Enhancing Government Transparency and Accountability: A Way to Economic Growth Plenary II Ian Ball Chair, CIPFA International
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Enhancing Government
Transparency and Accountability:
A Way
to Economic Growth
Plenary II
Ian Ball
Chair, CIPFA International
2
1989 and all that…
3
25 Years on…
• Accrual basis is the reporting benchmark
• IPSAS established – increasing adoption
• Sovereign debt crisis
• Continuing political issues
• Accrual budgeting gaining support Austria Russia
Brazil Slovakia
Chile South Africa
Columbia Spain
Costa Rica Switzerland
Estonia Thailand
Indonesia European Commission (for their own financial statements)
Kenya North Atlantic Treaty Organization (NATO)
New Zealand Organisation for Economic Co-operation and Development (OECD)
Panama United Nations System
Peru
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Direction of the global economy
Market volatility
Austerity vs Growth
Inter-governmental competitionand cooperation
Demographic change – especially ageing population
Trust (or lack thereof), governance and accountability
Debt denial and the concept of “risk-free”
The Greek debt exchange …. set a new world record in terms of … aggregate creditor losses, easily
surpassing … the default and restructuring of Argentina 2001-2005.
The Global Environment
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Countries with Sovereign Restructuring
Algeria (07/1996) Pakistan (12/1999)
Argentina (04/1993, 04/2005) Panama (05/1996)
Brazil (04/1994) Peru (03/1997)
Bulgaria (06/1994) Philippines (12/1992)
Chile (12/1990) Poland (10/1994)
Cote d'Ivoire (03/1998) Russia (08/2000)
Croatia (07/1996) South Africa (09/1993)
Dominican Rep.(08/1994, 05/2005) Ukraine (04/2000)
Ecuador (02/1995, 08/2000) Uruguay (05/2003)
Mexico (05/1990) Venezuela (12/1990)
Morocco (09/1990) Vietnam (12/1997)
Nigeria (12/1991) Serbia & Montenegro (07/2004)
Source: Cruces J and Trebesch C, Sovereign Defaults: The Price of Haircuts (Preliminary Paper) December 2010
Between 1990-2005
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Increase in Debt…
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An Accounting & Financial Management Challenge?
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It is not impossible…
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Good accounting seems to help
New Zealand Named Third World's Most Prosperous Nation Ahead of
Australia, UK, US
By Reissa Su | November 3, 2014 7:07 PM EST
Despite facing the challenges of location, small domestic market and productivity, New
Zealand continues to improve as a result of the government's commitment to sound financial management.
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The ECB collateral for Greece must be lowered to 5 pct
Regling on Greek Debt
Bailout Fund Boss Says Current Greek Debt Analysis ‘Meaningless’
Bloomberg NewsKlaus Regling attends the Asian Development Bank’s annual meeting in New Delhi on May 3.
Greece has a huge competitive advantage, which to date has been only spoken of in the shadows. Specifically, Greece’s public debt as a percentage of GDP – when calculated correctly under international accounting standards – is one-third (yes, 1/3!) of its credit peers Ireland, Italy, Spain and Portugal, and not the 175 percent blindly repeated. The country’s leaders must communicate effectively this huge competitive advantage.
Friday October 31, 2014
By Dimitri Tzanninis
It would help Greece more than any other country…
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And it is not incompatible with social progress
New Zealand ranked first in the world for social and environmental progress
Switzerland, Iceland and the Netherlands also scored well in Social Progress Index,
which takes focus off economic output
New Zealand scored high in the Social Progress Index for personal rights and freedom, internet
access and school enrolment.
New Zealand has come first in a global index that ranks countries by social and environmental
performance rather than economic output in a drive to make social progress a priority for
politicians and businesses.
Photo: NZ Tourism Board
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“From Renaissance Italy, the Spanish Empire, and Louis XIV’s
France to the Dutch Republic, the British Empire, and the early
United States, effective accounting and political accountability
have made the difference between a society’s rise and fall. Over
and over again, good accounting practices have produced the
levels of trust necessary to found stable governments and vital
capitalist societies, and poor accounting and its attendant lack of
accountability have led to financial chaos, economic crimes, civil
unrest, and worse”
Jacob Soll, The Reckoning: Financial Accountability and the Rise and Fall of Nations, Basic Books, 2014
The BIG Picture
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Or, more succinctly….
Patrick Henry
American colonial revolutionary
Enhancing Government
Transparency and Accountability:
A Way
to Economic Growth
Plenary II
Ian Ball
Chair, CIPFA International
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