Starting from the Planetary Governor - Chapter 394

Chapter 393, Economic Reform and Development Plan

The alliance system has always been ignored by the outside world, but it is actually Gu Hang’s trump card.

It is very suitable for rapid development from a poor and blank situation. Welfare benefits meet the needs of the lower-class people to improve their living standards and provide a way to promotion. The centralized system can quickly carry out planned, large-scale and rapid development in certain key areas according to the needs of the rulers.

And there is also a very core point, the results of these rapid developments do not need to be shared with the people. Although the people will also be promoted under the job grade system, they will be promoted one level a year, and even after reaching level D, it will generally take several years to be promoted. The increase in welfare and allowance costs brought about by this is very different from the benefits of the rapid development of the entire social productivity.

The intermediate development results are eaten up by the owner of collective production, that is, the alliance government.

This system has many advantages, but also disadvantages. For example, it doesn’t matter if the alliance government eats it up. After all, in addition to paying imperial taxes and military construction, most of these wealth will be reinvested in social development and construction. Infrastructure construction, more factories, expanded production capacity…

The infrastructure renewal, urban expansion, more and larger living space, more jobs, and more promotion opportunities brought about by this will in turn improve the quality of life of the people.

But if the system becomes rigid, these development results that are eaten up will fall into the hands of the bureaucracy, or will be terribly wasted due to wrong decisions and systemic corruption. If the people cannot eat and the government has no money for development, then it will be a big mess.

This problem is also something that Gu Hang has always been vigilant about. The assessment department of the administrative department will supervise. The Anti-Corruption Agency under the Alliance Legal Center, the Demon Hunter Organization, and the Alliance Internal Affairs Department, the three-tier structure, all have relevant supervisory powers and even supervise each other.

At present, the entire system of the alliance is running quite well, and it has basically achieved what Gu Hang expected.

This is reflected on the Angry Owl Star, the Black Arrow Star, and Korojia. There

is no need to say much about what the first two are like. On Korojia, the alliance reform is going quite smoothly.

In the past year or so, Gu Hang’s attention was certainly on the Fachers family, but in fact, the reform of Korojia has never been relaxed, and has always been advancing at a very rapid speed.

In any reform area, relying on the tens of thousands of loyal officials trained by Gu Hang from Zhongsi Academy with gift points as the core backbone, many new officials who graduated from the academy urgently, and officials drawn from the Angry Owl Star and the Black Arrow Star, and officials from the original Korojia planetary government as assistance, the alliance reform can be quickly implemented.

Once the materials are in place and the ranks are determined, many problems will be solved directly. There is no need to fight a security war, and the troops can be transferred.

The alliance is not in a hurry to reform Korojia, but to bite off one hive after another, one block after another. Administrative officials bring materials to clear the way, provide jobs, carry out political reforms, and develop industries. The methods have been tried and tested.

In places where there is no time to promote reforms, you can also promote it first. With the good life and treatment enjoyed by people in other regions, it is enough to tell the truth. Many places are looking forward to it. When the policy is really implemented, there is very little resistance.

After getting the support of the grassroots people and the relevant propaganda is in place, the alliance has absolute military force. The remaining people, forces, and inherent interest groups that may hinder the promotion of reforms are all chickens and dogs, and they can be easily eliminated.

But going smoothly in Korojia does not mean going smoothly in Faches. The situation in the two places is completely different. Faches is relatively developed to begin with, and it is not okay to copy and paste.

But if the alliance system cannot be brought to Faches Three Stars, it will be very bad, which will directly affect the alliance’s control over these three stars and cannot fully integrate these three worlds into the alliance.

It is not impossible to rule like the empire does to most of the world, but it is very fucked up.

From the old coalition government, the alliance government has obtained their production reports for decades. In the past 20 years, Faches Three Stars has basically no economic growth, maintaining an annual industrial and agricultural output value of about 26 billion.

From this perspective, the development level of the three planets of Faches is not actually 3, at most it is about 2.6.

