Chapter 21 Cooperatives and Insurance
For the ethnic minorities on the grasslands and the herders who depend on the weather for food, the greatest suffering is natural disasters such as snow and drought, which cause more unnatural deaths from famine and frostbite than all disasters. In order to completely dismantle the idea of those nobles who opposed the merger into the Great Song Empire, Li Ji sacrificed the three weakest nirvana of the ten magic weapons to buy people's hearts, that is, unified purchasing and marketing, production cooperatives, and insurance.
In a poor and white place, the establishment of a stable ruling order must have a strong resource control force, and Li Ji, who has advanced cases to learn from, did not hesitate to choose the most powerful magic weapon in the economic policy after the founding of New China.
Unified purchase and marketing is to purchase all the products of farmers and herdsmen at a fixed price, except for the necessities of life, and sell them to the processing and consumption departments of the Chenji system and related partners at a relatively small profit price after the unified concentration of these agricultural and animal husbandry products.
The advantage of this policy is that it can increase the economic radiation power of the Huangshui Valley and the Amdo region, greatly increase the price of agricultural and animal husbandry products, integrate the backward nomadic economy and small peasant economy into the market economic system of the Chenji system, and at the same time control the money bags and dining tables of the vast majority of the Tibetan nobles.
Li Ji, who had seen the economic pattern of the great scenes of later generations, could not stay in the stage of primary economic policy like the ancients, such as the tea and horse trade and strictly prohibiting the outflow of strategic materials such as copper and iron to foreign forces. The most important thing for an economy backed by a strong production capacity is to smash the economic structure and reactionary forces in all backward areas through active opening up zones.
The so-called reactionary forces are all the conservative ants that hinder their dumping and enclosure. At least in terms of industrial chain integration and optimal allocation of resources, no contemporaneous organization or individual can compete with Li Ji.
Production cooperatives are the control organizations that guide farmers and herdsmen to increase their production capacity and living standards explosively. Like the cooperatives of later generations, this powerful network is the only network for the exchange of resources and consumer goods. The production of rural and urban areas is traded in cooperatives, which is conducive to the unification and control of all economic resources; It is also conducive to the implementation of the unified purchase and sales policy; It is more conducive to the control of the pace of expansion of various industries according to the surname, so as not to appear the losses caused by the blind production of farmers and herdsmen caused by the information asymmetry of the market economy.
For the technicians and engineers who continue to stay in the Huangshui Valley to direct production, being regarded as gods and benefactors by farmers and herdsmen is far less than owning shares and positions in cooperatives. Each 'educated youth' has enough privileges to become the emperor of the soil and the shares of cooperatives are in line with the bargaining chips they pay, Li Ji, who has never been stingy, generously divides the entire Qinfeng Road layout of the various large and small cooperatives into thousands of reading companies, village and town-level cooperatives are the grassroots, all the shares belong to the residents of each village and town and the technical management who guide production, the shares of county-level cooperatives belong to officials at all levels and the Tubo aristocracy, and the head office of the prefecture and city level and Qinfeng Road is the head office in the hands of the Chenji Group.
The reason for not holding shares in grassroots cooperatives is simply that the largest channels for manufactured and consumer goods are in the hands of the head office. As long as 90% of the cooperatives' access to the goods sold is in the hands of Chenji Group, the throat of these cooperatives is in the hands of Chenji.
The advantage of this is also the advantage of stabilizing people's hearts and buying officials and Tibetan nobles, as long as they get on the boat, Li Ji is not afraid that they will dare to disobey. With shares that can pay a large amount of dividends, those technicians and powerful factions will use their strength to maintain the cooperative, and serve the farmers and herdsmen within the coverage of the cooperative with the attitude of serving their fathers. In this way, the potential of the cooperative's employees and shareholders can be maximized to realize Li Ji's plan to push down the conservative forces in Tibet.
The difference between the cooperatives and the public ownership system in the Celestial Empire is that private ownership can provide everyone with the motivation for self-interest and reduce the disparity between the rich and the poor caused by privileges. In the later trade network, the scissors gap and the income gap between urban and rural areas can also be solved by reducing the prices of consumer goods such as fertilizers and seeds, and raising the purchase price of agricultural and animal husbandry products.
Insurance is a weapon of mass destruction. The headquarters of the newly born Qinfeng Road Insurance Company is in Lanzhou. The only insurance is the production surname insurance for natural disasters, as for property insurance, life insurance, traffic accident insurance and other products have not yet reached the time to launch. With a minimum payment of 500 copper coins, you can get at least 2 yuan of compensation according to the degree of damage after encountering natural disasters such as snowstorms, plagues, droughts, fires, etc., which lead to a reduction or even a loss of harvest in your agricultural and animal husbandry industry. If the collection is lost, you can get up to 30 times the insurance payment.
Of course, this compensation ratio is also based on a large number of data on the frequency and extent of natural disasters in various parts of Qinfeng Road. 51% of the shares are held by the yamen of the three divisions of Qinfeng Road and the yamen of various state capitals, which is equivalent to using the credit of the political axe that basically no one has used on a large scale to ensure the credibility and compensation strength of the insurance.
Li Ji, who was angry with the prime ministers in private, also went through a set of legal procedures for the establishment of a monopoly department within the system of political axes. The speed of the formation of the upper and lower passes the qi is amazing, and the time to set up the Qinfeng Road Insurance Company only took a month. Counting the time spent back and forth, it took just over three days for the decision-makers to agree to a series of well-prepared proposals and articles of association from Lee Ki. Fan Chunren, who was the prime minister at the time, said that if the insurance system progressed smoothly in Qinfeng Road, he would strive to implement it nationwide in a few years.