Reasons for Underdevelopment and Policies to Address Underdevelopment in Ghana - Essay Example

Ghana Economic Analysis Name: Institution: Course: Date: Ghana Economic Analysis Introduction According to the economic records by the International Monetary Fund, Ghana realized a 15% record high growth in 2011. However, over the years the West African country has not been able to sustain the economic growth rate despite the country’s economic growth rate being consistently above average compared to other sub-Saharan countries in Africa (Ghana, 2013). In 2013, for instance Ghana realized 5.4% growth rate against a target of 8% (National Development Planning Commission & International Monetary Fund 2012). It is possible to argue that the exponential growth experienced in 2013 was because of the petroleum exploitations and relatively high international oil prices on the global market. The inability of Ghanaian economy to sustain a momentum economic growth has become a subject of concern (Ghana, 2013). Inasmuch as the dwindling economic growth rate is not exclusive to Ghana, it is important to assess the possible reason for underdevelopment in Ghana and the policies that must be formulated to ensure improved and sustained economic growth in the country Reasons for underdevelopment in Ghana Corruption From an economic perspective, corruption accompanied with its debilitating effects interferes with operations across socio-economic and political systems. Despite being a universal phenomenon, corruption in Ghana can be perceived as blasphemous considering that even existing regulations and laws have failed to combat this vice since it is the lawmakers and policy implementers that have turned out to be corrupt (Amoah et al 2016). Corruption is defined by behaviour on the part of public officials in the public sector who use their power of holding public offices to unlawfully acquire wealth, property or misuse public resources entrusted to them. Ghana is one of the countries rich with natural resource in the world. Despite the abundance of natural resources, Ghana is also one of the countries defined by high-level poverty and underdevelopment. The country is characterized by high unemployment rate and low salaries and wages for those employed in the economic infrastructure (Kumo 2012). Corrupt public officials in collaboration with private multinationals have subjected the natural resources in Ghana to exploitation. This has not only undermined the economic prospects of the citizens, but also affected their morals and expectations with regard to national development (Anin 2014). The major effect of corruption in Ghana is that it infringes on the fundamental human rights, which is protected under chapter five of Ghanaian constitution. An additional danger of continued corruption with regard to the use of public resources is that it limits the existence of quality governance while at the same time endangering the sovereignty of the country. An interesting feature is that corruption in Ghana has contributed to the rise of household price of water by about 30%. Furthermore, the price of general commodities has also risen by about 20% (Mills 2011). This not only makes the ordinary Ghanaian thirsty but also more impoverished due to high prices of commodities, which continue to rise. Every year audit reports in Ghana indicate cases of massive fraud, abuse of office and wastage of public resources. However, the government has in most cases failed to indict institutions and persons mentioned in these reports necessitating high-level impunity in the country (Nega and Schneider 2012) Ineffective leadership One of the major requirements of economic development in any country is effective leadership. This is because the leadership in any economy has the responsibility of assessing the existing economic situation in a country, developing policies defined by the situation and implementing polices with the objective of improving existing economic conditions (Alence 2012). In Ghana, ineffective leadership has been considered as a major contributor of underdevelopment. This is because the leadership often over-politicizes issues to the extent that it becomes relatively impossible for the country to have any meaningful consensus on the implementation of important national issues (Asamoah 2014). Instead of electing and appointing courageous and visionary leaders, the country has, over the years, been burdened by unpatriotic, corrupt and selfish leaders. These leaders unlike their counterparts in developed nations have failed in their ability to develop strategic national development plans that would motivate Ghanaian citizens to embrace their visions with regard to the promotion of rapid national development (Asamoah 2014). Part of the problem with the Ghanaian leadership is in their propensity to politicize any issue of public interest. Such politicization has made it relatively difficult for the leadership to hold any objective and dispassionate discussion without the possibility of trading accusations. This has been perceived as the main contributor to lack of national agendas on important issues (Mills 2011). This explains why in Ghana, programs and polices frequently change as regimes change. Unlike Ghana, most developed nations have been able to achieve sustained economic