Indicator of universal wage in post 2015 millennium development goals (MDGs) and sutainable development goals (SDGs)

A POSSIBLE UNIVERSAL WAGE INDICATOR

By Georges RADJOU CEO MBA DUPEBH

http://fr.slideshare.net/gsradjou

Annual Ministerial Review (AMR) 2014 – Sustainable Development Goal (SDG) Indicator

INDICATOR FOR A POSSIBLE UNIVERSAL WAGE CONSTRUCTION

Indicators to be used with SDGs (also Paris Declaration and could be used for Post Busan and developpment It is about development cooperation. The indicator is ''assessing provision on historical current and future ressources''

Sources : Pied de poule p.p (maritime studies), China pension reform (Professor Xuejin Zuo), Highoutput Management, Adrew Grove, Intel CEO)

In which direction the organization is heading ? This is the question ! An indicator should be able to tell, by anticipation before you reache the goal, where your organization is heading. I have constructed an indicator, which looks for me like the story of the bicycle rider. Either it is watcing the road or not !

(Wrong Indicators rarely tells the truth (where your organization is heading)- If your organization falls, it is likely because your were not watching at an indicators- Your organiation was watching everything, except an indicator. So, I developed a possible indicator for a Universal wages by looking at what matter in Post 2015 MDGs and Sustainable Development Goals (after 2015) and the Development agreed goals (Some legal basis are already existing)


Source : BIRD CEO

Set of slides (Part A)

● SOME ASPECTS OF CHINA 5 PILLAR PENSION FUND MODELING THROUGH THE LENS OF PROFESSOR ENTREPRENEUR XUEJIN ZUO PROPSOED REFORM FRAMEWORK

● USED SELECTING AND MODELING AN INDICATOR FOR AN UNIVERSAL WAGE


Source : BIRD CEO

SDG indicator global architecture : criteria and performance specifications


Source : BIRD CEO


● SOME ASPECTS OF CHINA 5 PILLAR PENSION FUND MODELING THROUGH THE LENS OF PROFESSOR ENTREPRENEUR XUEJIN ZUO PROPSOED REFORM FRAMEWORK

● YOU WILL COMPARE IT WITH MY OWN SET OF INDICATOR FOR POST 2015 MDGS AND SDGs

● THE IDENTICAL PART IN BOTH THE PENSION REFORM MODEL AND THE INDICATOR IS THE MECAHNISM OF PIED-POULE I .E . THE SAFETY DISTANCE BETWEEN THE BOAT AND THE SEA FLOOR.

● THIS PRESENTATION IS A GROSS PHASE PROJECT (BUSINESS CASE OF INDICATOR) . A FURTHER DEVELOPMENT COULD BE INVESTIGATED BY MODELING THE PENSION FUND AND THE INDICATOR OF WAGES WITH MATHEMATICAL EQUATION-

● IT IS NOT DIFFICULT - BUT FOR THE MOMENT I JUST STAY ON THAT LEVEL OF THE EXPLANATION- WHICH ARE THE SOURCES OF THE MODEL

=> PERSONALLY, WHAT UN LACKS ARE MODELS- THERE ARE NOT ENOUGH MODEL TO COVER VARIETY OF EXPERIENCE IN SOCIAL, ECONOMIC AND ENVIRONEMENTAL SYSTEMS

=> ALSO, UN LACKS OF EVIDENCE BASED POLICY IN NETWORKS

➔ MATHEMATICAL MODELING CAN USE DIFFERENTIAL EQUATIONS FOR ONE OR SEVERAL VARIABLES. I THINK THE ISSUE IN THE REFORM OF BOTH PENSION FUND AND INDICATORS ARE LIMITED BY INTERFACES BETWEEN DIFERENT ENVIRONEMENT

➔ WHICH IS THE SOURCE OF RISKS. HOW TO ENSURE A SMALL UNCERTAINTY IN THE METRICS ? HOW TO ENSURE THAT SYSTEMS ARE CONTINUOUS AND HOMOGENOUS ?;;;;

Indicator to avoid to react to shortage Shortage start

Risk of disruption = shortage end

Not enough resources = Shortage

Resource reserve

Indicator of shortage

Zone of riskanticipation

I (max)

I (min)

Action = business as usual

Flow out

Precautionary measures

No precuationary measures

Total resources

To further exploration(deep ressource exploration)

