HOW MUCH IS A HUMAN?

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“The construction of housing, commercial property, and infrastructure projects—roads, bridges, tunnels, railways, airports—for both the private and public sectors is one of the biggest industries in the world. It contributes around 10 per cent of world GDP, employs 7 per cent of the global workforce, and consumes around 20 per cent of the world’s energy (and generates a third of the world’s CO2 emissions). So important is the construction industry that it is widely seen as the best indicator of a national economy’s health” (https://cup.columbia.edu/book/the-economics-of-construction/9781788210157).

The aganwadi we have been designing is currently being costed at what is called the Concept Design stage.  This is where an estimate is put together, based on current market prices, to determine if the construction costs will come in around the client’s budget or not.  It significnatly mitigates the client's risk moving forward to more detailed design documentation. TAP’s budget is $12,000AUD.  Based on cost estimates of other anganwadi built in the area we will spend approximately 5 lakh – which is 500,000 rupees and nicely aligns with our budget.

If we then consider a typical anganwadi ranges from 50 to 80 square meters in size, we can conclude that the building rate (or construction cost) per square meter is approximately $165AUD.  

Yes, only $165AUD a square meter! 

Now, I will delve further, for those of my friends and colleagues who are economically inclined or intrigued:

  • -       In the early 2000s, in the US And the UK we used to work on a square meter rate of approximately $1,500USD for interior fit out projects.
  • -       In Melbourne around 2009-2011, we used to work on a square meter rate of $2,000 to 2,500AUD for standard construction projects.
  • -       In Broome, Western Australia from 2012 to 2016 we worked on square meter rates of $3,500 to $4,000 for remote projects.
  • -       Recently in Darwin, we have been working on square meter rates around $4,500AUD per square meter for typical construction project near urban centres.


That is almost 30 times the Indian rate per square meter.  Incredible! Let that sink in…

What does it mean?  I don’t know really, but I’m fascinated to consider what this means with regards to humanity globally. It obviously depends on how you look at the numbers (any economist or statistician will tell you this). 

Here’s how I have thought about this extreme discrepancy and I am open to further thoughts on the matter as I am by no means knowledgeable in this area:

If raw construction material costs are driven by a global market – for example structural steel today is approximately 250 rupees per kilogram – then it “should” be close to the same cost globally with exchange rates applied respective to each country.  So, one could concur that the main difference lies in the labour rates of each country (not solely, I know, but I’m trying to keep things simple as this is just meant to be a fun exercise in thinking about the cost of a building globally).

Now, after considering the above, think about how much you value physical and mental labor. Consider how this particular “resource,” one that is literally the expending of effort and energy by a human body, is quantified and applied by individual workplaces and governments.  

Why have I never questioned this before? Humans are a resource, no?  
So, why is our value somehow separated and determined by our employers, with some extremely minimal oversight by our respective countries? 
Is this a good or a bad thing?  
How would it be categorised and then quantified in a free market?  
How would this effect the striking differences currently in place between a developing and developed country? 

I’ll leave you to ponder this….as will I!

 (If you wish to familiarize yourself with the difference between developing and developed countries:  https://study.com/academy/lesson/economic-inequality-differences-in-developed-and-developing-nations.html)



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