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Meaningful Metrics for a Smart Society
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Date: 2017-11-23 Page is: DBtxt001.php L070-SEES-CREATED-CAPITAL


SOCIO-ENVIRO-ECONOMIC SYSTEM
CREATED CAPITAL
PEOPLE BUILT SYSTEMS AND STRUCTURES (PBSS)
PHYSICAL CAPITAL / INTANGIBLE CAPITAL / FINANCIAL CAPITAL

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Created Physical Capital (CPC)
Buildings, Infrastructure, Equipment, Vehicles, etc.
InPage CPC
Open L0700-CPC-CREATED-PHYSICAL-CAPITAL
Created Intangible Capital (CIC)
Scientific Knowledge, Governance, Justice, Rule of Law, Organization and Management
InPage CIC
Open L0700-CIC-CREATED-INTANGIBLE-CAPITAL
Created Financial Capital (CFC)
Corporate Net Present Value, Capital Market Value , Financial Wealth
InPage CFC
Open L0700-CFC-CREATED-FINANCIAL-CAPITAL
ALSO
Human Capital (HC)
Everything to do with PEOPLE
Open L0700-HC-HUMAN-CAPITAL
Social and Relationship Capital (SC)
Corporate Net Present Value, Capital Market Value , Financial Wealth
Open L0700-SC-SOCIAL-RELATIONSHIP-CAPITAL
Natural Capital (NC)
The utterly amazing foundation for everything ... that is EVERYTHING
Open L0700-NC-NATURAL-CAPITAL

PHYSICAL CAPITAL GO TOP
CREATED PHYSICAL CAPITAL
BUILDINGS, INFRASTRUCTURE, TECHNOLOGY, MACHINERY, EQUIPMENT, PRODUCTS, PROCESSES, VEHICLES,
Buildings / Infrastructure / Bridges / Rail / Water / Equipment / Ports
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PHYSICAL CAPITAL
TECHNOLOGY, MACHINERY, PRODUCTS, PROCESSES, VEHICLES, INFRASTRUCTURE
Physical capital is the product, factories, plant and equipment associated with business operations, as well as the infrastructure used for transport, communications, energy and so forth owned in both the public and private sector. Physical capital has costs to operate, needs maintenance and depreciates over time. The efficient performance of this physical capital determines how much quality of life there can be relative to the consumption of non-renewable resources.
Physical capital is man made. Some of the physical capital is owned by people, some is owned by companies and some is owned in the commons by the state. There are factories, machinery and equipment, jigs and dyes, vehicles, furniture fixtures and fittings that are assets of companies and on their balance sheets. There are roads and bridges, airports, seaports and water systems and sewer systems that have been built by government and are maintained by government or others. There is working capital, and specifically inventory of product, that is mainly owned by private sector organizations. There are products that are consumed by people to satisfy their needs and their wants. There are houses owned or occupied by people. There are commercial buildings. There are city transit systems. There are parks, theaters for cultural events and stadiums for sports events. Money is in part a piece of physical capital in the sense that physical money (or its virtual equivalent) is needed to make transactions efficiently. Everything in the physical capital has been built using resources and impacting the environment.
GO SlideNav-for-TVA #PC

BUILDINGS
Buildings are an important feature in any place and have many purposes.
Open list0300-Buildings

Open L0700-CPC-Buildings

INFRASTRUCTURE
ROADS AND BRIDGES, WATER AND SEWER, POWER, COMMUNICATIONS
Issues related to INFRASTRUCTURE
Open list0300-Infrastructure

Open L0700-CPC-Infrastructure
PROCESSES
Open L0700-CPC-Processes
PRODUCTS
Open L0700-CPC-Products
PRODUCTION PLANT AND EQUIPMENT
MACHINERY,
VEHICLES / AIRCRAFT / SHIPS / ROLLING STOCK
VEHICLES
AIRCRAFT
Open L0700-SS-TRANSPORT-AIRCRAFT

