GhanaWeb TV



The state is the most important player in the economic game

Tr Tem3 Oct19 File photo

Sun, 7 Jun 2020 Source: goldstreetbusiness.com

This article holds the idea that the most important player in the Economy is the State. However, it does not mean the State must replace the market.

Then, the globe is swapping rapidly, and so is the Economy. That is because people's demands are changing as human necessities are evolving too. For that, it is necessary to think about the Economy according to the new reality. That implies to consider the economic role of the State.

But, before that, the Economy has to be pragmatic and logical; it is about human decisions. The Economy should not be affected by political ideologies. In contrast, it has to be led by pragmatism and smartness.

So, regarding the State's role (Not governments), it is possible to assert the State is the most relevant player in the economic game. Its importance is about its responsibility to the population's well-being.

In other words, the State is responsible for people's quality of life. And, as human beings are in the heart of the economic system, everything which has economic nature is social too.

Besides, the State works in the economy as the bigger player, because it leads the economic policy. In consequence, the State has an exclusive budget and superlative powers.

One of those powers is to be the administrator of public goods. According to that, it is convenient to indicate the State has to split political issues from economic duties. That pretends for good administration practices of public sector institutions.

Just to clarify, those entities have to be profitable and well manageable. If not, people will have to face the deficit paying more taxes. Consequently, the population has to diminish its consumption.

It is a fact, an economic player can use an income portion in consumption, and also, this player can save or invest another amount.

That is a key point because the State has to provide the needed conditions for doing business and contribute to human development. The State can use public policies to promote economic interaction looking for development conditions.

Those conditions are security, private property, the health care system, justice, a healthy environment, human rights, and education, etc.

All at all, the State has to be led by policymakers and not by demagogues. Most of the politicians are good speakers but bad managers as they do not have technical expertise. And the economy should not be a victim of this situation; it has to serve people and not individual interests!

Columnist: goldstreetbusiness.com