Towards a new ecological and human type of national accounting for developing economies

(The CARE/TDL model)

Download .pdf

The goal of this article is to show how today’s financial accounting system, notably the IFRS (International Financial Reporting Standards) and the related National accounts (primarily the famous GDP, Gross Domestic Product), are the main causes of today’s human and ecological crisis. This assertion is justified on the basis of a historical survey of the development of capitalist accounting since the end of the Middles Ages, the time of its foundation. We prove that, in the form, it was invented by big capitalists at that time (and used until today), the concept of capital-debt to be conserved has nothing to do with the one used by economists of either classical, neoclassical, or marxist schools and that it is a very dangerous weapon against the interests of the mankind and ecology.

JEL classification: M00, M41, Q56.
  • Becker, G. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. Columbia University Press.
  • Bicalho, T. (2006). Les limites de l’ACV. Etude de la soutenabilité d’un biodiesel issu de l’huile de palme brésilienne. Thèse pour le doctorat en Sciences de Gestion. Université Paris Dauphine.
  • Braudel, F. (1979). Civilisation matérielle, économie et capitalisme. Armand Colin.
  • Ciriacy-Wantrup, S. V. (1952). Resource Conservation: Economics and Policies. University of California Press, Berkeley.
  • de Groot, R. S. (1992). Functions of nature: Evaluation of nature in environmental planning, management and decision making. Wolters-Noordhoff.
  • de Roover, R. (1956). The development of accounting prior to Luca Pacioli according to the account- books of medieval merchants. In A. C. Littleton & B. S. Yamey (Eds.), Studies in the history of accounting (pp. 114–175). Sweet and Maxwell.
  • Dietz, S., & Neumayer, E. (2007). Weak and strong sustainability in the SEEA: Concepts and measurement. Ecological Economics 61, 617–626.
  • Ekins, P., & Simon, S. (1998). Determining the sustainability gap: National accounting for environmental sustainability. In P. Vaze (Ed.), UK environmental accounts: Theory, data and application. Office for National Statistics, рр. 147–167.
  • Favereau, O. (2014). Entreprises: La grande déformation. Éditions parole et Silence/Collège des Bernardins.
  • Favereau, O. (2016). L’impact de la financiarisation de l’économie sur les entreprises et plus paticulièrement sur les relations du travail. Organisation Internationale du Travail.
  • Fetter, F. A. (1937). Reformulation of the concepts of capital and income in economics and accounting. The Accounting Review, 12, 3–12.
  • Fisher, I. (2003). The nature of capital and income. Simon Publications. [1906].
  • Griffon, M., & Weber, J. (1996). La revolution doublement verte: Economie et institutions. Séminaire international: Vers une révolution doublement verte, CIRAD, 8–9/11/1995.
  • Hodgson, G. M. (2014). What is capital? Economists and sociologists have changed its meaning: Should it changed back? Cambridge Journal of Economics (April).
  • Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systelatics, 4, 1–23.
  • Hueting, R. (1989). Correcting national income for environmental losses: Toward a practical solution. In Ahmad, Y. J. et al., Environmental accounting for sustainable development. Banque Mondiale, 32–39.
  • Ionescu, C. (2016). Biodiversité et stratégie des organisations: Construire des outils pour gérer des relations multiples et inter-temporelles (Thèse de Doctoraten sciences économiques. Alpes).
  • Kapp, K. W. (1950). The social costs of private enterprise. Library of Congress Catalog Card No. 79‐144788.
  • Kendrick, J. (1976). The formation and stocks of total capital. Columbia University Press.
  • Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45(1), 1–28.
  • Levrel, H. (2007). Selecting indicators for the management of biodiversity. Institut français de la biodiversité.
  • Meade, J., & Stone, R. (1941). The construction of tables of National income, expenditure, savings and investment. The Economic Journal, 51, 216–233.
