6th September 2021
When it comes to resource mobilization for Zambia the Split Velocity system (SV-Tech) offers 3 scenarios for generating resources for the national budget. Acceleration of the Zambian economy by 10%, 20% and 42.5%. None of these rates of acceleration are impossible to achieve.
The resources with to achieve this are recovered from inefficiencies in the current design of the circular flow of income (CFI).
……….
government expenditure and planning
with which to meet national objectives
The upper curve in red at $161.5bn should be normal growth for any economy
where poverty is being completely wiped out, where
industry and businesses are thriving. Citizens in Zambia enjoy an ever
improving standard of living. There is no unemployment.
Losses and inefficiencies in the CFI are corrected.
(The economy is using less than half of
the resources for growth available to it.)
.
The bottom curve where GDP is at $8.6bn is for the economy
in its current state, where the CFI is left unchecked. The growth rate is
mediocre at 3%. The economy is losing tremendous
value and productivity currently unaccounted for in
neo-classical economics.
What this means is that there is tremendous hope for Zambia,
a chance to wipe out poverty and usher in an age of
prosperity and unparalleled transformation.
For explanation and a legally admissible examination of how the Split Velocity system works, scroll down below. At a rate of acceleration of 42.5% the SV-Tech leaves 57.5% of the resources available to the system untapped. The SV-Tech system methodology guarantees growth targets will be achieved.
If no effort is made to advance national economic management the average growth rate for the next 10 years for Zambia is expected to be approximately 3%, should there be no further unexpected shocks to the economy such as covid-19. This is shown by the black curve in the graph above. Expect persistently high levels of unmitigated poverty, no significant changes in standard of living and per capita income over this period. This is the current expectation, in terms of economic performance, without accelerated growth. Growth and poverty levels will worsen due to increased population size over this period.
At a 10% rate of acceleration the resources available to the national budget will grow to US$15.42bn after 10 years
At a 20% rate of acceleration the resources available to the national budget will grow to US$33.94bn after 10 years
At a 42.5% rate of acceleration the resources available to the national budget will grow to US$161.5bn after 10 years
The recommend rate of acceleration is 10% – 50%
See the table below
Resources available to government for budget expenditure is maintained at 25% of GDP.
Note that even at a rate of acceleration of 42.5% the SV-Tech system leaves 57.5% of the resources available for resource mobilization in the Zambian economy untapped.
The SV-Tech system is able to also maintain the exchange rate that is desirable by the Central Bank (BOZ) and can even achieve dollar parity US$1 to ZMK1 if this is deemed conducive for the economy.
The SV-Tech is a proprietary, no non-sense system designed using cutting edge approaches in economics and business to ensure that resources are mobilized for government objectives. It is essentially a tool or system for application and implementation primarily through the Central Bank.
Don’t waste time on outdated approaches to national development that have been used over and over without results.
Guarantee a future for the youth and keep the promise to secure their future.
For information on how this national economic management system was conceptualized and designed please feel free to peruse this website.
Split Velocity Solutions Ltd 