YouTube clips
http://www.youtube.com/watch?v=WMuXtQ7UYOM
Functions of accounting in
the rulership and rule
transplanted from the
Atlantic to the Pacific
Keith and Hegnes Dixon
Te Whare Wānanga o Waitahā
Where are we? – the Pacific
Whalers, copra traders, planters,
phoshateers, foresters and farmers
Origins of Accounting
I-Matanglands
Plus
Accounting Technology
Kiribati and
Aotearoa New Zealand
Were there any accountings in
Kiribati and Aotearoa before IMatang arrived?
Rule and Rulership Today
Government of New Zealand Budget 2012
Kiribati Government 2012 Budget
Present-day “Pacific” Institutions –
Executive and Legislature
C(K)abinet
Ministries
Other Crown/Republic
Bodies
Head of State
House of
Representatives
Mwaneaba ni
Maungatabu
New Zealand Governance Structure
Treasury, 1989
Kiribati Governance Structure
Secretaries - Ministers
Citizens of the Republic
Ministries
Mwaneaba ni
Maungatabu
Beretitenti & Kabinet
Kiribati Constitutional Structure
with Accounting emphasised
Legislature
President
Auditor-General
Finance Minister
Audit Office
Ministry of Finance
Economic Planning
Accounting
Public Service Office
Ministers of Various Portfolios
Spending Ministries
Revenue Collection
World Governance Bodies
United Nations
and its various
offshoots
International
Monetary Fund
OECD
World Bank
G8
USA Federal
Government
Agencies
European Union
Agencies
Commonwealth
Various World
Religions
Various
Transnational
Corporations
Peoples Republic
of China Agencies
Various Aid
Organisations
What is Accounting Technology?




Bookkeeping, financial accounting and reporting,
management accounting, information systems, auditing,
public finance, taxation, organisational finance
Numerical, monetarized calculation techniques and related
practices that mediate relations between individuals, groups,
and institutions, including accountability relationships that
result from social relations
Plays distributive and ideological roles, includes incentive
schemes and financing relations, and conveys knowledge
over some distance
Mix of changing knowledge and skills, practices and theories,
applied by and to people in various organisations and society
Accounting and related practices
within the Executive
• Review of past & present; contemplating & forecasting future
• Setting Priorities
• Estimating
• Budgeting
• Issuing Warrants to officials to collect revenues and spend appropriations
• Transacting and functioning within the warrants issued
• Bookkeeping
• To legislature - oral accounts, answering questions, engaging in debates
• Publishing reports before, during and after transactions and events
• Having audits done of their financial statements
• Having audits done of their statements about service performance
Realm of New Zealand
Public Finance Act 1989
Section 4 Expenses or capital expenditure
must not be incurred unless in accordance
with appropriation or statutory authority
(1) The Crown or an Office of
Parliament must not incur expenses or
capital expenditure, except as expressly
authorised by an appropriation, or other
authority, by or under an Act.
Realm of New Zealand
Constitution Act 1986
Parliament and Public Finance
Section 21 Bills appropriating public money — The House of
Representatives shall not pass any Bill providing for the
appropriation of public money or for the imposition of any charge
upon the public revenue unless the making of that appropriation
or the imposition of that charge has been recommended to the
House of Representatives by the Crown.
Section 22 Parliamentary control of public finance — It shall not
be lawful for the Crown, except by or under an Act of
Parliament,—
(a) To levy a tax; or
(b) To borrow money or to receive money borrowed from
any person; or.
(c) To spend any public money.
Constitution of Kiribati 1979
CHAPTER VIII: FINANCE
Taxation
106. No taxation shall be imposed or altered except by or under law.
Consolidated Fund
107. (1) There shall be in and for Kiribati a Consolidated Fund into which . . . shall
be paid all revenues of the Government.
Withdrawal of money from the Consolidated Fund
108. (1) No money shall be issued from the Consolidated Fund except upon the
authority of a warrant under the hand of the Minister of Finance.
(2) No warrant shall be issued by the Minister of Finance for the purpose of
meeting any expenditure unless(a) the expenditure has been authorised by an Appropriation Act; or
(b) the expenditure has been authorised appropos this Constitution: or
(c) it is statutory expenditure.
Potted History of “British-settler”
New Zealand Institutions

