Chapter 252: Chapter 173: Population, Production, Trade
Osenia’s report had Gu Hang nodding frequently.
The increase in population was something that Gu Hang cared deeply about.
According to the information she provided, as well as the documents at hand, the total population directly governed by the New Alliance had reached as many as 2.4 million.
Among them, the core governing area was the Twin Cities of Revival.
The population of Weixing City had reached 550,000, with its main industries being heavy and military industry.
Industries based on alloy steel transformed a large amount of raw materials into alloy metals, which were further processed into various industrial components; Wu Jiarong’s research institute continuously churned out new production lines (through the Black Box), sending them to the Waste Pit Industrial Zone to establish new factories or expand existing ones.
Those who migrated and entered the short-term intensive training courses operated by various factories and enterprises became job-ready workers after completing the trainings. As soon as the corresponding production lines were in place, new workers would be filled in immediately, and production would begin right away.
Revival City now had 930,000 people and the city construction was still ongoing, with its main industries being various light industries, production of consumer goods, and supplying population needs. Main production industries included textiles, food, various appliances, furniture, construction…
Beyond that, Revival City was also an administrative and trade center, with a large population engaged in clerical work as well.
A higher population scale also heralded the development of a relatively advanced service industry. Cultural and entertainment sectors were still few, but the catering industry had already developed quite a bit.
This was different from Weixing City. To solve the problem of meals in Weixing City, besides cooking at home, the main reliance was on company canteens, which distributed food according to job ranks.
Since Revival City did not have large, centralized factories like those in Weixing City, the catering industry would become a point of supplement to solve meal issues.
This brings us to a new policy implemented by Osenia to stimulate economic vitality.
To avoid the rather static industrial development after job ranks were tied to duties, and to prevent economic activities occurring only when the Industry Department issued construction for factories, shops, and city infrastructure, Osenia encouraged ordinary people to utilize their intelligence and start their own businesses.
Not to embark on large-scale entrepreneurship; big projects would be handled by state-owned enterprises.
But to open a small restaurant, a convenience store, or even just a roadside stall; or further, if they had a unique idea, establish a small factory, create a private construction team, or organize a logistics team to transport goods for construction sites, factories, shops… in short, anything.
The specific incentive was that people of a certain rank could use their rank as a guarantee to apply for entrepreneurship funds, submit a relevant entrepreneurship report, and upon approval, they could open their business.
The higher the rank, the more support funds they could receive.
If the entrepreneurship failed, rank would be reduced; if successful, rank would increase according to the status of the new industry’s manager.
However, regardless of whether it was a restaurant, convenience store, or factory, the ownership belonged to the state, but a certain dividend would be paid out.
In simple terms, it was like proposing a project within a large company, submitting the project report to the boss or management, and if approved, set to work. If you win, you get promoted and receive a salary increase, along with stock options; if you lose, the company incurs losses, and you bear responsibility and demotion.
Moreover, if it’s just a stall, you don’t need a particularly high rank to run it, and if it fails, the punishment isn’t very severe; a deduction from the allowance is enough.
In addition, Osenia opened another loophole: entrepreneurship could also be funded with one’s own money, eliminating the need for a guarantee. If it failed, there would be no demotion and one’s own money would be lost; if successful, rank would increase and the earnings would be one’s own.
This was equivalent to opening a private economy alongside the main public and planned economy to increase economic vitality.
So far, since it was encouraged, the conditions for using rank as guarantee to apply for entrepreneurship funds were quite lenient. Those with low ranks who had good ideas, or who conformed to the Industry Department’s industrial development direction, could easily obtain startup capital. The extent of demotion for failure wasn’t too large, and most of the time, under the guidance of the Industry Department, they wouldn’t incur losses.
Near factories and construction sites, setting up a small restaurant or even a stall heating synthetic starch blocks generally would not result in a loss.
In the future, if it’s felt that a certain direction has developed enough, or even overheated, or if there are too many losses… in short, if there are issues, the application process will be tightened, the threshold raised, and the penalties for guarantees increased. Anyway, it’s a means of regulation.
In general, while the collective state-owned economy is the absolute mainstay in the Twin Cities, the private economy was encouraged to add vitality and create jobs.
Currently, based on ‘Tax Currency’, the total monthly production value of the Twin Cities can reach about 80,000 Tax Currency. This is the absolute core area of the New Alliance.
Other areas, when added together, can manage about 5,000 to 6,000 Tax Currency.
Besides the Twin Cities, the other regions in the newly planned Central Province, Central-North Province, and Gaota Province, including those remaining small settlements, Rubbish Town inclusive, were also transforming towards the Twin Cities’ system. The main output was focused on consumer goods, ensuring the basic needs of the population.
But those small settlements couldn’t guarantee production efficiency at all.