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Date: 2018-07-22 Page is: DBtxt001.php L07-STATE-ALL-THE-CAPITALS

STATE
ALL
THE CAPITALS
CAPITALS FOR ALL THE SOCIO-ENVIRO-ECONOMIC SYSTEM
(I) SOCIAL CAPITAL

SOCIO ... more
(II) NATURAL CAPITAL

ENVIRO ... more
(III) ECONOMIC CAPITAL

ECONOMIC ... more
FINANCIAL CAPITAL IS JUST ONE PART OF ECONOMIC CAPITAL
Building financial wealth merely by depleting and degrading the environment and exploiting social capital is unsustainable and immoral! Value a better society and exploit technology to achieve this AND preserve the environment in perpetuity! Measure this ... Manage this!
SOCIAL CAPITAL / QUALITY OF LIFE ... m
Determined in part by the INDIVIDUAL and FAMILY and FRIENDS
Determined in part by PLACE: Access to goods and services ... and community
An Individual

A better quality of life for everyone ... more
The Family

The family an important part of the social structure
The Community
Good friends and community positive for quality of life
The Place
Everything comes together in a place ... or doesn't ... more
Nature

The environment really matters ... for health and sustainability ... m
The Economy

The dignity of work, and source of everything to enable the good life ... m
HAPPINESS ... m Housing ... more Material goods ... m Opportunities ... m Preparation ... m Employment ... more Income ... more Wealth ... more
Good health ... more Family ... more Community ... more Stress ... more Longevity ... more
PLACE ... more Clean air ... more Clean water ... more Good Food ... more Energy ... more Health service ... m Education ... more Transport ... more
Safety ... more Religion ... more Recreation ... more Culture ... more Community ... more
NATURAL CAPITAL / ENVIRONMENT ... m
Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
LAND
Natural

Essential habitat for all sorts of living organizms ... more
LAND
Agricultural

Huge land areas now used for agriculture
LAND
Built up

Much land now built over with various types of economic development
FRESH
AIR

Fresh air is very good for human health and longevity ... more
FRESH
WATER

Without water there is no life, and now becoming increasingly scarce ... m
OCEAN
WATER

A huge energy sink, and where all the world's garbage accumulates ... m
MINERAL RESOURCES

The raw materials for most of the useful products we use every day ... m
FOSSIL
FUELS

The sources of power that made the industrial revolution possible ... m
CLIMATE
SYSTEMS

The essential mechanisms that have kept the climate stable until now ... m
ECOLOGICAL SYSTEMS

The many mechanisms that serve to recycle everything in nature ... m
BIODIVERSITY - FAUNA

Animals, birds, fish, reptiles, insects and other life forms ... m
BIODIVERSITY - FLORA

Millions of species of plants that occupy a complex ecosystem ... m
ECONOMIC CAPITAL / FINANCIAL WEALTH ... m
Social and Economic Progress has been achieved by the depletion and degradation of Natural Capital
PHYSICAL CAPITAL
All of the people built systems and structures that make the modern economy function. ... m
Buildings

Buildings provide shelter and places to work but very inefficient ... m
Infrastructure

Many sorts of infrastructure are essential for a modern economy ... m
Processes

Modern production processes have become very efficient but energy intensive ... m
Transport

Transport and logistics are enabling global trade and sustainable development ... m
Working Capital

Inventory, receivables and financial liquidity are essential to a viable society and economy ... m
OTHER ECONOMIC CAPITALS
More people built systems and structures that make the modern economy function.
FINANCIAL

Money makes the world go round, but it is only a lubricant ... m
KNOWLEDGE

Education is foundational and essential for a better world ... m
INSTITUTIONAL

Organizations, rule of law, etc make an enabling environment ... m
CULTURAL

Dance, music, tradition, religion ... all sorts of good things that make life worth living ... m
LOCATIONAL

Place is where everything comes together and makes a difference ... m
.
ALL THE CAPITALS GO TOP

