Preface
To say the powers that be do not know what is wrong with our economy and what needs to be done will be an insult to the very foundations of the establishment of the country. We know, they know. It’s the will.
On March 25, 2014, Dr Mahamudu Bawumia, the New Patriotic Party (NPP) Vice-presidential candidate, gave the keynote address at the Distinguished Speaker Series at Central University College. After a relatively long speech on the economy of Ghana, his conclusion was; “Mr Chairman, in conclusion, I would like to repeat without exaggeration that the Ghanaian economy is in a crisis. It is time for serious action.”
“If the government does not take the right decisions and soon, then Ghana would likely have to approach the IMF for a bail out before the end of the year. At the end of the day, the obvious lesson is that, we cannot run away from fiscal and monetary discipline no matter how hard we try”.
The solutions, he proposed, were swept under the carpet. His suggestions were not rocket science, they were presented in the simplest terms and made a lot of sense.
Today, the economy of Ghana is on its knees. Power has become a very scarce commodity, the cedi is crumbling under pressure from the major foreign currencies, the International Monetary Fund (IMF), after bailing the economy out with a paltry $940 million, is asking for a budget review and new conditionalities. By the way, Intel Corporation cut its first quarter revenue this year by $1 billion to achieve a target of $12.8 billion.
In his book, My Vision – challenges in the race for excellence, the Prime Minister and ruler of the United Arab Emirates (UAE) and Dubai respectively, Mohammed bin Rashid Al Maktoum, writes about his vision for Dubai.
How a city of two million people with only 17 per cent indigenous population and a GDP in excess of $100 billion is poised to conquer the world. He writes about the need to take bold steps not for himself but for the generation unborn.
He postulates: “The success of our younger generation is not a success for the UAE alone, but a success for Arabs everywhere. They are the prime target of any economic vision and every development effort. Any development vision must ,therefore, aim at preparing the younger generation not only to keep pace with the new economy, but to also take the initiative and lead’…government corruption obstructs foreign investment.”
“For our part, we are providing exclusive investment opportunities that enjoy such a high reputation and we will not allow anyone to smear them. We do not have managerial corruption in UAE – it has no place in our hearts and we simply will not stand for it. We show no compassion or tolerance towards malfeasance, nepotism or hypocrisy”.
Moving forward
Since the series is on ideas to change Ghana; I will go ahead and still propose already known solutions. Every economy hinges on three key areas; revenue, jobs and industry.
To realise the revenue the country needs for development, it has to first of all know who it can tax directly and indirectly. Hence, the urgent need for the National Identification Card. The economy is supported by over 70 per cent from the Micro, Small to Medium scale enterprises (MSME). Knowing them is one thing and taxing them is an imperative.
Every year, over 100,000 young people graduate from senior high schools. Very few of them will continue to the university. Having a fine balance of our human resource needs is crucial. An over emphasis on one particular type of education can easily collapse the very fabric of a nation.
Business education is good, but a mix with liberal arts is essential for the wholesome development of a nation. To create jobs for the teaming youth, the government should offer more contracts to local firms and encourage them to form consortiums or mergers.
Also, tax incentives can be given to MSMEs who recruit young graduates. Building of incubation and research and development laboratories for innovators and existing businesses and projects are a necessity for leapfrogging years of under development.
Hawkers by the road side do not only distort the beauty of scenery but also a danger to societal cohesion. Industrial parks in the Brong Ahafo and the Northern regions can absolve all of these energies.
Many multinationals are looking to come to Africa as it is predicted that the continent’s population will double in the mid-century and quadruple by the end of the century, according to Hans Rosling, a Swedish Medical Doctor, academic, statistician and public speaker. Making Ghana an international hub for industry or service must be given serious attention. It should not be a lip service but strict planning and flawless execution. It should be driven by idealism, passion and bold decisions which will benefit the populace.
Conclusion
To develop economically, we need to appreciate our predicament and make a decision to change. Our only purpose on earth is for all of our actions to help mankind, anything less is unacceptable.
Yaw Asamoah work’s at Creative Trends, the organisers of the African SME Summit. Let’s continue the discussion at African SME Summit on Facebook. Email -