Resource used

Sustainable development process

Consumption

ProductionConservation

+ Preservation

Initial resource

Final reource

SUSTAINABLE DEVELOPMENT IMPLICATION IN THE MANEGEMENT OF THE PLANET RESOURCES

Assessment of future resources

Assessment of current resources

Assessment of historicalresources


Source : BIRD CEO

My question is the reform survival ? (Which reform) Stable or unstable? Who is in command of the pension funds (Chinese, bosses, Communism Party, fund organizations, workers)

WHICH SEGMENT OF THE CHINESE SOCIETY IS EMPOWERED BY THE PENSION REFORM AND THE TRANSFORMATION OF THE OLD SYSTEM INTO A

NEW ONE- WHO ARE THE WINNERS AND THE LOOSERS, OR ARE EVERY STAKEHOLDERS

EMPOWERED BY THE REFORM- OR IS IT JUST AN ADMINISTRATIVE REFORM OR A REFORM UNDER

THE HAND OF THE EMPLOYERS ;

When professor XUEJIN ZUO presented his pension reform with the 5 pillars, he meant that China reform

would be balnced -as Chinese people love equilibrium like ''Ying'' and ''Yang'' of Chinese philoqophy that

made the Chinese nation

;

.

Professor Xuejin Zuo sees the pesnion reform as an elment of stability wtih a strength and a weekness

THE SPIRIT OF THE REFORM ACORDING IS THE BALANCE AND EQUILIBRIUM REFORM SO IT SERVES ALL (XUEJIN ZUO Research Professor and former Executive Vice president, shanghai Academy of SocIal Sciences (SASS)

Pension Reform in China/ 5 Pillars of Transformation


Source : BIRD CEO

Individual pension

Cost(Fixed)

Benefitvariable

Good pension

Bad pension

Branch 1 branch 2

BEFORE THE REFORM

Does the pension take the wealthInto account

Big Wealth

Small wealth

Aim of the reform

New pension system

Benefit

Small costs

Does the reform take into account peoples wealth- What is the wealth Gap in communist capitalist country ?

THE SETTING OF TJE PILLARS (WHICH PILLARS)


Source : BIRD CEO

Level of participation and contribution

Job Branch Pensions

(Un)Formal sector tend to not participate

….They have their own....

Branch (a) branch (b) branch (c) branch (d)

Not contributory (poor peoples) 3

2 NRP

NWR

PUWS 1(Workers)

Endebted peoplesNo money, old peoples > 65 years old

2 Workers

Maximum (M)

Minimum(m)

M + m 2

INNOVATIVE REPRESENTATION OF CHINA PENSION FUND REFORM

Part A

Part B

Part C

Part D

Part E


Source : BIRD CEO

CHINESE PENSION RISK

FACTORS OF RISKJOBREVENUE

MARKET TRANSPARENCY

GROWTH RATEECONOMY

JAPAN CARRY TRADE BETWEEN USA AND CHINA

INTERNATIONALEXCHANGE

AND FINANCE

RISK > 0(opportunities)RISK > 0(opportunities)

Wages compositon (ratio social and individual return

DANGER !!!

Illegal worksMigration, TrafickingUnformal sectorCorruption

Unformal sector

Legally not contributing peoples

Industry Branch (private pension)Self contributory

VULNERABLES (Poor, disabled, marginals, Over 65

Workers, Staffs

workers

Training, skillsWorking hours

RISK OF THE REFORM

ECONOMY

Vulnerables

DANGER

Opportunity

Source : BIRD CEO


Set of slides (Part B)

● Indicator of Sustainable Development Goal(s) -SDGs


Source : BIRD CEO

Organization Indicator

MAXIMUM(Over reacting Indicator

MINIMUM(Shortage Indicator)

INDICATOR (I)PAIRING INDICATOR

Flow of ressource (overtime)


Source : BIRD CEO

Proposition for Indicator of Sustainable development (number one)

● Case of a proposed indicator for universal wage in the Post 2015 Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs)


Source : BIRD CEO

Indicator to avoid to react to shortage Shortage start

Risk of disruption = shortage end

Not enough resources = Shortage

Resource reserve

Indicator of shortage

Zone of riskanticipation

I (max)

I (min)

Action = business as usual

Flow out

Precautionary measures

No precuationary measures

Total resources

To further exploration(deep ressource exploration)

Resource used

Sustainable development process

Consumption

ProductionConservation

+ Preservation

Initial resource

Final reource

SUSTAINABLE DEVELOPMENT IMPLICATION IN THE MANEGEMENT OF THE PLANET RESOURCES

Assessment of future resources

Assessment of current resources

Assessment of historicalresources


Source : BIRD CEO

The 3 pillars of Sustainable Development

ECOLOGY

ECONOMY SOCIETY

ISO SUSTAINBAILITY

3 PILLARS WITH THE SAME WEIGHT

Sustainability centred on economyWith a relative value for ecology and poor representation ofsociety

