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Chapter 464: The Three Major Rating Agencies

When Mirabeau saw various types of industrial data from the past year displayed on a single chart, clearly showing the trends, his eyes lit up.

"Your Highness, how did you come up with such a method? It's truly astonishing!" He flipped through the different statistical charts one by one, utterly captivated. "Heaven truly favors you! Look at these charts—in just a few minutes, one can grasp last year's industrial situation."

Whereas he had just spent nearly an hour explaining it.

These charts dramatically increased work efficiency.

He immediately thought of more applications, exclaiming excitedly, "Perhaps we can promote this method of data statistics for factory production and administrative management."

Bailly added from the side, "And scientific research. It would make papers much clearer and easier to read."

"Yes, it's an absolutely brilliant innovation!" Mirabeau turned to Joseph. "Your Highness, I dare say that if government departments and factory managers all use these charts to handle documents and data, the efficiency of the entire nation would vastly improve.

"I suggest it should be promoted nationwide as quickly as possible, and perhaps even made mandatory for government documents."

Joseph was somewhat taken aback by their enthusiasm. He had merely intended for Mirabeau's report to be more concise and efficient, never imagining it would have such a profound impact.

He tapped his forehead. Having been accustomed to statistical charts, he had subconsciously dismissed them as nothing extraordinary. Mirabeau was right; this small technique could greatly boost management efficiency, almost akin to 18th-century Excel.

Joseph then nodded to Mirabeau. "Very well, please organize some scholars to help me compile this chart-based statistical method into a manual and print it in large quantities. As for how to teach it to managers..."

Mirabeau immediately interjected, "Your Highness, we could integrate this statistical method into the Production Standardization system, with Gensonné's management consulting firm responsible for teaching it."

Joseph nodded. What seemed simple in later eras truly required a specialized company to promote in the 18th century. Much like in the early 21st century, one might still need to attend a training course to master creating Excel spreadsheets.

Speaking of the Production Standardization system, Joseph couldn't help but think of another issue: factories adopting Standardized Production should be rewarded, as they contributed to the nation's overall increase in productivity.

He first considered tax reductions, but quickly shook his head slightly. Whether it was the industrial development zones or the promotion of automatic looms, tax rates had already been lowered considerably. They truly couldn't be reduced further, especially since France still carried over two billion in national debt.

Perhaps establishing credit rating agencies should be put on the agenda.

With rating agencies, companies that achieved Production Standardization could receive higher ratings. While a rating itself didn't generate profit, it was a testament to a company's strength. Both investors and consumers would undoubtedly favor higher-rated companies. When seeking bank loans, highly-rated companies would also find it easier to get approval.

Furthermore, he could use rating standards to guide companies' development. Once the rating agencies gained sufficient influence, they could even adopt the practices of later Western nations and introduce "sovereign credit rating" services.

Sovereign credit rating, as it was called, involved assessing the creditworthiness of a country or region. This included various aspects such as national governance, economic performance, policy effectiveness, the strengths and weaknesses of social structures, and governmental financial strength.

It was well-known that the three major rating agencies of later times could practically control the world. Arbitrarily lowering a country's sovereign rating was enough to scare away foreign investment, and in severe cases, could even trigger national economic crises!

Once the rating agencies were established, France would gain another economic weapon. If a nation dared to wage war against France, it could first face the shock of successive sovereign rating downgrades. Even if it couldn't collapse the opponent's national debt, it could at least increase their financing costs and significantly raise military spending pressure.

So, who would be best suited to establish these rating agencies?

Joseph pondered, 'First, they absolutely cannot appear to be affiliated with the French government, otherwise they wouldn't seem objective or independent.'

Gensonné's consulting firm seemed quite suitable. For the promotion of Production Standardization, its staff already exceeded a thousand people. A portion could easily be spun off to establish a rating agency.

Then, the French Chamber of Commerce could step forward, collaborating with major banks to establish another rating agency.

Additionally, one could be founded in an allied nation of France. After all, if sovereign ratings were to be issued for other countries, and all rating agencies were French, some nations would inevitably suspect foul play.

However, no matter who spearheaded their establishment, or whether they were based in France or abroad, the controlling interest behind these rating agencies had to remain firmly in his hands.

Gensonné's company, of course, went without saying; it was created from the outset to promote Production Standardization, and he himself provided the initial funding. The spun-off rating agency would naturally be controlled by him.

The Chamber of Commerce couldn't possibly ignore the royal family's opinions, and the funds also came from the Bank of France, so gaining control wouldn't be difficult.

As for the foreign rating agency, more careful consideration was needed. It would be best to find a local organization to act as a 'white glove,' with France providing capital for a controlling stake.

The location could be Spain, as they were, after all, relatives of the Bourbon family.

Joseph roughly outlined the plan for the rating agencies, then continued discussing industrial development with Mirabeau, his gaze inadvertently sweeping over the line graph he had just drawn. Suddenly, something felt off.

He picked up the chart and examined it closely. Before, it was just dense data, making it difficult to spot issues. Now, looking at the graph, he discovered that while the first nine months of the previous year showed continuous growth, from October onwards, growth in all industries except papermaking and brewing began to slow down.

He pointed to the lines on the chart and turned to the Minister of Industry. "Count Mirabeau, look here. It seems industrial development has encountered some problems since October?"

"Yes, Your Highness," Mirabeau replied, nodding briskly. "This is also one of the main points I intended to report to you today.

"The momentum of industrial development indeed shows a trend of slowing down, primarily due to two factors.

"Firstly, insufficient investment. After investing in the Luxembourg iron mine, the Industrial Development Fund had little money left in its accounts. Most investors interested in industry had already completed their investments in the first half of the year, with some later moving into the Southern Netherlands coal mines. Now, new investors are becoming increasingly scarce."

The Minister of Industry paused, then continued, "Secondly, the return on industrial investment is low. This has also led new investors to remain in a wait-and-see state, and factories are reluctant to significantly increase production."