Human capital in terms of the total earnings over a person’s lifetime is, as the World Bank states, clearly the most important component of wealth globally. The World Bank analysis finds that human wealth on a per capita basis is typically increasing in low and middle-income countries. But in some upper-middle and high income countries, stagnant wages are reducing the share of human capital. This has hollowed out middle classes and lies behind the rise of populist parties in Europe and Trump’s rise to power in the US.Women, meanwhile, account for less than 40% of human capital wealth, according to the report, because of lower earnings, lower labour force participation and fewer average hours of work.Whilst the report states that achieving higher gender parity in earnings could generate an 18 per cent increase in human capital wealth, such a statement is misrepresentative. It assumes firstly that women who choose to stay at home to raise families have no value, and secondly that increasing their participation in the labour force would not be at the expense of reducing male participation.The report concludes that growth is about more efficient use of natural capital and through investing the earnings from it into infrastructure and educationBoth assumptions probably merit further thought. For example, a simple thought experiment would consist of two mothers who each employ the other to look after their children. If they pay each other the same amount, there would be no net change in the economic circumstances of each family. However, the World Bank analysis would suggest that each has now accumulated human capital that they otherwise would not have had! This thought experiment suggests that work that contributes to society that is unpaid should still be regarded as contributing to human capital.For low income countries, natural capital accounts for the largest component of wealth. But the World Bank argues that getting rich is not about liquidating natural capital to build other assets – natural capital per person in OECD countries was three times that in low income countries even though the share of natural capital for OECD countries was only 3%.Understanding the drivers of wealthThe report concludes that growth is about more efficient use of natural capital and through investing the earnings from it into infrastructure and education.Sustainably managed, renewable resources in the form of agriculture or forestry can produce benefits in perpetuity. In contrast, non-renewables such as fossil fuels and minerals can offer a one-off opportunity to finance development. But, as the report points out, nearly two thirds of countries that have remained in the low income category since 1995 are resource rich, or fragile and conflict states or both.What is clear is that resources alone cannot guarantee development – strong institutions and governance are needed. Clearly the private sector can play a critical role, particularly if a strong stance is taken on ESG issues.Assessing the value of natural resources raises many philosophical challenges, but the debate needs to be had. By doing so the methodology can only improve, while losing biodiversity and the services it underpins is irreversible. Moreover, Europe faces the challenge of coping with refugees and migrants dying in their thousands attempting to gain entry to its shores.Understanding and encouraging the drivers of wealth outside its borders is a matter of self-interest as well as morality. No single metric is ever ideal for assessing progress.For countries, it is very clear that GDP is a poor metric to use for determining long term policies. GDP is a measure of activity rather than wealth creation. That means that it can give very misleading signals about the health of an economy. An obvious case is where natural resources are depleted which may give rise to a boost to GDP but could result in a long-term degradation of wealth and hence future income for that country.Incorporating the value of natural resources as well as human capital is a key requirement for assessing the health of a nation. At the end of January the World Bank released a fascinating analysis of the changing wealth of nations. Promoting an analysis of changing wealth both in absolute terms and on a per capita basis, as the World Bank argues for, provides a forward-looking analysis of the health of nations. It also emphasises the need for sustainability in the exploitation of natural resources. For investors, it is worth noting that environmental, social and governance (ESG) issues underpin many of the conclusions.How the wealth of a nation should be assessed is both controversial and subject to many assumptions. But just because measurement is difficult does not mean that it should not be attempted. The World Bank’s approach measures wealth in the form of four types of assets: Produced capital and urban land : machinery, buildings, equipment and urban land, measured at market prices;Natural capital : natural resources of all types including energy, minerals, agricultural land and forests;Human capital : measured as the discounted value of earnings over a person’s lifetime; andNet foreign assets : the sum of a country’s external assets and liabilitiesThe key findings are perhaps as would be expected, although the value is very much in the detailed figures for each country.Global wealth grew significantly between 1995 and 2014. Rapid growth in Asia that has enabled middle-income countries to catch up, but inequality persists.Per capita wealth changes show a significantly different picture. Low income countries showed a deterioration primarily driven by population growth outstripping investment, especially in sub-Saharan Africa.