(I) SOCIAL CAPITAL
THE MOST IMPORTANT CAPITAL ... SHOULD BE TOP PRIORITY
Open L070-CS-SC-SOCIAL-CAPITAL
HUMAN CAPITAL
PEOPLE / QUALITY OF LIFE / COST OF LIVING / CONTRIBUTION TO SOCIETY
Human Capital / Babies / Families / Healthy Food
Open L0700-CS-SC-HC-HUMAN-CAPITAL
RELATIONSHIP CAPITAL
PEOPLE IN GROUPS / IN COMMUNITIES / IN SOCIETY
Families / Friends / Communities / Connections
Open L0700-CS-SC-RC-RELATIONSHIP-CAPITAL

(II) NATURAL CAPITAL
NATURAL CAPITAL ... UPON WHICH EVERYTHING DEPENDS
Open L070-CS-NC-NATURAL-CAPITAL
NATURAL CAPITAL
NATURE / NATURAL SYSTEMS / NATURAL RESOURCES
Planet Earth / Land/ Air / Water / Trees / Storms /
Open L070-CS-NC-NATURAL-CAPITAL

(III) ECONOMIC CAPITAL
CAPITAL ... ECONOMIC FACTORS OF PRODUCTION
Open L070-CS-EC-ECONOMIC-CAPITAL
PHYSICAL CAPITAL
BUILDINGS / INFRASTRUCTURE / MACHINERY AND EQUIPMENT / TRANSPORT EQUIPMENT
Indusrial Plant / Buildings / Vehicles / Bridges / Rail / Water / Ports /
Open L0700-CS-EC-PC-PHYSICAL-CAPITAL
FINANCIAL CAPITAL
MONEY WEALTH / MONETIZED VALUE
Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices
Open L0700-CS-EC-FC-FINANCIAL-CAPITAL
KNOWLEDGE CAPITAL
RULE OF LAW / SECURITY / KNOWLEDGE / CULTURE / INSTITUTIONS / ETC.
Laws / Justice / Security / Knowledge / Culture
Open L0700-CS-EC-KC-KNOWLEDGE-CAPITAL
INSTITUTIONAL CAPITAL
RULE OF LAW / SECURITY / KNOWLEDGE / CULTURE / INSTITUTIONS / ETC.
Laws / Justice / Security / Knowledge / Culture
Open L0700-CS-EC-IC-INSTITUTIONAL-CAPITAL
CULTURAL CAPITAL
RULE OF LAW / SECURITY / KNOWLEDGE / CULTURE / INSTITUTIONS / ETC.
Laws / Justice / Security / Knowledge / Culture
Open L0700-CS-CC-CULTURAL-CAPITAL
LOCATIONAL CAPITAL
THE PLACE - HOE PLACE MAKES A BIG DIFFERENCE TO QUALITY OF LIFE
Laws / Justice / Security / Knowledge / Culture
Open L0700-CS-EC-LC-LOCATIONAL-CAPITAL
INTANGIBLE CAPITALS
KNOWLEDGE / ENABLING ENVIRONMENT / CULTURE / INSTITUTIONS / ETC.
Laws / Justice / Security / Knowledge / Culture
Open L0700-CS-EC-INTANGIBLE-CAPITALS

SOME DIALOG ABOUT CAPITAL
What is essential is that the concept of CAPITAL includes everything!
GO TOP
INPAGE NAVIGATION SITE NAVIGATION
CAPITALS
The critical concept is that there should be accountability for the impact on ALL of capital, not merely financial capital.
FRAMING THE CAPITAL QUESTION
This framing by Bojan Radej et al uses a 4 capital segmentation
GO #Bojan-Radej
7 DIMENSION CAPITALISM by TVM This 7D Capital approach was proposed by TVM in 2015. It has subsequengly been modified as a 6 Capital segmentation that maps very well to some of the other initatives for analysis and reporting.
The People Dimension:
(1) ... Human Capital;
(2) ... Social Capital;
The Man Built Systems and Structures:
(3) ... Financial Capital;
(4) ... Physical Capital;
(5) ... Knowledge Capital;
(6) ... Institutional Capital;
Nature and Natural Systems
(7) ... Natural Capital
The key concept proposed for this analytical framework is not the number of capitals and the precise way the capitals are segmented but the idea that ALL capitals should be included in the analytical framework and not simply the financial capital.
For the purpose of analysis, the idea of capital and the idea of 'state' are the same. This is convenient in so far as this makes the TVIA analysis approach work in a similar way to the way conventional double entry accounting works.
Open list0300-7D-Capitalism

