global
ISSUE 11FLYINGCOLOURSCENTRAL AMERICA
POISED FOR
VIBRANT FUTURE

BACK IN THE GAMEFOOTBALL’S ROAD TO RECOVERYGETTING THERE

OVERHAUL FOR GLOBAL SUPPLY CHAIN

HOME, HOTDESK OR HYBRIDTHE FUTURE FOR POST-COVID WORK HABITS

The networkfor doingbusiness

2 UHY GLOBAL May 2021

WORD OF WELCOME

IN THIS ISSUE

3BEAUTIFUL GAME
Is football poised toreturn to normal?

4

16

NEW WORLD OF
AGILE BUSINESS
Changing habitsthat will outlast
the pandemic‘JUST IN TIME’ TO‘NOT ENOUGH’
Covid lessons for
global supply chain

19
8

BEATINGTHE ODDS
Strength in numbers
for Central America

12

GAME ON
Historic teamweathers storms

20

GLOBAL TRADE
RESET
Can the world
economy build
back better?

VOYAGE OFDISCOVERYProfile of Antonis
Kassapis

14

GLOBAL NEWS
Stories fromaround the world

15

INSPIRATION ANDINNOVATION
Staying competitive
under duress

23

SERVING CLIENTS,SERVINGCOMMUNITIES
Celebrating our
inspirational people

WORD OFWELCOME
Welcome to issue 11 of UHY
Global, our twice-yearly magazine
for international businesses. Thisis the second ‘lockdown’ issue,
meaning that at the current
time, the Covid-19 pandemic
is still throwing a dark shadow
across our world. A year on fromthe outbreak, travel and social
freedoms remain restricted inmany countries, industries andjobs continue to suffer, and somany people continue to lose
their lives. On behalf of UHY
International, I extend our sincere
sympathies to everyone blighted
by this dreadful disease.
While nothing is certain in theworld, I am taking heart fromthe huge progress being madeto develop, test, produce anddeliver the vaccines we desperatelyneed. A substantial proportion of
our most vulnerable populations
will be offered immunisation
as 2021 moves forward. I am
also profoundly hopeful thatthe amazing resilience we haveseen in all of our communities,
personal and professional, will
help return us to a more normallife – with some new perspectives.
Inevitably, many of our features inthis issue of UHY Global consider
the impacts of Covid-19 on a
range of economic and geopoliticalactivity. For businesses reliant
on international supply chains,
the pandemic has asked somevery tough questions of theirresilience. In our article: From‘just in time’ to ‘not enough’,
we look at how pre-pandemic
production and distribution
models fell short, and what lessons
have been learned, a year on.

One of the biggest symptoms
of managing the virus has beena new nationalism including
the closing of borders andcontrasting strategies to deal
with the threat. In our feature
Global Trade Reset, we examine
the perfect storm for business ofglobal disruption under Covid-19
with added Brexit, and a new
US administration keen to undomany of the policies developedby the previous administration.
I expect to see the resumptionof many cultural activities lostto us over the last 12 months.
When viral transmission falls, itwill be a joy to once again visit
the theatre or watch a game ofsoccer. Our regular All Around
The World page, opposite, kicks
off this edition of UHY Global,
with a look at how the ‘beautiful
game’ is already making a cautious
comeback. Also in this issue, fanscan read about KS Cracovia, asporting institution in Poland, anda client of our Polish member firm.
These are optimistic stories fora year that promises to put theworst behind us. I hope you enjoy
reading them. If you would liketo dig deeper and browse our
expanded digital edition of UHY
Global, you can find it online, here:
www.uhy.com/publications.
Dennis Petri
Chairman, UHY International

ALL AROUND THE WORLDUHY GLOBAL May 2021 3

WINNING BACKTHE CROWDS

COULD TWO MAJOR INTERNATIONAL FOOTBALL
TOURNAMENTS IN THE SUMMER OF 2021 SIGNALA RETURN TO BUSINESS AS NORMAL?

Will 2021 mark a return to normal for the
beautiful game? Two major international
competitions are scheduled to go ahead,delayed from 2020 because of the Covid
pandemic. Euro 2020 (as it is still called) is
being played across 12 European countries
this summer, culminating in the final at
Wembley Stadium in London. On the otherside of the Atlantic, the Copa America isalso underway in June and July 2021.
The arrival of effective vaccines has raised
hopes that the matches will take place instadiums teeming with cheering fans, but
UEFA – European football’s governing body– has made no secret of the fact that it isplanning for several different scenarios.

There is a feelgood

factor that raises
an area’s economy
when a footballteam is doing well.

As the pandemic swept across the worldin spring 2020, many professional clubs
were left with plummeting income and nochoice but to continue paying the wagesof players and staff while maintaining
stadiums and training facilities.
Since then, football has returned, firstbehind closed doors and more recently infront of limited numbers of fans in someregions. The situation is better than itwas, but unsustainable in the longer term.
Football clubs are grateful for the supportof business where they have it. MKS
Cracovia, a club in Poland’s top division
and a client of Polish member firm UHY
ECA Group, is owned by international
capital group and global softwaredeveloper Comarch S.A. (see client story,
page 19). The organisation’s other activities
offer some level of financial protection for
the team.
LONG-TERM CHALLENGES
In a report for the World Football Summit,
which focuses on the business side of thegame, industry experts suggested thatmany of the challenges created by thevirus will still be felt in 2024, as the sport
struggles with limited attendances, reduced
sponsorship and a fall in merchandisingand licensing revenues. Smaller clubs that
rely on nurturing young talent before
selling it to larger competitors may also
suffer from a decline in transfer fees.

iStock.com/Barcin

People want to be associated with success,whether they are college students or
potential investors into an area.”
Successful sports teams not only bring
direct wealth to a city or region, butalso contribute economically in termsof city visibility, tourism and investment.
That is even more true for host cities
of major international tournaments,
which are boosted by infrastructure
spending before an event, fan spending
during it, and an intense media focus on
local amenities, history and tourism.
HOPING FOR THE BEST
While football’s governing bodies are
keen to stage major tournaments in thesummer, doing so without spectators – orwith only a limited number – will be amajor blow for host cities. Elliott says thatis especially true when cities have invested
in infrastructure in the expectation ofrecouping the outlay from the economic
activity of thousands of visiting supporters.

Elliott Buss, a partner at UK member firm
UHY Hacker Young in Newport, Wales,
and head of UHY’s national sports group,says the wider economy of an area issignificantly affected when football fansgo missing. “It is the pubs and bars in city
centres and around the ground (whenthey are open), the caterers, the security
firms... all these rely on an influx offootball fans from the local area and also
away fans from other regions,” he says.

“These cities will have been spending in
expectation of full hotels, packed bars
and restaurants, as well as fan spendingin and around grounds,” he adds. “Thelack of fans won’t matter so much in
London or Rome, which will have spentvery little, if anything, on additional
infrastructure, but remember that cities
like Bucharest in Romania and Baku in
Azerbaijan are due to host matches too.”“There is a kind of feelgood factor thatraises an entire area’s economy when afootball team is doing well,” says Elliott.
“So when a team gets promoted to the
top tier, you see a boost in applications to
the local university from foreign students.

For the moment, the football industry
is hanging on and hoping for the best.
Everyone involved in the economics ofthe game is hoping that the rivers ofrevenue from modern top-level football
will soon flow freely once again. n

4 UHY GLOBAL May 2021

FROM ‘JUST IN
TIME’ TO ‘NOTENOUGH’
CORONAVIRUS AND GLOBAL SUPPLY CHAINSFEATURE – GLOBAL SUPPLY CHAINSUHY GLOBAL May 2021 5

At the start of the pandemic, manufacturers and retailers
struggled to source the parts and products they needed as
the global supply chain ground to a halt. A year later, what lessons
have been learned?

When coronavirus spread rapidly aroundthe world in the early months of 2020,
the effects on global supply chains wereimmediate and obvious. Health services
quickly ran short of personal protective
equipment (PPE). Supermarket shelves
emptied of staple foods such as riceand pasta as consumers rushed to stock
up on store cupboard essentials.

