When I was in New York about six weeks ago, I found it difficult to sell the economic credentials of my nation for the first time in over three decades. My joy over a safe return was quickly replaced by sadness as we drew near the runway at Kotoka International Airport at the conclusion of my return trip. The stark contrast between what we saw and what one would typically see when approaching the runway of an international airport in a typical modern city was upsetting. I questioned, "Why?"
Our current economic catastrophe, which is the product of a colossal failure of leadership, has now clouded all possibility of advancing our growth. I anticipated it when the administration hurried to raise USD 2.25 billion from a single source after just three months in power. I considered the interest rate of 19.75% to be punitive, and the redemption premium to be a safeguard for the bond's term (duration). I suggested taking a closer, more critical look at the Ministry of Finance's plans because I noticed red flags of carelessness.
The state of our economy is dire, and it's terrible to see how angry and powerless young people are becoming. I am concerned about the bitter, polarizing, and greed-driven politics that are the cause of all of this. What happened to all the love we had as one nation? How I wish we were all devoted to creating the Ghana that our founding fathers had envisioned.
Because I am familiar with pain, I am concerned about my "fellow Ghanaians". For this reason, I'd want to discuss our development issues once again. Most of what I have to say has already been said and is widely known. However, there are some things that can never be repeated enough, and there is frequently a strong need to reiterate something that may seem clear.
Our vulnerabilities
Meningitis in northern Ghana, COVID-19, and Ebola in various areas of Africa have all presented significant challenges. These and other tragedies have highlighted the black race's fragility and the urgent need for our leaders to consider what we can do to support Africa's development. The chance to further our nation's peace and togetherness, which are essential for growth, seems to have been lost in Ghana.
COVID and, of course, the ongoing conflict in Ukraine are not the cause of our current economic difficulties. All of these things we will survive, but we must constantly keep in mind that prosperity is not the same as survival. The fact is, our people are in pain.
Our wealth of resources
Like many other African nations, we are fortunate to have a large number of resources, the most valuable of which is our human resource—a youthful and expanding population. The natural riches of the earth are more than fairly distributed among our nation and the rest of the continent.
Africa is home to 60% of the world's uncultivated arable land, 20% of the world's unexploited natural resources, and 17% of the world's population. However, we only make up around 3% of the global GDP and a comparable amount of the world's commerce. Africa possesses 60% of the finest solar resources in the world, but just 1% of the world's solar producing capacity, according to the International Energy Agency.
Ghana is significantly better off than the typical African nation because to its rich land, gold, diamonds, bauxite, manganese, oil, and gas, among other resources. So there is a lot of room for growth.
Development that offers the necessities of food, shelter, water, health, education, electricity, roads, jobs, and incomes, thus good living standards, and ultimately, happiness, is the minimum that Ghanaians desire, and indeed, deserve. This was the vision of our founding fathers, and it was enshrined in the 1992 constitution.
The forefathers of our country not only understood this, but they also had faith in our ability to strive toward the desired growth. The call for independence and the declaration that "the black man is capable of regulating his own affairs" were motivated by this.
They also thought that in order for us to reach our full potential, we need a free, just, and democratic society. For this reason, they chose the motto "Freedom and Justice" to encourage adherence to these fundamental principles of democracy.
By stating in Article 36 (1) of The Directive Principles of State Policy that "The State shall take all necessary action to ensure that the national economy is managed in such a manner as to maximize the rate of economic development and to secure the maximum welfare, freedom, and happiness of every person in Ghana and to provide adequate means of livelihood and suitable employment and public services," the drafters of the 1992 Constitution highlighted the importance of development.
The statement in Article 36 (2) (b) that "The State shall, in particular, take all necessary steps to establish a sound and healthy economy whose underlying principles shall include affording ample opportunity for individual initiative and creativity in economic activities and fostering an enabling environment for a pronounced role of the private sector in the economy" further recognizes the significance of individual initiative and the private sector.
Happiness is the essence of life and is crucial for cohesion, peace, stability, and long-term growth. So, no country can achieve its full potential without ensuring that everyone has the right to pursue happiness. Thus, the 1992 Constitution's authors and our founding ancestors have peace, advancement, wealth, and happiness for all in mind.
The actual status of the situation
The reality is that we have utterly failed to realize the goals set forth in the 1992 Constitution and the dream of our forefathers—a country capable of giving all its citizens the basics of life and ensuring their happiness—under indigenous leadership Too long have we been pretending.
