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Public Net Worth
Accounting - Government - Democracy
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82 b
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Governments face unprecedented financial challenges, because of historic trends in public policy and finance, recent shocks and the future consequences of climate and demographic change. But much of the financial information they need is not available, is inaccurate, or is ignored. In effect they are flying blind.Governments need to create balance sheets that properly reflect assets and liabilities, and to understand their future obligations and revenue prospects. Net Worth - both today and for the future - should be the measure of financial strength and success.Only if this information is put at the centre of government financial decision-making can the present challenges to public finances around the world be addressed effectively, and in a way that is fair to future generations. Long term government finances around the world are already under severe pressure. Failure to act - soon - will place enormous, perhaps unbearable, strains on the global economic system, and on democratic political institutions around the world.But the good news is that there are tangible steps that can be taken to address these problems, and create government finances which are more resilient and fairer to future generations.The facts, and the solutions, are non-partisan, and so is this book. Responsible leaders of any political persuasion need to understand the issues and the tools that can enable them to deliver policy within these constraints.
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