GENERATING ECONOMIC GROWTH AND STABILITY THROUGH THE
ACCOUNTING PROFESSION IN DEVELOPING NATIONS
Fermín del Valle, President
International Federation of Accountants
2006 World Congress of Accountants – Plenary Session
Istanbul, Turkey – November 14, 2006
Good morning, ladies and gentlemen. It is a privilege for me to be the chairman in this
first plenary session, at this magnificent congress on the accountancy profession. Here
with us this morning we have a panel of distinguished speakers, individuals who have
already demonstrated their commitment to the development and growth of societies and
economies around the world.
The diversity, authority and distinction of the panel members is a direct reflection of the
capabilities and the organizations that are needed to address some of the most crucial
global problems that nations face today. Here with us today, we’ll have the privilege to
hear Abdullatif Sener, Deputy Prime Minister of Turkey; K. Rahman Khan, Deputy Chair
of the Upper House of the Parliament of India; Wang Jun, Vice Minister of the Ministry
of Finance of China; and Jabulani Moleketi, Deputy Minister of Finance of South Africa.
The theme of this plenary session is “Generating economic growth and stability through
the accounting profession in developing nations.”
Each time we talk about “developing nations,” it is important to reflect upon what we
understand by “development.” And it is also important that while we do this, we think
concretely about the real people that live in those countries, and what “development”
means, or should mean, to them.
We live in a world of major and significant contrasts.
On the one hand, science and technology’s ongoing progress continues to multiply the
capacity to produce goods and services, to the point that today, we can potentially satisfy
the needs of almost double the world population. Rapid developments in science and
technology have also made it possible to significantly extend life expectancy, reduce
infant mortality and maternal deaths to minimum levels and provide widespread access to
education.
However, the facts show a strikingly different reality. Over 1 billion human beings live in
extreme poverty; they subsist on less than one dollar a day. Hunger and lack of proper
nutrition affects 800 million human beings. 11 million children die every year before they
reach the age of five and over 115 million kids do not have the possibility to go to school.
It is unacceptable that in a world with so many possibilities, there is still immense daily
suffering for so many human beings.
We tend to equate development to economic development. However, nowadays, it is
understood that measuring development only as growth in real output on a per capita
basis has clear deficiencies. We just have to think of examples such as armament
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production or production of resources that damage the ecosystem to recognize the
weakness of this kind of measurement.
While not denying the importance of raising output and per capita income, there should
be a broader and deeper aim for development.
Development should be seen as a process of not only economic growth, but also
intellectual maturity, social improvement and moral enrichment. Hence, it is necessary to
remove the barriers to each aspect of development in a human being: poverty, coercion,
lack of opportunities, deficient education, inadequate health care, systematic social
deprivation, injustice, prejudice and, last but not least, corruption. Corruption is
development’s worst enemy. A corrupted government or society restricts or suppresses
any form of freedom.
Amartya Sen, the distinguished economist and Nobel Prize winner, has explored the
relationship between freedom and development. He defines development in terms of
prosperity of human capabilities and freedoms, and explains that “freedom is both
constitutive of development and instrumental to it: instrumental freedoms include
political freedom, economic facilities, social opportunities, transparency and security,
which are all different but inter-connected.”
Economic growth and stability are, without a doubt, vital to the achievement of freedom
and meaningful development.
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As for the accountancy profession, it is recognized as contributing to every sector and
aspect of the economy. It is not possible to imagine economic activity without the
participation of a professional accountant. As management accountants, controllers,
business managers, business advisors, members of boards and audit committees or
auditors, we influence almost every aspect of the economic activities in the private and in
the public sector.
Therefore, our profession can, and should, have a relevant role in the development of the
societies in which it operates. This means we must have a role not only regarding
economic growth and stability, but also with respect to driving more integral
development, such as pertinence, credibility and transparency of public accounts, proper
implementation of social policies and a true and legitimate fight against corruption in
private business and in the public sector.
Now, our distinguished panel of speakers will present their perspectives of how our
profession can work together with governments and others in generating economic
development and growth. I would like to introduce to you our first speaker, Abdullatif
Sener, Deputy Prime Minister of Turkey.
(Additional speakers: K. Rahman Khan, Deputy Chair of the Upper House of the
Parliament of India; Wang Jun, Vice Minister of the Ministry of Finance of China; and
Jabulani Moleketi, Deputy Minister of Finance of South Africa.)
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Conclusion
I want to thank our four key speakers. It was a privilege having you here this morning,
sharing your points of view on this important topic. I greatly appreciate your participation
in this World Congress of Accountants.
It is always enriching, as well as inspirational, to listen to the words of government
leaders who work hard to achieve economic growth and stability in their countries.
The international community must ask itself what really matters for development, so that
good intentions and innovative ideas can be translated into real benefits for the
developing nations.
It is imperative to ensure that the right mechanisms are in place to make those benefits a
reality, to encourage countries to have the political will to achieve economic growth and
to help citizens develop the skills and the assets to participate in that economic growth.
This will help us to give our attention to what, perhaps, is most important today: moral
globalization. It is necessary to strive for social justice and to contribute to a world peace
and prosperity to the best of our abilities.
Thank you all for your attention. I hope what you have learned here this morning will
help you to carry out your role in developing your respective economies and societies.
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