Globalization: What I Wrote in 1994—and What 32 Years Have Taught Me

In August 1994, while serving as Chairman of the Committee on Publications and Editor of the Accountants' Journal of the Philippine Institute of Certified Public Accountants (PICPA), I wrote an editorial titled “Globalization Means a Greater Challenge and More Hard Work for Accountants.”

At the time, international trade was expanding, and the accounting profession was beginning to face greater competition beyond national borders.

While greater international competition brought new opportunities, I also feared many of us might not be adequately prepared.

I wondered whether Filipino accountants were prepared for the competition ahead. Could we hold our own against foreign accounting firms entering the Philippine market? And would Filipino accountants be given the same opportunities to practice in other countries?

These concerns prompted me to write the editorial.

Thirty-two years later, I am revisiting those questions. Since 1994, much has changed, and globalization has affected far more than the accounting profession.

It has reshaped international trade, employment, technology, business operations, and the economic opportunities available to people worldwide.

Looking back, I can see both the progress globalization has brought and the difficulties it has created. That balance sits at the center of my thinking about what globalization has meant over time.

The Changes We Anticipated—and Those We Did Not

In 1994, the General Agreement on Tariffs and Trade (GATT) was central to discussions about opening international markets.

Countries prepared for greater economic integration, and the accounting profession began to recognize that international competition would eventually affect professional services.

The World Trade Organization (WTO) was established the following year, in 1995, providing a broader framework for international trade, including trade in services.

For the accounting profession, international competition gradually became a reality.

Accounting and auditing standards have become more internationally aligned.

Advances in communication technology made it easier for businesses and accounting professionals to work across borders.

Today, accountants can access clients' financial records through cloud-based systems, prepare financial reports remotely, and provide services to businesses thousands of kilometers away.

The Philippines has developed a substantial business process outsourcing industry, creating employment opportunities for accountants and other professionals serving international clients.

Filipino accountants have also established careers in many countries, bringing their education, experience, and professional skills to international workplaces.

These developments have created opportunities that were much more difficult to access when I wrote the editorial, but they have also increased competition.

This is the wider examination I want to make: globalization has unlocked opportunities while making success harder to secure. At the same time, it has increased competition.

For example, an accounting firm in Canada may now hire accounting professionals overseas for bookkeeping, financial reporting, and other services.

At the same time, Canadian accountants must continually respond to new technology, changing regulations, and evolving client expectations.

Artificial intelligence is bringing another major change. Accounting software can now automate many routine tasks that previously required considerable time and manual work.

The profession is being challenged to develop stronger analytical, advisory, technological, and professional judgment skills.

My 1994 concern regarding continuing professional education remains relevant today. In fact, the pace of change has made lifelong learning even more important.

Globalization Has Created Opportunities and Economic Growth

Over the past three decades, globalization has helped expand international trade, investment, employment, and access to technology.

Many developing economies have benefited from foreign investment, manufacturing, exports, and international service industries.

Businesses gained access to larger markets and more sources of materials, equipment, and technology. Consumers benefited from a wider selection of products, often at more competitive prices.

For the Philippines, international employment and the growth of outsourcing industries have provided income and career opportunities for millions of workers and professionals.

Filipinos working overseas have supported their families, financed education, purchased homes, and helped sustain local economic activity through remittances.

I have seen how opportunities outside one's home country can improve a family's financial circumstances and open possibilities for the next generation.

Yet these benefits have come at a cost.

Many overseas workers have spent years separated from their spouses, children, and parents. Professionals left their home countries because they couldn't find suitable local employment and compensation.

For some families, economic progress has come at the cost of prolonged separation.

These experiences show that economic statistics alone cannot capture globalization's effects.

Why Have the Benefits Been Unequal?

Even in 1994, I worried that many capable accountants might struggle to compete internationally simply because they could not afford the additional training and professional development needed to keep up.

The same difficulty exists in many other industries.

Large corporations generally have greater access to capital, technology, skilled workers, and international markets.

They can invest in equipment, expand operations, and modify their business strategies when economic conditions change.

Small businesses regularly operate with limited resources. They may face rising costs, stronger competition from imported products, and difficulties obtaining affordable financing.

Workers also face different circumstances.

Those with specialized skills, education, and access to technology may find better-paying opportunities. Others may lose jobs as production moves overseas or automation replaces certain tasks.

Farmers and small producers may participate in international supply chains without receiving a fair share of the value their products create.

Even in economically advanced countries, many families continue to struggle with housing costs, inflation, job insecurity, and inadequate savings.

Globalization has driven major economic progress, but it has not been shared evenly.

This raises an important question: If globalization has helped create so much wealth, why do so many people still struggle to achieve basic financial security?

The answer involves more than international trade. Education, access to capital, government policies, infrastructure, labor conditions, and the distribution of economic opportunities all influence who benefits.

Globalization can expand opportunities, but people need the means to take advantage of them.

The Risks of a Linked World

Globalization has also made countries and firms increasingly dependent on one another.

For many years, international businesses concentrated on reducing production costs and raising efficiency.

Manufacturing moved to nations with lower labor and operating costs. Companies relied on suppliers located thousands of kilometers away.

This helped make many products more affordable.

The pandemic also exposed the weaknesses of global dependence.

Factory closures, shipping disruptions, and shortages impacted businesses and consumers worldwide.

Subsequent international disputes, trade restrictions, and economic uncertainty have added to these concerns.

A business may buy materials from another country because they are cheaper, only to face serious difficulties when deliveries are delayed or prices rise unexpectedly.

