Date: 2024-04-25 Page is: DBtxt003.php L0900-SEES-complex-world-01a
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HOW THE SOCIO-ENVIRO-ECONOMIC SYSTEM WORKS
IT'S A COMPLEX WORLD! |
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| Incredible complexity | ... and progress is also complex! |
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• Managing complexity is difficult.
• For years, the system has been managed mainly to benefit owners of financial capital. • In TVM this is referred to as 'financialization'. | |
| Understanding ValueAdd | What change for all the capitals? |
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• Activities use resources;
• The activities aim to produce a valueadd; • The increase in valueadd is a measure of progress or effectiveness; • The use of resources to achieve this progress is a measure of efficiency. | |
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• Valueadd has three components: Social, Environmental and Economic;
• Progress is the improvement in STATE from beginning to end of the period. • STATE is the aggregate value of the Social, Environmental and Economic capitals. | |
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• Economic value, impact and progress may use money as the metric.
• Social value and impacts should not use money as the metric . • Environmental value and impacts should not be measured using money. • Coherent and comprehensive metrics are needed for social and environmental impacts. | |