Summary
The referred article speaks of Adam Smith and Charles Darwin. While Smith spoke of the invisible hand, Darwin spoke of natural selection and survival of the fittest. The referred article is in terms of economics. I look at the same question from an accounting and financial emphasis.
Analysis
1.The invisible hand has always been there in accounting and in the development of financial products. The survivors of these products are the ones which have got market acceptance.
2. Natural selection (Darwin) speaks of adaptability and change. The invisible hand refers to a population of businessmen doing the right thing for a selfish motive.
3. While the invisible hand and the selfish motive are driven by greed the process of natural selection is slower and driven by the environment.
4. While the invisible hand has a short term perspective the natural selection is more strategy driven.
5. Accounting standards have evolved more over a period of natural selection and due process (Darwin).
6. The development of CDO's and other securitized products has been more through the invisible hand.
7. Yet without the invisible hand there would have been no natural selection.
8. I would therefore say that in the changes taking place in accounting, economics and finance today through the invisible hand, look out for the natural selection accounting standards and financial products of tomorrow.
