Mdia p3-02-man-built-capital-150420

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-p3-02-MAN-BUILT-CAPITAL-150609.odp Peter Burgess (c) All rights reserved

MDIA

MAN BUILT CAPITAL


WORK-IN-PROGRESS.SLIDESET STILL IN DEVELOPMENT.UPDATES WILL BE POSTED OVER

THE NEXT SEVERAL WEEKS

MBC … MAN BUILT CAPITAL ...is part of an extremely complex SOCIO-ENVIRO-ECONOMIC SYSTEM


The next slides shows: MAN-BUILT CAPITAL

GOVERNMENT, CITIES, INDUSTRY AND A LOT MORE








ELEMENTS OF THE SYSTEM by SEGMENT (1)

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

FinancialCapital

HumanCapital

Man Built Capital

NaturalCapital

Sun

Part of Man Built Capital (MBC) Metrics around money and wealth are everywhere

Human Capital is about the Quality of Life and Standard of Living of PEOPLE, and as such, is the most important

purpose of economic activity … but no metrics

Man Built Capital(MBC)There are metrics for efficiency and effectivenessin private for profit organizations, but less so for

the public sector and for the commons

Everything is built on top of Natural Capital, that is all theresources that occur in nature, the environment in all its

complexity and ecosystem services that it enables … verycomplex detail metrics, difficult to understand and no way

to summarize these metrics and use them effectively

Sun … the ultimate source of all energy


ELEMENTS OF THE SYSTEM by SEGMENT

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

FinancialCapital

HumanCapital

Man BuiltStructures & Systems

NaturalCapital

Money FoodGovernmentNature (life)

Sun

Nature (life)

Capital Market Value

WaterLaws. RulesNature (life)Land

ShelterInfrastructureWater Clothes

IndustryNature (life)AirHealth

MiningEcoservicesEducation

Energy SkillsWaste

RecreationRetailCulture

Logistics ReligionKnowledge

Technology

Security

Energy

Mobility

Profit

The 5 Capitals of MBC:● Financial Capital● Physical Capital● Knowledge Capital● Institutional Capital● Social Capital



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

Institutional Capital

Physical Capital

Knowledge Capital

Social Capital

Financial Capital

About Man Built Capital

Man Built Capital

Man Built Capital … Man Built Structures and Systems (MBSS) … are everything not PEOPLE and not NATURE.


These ALL may be changed!


The PURPOSE of all economic activity is:

(1) to enable an improved Quality of Life and Standard of Living for PEOPLE; and,(2) to do this without stressing nature and the enabling natural systems.

Man Built Capital in all its manifestations have been developed and deployed to make this possible.


SOCIO-ENVIRO-ECONOMIC● SOCIO is Human Capital … PEOPLE;

● ENVIRO is Natural Capital … NATURE;

● ECONOMIC is everything that MONEY measures … that is MBC (Man Built Capital).


● SOCIO is a PEOPLE perspective. Everything should result in people progressing.

● ENVIRO is about NATURE and the ultimate source of everything that people can ever have; and,

● ECONOMIC is MAN BUILT CAPITAL … all sorts of structures and systems that have been built to enable progress.


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.



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

WHAT IS THIS?

Future flowsof profit

determinecapital market

valuation.Change

becomes anIncrement to

financial capital.This is the making of fictional or

virtual wealth

Debits andcredits ofmoney result in

profit whichIncrements

financial capital

About Financial Capital

Money

Stocks and BondsOwnership of Securities

Real EstateOwnership of Physical

Assets

Ownership of AssetsOwnership of Debt

In the end, all FC isowned by people

WHICH OF THESE IS RIGHT?


Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun

Nature (life)

Land

Water

Air pollution

Ecoservices

GHG emissions

About Nature (Life)

GHG Emissions

Green House Gas (GHG) emissions like CO2, CH4 and others cause global warming, which is having impact

on weather patterns and other systems.

The natural ecosystem service capacity is not enough to balance

the emissions originating from

man built systems

Institutional Capital comprises:

● Government Departments and Agencies;● A framework of law;● Systems of law enforcement and justice; ● Security capacities;● Corporate organizations;● Health systems;● Education systems;● etc.



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun


Physical Capital

Knowledge Capital

Social Capital

Financial Capital


InstitutionalCapital

Government,Rule of Law,Companies,

Organizations.