Open list0300-7D-Capitalism-AAA

A THREE (3) SEGMENT FRAMING OF CAPITAL
An approach proposed by TVM in 2016 ... simple and includes ALL of Capital
The 3 Main Segments of Capital:
... HUMAN CAPITAL;
... NATURAL CAPITAL;
... CREATED CAPITAL (which includes FINANCIAL CAPITAL)
Over a long period of time, PEOPLE have worked to create CREATED CAPITAL in order to exploit NATURAL CAPITAL to achieve a better QUALITY OF LIFE. The process has been very successful BUT in the last century the depletion and damage to NATURAL CAPITAL has the potential to make the system unsustainable. This has been aggravated by the use of MONEY and FINANCIAL WEALTH as a dominant part of the decision making processes!
MULTIPLE SUB-SEGMENTS OF CAPITAL Multiple sub-segments that are congruent with multiple units of account
HC - HUMAN CAPITAL:
(1) ... Human (Personal) Capital; and
(2) ... Social (Community / Relational) Capital.
NC - NATURAL CAPITAL:
(1) ... Land;
(2) ... Water;
(3) ... Air;
(4) ... Ecosystem Services;
(5) ... Water;
(6) ... Mineral Resources; and
(7) ... Energy Resources.
CPC - CREATED PHYSICAL CAPITAL:
(4) ... Physical Capital;
CFC - CREATED INTANGIBLE CAPITAL:
(5) ... Intangible Capital.
CFC - CREATED FINANCIAL CAPITAL:
(1) ... Financial Capital.
The main UNITS OF ACCOUNT
...... units of account for MONEY
............ one for each CURRENCY
...... there are units of account for PEOPLE
............ one for LIFE ITSELF
............ one for QUALITY OF LIFE (perhaps with further sub-divisions)
...... there will be several units of account for NATURE
............ one for LAND
............ one for WATER
............ one for AIR
............ one for Carbon/GHG/Climate
............ one for BIO-DIVERSITY
............ one for ECOSYSTEM SERVICES
In the TVA data architecture there are multiple PERSPECTIVES which are similar to REPORTING ENTITIES as routinely used in conventional accounting:
...... ORGANIZATION
...... PEOPLE
...... COMMUNITY
...... PLACE
...... PROCESS
...... PRODUCT
In addition there are STREAMS / STRANDS / STRINGS because of the importance of these in FLOWING through the SEES in a multitude of complex ways. These are ways that each of the REPORTING ENTITIES has impact on multiple capitals as the element flows through the system both in terms of space and in terms of time.

EXAMPLES
Most of the EXAMPLES do not incorporate ALL the capitals


CORPORATE GOVERNANCE ... Capitalism for the Long Term
Dominic Barton ... Harvard Business Review 2011
Dominic Barton is the global managing director of McKinsey & Company and a trustee of the Brookings Institution.
TPB Note: Several well known names in economic history and current financial economy leadership are referred to in this essay which makes the point that in the long run a business that does not deliver social good cannot exist, but in the short run all sorts of bad outcomes are possible, including issues like excessive executive pay, short term high frequency stock market trading .
Open file 11709


