Public Net Worth

<p>As individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems - from long-term climate and demographic change to short-term crises like pandemics or war.&nbsp; Funding this activity, and managing the required finances sustainably, is difficult – and getting more so. </p><p>But governments don't provide – or use – basic financial information that every business is required to maintain. They ignore the value of public assets and most liabilities. This leads to inefficiency and bad decision-making and piles up problems for the future. </p><p>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 <i>the</i> measure of financial strength and success.</p><p>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.</p><p>The good news is that there are ways to deal with these problems and make government finances more resilient and fairer to future generations.</p><p> </p><p>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.&nbsp;</p><p></p>