development based on commonly agreed national agendas. In such countries political debates do not comprise what is to be done in a specific sector but the best techniques that must be embraced to ensure that policies implemented in any sector are sound and effective (Mills 2011). As any other country intruded in the development and implementation of sound economic policies, Ghana is need of visionary leadership that would not only create but also champion for the development of national consensus on that which must be done. Such attempts would also ensure mobilization of the public and political player s into embracing the vision for economic and national development (Chunan-Pole et al 2013). Historical capitalistic system Like most African countries, underdevelopment n Ghana can be blamed on political and institutional structural failure. These domestic failures can also be perceived as direct consequences of the historical injustices necessitated by a capitalistic system, which has hindered modern neo-liberal economies such as that of Ghana from developing (Agyeman-Duah & Kelly, 2008). The historical colonial relations between African countries and the west facilitated the creation of failing institutional foundation. Through their investment initiatives, western nations forced Ghana into embracing pragmatic neo-liberal market economics that were characterized by forced structural adjustment programs which have not only weakened he country’s production structures but also contributed to high external dependency and institutional weaknesses. These are factor considered as the main contributors to slow economic growth in Ghana (Boafo-Arthur 2012). The introduction of an open market system in Ghana and unfavourable international trade rules have resulted in the exploitation of Ghana and increased underdevelopment. Form an agricultural perspective Ghana is considered as a producer of cash crops exported to European countries for the industrial process (Ross 2012). Unfavourable global prices have made limited contribution in improving Ghana’s export position, which is considered crucial in the country’s export oriented growth. For Ghana, liberalization of the market has contributed to an increase in the levels of income inequities between the country and the world’s richest countries in trade (Ross 2012). Health Existence of poor health and healthcare infrastructure in Ghana has also been considered as one of the main causes of underdevelopment. This has been necessitated by poor water supply, inadequate nutrition, poor education and insufficient income among the citizens to acquire effective medication. This means that in Ghana the risk of medication is greatly amplified (Nega and Schneider 2012). The result of poor healthcare in Ghana can be seen as a major contributor of low life expectancy and high child mortality rate. In Ghana diseases such as measles, malaria and diarrhoea, which are easily curable, are ranked as the main killers. There is need to make a special mention of the AIDS, which has reached an epidemic proportion contribute to underdevelopment in Ghana considering that the government has to dedicate much of its resources in addressing the AIDS epidemic at the expenses of other health needs (Couderc & Ventelou 2011). Policies to address underdevelopment in Ghana Policies on corruption For a country such as Ghana, which is entrenched in corruption there is need for the government through different stakeholders to develop reasonable anticorruption polices and institutions that would protect public resources from misuse and exploitation by public office holders. Holding such individuals accountable for their actions would be a major contributor to reducing and eventually eliminating the vice of corruption in the public and private sector (O’Higgins 2013). Effective anticorruption polies would be developed when the institutions responsible for accountability of public resources such as the judiciary is led by leaders who demonstrate high-level transparency and integrity. In addition, an informed public can also play a role in the reduction of corruption levels by reporting and declining to be involved in any corrupt initiative. The process of elimination corruption in Ghana must therefore begin by the development of initiatives aimed at sensitizing the public on the dangers of corruption and the best institutions that could address any complaints related to corrupt officials. By empowering the public, the Ghanaian government will have reduced the lees of corruption by a high percentage considering that the public forms part of the group for which the resources are meant to serve. Electing visionary leaders For a country such as Ghana to experience improved living standards and levels of development it would be important for the electorate and the appointing authorities to ensure that all public and private office holders are not only qualified to hold office but also have a the ethical standards that re necessary in national building (O’Higgins 2013). One of the techniques that Ghana can use in streamlining its future leadership is by developing polices aimed at improving the education system. This is based on the realization that successive governments have politicized the education system to an extent that students no longer