Mismanaged Commercial Properties Caused Governments to Lose Trillions of Dollars
These days, everyone is concerned about our present public debt. Hence, it’s everyone’s favorite topic. However, less attention is given to areas on public assets. It is an irony considering the fact that public properties have the largest percentage of wealth in the world. According to writers; Stefan Folster and Dag Detter, global commercial assets have twice more than the global pension savings. These assets also comprise ten times the entire amount of the sovereign wealth on the Earth. Hence, if governments will start looking that “the glass is half full (Instead of half empty)”, they will realize that they have more assets than their debt.
The only issue here is the way public properties are managed. Property management is the very core in any type of ownership. And because this is important, there are services offered to help individuals on this matter. In fact there are companies that offer property management in San Antonio and many others which help property owners manage their assets well. And if the same attention and care is given to public assets then we no longer need to worry about public debts at all.
“Sadly what goes on in most of the government’s public assets is not properly known to them. Little do they know that if public assets are well managed, they can generate an annual income of 2.7 trillion dollars. This is more than the world’s overall spending on power, infrastructure, transport, communication and water”, wrote Dag and Stefan.
Furthermore, Dag and Stefan wrote on their book “The Public Wealth of Nations” that governments all over the world have a total of $75 trillion public assets. However, the amount is even greater considering the fact that these 2 writers excluded historic buildings, national parks and many others in their calculations.
These 2 writers suggested ways to solve the governments’ mismanaged property issues. They suggested for the officials’ transparency in their goals and value which will make a lot of difference. The officials must also separate the management of these properties from political influences. Hence, these assets must be put into the country’s wealth find. And such must be an independent entity, isolated from political masters.
U.S. government however showed improvement in managing its assets. In fact, they published their National Strategy, with the goal of using their real property efficiently. However, according to the Government Accountability Office, U.S. has excess and underutilized properties. Instead of using an owned building, the government still opts to lease. Worse is that they employ unreliable data when making property related decisions.
Solving the country’s debt problem still goes back to the principles suggested by Detter and Folster. The country must focus on more important matter and that is finding ways to manager their assets rather than simply focusing on the amount of money they owe.