Around the world, businesses were hitfrom both sides. As markets shrunk,companies had to fight for every newpiece of business, only to see efforts
to fulfil hard-won orders hamstrungby malfunctioning supply chains.

While these shortages made headlines
around the world, behind the scenes
manufacturers faced their own supply
chain challenges. When China went
into lockdown early in the pandemic,
many businesses struggled to source
the equipment and components theyneeded. As the crisis spread acrossthe globe, supply chains crumbled.

The pandemic

Morito Saito, vice president and director at
UHY FAS Ltd, Japan, says that in the earlymonths of the pandemic procurement wasa major headache for small and mediumsized businesses in particular. “Thesebusinesses could not source the quantity ofparts they needed, and they did not know
when logistics would recover and parts
would be available again, causing great
uncertainty. In addition, they did not havethe diversified network that could step inand immediately arrange replacements.”
In Brazil, too, manufacturers suffered
as Chinese workshops shut up shop.
Carlos Bernardo Gonçalves, corporate
finance partner at UHY Bendoraytes &Cia – Auditores Independentes, Brazil,talks of a perfect storm created by ascarcity of supply and the exchange
rate depreciation of the Brazilian real
at a time of global uncertainty.
“We also had some cases of clients who
suffered from the lack of components
and raw materials, especially in areas
such as clothing and electronics
manufacturing, which had China as
their largest supplier,” he adds.
iStock.com/Kosal Hor

has provided an
opportunity toredefine best practicein warehousing

and logistics andcreate stronger
supply chainsthat are better

able to withstandglobal shocks.

BACK TO NORMAL?

The situation a year later is much
improved, at least on the supply side.
Despite many northern hemisphere
nations having endured a winter waveof Covid-19, PPE shortages are not apressing concern and supermarkets remain
well stocked. Manufacturers in many
countries might be struggling, but thatis more from a dearth of customers thana scarcity of parts and components.
So, is the supply chain crisis over? Is it backto ‘business as usual’ for manufacturers
and retailers who have in recent
years favoured lean and ‘just in time’
procurement policies? The pre-Covid supply
chain was focused on rapid delivery and6 UHY GLOBAL May 2021

reducing the costs involved in stockpilingparts and products, but priorities may beshifting. Many experts say it is time for are-evaluation of our reliance on the kind ofcomplex international supply chains thatstruggled in the face of a global crisis.
According to these voices, Covid should
act as a wakeup call for the global
procurement sector. They argue that the
pandemic has provided an opportunity
to redefine best practice in warehousing
and logistics and create stronger supply
chains that are better able to withstandglobal shocks. They argue that resilienceshould replace cost as the primary criteriaof a functioning procurement strategy.
That is partly because the Covid pandemic
is by no means over, and partly because
global supply chains were stretched tobreaking point even before Covid-19.
Global warming is leading to more of
the extreme weather events – floods,
fires, hurricanes – that make ‘just in time’delivery harder to guarantee. Then there
are geopolitical threats, most recently
highlighted by the US-China trade war.
Research completed before the pandemic
found that companies already expecteddisruption to production lines for one or
two months every three to four years.
As the researchers noted, “the fact isthat the world has more shocks.”
RISKY COST CUTTING

Modern supply chains were created forcost and efficiency, not for resilience.
But even stock markets may be starting
to re-evaluate the idea that the mostvaluable companies are those that are bestat cutting costs. Lutfey Siddiqi, a visiting
professor in practice at London School of
Economics’ foreign policy think tank LSE
IDEAS, believes that the ‘de-globalisation’associated with the pandemic “haschallenged the value of hyper-efficient,super-optimised supply chains... cost
cutting is no longer an unequivocal
indicator of returns; it may actually signal
increased risk and reduced resilience.”
In other words, lean and complex
supply chains may make companies lessattractive to investors in future, because
they are inherently vulnerable. But how
to make supply chains more resilient?
Using digital tools and AI to model theeffects of various shocks and diversify
supply accordingly is one potential
solution. Insisting that suppliers implement
disaster recovery planning is another.
One idea that has gained considerable
support since the start of the pandemic
is the ‘onshoring’ of supply chains,which simply means sourcing moreparts and materials closer to home.
This reduces the risks associated withshipping goods thousands of miles andgives national governments the power
to step in and support producers of vitalmaterials who may be struggling.
British economist and author Paul Ormerod
believes the pandemic has made the ideaof domestic procurement more attractive.
“The crisis has obviously led to geopoliticalconnections being reconsidered in a pretty
fundamental way,” he says. “The conceptof bringing manufacturing back (to the UK)

is underpinned by this as well as by
the fragility of links which emerged
during the crisis.”

Manufacturers

and retailers are
realising thatrelying on a single
supplier for avital component or
popular productrepresents a hugebusiness risk.

Is onshoring realistic? Many national
governments think revitalised local supply
chains can help post-Covid economic
recovery. The PPE crisis at the start of thepandemic highlighted the risks of relying
on distant producers for vital materials,
and at the same time showed that it waspossible to create new domestic supply
chains almost overnight. Alan Farrelly, UHY
Board member and managing directorof UHY Farrelly Dawe White Limited,
Ireland, says local production of PPE wasquickly accelerated as the country’s overreliance on China became clear. “The factthat Ireland needed to acquire 15 yearsof average annual supply from China

FEATURE – GLOBAL SUPPLY CHAINSUHY GLOBAL May 2021 7

iStock.com/JESP62

during the first half of 2020 showed theneed to become more self-sufficient,”
he says. “In the race for supply, quality
was compromised, and the fact thatalternatives have now been sourced more
locally could be the way of the future, for
PPE and other vital products or materials.
In a short space of time Ireland had tocreate a new industry, and that will allow
the country to become more self-sufficient
should the need arise in future.”
In the Netherlands, too, there are hints
that businesses in some sectors are trying
to source parts and components closer
to home. “I have heard from Dutch
companies in the high-end electronics
industry (dominated by low volume andhigh complexity) that are looking foropportunities to make supply chains more
resilient through more regional sourcing,”says Paul Mencke, partner at Govers
Accountants/Consultants, Netherlands.
In that case, ‘regional’ sourcing would
likely mean the EU, though Paul’s own
experience is instructive. The pandemic
struck just as the Eindhoven office
was having the glass roof in its atrium
replaced, forcing a long delay as the
Italian supplier stopped work for an
extended period of lockdown.
AN EVOLVING STORY

While shortening supply chains may
increase resilience to some extent, no
supply chain is invulnerable. There areother issues with local procurement.
Morito Saito says that, while Japanese
authorities promote domestic
procurement by subsidising the purchaseof new factories and equipment, in
reality local production will struggle tocompete with Chinese imports on price.
Nevertheless, there is evidence thatJapanese businesses are aware of theneed to diversify their supplier base.
“Some domestic manufacturers havebegun to move their supply chainsfrom China to Thailand, as well as
Vietnam and Indonesia, and are further
strengthening their local procurement
and production systems,” Morito says.
But he adds that many Southeast Asian
countries have some way to go before
they can match China’s advanced
manufacturing capabilities, and that
China will remain the preferred supplierof a wide range of industrial materials
and components in the short term.

Many national

governments think
revitalised local

supply chains canhelp post-Covid

economic recovery.

In Brazil, Carlos Bernardo Gonçalvesagrees that supply chain management ischanging thanks to the pandemic, but
through evolution rather than revolution.

Sectors that are now considered ofnational importance – the production ofbasic medical supplies being one – maybenefit from public investment and otherstimulus measures to encourage selfsufficiency. In other areas, “companies
will start to consider the risk of global
pandemics and other shocks in supply
chain decision-making, tending togeographically diversify suppliers even
if margins are reduced,” he says.
Carlos adds that, for business to
become more resilient in the longterm, investors and stock markets
will have to reward organisations forstrengthening supply chains without
punishing them for increased costs. Butchange is clearly needed, and the earlysigns are positive. Manufacturers andretailers are realising that relying on asingle supplier on the other side of theworld for a vital component or popular
product represents a huge business risk.
Supply chain shocks are likely to become
more common. One positive outcomeof Covid-19 would be the widespread
re-evaluation of what constitutes bestpractice in supply chain management. n
For more information about UHY’s
capabilities, email the UHY executive office,info@uhy.com or visit www.uhy.com

8 UHY GLOBAL May 2021

BEATING THE ODDSCENTRAL AMERICA LOOKS FORWARD TO A BRIGHTER FUTURE

FEATURE –- ???
BEATING THE ODDSUHY GLOBAL May 2021 9F

ew regions have struggled harder than Central America to forge
economic and political viability and unity in a globalising world.
How is a joined-up approach to trade benefiting traditional andmodern businesses – and how far will recent success in these areas
make sure they can bounce back from the challenges of Covid-19?