  • Müller-Wenck, R. (1972). Ökologische Buchhaltung. Eine Einführung. St Gallen, Mimeo.
  • Nitzan, J., & Bichler, S. (2009). Capital as Power. A Study of Order and Creorder. Routledge.
  • Norton, B. G. (1991). Towards unity among environmentalists. Oxford University Press.
  • Pacioli, L. (1494). Summa de arithmetica, geometria, proportioni et proportionalita. Paganini.
  • Passet, R. (2000). L’illusion néo-libérale. Fayard.
  • Perroux, F. (1952). Les coûts de l’homme. Economie appliquée, Yanvier-Mars.
  • Piper, E. (1978). Der Aufstand der Ciompi. Wagenbax.
  • Rambaud, A. (2015). La valeur d’existence en comptabilité: Pourquoi et comment l’entreprise peut (p) rendre en compte des entités environnementales pour “elles mêmes” (Thèse de Doctorat en Sciences de Gestion. Université Paris-Dauphine).
  • Rambaud, A. (2018). Aux origines du capital: Le capital chez Luca Pacioli, entre comptabilité et économie, entre mondes ancien et Moderne.Working Paper presented at AFC congress (Mars).
  • Rambaud, A., & Richard, J. (2015a). Sustainability, finance and accounting: From the today’s Fisherian-(Falsified) Hicksian perspective to a traditional accounting approach. In Social and Sustainable Finance and Impact Investing Conference (SAID Business School, Oxford).
  • Rambaud, A., & Richard, J. (2015b). The “Triple Depreciation Line” instead of the “Triple Bottom Line”: Towards a genuine integrated reporting. Critical Perspectives on Accounting, 33, 92–116.
  • Rambaud, A., & Richard, J. (2017). The “Triple Depreciation Line” Accounting Model and its application to the human capital. In S. Alijani & C. Karyotis (Eds.), Finance and economy for society: Integrating sustainability, pp. 225–251. Emerald Group Publishing.
  • Renouard, Y. (1968). Les hommes d’affaires italiens du moyen âge. Armand Colin Collection U.
  • Richard, J. (2008). Pour une révolution comptable environnementale. Le Monde de l’economie, 6, 5 Fevrier.
  • Richard, J. (2012). Comptabilité et Développement Durable. Economica.
  • Richard, J. (2015a). The dangerous dynamics of modern capitalism: From static to IFRS’ futuristic accounting. Critical Perspectives on Accounting, 30, 9–34.
  • Richard, J. (2015b). Refonder l’entreprise, la société anonyme et l’intérêt social par la comptabilité environnementale. In Vers un nouveau cadre conceptuel pour la comptabilité internationale? Centre Français de Droit Comparé. Vol. 19. Ed Soc Législation comparée et Mazars, рр. 175–216.
  • Richard, J. (2015c). Préface à la réédition de l’ouvrage “les coûts sociaux de l’entreprise privée” de Karl William Kapp. Institut Veblen. Les Petits Matins.
  • Richard, J., Bensadon, D., & Rambaud, A. (2018). Comptabilité Financière. Comptabilité écologique contre IFRS (11 еme ed.). Dunod.
  • Sombart, W. (1902). Der Moderne Kapitalismus. Duncker & Humblot.
  • Tedino V. (2017). Environmental impact of economic growth in BRICS. University of Colorado at Boulder Department of Economics. https://www.semanticscholar.org/paper/Environmental-Impact-of-Economic-Growth-in-BRICS-Tedino/32f09d2d98fc7257d12ef073b906ca7531982971
  • UN (1996). Indicators of sustainable development: Framework and methodologies. United Nations.
  • UN (2003). System of environmental and economic accounting (SEEA).
  • UN (2013). System of environmental and economic accounting (SEEA).
  • Vanoli, A. (2002). Une histoire de la comptabilité nationale. Coll Repères. La Découverte.
  • Walker, G., Holling, C. S., Carpenter S. R., & Kinzig A. (2004). Resilience, adaptability and transformability in social-ecological systems. Ecology and Society, 9(2), 5.
  • Weber, M. (1922). Wirtschaft und Gesellschaft. Grundriß der verstehenden Soziologie. Mohr.
  • Wood, D. (2002). Medieval economic thought. Cambridge University Press.
  • World Bank (2000). Genuine saving as a sustainability indicator. Environmental Economics Series, Paper No. 77. World Bank.
  • World Bank (2006). Where is the wealth of nations? World Bank.
  • World Bank (2011). The changing wealth of nations: Measuring sustainable development in the New Millennium. World Bank.