De facto unicameral parliamentary democracy elected under MMP

Colony superseded by Dominion and then by Realm

Establishment of single, bicameral Parliament for whole NZ Colony

Establishment of settler Provincial Governments in each province

Annexation of New Zealand by Queen Victoria of the UKGBI

Bill of Rights 1688 under King William III and Queen Mary II

Confirmatio Cartarum 1297 (referred to as Magna Carta) under King Edward
Longshanks

Magna Carta 1215 under King Jean Sand Terre (John Lackland)

Norman Conquest of England under Duc Guillaume (William) of Normandie

Post-Roman Anglicisation of southern Britain
Potted History of Institutions
which I-Kiribati presently occupy

Executive presidency and unicameral parliamentary democracy elected under FPP

Internal Self-Rule Bodies for whole of G(E)I Colony

Indirect Rule by resident commissioner and district officers with island Native Governments

Annexation of Gilbert Islands by Queen Victoria, represented by resident commissioner

Western Pacific High Commission under Queen Victoria of UKGBI, represented by high
commissioner, within the General Act of the Conference at Berlin of the Plenipotentiaries

Bill of Rights 1688 under King William III and Queen Mary II

Confirmatio Cartarum 1297 (referred to as Magna Carta) under King Edward Longshanks

Magna Carta 1215 under King Jean Sand Terre (John Lackland)

Norman Conquest of England under Duc Guillaume (William) of Normandie

Post-Roman Anglicisation of southern Britain
Institutions in “Atlantic” “democracies”
Executive
– directly elected or
drawn from
legislature, plus
appointed officials
PopularlyElected
Legislature
(unicameral or
bicameral)
More geography - the old Atlantic
Original “Norman” Model of Institutions
Dieu et mon droit
Monarchy – Divine
Right of the King or
Queen to rule over
his/her subjects
King
Council
For explanation and analysis of this basic model, see Congleton (2001)
“King and Council” Change Template
(Congleton, 2001)
William (or Guillaume) I

Descended from Norse who colonised Normandy

Pressed claims to English throne after death of Edward the
Confessor through military action c. 1065

Known as “the Bastard”, but also “the Conqueror”

Absolute Rule by virtue of Divine Right backed by military
and civil governmental apparatus of the feudal system

