Capital structures matrix: a model for public access to project interpretation

Abstract

A growing demand for transparency and accountability in local decision-making has grown substantially in recent years due to an increasing awareness of finite natural resources. Sustainable development captures the interrelatedness of the economy, the environment and social expectations. In addition, transparency in the decision-making process provides the public a method of accountability for public funds. The Capital Structures Model developed in this paper addresses the demand for accountability by focusing on local development projects classified by type of capital (built, human, social and natural) in order to provide information to the average constituent regarding specific county and community development projects. Local assets are initially categorized according to the type of capital to which they most contribute, and then indicators are employed to measure the contribution of a project with respect to increasing the capacity of each type of capital. These indicators are then cross-referenced with local policy to demonstrate how that policy is implemented in local development projects, and which policies contribute to which type of capital. It is the intention of this model to create an informative tool for planners and constituencies that monitors how development projects contribute to communities in terms of each of the four types of capital.

Keywords:

• sustainability
• capital structures
• economic indicators
• economic development

Notes

1. The Precautionary Principle may be invoked for the protection of the environment and human, animal and plant health. This was established as an acceptable policy measure by the UN Charter for Nature in 1982, and has been applied in two international trade agreements, WTO and EU.

2. Prugh offers an array of accounting and valuation alternatives known as contingent valuation.

3. All indicators that are used in both development project test cases are the same. All policies and goals are likewise the same.