In this way, cost-less credit expansion financed equity formation from savings created by the investment rather than relying on either foreign finance or savings created by reducing domestic consumption. Selective monetary policies could not only be used to reduce the cost of loans for small businesses and farmers, but also reduce the need for foreign debt and equity throughout the economy. This would reduce the export of dividends and interest to increase the income of residents while reducing the risk of a currency meltdown. Economists do not possess either the language or concepts to provide the intellectual tools for understanding how real world development works. A fundamental concept missing from the paradigm of economists is the fact that development must be self-financing.
Development is the process by which the incomes per person in a community is increased.
The only way in which this can be achieved without people working harder, or for longer hours, is to increase their productivity through the use of technology. This means that the technology itself must become self-financing. Unless it can pay for itself, it cannot generate additional income to produce development. Take for example a third world fisherman who buys an outboard motor for his sailing boat to allow him to double his catch. The income of the fisherman is doubled to provide sufficient cashflow to payback the bank loan used to finance the technology while also raising his income.