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SOCIO-ENVIRO-ECONOMIC SYSTEM
COMPLETE SYSTEM
HUGE ... COMPLEX ... AND AMAZING
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HUGE SYSTEM ... VERY COMPLEX
HOW IT ALL FITS TOGETHER
The system is very complex with many competing agendas!
Top down management of this system for best results is impossible
Better results can be achieved by many fast incremental improvements and effective metrics and feedback.
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GO TOP
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By thinking in terms of three critical segments, the complexity of the system may be organized in a somewhat coherent manner: PEOPLE (Social Capital), ENVIRONMENT (Natural Capital) and the ECONOMYC (Economic Capital)
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THREE (3) SEGMENTS
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Social Capital
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Natural Capital
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Economic Capital
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#1 ... SOCIAL CAPITAL
The PEOPLE segment ... EVERYTHING ABOUT SOCIETY AND QUALITY OF LIFE FOR PEOPLE:
Optimizing for HUMAN CAPITAL and SOCIAL CAPITAL may represent a very different priority for investors and corporate decision makers but it is essential for peace and prosperity in the modern world. There was a time when the constraint on quality of life was the ability to produce the goods and services people need and a shortage of labor, but in the modern world a different set of limits have emerged and the critical limitation is to avoid depletion of natural capital with degradation of the environment and possible changes to the critical equilibrium of the socio-enviro-economic system.
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NATURAL CAPITAL
NATURE ... UPON WHICH EVERYTHING IS BASED, BUT COMPLETELY IGNORED IN THE PREVAILING METRICS OF PERFORMANCE
EVERYTHING has its origin in the amazing NATURAL CAPITAL which exists on planet earth
Modern knowledge about matural capital is enormous, yet only a tiny part of everything there is to know.
NATURAL CAPITAL has been the source of all FINANCIAL CAPITAL and PHYSICAL CAPITAL and it is essential that the use of financial capital is optimized for the benefit of us all, and quickly.
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ECONOMIC CAPITAL
CREATED CAPITAL ... PEOPLE BUILT SYSTEMS AND STRUCTURES ... AMAZING SYSTEMS THAT HAVE BEEN CRITICAL FOR IMPROVEMENT IN QUALITY OF LIFE ... BUT AT SOME CONSIDERABLE COST TO THE ENVIRONMENT, AND THE PLANET UPON WHICH EVERYTHING DEPENDS
The creations of people have improved quality of life in amazing ways over the past 200 years.
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HOW THE THREE SEGMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM HAVE CHANGED OVER TIME
Huge amounts of Natural Capital have been converted to create Financial Capital in the last 200 years!
Planetary boundaries are being exceeded, with only modest efforts to remediate Natural Capital
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A series of images that describe the way the 3 segments of the system have changed over time
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A simple series that shows how the relative scale of the three main segments of the socio-enviro-economic system have changed over time, until now when we have the risk of existential collapse of the system
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Open L0700-SEES-changes-over-time
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MEASURING PROGRESS AND PERFORMANCE
ORGANIZING THE ELEMENTS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM to ENABLE EASY MEASUREMENT
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GO TOP
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ACTIVITIES DELIVER RESULTS
Details of activities are not needed to measure PROGRESS
PROGRESS is the increase in VALUE (of the STATE) from beginning to end of the period |
Simply measure the change in the VALUE or everything
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Elements of the System by Segment (I)
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Elements of the System by Segment (II)
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PEOPLE BUILT SYSTEM ...
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PEOPLE BUILT SYSTEM ... FINANCIAL CAPITAL
Financial Capital is part of Man Built Capital but separated out for the purpose of analysis because it has become such an important part of the conventional way of measuring … specifically:
(1) business profit;
(2) capital market valuations; and,
(3) GDP growth.
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PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Institutional Capital
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PEOPLE BUILT SYSTEM ... INTANGIBLE CAPITAL ... Knowledge Capital
Knowledge Capital ... What we know enables productivity and performance. ... Some of this is shared universally and is available for free use, and some is owned by Individuals and Business entities and may be used for their private gain at the expense of society as a whole.
Knowledge Capital ... Knowledge Capital is expanding rapidly … faster than at any previous time in history. ... Important parts of Knowledge Capital have been created with Government funds, often for military and security purposes.
