Ghana and the global recovery

Sat, 20 Nov 2010 Source: Odro, Kofi

Since Ghana’s independence, subsequent governments have made tremendous efforts to develop the Ghanaian economy and better the living standards of the citizenry yet very little seems to have been achieved.

In his observation during the early part of 2009, the Finance Minister Dr Kwabena Doffour hinted that the European and the United States recession could be the opportunity for Ghana to develop its economy - and he was right.

The Sufficiency Economy Application Model could be applied to achieve the said econo8ic growth using existing infrastructures without the government needing to borrow or invest

On another occasion Mrs Ngozi Iweala of the World Bank stressed at the 2010 African Investment Conference in Accra that, Ghana should not rely on loans as the path to economic growth but rely on expanding its service sector to boost growth. This comment explains what Dr Duffour had earlier said, meaning a nation may create jobs, fiscal drag and private sector wealth outside the parameters of manufacturing and territorial resources without recourse to capital investment.

The truth is that in the 21st century it does not require rocket science to turn an ailing nation into a prosperous and a sustainable reserve yielding fiscal drag economy..

The Chinese know this. Hence thirty years ago they called in their economic reformers to turn their hard line neo-batter communist economy into a prosperous monetary Hercules via the institution of low wages.

Within the last 10 years the Chinese Yeun has appreciated by about 21%.

In 2010 Chinese imports grew by 47%. At the same time exports shrunk by 22 billion dollars but the economy still leads the global economic marathon in a way that was not reasonably foreseeable. This is due to the proactive thinking of the Chinese economist, the type Ghana has around the world but may have lost through brain drain.

Although economic growth is powered by three (3), main elements, namely, currency stability, industrial discipline and the institution of low wages, but the sufficiency model does not need these elements.

Therefore clearly, today nations may generate public sector jobs as well as private sector wealth outside these three elements, using the Sufficiency Economy Model and achieve growth without recourse to capital investment as mentioned above.

Come on Ghana!

Now call us. We are the economic reformers.

By Kofi Odro

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Email: kofikofi1@gmail.com

Columnist: Odro, Kofi