African Entrepreneurship Record

Chapter 303: Chapter 290 Advanced Tax Contract System

Regarding the development of the Matebele Plateau (Zimbabwe), the first step is to increase the local population’s engagement. Therefore, the East African Government convened a meeting on this matter.

Of course, it was more of a brainstorming session among government officials, with Constantine and Ernst making the final decisions.

Von der Leyen: ”Economically speaking, the Matebele Plateau is currently a blank area. Apart from the military, there are no inhabitants, although there are quite a few indigenous people. We can first utilize the indigenous people to develop some local resources. Moreover, the Matebele Plateau is far from East Africa, with Zambia in between. Therefore, considering only land transport, the distances make developing the Matebele Plateau quite inconvenient in terms of administrative management. I propose we communicate with Mozambique to open the sea routes. If we can use maritime transportation, it could significantly improve the environment of the Matebele Plateau.”

Arman: ”For safety considerations, the Portuguese in Mozambique will probably not agree to our request, so it’s better not to put too much hope in Mozambique.”

Sivert: ”Resolving communication issues first is the right way. The telegraph lines in Zambia are almost built to the Southern Border Province. As soon as they’re completed, we should immediately continue extending the telegraph lines from Zambia directly into the Matebele Plateau. This way, we can maintain timely communication with the local garrison, make quick decisions, and respond to sudden incidents and potential risks.”

Constantine said: ”The indigenous economy can be considered. The Matebele Plateau is already in a colonial state, so we can use the garrison to mobilize the indigenous people to start working. They can preliminarily clear the land and plant some crops, preferably high-yield potatoes and cassava. This way, the land can be initially developed, making it much easier for immigrants to take over the developed land later. As for transportation issues, let the Ministry of Foreign Affairs first contact and communicate with Mozambique. If they are unwilling to provide sea access, we can just take steady steps to develop the Matebele Plateau ourselves. Regarding the telegraph lines, after completing the main line in Zambia, we should immediately invest in building the Matebele Plateau segment, while the branch lines in Zambia can be delayed temporarily.”

Sivert: ”Your Majesty, speaking of transportation, we must not forget to level the roads in the Matebele Plateau and Zambia areas, especially the construction of bridges over the Zambezi River and numerous Kongou River tributaries. In some river sections, boats are also needed to facilitate orderly and smooth traffic.”

Von der Leyen: ”In this regard, we have experience. Just as we are mobilizing and organizing the local indigenous people for agricultural development, transportation infrastructure construction can proceed simultaneously. During busy farming times, they can work the fields. During off-season, organize the indigenous people to build bridges and roads, and agricultural development can solve the indigenous people’s food problems. As long as we manage grain distribution properly, we can temporarily use the local indigenous as East African workers. When we no longer need them, it’s easier to dismiss them.”

Felix: ”Managing the indigenous is not easy, especially in undeveloped areas where the land is vast and sparsely populated. Our troops scattered over it appear like sesame seeds. Therefore, it’s best to assist East African governance through the tribal chiefs before the immigrant population fills in. I have an idea: besides the tough military suppression method, we can also control the indigenous people through soft economic means, at least reducing some of their resistance. We could use industrial goods to improve the quality of life of these tribal leaders, letting them indulge in hedonistic pleasures. Thus, they can’t do without East African industrial goods. We can exchange these goods for grain beyond taxes, which can be reinvested in transportation construction, creating a closed-loop system that greatly enhances administrative efficiency.”

East Africa also taxes the indigenous people, especially in newly annexed regions, mostly in this form, which is also why East Africa can minimize local indigenous resistance.

The tax collected by East Africa from the indigenous is more akin to the Ottoman tax farming system. Under strong military suppression, most indigenous governments and tribes temporarily accept East African government management as subsidiary forces. East Africa primarily ensures the interests of the indigenous ruling class, splitting tax revenue with them fifty-fifty, but the work is done by the indigenous rulers, and East Africa merely shares the profits.

Temporarily supporting these indigenous regimes’ continuance has greatly reduced the likelihood of indigenous resistance in the vast areas east of the Kongou River and north of the Limpopo River. Of course, for any indigenous forces that refuse even this ”advanced” tax farming system, East Africa isn’t lenient, choosing to eradicate and set a precedent.

With a deterrent example set, other indigenous kingdoms and tribes unconditionally support East Africa’s tax farming system, recognizing the times as crucial. The upper echelons of these indigenous forces also enjoy better treatment than before.

Since most indigenous forces are in a slave system stage with extremely low productivity levels, East Africa’s tax farming system actually possesses feudal characteristics.

With the auxiliary technology promotion, forcing these indigenous into the agrarian era and settled life, they can only receive taxes once achieved. The original indigenous rulers can also enjoy tax supply from increased productivity, leading to improved living standards for the indigenous leaders, who then stop organizing resistance against East African governance.

Of course, currently, the indigenous ruling class enjoys the benefits, but over time, they will not be satisfied with this. After all, the temptation of monopolizing tax revenue is much stronger than a fifty-fifty split with East Africa.

However, East Africa anticipated this. When the indigenous become dissatisfied with East African rule, it’s about the time East Africa thinks about clearing the local population to make room for East African settlers.

Constantine: ”Under the tax farming system, the indigenous ruling class will also accumulate large amounts of grain in their hands. We can use industrial goods to buy it back from them, hiring the indigenous during off-seasons to modify infrastructure. Improved infrastructure provides convenience for the East African garrison and immigrants, further strengthening our local governance capabilities. Once the immigrant population reaches a certain level, we act on the indigenous. Felix, is this what you meant?”

Felix: ”Yes, Your Majesty!”

Felix’s plan was excellent. Whether the indigenous peacefully accept East Africa’s arrangement is inevitable.

Under the East African tax farming system, besides the portion taken through military strength, the indigenous leaders take the biggest share, in the name of the East African government, collecting more taxes from their forces.

The production left for indigenous slaves and civilians may barely allow them to survive. Through industrial goods, East Africa acquires resources held by slave owners and chiefs, investing them during off-seasons. These indigenous people must accept East African employment to eat better.

Because East Africa has confiscated grasslands and forests, prohibiting the indigenous lower class from hunting, they can only survive by farming. The heavy tax burden forces them to take more jobs to support themselves.

In fact, at the initial stage of enforcing the tax farming system, it was the indigenous slave class that felt the happiest. What used to be labor for the slave masters now allows them to achieve personal gain, meager as it is, spiritually fulfilling the slaves’ needs.

Thus, the resistance level of slaves diminishes. Even unwilling slave owners find the governance more stable, and with increased slave motivation, they witness a significant rise in their gains.

The main advantage is that through East Africa’s industrial goods exchange program, they can enjoy the convenience of industrial goods, and their quality of life continues to substantially improve.

East Africa can use the tax farming system to mitigate indigenous resistance strength, complete infrastructure construction, reduce garrison costs, and once the immigrant population increases, they can unhesitatingly sever ties. The lands, roads, and houses developed by the indigenous can then be confiscated.

Thus, the current tax farming system satisfies the indigenous lower class, the ruling class, and East Africa, making everyone believe in their bright future.