Undoubtedly, economic growth is the most important means of raising people’s income and reducing poverty in the developing world. It creates jobs and opportunities for poor people to support their families and build more stable future.
It is true that despite the country’s significant progress in reducing the overall incidence of poverty, inequality and high unemployment, especially among the youth, remain a challenge. There is growing view on the side of the government to leverage its institutions and oftentimes legislation that will result to more growth.
Clearly, investment is the most fundamental determinant of economic growth identified by various growth models. The importance attached to investment has led to an enormous amount of attention on its relationship with economic growth. Such investment can be made in human capital which refers principally to workers’ acquisition of skills and know-how through education and training.
While our economy is expected to undergo a radical change, a more focused on sound economy policy will make the business sector more active and ensure stability. It will also encourage offshore investors and they can be rest assured that they can repatriate their profits to their home countries without fear of policy reversals.
Whereas the government is expected to use better administrative focus and leadership prowess that will raise public optimism on the business sector and the country as a whole, the challenges that stifle the country’s ambitious path towards attaining its full economic potentials need to be dismantled.
We should also mention the need to explore and exploit local technology and expertise to promote local industries and putting them on a better footing, instead of spending whopping sums of money importing expertise that appear to defy our collective hopes and wellbeing. The role of technological progress as a key driver of long–run economic growth is quite critical.
Even as we commend the government for advancing mechanisms for greater openness to trade which is an important determinant to economic performance, we should continue to place more attention on foreign direct investment (FDI). It plays a crucial role in internationalising economic activity and a primary source of technology transfer and economic growth.
There should also be a change in the procedure of managing importation and exportation of goods and services, improvement in electricity, revitalisation and improvement of infrastructure, payment of sustainable salaries for public and private sector employees which will gear them to pay their tax always, enhancement of youth entrepreneurship and stabilisation of the exchange rate of the national currency (the dalasi).
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