YouTube clips

1. YouTube clips http://www.youtube.com/watch?v=WMuXtQ7UYOM

2. Functions of accounting in the rulership and rule transplanted from the Atlantic to the Pacific Keith and Hegnes Dixon Te WhareWānanga o Waitahā

3. Where are we? – the Pacific

4. Whalers, copra traders, planters, phoshateers, foresters and farmers

5. Origins of Accounting I-Matanglands Plus Accounting Technology Kiribati andAotearoa New Zealand Were there any accountings in Kiribati and Aotearoa before I-Matang arrived?

6. Rule and Rulership Today Government of New Zealand Budget 2012 Kiribati Government 2012 Budget

7. Present-day “Pacific” Institutions – Executive and Legislature Head of State House of Representatives MwaneabaniMaungatabu

8. New Zealand Governance Structure Treasury, 1989

9. Kiribati Governance Structure Secretaries - Ministers Citizens of the Republic Ministries Mwaneaba niMaungatabu Beretitenti & Kabinet

10. Kiribati Constitutional Structure with Accounting emphasised

11. World Governance Bodies United Nations and its various offshoots International Monetary Fund OECD USA Federal Government Agencies World Bank G8 European Union Agencies Commonwealth Various World Religions Peoples Republic of China Agencies Various Transnational Corporations Various Aid Organisations

12. What is Accounting Technology? • Bookkeeping, financial accounting and reporting, management accounting, information systems, auditing, public finance, taxation, organisational finance • Numerical, monetarized calculation techniques and related practices that mediate relations between individuals, groups, and institutions, including accountability relationships that result from social relations • Plays distributive and ideological roles, includes incentive schemes and financing relations, and conveys knowledge over some distance • Mix of changing knowledge and skills, practices and theories, applied by and to people in various organisations and society

13. Accounting and related practices within the Executive • Review of past & present; contemplating & forecasting future • Setting Priorities • Estimating • Budgeting • Issuing Warrants to officials to collect revenues and spend appropriations • Transacting and functioning within the warrants issued • Bookkeeping • To legislature - oral accounts, answering questions, engaging in debates • Publishing reports before, during and after transactions and events • Having audits done of their financial statements • Having audits done of their statements about service performance

14. Realm of New Zealand Public Finance Act 1989 Section 4 Expenses or capital expenditure must not be incurred unless in accordance with appropriation or statutory authority (1) The Crown or an Office of Parliament must not incur expenses or capital expenditure, except as expressly authorised by an appropriation, or other authority, by or under an Act.

15. Realm of New Zealand Constitution Act 1986 Parliament and Public Finance Section 21 Bills appropriating public money — The House of Representatives shall not pass any Bill providing for the appropriation of public money or for the imposition of any charge upon the public revenue unless the making of that appropriation or the imposition of that charge has been recommended to the House of Representatives by the Crown. Section 22 Parliamentary control of public finance — It shall not be lawful for the Crown, except by or under an Act of Parliament,— (a) To levy a tax; or (b) To borrow money or to receive money borrowed from any person; or. (c) To spend any public money.

16. Constitution of Kiribati 1979 CHAPTER VIII: FINANCE Taxation 106. No taxation shall be imposed or altered except by or under law. Consolidated Fund 107. (1) There shall be in and for Kiribati a Consolidated Fund into which . . . shall be paid all revenues of the Government. Withdrawal of money from the Consolidated Fund 108. (1) No money shall be issued from the Consolidated Fund except upon the authority of a warrant under the hand of the Minister of Finance. (2) No warrant shall be issued by the Minister of Finance for the purpose of meeting any expenditure unless- (a) the expenditure has been authorised by an Appropriation Act; or (b) the expenditure has been authorisedappropos this Constitution: or (c) it is statutory expenditure.

17. Potted History of “British-settler” New Zealand Institutions • De facto unicameral parliamentary democracy elected under MMP • Colony superseded by Dominion and then by Realm • Establishment of single, bicameral Parliament for whole NZ Colony • Establishment of settler Provincial Governments in each province • Annexation of New Zealand by Queen Victoria of the UKGBI • Bill of Rights 1688 under King William III and Queen Mary II • ConfirmatioCartarum 1297 (referred to as Magna Carta) under King Edward Longshanks • Magna Carta 1215 under King Jean Sand Terre (John Lackland) • Norman Conquest of England under Duc Guillaume (William) of Normandie • Post-Roman Anglicisation of southern Britain

18. Potted History of Institutions which I-Kiribati presently occupy • Executive presidency and unicameral parliamentary democracyelected under FPP • Internal Self-Rule Bodies for whole of G(E)I Colony • Indirect Rule by resident commissioner and district officers with island Native Governments • Annexation of Gilbert Islands by Queen Victoria, represented by resident commissioner • Western Pacific High Commission under Queen Victoria of UKGBI, represented by high commissioner, within the General Act of the Conference at Berlin of the Plenipotentiaries • Bill of Rights 1688 under King William III and Queen Mary II • ConfirmatioCartarum 1297 (referred to as Magna Carta) under King Edward Longshanks • Magna Carta 1215 under King Jean Sand Terre (John Lackland) • Norman Conquest of England under Duc Guillaume (William) of Normandie • Post-Roman Anglicisation of southern Britain

