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accounting

Sometimes overlooked, but essential - like good plumbing: Why accounting matters for development

Ed Olowo-Okere's picture



A few weeks ago, The Economist published an article on economic governance that discussed the importance of public sector accounting. It recognized the importance of maintaining existing public-sector assets and investment in new ones. These assets, according to an IMF study, account for a significant portion of GDP. But, the article asserts, filling potholes and repairing bridges are not as politically appealing as flashy new infrastructure, and few economies engage in robust public-sector accounting that demonstrates the net worth of these assets.

Maybe if governments and citizens understood the value of their public assets, they’d be inclined to invest in their maintenance – avoiding waste and even catastrophic accidents when poor infrastructure fails?

Latin America: Is better technical and technological higher education the answer?

Diego Angel-Urdinola's picture
 
A new World Bank study finds that some Chilean technicians with a two-year degree have education returns that are only slightly lower than those of professionals. (Photo: Dominic Chavez/World Bank)



Two years ago, 23-year-old Pedro Flores became a technician specializing in renewable energy—all thanks to a degree from a technical institute in Maule, located in one of Chile’s poorest regions. After completing his degree in just two years, Flores became the only person in his family to obtain an advanced degree. Today, he lives in Santiago and works for a private solar energy multinational corporation, where he earns a competitive salary that is only slightly below the average for entry-level professionals in his field, most of whom spent over five years in university.

Good Lord! Are we stuck in time?

Kerry Natelege Crawford's picture
Photo by Chico Ferreira, available under a Creative Commons license (CC BY 2.0).
(Photo by Chico Ferreira, available under a Creative Commons license - CC-BY-2.0)