Infrastructure ... Flood Control
Global crisis
There have been major floods in all sorts of place ... Why?
Open file 0882
Infrastructure ... Flood Control
Global crisis
There have been major floods in all sorts of place ... Why?
Open file 982

Country ... USA ... Infrastructure -v- Politics -v- Big Business
The Koch brothers just kicked mass transit in the face
Open file 9154
USC-Phelps-Dunbar-Third-Coast-Reshoring
Development of the US Gulf Coast ports and industry ... 2015
'http://truevaluemetrics.org/DBpdfs/Transport/USC-Phelps-Dunbar-Third-Coast-Reshoring.pdf'
Open PDF ... USC-Phelps-Dunbar-Third-Coast-Reshoring
Christopher-Swan-Commons-Sense-2014.pdf
How technology can change the performance of infrastructure
'http://truevaluemetrics.org/DBpdfs/Ideas/ChristopherSwan/Christopher-Swan-Commons-Sense-2014.pdf'
Open PDF ... Christopher-Swan-Commons-Sense-2014

0882 0982 9154
Issue
Infrastructure
Basic observation
Infrastructure has deteriorated in most parts of the “south” and is mostly dysfunctional, making any industrial productivity low.
Prevailing response
A few big infrastructure projects are in process and on the drawing board. Some are going to add value, but the maximizing of value from these projects rarely happens because of the value export of the typical business model. Meanwhile little is done to upgrade a deteriorated infrastructure.
A better response
Rehabilitation of deteriorated infrastructure is a priority, and best done by using local contractors and a maximum of local content. The process of infrastructure building should maximize value adding, and this means local labor, local capacity and local capital to the extent it is available.

INTANGIBLE CAPITAL GO TOP
CREATED INTANGIBLE CAPITAL
FINANCIAL GOODWILL, ENABLING ENVIRONMENT, KNOW-HOW, IP, GOODWILL, REPUTATION, RULE-OF-LAW, SECURITY, ETC.
Knowledge / Government / Rule of Law / Ethics / Culture / Security
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CREATED INTANGIBLE CAPITAL ... OVERVIEW
The monetization of intangible capital explains how so much financial wealth is now recorded in the numbering of world performance.
One of the benefits of True Value Impact Accounting is bringing some clarity to the role that INTANGIBLE CAPITAL is playing in the progress and performance of the socio-enviro-economic system. It is increasingly apparent that the growth of intangible capital has enabled inequity in important ways.
In its essence, intangible capital is created by the gap that arises when the discounted thinking about the future of things is bigger than the current state of things.
Because conventional numbering about the economy is based mainly on financial analysis, things like financial goodwill in the balance sheet of companies is very visible and very large, and at the same time, all the existential risks for the future of society and the planet, like massive social disruption, large scale war, climate change, etc are being ignored because they are not being numbered.

FINANCIAL GOODWILL
FINANCIAL GOODWILL is the heading under which intangible value is recorded in the balance sheet of an enterprise.
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FINANCIAL GOODWILL
Financial goodwill is a construct used in financial engineering to maintain the integrity of a financial balance sheet. Goodwill arises when a company purchases the equity of another company at a price that is more than the net assets on the puchased company's balance sheet.
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. The goodwill amounts to the excess of the 'purchase consideration' (the money paid to purchase the asset or business) over the total accounting value of the assets and liabilities per the books of account.
The graph shows how the proportion of goodwill for the companies in the S&P500 has increased over the period 2003 to 3013 which was already up considerably over the previous three decades. This makes portfolio investment for 'real' development progress more and more difficult ... one of many systemic constraints on better socio-enviro-economic performance. L0700-CFC-Financial-Goodwill
Open L0700-CFC-Financial-Goodwill