Systems for:Health

Education,Banking,

Social Services,Security,

etc.

Physical Capital

Some of this is owned by Corporate Organizations, some by Private People and some by the Public Sector.

Ownership has been a key feature of modern capitalism … and is worthy of more study and understanding.


Physical Capital comprises:

● Infrastructure;● Factories;● Machinery and equipment;● Transports vehicles (ships, aircraft, trucks, railcars, etc.);

● Houses and apartments;● Offices, hotels and commercial buildings;

● Computers, etc.



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun


Physical Capital

Knowledge Capital

Social Capital

Financial Capital


PhysicalCapital

Commercial buildings,Factory buildings, Housing, Stores,

Machinery and equipment,Vehicles,

Infrastructure:Roads and bridges

RailroadsSeaports and airports

CommunicationsWater and sewer

Electricity, Oil and Gas,Hospitals, Schools.

etc.

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.



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun


Physical Capital

Knowledge Capital

Social Capital

Financial Capital


KnowledgeCapital

MathematicsPhysicsBiology

ChemistryScience of materialsComputer science

Information technologyBiotechnology

Artificial intelligenceRobotics

Social Capital comprises:

● Networks of friends and family;● Community;● Culture; ● Religion;● Community … people;● Community … access to services;● Social safety net;● etc.



Sun

BOP EOP

Sun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun SunSun

FinancialCapital

HumanCapital

Man BuiltCapital

NaturalCapital

Sun


Physical Capital

Knowledge Capital

Social Capital

Financial Capital


Social Capital

RelationshipsHuman interaction

TeamworkReligionCultureHistory


Money Government

Laws/Rules

PublicInfrastructure

Industry

Mining

Energy

Waste

Retail

Logistics

Knowledge

Technology

FinancialCapital

PhysicalCapital

KnowledgeCapital


SocialCapital

FinancialCapital

PhysicalCapital

KnowledgeCapital


SocialCapitalMBC

Water

Sewer

Regulations

Security

PrivateSector

PublicSector

ElectricGrid

BuildingsBanks

Capital Markets

Community

Culture

Religion

RecreationInsurance Health

Education

Roads

Transport

Public Lands

Research

ELEMENTS OF MAN BUILT CAPITAL (MBC)

OWNERSHIP AND FINANCINGThe matter of OWNERSHIP is important in the understanding of MBC.

This is especially true in connection with the financing of MBC,

Capital market financing is facilitated by private ownership, but the metrics for this mean that important things cannot get done because they cannot be financed.


Funding for Man Built CapitalThe funding for MBC depends on ownership.

If ownership is private, then funding is facilitated by profit potential.

If ownership is public (government) then funding is constrained by political will and government revenue limitations.

A sad reality is that initiatives with a huge potential for good go unfunded because the dominant financial system only has focus on profit hardly at all on good.


CONCLUSION

Our future depends almost entirely on how MAN BUILT CAPITAL (MBC) is managed.

KNOWLEDGE has the potential to be used to optimize PHYSICAL CAPITAL, INSTITUTIONS and SOCIETY so that impact on PEOPLE is as good as possible with as little negative impact on NATURAL CAPITAL as possible.


More than anything else, this will be achieved by implementing better metrics, metrics that account not only for the profits of the organization and the impact on FINANCIAL CAPITAL, but also impact the organization has on HUMAN CAPITAL (PEOPLE) and NATURAL CAPITAL (PLANET).

This is the goal of the MDIA (Multi Dimension Impact Accounting) initiative.


Moving forward … Request for collaborationMoney is part of a complex socio-enviro-economic system. While it works … it does not work as well as it should, nor as well as it could. The work of MDIA is to enable this complex system to work better.

MDIA needs to be a team effort. Join in and help to make the world a better place. Please get in touch.

Peter Burgess … [email protected]


Some links and contact information: Peter Burgess … [email protected]

Peter Burgess LinkedIn profilehttps://www.linkedin.com/in/peterburgess1

Link to TrueValueMetrics.org websitehttp://www.truevaluemetrics.org/

Link to navigation for MDIA slidesetshttp://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets


mailto:[email protected]

https://www.linkedin.com/in/peterburgess1

http://www.truevaluemetrics.org/

http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets

Date post:	18-Jul-2015
Category:	Data & Analytics
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Mdia p3-02-man-built-capital-150420

Data & Analytics