Because of our vast resource endowments, I view poverty in Ghana as a contradiction. We are thirsty in the middle of a stream, hungry in the midst of abundance, and battered by the rain while keeping our umbrellas down.
Despite all of our resources, we are currently an impoverished, insolvent, and heavily indebted nation. By year's end in 2022, our debt-to-GDP ratio is expected to soar to 104% from its current level of 35% of GDP. Now, the sustainability of our debt and our capacity to create enough budgetary space to meet urgent and crucial development demands are in doubt. With the introduction of a domestic Debt Exchange Program, the concerns that Ghana might miss a payment on its debt have now come true. And we are making a fool of ourselves by claiming there won't be any haircuts when in fact there will be less promised coupon payments.
The terrifying unemployment rate, accelerating inflation, and currency devaluation are all aggravating factors. Since December 2021, inflation has been increasing, reaching 40.4% in October 2022. The dollar appreciated 141% in the same year, from an average of GHS6 in October 2021 to GHS14.47, or a loss of 58.53% in cedi value.
Unsustainable debt and default threats, failing socioeconomic infrastructure, market volatility, and rising young unemployment are just a few of the indicators of a country in crisis that have been present everywhere you looked, despite denial. There is so much to do yet no employment! And currently, corporate failures pose a danger to more job losses. We have failed poorly and lag behind our neighbors significantly.
The raging inflation, currency devaluation, and alarming unemployment rate only serve to exacerbate the situation. Since December 2021, inflation has been increasing and as of October 2022, it was 40.4%. The dollar appreciated 141% over the course of the same 12-month period, from an average of GHS6 in October 2021 to GHS14.47, or a loss of 58.53% in cedi value.
Despite denials, there have been warning signals of a crisis in the country everywhere you looked: unmanageable debt, default threats, a crumbling social and economic infrastructure, market volatility, and rising young unemployment. Yet there are so many things to do! And now, the possibility of further job losses is coming from corporate failures. In comparison to our neighbors, we have failed badly.
repercussions of failure
Due to the widespread hardship and mounting resentment caused by these failures, many Ghanaians have fled the nation in quest of better opportunities overseas, preferring the xenophobic isolation there to the oppressive circumstances at home. Our peace and security are under grave danger as a result of the growing crime rate and suicide rate.
Hundreds of skilled medical professionals who received their training at the state's cost have left Ghana in the past two years to work in care homes in the UK. By the way, the government is helping our nurses leave for nations with comparatively more.
As I stated in September 2021 in response to the Speaker of Parliament's courteous visit, Ghana would have declared bankruptcy if it were a corporation. We essentially accomplished this by returning to the IMF and using the Debt Exchange Programme.
Where did we come from?
The first step in finding answers is realizing our problems. Our dishonesty, partisanship, cronyism, tribalism, greed-fueled corruption, lack of proper planning and the ensuing episodic approach to economic management, as well as poor monetary policy that has indexed our future to the past, are just a few of the factors that have contributed to our chaotic economic situation. Our attitudes and ideas, as well as a constitution that has outlived its purpose, make the issue worse.
having respect for the truth and the law
Despite the fact that we present a highly holy image, we have little regard for the truth. Whatever is left of what is good in our value system being destroyed by those who are not afraid to use the name of God to support the lies they say. It worries me how blatantly people justify wrongdoing.
Depending so much on who is speaking in Ghana today, it is difficult to know what is true. Some people have gotten so egocentric that even doing something that is blatantly wrong is okay as long as they gain anything from it.
Such dishonesty has damaged our democracy, peace, unity, stability, and growth while also undermining the values of justice, equality before the law, and fairness. Democracy and progress are built on the principles of truth and accountability. Because of this, the nations with the best legal systems are the most developed.
The truth about the government's goals has not been provided to us, not even in managing our current predicament.
Winner-take-all, polarizing politics
Everything is viewed through political filters these days. Development, the granting of tax and tariff waivers, the awarding of contracts and jobs, and even recruitment into the security services have all become politicized by the anti-nation, winner-takes-all style of politics. It is astonishing that even some presidential candidates openly support excluding non-party members from contracts and employment while threatening to do the same if they are elected. Therefore, the incorrect individuals receive contracts and appointments. The outcome has been widespread mediocrity.
