Accountants in Politics: Strengthening Governance, Public Accountability

Public leadership in a constitutional democracy should draw upon the expertise and ethical standards of the broader society, not solely politicians. Accountants, in particular, have valuable insights to contribute because nearly every public endeavor eventually revolves around money, priorities, controls, and outcomes. Governments may announce capital projects or social protection programs, and the public must inquire about whether the projects were costed correctly, funds were appropriated appropriately, procurement was competitive, contracts adhered to specifications, and if improvements in people's lives were achieved.

These questions transcend mere bookkeeping; they are fundamental to political decisions, public trust, and the legitimacy of the state.

Accountants possess skills in areas such as budgets, revenue systems, risk management, internal controls, audit trails, financial reporting, and value for money. These competencies can enhance legislation, executive management, and the oversight of public institutions. However, possessing a professional accounting qualification does not automatically lead to influence in public decision-making. Accountants should seek opportunities to engage with the public, whether through political appointments or elective positions.

Public accountability and good governance are crucial for economic growth, although not the sole determinants. Governance refers to the manner in which public authority is exercised, encompassing the process of setting priorities, making decisions, allocating resources, supervising institutions, and evaluating results. Good governance is not determined by a government's popularity or number of policies announced but by the quality of institutions, consistency in applying the law, evidence-based decision-making, transparent communication, responsiveness to citizens, and effective response to corruption.

The core elements of good governance include the rule of law, participation, transparency, accountability, responsiveness, effectiveness, equity, and control of corruption. These elements interconnect and reinforce one another. A budget's credibility hinges on transparent procurement, an audit's value diminishes if its findings are disregarded, and a public project's success cannot be measured merely by resource allocation.

Governance extends beyond policy design and appropriation, encompassing procurement, implementation, audit, public explanation, and corrective action. It also includes the traditions and institutions through which authority is exercised in a country. Research supports the notion that inclusive and accountable institutions foster economic growth and broaden opportunities. However, when governance systems falter in fulfilling these functions, development outcomes remain unstable.

The Worldwide Governance Indicators (WGI), published in 1999, measure governance across six dimensions: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. Public authority should be subjected to practical questions to determine whether it is exercised responsibly and produces meaningful results: do capital projects align with public need and expected economic returns?

Are debt proceeds used for their intended purposes? Do ministries publish reliable implementation reports? Are procurement rules consistently applied? Are audit recommendations leading to recovery of public funds, institutional reform, or lawful sanctions? Can citizens comprehend government promises, expenditures, and outcomes? These inquiries help ascertain if public authority is being exercised responsibly and if government activities yield significant benefits.