A Growth and Underinvestment structure is simply an elaborated Limits to Growth structure where the growth inhibitor is part of another Balancing Loop with an external standard and some delay. The real nasty thing about this structure is that the two balancing loops form a single reinforcing loop which inhibits growth.
The growing action which initiates this structure
influences an increase in the growth. The resultant
growth then simply influences more of the same
growing action, producing the reinforcing growth
characteristic.
As was indicated in the Balancing Loop areas of concern, noting
growth forever. Growth sooner or latter produces some affect which
tends to limit the growth. As growth moves in
the desired direction it also influences an increase in some growth
inhibitor. This growth inhibitor subsequently
impedes the growth.
This system can be enabled to grow more if the growth
inhibitor is reduced. As the growth inhibitor
interacts with a defined standard it develops
a perceived need for action to develop some sort
of inhibitor avoidance. This inhibitor avoidance
will, after some delay, reduce the growth inhibitor.
The annoying part of this structure is the delay associated with
the inhibitor avoidance interaction with the
growth inhibitor.
What happens is that the growth inhibitor works
in a shorter time frame reducing growth. The
reduced growth adds less to the growth inhibitor thus eliminating
the perceived need. As such the system is limited
in its growth because the perceived need
for action is actually undermined by the systems own actions.
By the time it is realized that inhibitor avoidance action
needs to be taken the need dissolves itself and growth
levels off at a level much lower than what could have been achieved.