The fate of Ghana in 100 years from now …: essentials of shaping the thoughts of our body politic – Nana Abankwah Buadu [Part III]
The fate of Ghana in 100 years from now and the citizens’ role in causing financial loss to the state: the essentials of shaping the thoughts of our body politic.
This is the continuation of our previous article The fate of Ghana in 100 years from now …: essentials of shaping the thoughts of our body politic – Nana Abankwah Buadu [Part II]
Some indicators of interest
The true “state of a nation” should be its competitiveness on the global market, rather than a report of infrastructure and policies that have been implemented.
Although physical infrastructure may glorify a country, if it has no direct long-lasting income generation, its significance in contributing to GDP growth can be very negligible. In fact, an asphalt road passing the gates of a jobless man is merely a black-painted space, he sees no usefulness of it.
Over the years, managers of our economy have decried our high rate of importation and have severally blamed it for the weakening of our local currency [Ghana cedi].
Again, it is widely suggested that increasing our export will help rake in more foreign exchange to consolidate our Forex reserves thereby cushioning the local currency to avoid the rampant inflation and cedi depreciation.
That is true in juvenile economic sense, however the question is how much of GDP can be exported to earn enough? In principle, should we export all the assets in the country (GDP of US$ 65.56 billion) which is a 100 % export, the maximum returns we can have is twice our GDP, something that isn’t possible in present times, but needs a thoughtful leader to create such avenue, not a case of “you and I were not there” when others were creating the mess – on a lighter note.
In the subsequent paragraphs you will find out how that can be done with ease. In not so long, about 2000 years ago, the Holy Bible recounts Jesus Christ narrating a story about how important the kingdom of heaven is, by likening it to a pearl a labourer found on a field (Mathew 13: 44 – 46). The wisdom in that parable if well interpreted can prosper any nation which seeks economic breakthrough – you don’t need to get anxious, we are in this together.
It is noteworthy to state that, international trading (import and export) patterns have very significant effect on countries with either a smaller population or smaller economy and therefore must be appropriately be balanced as shown in Figures 3A and 3B below.
However, larger populations with large economies have little to bother about international trade. This can be seen among all the three low GDP countries having higher import as compared to their exports.
However, though Singapore has a bigger economy, their population is so small that they have to depend on market rotation. They have adopted what I call transit economy system. In this system, the country’s population does not have the capacity to produce much from their own resources neither do they have enough population to consume their products should they even produce largely.
Read also The ‘New Normal’ Agricultural Industry
Again, such a country has a very limited land mass and cannot risk increase its population carelessly. So, it simply adopts a strategy of importing large volumes of raw materials, process them to gain more value and then export.
By this strategy, the country retains any profit from the added value to increase its GDP and that is exactly what Singapore is practicing (you can read about the investment made in the Singapore Changi Airport and how much revenue it is fetching the country). I am sure you are quizzing yourself whether managers of our economy are aware of this information, well, that is to be discussed later.
In contrast, larger economies with corresponding large economies do not bother much about international trade. Such countries dwell on domestication, they produce and consume locally without relying so much on international trade.
In fact, the United States of America has higher imports than export, yet very resilient and buoyant. Such economies have very minimal international trade per GDP.
One may ask so which one will be suitable for Ghana?
It is widely believed that high literacy rate supports economic growth which is largely true according to Figure 3C, sadly, high literacy in Zimbabwe I must say is irrelevant to economic growth and this is what reveals the real problem of Africa. You seem not to either get it right or do things rightly and could that be the situation in Ghana? This is why I take you to the next 100 years, a free ride teleportation.
In simple terms, good economy provides good living and prolongs life. Weaker economy frustrates citizens and terminates their lives. I am sure you are very eager to see the next 100 years soon, yes, we are almost there …
Part IV will definitely give you goosebumps stay tuned
You can contact the author [Nana Abankwah] via firstname.lastname@example.org