Commanded preparation of Domesday Book, making possible the
levying of feudal dues
Magna Carta (13th Century)
John Lackland and
Edward Longshanks
12. Nullum scutagium vel auxilium ponatur in regno nostro, nisi per commune consilium
regni nostri, nisi ad corpus nostrum redimendum, et primogenitum filium nostrum militem
faciendum, et ad filiam nostram primogenitam semel maritandam, et ad hec non fiat nisi
racionabile auxilium; simili modo fiat de auxiliis de civitate Londoniarum. [Articles, c. 32.]
....
14. Et ad habendum commune consilium regni de auxilio assidendo aliter quam in tribus
casibus predictis, vel de scutagio assidendo, summoneri faciemus archiepiscopos, episcopos,
abbates, comites, et majores barones sigillatim per litteras nostras; et preterea faciemus
summoneri in generali per vicecomites et ballivos nostros omnes illos qui de nobis tenent in
capite ad certum diem, scilicet ad terminum quadraginta dierum ad minus, et ad certum
locum; et in omnibus litteris illius summonicionis causam summonicionis exprimemus; et sic
facta summonicione negocium ad diem assignatum procedat secundum consilium illorum
qui presentes fuerint, quamvis non omnes summoniti venerint
Magna Carta (13th Century)
Established that the king may not levy or
collect any scutage, save with the consent
of his royal council. Path from (Absolute)
Monarchy to Aristocracy, and House of
Lords Spiritual and Temporal
Imperial enactments in force
in New Zealand in 2009
NB the original Magna Carta was c. 1215 but the Confirmatio Cartarum
1297 is the one that has been passed down to England and its
colonies and former colonies.
Bill of Rights 1688
The Heads of Declaration of Lords and Commons, recited.
WHEREAS the late King James the Second by the
assistance of diverse evill Councellors Judges and
Ministers imployed by him did endeavour to subvert and
extirpate the Protestant religion and the lawes and
liberties of this Kingdome.
…
Levying Money.
By levying money for and to the use of the crown by
pretence of prerogative for other time and in other
manner then the same was granted by Parlyament.
…
utterly and directly contrary to the knowne lawes and
statutes and freedome of this Realme.
Bill of Rights 1688
The Subject's Rights.
And thereupon the said Lords Spirituall and Temporall and Commons
pursuant to their respective letters and elections being now assembled
in a full and free representative of this nation takeing into their most
serious consideration the best meanes for attaining the ends aforesaid
doe in the first place (as their auncestors in like case have usually
done) for the vindicating and asserting their auntient rights and liberties,
declare
…
Levying money—That levying money for or to the use of the Crowne by
pretence of prerogative without grant of Parlyament for longer time or in
other manner then the same is or shall be granted is illegall.
Path toward separation of the Monarch as
a person from the office of Monarch, in the
institution of The Crown
No taxation without representation (c. 1765)
The House of Representatives cannot only refuse, but they alone
can propose, the supplies requisite for the support of government.
They, in a word, hold the purse that powerful instrument by which
we behold, in the history of the British Constitution, an infant and
humble representation of the people gradually enlarging the
sphere of its activity and importance, and finally reducing, as far
as it seems to have wished, all the overgrown prerogatives of the
other branches of the government. This power over the purse
may, in fact, be regarded as the most complete and effectual
weapon with which any constitution can arm the immediate
representatives of the people, for obtaining a redress of every
grievance, and for carrying into effect every just and salutary
measure (Madison, Federalist Papers)
Perspectives on who and
what conditioned change

Political domination-legitimation perspective
– for explanation and analysis, see Gurr, Jaggers and Moore (1991)

Wealth-accumulation, economic development perspective
- for explanation and analysis, see Kiser and Barzel (1991)
Political domination-legitimation

Displacement of Autocracy by Democracy

Military, political and related acts by those outside the ruling group, often forcing change
on the ruling group

The outsiders demanded rights, including in:

▪ consenting to taxation
▪ going to war
▪ holding the ruler to account politically
▪ selecting the ruler(s)
At various times, the outsiders might have included:
▪ Aristocrats
▪ Ecclesiastics
▪ Non-conformist men
▪ Poor fair-skinned men
▪ Property Owners
▪ Men of other skin colours ▪ Women ▪ Young men and women

Types of rule and rulership might have included:
▪ Aristocracy (+theocracy)
▪ Plutocracy (=gerontocracy)
▪ Democracy
The road from Runneymede,
birthplace of democracy
Wealth-accumulation, economic
development perspective

Kings and subsequent rulers (elites, ruling classes)
have always been intent on accumulating wealth

The more successful did this through bargaining with their subjects,
including aristocrats, bankers, townspeople, commoners, accountants,
the middle classes, etc.

Both parties to the bargains gained economically, politically and socially

Some bargains entailed extending the “selectorate” in return for consent
to be taxed

Change from Autocracy to Democracy was
incidental to the above and unintended
Residences of the
Queen of New Zealand
(some)
Democracy and Corpocracy
The 20th Century has been characterised by three
developments of great political importance:

the growth of democracy

the growth of corporate power, and

the growth of corporate propaganda as a means of
protecting corporate power against democracy
(Carey 1995, p. ix, cited in Gaffikin, 2008, p. 192)
Democracy and Aidarchy
The 20th Century has been characterised by three
developments of great political importance:

decolonisation and independent sovereignty, based on
“king and council” model

the growth of bilateral aid

the growth of aid-in-kind and accounting technology as
a means of governing and channelling aid
I-Kiribati Polities c.1800
Control as the key to civilisation
c. 1900 Colonial Government Structure
takes shape under RC Campbell
Resident Commissioner
Government agent
e.g. Geo. Murdoch
Native Governments
Men of Imperial Government –
resident commissioners, officials
1890s-1930s Focus on Civilisation without UK aid
Use existing “native” government bodies to govern within
an agency structure, with responsibility accounting

