Where to Download the Methodology Briefing- applying the Real Capital Framework to influence policy

Communicating science to policy makers in a way they will understand and action science-based insights requires more than just presenting figures. The process is multi-layered, multi-dimensional and multi-discipline.

Our methodology briefing brings together all the tools needed to develop your abilities in this area.

And it is badly needed: economic thinking pervades decision-making today. Although necessary, it is not sufficient. How else can we explain how the gap between predictions of the effects of global warming differ so radically between economists (3 degrees will reduce economic growth by a few percentage points) and scientists (existential crisis)? The economic perspective gives a feeling of policy control, but when research points out that only a proportion of people can afford healthy food, you have to wonder how society can be set up to basically fail at even the basics.

Real Capital, not just the financial perspective

The briefing starts with an overview of what Real Capital is. Real Capital is that which we have to provide our living conditions but which we do not use up. (Think atoms.) One advantage of talking about Real Capital is that it is quantifiable and qualifiable so you can present facts and figures in a rational way.

Normatives, a way to avoid being prescriptive

Scientists tend not to like telling policy makers what to do. They treat them as responsible adults who can react to facts. In reality, most policy makers struggle to understand what they can do to influence their immediate areas of laws regulations and monetary incentives to address a concern raised by Scientists. The Real Capital Framework helps those producing reports as decision bases to clarify what should be if that which is taken to be important is to be realised. The briefing explains how to talk normative without being prescriptive.

Quantifying Real Capital

Much of the briefing offers methodology to quantify the status of real capital. And to put a value on it. Not as what it is worth, but the investment required to regenerate it to sufficiency. Also, quantifying the status of real capital will clarify why things in society work or don’t function as they should.

Not economic growth, but Real Capital maturity

The briefing introduces how to measure maturity of real capital. Maturity is a useful lens to view real capital as it quantifies when the capital reaches a status of fit for purpose.

Real Capital Insolvency

Policy makers understand insolvency as the inability to raise cash to pay your bills. Real Capital insolvency is a useful tool to analyse the status of Real Capital, what it should be and the monetary cost to regenerate it. Hundreds of years of economic thinking, that sees resources as infinite, has resulted in the drawdown of much of the Real Capital – healthy forests, stocks of minerals, infrastructure, etc – we rely on. Using the insolvency perspective a sense of urgency can be developed.

Using economic language: Asset Liability and Equity tables

Policy makers are familiar with Asset Liability and Equity (ALE) tables, one of the tools used by economists and something with provides a feeling of order to situations that can otherwise appear difficult to manage. Several sections of the briefing explain how to apply these tables to real capital evaluation. This not only helps match concerns raised by a scientific perspective, but also creates a basis to start system dynamics modelling.

Worked examples

The rest of the briefing takes you through worked examples to show how to use tables and diagrams to illustrate all of the tools above. It especially links real capital status to investment needs.