The CGM model
how long term growth is created
The CGM growth model is the foundation for CW. To create a deeper understanding for CW Connecting World we here present an abstract of the vital parts of CGM and its implementation in CW.
The idea with the CGM model is to concentrate the work at the very core that in our opinion has the best potential to generate a lasting and long term growth, a core that we call The Worldland.
For a definition of the cores in the CoreGrowth- Model (CGM), see the blue figure below.
CW defines the way to economic growth in a society as:
“Long term and sustainable economic growth can only be achieved through a
constant flow of earnings that has its origin outside of the core where growth
is to be achieved.”
The Inland (not to be mixed up with the homeland or the inland in the homeland) consists of companies, organizations, the public sector and others that conduct activities within the service and trade sector. They are all dependent on revenues from each other or from companies exporting to the Outland. They all constitute an important part of a country’s infrastructure but do not contribute to the real growth in a country, the growth that creates sustainable jobs. Many of these company’s are likely to be able to expand into the Worldland if only give a chance. In the Inland you can also find the new companies that have the potential to grow in the Worldland if they only got the opportunity. We call the bulk of the growth created in the Inland for service growth. It is this kind of growth that constitute the main growth in many economies, economies that never can live by themselves but constantly has to get nourishment from growth in the Outland.
The Outland (not to be confused with another country or abroad) consists of all the companies that partly or totally get their revenues from the Worldland. They create growth and contribute automatically to revenues and job creation for companies in the Inland. We want more companies from The Inland to find their way to the Outland. Many have the possibility but don’t know how. We call growth created by companies in the Outland for useful growth. It is this kind of growth that give nourishment to the companies, organizations and the public sector situated in the Inland.
The Worldland is the global market. Here we can find the multinational companies, but also the ordinary people and all the small and medium sized companies in our global world that can generate growth and new possibilities. The Core Growth Model points to a very simple fact. It is not in the Inland or the Outland that growth and wealth are to be created but in the Worldland where the largest possibilities for revenues that creates a long term, lasting and sound growth are to be found.
Similarities and differences between the three cores in the Core Growth Model
Both the Inland and the Outland belong to the same geographical region, for instance a country or a region. The Worldland on the other hand is its own geographical region. From every company’s own perspective, the Worldland consists of every country and / or market that is situated outside its own core position.
For us, both the interaction and the understanding of the activities between the three cores constitute a central point in our program. The Inland consists manly of service institutions and infrastructure of the highest standard, functions that give nourishment to activities in the Outland. All of the activities in the Outland are mostly focused on generate their revenues from the Worldland.
A construction of intertwined active clusters
We want to point out the importance that CW is launched in as many countries as possible in clusters to be able to reach an optimal result. CW focuses its work on assisting companies in a region to create revenues from new markets in the Worldland.
It will be advantageous during the build up phase, if every participating country starts in a few geographical regions. The countries and regions are thereafter intertwined into an active cluster. CW will form the structure of the land – and regional clusters in a way that new country’s and regions easily can be added. The more countries and geographical regions that form a part of a cluster, the faster and better result can be reached. We can compare this process with fission process in a nuclear power plant. The differences between the geographical regions and countries are the strength that creates the biggest advantages in each others markets.