How the Economy Learns

The eight-stage feedback loop that turns activity into intelligence, and intelligence into development.

Explainer2 min readEditorial draft

In brief

  • Eight stages turn the economy’s own activity into evidence for its next decisions.
  • The final link, intelligence informing development, is what makes it a loop and not a line.
  • Learning needs candour: bad quarters are reported as plainly as good ones.

Most institutions are measured by others. The Sanaa Sanifu Economy is designed to measure itself, and to learn from what it finds. That is the purpose of the economic feedback loop: a cycle of eight stages in which the economy’s own activity becomes the evidence for its next decisions.

Fig. — The economic feedback loop
1 Verified creative production2 Verified value3 S₵ recognition4 S4 participation5 Economic activity6 SSI™ · GCP · PI · TRI7 Economic intelligence8 Further developmentECONOMIC INTELLIGENCE

The cycle begins with verified creative production and ends with further economic development, and in between the work passes through verified value, S₵ recognition, S4 participation and economic activity before it reaches SSI™. There the three measures (GCP, PI and TRI) turn activity into economic intelligence, and that intelligence informs what the institution does next.

The last link is the one that makes it a loop rather than a line. Intelligence is only useful if it changes something: a rule clarified, a process tightened, a gap addressed. This is why the annual State of the Economy matters, because it is where the institution says in public what it learned and what it will do differently.

The eight stages
StageSystemWhat it adds
1 Verified creative productionVerificationA dependable record
2 Verified valueValuationValue the economy can reason about
3 S₵ recognitionS₵Monetary recognition
4 S4 participationS4Holding, movement, settlement
5 Economic activityThe economyReal transactions and production
6 SSI™: GCP, PI, TRISSI™Measurement
7 Economic intelligenceSSI™Understanding
8 Further developmentSASENIA changed rule, process or priority

Learning also requires candour. A loop that only records good news cannot correct itself. For this reason SSI™ stands apart from the systems it measures, and reports falls as prominently as rises.