industrial lord

Chapter 795 How to Develop the Economy
Thomas felt like a big shot. When the baker heard that he hadn't been able to buy home goods because the market was closed, he immediately contacted a familiar merchant to deliver the goods.

In half a day, all the necessities for the lodgings were arranged, and a widow was hired as a cook.

Pavel, on the other hand, encountered a minor problem. The motorcycles and other goods he was transporting by train were in short supply due to the railway system prioritizing the transport of food aid from the Duchy of Wessen. He was told that they would take several more days to arrive.

Seeing this, Thomas took the initiative to invite his new friend to stay at his newly settled place. Pavel readily agreed and moved in with his light backpack.

After settling in, Thomas sent a telegram home asking his wife to come over, and Pavel also told his friends that his itinerary needed to be slightly adjusted.

After leaving the telegraph office, the two decided to wander around the city and familiarize themselves with the surroundings.

However, the city of Budvis is now completely engulfed in an unprecedented "purification campaign".

On almost every main street, people were busy working.

They scrubbed the exterior walls of buildings and street surfaces with coarse scrubbing brushes and soapy water, trying to peel away the grime and moss that had accumulated over decades.

Some of the old, dilapidated stone slabs were pried up and replaced with new ones, inevitably creating dust in the process.

Shops facing the street were also required to clean their windows and signs, ensuring they were spotless.

This massive undertaking disrupted many roads, and the air was filled with a strange smell of soapy water, dust, and sweat.

Thomas and Pavel, who had intended to explore the area thoroughly, soon lost interest due to their difficulty walking.

“Looks like today isn’t a good day for a walk,” Pavel said, brushing the dust off his shoulders and pointing helplessly to a bustling tavern next door that was always packed even during the day. “Why don’t we go in, sit down, lay low for a bit, and try some local flavors?”

Thomas nodded in agreement; the beer here was indeed quite suitable for him.

The two pushed open the wooden door, and a wave of heat, a mixture of the aroma of malt liquor, the steam from stewing food, and the body odor of many people gathered together, rushed towards them.

The tavern has a large interior space with thick logs serving as beams, and animal heads and yellowed hunting pictures hanging on the walls.

They finally found an empty table in the corner, ordered two large glasses of locally brewed, foamy beer, and some snacks to go with them.

After a few sips of cold, mellow beer, the fatigue and the troubles from outside seemed to ease considerably.

Pavel's gaze swept over the diverse patrons in the tavern—there were merchants talking and laughing loudly, hunters drinking silently alone, and craftsmen with weary faces.

“Mr. Thomas,” he suddenly spoke, his voice clear amidst the noise, “I have a question I would like to ask you.”

He paused, organizing his thoughts, and said earnestly, "If... I mean, if you were the mayor of Budvis City, how would you develop the local economy?"

He looked up, his eyes filled with genuine confusion and a thirst for knowledge.

"To be honest, although I am still studying at the military academy, I always feel uneasy when I think about my homeland that has been destroyed by years of war and then see the vibrant city of Wessenburg."

"I want to do something, but I always feel overwhelmed and don't know where to start, lacking a clear direction."

Thomas glanced at Pavel with some surprise.

He never expected that this seemingly pampered young nobleman, whose future seemed to be all about the battlefield, would be thinking about such a question.

Thomas picked up his glass, took a slow sip, and used the action to gather his thoughts.

The tavern's hustle and bustle seemed to vanish, and this corner became exceptionally quiet; even a person with their ears perked up could hear the two people's conversation.

“Sir Pavel,” Thomas put down his glass, his tone calm and cautious, “I must admit that I have limited knowledge of the specific circumstances of Budvis City. I know very little about its resources, industrial base, financial situation, and population structure.”

"As Grand Duke Wessen said, one has no right to speak without investigation, and specific plans must be based on detailed data and in-depth research."

Pavel nodded slightly; the principal's words were frequently emphasized in the military academy.

Thomas changed the subject, his gaze becoming focused, and said in a deep voice, "However, some basic principles about local economic development are universal, which may be of some use to you."

Pavel immediately took it seriously. Thomas continued, "First and foremost, it's about differentiated development; we must reject shoddy imitation."

He held up one finger as he spoke.

"Don't blindly copy the models of big cities or successful regions; every place has its own unique characteristics."

What does Budvis City have to offer?

"My initial observations suggest that there is potential for a railway hub connecting the north and south, nearby agricultural output, a famous beer, and perhaps some undervalued local handicrafts or unique products."

"The key is to find niche markets where we have what others don't, and where we are better than others."

Pavel listened intently, his eyes lighting up as if he had caught something.

“Secondly, we need to have an ‘industrial ecosystem’ mindset, not just focus on ‘individual enterprises’.” Thomas held up his second finger. “Bringing in a large factory is certainly good, but more importantly, we need to cultivate the upstream and downstream supporting industries around that factory.”

"For example, if a metal processing plant is brought in, then the related ore supply, primary casting, parts production, logistics and transportation, and even equipment maintenance should all be taken into account."

"Only by forming industrial clusters can we generate agglomeration effects, reduce overall costs, and better withstand market risks."

“A single company may go bankrupt due to poor management, but a healthy industrial ecosystem is much more resilient.”

“Third,” he held up his third finger, emphasizing, “'Business environment' is the core competitiveness in the long run.”

"More important than temporary tax breaks and cheap land are a stable, transparent, and predictable policy environment, efficient, clean, and convenient government services, and a fair, just, and secure legal environment."

"What businessmen fear most is constantly changing policies, extortion and bribery, and having nowhere to seek redress when their rights are violated."

"If we can take the lead in this area, we can attract and retain truly visionary businessmen even without special preferential policies."

"This requires tremendous determination and patience to build."

"Finally, and most importantly," Thomas's tone softened, but became more serious than before, "economic development is ultimately for 'people,' a new type of urbanization that is 'people-centered.'"

"To make people want to stay here, and even attract people from outside, simply having job opportunities is not enough."

"They also need to provide high-quality education to ensure their children have a bright future."

"We need reliable medical care to protect our health."

"A rich cultural life and a good ecological environment are needed to enhance happiness."

"Without people, all development is just empty talk."

"We must ensure that the people living here can feel real progress and dignity."

Pavel listened intently; every word Thomas said was like a piece of a puzzle, gradually outlining the vague thoughts in his mind into clear outlines.

His previous thinking was more about "what to develop," while Thomas pointed out "how to develop" and "why to develop in this way."

The eavesdropper at the next table suddenly became breathless, as many things he hadn't understood before suddenly became clear.

Delnets' biggest question about the "Maria Project" was why Grand Duke Wessen was so willing to donate to hospitals, schools, and theaters at any cost, even though these were not profitable at all.

Now I understand, this is because Grand Duke Wesen treats the city of Budvis as his own, and is taking care of the people's worries.

This debt of gratitude seems impossible to repay.

Thomas continued speaking, sharing both familiar topics from the newspapers and his observations from over a decade in politics. Pavel listened with great interest, and Delnets was also greatly inspired.

(End of this chapter)