Split Velocity is in line with the World Bank’s focus on Human Capital
At present large scale investments in an economy tend to push growth and an increase can be observed in GDP. However, what tends to happen is that this growth increases without similar increases in development. The consequence is that despite relatively high levels of FDI in an economy poverty levels remain very high defying higher levels of growth. This happens essentially because expenditure on non-human capital tends to be much higher than what is spent on human capital.
Split Velocity as a new financial technology or Fintech has unique characteristics. One of these is that it ensures financial resources allocated to Non-human Capital [Industrial Capital] are consistently equal to financial resources allocated to Households [Human Capital] within the economy. Every transaction taking place in the economy reinforces the financing equilibrium between development and growth allowing them to take place at the same time. Split Velocity Technology is therefore perfectly in line with the World Bank’s global effort to accelerate more and better investments in people for greater equity and economic growth.
The World Bank’s Human Capital Project
When allocations to human-capital (Households) and non-human capital (Industry) are unequal: Episode one explains how poverty is created by a process referred to as implosion or subtraction in the circular flow of income.
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