July 15, 2024
Accounting: Why Today’s Top Nations Are Obligated to Aid Underdeveloped Countries

While the United States prides itself with its vast knowledge of accounting principles, standards, and rules, there are still many underdeveloped countries that struggle to even have a general accounting system. The impact of not having a well-defined accounting system for any country is detrimental and will crush a country’s economic growth. Through the efforts of world leaders, these weaker countries can rapidly improve their economies and in return potentially provide new trading contracts, alliances and spheres of influence. In today’s world it is imperative that the United States and other dominant, establish countries seize even bigger international roles in the education of accounting teachings in underdeveloped countries.

Third world countries or underdeveloped countries lack even our most common learning necessities such as the resources for books, teachers and schools. It is no wonder why there is a significant low of accountants and the only approach to quickly resolve this problem would be from receiving support from prosperous countries. In the book Accounting Education in the Third World, some of biggest weaknesses of accounting education and training consist of and not all: accounting is still taught as if it was technical skill instead of as an intellectual discipline, no clearing house for information and publications exists, and most governments take a limited interest in accounting training and upgrading (Lelievre). The list carries on, but the main idea here is that these underprivileged countries drastically need an increase in the number of professional certified countries accountants to have any sort of bright future in accounting for these countries.

Not only are conditions harsh, but powerful nations of today carry a duty to serve those who do not pick from the ripe tree and are instead on the lower side of the spectrum when it comes to economies. Accountants have five critical roles in developing countries which are: collecting accurate date, preparing and providing financial statements for investor, help to growth of foreign direct investment (FDI), collect useful and timeliness information and interpret accounting terms to allow business between two parties or more (Shahrabi). Accountants are sometimes looked as the brains of the business and with good reason. Companies success strongly comes from the accountants and it reflects on how well a company is doing. Countries that lack certified accountants also lack a high GDP and therefore are a deprived country or third world country. These countries will never get out their slumping economy unless the brains of the companies learn the teachings of accounting. With the help of world leaders, this can changed for the better and bring success for everyone.

It is clear that these underdeveloped countries have deprived learning conditions, but on the flip side there are many positives to grasp from this. This situation can be considered to be a win-win situation for the two types of countries working together. For starters, by helping less fortunate countries develop effective accounting and auditing practice, maintain a constant staff of professionals and improve on their training program for future students then they will finally have a solid foundation and understanding of financial management (Lelievre). Not only on a business perspective, but better education has led to supporting growth of civil society, democracy and political stability (Woldegiyorgis). By providing assistance, there is the increased probability of prospering off their success. Increase in trade is very likely because with better education and management results in better decision making, cutting cost and increasing output in any business. With success in trading business reflects with better deals to countries like the United States who are leaders in importing goods. Another potentially advantage for powerful countries is increasing national relationships. Countries not as far advanced will look up to those who provide support and will have a friendship to increase diplomatic trust towards future goals. At the end of the day, both countries walk away feeling great about what they accomplished together and that is all anyone could ask for.

To bring everything together, it is imperative that the countries who are established and have the resources to spend, should put their resources into teaching undeveloped countries how to do accounting correctly, provide an accounting future in the nation and provide a fundamental program to teach others the same practiced work. Undeveloped countries do not have anywhere close to the resources and if given with the proper guidance then it can lead to rapid success. Many nations have achieved greatness, but taking third world countries under their arm to teach them legitimate accounting principles might be the greatness achieve we have seen yet.