Like the earthquakes and volcanoes
which define the region’s geology,
the eight nations of Central America
define its future. Belize, Costa Rica,
Dominican Republic, El Salvador,
Guatemala, Honduras, Nicaragua andPanama are set to drive the region’s
growth and prosperity. They have fought
hard, first for their independence andlatterly for their reintegration into a
more cohesive whole. 2021 marks
30 years since the Organización de
Estados Centroamericanos (ODECA) set
a new treaty of cooperation in motion,
supported, since 1993, by the Central
American Integration System (SICA)
which is observed internationally by
eleven regional advisors, including the US
and Canada. SICA’s four main pillars of
support revolve around political, sociocultural, economical and sustainable
management of natural resources andtheir ongoing commitment has always
been to achieve ‘peace, freedom,democracy and development’.

challenges. Sustainable recovery andnew opportunities will only happen
with bold emergency measures andthese must work hand in hand witha longer-term vision. We are here to
support our clients to make these
new measures work for them.”“Everything we do collectively now could
affect our national development overthe next decade, and beyond,” he says.

Everything we docollectively now could
affect our national
development overthe next decade,and beyond.

STRONGER IN RECOVERY
Armed with support from SICA andother organisations, together withclear engagement from regional UHY
member firms, clients and governments
in individual jurisdictions, everyone isworking hard to adapt to global and intraregional opportunities as well as dealing
with difficult public health and politicalchallenges. The will to thrive as a nation
is beyond question – indeed, there’s ageneral optimism that the region will bestronger in recovery than ever before.

iStock.com/Mabelin Santos“According to Omar Pérez, managing
partner, UHY Auditores y Consultares
SA, in Honduras: “All our UHY member
firms across this region agree thata positive, far-reaching responseto the crisis must look further thanfirefighting the immediate post-Covid
impact with all its economic and healthForeign investment and technicalassistance are key to new economic
success. The US, currently Central
America’s most important trade andinvestment partner, must target
investments aimed at generating
new employment opportunities andsupporting sectors, essential for growth
and regional integration. As with othercountries hit by the pandemic, Central
America has experienced weakened
fiscal positions and strained publicresources. Multilateral developmentbanks and international financial
institutions must play a major role infinancing Central American economies.
POST-COVID PLAN
The region’s major income relies on
agricultural exports such as coffee,

10 UHY GLOBAL May 2021

iStock.com/Marco Vasquezbananas and pineapples. Tourism isalso fundamental to Central America’s
sustainability – and this has collapsed in
the wake of Covid’s travel restrictions.
The impact on both industries
has been devastating but UHY
member firms across the region are
positive about building back.

An economic

reactivation planneeds to create an

incentive for individual
jurisdictions to

attract nearshoringbusiness opportunities.

The Adrienne Arsht Latin American
Center (AALAC) points to strong regional
benefits, such as dedicated economic
zones and tax advantages – designed
to improve ease of doing business. The

opportunities are out there to trigger
success but now Central America
must find ways to capitalise on themby creating an economic reactivation
plan for a post Covid-19 world.
The AALAC identifies three key areasof opportunity, confirming the region’s
unique potential to be an integral partof a robust and sustainable recovery.
In short, these potential building
blocks for long-lasting change are
the demographic bonus of a large
working-age population, nearshoring ofmultinational firms to Central America
and a renewed appetite for regional
economic integration. AALAC delivers
constructive, results-oriented solutions to
inform how the public and private sectors
can advance hemispheric prosperity andposition the region as a core partnerin the transatlantic community.
The challenges are clear. An economic
reactivation plan needs to create an
incentive for individual jurisdictions
to attract nearshoring business
opportunities – and AALAC’s support
must be harnessed by both public andprivate sectors working together totrain and empower low-income youth.
There is also a role for the international

community in helping the region topromote growth and investment.
INVEST IN CHANGE
In recent years US companies havebeen looking to grow their nearshore
trade into Central America – attracted
by the region’s competitive wages,
growing young working populationand preferential trade access. The
understanding is that by diversifying
supply chains and relocating, US
businesses will be better protected against
future global disruptions. The advantages
for Central America if this happens,is that the region will be in a strong
position to become the first US choicefor nearshoring and foreign investment– both of which are critical for boosting
job creation and creating competitively
priced supply chain resilience.
Longstanding foreign investment
relies on newly revitalised cooperation
between leaders from the public andprivate sectors so that together they cancreate workable solutions to address theregion’s historic barriers to growth.
The region’s second-largest trading
partner is Central America itself.
Intraregional trade between Honduras,
El Salvador, Guatemala, Costa Rica andUHY GLOBAL May 2021 11

FEATURE– BEATING THE ODDS

Nicaragua accounts for 27% of totalexports and 13% of total imports – astatus quo that will continue to flourish
as each nation’s understanding of
the power of togetherness grows.
It is imperative that governments
seize Central America’s demographic
bonus of a thriving workforce andbuild initiatives that encourage young
people not to move away from home.

A priority forCentral American

nations is to achieve
structural change

AN INTEGRATION RESTART
Better understanding and expertisein business technology is central forachieving sustainable development – fulleconomic integration has stalled partly
because of longstanding technical andpractical hurdles. A sophisticated uptakeof technology across the nations willencourage growth and unity. Politicalleaders must put any tensions aside andprioritise an integration agenda withtechnology as its beating heart. This
will comprehensively boost advancesin the implementation in policy, fiscal
and monetary coordination, tax
harmonisation, the adoption of common
standards and financial sector integration.
If the countries of Central America
act as one now, they will takefor sustainable
development.

Central American nations must invest inpolicies, new sectors and industries thatwill reduce educational and economic
disparities, improve training for workin a changing economic landscape,create new jobs and attract more
women to the labour market. The InterAmerica Development Bank indicatesthat these measures could result in a
33% increase in GDP per capita.
An immediate priority for all Central
American nations is to achieve structuralchange for sustainable development.
Employment opportunities must be
protected and company closures avoided.
UHY member firms work closely withclients to strengthen the liquidity of theirbusinesses and to guide them towards
operating under a ‘new normal’.
“We are introducing new service lines
such as forensic auditing and payroll
administration and we are working
with associated consultants in somespecialised areas,” says Arabellis Calderón,
managing partner, UHY Calderon
Gonzalez & Asociados, Dominican
Republic. “All our staff understand theimportance of excellent service and weare learning to develop new options
and new thinking whenever we can.”iStock.com/Edfuentesg

their place as a market that offers
theeconomies of scale that willlead to new market opportunities,
enhanced regional competitiveness anddynamic job creation programmes.
“Our offer as UHY member firms inCentral America is to build our reputationon consistent excellence and responsive
advisors. Our ability to work across our
region’s national borders is unparalleledand one which we are very proud of,”says René Pérez, founding partner of UHY
Peréz & Co in Guatemala. “These are
unique times though and we will not rest
until we have done everything we can tosupport our clients through the pandemiccrisis and on to much better times.”n
For more information about UHY’s
capabilities, email the UHY executive
office, info@uhy.com, or visit
www.uhy.com.

12 UHY GLOBAL May 2021

iStock.com/Freeartist

VOYAGE OFDISCOVERY
A

n idyllic childhood shattered by war made Antonis Kassapis a
refugee. The experience gave him tenacity and adaptability,
even allowing him to flourish in a profession he vowed he would
never be part of.

“We have a saying in Cyprus –‘Whatever you hate and don’twant, you see it all over you’. This
happened with my career.” Despite
his admission that accountancy wasneither his first or even last choice of
career, there is no denying the successAntonis Kassapis has made of it.

