African Entrepreneurship Chronicles: Rise of a Hohenzollern Prince
Chapter 1019

Light Industry

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As time marched on, the contradictions between Japan and Russia grew increasingly acute. Accompanying them, numerous industrial projects across East Africa under the First Five-Year Plan were completed and put into operation.

The First Five-Year Plan was a vital national policy for rapidly advancing East African industrialization in a short period. It also caused East African industrial goods output to enter a phase of further rapid growth beginning in 1903.

"From 1901 until now, East Africa's industrialization process has continued to accelerate. Vast quantities of industrial products have achieved domestic production, but once these products are manufactured, they must inevitably face an unavoidable question: who will buy them?"

"Since the 1890s, the state has begun creating a unified national market. Yet relying solely on the domestic market to sustain East African industrial production, while feasible, also brings considerable negative effects and gives rise to distribution conflicts. Such conflicts cannot possibly be eliminated in a short time."

"Therefore, our country must rely on foreign markets to ease the instability in domestic supply and demand. Even in the early stages of industrialization, the rapid production of large quantities of industrial goods can lead to supply exceeding demand. Exporting goods can, to a certain extent, alleviate the lack of unity in domestic distribution issues."

Why had the Soviet Union's first two Five-Year Plans flourished? Aside from the exceptionally favorable circumstances of the worldwide economic crises at the time, the most important reason was that it created an enormous consumer market through redistribution, allowing Soviet industry to enter a virtuous cycle once its industrial system had been established.

East Africa was similar to the United States in that both created vast domestic market demand through colonial methods. The immigrant population had originally been proletarians in the truest sense, possessing neither material property nor jobs

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