Economic model: Which is Best For Ghana?

I can't claim to fully understand the Western economies even though I have lived in America, one the most successful economies in the western world, for a long time. When you say that we should study the western economies, which country's economy in the world should we study as a model for Ghana? The western economies are not monolitic. America's economy is more or less a free for all with very little government regulation. On the other hand, when you look at Britain, France and Germany, the economies are under strict government regulation. The rules and regulations from the European Union, which these three countries are leading members, have made the concept of capitalism a mockery in Europe. It is more akin to monopolistic competition. It is the European Union versus the rest of the world. Many goods and services from certain countries in the world which do not have treaties with the European Union face higher custom duties. European producers, therefore, have monopoly in the production of certain goods and services. High customs duties and tariffs scare producers from other countries away from the European market even though the European producers may not be as efficient as other non European producers of the same goods and services. To show how extreme democratic socialism has gone, look at the economy of France. In France, an employer can't even fire any worker for cause. It is like almost every employee has a job for life once hired. Now, you see why the French students and young people in the country are protesting against the change in the law which would allow French employers the power to fire young people for cause within the first two years of employment? The Western Europeans are practising what could be characterized as "democratic socialism" whereas the Americans are stuck with "democratic capitalism". Where Canada stands, I don't have a clue. I suspect the Canadians are using a hybrid, part American economic system when it comes to production and the European system when it comes to distribution of social services. We can agree to adopt the capitalist model of economic development but must shun away from the socialist tendencies of governement involvement in productive activities. My suggestion would be for the government to control the armed forces and the post office, nothing more and nothing less. After this, the economy (productive activities) should be left to individuals and private entities to operate. This may be extreme but . .

The collapse of the former Soviet Union and her satellite states(the Warsaw pact), served as vindication of capitalism irrespective of how the concept was put into practice. It clearly proves that democratic capitalism(American style) or democratic socialism (the Western European style), is far efficient and superior in terms of production and distribution of resources in a country than the Soviet style(Marxism/Lenninism). Even the Red(communists) Chinese have seen it fit to adopt some semblance of capitalism within their huge economy. After the second world war, the Japanese adopted the American economic model but twisted it to suit the Japanese culture and tradition. This is one way Ghana can go in terms of an economic model. The primary role of the government in the economy is to create a conductive atmosphere/environment which would encourage individual entrepreneurs and others to undertake economic activities with very little government interference and or regulations.


The danger for us is not to take what works in either Europe, America or Japan and force it down the throats of our people. There are consequences(cause/effect) for adopting any model of economic developement. We must take our culture, history ,tradition and other social factors into consideration. When Busia tried to introduce democratic capitalism/socialism( call it whatever you want) in Ghana's economy, it didn't sit well with a section of the population. The first announcement made by Kutu Acheampong when he overthrew Busia's government in 1972 was this: "the few amenities we(the soldiers) have been enjoying have been taken away from us". Re-allocation and distribution of resources in a country coming out of what many may term as a "twenty year dictatorship and recklessness", followed by a few years of ( "I don't know how to characterize Kufour's policies") . . . Let's for the lack of a better term call it "confused capitalism" , is frought with many challenges and danger. This is one reason we have to avoid wholesale adoption of any model which is perceived to have been successful in a particular country. We always must be cognizant of our history, culture, tradition and the expectations of the population when coming out with any new economic system or model. Educating the people and allowing for free flow of information about the new economic model would go a long way to assuade the fears of the people. There would be many detractors, especially people who perceive to either lose or not gain much from the new economic system to be introduced. This is where a good PR and propaganda ( I don't mean the Krobo Adusei type of lies, distortions,vindictiveness, etc) ) machinery could help educate our people to give the new model/system a chance. It won't be easy but we must try.


Folks: Please let's be civil. No insults. Criticize me on the ideas presented and don't bring in my tribe or where I come from in Ghana.

Best regards,

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