Five Year Plans of the Veridian Union
The Veridian Union's Five-Year Plans are a series of social and economic development initiatives. The economy was shaped by the Commission through by plenary sessions. The state plays a leading role in establishing the foundations and principles of fascism, mapping strategies for economic development, setting growth targets, and launching reforms.
Planning is a key characteristic of state capitalist economies, and one plan established for the entire country normally contains detailed economic development guidelines for all its territory.
The Union's ambitious Five-Year Plans have been praised for their efficiency, capabilities and importance to growth and development.
First Plan (1923–1928)
Having restored a viable political base, the leadership within the Commission were prepared to embark on an intensive program of industrial growth and fascism. For this purpose the administration adopted the State Capitalist model, based on directed economic planning.
The key tasks highlighted in the Plan were to concentrate efforts on the construction of 694 large and medium-sized industrial projects so as to lay that the primary foundations for the Union's industrialization; to develop agricultural producers to help in the fascist transformation of the agriculture and handicraft industries; to put capitalist industry and commerce on the track of state capitalism so as to facilitate the fascist transformation of private industry and commerce.
Accumulated investment in capital construction was 55 billion Unions and fixed asset increments reached 46.05 billion Unions, 1.9 times higher than at the end of 1922. About 595 large and medium-sized projects were completed and put into production, laying the framework of industrialization. The gross value of industrial products in 1928 increased 128.6% from 1923.
Gross output value from industry and agriculture rose from 30% in 1922 to 56.5% in 1928, while that of heavy industry increased from 26.4% to 48.4%.
The major problem that arose during this period was the following, Industrial production couldn't keep pace with agricultural production. The main objective was a high rate of economic growth, with primary emphasis on industrial development.
In terms of economic growth, the First Five-Year Plan was quite successful, especially in those areas emphasized by the development strategy. A solid foundation was created in heavy industry. Key industries, including iron and steel manufacturing, coal mining, cement production, electricity generation, and machine building were greatly expanded and were put on a firm, modern technological footing. Thousands of industrial and mining enterprises were constructed, including 156 major facilities. Industrial production increased at an average annual rate of 19% between 1923 and 1928, and national income grew at a rate of 9% a year.
Despite the lack of state investment in agriculture, agricultural output increased substantially, averaging increases of about 4% a year. As the First Five-Year Plan wore on, however, Union leaders became increasingly concerned over the relatively sluggish performance of industry and the inability of trading companies to increase significantly the amount of materials produced for the many large urban industrialization projects.
Second Plan (1929–1934)
This plan was created to accomplish several tasks, including:
- Expanding heavy industry in the Union.
- Furthering the cause of fascism by initiating the Youth Scouts.
- Encouraging the military growth of the Union through industry and transportation.
- Cultivating cultural and scientific development of the state.
The Union became more and more concerned with the growth of the Pax Caliphate, especially in the Northern Gondwana region. The first goal was to bolster military spending and development. Numerous shipbuilding facilities and aerodromes were produced in strategic locations around the Veridian islands.
However, this diverted crucial workers of the raw materials industry into infrastructure and military development, caused a huge decrease in industrial production.
Third Plan (1935–1940)
The Third Plan set out multiple goals to ensure military buildup:
- To spare no efforts to develop raw material extraction, solve problems concerning the lack of resources for production;
- To strengthen national defense, and endeavor to make breakthroughs in technology;
- In order to support agriculture and strengthen national defense, to enhance infrastructure, continue to improve production quality, increase production variety and quantity, to build an economy of self-reliance, and to develop transportation, commerce, culture, education and scientific research.
The Plan also called for the prioritization of national defense in the light of a possible big war, actively preparing for conflicts and speeding up construction in three key areas; national defense, science and technology, and industry and transport infrastructure.
This plan was more successful than anticipated, with the industrial and agricultural goals exceed by 14.1% and industrial gross output value goals by 21.1%. Agricultural gains also exceeded goals, but more moderately, with a 2.2% rise above expectations.