Antonis later took a combined degree
in architecture and computer scienceand after graduating had the option
to continue in computers or study
to become an architect. “To study
I needed a job to support myself.
Cyprus was not yet an EU member
so I needed a work permit.”

Growing up in the village of Kormakitis
on the northern shore of Cyprus in
the 1950s, the director and managing
partner of UHY Antonis Kassapis
Limited had other dreams. “My father
was a teacher, we had plenty of books
to read and I imagined myself as
many things – a painter or sculptor,
singer, boxer, footballer, architect,civil engineer and more. The career
I stated categorically I would neverfollow was that of accountant!”

TAKING OPPORTUNITY

The childhood idyll ended dramatically in1974 when Antonis had to flee from theinvading Turkish army, leaving his parents
at home. “My village was the nearest
point to Turkey so we felt the urgency.
I ended up a refugee in the UK where
I had an older brother at Birmingham
University. Having just finished school,
I went to college to do A Levels.”

One profession for which it was easierto get a permit was accountancy. “I
got a job as a trainee accountant andqualified in 1984. After the trauma oflosing my home in Cyprus I felt settled
and was at last earning a salary.”
The accountancy profession was on
the rise in Cyprus, and Greek speaking
accountants were in demand. In
1984 Antonis was offered two jobs,
one managing a team working with
offshore companies. “I started my job
in Nicosia in March 1985 and stayed
six years. I was one of the first in
Cyprus to specialise in international
business and I found it fascinating.”
Opportunity came knocking when
Antonis was 35 and spurred a hugedecision – he was offered a lucrative rolewith a Middle East company. “I turned

The career I said

I would never follow
was accountancy!

it down. In my six years as manager ofthe offshore business team I had gained
specialist expertise and many contacts.
I decided to start my own firm.”
GOING IT ALONE
Antonis set up in a rented office insummer 1991 with a team of five. “Oneclient brought another and we becamea ‘one stop shop’ for international
businesses wishing to use Cyprus.
Besides accounting, tax and audit weoffered everything our international
clients needed for setting up in Cyprus.”
The UK was in recession when Antonis
left, but things were different in Cyprus.
“I saw companies with profits, prospects
and hope. With my firm I always had afeeling that this could not last for ever,but 20 years later we had 50 staff andmore work than we could handle. But
the economy started shaking in thesecond decade of the 21st century.”PERSONAL PROFILEUHY GLOBAL May 2021 13

Amid the Greek debt and large badloans the two largest local banks
collapsed. Unlike Greece there was nobail-out for Cyprus. “My country was
the first item in the international news
for months. Not in a good way.”

THE JOY OF FAMILY

We became aToday, the firm continues to flourish, andengages strongly with the UHY network
which they joined in 1992. “UHY has
been an important part of my careerand life. I have seen it grow from a small
friendly group to a global network, andattending meetings helped me think
about how to improve my firm. Over theyears UHY has referred some good clientsto us and helped some of mine to growinternationally. I enjoyed my relationshipwith UHY people I met over the years.

one stop shop

for international

businesses wishingto use Cyprus.

ADAPTING FOR SUCCESS
Confidence eventually returned, andtoday Cyprus has a thriving services
sector, strategically important at thecrossroads of Europe, north Africa andthe Middle East. “It has natural and legal
advantages which make it attractive
to international business and high net
worth individuals,” says Antonis.
Antonis’s business navigated thecrisis years well and he realised his
superpower was adaptability. “You haveto be able to change fast to cope withcircumstances and take opportunities.
My relationships with clients were vital.
As well as providing good service I was
friends with many and they referred
me to their associates. This was themain way my firm grew at that time.”

Antonis and his team

By 1993 Antonis had embarked onanother venture – a family. “I married
Rona, a lawyer, the following year we
had a son, Yiannis. Our second son,Marios, was born in 1995. We separated
in 2017 after our sons (pictured rightwith Antonis) had left to study in
London, where they now work.”

The Covid-19 pandemic proved achallenge and an opportunity for
Antonis’s business. “The UHY network
support has been invaluable. There
have been many positives amid thegloom – Covid forced us to strengthen
our IT systems and online working
skills. Lockdown gave us space to do
things we never had time for previously.
Again, it’s adaptability that counts.”
Among other priorities Antonis isfocusing on succession planning which
he hopes will enable the firm to continuesmoothly after him. “I’m looking forward
to an active retirement, doing new things
and relaxing with friends and family.”

Lockdown gave ourfirm space to do

things we never hadtime for previously.”

MR BEAN AND LIVERPOOL
That may involve his favourite pastimes –reading, his allotment and travel.
“At 40, I took up skiing and speedboat,
which I found exciting. I love films andTV, particularly crazy comedies like
Mr Bean, Monty Python and Borat.”
His other great love is football –he and his sons support ‘the bestclub in the world’, Liverpool FC.
“We are happy when they win andmiserable when they lose!”
Asked about his inspirations in life
Antonis does not hesitate. “My parents
gave me the desire to succeed in afair and workmanlike way and are
my inspiration. My father Elias diedin 2020 and is buried in his beloved
Kormakitis where my mum Ioanna
still lives. Finding myself a refugee
from Cyprus in England, I had to solve
problems for myself as I had learned
to. My 40-year career has brought me
personal satisfaction, financial comfort
and skills to cope with life situations.
Despite its reputation, accountancy
has never been boring for me.”nTo find out more about UHY
Antonis Kassapis Ltd visit
www.uhy.com.cy or emailantonis.kassapis@cosmoserve.com

14 UHY GLOBAL May 2021

GLOBAL NEWSNEW LEADER FOR WORLD TRADE BODY
Economist and international development
expert Dr Ngozi Okonjo-Iweala hastaken office as the first female andfirst African Director General of theWorld Trade Organization (WTO).
Dr Okonjo-Iweala twice served as
Nigeria’s Finance Minister and was
responsible for reforms enhancing thetransparency of government accounts
and strengthening institutions against
corruption. She also had a 25-year
career with the World Bank, where
she rose to become managing director
from 2007-2011 and spearheaded
initiatives to assist low-income countries,

ARM’S LENGTHGUIDANCE
The Organisation for Economic Cooperation
and Development (OECD) has publishedguidance to help address practicalchallenges relating to transfer pricing rules
raised by the coronavirus pandemic.
Developed and approved by the 137
members of the Inclusive Framework on
Base Erosion and Profit Shifting (BEPS), theguidance seeks to provide clarity on applying
the arm’s length principle (ALP) during
periods impacted by Covid-19. Four key
areas have been identified where additional
limitations and practical challenges are mostsignificant: comparability analysis, losses
and the allocation of Covid-specific costs,
government assistance programmes, andadvanced pricing agreements (APAs).
For further information, visit www.
oecd.org/tax/transfer-pricing/guidanceon-the-transfer-pricing-implicationsof-the-covid-19-pandemic.htm

Speaking on her selection as Director
General, Dr Okonjo-Iweala highlighted
the importance of a collective responseto rebuilding the global economy. “Astrong WTO is vital if we are to recover
fully and rapidly from the devastation
wrought by the Covid-19 pandemic,”
she said. “Our organisation faces agreat many challenges but working
together we can collectively make the
WTO stronger, more agile and better
adapted to the realities of today.”

NEW ERA FOR UK AND EU
Following the endorsement of thelargest ever bilateral trade agreementon 30 December 2020, the UK has
completed its separation from theEuropean Union (EU), with newarrangements now in force for trade,travel, immigration and security.
Under the post-Brexit trade andcooperation treaty, UK businesses will
be able to trade products with the EU
on a tariff-free and quota-free basis,
although customs declarations, borderchecks and special licences for someproducts have been introduced. Nontariff barriers for medical, chemicaland other products have been
reduced, and UK and EU businesses
will have continued access to bid foreach other’s government procurement

contracts. EU stock trading in the
UK has ceased and moved to within
the single market. A memorandumof understanding around theregulation of financial markets is
expected soon and discussions
are ongoing. The treaty will be
subject to review every five years.

iStock.com/Charlie AJA

AUDIT QUALITY UPDATEThe International Auditing andAssurance Standards Board (IAASB)
has issued revised standards aimed
at strengthening and modernisingaudit quality management.