What happens when a business suddenly cannot get the supplies it needs, or when a family's income can no longer keep up with rising prices?

For small businesses, delayed deliveries and unexpected cost increases can quickly eat into profits and strain cash flow. Some may even struggle to stay open.

Families face similar pressures as the cost of food, fuel, housing, and other necessities continues to rise.

These experiences have shown me that keeping costs down is only part of sound financial planning. Businesses need dependable suppliers, sufficient working capital, and some preparation for unforeseen interruptions.

For families, savings and adequate financial protection can make a real difference when income stops, or unexpected expenses arise.

Having worked in both the Philippines and Canada, I have come to appreciate how much international opportunities can change people's lives.

I have also become more aware of the difficulties families and small business owners face as they try to make ends meet, build savings, and secure their future.

Rereading my 1994 editorial reminds me how important it is to keep growing and evolving. I still believe that today.

But after years of working in the Philippines and Canada, I have also come to appreciate how difficult it can be for people who lack the financial resources and opportunities to keep up.

My experience has also influenced how I approach my work as an accountant and financial professional. I want to do more than prepare financial reports and provide advice.

I hope to use my knowledge and experience to help individuals, families, and small business owners understand their financial situation, make better decisions, and build some financial security for the years ahead.

For me, globalization's real success should be reflected not only in growing economies and successful businesses, but also in the lives of ordinary people given a fair opportunity to prosper.

What Globalization Means for the Accounting Profession Today

In my 1994 editorial, I emphasized professional competence and continuing education.

I still believe these are essential.

However, my experience over the years has also changed how I view the role of accountants.

Accounting professionals must uphold technical competence, but businesses also need help understanding the financial consequences of economic change.

A company may report rising sales while cash flow declines. Another may earn a reasonable profit but struggle to meet loan payments, payroll, and tax obligations.

International competition, changing technology, exchange-rate movements, and rising operating costs can make these problems more difficult to manage.

Accountants can help businesses understand these pressures through dependable financial reporting, cash flow planning, cost analysis, tax planning, and business advisory services.

For small businesses, access to this kind of specialized counsel can be highly valuable.

The accounting profession can make a greater contribution by helping business owners understand their financial position, recognize potential risks, and make informed decisions.

After all these years, I have come to appreciate how much more is expected of accountants today. Our work goes beyond preparing financial reports and meeting tax obligations.

Businesses and families face increasingly complicated financial decisions, and I believe our knowledge and experience can help them understand their options, prepare for uncertainty, and decide with greater confidence.

The challenge today goes beyond keeping pace with international standards. It also involves making our professional knowledge more useful and accessible to the people who need it.

How Can Globalization Benefit More People?

After 32 years, this is the question I consider most important.

International trade and investment will continue to affect economic development. Technological advances will create new industries and transform existing ones.

But economic growth alone cannot guarantee better living conditions for everyone.

More people must have access to the education, training, financial resources, and technology needed to participate in a changing economy.

Small entrepreneurs need practical business support and reasonable access to financing. Workers displaced because of technological change need opportunities to acquire new skills.

Developing countries need to strengthen their own industries, create sustainable employment, and reduce excessive dependence on overseas employment.

Foreign investment can make a greater contribution when it develops local skills, supports domestic businesses, and provides fair employment opportunities.

Financial literacy is equally important.

Many people work hard throughout their lives but have limited knowledge of budgeting, saving, investing, managing debt, and protecting their families against financial risks.

Access to useful financial education can help households make better decisions and gradually improve their financial security.

As accountants and financial professionals, we have knowledge that can help individuals, families, and small businesses. Making that knowledge more accessible is one way we can contribute.

Governments, businesses, educational institutions, and professional organizations also have important responsibilities.

The challenge is to create conditions that let more people participate in economic progress, rather than letting opportunities remain concentrated among those who already have the resources to succeed.

Looking Back After 32 Years

When I wrote about globalization in 1994, I was primarily concerned about the future of Filipino accountants.

I wanted our profession to recognize the challenges ahead and prepare for greater international competition.

Looking back, I believe those concerns were justified.

The profession has changed considerably. Accountants now work in a more internationally connected environment, and technological developments continue to reshape the services they provide.

But my perspective has broadened.

Having worked in different professional and economic environments, I have seen how international opportunities can improve people's lives. I have also seen the difficulties families and small business owners face in trying to achieve economic security.

I have come to appreciate that economic progress means different things to different people.

For a large corporation, it may mean entering new markets and increasing profits.

For a small entrepreneur, it may mean earning enough to sustain a business and provide employment.

For a worker, it may mean finding a stable job with fair compensation.

For a family, it may mean affording a home, educating their children, building savings, and looking forward to a secure retirement.

These outcomes give economic development meaning.

The globalization I wrote about in 1994 has become an established part of our economic lives. Its opportunities are considerable, and so are its difficulties.

I would still encourage accountants and other professionals to keep learning, improve their skills, and prepare for change.

But after 32 years, I believe we must also pay greater attention to those who have benefited less from economic progress.

Globalization has brought the world's economies closer together. The challenge now is to ensure that more people have an equitable chance to share in the prosperity it creates.

To me, that is an important measure of its success.

Reference: Timonera, F. A. (August 1994). “Globalization Means a Greater Challenge and More Hard Work for Accountants.” Accountants' Journal, Vol. 44, No. 2. Philippine Institute of Certified Public Accountants (PICPA).

The author wrote the editorial while serving as Chairman of the PICPA Committee on Publications and Editor of the Accountants' Journal.