Paper short abstract:

This paper considers the way in which finance is seen most often in relation to commercial aggregates rather than issues of distribution and the impact of poverty and inequality, questions of sustainability and equality as between income groups, gender and generations.

Paper long abstract:

Culture, custom and ways of life are important determinants of thinking and objectives. Sustainability as a concept can also be important to these individuals and groups. Replacing a financial theory of value with a sustainable theory of value, leads to further problems with any singular approach. Incorporating the two reveals practical problems to reach a practical operational methodology. The Human Development Index represents a first step to this, but an examination of the problems of diffuse measurement can be seen from an examination of the Millennium Development Goals and the Sustainable Development Goals. Where do finance objectives and operational delivery mechanisms fit within these overall approaches or is availability of finance a constraint rather than a driver of development? Are rates of return and, importantly, future discount rates, as conventionally assessed, out of step with those that groups and individuals operate on in their lives?

The paper is based on the contestation that economic growth is not a sufficient condition for development, if it is a necessary condition is left open for discussion. The enabling, or constraint-easing role of finance and financial operations to development are accepted as valid, as part of the potential contributors to development. How to operate ideas on sustainability in an achievable manner and the way to integrate them into development and the role of finance in so doing, is complex and difficult, but possible.

The paper analyses issues relating monetisation and measurement, the inclusion of sustainability, gender, poverty, distribution and resource use in assessing development.