Shutterstock.com/360b

alongside overseeing a USD 81 billion
operational portfolio in Africa, SouthAsia, Europe and Central Asia.

Recognising the need for proactive
and adaptable quality management,
the new standards introduce arisk-based approach focused onachieving quality objectives and theimpacts of technology, networks
and the use of external service

providers. They also look to increaseaudit firm leadership responsibilities
and accountability, increase focus
on flows of communication andstrengthen the monitoring of quality
management systems and theeffective remediation of deficiencies.
The standards are effective from15 December 2022, replacing
the current IAASB standards on
quality control and audit.

COGS AND WHEELSUHY GLOBAL May 2021 15

iStock.com/Fresh Splash

INSPIRATION ANDINNOVATIONH

ow does a global accountancy network staycompetitive under duress? The answers lie inknowledge share, relationships and communications.
While it is expected of most businesses tostay competitive and evolve to meet thechanging needs of their market, the global
pandemic is proving to be a disruptor of thehighest order, forcing leaders to re-evaluate
existing models and plan more carefully forthe future. From supply chain resilience toemployee wellbeing, company architectures
are being redefined at a rapid pace.
For global accountancy and consulting
networks like UHY, comprised ofindependent member firms, there are
additional challenges. Each member will
manage its own domestic and international
client base, meeting needs, ensuringcontinuity of service and identifying andimplementing necessary change. The
risks of insufficient change, not adapting
quickly enough or simply being unsure of
how to move forwards, are clear. Network
management must in these circumstances
fulfil its role of catalyst, facilitator andmotivator, on top of its quality control andmember support obligations – no small task.
WORKING TOGETHER
According to UHY International’s chief
executive officer Rhys Madoc, thenetwork’s longstanding culture of close
collaboration and relationship-building
between firms has been a key factor incoming through 2020 relatively unscathed.
“Working together has been a foundationstone of the way UHY operates, right fromthe network’s inception nearly 35 years
ago,” says Rhys. “It provides consistency,
quality and joined-up personal service tomultinational clients working with ourmembers in different countries. While we
see this in normal times as a competitive
strength, it has now proved to be a major
factor in surviving the pandemic.”Through regular video calls between the
UHY Board and member firms across theworld, and by taking its usual regional andglobal conferences online, the network
has been able to maintain the momentumof cooperation and communication
between UHY colleagues. While on-screen
relationship-building will never replace
face-to-face networking, Rhys recognisesthat there have been unforeseen benefits.
“Our online conferences had a wider
audience, with more participants working
at an operational level within their firms.
They have provided an additional value
to discussions and knowledge sharing,and further strengthened the practicalworking relationships between firms.”
AGILITY AND IMAGINATIONAs member firms shared their Covid-19
journeys throughout 2020, valuable insights
emerged. Not least, the importance of
maintaining proactive communications
with clients, providing trusted advice tohelp steer businesses through the maze ofgovernment support schemes – and withan eye to the future, helping clients toestablish resilient, more agile infrastructures.
Top of the list for Rhys has been the
speed at which member firms haveadapted to remote working.

“The rapid deployment of relevant
technologies to provide clients with
uninterrupted service, has been
impressive,” he says. “It feels like ourmembers have squeezed years of learning
into just a few months. By sharing
this on calls and through our regularcommunications, ideas, experience andrecommendations have effectively rolled
out through the network very quickly.”
PEOPLE FIRSTThe wellbeing of over 8,500 professionals
worldwide has also been a priority for firms,
and the network. To ensure support – bothtechnical and personal – is always available,
UHY member firms have been scrupulous
in assessing the new working environments
and meeting the needs of their people. With
such a changing mix of Covid restrictions
and guidelines across the 100 plus countries
in which UHY operates, a plethora ofmeasures and solutions has emerged.
Leadership, teamwork and personal
resilience were all issues studied anddebated during the Annual Meeting online
in 2020, and member firms have been quick
to share their concerns and find solutions
with their colleagues across the network.
“Keeping staff safe, effective and motivatedthrough lockdowns has been of paramountimportance for the UHY Board and themembership of this network,” says Rhys.
“Technology has played a massive part,the key enabler, but I have to credit theinnovation, imagination and endeavourof our colleagues around the world, tofind ways through. There has always
been an almost familial culture within
and between UHY member firms. The
pandemic has challenged people like neverbefore, but I am proud of the practicaland emotionally supportive responses I
have seen from our firms, which perfectly
exemplify this close-knit network.”
As 2021 moves forward with a Covidexperienced network of member firms,
and with mass vaccinations a reality,
recovery and growth beckons for UHY. n

16 UHY GLOBAL May 2021

PERSPECTIVESA NEW WORLD OF
AGILE BUSINESSSTICKING PLASTER SOLUTIONS ADOPTED IN 2020
ARE MORPHING INTO NEW WAYS OF WORKINGTHAT WILL OUTLAST THE PANDEMIC. UHY EXPERTSDISCUSS THE WAYS BUSINESS HAS BEEN CHANGEDFOREVER BY COVID-19.

iStock.com/Fresh SplashPERSPECTIVESUHY GLOBAL May 2021 17

I

n January the chief executive of Unilever told a conference
that a significant part of the firm’s 150,000-strong global
workforce would never go back to the office full time.

His words made headlines. Here wasfurther proof that the adoption of remote
work, an emergency measure when
Covid-19 swept across the world in 2020,
was no longer seen as a temporary fix.
Alan Jope’s comments showed that for
Unilever, there would be no going back.
Instead, the company would join a growing
list of businesses determined to offer a
hybrid working model (in which employees
split the working week between the officeand home) after the pandemic ends.
In that way – and in many others – thepandemic has changed business forgood. Emergency measures that wereadopted overnight when Covid firststruck are morphing into permanent
solutions that will outlive lockdowns andsocial distancing. The pandemic-fuelledtransformation of business goes beyond
remote working to include the reimagining
of office space, the accelerated adoptionof new technology and prioritisationof more secure supply chains.
The world is in the midst of perhaps thebiggest shake-up to business practicesince the invention of the internet.
UHY’s global network of member
firms is part of this change, working
with businesses on the ground.
REMOTE WORKING HERE TO STAY

According to some estimates, threeor four times as many people could
be working at home after the
pandemic than before it began.
But making remote work as productive
and collaborative as its office-based
counterpart can be a challenge. Adil
Buhariwalla, partner at UHY James
Chartered Accountants, UHY’s member
firm in UAE, says the supervision of
remote workers requires physicaldistance but ‘virtual closeness’. Thereis a fine balance to be maintained.
“Remote supervision of work is untrodden
ground for many organisations, andthreats arise from either too muchor too little of it,” Adil adds.

“If there is too much remotesupervision, employees feel distrusted,resulting in possible compromise on
work ethics. If it is too little, workand productivity could slacken.”
Still, remote work is likely to continue
for many employees as part of a hybrid
model, when they spend some of theworking week in the office and some athome. Employees want it – in a recent
UK survey, 73% of knowledge workers
said they favoured a hybrid arrangement
after the pandemic, meaning companies
that refuse to offer it could face a
recruitment and retention problem.

Remote supervision is
untrodden ground formany organisations.

DIGITAL TOOLS FOR REMOTE SUCCESSFor companies considering a moveto hybrid working, new digital toolsthat promote virtual communicationand collaboration are vital. This could
mean videoconferencing and filesharing software, teamwork tools, andcloud-based unified communications
systems that let employees makeprofessional calls from anywhere.
“You don’t necessarily need to spend
a ton of money; there are many costeffective solutions out there,” says Adil.
The worry, he adds, is “the digital highway
suddenly widening, exposing businesses
to a huge magnitude of potential threat
traffic, be it unintentional or malicious.”
Eran Amir, partner at UHY ShtainmetzAminoach & Co CPAs, Israel, says theuse of digital tools that give businesses
the ability to switch quickly to homeworking has become a key measureof business resilience, and that remote
working will make cybersecurity
even more of a challenge.