Comment Advertisement Ian Wright rates Arsenal’s chances of qualifying for the Champions League after Newcastle win Arsenal have a favourably run of games and are unbeaten in 2020 so far (Picture: Getty)‘I think there’s a lot of work that needs to be done there and he [Mikel Arteta] won’t have the time or the players to do it all this season.‘They’re going to have to wait, spend a lot of money in the summer, and do a lot of things differently to what they’ve been doing, because I don’t see them being good enough to get into the top five.’On Tottenham’s chances of finishing fifth, Wright said: ‘Well they should do. I think with Jose being there, one of the things Tottenham thought they may be able to guarantee is him getting them into the top four.‘I have to say now, you look at Tottenham and this is where you have to say they can kick in and say, “right, we’re really going to cement this place”.’MORE: Graeme Souness slams Pierre-Emerick Aubameyang for comments after Arsenal’s win over NewcastleMORE: Mesut Ozil sends message to Arsenal fans after ending goalless run in win over NewcastleMore: FootballRio Ferdinand urges Ole Gunnar Solskjaer to drop Manchester United starChelsea defender Fikayo Tomori reveals why he made U-turn over transfer deadline day moveMikel Arteta rates Thomas Partey’s chances of making his Arsenal debut vs Man City Fifth place could see Arsenal get back into Europe’s top competition (Picture: Premier League)Ian Wright has played down Arsenal’s chances of finishing in the top five and potentially securing a Champions League berth and says they need to hope the teams above them drop points.The clubs chasing fourth spot in the Premier League were given a huge boost when UEFA banned Manchester City – who currently occupy second spot – from competing in the Champions League for the next two seasons.If that decision is upheld, fifth place would get a spot in the competition instead, though Wright is not convinced Arsenal can overturn the six-point gap to fifth-placed Spurs despite their big win over Newcastle. Metro Sport ReporterSunday 16 Feb 2020 11:05 pmShare this article via facebookShare this article via twitterShare this article via messengerShare this with Share this article via emailShare this article via flipboardCopy link3.1kShares Arsenal moved up to 10th place with a 4-0 win over Newcastle (Picture: Getty)Asked if Arsenal can avoid finishing outside the top six for the first time in 25 years, Wright told Premier League Productions: ‘I think they can finish in the top six, whether they can get to fifth… I think there’s teams [above them] that are going to have to drop points.AdvertisementAdvertisementADVERTISEMENT‘When you’re looking at Tottenham at the moment, the way they dug that out today. Sheffield United look brilliant, they look pretty good Sheffield United.‘If Sheffield United finish there [sixth] it would be a magnificent season. Wolves you feel now, with that fifth place such an important position to finish now, you feel like they’ll kick on.More: Arsenal FCArsenal flop Denis Suarez delivers verdict on Thomas Partey and Lucas Torreira movesThomas Partey debut? Ian Wright picks his Arsenal starting XI vs Manchester CityArsene Wenger explains why Mikel Arteta is ‘lucky’ to be managing Arsenal‘I think it’s going to take a lot for Arsenal to finish in fifth now. Teams are going to have drop points and Arsenal are going to have to really kick on with a run.’Fellow pundit Alan Shearer was even more downbeat on Arsenal’s chances, adding: ‘I don’t see them being good enough to get into the top five. Advertisement
The International Accounting Standards Board’s interpretation’s committee has called a halt to efforts to come up with accounting guidance for companies with non-traditional defined benefit (DB) pension schemes.The plans – dubbed contribution-based promises, or ‘intermediate risk’ plans – have proved to be troublesome to account for under the projected unit credit model found in International Accounting Standard 19, Employee Benefits (IAS19).Since 2004, both the committee, known officially as the International Financial Reporting Standards Interpretations Committee, and the IASB have tried and failed to develop an appropriate accounting approach for this troublesome class of pension plan.The committee’s decision, which emerged during its 29 January meeting, means constituents must now wait for the IASB to add a pensions-accounting project to its work plan. Commenting on the news, Eric Steedman, a leading pensions consultant with Towers Watson, told IPE: “The Interpretations Committee has effectively said the issue is too big for them to solve expeditiously.