Ghana Needs A New Socio-Economic Development Plan

Ghana Needs A New Socio-Economic Development Plan

The Institute of Economic Affairs has attributed Ghana’s socio-economic performance problem to an inefficient development plan. Ghana Business News reported that the organization’s senior economist, Dr John K. Kwakye, is encouraging the government to implement a long-term development plan with broad socio-economic checkpoints that will allow for both flexible enforcement and impactful change.

According to the report, within the realm of middle-income countries, Ghana lags behind with a per capita GDP of $1,500. Previous economic development plans are said to have caved because of a lack of resources and alternate plans put in place by succeeding governments.

While oil production has aided continual economic growth, Ghana Business News reported that the private sector and the country’s employment is suffering.

“To address the problem of graduate unemployment, school curricula should be reviewed so as to produce industry-relevant skills and make graduates more employable. University and industry must collaborate in this regard,” Kwakye said in the report.

Monetary policy, Ghana Business News outlined, is an issue that also needs to be addressed. The country’s 30 percent lending rate and 22 percent treasury bill rate don’t quite correlate on a level that stimulates growth within the banking sector. Ghana’s banks also have a slow response to monetary policy changes, which creates more obstacles.

“This is the result of structural bottlenecks in the banking system, including low efficiency, low competition, and persistence of excess liquidity. Monetary policy is further constrained by fiscal dominance in the economy,” he added.

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Since 2000 — when the United Nations created eight development goals for developing countries to be achieved by 2015 — Ghana has made significant socio-economic improvements, according to Ghana Business News. Still, the cost of credit, Kwakye believes, has to be adjusted as do borrowing and credit reference practices.

Once the government completes a ‘comprehensive assessment’ that reveals current poverty disparities and “gender economic inequalities,” planning to curtail lackluster performances — in these areas and beyond — can begin. Ghana Business News reported that despite growth over several years, overall poverty in Ghana is high.