understand the expectations and the benefits of the education systems with regard to nation building (Ross 2012). By addressing issues of curriculum in the education sector, it will be possible for different stakeholders to dedicate resources towards the grooming of future leaders of different interest groups through formal procedures. The process of developing policies targeting electing and appointing effective leadership into public office must also be characterized by the development of policies targeting leadership training and vetting process must be inculcated into every public office aspirant (Nega and Schneider 2012). This approach will ensure that it is only officials who demonstrate honesty, accountability, probity and commitment to national development that take up public office. Making it a requirement for prospective candidates and holders of public office to undergo some form of ideological and leadership training commensurate with the necessary exposures would be effective to ensure national development (Nega and Schneider 2012). Policies on economic development Attracting foreign and local investors into the Ghanaian economy is considered as one of the major techniques that can be used in reducing underdevelopment and poverty levels in the country. It will be important for the government to ensure that economic policies targeting local investors and foreign investors should be based on the desire of improving the economic wellbeing of its citizens (O’Higgins 2013). Foreign direct investment policies must address external factors, which have been perceived as the foundation of underdevelopment in Ghana. Foreign companies must invest in the industrial sector to allow for processing of raw material to finished products. Such initiatives would not only improve export sales for the country but also facilitate the creation of employment opportunities for Ghanaian. Inasmuch as internal adjustment are necessary in addressing underdevelopment in Ghana, effective economic policies in the global market characterized by market liberalization must be formulated targeting external factors which must change to allow for internal restructuring (Nega and Schneider 2012). Policies on healthcare The provision of effective healthcare in Ghana is crucial in ensuring improved development considering that a healthy nation can be involved in development initiatives. Investing in healthcare sector would require employment of highly qualified and well remunerated medical personnel. Policies targeting subsidized healthcare and research in health would also be effective in reduction of child mortality rates, prevention, and treatment of different diseases (Nega and Schneider 2012). Conclusion The inability of Ghanaian economy to sustain a momentum economic growth has become a subject of concern. Despite the abundance of natural resources, Ghana is also one of the countries defined by high-level poverty and underdevelopment. Part of the problem with the Ghanaian leadership is in their propensity to politicize any issue of public interest. This makes development a complex phenomenon. There is need to develop policies that will endure development in all sectors of the economy. References Agyeman-Duah, I., & Kelly, C 2008, An economic history of Ghana: Reflections on a half- century of challenges & progress. Oxfordshire, UK: Ayebia Clarke Pub. Alence, R 2012, “Political institutions and developmental governance in sub-Saharan Africa”, Journal of Modern African studies, 42, 2 Amoah, M., Aning, K., Annan, N., & Nugent 2016, A decade of Ghana: Politics, economy and society, 2004-2013. Anin, T. E 2014, An economic blueprint for Ghana. Accra: Woeli Publishing Services. Asamoah, O. Y 2014, Political history of Ghana (1950-2013): the experience of a non- conformist. AuthorHouse. Boafo-Arthur, K 2012, Ghana: One decade of the liberal state. Dakar: CODESRIA Books. Bosker, M and Garretsen, H 2012, “Economic Geography and Economic Development in Sub-Saharan Africa”, University of Groningen, n.d. Chunan-Pole, P, Christiaensen, L, Dennis, A, Kambou, G, Angwafo, M, Buitano, M, Korman, V, Galindo Pardo, C and Sanoh, A 2013, “Africa’s Pulse”, Vol. 8, The World Bank, October 2013 Couderc, N & Ventelou, B 2011 “AIDS, Economic Growth and the Epidemic Trap in Africa”, Oxford Development Studies, Vol. 33, No. 3&4. Ghana, 2013 2013,. Place of publication not identified: Oxford Business Group Kumo, W, L 2012, “Root causes of African underdevelopment and opportunities for Revival”, Afro Articles, Mills, G 2011, “Why is Africa poor?”, Development Policy Briefing Paper, no. 6, the Cato Institute. National Development Planning Commission (Ghana), & International Monetary Fund 2012, Medium term national development policy framework: Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013. Washington, D.C: International Monetary Fund. Nega, B and Schneider, G 2012, “Things fall apart: Dictatorships, Development, and Democracy in Africa”, Journal of Economic Issues, vol. XLVI. O’Higgins, E 2013, “Corruption, underdevelopment and Extractive Resource Industries: Addressing the Vicious cycle”, Business ethics Quarterly, Vol. 16, no. 2, Philosophy Documentary Center. Ross, M, L 2012, “What do we know about natural resources and Civil War?”, Journal of Peace Research, Vol. 41, no. 3. Read More