Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Connectivity Asian and African countries In Developing Public Sector Accounting Reform Prof. Indra Bastian, Ph.D, MBA, CA, CMA, Mediator ASIA - AFRICA ASIA • • • • • • 4.4 billion people (60% of the world population) Fastest growing economic region and the largest continental economy by GDP PPP in the world China and India are currently the first and third largest economies in the world GDP in the region will expand by 5.7% in 2016 Most Asian economies benefit from low international food and fuel prices The regional rate eased from 3.0% in 2014 to 2.2% in 2015 as global oil prices fell by 47% and average food prices by 15%. Regional inflation will revive to 2.5% in 2016 as domestic demand strengthens and rise further to 2.7% in 2017 as global commodity prices recover AFRICA • • • • • • • • one of the poorest continents in the world and the least technologically advanced and developmental point of view, however, it is considered as a mine of wealth, metal, and opportunities. African continent which its economy is growing at a rate of 5.8 percent per year have about 124 billion barrels of oil reserves / about 12 percent of the world's reserves natural gas is about 10 percent of total world reserves / about 500 trillion cubic meters It is producing about 90 percent of the platinum in the world, 40 percent of diamond production, 27 percent of the total amount of cobalt and 9 percent of total production of iron around the world. It holds 50 percent of gold reserves, and 30 percent of uranium which has an important role in the nuclear industries Agriculture - about 20-60 percent of the national product gross of each country one of the largest sources of agricultural products such as coffee, cotton, and cocoa characterized by a lot of forests that produce large quantities of timber; in addition to fisheries, which helps to provide incomes to about 10 million Africans, since the value of the fish that are exported is US $ 2.7 billion Tokyo International Conference on the African Development (TICAD) (1993) • This conference aims to increase government development aid, and encourage foreign direct investment through enhancing the importance of exchanges between Africa and the developed countries. • It stresses the need to continue the cooperation between Asia and Africa, especially in the sectors of trade. It has been held six times till now. The previous fives were in Japan but the last one held in Nairobi. Forum on China-Africa Cooperation (FOCAC) (2002) • China has adopted to enter the continent with mutual interest, respect, and equality without interfering in the affairs of others, with the adoption of different logic from Western financial policy in dealing with African. • According to FOCAC report, China has established 3,300 km of roads, 30 hospitals, 50 schools, 100 power stations in more than 40 African countries. Asian-African Business Summit (AABS) 2015 • This summit aimed to realize the economic development between the two continent, which was mutually beneficial and had to be reinforced through trade and investment cooperation. • In this summit, numerous business and world leaders brought some issues in trade, investment, infrastructure, maritime and agribusiness. Development and improvement about the economic wonders of the Asian and African, the potential of business relationships between the countries of these two world's promising powerhouses as well as encouraging the trade volume were on the table of discussing. More African-Asian forums to discuss any future opportunities • In the recent Asian-African Business Summit (AABS) 2015 which was held in Jakarta, the businessmen from both continents have agreed to form Asian-African Business Council (AABC). • The AABC secretariat will be in Jakarta, and its member will have a yearly meeting to reach a concrete economic cooperation between Asian and African countries. Exchange the experience of both Asian and African countries in the term of public sector reform in order to have fruitful results • In the last Forum on China-Africa Cooperation (FOCAC) which was in Johannesburg 2015, Chinese and African leaders agreed to raise the new strategic relationship to a comprehensive strategic partnership of cooperation relations between China and Africa, in order to achieve significant progress in improving the status of these relationships, and helping to expand cooperation in broader and more areas, and emphasizes that this summit distinctive landmark in the history of cooperation between the parties • China is the largest trading partner of Africa for six consecutive years. Africa has become the fourth largest destination for Chinese investment. Bilateral annual trade turnover also rose in 2014, twenty-two times, compared to what it was in 2000, and increased the volume of mutual investments sixty times in the same period, exceeding the annual growth rate is 30%. Study of other countries trading cooperation in Africa such as the USA • The African-American Summit (AAS) in Washington, subtitled "Partnership for Increased Financial and Technical Investment in Africa" comes to consecrate the US strategy toward Africa since the end of the nineties of the twentieth century • No one could ignore the accelerated development in Africa the last decades. Despite of this fact many African countries still below the poverty line. In many points of view, the reason is the corruption of the public system in those countries. Besides, most of the powers focus on their benefits and they seek for investment facilities to run their projects despite the public interest of the continent. Creating a strategic, cooperative, as well as comprehensive relationship • To make this point clear, most of the powers deal with the continent as divided units. They don’t make agreements with the continent as a whole unit which will be safer for the economic wheel to run successfully. That individual strategy makes the risk of any investment higher because the country that invest could easily withdrawal its offer and leave the host country in Africa powerless. • On the other side, if they deal with Africa as a one unit, the risk will be less while the benefit will be comprehensive and all countries will get an equal share of improvement. Investments should be unconditional, far away from any political logic • This point is beyond the success that Asian achieve in Africa despite the large number of its competitor. Africa was under the colonization for a long time, and that has a bad impact on its countries. They don’t accept any economic and trade investments which cover with political tendency. Unconditional offers of any investment will make the country, especially the poor one trust the other party so a solid partnership could be. Confirming the language of mutual interest based on respect and equality • No one ignores that despite the enormous economic growth in the continent, the quality of investments in it still unfair. Africa is a mine of wealth and opportunities, but unfortunately, this wealth is exploited unfairly. Most of the exports from Africa is raw material. Offering facilitated loans • Many African poor countries have the natural sources, but they don’t have the financial resources to make the projects. Money is the important pier in any development process. Offering facilitated loans will be so helpful in order to have a win-win partnership that could break the difficulties that these countries are facing Promoting a public sector accounting for accountability and maintaining trust in cooperation • Reforms in the public sector accounting held on the stages of planning, budgeting, realization of the program, reporting to accountability. In this reform is important to generate accurate reports. The cooperation occurs on the existence of a trust and an accountable report will create confidence in the cooperation that will be executed. Financial statistics can control the various economic and trade activities Conclusion • Investment plays a big role in the economic and social development, security and stability. It contributes to the production of service facilities, projects, and other capital formations. • The wise investment policies and fair strategic partnerships that the relationship between Asia and Africa is characterized by make successful connection between them. The volume of trade and investment between the two continents is so remarkable. It really contributes in the developing revolution in both.