Accelerated Economic Growth: Wa lala, wa shiala

Monday 14th October 2019

The accelerated growth theory behind the GPWN was completed in 1994/1995 and initially debut as a Superconsumption model. The theory was continually improved upon, more succinctly explained further updated and officially published in 2010. In 2019 it is referred to as a Split Velocity Model.

A Split Velocity model currently represents the most advanced model or system in Business, Finance and Economics with which to achieve accelerated economic growth.

If understood and even mildly applied it will create extraordinary economic growth balanced with economic development moving an economy from average performance into a position where its growth begins to exceed economies following conventional economic growth strategies and policies.

An economy in which this theory is applied will eclipse and inevitably dwarf all other economies managed on weaker conventional approaches to economic and finance management.

The best application of this model will be one that that rapidly builds on domestic consumption by a steady and rapid increase in per capita incomes that lifts millions out of poverty and creates a new middle class that supports increasing levels of output reflected in higher GDP growth rather than dependence on exports..

The Superconsumption model recommended that central banks eventually have two official currencies – “A Tale of Two Currencies”. Each of these currencies would be managed in such a way that one pushed industrial growth while the other propelled consumption thereby working simultaneously to neutralize subtraction (implosion) in the process creating unprecedented accelerated economic growth. An example of the use of two currencies can be found in China, one of the only stable, rapidly industrialized economies in the world to sport two official currencies (since 2004) – namely the CNY and the CNH.

Although the book Greater Poverty and Wealth of Nations (GPWN) debuts the Superconsumption model it created and developed, it advances this model to the Split Velocity system which does not necessarily need two currencies, it can use one currency to perform the function of the dual currency system. The Split Velocity system is faster, much more powerful and more advanced than the dual currency Superconsumption model, as a tool for managing guaranteed economic growth.

Phenomenal economic growth similar to that achieved by China shown in the graphic below can be achieved using a Split Velocity system.

At its current pace predictions are that China’s economy will overtake that of the US by 2028-2034.

A dual currency Superconsumtion model is quite impressive and can achieve phenomenal growth. However, even this phenomenal growth does not compare to the speed, power and financial system stability evident in the more advanced Split Velocity system.

This is testimony to why governments today, like Zambia, must pay attention to losses and inefficiencies in the CFI. The economy determines every aspect of a government’s existence and there is a need to recover these losses to not only improve socio-economic development, but stay at the cutting edge of advances in national economic management. A nations very existence is dependent on paying attention to this facet of the economy.

Countries that embrace these advancements will move ahead, even eclipse and leave behind what may be considered the most advanced and most powerful nations in the world today.

As the African saying goes “Wa lala, wa shiala.”