I read your article with great interest. I followed it up the same at the website of Inside Job and the Facebook. My question is what’s the way out?
Today I dropped this note at the White House mail system, under the category of Economy: “President Obama during the inaugural session to US Congress said: “Here in Washington, we’ve all seen how quickly good intentions can turn into broken promises and wasteful spending. And with a plan of this scale comes enormous responsibility to get it right.” If world economy has to revive White House should attempt to control this area. How? Please visit http://www.smashwords.com/books/view/24530 and take your time to watch the 3 minutes video, that addresses the concern stated above of President Obama and tells how to take grip of the economy.”
This is my request to you and Charles Ferguson, please visit the site referred, and watch the video. You are welcome to the domain of intangible where there is no duality, no opposites values, no paradox, no plurality, no complexities or gridlock as Rebecca Costa fears. There is a way out.
Jayaraman Rajah Iyer
I have added the video here itself that viewers can have a look at. The book is titled Inactivity Based Cost Management with a sub-title Measurement of Intangible: Governance, Ethical & Fiscal Responsibility and Accountability. Your organization Corporate or Government can be evaluated and graded affording you a full-fledged knowledge base of cost consequence in every area of Governance. A lesson out of experience from BP – Be Prepared.
The whole earth is made up of substance including you and me, where each substance has the unique characteristic of its own defined very clearly. You may note Mahatma Gandhi and Madoff are in the same plane but having opposite values. It is true for oneself let alone two different personalities being in two different points in one fraction of a second. Inactivity Based Cost Management analyzes and puts into rest the paradox. Fundamental to this is the understanding of Intangible and its role.
One substance can be yoked with another each retaining its unique position independently. It creates another substance. In accounting parlance it is an asset. There are no liabilities as such but a substance when it does not collide with Action it remains insentient or inert. That’s when Inactivity Based Cost Management pulls out by its definition of Intangible wherever they are that follow a single uniform transformation from subtle to gross during the Creative process and then identical transformation during the Action process towards task accomplishment. Task accomplishment you may note creates another substance that may get consumed instantly or after a finite time. With the result, to borrow the expression of Dr. Radhakrishnan, a substance is the infinite succession of finite purposes. They are measured and combined with ease.
Difficult areas of measurement such as Governance, Ethical Responsibility, Business Ethics, Management Quality, Accounting Quality, Risk Management etc. are measured and brought into to the box of Accountability, following the dictum set by Galileo Galilei: “ Measure what is measurable, and make measurable what is not so.” This enables the Budgeting for Cost Consequence.
The main case study is Chapter II UNCAC Preventive Measures that countries can straightaway use the book to start implementing the measures immediately. The most important aspect of UNCAC is Article 10 Public Reporting. This is far superior to the freedom of speech. Governments must incorporate this Article into their Constitution, for it enables them to take the people along with. e.g. UK has come out with economic measures that needed to take the people along. Considered the content of measures announced as a substance with Quality, the Action process of the same shall be put into practice with Article 10 of UNCAC. Inactivity Based Cost Management enables the study of Cost Consequence by real-time monitoring. Illustratively, a passenger in an aircraft is provided with the video display of the real-time information on the flight path, a map covering the route, the position on dot, altitude, cruising speed, distance to destination, time from origination point and time to reach the destination. When the captain announces the likely turbulence the passenger willingly clicks the safety belt without any murmur. Inactivity Based Cost Management enables the Government to set up such an instrument without giving out any confidential information. A million projects may run simultaneously and by instituting Article 10 Governments will be greatly relieved as the performance of each project has been delegated to some responsible in-charge. If the government carefully read the book they would be able to appreciate the support they get from the public. Governments must come out of the fear complex of sharing the data with the public and not stuck in the logjam of fighting for RTI. The current scenario is like an owner having appointed a trustee to look after his funds, finds himself a mute witness to the happenings and being told that secrecy is the hallmark of the trustee’s use of funds.
Finally a word for the Rating agencies. In Inside Job we have seen expression of ‘holy cow’ or ‘triple A rating’ a few days before the collapse leading to financial crisis 2009. Rating agencies as well the financial sector have no clue what they rate as on today bringing down countries at their whims or give finance for. Meaning a substance is not created that Action starts without it. The result is unmanageable and a sure sign of disaster as Iraq invasion. They can bring out a healthy and reliable data of countries for every substance within their territory. Rating becomes meaningful. Rating agencies must temporarily stop rating corporate or governments.
Inactivity Based Cost Management is the simplest of all the tools that has been created that a farmer when explained will know what it means. Governments will find it useful to a great extent.
Note: This blog reference I have also sent to the following:
1. The Hon. PM of UK
2. The Hon. PM of India
3. Mr Carlo MULLER European Parliament, DG ITEC
4. The Hon. President of Sri Lanka
5. The Hon. PM of Pakistan
6. The Hon. PM of Singapore
7. The Hon. PM of Thailand
8. UAE Vice President, Prime Minister and Ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum
9. To His Highness the Heir Apparent Sheikh Tamim bin Hamad Al-Thani, the crown prince of Qatar
10. The Hon. PM of Malaysia
The intention is to have a uniform rating system of Governance for all the governments. Illustratively, SEBI the Securities and Exchange Board of India, introduced in the year 2007 a mandatory grading for all companies that enter into the market with an IPO. [I have separately posted a blog on this subject which you may please have a look at.] Governments must introduce a mandatory grading, for all the departments national and state level, on similar terms of reference – Accounting Quality, Management Quality, Financial Risks and Government Governance [instead of Corporate] and declare to the public by Article 10 of UNCAC.
The book will surely enable you to do so, for your own goodness. Such an exercise will greatly help every nation under this evaluation as one result is comparable to the other and can be exchanged between nations as set by Article 5 – Preventive anti-corruption policies and practices of UNCAC. This document UNCAC under reference is one of the best ever created document for all to use and please make the best out of it. This book under reference is equally a robust performance evaluation tool and the only methodology available in the world to Grade every organization within a country on Governance to arrive at a single Grading for the country as a whole.
Jayaraman Rajah Iyer
Author of Inactivity Based Cost Management:
Printed version: https://www.createspace.com/3488434
Kindle Amazon: http://www.amazon.com/dp/B003Z9JQWQ