Lars Östman towards a general theory of financial control

Interpersonal systems 

 

Financial control systems raise basic issues about equality. One fundamental idea might 

concern instrumentality. Those who contribute to the material, experiential and financial 

functions of others within a certain group should be rewarded. Personal capability and 

performance are decisive. This is the basic concept, even if constructing incentive systems 

on this basis will be exceedingly difficult. Another fundamental idea might be to provide 

what is needed for certain material, experiential or financial functions. Equality in such 

terms, or minimum levels, is the governing principle. Historically, nations have been obvious 

reference points in this respect. Partitioning is a possible strategy for wealthy people and 

nations, at least in the short term, but on the other hand dependencies evolve over time. In 

the end, everybody can be affected by the fact that some groups are not part of a social and 

economic context and exist where welfare and values are not shared.  

Financial control systems tend to make the distribution of wealth uneven. Not least the 

restructuring of economic systems makes this issue urgent. Transformation, development 

and the need for future functions bring opportunities and risks. To what extent should and 

could the protection of individual functions be an area for arrangements of individual finance 

functions? Or should it be approached by collective funding through an organisation that will 

try to maintain some functions for a certain group, such as citizens of a nation?