Days away from entering the New Year 2009, the world economy is still full of apprehensions and woes, and we take with us dreadful and frightening memories of the manner in which the world economy collapsed all of a sudden in the latter half of year 2008. At this juncture, I thought the time was ripe for me as a young and relatively inexperienced accountant to review the situation and think aloud about the changing role and new opportunities that await an accountant in the present situation, as I can see it.
Cost cutting has been the 'mantra' advocated for enduring this challenge that organizations across the world are facing. And when it comes to cost-cutting who other than an accountant is called into play to decipher means of moving to a 'lean and mean' setup. Although cost-reduction will help organization survive the immediate turbulence caused by the collapse of the global economy, I believe that in the long run there is much more for organizations to learn that merely being able to survive and come out alive. The global economy needs to change focus from 'rapid growth' to 'sustainable growth'. It is time to think of what have we achieved in the last two centuries after the industrial revolution and learn from our mistakes, if any.
Rapid industrialization and globalization of the economies has certainly resulted in intense competition, better quality and efficiency. But all this has come at the cost of a large divide between the haves and the have-nots, a polluted environment and inequitable distribution of wealth. And I believe this very factor (inequitable distribution of wealth) and related discontent is the very cause of anti-social activities across the globe. Certainly I am no advocate of socialism!! Competition must exist and companies should contend and battle with one another for resources, markets and profits. But that should certainly not result in unfair allocation of wealth, inflation and extreme poverty.
The despair and distress caused by the present situation should act as a lasting remainder for us to develop the courage of conviction to be ready to sacrifice 'rapid short-term growth' and focus on long-term sustainability as-well as elimination of poverty and related social evils. With this renewed focus, we would perhaps never have to experience situations similar to what exist today. An accountant has a critical role to play in this process of change and in taking organization through this slump prevailing at present. With this, I seek to halt temporarily & continue this blog next month and request your comments/criticisms on my thoughts and hope to engage myself in a constructive discussion over the next few months through this medium
At the same time, while we brood over the economic situation currently prevailing, let us remember this is festive season and a time to celebrate and forget our woes and worries. I take this opportunity to wish all the members, affiliates, students and staff of ACCA a Merry Christmas and a Happy 2009!!!
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