Chapter 292: The Advanced Tax Farming System
In considering how to develop the Matabele Plateau (in today's Zimbabwe), the first step is to boost the local population. For that purpose, the East African government convened a meeting. In truth, this was mostly a discussion session among officials, and in the end, Constantino and Ernst made the final decision.
Fondelein said, "From an economic point of view, the Matabele Plateau right now is basically empty. Aside from the army, there aren't any people, yet there are quite a few local tribes. We can first use those tribes to develop some of the area's resources. But the plateau is very far from East Africa, with Zambia in between, so if we rely solely on land transport, the distance is too long and it's hard to govern. On this, I propose we negotiate with Mozambique, asking them to open a seaport for us. If we can ship goods by sea, we'll greatly improve the Matabele Plateau's situation."
Yalman said, "For security reasons, I'd guess the Portuguese in Mozambique wouldn't agree to such a request. So we'd better not count on Mozambique too much."
Sievit said, "First we should solve our communications problem. In Zambia, we've nearly finished extending the telegraph lines to the southern frontier. Once that's done, we'll immediately continue from Zambia to the Matabele Plateau, so we can stay in close contact with the troops there, respond quickly to emergencies, and handle risks. That's the priority. Then, after we finish that main line, we can delay building the branch lines in Zambia if needed."
Constantino said, "We can also consider the local economy. The Matabele Plateau is already under colonial administration, so our garrison can first mobilize the tribes. Have them clear the land roughly and plant some crops—preferably high-yield varieties like potatoes and cassava—so we can start some initial development. Later, once the land is partly ready, we can hand it over to settlers, which makes everything simpler. As for transport, the Foreign Ministry should talk to Mozambique to see if they'll give us a seaport. If they won't, that's all right; we'll build up the plateau step by step. Regarding telegraphs, once we finish the main line in Zambia, we'll get right to work on the section from Zambia to the plateau, delaying the Zambian branch lines for now."
Sievit said, "Your Majesty, speaking of transport, we can't forget about leveling roads between the Matabele Plateau and Zambia, plus building many bridges over the Zambezi and all those Congo tributaries. Some river sections also need boats to keep traffic orderly."
Fondelein said, "We know how to handle that. We'll mobilize and organize the local tribes for both farming and infrastructure. In the busy farming season, they work the fields. In the slack season, they help build roads and bridges. Meanwhile, agriculture solves the tribes' food problem. As long as we manage grain distribution effectively, we can temporarily turn these tribes into East Africa's hired labor, and once we don't need them anymore, it's easier to kick them out."
Felix said, "Managing the tribes isn't easy, especially in undeveloped areas—vast land with sparse people. Our troops are spread thin, like sesame seeds. So, before enough settlers arrive, we should let tribal chiefs assist East Africa's rule. Besides the hard approach of military suppression, there's also a softer economic way to reduce tribal resistance. We can use industrial goods to raise the local rulers' living standards, leading them into luxury. Then they can't do without our products. Meanwhile, we exchange industrial goods for extra grain they collect beyond taxes. We put that grain into building roads during the slack season. That creates a cycle and massively boosts our administrative efficiency."
East Africa does indeed tax the tribes, especially in newly annexed lands. This is also why local tribes mostly don't revolt much. The way East Africa taxes the tribes is much like the Ottoman "tax farming." Under the pressure of East Africa's strong military, most tribal governments temporarily submit to East African administration as subordinate powers. East Africa makes sure the local rulers get enough benefits, splitting taxes evenly with them, but it's these rulers who do all the hard work. East Africa just shares in the profit.
For now, supporting these tribal governments means less chance of revolt in that wide area east of the Kwango River and north of the Limpopo. If a local group refuses the so-called "advanced" tax farming system, East Africa is merciless, wiping them out and setting an example for others. The rest of the tribal kings and chieftains, wanting to be sensible, comply unconditionally, and their elites even enjoy a better living than before.
Because most tribal groups still practice slavery and have extremely low productivity, East Africa's tax farming basically has a feudal flavor. Together with promoting certain technologies, East Africa pushes the tribes to adopt farming and settle down, so they can be taxed. The original tribal rulers can then share in the improved yields, boosting their quality of life, so they see little point in mobilizing tribal resistance against East African rule.
Of course, these tribal elites do benefit for now, but over time, they might want more than splitting revenue with East Africa. East Africa anticipated that. By the time the tribes become dissatisfied, East Africa will be ready to relocate them anyway, making room for settlers.
Constantino said, "Under tax farming, tribal elites stockpile large quantities of grain. We use industrial goods to buy that grain, then hire the natives in slack times to do infrastructure. Better infrastructure, in turn, helps our garrison and settlers, strengthening our rule there. When we have enough settlers, we move on the tribes. Felix, is that what you meant?"
Felix answered, "Yes, Your Majesty!"
Felix's idea was a good one. As for whether the natives would honestly accept East Africa's arrangement, they basically had no choice. Under East Africa's tax system, East Africa keeps its share through military might, while local tribal chiefs actually get the biggest portion. They simply label part of what they collect as the government's share. After leaving the ordinary tribal slaves and peasants only enough to survive, East Africa exchanges industrial goods with the chieftains for that surplus grain. During the slack season, the tribes, to get more to eat, have to work for East Africa.
Meanwhile, East Africa has already nationalized the grasslands and forests, so ordinary natives can't hunt there. They have to farm to survive, and heavy taxes force them to seek more jobs if they want enough food. Honestly, the happiest ones under forced tax farming are the slaves, who used to work for nothing. Now they at least get a small share of production. Though meager, it lifts their spirits.
That reduces the slaves' urge to resist. Meanwhile, the once-unwilling slave masters see that their rule is actually more stable, and because slaves are more motivated, profits go up. Most importantly, using East African industrial goods, they can further improve their living conditions.
For East Africa, tax farming cuts tribal resistance, funds infrastructure with local labor, and lowers its garrison costs. When enough settlers eventually arrive, East Africa can simply tear up its deals and expropriate the farmland, roads, and housing that the tribes have developed. Right now, tax farming satisfies the tribal lower class, the tribal rulers, and East Africa. All three think their future looks bright.
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