It is no wonder that the Faches family reacted greatly to the adjustment of the development level of the three planets under their command to level 3. Although it does not seem as terrible as the 100 billion fine at first glance, this incident will cause harm for thousands of years.

For the empire, although it is reasonable to judge the development level of a planet, it should adopt a dynamic balance strategy. If the development level is high, it is okay to collect more taxes; if the development level is difficult, then collect less, and it is reasonable to lower the development level.

However, although this mechanism exists, it is actually useless. If the development level is raised, the star zone government will verify it and report it quickly, and it will go through the process. Basically, the star zone has the final say; however, if you want to lower it, it is too difficult. After the star zone is determined, it has to report directly to the center of the empire, and each layer in the middle may be defeated.

Lowering it by one level means countless benefits and less taxes. No government at all levels wants to bear such a responsibility.

Basically, it cannot be approved unless the situation is really special.

The 0.4 development degree lost by Fache Samsung will be borne by the family forever in the future – unless it really develops.

The tax that the Fache family originally received from Samsung was actually around 2.8 billion. Excluding the 2 billion in taxes, there was a little over 800 million left every year, and life was enjoyable.

But if it rises to 3 billion, it will be unbearable.

If Gu Hang does not copy the alliance system and continues to use the system of the old coalition government, then what is the point.

After all, after Gu Hang got Fache Samsung, he has to pay another 200 million every year?

This is unacceptable.

Gu Hang has no regrets about giving it to local development. Investment is for greater returns in the future.

But this money is purely extra taxes, so he will definitely not do it.

It is not impossible to increase taxes and vicious harvesting, but it will definitely have a great negative impact on local social production.

Only by copying the alliance system can the original shackles be broken and surplus value can be better collected.

At the same time, only by implementing the alliance system can the black technology in Gu Hang’s hands be brought into play.

To this end, he and his government officials have been conducting research and studying the local data of Faches for more than a month.

Up to now, the officials of the Union Government headed by Ossena who came to take over the Faches Three Stars have already had a preliminary strategy.

It was Ossena herself who reported this strategy to him.

The first point is to reform the finance first, abolish the currency issued by the original Faches regime and circulated only in Faches Three Stars, and replace it with the currency issued by the Union.

In the next two years, Faches’s original currency can still be used, but the subsequent issuance will be mainly based on the Union currency, a dual-track system; Faches people can also exchange the old currency they originally held for the new currency at an exchange rate within these two years.

On this basis, the second step is to invest in the construction of state-owned factories. On the one hand, it is to build new factories and provide more jobs; on the other hand, it is to nationalize the industries originally held under the concept of the “Fachs Family”.

The old government of Faches did not directly control the enterprises. However, the direct and collateral branches of the Faches Family have a lot of industries and wealth. Gu Hang will definitely not be polite about these.

With these two major foundations, it involves direct reforms in people’s livelihood.

Workers, technical experts, clerks, and government employees working in state-owned factories will be assigned ranks and receive allowances according to their ranks. Some of the benefits originally attributed to the ranks will be cancelled and converted into currency at the local price of the planet Fachers and included in the allowances. Most of the benefits cancelled are in-kind benefits, including food supply, daily necessities supply, and entertainment supply; but medical benefits, education benefits, and housing security benefits will be retained.

Nationalized hospitals and educational institutions will be open to all people with ranks for free. They will enjoy different levels of medical and educational benefits according to their different ranks. People of different ranks will also have different basic housing conditions, which will also be guaranteed by the government.

People working in these newly invested and built alliance factories and government employees who swear allegiance to the alliance government will have relatively high ranks at the beginning, in order to ensure that their living standards are not lower than in the past; but in order to avoid taking on too much financial pressure, the number of people is limited. Only highly technical personnel in factories, important management positions, and important employees in the government will have clear ranks.

Normal workers and employees will maintain their previous salary levels, but without job ranks, they will not have the corresponding housing, medical and education benefits.