THE FOUR CAPITAL MODEL, MATRIX AND ACCOUNTS ... by-Bojan-Radej
Abstract:
The sustainability imperative can be translated into a claim for homothetic growth (Giraud, 1996) which equalises growth opportunities for all forms of capital: economic, social, human and natural. In order to apply this imperative, policymakers need empirical and analytically rigorous tools to present interactions between capitals as multiple and parallel. For this purpose Ekins and Medhurst (2003) compiled the four capital model based on the combined quantitative-qualitative methodology of ‘sustainability assessment framework’ that is derived from impact assessment methodology. This expert-based assessment technique is well-known in ecological and sustainable economics. The paper finds that Ekins and Medhurst applied microscopic (project) assessment approach for studying macroscopic phenomena such as development programmes consisting of tens or hundreds projects. The methodological consequence is that they could not fully utilize the potential of the model in its complexity. Thus, a more orthodox formulation is proposed which at first transforms the sustainability assessment framework into the standard Leontief’s (1970) input-output matrix from which the standard accounting tool – an integrated system of capital accounts – is derived. It is only after this adjustment of the starting model that one can tell not only how the realisation of the particular policy, plan or programme will influence each of the four forms of capital; but more relevantly, one can identify also all trade-offs and synergies that would be initiated with these policies amongst the forms of capital themselves. Recognition of these multiple relations appears as a precondition for balanced sustainable wealth creation.
http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/The-Four-Capital-Model-by-Bojan-Radej.pdf
TPB Note: These four capitals are:
... Economic Capital
... Human Capital
... Social Capital
... Natural Capital
They reflect ALL the capital and are a different segmentation of the total arising from the different background of the author and the purpose of his work.
In the prevailing TVIA primary segmentation of PEOPLE; NATURE and CREATED PEOPLE BUILT CAPITAL the mapping merges Social Capital into PEOPLE and CREATED CAPITAL
At the second level Economic Capital which approximates to CREATED CAPITAL disaggregates into Created Financial Capital, Created Physical Capital and Created Intangible Capital
At a third level of disaggregation capitals are further segmented in order to reflect the manner in which the whole of the socio-enviro-economic system (SEES) works together and is interconnected in both simple and complex ways.
While the work of Bojan Radej maps neatly into the thinking associated with economists and social scientists, the TVIA segmentation maps better into the functional accounting and financial analysis associated with the corporate organization (accounting and management information) and stock markets (stock prices and financial analysis)
Open PDF ... The-Four-Capital-Model-by-Bojan-Radej

Aggregation Problem in Evaluation of Sustainable Development ... by-Bojan-Radej
Abstract: Evaluators of large-scale policy interventions have an aggregation problem (Scriven) arising from incommensurability of assessed policy impacts. Leopold et al. recognised this and left evaluation results in a disaggregated form. However, they failed to observe that cross-sectional impacts are at least weakly commensurable. Ekins and Medhurst have acknowledged this, but did not implement the finding consistently. When inconsistency is removed, fragmented results are first partly aggregated into a square input-output matrix of impacts on the meso level, and then synthesised correlatively. The aggregation problem is further studied in a horizontal perspective by extending Dopfer et al.’s classification of Meso 1, 2 and 3 sub-levels of synthesis with Meso 2a and 2b. One of our conclusions is that a precondition for neutral evaluation of complex policy intervention is not only an objective analysis of policy impacts but also a consistent synthesis of poorly compatible and value laden detailed evidence.
http://www.truevaluemetrics.org/DBpdfs/Economics/OECD/Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf'
TPB Note: The aggregation problem is major constraint to enabling timely discussion of socio-enviro-economic performance. Financial performance is the subject of real time analysis by the investment community, but everything to do with social impact and environmental impact is not part of this conversation ... rather it gets attention once in a while whereas the financial performance is real time. I argue that a lot of data are available, but no way to aggegate. The work done here by Bojan Radej can be helpful in resolving this constraint.
Open PDF ... Bojan-Radej-Apples-and-Oranges-Apr-4-2016.pdf