1894-1914 Island Governments as profit centres

Island Governments agents for Queen’s (King’s) Tax

Cleanliness and good order, regulation of daily life, village
consolidation and other public works via poll and land tax, collected in
copra and labour

By 1917, Revenues belong to Colony Government

Island Governments are revenue centres and discretionary expense
centres
Accounting and colonial governance
Regularity in the submission of all periodical returns to
headquarters is vital. These returns summarise
statistically the life and condition of the Colony . . . for
the preparation of the Colonial Annual Report and for the
information of the High Commissioner [in Suva] and
Secretary of State [in London] on special subjects.
The keystone of enduring organisation is an efficient system
of records. (p. 29)
Grimble and Clarke (1929)
Colony is on 180°
London is 0°
Think governance, control, and distance in days of sailing and steam ships
Lines of Accounting 1930s
HM’s Secretary of State for Colonies
WP High Commissioner
Resident Commissioner
Senior Officials
Junior
Officials
District Officer
Tia Moti (Magistrate/Mayor)
Native Government of tia moti and kaubure
Scribe
Chief of Kaubure
Kaubure (Councillor/Warden)
Interpreter
Staff of Restored Colony Government –
resident commissioners, officials, professional
and technical people
1940s-1970s
Focus on Restoration and Modernisation with some UK aid



Immediate post-war shortages hindered developments
Modernisation led by Bernacchi (1952-61) and Andersen (1962-69)
 Done “efficiently”, with UK grants and local revenue, and
bearing in mind end of phosphate revenues
 Centred on Tarawa to contain costs, maintain eyeball RC
control and meet I-Matang needs
 Set up reserve fund to save for end
 Government Trade Scheme becomes Wholesale Society
 GEIDA emerged by 1970
Republic Government inherits after 13 years of internal self-rule
Post Colonial Political Economy

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Single I-Kiribati Polity
Urban Tarawa and Outer Islands
Constitution, democratic republic
No taxation without representation
Government structure, systems of control, and
employment
Taxation, RERF, no phosphate but plenty of tuna
Boboti and Fledgling Government Businesses
Aid in kind, advice, guidance, assessment
Fishing Fleet Companies
Staff of Aid Donors, Project Staff and
Consultants
1980s-2000s Focus on Modernisation and Millennium Goals

Republic discovered by donors and NGOs

Aid-in-kind accepted, so increasing size and scope of
government

Local windfall revenues keep pace with growth in recurrent
spending

Accounting used to plan and implement projects; and to
report to Canberra, Wellington, Brussels, Tokyo, Taiwan, etc.

More infrastructure, public services and people on Tarawa

Outer Islands lose much intellectual capacity
Staff of Postcolonial Agencies
– IMF, ADB, WB, OECD
1990s-2000s Focus on Neo-Liberalisation

Turning I-Kiribati into private, rational-economic individuals,
customers and clients

Structural adjustment policies
Privatisation
 Deregulation
 New public management, Business model
 Output budgeting
 Individualism and competition
 Monetary not fiscal policy weapons, end of “agricultural”
subsidies
 Lower taxes, lower public expenditure
Accounting used to plan and implement projects; and to report to
Manila, Washington, etc.


Where’s the paper?
This presentation uses materials written up in:

Dixon, K., & Gaffikin, M. (2011). Accounting Practices as Social
Technologies of Colonialistic Outreach from London, Washington,
&c.. Unpublished manuscript.
and

Dixon, K. (2012) Functions of accounting, types of rulership (archies) and forms of rule (-[o]cracies). Newcastle, Northumbria:
13th World Congress of Accounting Historians, 17-19 July 2012.
Contact: Keith.Dixon@canterbury.ac.nz
Opening movie clip: http://www.youtube.com/watch?v=WMuXtQ7UYOM