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JP Rangaswami 6/26/2016
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Private. Collaborators only.
Hi Joi, here are a few links as grist to your mill. I’ve been interested in how we view and review economic activity for some decades now, not just as companies but as societies, as entire economies. This is even more important when the economies are open and interconnected.
This Charlie Bean article may be of interest, on rethinking the measurement of economic activity. http://voxeu.org/article/rethinking-measurement-economic-activity
The Bean review gets referred to in that article, and is itself worth reading, as is the Diane Coyle book. You may find the other references of value.
Nigeria, amongst others, doubled GDP in 2014 by changing the calculation method : http://www.ft.com/cms/s/0/70b594fe-bd94-11e3-a5ba-00144feabdc0.html#axzz4Cf7ras19
India, soon to be the world’s most populous country, is reported to have just about 1% of its people pay traditonal taxes: http://www.cnbc.com/2016/05/03/guess-how-many-people-pay-taxes-in-india.html
Thirteen years ago, Eric Klieber first brought my attention to what he saw as the two core problems in traditonal accounting, its retrospective nature and its inability to deal with intangibles: http://buffinfoundation.org/publication/view/reinventing-accounting/
It’s also worth delving into what gets shared on the Evonomics site: http://evonomics.com
When next we meet, I’d love to discuss all this further. I think you’re right, we’re at a crossroads on all this, and there are social as well as technological reasons to find a better way. Hope all is well. JP