1.1.
Finance and Legality: Long Term Evolution towards 2015 Key strategy breakdown
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Global ER principles revision
Global Distribution Model revision
Please refer to Q2 report for details on background Current state • New ER principles legislated at IPM 2013 • Harmonize pricing and service delivery to Global Partners across entities • Defines clear market access of AIESEC International • Sets up procedures for collaboration and co-sales between AI and Member Committees • Implemented gradually over next year across entities and with global partners
The global distribution model defines how global fees (AI budget and other investments) are distributed between the Member Entities. Currently it contains internal factors (Exchanges, Local Committees, Individual Members) and external economic indicators (GDP/PPP per capita) Current state: • New global distribution model legislated at IPM • Considers Market potential (25% of global fees) result in entities from large economies (ie. Mainland China, India, Brazil, US, Russia, Germany, France, Japan to pay higher proportion of fees based on potential in market) • GCDP performance (25%), GIP performance (25%), Number of Members in TMP and TLP (25%) multiplied with relative GDP PPP per capita factors still constitutes majority of fees • Fixed fees related to structures (LCs and MCs) removed from the model • Will be gradually implemented over next 12 months Consequence: • Ability to pay of entities based on current resources more in line with new model compared to old model, resulting in more even pressure on entities compared to global costs • Should lead to more harmonized decision making of Global Plenary regarding costs
Global Finance Legal Board During IC 2012 a Global Finance and Legal Board was established through legislation. It is established as a permanent virtual unit to provide constant and consistent support and development around Financial and Legal issues to the AIESEC network. It reports to AI VP Finance, but is run independently It currently has four divisions: 1. Education; 2. Standards 3. Statistics A physical planning meeting took place in Prague in December 2012. Please check here for plan and output on how to support the Global Network on Finance and Legality: http://www.myaiesec.net/content/viewwiki.do?contentid=10240825 For the Divisional plans, please see here: http://www.myaiesec.net/content/viewfile.do?contentid=10242654
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