Shared Value Reporting by True Price
From True Price
GO TOP
Governments, customers and even financial institutions increasingly require companies to work sustainably towards creating shared value for society, respecting the environment and all people involved: having positive impact.
The integrated profit and loss (IP&L) is a new framework to make and communicate decisions in this age.
• For all ways in which a company creates value.
• For all its stakeholders, including employees, suppliers, the government and future generations that depend on the natural environment.
• For societal value creation in all forms: financial, manufactured, intellectual, natural, social and human capital.
• With everything expressed in one language. Money. The language of business, investors and consumers. In an explicit framework that enables trade-offs, that were previously impossible.
A positive bottom line of the IP&L shows creating sustainable value for society, which is becoming a key condition for profitability itself. This is also increasingly recognized in the integrated reporting movement, see e.g. IIRC (2011,2013) and GRI (2015) publications.
True Price is embracing ALL the capitals as does the TVIA initiative.
The segmentation is as follows:
True Price True Value Impact Accounting
(1) ... Financial Capital; ECONOMIC CAPITAL ... Financial Capital
(2) ... Manufactured Capital; ECONOMIC CAPITAL ... Physical Capital
(3) ... Intellectual Capital; ECONOMIC CAPITAL ... Knowledge Capital
(4) ... Environmental Capital; NATURAL CAPITAL ... ALL the mulitple elements of nature
(5) ... Social Capital; and SOCIAL CAPITAL ... Relational Capital
(6) ... Human Capital. SOCIAL CAPITAL ... Human Capital

Open file 12899 Open pdf ... TruePrice-Integrated-Profit-and-Loss-Creating-Shared-Value-with-Integrated-Thinking

AN 8 CAPITAL CONSTRUCT
From Appleseed Permaculture
The text of Appleseed Permaculture paper Open file 12686
The Appleseed Permaculture paper
http://www.appleseedpermaculture.com/8-forms-of-capital/
Open external link
Appleseed True Value Impact Accounting
(1) ... Cultural ; ECONOMIC CAPITAL ... Cultural Capital
(2) ... Experiential ; An integral part of human capital
(3) ... Intellectual Capital; ECONOMIC CAPITAL ... Knowledge Capital
(4) ... Spiritual ; An integral part of human capital
(5) ... Social Capital SOCIAL CAPITAL comprising Human Capital and Relational Capital
(6) ... Material ECONOMIC CAPITAL ... Physical Capital / Working Capital
(7) ... Financial ECONOMIC CAPITAL ... Financial Capital
(8) ... Living NATURAL CAPITAL ... Every facet of the natural world


A Graphic from Appleseed Permaculture
A Graphic from Appleseed Permaculture
The US dollar is currency, as is the European Euro.
The Dollar and the Euro are money that serves as both a medium of exchange and a store of value
The 'currencies' described in this concept are the value flows ... often intangible ... that are associated with each of the capitals
The concept of 'complexing to' has some similarity with the concept of TVIA where the STREAM / STRAND/ STRING is one of the most important REPORTING ENTITIES because of the way PRODUCTS flow through the system having IMPACT all the time and everywhere.


Multiple Capitals ... essential foundation for value / impact accountancy
Six Capitals ... BOOK by JANE GLEESON-WHITE
‘Six Capitals or Can Accountants Save the Planet'
Open file 13599
Six Capitals ... BOOK by JANE GLEESON-WHITE
‘Six Capitals or Can Accountants Save the Planet'
Open external link
6-Capitals-Can-accountants-save-the-world-book-review

'http://truevaluemetrics.org/DBpdfs/Capitals/6-Capitals-Can-accountants-save-the-world-book-review.pdf'
Open PDF ... 6-Capitals-Can-accountants-save-the-world-book-review
Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014

'http://truevaluemetrics.org/DBpdfs/Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014.pdf'
Open PDF ... Can-The-Accountants-Save-The-Planet-excerpt-review-AFR-October-2014



The text being discussed is available at


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