Once the value of Split Velocity and Wealth Creation is understood by development agencies there should ideally be a change in how financing for development takes place.
The world is in dire need of support from development agencies such as the World bank, African Development Bank (AfDB) and the International Monetary Fund (IMF). The problem is that the finances available to these and other development institutions is small in comparison to the problems many countries that need assistance face.
The resources made available by Split Velocity have the potential of changing the landscape for how development agencies use their resources to assist countries. Firstly there is a difference between development planning and accelerated growth. They are not one and the same.
Development planning will generally consist of institutions such as the World Bank and AFDB identifying strategic areas for development in a country. These may include mining, infrastructure, tourism, energy, agriculture, the blue economy and providing the financing to support these sectors. The most professional plans in these areas can be implemented by development agencies. However, once implemented, what are the consequences of the economy growing at 1% or 2%, that is, too slowly to adequately support the long term success of these ventures?
The resources to invest in these areas is limited and to succeed these projects need to operate in an economic environment conducive for their success. Accelerated economic growth is able to provide that environment. Therefore, development planning and accelerated economic growth go hand in hand and are indispensable to one another.
The best development planning in the world today, should not take place without investing in accelerated growth. This is why technologies for accelerated growth like Split Velocity need the support of development agencies and should play a key role in ensuring the success of their ventures. If development planning is the planted seed, accelerated growth is the moisture or rain that nurtures and grows it to success.
Therefore, accelerated economic growth using Split Velocity is not the same as development planning. However, the two processes go hand in hand. Accelerating growth using Split Velocity unlocks financial resources pre-existent in the economy by enhancing the economic environment in which these investments operate.
Investing in strategic areas alone is not enough to ensure industrialization. In essence Split Velocity can enhance development strategies accelerating them towards success once they have been initiated and implemented through development planning. It would allow institutions such as the IMF, World Bank and AfDB to leverage their finances in such a way that they can do much more for the countries they support.
Using Split Velocity to Leverage Development Finance
If you take the time to watch Episode 5 that is based on the Kingdom of Jordan and the IMF support to Jordan, you will see that the Kingdom has significant economic challenges such as its debt having reached close to 95% of GDP which stood at US$38 billion. The IMF was able to provide the Kingdom a loan of US$700 million to help with restructuring processes. The burden and weight of restructuring would have to be born by the citizens of Jordan.
However, the approach to assisting countries can be advanced through Split Velocity technology. If the IMF spent US$700 million establishing a Split Velocity system for the Jordanian government, it would raise the equivalent of GDP (US$38 billion) for the Jordanian economy every year consequently addressing the Kingdoms economic problems without the burden of restructuring being born by the citizens of Jordan.
Furthermore, the IMF loan could easily be paid back, in a very short space of time due to the increased economic activity provided by accelerated growth allowing these funds to be loaned to other countries in need thus ensuring the IMF has greater financial resources at hand for interventions.
Leveraging finance for loans and development is best practice
Split Velocity can be used as a leverage system where a small amount of finance can be used to unlock significant resources within an economy. With advances in technology such as Split Velocity institutions such as the World Bank, AfDB and IMF will find they can serve more countries, spend less on structural adjustments and development planning and allow wealth creation to accelerate these projects and interventions by creating an economic environment conducive for their growth. By spending less on interventions and yet obtain bigger results these institutions will be able to do a lot more for more countries.
Split Velocity protects the economy against shocks
Split Velocity can have tremendous importance in maintaining stability and offering governments alternative tools for mitigating against economic shocks. External economic shocks are the most difficult for developing countries like Zambia to protect themselves from due to the reliance on forex. For instance rising oil prices have today triggered a rise in the pump price of Petrol from K12.97 to K13.75, Diesel K11.09 to K12.01, Kerosine K7.82 to K8.85 and LSG K13.38 to K14.30.
At present without the Bank of Zambia running a Split Velocity system the country is open to being affected by external shocks especially from oil and forex. In future it is hoped that a Split Velocity model will be adopted by the central bank and Ministry of Finance. With this model the Zambian economy can be shielded internally from these external shocks. This is explained in Episode 5. Of course Zambia does not apply a Split Velocity wealth creation model yet therefore we are doing our best in difficult circumstances.
However, the recent depreciation of the Kwacha and increase in the price of fuel demonstrates that as a nation we must begin to consider technologies such as Split Velocity. Government needs to seriously assess the potential of wealth creation to prevent these external shocks from affecting the Zambian economy.
These are small shocks, and there may be more to come and as a nation we need to begin to prepare ourselves to withstand external shocks by supporting technologies such as Split Velocity. Together we can ensure that the Zambian people and businesses rarely ever have to suffer internally from negative economic conditions emanating from outside our economy.
There is a need for Split Velocity and wealth creation to be piloted and prove itself, so that in future we are ready for any adversity. Prevention is better than cure.
Split Velocity Solutions Ltd 