Chapter 1509 - 41: Global Economic Recovery (3)

Chapter 1509: Chapter 41: Global Economic Recovery (3)

"Especially in some backward countries and regions, considering political, national defense, and other aspects, the unlimited expansion of steel production might lead to severe backlashes if not handled properly."

Steel production enterprises in backward countries and regions certainly do not match an industrial nation like East Africa in terms of funds, technology, and talent. However, due to the needs of national development, they have to support the development of the steel industry, which can easily lead to a scenario where there is capacity but overall production efficiency is low and product quality cannot compete in the international market.

If handled improperly, it could easily backfire. Of course, there’s not a lack of solutions for this issue since the growth of the steel enterprise itself is a process from nothing to something, from weak to strong.

Industrial countries like East Africa have developed their steel industry in such a way. Initially, the issues faced by East African steel industry weren’t very different from those faced by steel industries in backward countries and regions now.

East Africa’s solution was also simple and straightforward—shutting out foreign influence, producing and selling domestically. By doing this, protecting the domestic market, they prevented then weak East African steel industry from being stifled by foreign steel giants early on.

And domestic production and sales were based on the protection of the domestic market. Additionally, during the last century, East Africa promoted large-scale infrastructure development, which created substantial market demand, thereby having a positive effect on the domestic steel industry.

However, the fact that East Africa could use these methods doesn’t imply other countries can achieve the same. A crucial point is that many of the current world’s backward countries and regions don’t even have the right to develop independently.

Take India as an example, as a colony of the United Kingdom, the development of India’s steel industry is entirely reliant on London’s decisions. Indians don’t have the autonomous right to decide the development of their national industry.

Therefore, for some countries, if they want to develop national industries, the premise is that they must be able to become independent and control their own destiny.

Although East Africa started as a colonial country, it was always independent and autonomous from the colonial era. During East Africa’s colonial times, there wasn’t a Sovereign Country, but rather the Rhein Royal Family, which initiated colonial activities, continually regarded East Africa as a development base.

Friedrich said: "Therefore, under the current circumstance of blind development in the world steel industry, our East Africa’s steel industry upgrade and transformation indeed suppresses the growth of production in the short term, but in the long term, it is more beneficial to the development of the domestic steel industry."

Once the East African steel industry’s upgrade and transformation are completed, by then, with higher production efficiency, lower comprehensive costs, superior product quality, the East African steel industry will be more competitive, and its ability to withstand market risks and economic crises will also be stronger.

However, achieving this requires time, especially since, compared to other five-year plans, East Africa’s Five-Five Plan, affected by the pandemic, has been postponed. It’s estimated that the complete upgrade and transformation of the steel industry will be done after 1924.

Meanwhile, during this period, steel capacity in Europe and America should continue to rise massively, which is also reflected in other fields of industrial production.

Thus, Friedrich summarized: "Since we know the path we are following is correct, we should more unwaveringly implement it. As for some rumors and hearsay, once time passes, they naturally break themselves, and the situation always remains within the controllable range. Though East Africa’s economic recovery speed is slower than Western Europe and North America, it is also higher than other regions worldwide, which means some minor issues won’t affect the overall national development."