KNOWLEDGE / INNOVATION / INTELLECTUAL PROPERTY
KNOWLEDGE / INNOVATION
KNOWLEDGE ENABLES BETTER MAN BUILT SYSTEMS AND STRUCTURES
MODERN KNOWLEDGE IS AMAZING - BUT COULD BE USED BETTER
Knowledge is the result of study, research and learning. Knowledge is a critical enabling factor for the efficient functioning of the modern enviro-socio-economic system. Knowledge has increased very rapidly in the past century, and there are massive amounts of new knowledge every day. The challenge is to use this knowledge in the most valuable and positive way for the benefit of society, This has not been the experience over the past fifty years, and has to change. There is a huge amount of knowledge now compared to the past, and it is growing exponentially. The question is whether or not knowledge will be used for good or ill.
USING KNOWLEDGE ... Knowledge can be used for GOD or BAD ... this is determined by the decision making processes that are in place. Recent history is that knowledge has been deployed mainly in order to maximize profit performance and rather little for value performance.
Open L0700-CIC-Knowledge-Capital

Open L0700-CIC-Technology
GO SlideNav-for-TVA #KNOWLEDGE

ENABLING ENVIRONMENT
GOVERNMENT / TAXATION / LAWS / REGULATION / INSTITUTIONS / SECURITY
Knowledge / Government / Rule of Law / Ethics / Culture / Security
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ENABLING ENVIRONMENT
GOVERNANCE / LAWS, RULES AND REGULATIONS / TAX REGIME / GOVERNMENT INCENTIVES / SECURITY / COMPANIES / INSTITUTIONS / ETC

GO TOP

INSTITUTIONAL CAPITAL
INSTITUTIONS / ORGANIZATIONS
WAYS TO ORGANIZE TO GET THINGS DONE
Open L0700-PBS-IC-
Institutional-Capital

GOVERNMENT
GOVERNANCE - FRAMEWORK OF LAWS, RULES AND REGULATIONS
Society has had laws, rules and regulations for thousands of years. These are needed, but they should be efficient and fair and not gamed for the benefit of powerful special interests.
Open L0700-CIC-Government

SAFETY / SECURITY
SAFE ENVIRONMENT / SAFE PRODUCTS / SAFE STREETS / NATIONAL SECURITY

POLICE / LOCAL SECURITY
LOCAL SECURITY
Police, courts and prisons are part of local security ... but culture and attitude on the part of everyone are even more important.
Open L0700-SI-POLICE

MILITARY / INTERNATIONAL PEACEKEEPING AND SECURITY

MILITARY / INTERNATIONAL PEACEKEEPING AND SECURITY
Police, courts and prisons are part of local security ... but culture and attitude on the part of everyone are even more important.
A competent and strong military is important ... but competent, strong dimplomacy is even more important.
Open L0700-SI-MILITARY-INDUSTRY-COMPLEX

DIPLOMACY / STATECRAFT

JUSTICE

JUSTICE
The US Supreme Court building / The Justices

PLACE
Commercial buildings

PROCESS
Hot strip mills producing coils of sheet steel

LOGISTICS
Grain elevators at a Canadian port
LOGISTICS
Container ship of the Maersk Line

REPUTATIONAL VALUE
Report: Global-RepTrak-2017
• About Reputation Institute
• The 2017 Global RepTrak® 100
• Common Characteristics of the Most Reputable Global Companies
• Key Reputation Drivers for 2017
'http://truevaluemetrics.org/DBpdfs/Reputation/Global-RepTrak-2017.pdf'
Open PDF ... Global-RepTrak-2017

FINANCIAL CAPITAL GO TOP
CREATED FINANCIAL CAPITAL
FINANCIAL WEALTH IS THE DOMINANT MEASURE OF CORPORATE AND PERSONAL SUCCESS ... BUT WITH QUESTIONABLE OUTCOMES
GDP / Corporate Profits / Stock Markets are insufficient
Money / Profit growth / GDP growth / Stock Prices / Cost push inflation / Wages chasing prices

