Planned Economy

After dismissing the cabinet, Ferdinand shouted toward the door, "Steward Karl, notify our people to come for a meeting."

"Very well, Grand Duke!" the old steward Karl replied in a booming voice.

Half an hour later, Ferdinand gathered everyone and said, "Gentlemen, please sit. You all came to Bulgaria with me from the Austro-Hungarian Empire, and by now, everyone basically understands the current situation."

"Bulgaria is merely a small country; it is not easy to develop and grow strong. Now, I need your help." After speaking, Ferdinand looked toward those below.

"Respected Grand Duke, it is our honor to serve you!" Franz and the others said in unison.

Ferdinand was very satisfied with their reaction and said with a smile, "Alright, enough idle talk. Let us first expand our industries. Although the Bulgarian market is still small, the competition is also minimal!"

"But Your Excellency, given Bulgaria's terrible transportation conditions, it will be difficult for our products to be competitive internationally!" Welian said gloomily.

"Oh, Mr. Welian, I know it is difficult, but don't I still have you! You can consider focusing on the Balkans market; the domestic market, Greece, Serbia, and even Turkey are all good choices!" Ferdinand knew of Welian's concerns and suggested.

"Very well, Your Excellency, I understand. If it is only that, it shouldn't be much of a problem, but they are all paupers; the profit margins won't be very high!" Welian reminded him.

"Of course, I know that. For the international market, don't we still have the factories in the Austro-Hungarian Empire? Your focus is still there for now. The main competitors for the flour mills here are family workshops and the transportation issues!" Ferdinand said with some frustration.

After speaking, Ferdinand scanned the others and said, "Surely you all don't have any problems, do you?"

Looking at the silent crowd, Ferdinand said dejectedly, "It seems we must build roads first! I will have the cabinet draft a railway plan as soon as possible and issue government bonds."

Although he had long been prepared, Ferdinand still felt very depressed; he had a massive headache over how Bulgaria's future should proceed.

He calculated in his heart: "The high-end route, how does one take the high-end route? Internal combustion engines, automobiles, airplanes, tanks, and the like are still quite distant; these are not things Bulgaria can produce."

"Even if we managed to produce them, we might sell them internally, but once we go outside, we would be beaten to a pulp by enterprises from other places. Our industrial foundation is just too weak!"

"For now, I should just slowly farm. There is truly no way around the lack of industrial foundation; it needs to be supplemented slowly and requires state support."

"I should first convince that group of naive cabinet members. Forget it, I'll just use big data directly. Young people have no patience; I can implement a Five-Year Plan. Adopting a planned economy suits their appetite, and right now, there are no capitalists in Bulgaria to oppose it."

In the spring of 1887, the breeze blew through the Sofia Royal Palace.

The grass, which had slept through the winter, had now awakened. It stubbornly poked its head out of the ground; although only a hint of tender green could be seen, it was full of vitality.

After five months of investigation, the cabinet concluded that Bulgaria's natural resources were scarce, and the previously submitted industrial plans had long since been tossed into the Mediterranean.

"Alright, everyone, cheer up! Just because natural resources are scarce doesn't mean there is no way to compensate for it," Ferdinand comforted them.

"Your Excellency, do you intend to launch a war?" Stambolov's eyes lit up as he spoke.

Ferdinand thought to himself: "The Bulgarians are truly the Prussians of the Balkans; they are indeed warlike. Just look at this cabinet, and you'll know. No wonder in history, with a population of over four million, they mobilized over 1.2 million troops!"

He rolled his eyes and said, "No, we do not have the strength to launch a war right now! Although Bulgaria lacks mineral resources, its geographical conditions are quite superior, and the citizens are very supportive of the government. I intend to implement a planned economy to reduce unnecessary resource waste."

"A planned economy?" Everyone looked blank, casting their gazes toward him.

"Yes, a planned economy. You might not understand it well, so let me put it simply."

"Let's take an example: railways. I plan to build one thousand kilometers of railway within five years to improve Bulgaria's transportation. If private capital is insufficient, the government will issue bonds to build it."

"One thousand kilometers of railway, built in Bulgaria within five years?" The Minister of Transportation, Clinton, asked in disbelief.

"That is correct," the Grand Duke said with a smile.

"Then I support it," Clinton stated directly.

"This is only one part of it; Bulgaria's main industries will all be involved," Ferdinand said confidently. Seeing the reaction of the crowd, he already knew the result.

"Alright, quiet down. Discuss it after I have finished speaking!" Ferdinand gestured with his hand.

"This is my preliminary proposal; you may take a look." After speaking, Ferdinand handed a copy of the Bulgaria Five-Year Plan to the group.

First, focus on developing agriculture, hire agricultural experts, vigorously promote advanced agricultural production technology, achieve a 30% increase in total agricultural output within five years, and increase farmers' income;

Second, the railway plan: build one thousand kilometers of railway nationwide within five years to improve transportation conditions. The required funds will be resolved by the government issuing railway bonds;

Third, military: 1. Establish a primary arsenal and basically achieve domestic production of light weapons within five years. 2. Complete the reorganization of the national army within five years, implementing a reserve system and conscription. 3. Establish a National Defense University;

Fourth, industry: Encourage the development of heavy industry. Considering Bulgaria's lack of resources, provide support to key industries such as steel mills, machinery plants, and military enterprises, exempt them from taxes, and prioritize the use of domestic products under equal conditions;

Fifth, education: 1. Establish literacy classes in factories and rural areas, encourage young students to teach the public during holidays, with the content focusing mainly on legal education, and control the illiteracy rate to within 15% within five years. 2. Establish a public comprehensive university; given that this is a special period, it will temporarily only offer science and engineering courses. 3. Build three new normal colleges to train teachers and lay the foundation for future compulsory education.

"The above five points are the core of this Five-Year Plan, which can also be called the Five-Five Plan. If you have any suggestions, you can add them; if you have any objections, you can raise them," Ferdinand said with a confident expression.

"Respected Grand Duke, can I complete this? This clearly violates market laws!" the Minister of Economy, Michael, asked uncertainly.

"Of course you can. Don't worry about those bullshit market laws; they are nothing more than rhetoric drummed up after taking money from capitalists, all meant to fool people! You must be confident. You are all the elite of Bulgaria; you will certainly be able to complete it, and perhaps even exceed the targets!" the Grand Duke encouraged.

"Respected Grand Duke, how will the funding be resolved? With Bulgaria's fiscal revenue, I fear it will be very difficult to complete," Stambolov, the Prime Minister, asked.

"The main expense here is the railway plan. By issuing railway bonds, we can set the interest rate a bit higher to absorb private capital. If that is not enough, we can even sell them abroad. We can pay off the debt later with the revenue from railway operations; at most, the government can subsidize a little."

"As for the arsenal, I can invest in it, which will save the government a sum of expenses."

"The remaining funding gap is not large. With Bulgaria's fiscal revenue, it should be barely manageable; at most, we can issue some education bonds. Are there any other problems?" Ferdinand said readily.

"Respected Grand Duke, why are there no targets for steel and coal? These are indispensable things for a nation to be strong!" Michael asked in confusion.

"It is very simple. Bulgaria's coal reserves are too small; we cannot violate the laws of nature to conjure them up! And the iron mines are all in the Balkan Mountains. Before the railway is completed, all raw materials for building a steel mill would have to be imported; it would be better to just import the steel directly!" Ferdinand explained.

"If everyone has no further questions, then we shall decide on this. Leave the specific details for you to refine, and then submit them to the National Assembly for a resolution!" Seeing that no one spoke further, Ferdinand announced the decision.