(2, 3,1)(E, E, S) =

SDG

EconomicPillarEconomicPillar

EconomicPillar

EconomicPillar


Source : BIRD CEO

Set of slides (Part C)

● A possible indicator for a Universal Wage in Post 2015 MDGs and Sustainable Development framework

ORIGIN OF THE UNIVERSAL WAGE

1- CHINA PENSION REFORM2- BASIC INCOME (FRANCE)

The PROJECT OF the Indicator of Universal Wage for Post 2015 MDGs and Sustainble Development Goal(s) is an hybrid organization indicator from the combining concepts/

Concept 1: professor entrepreneur Xuejin Zuo, and his 5 pillars pension fund reform in China. (UNIRISD) – it is a project, which is not yet prototyped, as there is no approval yet from the Chinese government.

Concept 2 : existing project, which has been implemented and it is assessed on a regular basis. For some national stakeholders, France basic income is suspected to make people lazy -as they are not willing to seek for work. (in German economy, the Chancellor has introduced a basic income, recently. But, Germany has a more flexible employment market compared to France (due to the SMIC and France social model, (An economist in prospective said France was the most socialist country in Europe, at the moment)

CONCEPT 1 + CONCEPT 2 CONCEPT OF UNIVERSAL WAGESource : BIRD CEO

INTRODUCTION


Firstly to understand how universal wage i.e. a salary for all can work, one needs to understand a bit of maritime study

● Pied-poule in maritime study is an analogy with the purchasing power in economy, both are abbreviated with p.p. (in my assumption)

Source : BIRD CEO


Hypotheseses for a possible universal wage

● Origin of the reform-

● H1 : The pillar of the living in society (Adam Smith) does not exist today- a principle on which society was structured and defined (Sociology). If the wealth of nations do not exist, but the industrialization process has kept growing- so, it is normal that societies have aged- without reforming the initial Adam Smith paradigm (specialization of citizen and exchanges of goods between the citizen based on relative comparative avantges)

● Recall the paradigm-if I am good at making bread, and you are good at driving a car, we both have a comparative avantage- it is best for the whole society that we specialize and exchange- I make the bread for you, and you drive for me (and for others too)

● Today, this hypothesis has been missing-

● H2 : the purchasing power of organization is the living standard compared to the cost of life- In fact, it is not what matter in my assumption to build an Univerasl wage- What is paramount is to consider that the capital accumulation during of whole life can be assimilated to a risk < 0 or a risk >0

● Which I have compared with the Pied Poule of Maritime study-


Source : BIRD CEO

Pied-poule ?

SAIL

p-p (Pied poule) ?

Surface of the sea level

BoatHigh tide


Source : BIRD CEO

Average tide

Lowest limit of the tideSea floor

Lowesr part of the boat

The master boat, which is represnting the organization within its natural, technical, politica, economic, humanitarain, cultural... environment

Narrative of the journey of an organization (case of a boat)- but it is similar for any organization except the energy uses (wind, oil, nuclear, muscles,....)My assumption is within the framework of Sustainble development Goal- So, I have prioritize a boat with a sail under the influence of the wind

NARRATIVE of a boat, which is representng the organisation and that wanted to set sail-

SET SAILING means ''having enough energy (purchasing power) (p.p) to satisfy the need of the organization.

But, they are issues during the boat trip, because the sea goes up and down acording to the tide (fluctuation of the economies and the growth, and the organization is following is objectibes -goals- for example, like in the slide it wanted to go through ''a pass'' i.e. manage a transformation or a change- It was confronted with the small pied poule- (purchasing power)


Source : BIRD CEOSource : BIRD CEO

Pied de Poule (''pied poule'' i.e. p.pfor ''chicken leg/foot''

p.p means also the Purchasing Power (p.p)

The Chicken leg in the assessment of an

Univeral salary -wage-


Source : BIRD CEO

p.p. = 0

p.p. > 0

Universal Wagep.p. < 0

Conclusion = universal wage is equivalent to pied poule (p.p.) = 0 at all time (and for all)

Strategies

Scenario 1

Scenario 2

Scenario 3


Source : BIRD CEO

Optimistic

Neutral

Pessimistic

pessimsticoptimistic

neutral

Sea floor

Lowest part of the boat(s)

In solidarity economy, which ''pied poule'' strategy (scenario) will help to build a Universal wage (and what is the indicator ?)