FINANCIAL CAPITAL
Financial capital is man made. Financial capital is also the only capital that really does not exist per se, but is a function of the ownership and deployment of the other capitals. This is clear from a company balance sheet where the 'capital' of the company is represented by the (physical) assets of the company less the liabilities. Similarly an individual's wealth (financial capital) may be represented by ownership interest in various assets … house, car, personal property, stocks and bonds, insurance policies, etc … less liabilities. Financial capital presently is the dominant component of the perception of success.
FINANCE - Investment Open L0700-CFC-Finance-Investment
MONEY - CURRENCY Open L070-MX-MONEY-CURRENCY






MOVE THIS TO METRICS / ECONOMIC
USING MONEY AS A MEASURE
MONEY ... an inadequate metric ... it changes in size over time.
GDP ... A MACRO MEASURE FOR THE PERFORMANCE OF THE NATIONAL ECONOMY

GDP measures consumption more than anything else. There is a weak correlation between quality of life and GDP ... better measures are possible. PROFIT ... MEASURING THE PERFORMANCE OF A CORPORATE ORGANIZATION
Open L0700-CFC-Finance-Investment
MONEY - ALTERNATIVE CURRENCIES Open L0700-MX-ALTERNATIVE CURRENCIES
MONEY - CRYPTOCURRENCIES Open L0700-MX-CRYPTOCURRENCIES
MONEY Open L0700-CFC-Money
INFRASTRUCTURE FOR FINANCE Open L0700-IS-FINANCIAL TO BE ADDED
L0700-PP-FINANCIAL-ECONOMY Open L0700-PP-FINANCIAL-ECONOMY
L0700-SI-BANKING-FINANCIAL-SERVICES Open L0700-SI-BANKING-FINANCIAL-SERVICES
L0700-SS-FINANCE Open L0700-SS-FINANCE
L0300-Wrong-Metrics Open L0300-Wrong-Metrics
LO300-Banking-Finance-Money Open LO300-Banking-Finance-Money
list-0300-Alternative-Finance Open list-0300-Alternative-Finance

FINANCE / CAPITAL MARKETS
CAPITAL MARKETS mobilize the MONEY that is needed to run anything ... from personal life to the business of a large corporation, or a city or a country.
Open L0700-CFC-Finance-Investment
Sustainable Signals
Morgan-Stanley ... Institute-Sustainable-Investment ... Sustainable-Signals-2016
Open pdf ... Morgan-Stanley-Institute-Sustainable-Investment-Sustainable-Signals-2016
S-Network-Global-Benchmarking-System
“A Systematic Mechanism for Direct Investment, Global Benchmarking and Smart Beta Index Development.”
Open pdf ... S-Network-Global-Benchmarking-System
MONEY ... UNIT OF MEASURE ... UNIT OF ACCOUNT

MEDIUM OF EXCHANGE ... MONEY

MEDIUM OF EXCHANGE ... MONEY
PERSONAL WEALTH
CORPORATE VALUE
FINANCIAL TRANSACTIONS
CAPITAL MARKETS
BANKING AND FINANCIAL SECTOR SYSTEMS
Commercial Banks
Investment Banks
Central Banks
Development Banks
SWIFT
Banking regulation
ECONOMIC PERFORMANCE / GDP
GDP is a measure that sends all the wrong signals about economic performance in any mature economy ... though there is a strong correlation between GDP and quality of life in poor developing economies. After the 1970s GDP has proved to be a bad proxy for quality of life in rich mature economies like the United States and Canada, many countries in Europe and Japan.
ECONOMIC PERFORMANCE / GDP
GDP is a measure that sends all the wrong signals about economic performance in any mature economy ... though there is a strong correlation between GDP and quality of life in poor developing economies. After the 1970s GDP has proved to be a bad proxy for quality of life in rich mature economies like the United States and Canada, many countries in Europe and Japan.




The text being discussed is available at



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