Globalization and its discontents

Prem Sikka

Accounting, Auditing & Accountability Journal, 2008, vol. 21, issue 3, 398-426

Abstract: Purpose - The purpose of this paper is to seek to illuminate some of the dynamics of globalization that enable capital to advance its interests. Design/methodology/approach - The paper uses theories of globalization focusing upon the “race‐to‐the‐bottom”. Such theories draw attention to the way major businesses are using their power to secure advantages, often by playing‐off one nation state against another. Increasingly, offshore financial centres (OFCs) are becoming key players in this race. The paper uses a case study relating to the enactment of limited liability partnership (LLP) in Jersey, a UK Crown Dependency. The legislation was financed and developed by the UK firms, Price Waterhouse and Ernst & Young in collaboration with a network of advisers. Findings - The paper sheds light on the resources deployed by major accountancy firms to secure conditions necessary for the smooth accumulation of private wealth and power. Accountancy firms used OFCs or microstates to reposition the state‐capital relationship in globalization and reconfigure the UK auditor liability laws. The paper also highlights the importance of the state to capital and globalization. Research limitations/implications - In common with major capitalist enterprises, accountancy firms rarely provide background material to explain how they advance their interests. Inevitably, this limits the analysis. Nevertheless, the case study shows some trajectories that have enabled accountancy firms to advance their economic interests. Practical implications - The paper shows that accountancy firms are able to use novel tactics to advance their interests and that national regulation cannot easily be understood without consideration of the wider international context. Originality/value - Accounting researchers have rarely focused upon the use of offshore financial centres by major accountancy firms to advance their interests. It also shows that the local and the global are intertwined.

Keywords: Globalization; Supply and demand; Accountancy; Auditors; Tax havens; Jersey (search for similar items in EconPapers)
Date: 2008
References: View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:aaajpp:v:21:y:2008:i:3:p:398-426

DOI: 10.1108/09513570810863987

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