“It’s essential to make sure businessclients have secure remote accessto essential systems from any
internet connection including
encrypted connectivity to employees,
suppliers and invoices,” he says.
BIG CHANGE AHEAD

If remote and hybrid working models
do become the norm after Covid, theconsequences will be significant. Hybrid’s
appeal goes beyond its flexible working
benefits for staff. Businesses are eyeing
potential savings in equipment costs,
bills for utilities (power and lighting)and even reduced office space.
A well planned hybrid work programme
could mean companies having to physically
host less than 65% of their workforce
at any one time. That fact is leading to
the reimagining of offices as digitallyadvanced, fluid spaces for meetings,
hotdesking and team bonding, withmost of the day-to-day work carried out
elsewhere. Research by Cisco Systems
found that over half (53%) of larger
organisations plan to reduce the size of
their office space after the pandemic.
The result of this shift away fromlarge, centralised offices is potentiallytransformative. UHY firms around theworld have already seen clients reduce
office space in preparation for a postpandemic world. In addition, the flightfrom city centres could see an increased
requirement for co-working spaces in thesuburbs and small towns where manyof us live. Remote workers may replace
the social aspect of office life by renting
communal desk space closer to home.
The appeal of smaller offices awayfrom city centre locations is one Roman
Seredynski, managing partner at Polishmember firm UHY ECA Group, knows
well. Lockdown has shown that it ispossible to work efficiently remotely, andhas opened up the possibility of working
from smaller offices and premises awayfrom the expensive centres of major cities.
“Our own firm has set up an audit
subsidiary in a small town near Warsaw,”
Roman says. “It’s much cheaper andit’s a university town, so there isn’t a
problem finding talented people. It’s
one possible model for the future.”

18 UHY GLOBAL May 2021

COLLATERAL DAMAGE

Both the increase in remote workand the flight from city centres haveconsequences beyond office space andlocation. UHY’s professional advisors
predict that businesses relying on thedaily commute – food vendors neartrain stations, for example – may suffer,or they may decide to relocate intandem with the workers they serve.
Hospitality businesses that rely on
corporate bookings may also lose out
in the ‘new normal’. In some cases,
marketing efforts will need to target
remote working teams who will still cometogether regularly for team building days,social contact and creative workshops.
Roberto Macho, managing partner at
UHY Macho & Asociados, Argentina,
believes that some businesses, especiallyin badly hit sectors like tourism andhospitality, will have mothballed large
parts of their operations during Covid,
and that reshaping them for the postlockdown world might require “a pivot
through organic innovation and inorganic
growth. Some may be forced to abandon
the market in the longer term,” he says.
RETHINKING THE SUPPLY CHAIN

UHY experts agree that changes to supply
chain management may be one of thelasting hangovers of Covid. “Supply chain
disruption has clearly materialised with
Covid-19,” says Donna Frye, directorof transfer pricing, UHY Advisors Inc.,
Michigan, US. “Supply chain reorganisation
has been constant for many (during Covid)
and accounting firms like UHY have been
helping our clients manage the change.”

PERSPECTIVES

Donna adds that management ofmultinational entities (MNEs) are now
focused on developing greater supply
chain resilience for the months and years
ahead. “That might involve finding local
suppliers, redefining supplier relationships
and using technology to change the cost
structure where applicable,” she says.
Adil agrees, but adds that sourcing new
suppliers can prove tricky for many firms.
“Businesses have to forge partnerships
with new often, untried and untested
suppliers. This poses threats in terms of
reliability, quality, costs, and production
and distribution delays,” he says.

Lean and agile

businesses thatquickly adapt

to new businessrealities will thrive.

OPPORTUNITIES AS BUSINESS RESUMES

There is no doubt that the post-pandemic
era will be a challenging time for manybusinesses. But UHY advisors also predicta period ripe with opportunity. Lean
and agile businesses that quickly adapt
to new business realities will thrive.
Some economists are even predicting
a 21st century version of the ‘roaring
twenties’, a consumer-led spending
spree driven by a post-pandemic

determination to make up for lost time.
Entrepreneurial opportunities will be
unlocked and the widespread shift todigital platforms also offers possibilities
for tech-focused firms and niche retail.
Roberto says that entrepreneurs are alreadysensing this shift. “Some entrepreneurs
see opportunities to get into newmarkets now, and venture capitalists
are making money available. Risk takers
and adapters will be the winners.”
Agile businesses with flexible workforces,a ‘digital-first’ philosophy and low costs
will be in the best position to exploit thiswave of consumer spending. Eran believes
professional advisors can help businesses
remodel themselves for the post-Covid
landscape. Could workforces be leaner andmore agile, perhaps by merging roles or thegreater use of contractors and freelancers,
he asks? Businesses may require short-term
credit to increase stock during a period oflimited income, and UHY member firms
are on hand to help clients find the very
best sources of credit for their needs.
Roman also believes that a professional
services network like UHY can help
entrepreneurs grasp opportunities.
“Through an ‘ask the expert’ platform,
supported by the Polish Chamber ofCommerce, UHY ECA Group shared
information in the areas of labour
law, civil and commercial law, digitaltransformation, finance, company
liquidity and debt, bankruptcy,
restructuring and taxes,” he says.
With good advice and an agile mindset,
many companies will do well but forothers, the post-pandemic world will
present challenges, as measures adopted
during Covid become permanent.
UHY member can help businesses
navigate a new reality of hybrid work,
accelerated digital transformation anda fresh focus on secure supply. n
For more information about UHY’s
capabilities, email the UHY executive
office, info@uhy.com, or visit
www.uhy.com

iStock.com/Pekic

CLIENT STORYUHY GLOBAL May 2021 19

GAME ON

UHY’S POLISH MEMBER FIRM IS HELPINGA HISTORIC FOOTBALL CLUB WEATHERTHE COVID STORM AND FIND SUCCESS
Shutterstock.com/Marcin Kadziolka

Founded in 1906, MKS Cracovia is theoldest football team and active sports
club in Poland. Its volatile history includes
triumphs in the Polish top division (theEkstraklasa) at one end of the spectrum,
relegation and near bankruptcy at theother. Today, after years in lower leagues
the club is re-established in Poland’s
top flight, and last year competed in
the Europa League for the first timein decades. In 2020 Cracovia won the
Polish super cup for the first time. Off
the pitch Cracovia’s fortunes are also
on the rise – it is now a subsidiary of
Comarch S.A., the club’s Cracow-based
sponsor and global software businesslisted on the Warsaw Stock Exchange.
Football club finances are a complicatedbusiness, with income generated throughgate receipts, media earnings, sponsorship,club shop sales, hospitality franchises andplayer transfers. Income can rise and fallon an almost weekly basis. A poor runof form dampens matchday receipts andshop sales, and success has the opposite
effect. Outgoings are equally unstable.
Player wages usually make up the lion’sshare, and transfers can dramaticallyalter the short term financial picture.
STRONG PARTNERS
Comarch first acquired shares in Cracovia’s
holding company in 2003, and now holds
66.11% of Cracovia share capital. In 2019the club turned to Polish UHY member
firm UHY ECA Group to audit its financial
statements and licensee documentation,and to help ensure that the club’s

performance on the pitch would never
be undermined by financial issues off it.
For Comarch, UHY ECA Group’s reputationfor excellent service was well established.
“We already had positive opinions andcredentials around UHY ECA Groupand UHY is a well-known brand,” says
Konrad Taranski, CFO and vice presidentof the management board of Comarch
S.A. “We could draw on the experienceof earlier cooperation between UHY
ECA Group and other entities related
to Comarch, so we were happy to trust
the firm with the Cracovia account.”
For UHY ECA Group, Cracovia is alabour of love. “Cracovia is more thana football club, it is part of our footballhistory,” says Dominik Biel, partner at
UHY ECA. “It is the oldest Polish club,and the beloved club of Pope John Paul
II. Being an auditor of Cracovia is botha private and professional passion.”
Associate partner Patryk Steidten
agrees. “Football is my greatest hobby,
so the analysis of the business was
one of my favourite projects.”
CLINICAL FINISH
The trust between UHY ECA Group andComarch was reinforced by the smooth
handling of the first audit. UHY ECAGroup was contracted in 2019, andcompleted the audit during the first waveof Covid in 2020. Comarch was impressedby the firm’s commitment despite thechallenges presented by lockdown.

