Following this, East Africa also proposed its specific construction opinions on how to build the Southeast African Common Market.

Friedrich said, "The first step involves reducing or even eliminating regional tariff barriers to promote the free flow of goods. Likewise, you can also use this platform to market your advantageous products to more regions."

"Secondly, led by us, East Africa, with all countries participating, we establish the Southeast African Development Bank to drive resource development within the region, technical industry cooperation, helping each country build its advantageous industries, and enhance regional competitiveness."

The primary function of the Southeast African Development Bank is to provide loans to organizational members, while East Africa can also increase the international standing and liquidity of the Rhine Shield through this financial institution, while strengthening East Africa’s control over surrounding industries.

Regarding this point, other countries readily accepted it, as from the current perspective of the Southeast African region, only East Africa has the capability to provide financial support to help them achieve regional development.

Most economically weaker countries rely heavily on the important funding method of borrowing for economic development. Besides East Africa and Belgium, the economic conditions of other countries and regions within the Southeast African Common Market can be described as challenging.

Belgium is considered an economically well-off country, but its size is too small to have the capability or the courage to compete with East Africa on this issue.

Friedrich continued, "Additionally, we need to integrate and optimize the industry structure within the region to avoid redundant construction and vicious competition, delineate market shares for similar products, achieve resource sharing, and coordinated industry development."

This essentially means solidifying the industries within the Southeast African Common Market, clarifying the development directions of key industries for each. Undoubtedly, East Africa will hold the advantage.

Of course, East Africa cannot take it all. Since it’s a collaboration, other members of the organization must also benefit, such as transferring some low-end and heavily pollutive industries that are unsuitable for East Africa’s development.

Regarding this, Friedrich also provided specific feasible examples, such as how both the Abyssinia Empire and East Africa are premium coffee-producing regions. However, due to past technological and production efficiency reasons, Abyssinia has long been suppressed by the competition and pressure from East African coffee plantations. East Africa can relinquish a certain market share, supporting the development of Abyssinia Empire’s coffee plantation industry.

By doing so, East Africa naturally will not suffer losses. With the development of East Africa’s economy, labor costs have risen, making coffee plantation, an industry heavily reliant on intensive labor, increasingly unsuitable for East Africa’s development.

Therefore, transferring the coffee plantation industry to the Abyssinia Empire can not only solve the labor cost problem but also because of Abyssinia Empire’s geographical location, it will not escape East Africa’s control.

Furthermore, while some of the lowest-end agriculture is transferred to the Abyssinia Empire, in other aspects, breeding, planting technology, fertilizers, pesticides, agricultural machinery will surely be provided by East Africa, while downstream industries like processing and sales remain controlled by East Africa, ensuring that East Africa could not possibly suffer a loss.