SCENARIO 1 PP>0 WEALTH ACCUMULATION AT DEATH

IS IT WORTH TO AHVE ACCUMUALTED MONEY WHEN YOU PASSED YOU LEAVE WITH NOTHING

SCENARIO 2 PP < 0 YOU ARE LIKELY TO PASSED POOR AND FULL OF DEBTS

IS IT NORAL IN A SOLIDARITY ECONOMIES THAT SOME MEMBERS OF THE SOCIETY CNA RUIN THEIR LIFE WHILE THEY COULD CONTRIBUTE TO THE GROWTH

SCENARIO 3 PP = 0I PASSED AND I LIVED

PEOPLE PASSING DO NOT OWN AND DO NOT ACCUMULATE IT IS CORRESPONDING TO A BALANCE, WHICH IS THE STATUS OF UNIVERSAL WAGE


Source : BIRD CEO

What is p.p ?

● By concept ● In words

p.p

Distance between the end of the boat

and the sea floor (Indicator I (sf) With math/ p.p. = I eb – I sf

I (sf)

I (eb)

I (eb)

p.p

Pied de poule

Purchasing power

Chicken leg


Source : BIRD CEO

Set of slides (Part D)

Conclusion and Recommendation :

The indicator for a Universal wage


Source : BIRD CEO

How to transfer from purchasing power (pp) to universal wage

● It is not difficult- as one can observe that p.p.● Is the security measure to protect the organization from

''wreckage'' (like a boat) i.e bankruptcy, downsizing, closure, turmoil....

● Indicator p.p (pied poule = purchasing power) is either positive (p.p. > 0) or negative (p.p. < 0) – and eventually p.p = 0 -

● Interpreting p.p (pied poule ''for the french maritime word which is the safe distance betwen the boat and the sea floor when the vessel sets sail, in term of economy, it is the equivalent of the organization i.e. individual, household, firm, NGO, governments....purchasing power)

SEE ORGANIZATION INDICATOR


Source : BIRD CEO

Recommendation: The indicator for Universal wageRemark : I did not study the the indicator risks

WHICH ARE PRETTY LIKELY TO RESEMBLE TO THE CHINESE PENSION RFORM RISKS

ON INDICATOR

THEREFORE MY RECOMMENDATION IS TO PROTOTYPE THE UNIVERSAL WAGE IN A STEP BY STEP PROCESS BEFORE WIDE SPREAD AND IMPLEMENTATION.

➔ It is particularly true when the ressources will be redcued (not sustainable), but better acting now to anticipate

➔ paid jobs have been replaced by activities, quality jobs And rewarding people on the merit and quality activities.

➔ This indicator is/are 2 indicator(s) one of shortage for the purchasing power and one for preventing organization to react to purchasing power shortage. Therefore thus, universla wage is open to negotiation too (in the green economy with SDGs

➔

➔ PURCHASING POWER => HOW CAN I GET FROM MY UNIVERSAL WAGE ACCORDING TO MY LIVING STANDARDS => THE ANSWER IS LIKELY TO BE THE PIED -POULE

➔ IT IS A GAP BETWEEN THE PRODUCTION MODEL AND THE COSNTRUCTION MODEL WHICH IS THE COMMUNTY RESILIENCE


Source : BIRD CEO

Organization Indicator

MAXIMUM(Over reacting Indicator

MINIMUM(Shortage Indicator)

INDICATOR (I)PAIRING INDICATOR

Flow of ressource (overtime)

P.P

PIED POULE


Source : BIRD CEO

Comparing the Organization Indicator OI = (Imax, Imin) with the Organization Pied Poule

OPP = Ieb – IsfOI = (I max, I min)

OI = OPP => Ieb = I max

and Isf = I min

The life cycle ofThe organization

opp

I max

Imin

INDICATOR

Pied pouleor the organization Purchasing power

Ieb

Isf

Organization OI Organization OPP

ORGANIZATION ENVIRONEMENT

Annual Ministerial Review (AMR) 2014 – Sustainable Development Goal (SDG) IndicatorAnnual Ministerial Review (AMR) 2014 – Sustainable Development Goal (SDG) Indicator

Source : BIRD CEO

On viewpoint of agents of the markets

Nothing has changed, the Universal wage will be under negotiation of stakeholders

The Universal indicator model is likely to be used like a buffer model, with ressource in and ressource out in order to fix the value of the Universal wages

Universal wage is likely to look like a credit point passpeort which organization need to refill, recharge retore, reuse and resplenish


Source : BIRD CEO

EnD

03/20/2014

Business

Indicator of universal wage in post 2015 millennium development goals (MDGs) and sutainable development goals (SDGs)