Accounting information systems in a centrally planned economy: the case of the general company for pipelines (GCP)

Citation

(2010), "Accounting information systems in a centrally planned economy: the case of the general company for pipelines (GCP)", International Journal of Accounting & Information Management, Vol. 18 No. 1. https://doi.org/10.1108/ijaim.2010.36618aad.009

Accounting information systems in a centrally planned economy: the case of the general company for pipelines (GCP)

Article Type: AMIS statement and abstracts From: International Journal of Accounting and Information Management, Volume 18, Issue 1

Abstract

The paper has a two-fold purpose. First, it highlights the importance of accounting information in the economic development of developing countries, with a particular focus on the nation of Libya. Second, using the case of Libya's general company for pipelines (GCP), it demonstrates that the use of accounting information to achieve economic development goals is determined to a large extent by the political/ideological setting in which it is generated.

The study is based on a literature review and archival research, reinforced by a qualitative case study comprised of interviews, attendance at meetings and a study of internal documents. A study of the GCP revealed that frequent politically driven changes in the structure and number of popular congresses and committees severely limited the use of accounting information, relegating it to a formal role. In consequence, accounting information had little effect on stimulating economic development in Libya.

This study focuses on one case study, which does limit its generalisability. However, it also suggests fruitful research areas in considering the historic factors which have determined accounting's role in developing and planned economies. By providing insights about social factors which have determined the use of accounting in a planned economy, this study has implications for similar economies as they move towards a more globalised mode of operations which enhance the role of accounting in meeting economic development needs. If developing countries are to harness the potential of accounting to aid in the achievement of their development plans, the social and political setting in which accounting has been conducted need to be understood.

Keywords Accounting information systems, Developing countries, Culture, Planned economy

Bubaker F. Shareia

Commerce Faculty of Garyounis University, Benghazi, Libya, and

Helen Irvine

School of Accountancy, Queensland University of Technology, Brisbane, Australia

Corresponding author

Bubaker F. Shareia can be contacted at: bubaker2001@yahoo.com