“We quickly agreed on the methodof cooperation with UHY ECA Groupand the first audits went smoothly,”says Konrad. “All deadlines were met
despite the occurrence of force majeureduring the audit period in the form of
the pandemic. We are satisfied with
the quality and timeliness of UHY ECAGroup’s services as well as with a fully
professional approach to cooperation.”
UHY ECA Group is now tasked withcompleting the next Cracovia audit, which
may be more complex still. The Polish
Ekstraklasa was one of the first leagues
to suspend matches due to the pandemicin March 2020. The league resumed inMay, with games played without fans
until the end of the competition in July.
So far, 2020/21 season matches havebeen played behind closed doors.
As well as shortfalls in ticket revenue,
the audit will take account of otherfinancial pressures caused by Covid,
with reductions in hospitality andmedia income. Cracovia will weather
the storm thanks to the support ofComarch, but for UHY ECA it will be a
football club audit unlike any other.
Happily, the firm has the complete
confidence of the club and its parent
company to perform to the highest
standards. Konrad says the cooperation
between Comarch and UHY ECAGroup, and the quality of the workso far has put the firm in a strong
position to be considered for further
contracts as the group expands. n

20 UHY GLOBAL May 2021

GLOBAL TRADE RESETHAS THE PANDEMIC FUNDAMENTALLY CHANGED THE PRINCIPLE AND PRACTICE OF
GLOBAL TRADE OR SHOULD WE EXPECT BUSINESS AS USUAL, WITH ALL ITS FLAWS?

S

ome argue that without globalisation there would be no
coronavirus pandemic, and that the pre-eminence ofinternational trade and travel is the architect of its own downfall.
Others see the pandemic as a turning point, a catalyst for a more
equitable, sustainable globalisation.
Meanwhile, trade tensions and popular
unrest continue to shift the basics ofglobal relationships, redefining both threat
and opportunity. As we look towards a
post-pandemic recovery, can a safer, fairer,
and greener renewal take place, or will
everything simply revert to a pre-pandemic
status quo? Early signs are mixed.
LEARNING FROM THE PAST
Many have likened the opportunity forchange presented by the coronavirus
pandemic to the immediate post WorldWar 2 recovery, a time of significant
investment, change and new blueprints
for peace and security through economic
co-operation and social rebuilding.
But perhaps a more sobering comparison
is with the global financial crash of 2008,
which saw free market economics infreefall and governments across the world
scrabbling to keep the boat afloat. The
world then as now, needed to address
climate and biodiversity change, andpoverty, as well as the state of global
healthcare and risk preparedness. Planningand implementing the 2008 recovery
was an opportunity to address theseissues – but the opportunity was missed.
Instead, governments dug in andappeared to bail out the few at theexpense of the many, committing to
the preservation of financial systems
and a faith in market forces to restore

economies, largely at the expense ofpeople and communities who suffered
most from the fallout. It was notenough to prevent a global recession,
since when most developed and many
developing countries have seen sluggish
growth. It also served to exacerbate
underlying problems, inequalities andincreasingly underfunded public sector
infrastructures. As a consequence, too
many governments were cruelly exposedby the pandemic. Developing nations are
more vulnerable, already nursing highlevels of debt and poor healthcare. On
top of all that, environmental stress has
emerged over the last decade as probably
the pre-eminent global challenge.

and to stimulate economic recovery.
A number of pandemic-hit nations haveturned inwards to protect themselves andtheir economies, which is understandable
but does not address a global crisis
with a global solution. Fortunately,
after an initial ‘vaccine nationalism’
from some countries, a more equitable
distribution model is now being created,recognising that global vaccination isa prerequisite for global recovery.

Having to put
people before

profits has sent a

shockwave throughthe global economy.

COVID CROSSROADS
It is hard to imagine that global trade
is not at a crossroads. After a year of
Covid restrictions that have impacted
lives, livelihoods and liberties, andproduced the deepest global recession
since post-war records began, theway out is still uncertain. Having to
put people before profits has sent a
shockwave through the global economy.
As a result, decades of prudent
financial management have been
turned upside down (in some countries
more significantly than in others) andgovernments have borrowed trillions ofdollars to fund domestic aid packages, tokeep people and businesses from collapse,

According to the United Nations
Conference on Trade and Development(UNCTAD), governments need torecognise that expansionary fiscal
measures need not be confined toemergency response, and that ongoinginvestment will be critical to global
recovery. In its Trade and Development
Report 2020, ‘From global pandemic toprosperity for all: avoiding another lost
decade,’ UNCTAD asserts that “Our mainconcern remains a misplaced optimism
in the rules, practices and policies of thehyper globalized economy.” In otherwords, returning to the old ways will be a

FEATURE– GLOBAL TRADE RESETUHY GLOBAL May 2021 21

iStock.com/Hamid Ebrahimi

return to pre-existing problems. The world
needs to step up to the challenge – anda global reset has to be part of the deal.
Nevertheless, some finance ministers
are already talking up debt reduction
initiatives – cuts to public services,increased taxation – even while theircitizens and businesses are struggling
with a second or third wave of thevirus. The danger, as UNCTAD sees it, ispremature fiscal tightening and a returnto the same market-driven economics
as before. It would solve nothing andbe another opportunity missed.
A RACE TO THE TOP
What nations do next has rarely carried
more significance for the future wellbeingof the global family. In the UnitedStates, a new administration under
President Joe Biden has shown positive
early signs of grasping, not missing,
the post-pandemic opportunity. On
his first day in office Biden signed thepapers to bring the US back into theParis Agreement on climate change, andthe country is now formally readmitted,
sending a strong signal of intent.
What is more, the Senate has approved a
massive USD 1.9 trillion stimulus package
to aid US recovery. Like many othercountries struggling under Covid in 2020,
ongoing crisis response saw spending thatwas not entirely environmentally friendly,with large sums shoring up beleagueredsectors such as oil and minerals extraction.
But the US package and Biden’s intentions
going forward are a cause for optimism.
An early boost to consumer spendingis anticipated, much of it likely to resultin the purchase of imported goods.

China will be a beneficiary and – despite
lingering tensions over the current tradeimbalance between the two superpowers– a resurgence in both economies is goodnews globally, the US and China between
them accounting for c.40% of global GDP.

A ‘race to the top’on green spendingfor jobs andinfrastructure would
encourage everyone.

Importantly, the US administration
wants to boost renewable energy with
substantial investment over the next ten
years, starting now. Targets of net zero
emissions by 2050 and a zero carbon
grid by 2035 are ambitious, given the
country’s relationship with fossil fuels, but
a big step in the right direction. With both
China and the US vying for economic
and technological leadership, a ‘race tothe top’ on green spending for jobs andinfrastructure would encourage everyone.
EXISTING TENSIONS
Unfortunately the coronavirus
pandemic has only served to exacerbate
many of the geopolitical tensions
that have been impacting trading
relations around the world before andduring the crisis, and this reinforceshigh barriers to a collaborative andswift recovery for all nations.
It remains to be seen how the Chineseand US administrations in particularmanage their relationship over the next
crucial months and years. 2021 hasalready seen a sanctions-led response
from major players and others, to alleged
human rights breaches. Meanwhile thecomplex challenges of Middle Eastern
nuclear diplomacy, border issues between
India and China, massive social unrestin much of Latin America, East Africa’s
internecine conflicts, a potential power
vacuum in the European Union (EU) withGermany’s Angela Merkel stepping down
this year, and the burgeoning threat ofcyber hostility everywhere – all of thiswill continue to occupy policymakers
and populations as countries struggle
to reboot trade and development.
In Europe the United Kingdom, Europe’s
second largest economy in 2019 (witha GDP of USD 2.8 trillion, according
to World Bank statistics), left the EU
single market and customs union on
December 31st 2020. For both parties,
the full impact on trade is unclear,and Covid lockdowns (now in a third
wave in many European countries) only
muddy the waters. Geopolitical tensions
present a further challenge to the UK
government, which must meet the needsof a restless Union. Scotland’s ongoingcall for independence, and Northern
Ireland’s dissatisfaction with a sea border
between itself and the rest of the UK asa result of Brexit, are major obstacles toa collaborative strategy for recovery.