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SOCIO-ENVIRO-ECONOMIC SYSTEM
ALL THE CAPITALS / ALL THE PROCESSES
NOT JUST THE FINANCIAL DIMENSION ... BUT IMPACT ALSO ON PEOPLE, SOCIETY AND THE ENVIRONMENT
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GO TOP
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STATE / ALL OF CAPITAL
THE WIDELY ACCEPTED SIX CAPITAL SEGMENTATION
The critical idea is that ALL of capital is brought into account, not just financial capital
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Open L0700-CC-CAPITALS
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STATE ... CAPITALS
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FLOW ... PROCESS - STREAMS / STRANDS / STRINGS - SECTORS / INDUSTRIES
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ALL THE PROCESSES
THE IMPACT OF ACTIVITIES / STREAMS / SECTORS
These are responsible for the amazing improvement in quality of life and standard of living over the past 200 years, and also responsible for the degradation of the environment. The efficiency of these are the key to a better world.
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Open L0700-RE-PROCESSES
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ALL THE PRODUCTS
THE IMPACT OF ACTIVITIES / STREAMS / SECTORS
PRODUCTS support a good quality of life and high standard of living, but PRODUCTS also POLLUTE and their production has an impact on the ENVIRONMENT, but the production also enables PROFIT and enables JOBS
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GO TOP
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NAVIGATION TO ALL PRODUCTS
Some unstructured general information about a lot of products ... background to establishing Standard Value Profiles
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Open L0200-PRODUCTS
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ABOUT THE ACCOUNTING FOR PRODUCTS
Conventional accounting has a long experience with cost accounting and financial reporting involving PRODUCT
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Open L0700-CC-PRODUCTS
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PRODUCT AS A REPORTING ENTITY
When PEOPLE know more about the PRODUCTS they buy and use, they are enabled to make better decisions
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Open L0700-CC-PRODUCTS
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THE STANDARD VALUE PROFILE FOR ALL PRODUCTS
A Standard Value Profile enables easy access to critical information about a PRODUCT
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PRODUCT AS A PART OF CREATED PHYSICAL CAPITAL
There are huge stocks of PRODUCT ... relatively few shortages
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Open L0700-CC-PRODUCTS
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ALL THE ACTORS
THE ACTORS THAT MAKE THINGS HAPPEN / GET THINGS DONE
They are responsible for all the progress that has been achieved ... but also the damage that has been done that needs to be remediated
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Open L070-ACTORS
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OTHER WAYS TO SEGMENT CAPITAL
OTHER REPRESENTATIONS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
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GO TOP
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OTHER REPRESENTATIONS OF THE SOCIO-ENVIRO-ECONOMIC SYSTEM
There is no 'right' way to categorize or segment capital
The critical key concept is that ALL of capital is included in the analysis and management (decision making) for the system
The TVIA segments were chosen as they best reflect the state, flow and linkages of all the elements in the system.
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Open L0700-SEES-other-representations
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HOW THE SOCIO-ENVIRO-ECONOMIC SYSTEM WORKS
A VARIETY OF VIEWS / PERSPECTIVES
ALMOST NO MENTION OF THE IMPORTANCE OF GETTING THE METRICS RIGHT
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GO TOP
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THE NEXT SYSTEM PROJECT ... TRANSFORMATIONS / SYSTEMIC CHALLENGES & SOLUTIONS IN 21ST CENTURY AMERICA
A NEW HEDONISM ...A Post-Consumerism Vision ... by KATE SOPER
Transformations-Post-Consumerism-2017
A 51 page paper
'http://truevaluemetrics.org/DBpdfs/Initiatives/TheNextSystemProject/Transformations-Post-Consumerism-2017.pdf'
| Open PDF ...
Transformation-Consumerism-2017
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Jobs/ Unemployment / Income ... Basic Income
The Panama Papers prove it: America can afford a universal basic income ... If the super-rich actually paid what they owe in taxes, the US would have loads more money available for public services
Burgess COMMENTARY: I wish this was so ... but it is not. Universal basic income cannot be funded in a meaningful way by the economic / financial system as we know it. The experiments referred to in the article are very small both in terms of numbers of people and amounts being paid. However ... banks do have a version of universal basic income for themselves, and it is possible that such a system ... the fiat money system and the fractional reserve system ... could be replicated to work for society in much the same way that the finance system works for banks. Blockchain technology may be the foundation for such an innovation. Peter Burgess
| Open file 14156
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