The Big Mac International Index
How much burger do you get for your euro, yuan or Swiss franc?
Direct comparison of costs and true currency values, not arbitrarily controlled exchange rates, from one country to another is a very difficult task unless you are able to price identical items.
One item which is available virtually everywhere and which is rigidly controlled to the same standards of production is the Big Mac hamburger from the McDonalds Corporation's worldwide chain of restaurants.
By comparing the price of a Big Mac in one country with that in another country, it is possible to gain a relative measure of the value (the PPP or Purchasing Power Parity) of the two currencies, at least in terms of hamburgers. The Big Mac PPP is the exchange rate that would equalize the cost of the burger in any country to the cost in the United States, that is, the true relative value of the two currencies insofar as the prices of burgers are concerned.
The Economist newspaper periodically compiles comparative pricing of the Big Mac for many countries, tabulates the relative purchasing power of the currencies, and draws conclusions, some rather humorous, about the countries and their currencies.
The Economist's Big Mac Index is based on the theory of purchasing-power parity (PPP), the idea that exchange rates should move to equalise the prices of a basket of goods and services across different countries.
Various ICEC delegates and member organizations have suggested that ICEC compile such an index as it appears to have great value in comparing costs and prices between countries. However, since The Economist has already done this and makes the information available via the Internet, we are instead referring interested parties to The Economist at http://www.economist.com/markets/Bigmac/Index.cfm.
African QS conference a success
In April 2004 the Africa Association of Quantity Surveyors (AAQS), in association with the Nigerian Institute of Quantity Surveyors (NIQS), recently hosted the 3rd Triennial General AAQS Assembly in Abuja, Nigeria from Sunday 24 April 2005 to Friday 28 April 2005. The event was partnered in collaboration with the ICEC Region 3.
The theme of the congress was “New Partnerships for Africa’s Development (NEPAD): Challenges for Built Environment Professionals”. The very successful congress was well organised by the local organising committee comprising members of the NIQS. Attending the congress and visiting Nigeria was an unforgettable experience, made all the more pleasant by the friendly reception and hospitality afforded the foreign delegates by the hosts, the NIQS.
After arrival in Abuja, Nigeria on Sunday 24 April 2005, delegates settled in and attended cocktails in the evening. The congress then started in earnest on Monday morning when the foreign delegates were invited to visit the debating chambers of the President of Nigeria, Chief Olusegun Obasanjo (President and Commander in Chief of the Armed Forces of the Federal Republic of Nigeria). This was a memorable experience when the delegates were presented themselves to the President, and therefore receiving coverage on national television.
The balance of Monday and the whole of Tuesday was then dedicated to the congress, during which Dr Corne’ de Leeuw (representing AAQS) and Mr Egon Wortmann (representing ICEC Region 3) were invited to address the delegates. The congress was well supported, particularly by the local NIQS members. The Wednesday was taken up with the AAQS General Assembly meeting in the morning, followed by the ICEC Region 3 meeting in the afternoon and a closing dinner in the evening.
The Thursday was taken up with a visit by bus through the countryside to a major construction site 150km north of Abuja, where the Gurara Dam is under construction. The purpose of the Gurara Dam will be to ultimately provide water for irrigation, hydro electric power and water for the city of Abuja, the legislative capital of Nigeria.
On Friday the delegates all departed for home after an enjoyable and most enriching experience.
This article is an abridged version of ASAQS' Executive Director, Egon Wortmann's report of the conference
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ICEC’s application to gain non-government organisation (NGO) Roster Status with the United Nation’s Economic and Social Council (ECOSOC) is set to be considered at the next ECOSOC meeting in January 2006.
The first avenue by which NGOs took a role in formal UN deliberations was through ECOSOC. 41 NGOs were granted consultative status by the council in 1946. 2,719 organisations have today consultative status. Consultative status is granted by ECOSOC upon recommendation of the ECOSOC Committee on NGOs, which is comprised of 19 Member States.
To be eligible for consultative status, an NGO must have been in existence (officially registered with the appropriate government authorities as an NGO/non-profit) for at least two years, must have an established headquarters, a democratically adopted constitution, authority to speak for its members, a representative structure, appropriate mechanisms of accountability and democratic and transparent decision-making processes. The basic resources of the organization must be derived in the main part from contributions of the national affiliates or other components or from individual members.
There are three categories of status: General consultative status, Special consultative status and Roster status.
General consultative status is reserved for large international NGOs whose area of work covers most of the issues on the agenda of ECOSOC and its subsidiary bodies. These tend to be fairly large, established international NGOs with a broad geographical reach. Special consultative status is granted to NGOs which have a special competence in, and are concerned specifically with, only a few of the fields of activity covered by the ECOSOC. These NGOs tend to be smaller and more recently established.
ICEC has applied for Roster status. NGOs in the roster tend to have a rather narrow and/or technical focus. The roster lists NGOs that ECOSOC or the UN Secretary-General considers can make "occasional and useful contributions to the work of the Council or its subsidiary bodies."
Non-governmental organizations in general consultative status, special consultative status and on the Roster, that express their wish to attend the relevant international conferences convened by the United Nations and the meetings of the preparatory bodies of the said conferences shall as a rule be accredited for participation. Other non-governmental organizations wishing to be accredited may apply to the secretariat of the conference for this purpose.
Source: United Nations ECOSOC web-site.
450 Delegates at 9th PAQS Congress
The 9th PAQS Congress held in Dalian, China between 27-28 June 2005 attracted over 450 delegates from China and other PAQS countries. A fruitful meeting of the ICEC Region 4 Council was held in conjunction with the Congress.
Delegates came from Australia, Brunei, Canada, China, Denmark, Japan, Malaysia, New Zealand, Singapore, South Africa, Sri Lanka and the United Kingdom.
The Chinese Deputy Minister for Construction officially opened the Congres and welcomed delegates who included Mr Iwata from Japan. Mr Iwata is 92 years old and has attended every PAQS COngress since the first one in Singapore held in 1997.
The congress demonstrated the great efforts that the Chinese are making to improve the cost management of their construction proces. It also showed the opportunites that exist for foreign firms to partner with Chinese QS/Cost Engineering companies as China opens itself to meet its World Trade Organisation (WTO) commitments.
Source: Australian Institute of Quantity Surveyors Institute News Supplement, No.35, September 2005. Photos courtesy of the Institution of Surveyors, Malaysia.
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