19. Institutions in “Atlantic” “democracies” Executive – directly elected or drawn from legislature, plus appointed officials Popularly-Elected Legislature (unicameral or bicameral)

20. More geography - the old Atlantic

21. Original “Norman” Model of Institutions King Dieu et mondroit Monarchy – Divine Right of the King or Queen to rule over his/her subjects Council For explanation and analysis of this basic model, see Congleton (2001)

22. “King and Council” Change Template(Congleton, 2001)

23. William (or Guillaume) I • Descended from Norse who colonised Normandy • Pressed claims to English throne after death of Edward the Confessor through military action c. 1065 • Known as “the Bastard”, but also “the Conqueror” • Absolute Rule by virtue of Divine Right backed by military and civil governmental apparatus of the feudal system • Commanded preparation of Domesday Book, making possible the levying of feudal dues

24. Magna Carta(13th Century) John Lacklandand Edward Longshanks 12. Nullum scutagium vel auxilium ponatur in regno nostro, nisi per commune consilium regni nostri, nisi ad corpus nostrum redimendum, et primogenitum filium nostrum militem faciendum, et ad filiam nostram primogenitam semel maritandam, et ad hec non fiat nisi racionabile auxilium; simili modo fiat de auxiliis de civitate Londoniarum. [Articles, c. 32.] . . . . 14. Et ad habendum commune consilium regni de auxilio assidendo aliter quam in tribus casibus predictis, vel de scutagio assidendo, summoneri faciemus archiepiscopos, episcopos, abbates, comites, et majores barones sigillatim per litteras nostras; et preterea faciemus summoneri in generali per vicecomites et ballivos nostros omnes illos qui de nobis tenent in capite ad certum diem, scilicet ad terminum quadraginta dierum ad minus, et ad certum locum; et in omnibus litteris illius summonicionis causam summonicionis exprimemus; et sic facta summonicione negocium ad diem assignatum procedat secundum consilium illorum qui presentes fuerint, quamvis non omnes summoniti venerint

25. Magna Carta(13th Century) Established that the king may not levy or collect any scutage, save with the consent of his royal council. Path from (Absolute) Monarchy to Aristocracy, and House of Lords Spiritual and Temporal Imperial enactments in force in New Zealand in 2009 NB the original Magna Carta was c. 1215 but the ConfirmatioCartarum 1297 is the one that has been passed down to England and its colonies and former colonies.

26. Bill of Rights 1688 The Heads of Declaration of Lords and Commons, recited. WHEREAS the late King James the Second by the assistance of diverse evillCouncellors Judges and Ministers imployed by him did endeavour to subvert and extirpate the Protestant religion and the lawes and liberties of this Kingdome. … Levying Money. By levying money for and to the use of the crown by pretence of prerogative for other time and in other manner then the same was granted by Parlyament. … utterly and directly contrary to the knownelawes and statutes and freedome of this Realme.

27. Bill of Rights 1688 The Subject's Rights. And thereupon the said Lords Spirituall and Temporall and Commons pursuant to their respective letters and elections being now assembled in a full and free representative of this nation takeing into their most serious consideration the best meanes for attaining the ends aforesaid doe in the first place (as their auncestors in like case have usually done) for the vindicating and asserting their auntient rights and liberties, declare … Levying money—That levying money for or to the use of the Crowne by pretence of prerogative without grant of Parlyament for longer time or in other manner then the same is or shall be granted is illegall. Path toward separation of the Monarch as a person from the office of Monarch, in the institution of The Crown

28. No taxation without representation (c. 1765) The House of Representatives cannot only refuse, but they alone can propose, the supplies requisite for the support of government. They, in a word, hold the purse that powerful instrument by which we behold, in the history of the British Constitution, an infant and humble representation of the people gradually enlarging the sphere of its activity and importance, and finally reducing, as far as it seems to have wished, all the overgrown prerogatives of the other branches of the government. This power over the purse may, in fact, be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure (Madison, Federalist Papers)

29. Perspectives on who and what conditioned change • Political domination-legitimation perspective – for explanation and analysis, see Gurr, Jaggers and Moore (1991) • Wealth-accumulation, economic development perspective - for explanation and analysis, see Kiser and Barzel (1991)

30. Political domination-legitimation • Displacement of Autocracy by Democracy • Military, political and related acts by those outside the ruling group, often forcing change on the ruling group • The outsiders demanded rights, including in: ▪ consenting to taxation ▪ going to war ▪ holding the ruler to account politically ▪ selecting the ruler(s) • At various times, the outsiders might have included: ▪ Aristocrats ▪ Ecclesiastics ▪ Property Owners ▪ Non-conformist men ▪ Poor fair-skinned men ▪ Men of other skin colours ▪ Women▪ Young men and women • Types of rule and rulership might have included: ▪ Aristocracy (+theocracy) ▪ Plutocracy (=gerontocracy) ▪ Democracy

