《Reincarnation as a Prince in another world. Have to solve this Bad Administration》Chapter 43
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"Your majesty, we are about to go bankrupt." said Hermann looking extremely tired.
"I don't think the kingdom's finances will go bankrupt that easily. Our revenue is also increasing by a lot in the past few months due to our reforms, isn't it."
"Your majesty, due to all the development and road projects you have initiated, we don't have a lot of money. The country has taken a lot of loans from the banks but we can't take anymore loans and our bonds have been cold in the international market. The military expansion plan has also been sapping a lot of our finances and due to that, we are 2 months away from bankruptcy."
"Wait a minute, Hermann. Are you making the government finance all of the projects and not outsourcing it." I asked Franz in an angry tone.
"Yes your majesty, I did that so that we will have control of all the institutions." He said in a confused tone.
"Are you dumb, Hermann. Don't you know that we have make investors from other countries invest in our projects. No government in the world can sustain all these projects. I thought you would be able to understand this as the minister of finance." I said in an intense tone. Is he just dumb or should I praise his skills for being able to sustain the projects for this much time. What countries normally do is outsource the projects to companies and give them some priveleges so that they could recover the cost.
"Your majesty, you said that you don't want the capitalists to have too much influence so I thought government should finance these projects" He said with sweat on his forehead.
"What you should have done is make sure the projects are profitable but make sure at the same time that noone can recover the costs. If they are investing in roads, make sure that the roads will connect some villages so that they can be barely profitable. When an economic crisis comes along, the roads will not be profitable and the investors will have to sell most of the shares to the government 1*at the price of cabbage. We will then buy those shares and become the majority shareholder in the road companies. The company will have corporate management so there will be no bureaucratic corruption so we will be able to turn over a profit and have control of the institutions in our country in a legal manner."
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He slowly nodded and left the room cautiously. Looks like he is also scared of me. Anyway, from the research I did this is one of the best ways to have control of most of the institutions in your country but at the same time making sure there is no bureaucratic corruption. This is also a full legal operation as the investors are choosing to invest and sell shares at their own discretion. I am also fully displaying the forecast of what would happen in the best case scenario so the government is also not fooling anyone.
"Your majesty, there is a messenger from the western empire." said Felix.
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