PH picked for WB ‘green accounting’ project
By DJ Yap,
Philippine Daily Inquirer, April 20, 2013
MANILA, Philippines—The Philippines has been chosen along
with four other countries for the pilot implementation of a World Bank-led
project to develop “green accounting,”
or the inclusion of the value of natural resources in measuring a nation’s
economic progress...
Environment Secretary Ramon Paje made the announcement on
Saturday from Washington D.C., where he represented the country at a high-level
ministerial meeting on “natural capital
accounting (NCA)” or “green accounting” organized by the WB on April 18...
Paje said the Philippines, along with Botswana, Colombia,
Costa Rica and Madagascar, were selected as the implementing partners of the Wealth Accounting and Valuation of
Ecosystem Services (WAVES) project of the World Bank… his participation at
the meeting underscored the Aquino administration’s focus on preserving the environment while pursuing
sustainable, inclusive and resilient growth.
MAKING WAVES
"Alam ko lang na itong
planeta'y
walang kapalit at dapat ingatan, kapag nasira,
sinong kawawa?"
- from 'Karaniwang Tao' by Joey Ayala
Dear Sec. Paje,
How green is Green Accounting? How
social is Social Accounting?
If the ecosystem nurtures and
supports life, if the market place produces and allocates wealth, if government
creates and allocates power and enforces justice, how will Green Accounting
look like?
Thank you for
making waves in the global arena for our beloved Philippines. In the words of
the Matiglangilan from the highlands of Mindanao, “what you’re doing is good
(thank you)”.
Sustainable,
Inclusive, Resilient Growth
It comes as no surprise that our homeland is once again
a testing ground to several iterations of creative instruments of
transformational intervention in coping with the effects of environmental
change and in responding to the challenges and opportunities in ‘sustainable,
inclusive and resilient growth’. These
are no longer buzz words coined by development thinkers, they are yearnings
from the hearts of people like you and me, guys from the streets and guys in
government meeting rooms as well. We are glad to think that with creative
developmental and accounting theory, practice and frameworks, these abstract
notions will soon find reflection in Balance Sheets and Income Statements not
just in business, but also in government and communities, statements that facilitate
analysis, forecasting, planning and policy making with greater clarity,
understanding and objective measurability.
How Green Is
Green?
But how green is Green Accounting? How social is Social
Accounting? What are the set points that will make green “Green” enough, social
“Social” enough? I suppose these are the points your project will find and establish and our best wishes and
prayers for your success are with you.
These thoughts come to mind when thinking, for example,
of the ‘Peace Talks’ and the concept of ‘Wealth Sharing’ in allocating the natural
wealth of Mindanao and the Bangsamoro that is presently being negotiated. For
business in Mindanao and elsewhere, including those that exploit, harvest,
process and deplete natural resources, wealth sharing arrangements are quite
simple and straightforward. Distribution of earnings and dividends to different
stakeholders, interest to creditors, taxes to government, matching of cost of
goods sold to revenues, depreciation and depletion treatment of ‘wasting’
assets and their replacement over time and other issues are set points that are
simply and easily covered under conventional accounting practice and frameworks
that are generally accepted under local and international financial reporting
standards.
Community Balance
Sheet – Where is it? What Does it Look Like?
For government and the community, it’s a lot different. Note
that the government is not the community and the community is not the
government. The government has its own Financial Statements, but where is the
community Balance Sheet that will recognize and value the wealth that will have
to be shared? What would be the system of valuation? Who are the stakeholders
that will share wealth or the profits the wealth will generate? In the formula Assets
= Liabilities + Capital who owns the Capital? Is it the government? How so? If
government were the BPO agent of the Community, will it earn service fees? Will
it charge taxes as a matter of right?
One’s Output is
Another’s Input
If, for example, the time comes when Brazil will collect
from the rest of the world (as free and willing buyers) for the Oxygen produced
and the Carbon sequestered in the Amazon forests, what can the PH collect from
the rest of the world and what for? What would be the methods of valuation? If,
by its very nature enterprise Financial Statements cannot capture certain
social costs, are Community Financial Statements able to do so? I’m sure you
will find all the right answers to these philosophical and accounting issues.
And you will be able to craft the proper community Balance Sheet and Income Statement
models to reflect these values and value relationships, but they will be far
from conventional. Note that we are not
trying to trigger a political debate. We are apolitical. We are curious to see
an accounting tool for a development solution to a grassroots issue. And this
is our way of saying “we support you and we love what you are doing”!
MAKE WAVES!
You are in for lots of hard work Sec. Paje, but I’m sure
you will find the right answers. After all the World Bank and the rest of the world
are watching, and I’m sure, ready to help. We ourselves at WAWD are brimming
with curiosity and thrilled to search our store of financial and accounting
expertise to see if we could help.
We watch your progress with keen eyes, eager
expectations and fervent prayers for your success. With your success the nation
is blessed, with your breakthroughs we can start seeing our planet as it is
foretold in the Book of Revelation – “behold
I make all things new”.
Know that we at WAWD are starting to do our own thinking
and tinkering and walking dogs for the cause of Green and Social Accounting. We
want to be cool about it and have fun. In fact, one of our colleagues did a
piece on Social Cost Accounting way
back in 2009, and we’re sending you a copy (through this link) to add to
your store of ideas and to your fun, hopefully.
This is not an easy dog to walk, but let’s have fun
anyway.
BOB CALIDA
We Also Walk Dogs
Asian Solutions Provider Inc.
Asian College
