Private sector needs increased investment and funding - Prof Ayittey

Accra, April 5, GNA - Professor Ernest Ayittey, an economist, has called for increased public investment and funding for the private sector in order to make it an effective engine of economic growth.

He said fundamental changes in existing state structures and infusion of private capital were needed to propel the economy from the current flat growth rate of five per cent to about seven or eight per cent in order to reduce poverty.

He was contributing to a panel discussion on "Democracy, poverty reduction and growth; Ghana's experiences and challenges" as part of a three-day national conference at the Ghana Institute of Management and Public Administration (GIMPA), Greenhill in Accra on Sunday.

Prof Ayittey, who is the Director of the Legon-based Institute of Statistical Social and Economic Research (ISSER), said policy reforms in the last 20 years had failed to provide incentives for long-term commitment to the private sector.

He stated that unless there were jobs from the public sector to the private sector there would not be any investment.

He called on Politicians to harmonise their development activities and followed them through projects that would enhance the performance of the private sector.

The conference was organised by the Institute of Democratic Governance (IDEG) in collaboration with UNDP, the National Governance Programme, DANIDA and African Capacity Building Foundation.

More than 150 participants representing the District Assemblies, Ministries Departments and Agencies, the Academia, as well as private sector operators and Ghana's development partners are attending the conference. It is on the theme: "Working purposely together for better results: Civil Society, Private sector and State /Public Sector Organisations."