Regional Development Banking
for Jobs and Productivity

The Formula for National Prosperity is simple:
Yes it's possible. Here. Right now. And the key, not surprisingly, is money.

A recent McKinsey report highlights Britain's low productivity growth, and points to several major causes.

The report indicates the need for skill building for workforce and managers, accelerating adoption of digital technologies, updating of machinery and equipment, and critically, improved access to capital - in sufficient quantity and with guaranteed longterm financial reliability to ensure a business is properly set up, and able to maintain the highest international standards in design, production and marketing.

Our current banking system does not provide this. And private capital is capricious and costly.

For serious, reliable investment, a dedicated Development Banking sector can spread growth across the nation, creating jobs and providing the wherewithal for existing companies to increase their competitiveness. Investment targeted regionally can bring industry and growth to traditionally under-developed areas.

Project-secured Investment

Traditional banking practice requires pre-existing assets as security, and loans carry no long-term commitment.

Development Banking avoids these two limitations by making a long-term commitment based on an intimate involvement with the business or project in which it is invested. This facilitates the creation of new business and new jobs, as well as providing secure finance with which existing business can maximize quality and productivity.

The two broad principles of Development Banking
focus on analysis, and commitment.

The Development Bank begins by thoroughly researching each loan proposal from design to production, management and sales, calling on outside expert advice and assistance where necessary. A successful loan recipient will receive full back-up support in a close working and constructive partnership with the Development Bank, both on start-up, then continuously monitored with an ongoing flow of performance data.

With investment risk minimized through thorough, pre-investment research and positive on-going monitoring of physical production, sales, and accounting, the business itself becomes its own security. With each investment secured in this way, the Development Banks do not require capitalization, save for a minimum working capital. The total value of investment is limited only by the spare unused capacity in the economy.

By setting up Development Banks to operate at regional level, focusing on regional and local needs, investment benefits can be spread widely and uniformly across the nation, avoiding the usual pockets of non- or under-development. A percentage of the investment charge should also be set aside to fund apprenticeships and on-location training.

Many of today's successful businesses grew over many years and a long hard climb, starting with minimal capital, operating on a shoestring, and reinvesting every penny of profit. Regional Development Banks can create jobs and industries NOW, with the guaranteed longterm finance needed to maximize productivity and most importantly, maximize quality.

The Formula for National Prosperity is very simple:

Dedicated, Project-secured Development Banking can make it happen.

the Formula for National Prosperity.
But prosperity for all....?

Wages, Prices, and Profits