IFAC Urges G-20 Action on Growth: Good Regulation and Improved Public Sector Financial Management Critical
Oct 20, 2015 | New York, New York | English
The International Federation of Accountants® (IFAC®) has today submitted 12 recommendations for endorsement by the Group of Twenty (G-20), urging action on issues impacting the G-20 priorities of robust, inclusive growth.
“Quite a bit has been achieved through the G-20’s leadership under the substantial pressures of the global financial crisis—but now is no time for complacency,” said Fayezul Choudhury, IFAC’s Chief Executive Officer.
IFAC’s 12 recommendations focus on:
- Good governance and regaining trust in key public and private sector structures, frameworks, and organizational and regulatory arrangements;
- Globally consistent, good regulation, that enables, promotes, and does not hamper growth and good governance;
- Resolving poor financial management, transparency, and accountability that persists in many G-20 countries and beyond; and
- A transparent, fair, and effectual international taxation system, and the need for collaboration and inclusiveness in implementing reforms.
“We’re at a crucial juncture—growth continues to wane or completely elude economies around the world despite massive, unsustainable monetary stimulus since the global financial crisis. A complex, fragmented regulatory environment is emerging, and there is no clear sight of how this is impacting growth,” said Mr. Choudhury.
Approximately two-thirds of respondents to IFAC’s 2015 Global Regulatory Survey, a study of accounting, finance, and business professionals worldwide, said regulation is having a significant or very significant impact on their organizations’ opportunities to grow and innovate.
In addition to an urgent assessment of the evolving regulatory environment, IFAC’s recommendations include that the G-20 promote development and adoption of clear principles for high quality regulation, and that it issues a clear call for the adoption and implementation of international accounting and auditing standards.
“The public’s trust and confidence in government is at the heart of achieving robust, inclusive growth. Poor public sector financial management, accountability, and transparency remain significant problems in many countries—resolving this is long overdue,” said Mr. Choudhury.
IFAC recommends that the G-20 commission urgent and fundamental work toward changes needed in the public sector to protect the public and investors in government bonds, promote greater transparency and accountability, and actively encourage and facilitate accrual-based accounting by governments and public sector institutions.
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing over 2.8 million accountants in public practice, education, government service, industry, and commerce.