Then, the cost of education, medical care and housing will be increased to make job ranks more popular.

Later, the path for normal private enterprises to be nationalized will be opened. The original managers will remain in office and become state-owned factory managers with alliance job ranks. The specific job ranks will be determined according to the scale and income of the original enterprises. After being nationalized, the corresponding workers and employees will also get job ranks.

All state-owned enterprises will be supported by the alliance government. Mainly from the technical and product procurement aspects. The products produced by state-owned enterprises will never have to worry about sales. As long as they meet the requirements under the inspection of relevant quality supervision departments, all products will be handed over to the state for the payment of imperial taxes, welfare distribution, market sales, interstellar trade exports… For non-state-

owned enterprises, government procurement is not completely absent, but in the case of priority nationalization, it is likely to be affected.

But in terms of market sales, it will not be affected – if the price and quality cannot beat the state-owned factories, then it is their own problem.

The whole strategy of Ossena is actually a dual-track system, which adds state-owned industries to the original economic foundation of Faches. By binding benefits, it ensures that the “established” personnel such as state-owned factories and government employees have the same or even better treatment as in the past in an environment of high welfare and high stability.

At the same time, it restricts the upward path of the people and enterprises outside the system.

This is to drive the private sector into the system.

But the core difference is that the alliance’s system is open to the people and enterprises. Especially for the people, almost everyone is welcome. Those who have ability to join state-owned enterprises, government systems, medical and education industries are welcomed by the alliance; those who have no ability but are willing to work can now also have a salary income that is not worse than that of private enterprises; in the future, the alliance has a clear plan to expand the system establishment, and will eventually include all people in the job grade system.

However, for the owners of enterprises, the conditions are relatively much harsher. Originally, they were the bosses, and all the surplus value of the employees was in their hands. According to their own abilities, if they do well, they will make a fortune; if they do poorly, they will go bankrupt. But now, if you choose to transfer to a state-owned enterprise, although the rank of the enterprise owner will be set higher, it is still a big gap compared with the previous situation where all the income belonged to oneself.

Moreover, although you can stay in office, you can only stay and get promoted if you do a good job; if you do not do a good job, the output, efficiency and sales are not good, you may be demoted and transferred to other enterprises as a low-level staff; if you are corrupt or have serious faults, you will have to go to jail or even be shot.

But if you don’t transfer to state-owned enterprises?

Then you will be squeezed to death by state-owned enterprises, and then you will have nothing and you will not even get a rank.

Unless you are really awesome, you can still guarantee good benefits under the series of problems such as taxes, marketing, lack of government procurement, and high wages to offset the welfare advantages of state-owned industries, which will lead to rising costs. Then you are awesome and deserve to make money.

The ultimate goal is to hope that Fachers Samsung will gently transition to a normal and ideal alliance system environment under these reforms: a state-owned economy as the main body and private economy as a supplement.

Of course, these series of reforms have made a lot of noise.

But there are steps in the implementation.

All policies will not be pushed up all at once, but will be reformed step by step. First, nationalization will be pushed in important areas such as energy, mining, smelting, military industry, heavy industry, etc., and the others will come slowly.

“… We estimate that after the corresponding policies are introduced, our public expenditure will increase significantly. After the reform begins, the total tax revenue of Fache Samsung will continue to decrease. However, with the profit after deducting the expenditure from the income of state-owned enterprises, it is expected to provide no less than 2.5 billion in revenue in the first year, and increase by 5% year by year. After five years, Fache can be self-sufficient and no longer need subsidies from the Union government. It will complete the imperial tax and start to generate a surplus.”

Ossena carefully recounted their estimates and summaries, and gave her five-year economic reform and development plan according to Gu Hang’s requirements.

Gu Hang listened very carefully.

This is essentially to spend money first, and on the premise of ensuring people’s livelihood and existing productivity, bear more losses, and gently promote the alliance system to finally achieve the effect he wants.

————

I will start a business trip for a week tomorrow…

(End of this chapter)