Methodology to evaluate nations

Evaluating India as a Model Nation

 “यत्तदग्रे विषमिव, परिणामे अमृतोपमम “

 “The medicine appears bitter in the beginning, but is like nectar in the end.”

India, one of the oldest civilizations in the world, spread over a vast area of 3,287,590 sq. km extending from the snow-covered Himalayan heights to the tropical rain forests of the south, having a population of some 1.30 Billion people and still growing, is bestowed by Mother Nature with all kinds of Natural Resources having immense value not measured so far. In addition, in its 5000 years existence country has created huge volume of various kinds of Concrete Assets and amassed Financial Assets. But do we know the value of these Natural Resources and Assets? No, we don’t. Why ? Because probably due to enormity of issues in enlisting and valuing vast volume and kinds of natural Resources, Financial and Concrete Assets value of all resources and assets  could not be computed, neither, probably, any need was felt. Would we now like to know – surely if we can! And, in fact, that is the dire need for every nation in the world.

By grace of God, as a result of our deep research, knowledge and experience, we have been able to find a solution to this unresolved problem. Now every stake holder shall be able to examine Comprehensive Profile including financials, of every single Village, Town, City or even Metro. Not only that, every National Asset shall have a value tag, be it an Airport, Institution, or Monument. Every Ministry shall know value of resources and assets under its control both in Public and Private domain.  Country shall be able to compute Balance Sheet of every State and the Country as a whole showing cumulative value of all of her Natural Resources and Assets and Liabilities both in Private and Public domain. 

This information shall provide additional vital information to Governments and Planners in addition to GDP.  GDP is simply value of goods and services produced in a given period and has its limitation in reflecting true economic status of a country.    On the other hand Net Worth is a true reflector of the strength or weakness of an economy. Net Worth is the difference between value of Assets and quantum of Liabilities. Net Worth is called positive when value of assets is more than liabilities but it is negative if liabilities outnumber assets.  Growth in successive years in nation’s Net Worth shall demonstrate that nation is on right path of growth while reduction in Net Worth shall be a clear signal of wrong planning. The report that enlists Assets and Liabilities of an enterprise is called Balance Sheet. Balance Sheet demonstrates value of all Assets and Liabilities and Net Worth of the Enterprise and whether Net Worth of the enterprise has increased or decreased compared to last year. Government has prescribed format of Balance Sheet for Commercial enterprises. Methodology explained here shall make it possible to present Balance Sheet of the States and the Nation in this prescribed format every year.

Secondly, and even more importantly for all round development and poverty alleviation the Methodology shall produce Comprehensive Profiles of every Village, Town, City and Metros including the financial value of assets and resources possessed by them. The Comprehensive Profiles shall enlist and evaluate all assets and resources available in each of these entities in value terms. Such knowledge shall provide vital data and motivate all stake holders to think and plan as to how to optimize utilization of available resources and assets to bring progress to our villages, towns and cities and remove poverty from there.    

Moreover, Balance Sheet of every State and Central Government shall disclose what kind of assets have been added during the year, if any. Addition of Productive assets improves living condition of people and bring economic growth in the country compared to financial assets like gold and gems that do not contribute to any economic development. Details of Liabilities in the National Balance Sheet shall keep a check on liabilities and put a brake on creating unsustainable borrowings. Balance Sheets of Private and Public sectors shall demonstrate which sector is contributing how much to economy of the country.  Net Worth of the country shall earn its due respectable status in the comity of nations.

 Who shall compute it? Computation of Balance Sheets is a specialized technique that is known to Chartered Accountants. In the Government administration and Accounting system a position of CAs was not created. Even the CAG, who heads Government Accounting, is not required to be a CA. This obviously seems to be one of the reasons why this vital document could not be produced by Governments so far. A team of Chartered Accountants shall be appointed to head every State and Central Ministry and a Chief Chartered Accountant for every State and for Union government. This team of Chartered Accountants shall set up a system to compute value of all national assets, Comprehensive Profiles of all entities and Balance Sheets of every State and Central Ministry and Balance Sheets of every State and Union Government every year.

Obviously the input data required for computing Balance Sheet and Comprehensive Profiles is available to the Government only.  Chartered Accountants appointed by Government shall compute these documents from this data and upload it on a Website every year.  This data shall open up the floodgates of vital dynamic info for analysis by all stakeholders –  the Residents of villages and cities, Governments, Planners, Businessmen, Investors, Lenders, United Nations, other countries and whosoever else is interested in economics of the country.

These Comprehensive Profiles and Balance Sheets of States and the country in easily understandable format shall be displayed on a website and shall be available for viewing on computer systems and even on mobiles at any time of the day, in any part of the world, 24 x 7.  There shall be a Feedback Form on the website for stake holders to register their complaint, observation and suggestions for improvement. The Balance Sheet and Comprehensive Profiles shall be updated every year.

This Blog in various posts shall present the Modus Operandi to achieve this heretofore impossible goal, explains the game changing enormous advantages of making Comprehensive Profile and Balance Sheet, the issues that prevented making of it, their solution, enabling factors that make it possible to make it now, input formats, output reports, assumptions, definitions and explanatory notes on natural resources, national assets, way to fix unit price for unvalued natural resources and compute value of all national assets.

The posts in Blog shall also explain prevalent administrative and accounting system of the Government and how with the same administrative machinery, except enrollment of Chartered Accountants and a team of Valuers, these vital documents can be computed.

The Methodology developed shall provide Comprehensive Profile of each of 6.58 lakh Geographical Entities i.e. every Village, Town, City & Metro, comprising of their physical features and value of Assets and resources they possess. Consolidation of value of assets of GEs shall enable computing Balance Sheet of every Ministry of every State and Union Government, Every State, Every Union Territory and finally the Country as a whole.

The reports produced shall prove to be Game Changer that shall project Net Worth of the Country in addition to GDP as of now. Now the yardstick shall be how much worth of Productive Assets, both in Private and Public domain, have been added during the year as it is productive assets that facilitate growth of economy and alleviate Poverty.

In Short, the methodology shall present Mirror of India

Another USP of this Methodology is the software design that shall, for the first time, show detailed particulars of each of 6.58 lakh GEs, Each State & Central Ministry Balance Sheet, and Unit Value of all major assets of the country on touch of a button.

This Methodology has emerged after deep study of all related issues, like what are national assets and resources, efforts made to quantify and evaluate them by various national and international institutions, to fix unit price of natural resources, how the country is governed, accounting procedures followed by government, functions and assets controlled by each Ministry, population and civic amenities available in villages, towns and cities, international efforts made for producing national balance sheets and so on. Important issues have been explained in Explanatory Notes including the Assumptions and Enabling Factors that facilitate these reports now.

A separate “Department of Evaluation of India” shall be required to be set up in the Ministry of Statistics and Program Implementation to undertake the assignment of Evaluating India

The methodology devised can be used by any country to produce similar reports by adapting to their individual governing and accounting systems. 

Our research contributes to United Nations Statistical Commission agenda, namely - research to develop new concepts for meeting New measurement challenges as well as Prime Minister Narendra Modi’s mantra of Innovation for finding solution to Country’s challenges !!!

Disclaimer: The article has been compiled for the purpose of providing general knowledge only.  Viewers should make further research on the subject for taking any decision which can have consequences.  This information has been collected through secondary research and publisher is not responsible for any errors in the same

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