Monday 8th July 2019
Planning Paradoxes:
This excerpt from the GPWN (2010) urges African nations to be cautious when they attempt to analyse why they are poor or how economies grow and what creates growth. A careful study of the modern Circular Flow of Income or CFI referred to as an “operating system” or “economic operating system” in the GPWN shows that the modern economy does not create growth or does so in a very meager fashion. It fundamentally functions from a zero growth position and its allocation process between factors of production is in direct conflict with productivity which adversely affects commerce. This means that the distribution of wealth in the world today is transferred and has a benefactor. If nations are poor, it means they are not considered important, they do not have a benefactor that identifies with them or they do not tow a benefactors line and therefore have insignificant financial and other resources transferred to them. This is the reality. Developing nations need to revise their understanding of economics and developed countries need to be fair and less judgmental when it comes to their willingness to bring poor countries into their fold if international development and wealth is to truly become evenly distributed across the world. The simple rule is that any nation today that is not making progress by correcting losses in the CFI caused by subtraction that appears to be growing quickly or that is doing “great things” in its economy is not doing anything special, so don’t be fooled or avoid being too impressed: its gains are taking place because it is having financial and other resources transferred to it by a benefactor, and any nation doing badly is having those transfers or resources denied.
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