22 UHY GLOBAL May 2021

FEATURE– GLOBAL TRADE RESET

iStock.com/Massimo Giachetti

However, despite all of the world’s
tensions, early signs of economic recovery
in 2021 at a global level are more positive
than many had anticipated. The OECD
Economic Outlook, Interim Report March
2021, for example, predicts a global GDP
growth of 5.6% for this year, up a fullpercentage point from the December
forecast, and more than most analysts
had predicted as the pandemic stopped
everything in its tracks during 2020.
ON THE GROUND DIRECTION
What is more, at a microeconomic
level, there is a lot that can be doneto help steer recovery in a more

MAKING IT ADD UP
Global accountancy networks like UHY
will have an increasingly importantrole to play in business sustainability,
because their member firms are
uniquely placed to turn rhetoric into
action. The profession’s representative
body in the UK – and increasinglyinternationally – the ICAEW, (Instituteof Chartered Accountants in Englandand Wales) talks of regeneration with ‘atriple bottom line’. Profit. People. Planet.
It is a neat truth. Throughout 2020,
UHY member firms have been
supporting their clients through thesustainable direction. Greta Thunberg’s
determination to shame the developed
world governments into action
over climate, would be an extreme
example, but business has a criticalrole to play too. Given that there is aninternational regulatory commitment totackle corporate issues like tax evasion
and profit shifting, then leaders andstakeholders on the ground might also
want to consider putting their weightbehind environmentally beneficial
investment programmes, better corporate
governance, greener pensions and more
purposeful corporate social responsibility.

worst of the pandemic, not only bydelivering engagements on time andwithout compromise, but also byhelping them navigate and benefit
from the myriad Covid compensation
schemes offered by many governments
across the world: grants, loans, tax
breaks, furlough and other labour
support programmes, restart funds,
filing deadline extensions and so on.
Taking care of the profit and the people.
Soon, professional advisors will stepup again, knowing that the triple
bottom line includes the planet.
Environmental, social and corporate

BlackRock, Inc. in New York, US, is theworld’s largest investment and asset
management company, with USD 8.67
trillion in assets under management (asof January 2021). In his 2021 letter toCEOs, the BlackRock Chairman Larry
Fink provided an upbeat perspective
on sustainable stocks, and theaccelerating movement of investors
into environmentally sound assets. An
advocate of the belief that climate risk
is investment risk, Fink’s message forbusiness is clear. “Companies with awell-articulated long-term strategy, anda clear plan to address the transition
to net zero, will distinguish themselveswith their stakeholders – withcustomers, policymakers, employees
and shareholders – by inspiringconfidence that they can navigate thisglobal transformation,” he says.
With the tilting of capital into climatesecure investment, more nations pledging
net zero carbon targets and an increasing
realisation by business that a genuine
commitment to the principles andpractice of environmental, social andcorporate governance is the path to abrighter future, then there are reasons tobe optimistic. Global scientists working
together on finding a vaccine delivered atruly astonishing result. Now governments
and business must do the same. n
For more information about UHY’s
capabilities, email the UHY executive
office, info@uhy.com, or visit
www.uhy.com

governance (ESG) is fast becoming awatchword for boards, shareholders andcapital markets. Brands know this, andtoday’s consumers are smart enoughto know the difference between lip
service and genuine commitment. An
essential component of the deal will
be a company’s non-financial reportingof its environmental, social, diversity
and other measures. UHY accountants
have the detailed knowledge, processexperience and expertise with datathat can inform clients’ strategic
thinking, and help them embrace asuccessful and sustainable future.

SERVING CLIENTS, SERVING COMMUNITIESUHY GLOBAL May 2021 23

STAR QUALITY
AFTER A YEAR LIKE NO OTHER, WE CELEBRATE THE
MAGIC THAT MAKES UHY SO SPECIAL – OUR PEOPLE.

EMERALD ISLE’S PINK ARMY
During Covid UHY Farrelly DaweWhite Limited, Ireland, sponsoredand took part in the 100K in 30
days challenge in June 2020 to raise
funds for Breast Cancer Ireland.

registered as sponsors again. We
were also very lucky to have worldclass football players Rio Ferdinand,
Sergio Aguero, John Hartson, andother stars, support the event.”

Teams joined the ‘pink army’ alongwith 15,000 people worldwide toraise EUR 1.2m (USD 1.47m). “Whenwe were working from home thiswas a great way to maintain teamspirit,” says Alan Farrelly, managing
director. “For 30 days our firm walked
over 10,000 kilometres, raisingmore than ten thousand euros (USD
12,300). We plan to play an evenbigger part in 2021 and have justBEST INVESTMENTS
The Crain’s business network is one of
the most respected in the US and does
not hand out awards to just anyone.
Two exceptional UHY professionals
caught their attention in 2020.
Julie Manteria, (above left) director ofmarketing at UHY Advisors Inc., New York,US, has been driving public relations anddigital marketing initiatives to support
our brand for over five years. Last year
she became the first UHY marketing
professional in the US to be appointed
principal. Despite Covid, Julie’s efforts kept
UHY Advisors’ profile in the spotlight.
Crain’s New York Business honoured
her as one of its ‘remarkable cohort’of Notable Women in Accounting andConsulting. “She worked on the firm’s
complete redesign of their website, led
the marketing integration of a multiple
office merger, and swiftly launched thefirm’s crisis management services campaign
in response to the global pandemic.”
Julie says, “It is an honour to be counted
among this talented group of women.”

MAXIMUM TALENT
Max Whiteley of UHY Hacker Young,
Manchester LLP won an Apprenticeof the Year award at the 2020
Made in Manchester awards, where
judges praised his commitment
and outstanding client feedback.
Max was also nominated for Best
Digital Rising Star at the 2020 Digital
Accountancy Awards and Insider’sYoung Apprentice of the YearAward in 2020 (assistant manager
Ellie Driver, was also shortlisted in
the Young Accountant category)
and in 2021 for Young Accountantof the Year. The Manchester teamwon Large Firm of the Year at the2021 UK and EMEA Xero Awards.

Meanwhile Crain’s Detroit Business arm
recognised ‘inspiring’ Kathy Crockettmanaging director, UHY Advisors
Inc., Sterling Heights, Michigan asa Notable Woman in Finance.
“She led the firm’s Great Lakes region of
Women Invested in Success & Excellence(WISE) programme, which focuses onleadership, the advancement of women andenhancing career opportunities. She inspires
others to develop expertise in policies, trends
and technology affecting the industry.”
Kathy was also nominated for a 2020 ATHENA
Award, which honours ‘an establishedleader and mentor who assists women inreaching their full potential and demonstrates
excellence, creativity, and initiative’.

LET US HELP YOU ACHIEVEFURTHER BUSINESS SUCCESS
To find out how UHY can assist yourbusiness, contact any of our member
firms. You can visit us online atwww.uhy.com to find contact details
for all of our offices, or email us at
info@uhy.com for further information.

UHY is an international network of legally independentaccounting and consultancy firms whose administrative
entity is Urbach Hacker Young International Limited,a UK company. UHY is the brand name for the UHYinternational network. Services to clients are provided
by member firms and not by Urbach Hacker Young
International Limited. Neither Urbach Hacker Young
International Limited, the UHY network, nor any
member of UHY has any liability for services provided
by other members. © 2021 UHY International Ltd.
The editorial opinions expressed in the magazine may
not necessarily be those of UHY International Ltd
or its member firms. Every effort is made to ensure
accuracy but the publishers cannot be held responsible
for errors or omissions. No part of this magazine may
be reproduced in any form without prior permissionof UHY International Ltd. We thank all contributors.
Design: Flex with UHY International. Editorial:
Flex with UHY International. Photography supplied by
UHY member firms, their clients and from stock.

Bildagentur Zoonar GmbH/Shutterstock.com