“Unfortunately, for now at least, this leaves preparers with such plans to carry on ‘doing their best’ with a statement that does not really cater for their situation.”The IFRS IC’s predecessor, the International Financial Reporting Interpretations Committee, published the so-called IFRIC D9 approach for contribution-based promises in a consultation document back in 2004.The committee called a halt to that work, however, when, in 2006, the IASB launched its unsuccessful bid to develop a new accounting methodology to deal with intermediate-risk pensions, or contribution-based promises.But fresh life was breathed into that approach, when the IFRS IC decided to take another look at contribution-based promises accounting.Both D9, and the IASB’s contribution-based promises model, set out to address the accounting challenges that arise when IAS19’s projected unit credit measurement model and discounting approach is applied to non-traditional DB plans.One obstacle to good accounting that is often cited by critics of IAS19 is that the standard forces them to discount projected returns on a pool of equity assets using either a high-quality corporate bond or government bond discount rate.The mood around the committee table during the 29 January meeting was largely downbeat on the committee’s prospects for bringing the effort to a successful conclusion that preparers would welcome.Laurence Rivat, a senior audit partner with Deloitte in France, said she was unclear who would benefit from any guidance that the committee might come up with.Rivat reported that constituents had told her that any guidance that might emerge from the committee would not change what they “are currently doing”.She added: “What we really need is that the board take on a project to review fundamentally IAS19 to deal with those plans where there is risk-sharing between employees and employers.”Similarly, E&Y partner John O’Grady said: “I would be in favour of discontinuing this project because I don’t think we are able to control ourselves when it comes to scope. That has always been the problem with this.“We are trying to solve some fundamental problems with IAS19, which to me is a board project to sort out IAS19 to deal with the modern types of plans that are out there.”As for the long-term outlook for an IASB-level pensions project, IASB director Alan Teixeira said now might be a good time to accelerate the board’s apparent research project on pensions accounting.Speaking during a 16 September 2013 IASB meeting, Teixeira said the pensions research effort was “on the longer-term research plan” but had no staff allocated to it.He also noted that no standard setters had “expressed an interest in the project.”According to information posted on the IASB’s website, the board expects to hold a consultation on the shape of its future agenda in 2015.A feedback statement on the IASB’s 2011 agenda consultation bracket pensions accounting, share-based payments and income taxes together as longer-term priorities.
LocalNews Contracts to be signed for NEW water project for Bense, Ans-de-Mai and Ans-sol-Dat by: – July 5, 2012 Tweet Share 8 Views no discussions Share Sharing is caring! Share Prime Minister Roosevelt SkerritPrime Minister Hon. Roosevelt Skerrit has announced that on July 9th 2012, contracts will be signed for a new water system that will supply the communities of Bense, Ans-de-Mai and Ans-sol-Dat.He was speaking to residents at the 2012 reunion launch this past Sunday.The Prime Minister noted that he is cognizant of the community’s needs.“I recognize that the most important project in Bense, Ans-de-Mai, Ans-sol-Dat is the completion of the water project. On July 9th, the Cabinet and myself will be back here with you to speak about how we can work together, [to find out] the plans and programs you would like to[indicate] to the Government for consideration in advancing development of Bense, Ans-de-Mai and Ans-sol-Dat. I will say to you that on that day we shall sign the contracts to begin work on the water project in Bense, Ans-de-Mai and Ans-sol-Dat.”The Prime Minister also made reference to land issues within the community.“I know that you have been having some land issues, rest assured that we will find ways of [dealing with] those land issues in the interest of all the residents of Bense, Ans-de-Mai and Ans-sol-Dat.”Government Information Service
Kammuri is moving slowly to the westnorthwest at 10 kilometer per hour. Local government units (LGUs) werealso told to review their contingency plans. Other weather agencies such as theJapan Meteorological Agency and the US Navy Joint Typhoon Warning Center inGuam forecast the storm hitting the Bicol region or Central Luzon area. In its latest bulletin last night, thePhilippine Atmospheric, Geophysical, and Astronomical Services Administrationwarned of potential hazards as Kammuri strengthened from a severe tropicalstorm into a typhoon outside the Philippine Area of Responsibility. Provincial Disaster Risk Reduction andManagement Office head Zeaphard Caelian said Lacson wanted to heightenpreparedness for possible flooding or landslides. BACOLOD City – Gov. Eugenio JoseLacson ordered all disaster risk reduction and management offices (DRRMO) inNegros Occidental to be on “blue alert” beginning due to the threat of typhoonKammuri. Kammuri is expected to enter thecountry on Sunday morning and will be given the local name “Tisoy.” Courtesy of PAGASA website The Philippine Atmospheric Geophysicaland Astronomical Services Administration (PAGASA) said the storm is threateningnorthern Luzon. However, the typhoon may still affect Negros Occidental,bringing light to at time heavy rains and thunderstorms. Kammuri is also threatening theSoutheast Asian Games, which will open tomorrow in Bulacan./PN