31. The road from Runneymede, birthplace of democracy

32. Wealth-accumulation, economic development perspective • Kings and subsequent rulers (elites, ruling classes) have always been intent on accumulating wealth • The more successful did this through bargaining with their subjects, including aristocrats, bankers, townspeople, commoners, accountants, the middle classes, etc. • Both parties to the bargains gained economically, politically and socially • Some bargains entailed extending the “selectorate” in return for consent to be taxed • Change from Autocracy to Democracy wasincidental to the above and unintended

33. (some) Residences of the Queen of New Zealand

34. Democracy and Corpocracy The 20th Century has been characterised by three developments of great political importance: • the growth of democracy • the growth of corporate power, and • the growth of corporate propaganda as a means of protecting corporate power against democracy (Carey 1995, p. ix, cited in Gaffikin, 2008, p. 192)

35. Democracy and Aidarchy The 20th Century has been characterised by three developments of great political importance: • decolonisation and independent sovereignty, based on “king and council” model • the growth of bilateral aid • the growth of aid-in-kind and accounting technology as a means of governing and channelling aid

36. I-Kiribati Polities c.1800

37. Control as the key to civilisation c. 1900 Colonial Government Structure takes shape under RC Campbell

38. Men of Imperial Government – resident commissioners, officials 1890s-1930s Focus on Civilisation without UK aid Use existing “native” government bodies to govern within an agency structure, with responsibility accounting • 1894-1914 Island Governments as profit centres • Island Governments agents for Queen’s (King’s) Tax • Cleanliness and good order, regulation of daily life, village consolidation and other public works via poll and land tax, collected in copra and labour • By 1917, Revenues belong to Colony Government • Island Governments are revenue centres and discretionary expense centres

39. Accounting and colonial governance Regularity in the submission of all periodical returns to headquarters is vital. These returns summarise statistically the life and condition of the Colony . . . for the preparation of the Colonial Annual Report and for the information of the High Commissioner [in Suva] and Secretary of State [in London] on special subjects. The keystone of enduring organisation is an efficient system of records. (p. 29) Grimble and Clarke (1929) • Colony is on 180° London is 0° • Think governance, control, and distance in days of sailing and steam ships

40. Lines of Accounting 1930s

41. Staff of Restored Colony Government – resident commissioners, officials, professional and technical people 1940s-1970s Focus on Restoration and Modernisation with some UK aid • Immediate post-war shortages hindered developments • Modernisation led by Bernacchi (1952-61) and Andersen (1962-69) • Done “efficiently”, with UK grants and local revenue, and bearing in mind end of phosphate revenues • Centred on Tarawa to contain costs, maintain eyeball RC control and meet I-Matang needs • Set up reserve fund to save for end • Government Trade Scheme becomes Wholesale Society • GEIDA emerged by 1970 • Republic Government inherits after 13 years of internal self-rule

42. Post Colonial Political Economy • Single I-Kiribati Polity • Urban Tarawa and Outer Islands • Constitution, democratic republic • No taxation without representation • Government structure, systems of control, and employment • Taxation, RERF, no phosphate but plenty of tuna • Boboti and Fledgling Government Businesses • Aid in kind, advice, guidance, assessment

43. Fishing Fleet Companies

44. Staff of Aid Donors, Project Staff and Consultants 1980s-2000s Focus on Modernisation and Millennium Goals • Republic discovered by donors and NGOs • Aid-in-kind accepted, so increasing size and scope of government • Local windfall revenues keep pace with growth in recurrent spending • Accounting used to plan and implement projects; and to report to Canberra, Wellington, Brussels, Tokyo, Taiwan, etc. • More infrastructure, public services and people on Tarawa • Outer Islands lose much intellectual capacity

45. Staff of Postcolonial Agencies – IMF, ADB, WB, OECD 1990s-2000s Focus on Neo-Liberalisation • Turning I-Kiribati into private, rational-economic individuals, customers and clients • Structural adjustment policies • Privatisation • Deregulation • New public management, Business model • Output budgeting • Individualism and competition • Monetary not fiscal policy weapons, end of “agricultural” subsidies • Lower taxes, lower public expenditure • Accounting used to plan and implement projects; and to report to Manila, Washington, etc.

46. Where’s the paper? This presentation uses materials written up in: • Dixon, K., & Gaffikin, M. (2011). Accounting Practices as Social Technologies of Colonialistic Outreach from London, Washington, &c.. Unpublished manuscript. and • Dixon, K. (2012) Functions of accounting, types of rulership (-archies) and forms of rule (-[o]cracies). Newcastle, Northumbria: 13th World Congress of Accounting Historians, 17-19 July 2012. Contact: Keith.Dixon@canterbury.ac.nz Opening movie clip: http://www.youtube.com/watch?v=WMuXtQ7UYOM