Local political goals have trumped national interests in a variety of areas, including development initiatives, the battle against corruption, the administration of justice, the war against Galamsey, and the aftermath of COVID-19. This has been a key contributor to our contentious and polarizing politics.
In fact, a portion of our population has a false sense of entitlement and ownership and has become acclimated to privilege to the point that exclusivity is undesirable unless they are the recipients. Discrimination has hampered initiative, innovation, and hard work, preventing the nation from utilizing all of its resources for talent and skill development.
Our constitution promotes an inclusive system that offers chances to everyone. However, we lack a model or formula for how the nation's resources should be distributed, for example, to ensure equity. Politics no longer has a development goal; it is instead an end in itself. Our leaders have demonstrated a stronger dedication to holding onto power than to the advancement of the nation.
Greed, corruption, accountability, and openness
According to the Ghana Integrity Initiative, Ghana "loses close to US$3 billion to corruption every year." Without a doubt, if honesty and caution had been our guiding principles while making purchases, our budget deficit would have been less and we probably would not have needed to borrow money from other sources.
Under bogus certifications of urgency, using single sourcing or limited tender to award contracts has proved detrimental. It has enabled a select few to use unethical tactics to get contracts for family members and friends at exorbitant costs that harm everyone. While some authorities take advantage of "urgency," other administrators hide behind "confidentiality" to divert our little resources into personal fortune.
Few individuals with predatory and parasitic inclinations, some of whom enter positions of leadership or public service with the intention of enhancing their own wealth, have been able to benefit at the expense of the majority due to a lack of accountability.
Corruption has been oppressive and upsetting. Some of our leaders overnight become into entrepreneurs. They hinder real businesspeople, irritate them, or steal their concepts. They employ tactics that inhibit initiative and hinder the expansion of the private sector. They prevent the nation from developing by stealing funds that could have been used to construct roads, schools, and hospitals, and they are the primary cause of the appalling state of our economy.
However, corruption is not just a problem in government. Because corrupt officials don't produce much on the job, it is prevalent and has reduced production in both the public and commercial sectors. Instead of expanding the pie, they spend the majority of their time devising schemes to reduce its size. They are eating away at the fundamental underpinnings of our progress, like termites eating away at the timber.
Politicians are viewed as adversaries even when they take a different stance in public due to partisanship that has been developed by greed and the struggle for control of resources. In a more agonizing new race for our resources, our educated elite have replaced the colonialists and are raping our nation cruelly.
"Corruption was not in the news in the Gold Coast, but corruption has filled the press in independent Ghana," someone commented on a news piece. We were successful in giving corruption a new name in Ghana, which was formerly free of it.
Too many recent trades and initiatives have drawn criticism. These include the National Cathedral, the sale of public property, the planned Agyapa deal, the failed PDS transaction, and the payment of judgment debts.
Planning, prioritization, financial strategy, and waste
Our economy has been poorly managed. Over the years, we have discussed the fundamental flaws in our economy, including foreign dominance, an excessive reliance on imports, and our failure to increase the value of our exports. We haven't been able to put any workable plans in place to fix these flaws.
And, very plainly, some of the decisions we took didn't seem to have been well thought through or carefully planned. We all saw the hasty implementation of the Free SHS Program, the Single Spine Salary Structure, and the abrupt, rash elimination of road tolls without appropriate preparation. Numerous additional programs have been chosen without consideration of the sources of funding. Our tiny nation will soon boast three international airports while having a very subpar internal transportation system.
As was the case with the E-levy, which failed to generate the anticipated income, we likewise established goals without providing clear roadmaps that outlined the necessary measures, their timing, and their impacts. Budget deficits and excessive borrowing became unavoidable as a result of all these factors mixed with corruption.
We have extremely low incomes and spend on unnecessary items in a way that even the most wealthy nations would not. Ghanaians made fun of Houphet Boigny when he constructed the 18,000-seat Basilica of Our Lady of Peace in Yamousokro in 1990, 32 years ago. We had no idea that decades later, with the construction of our own National Cathedral, we would be trying to surpass him.
It goes without saying that the significant rise in the number of ministries and appointees in 2017 was a waste because it had no influence and did not even get to the desired results. Our parliament's size was recklessly increased due to political considerations, with little to no consideration for the additional expenses — wages, many ex-gratia payments, Common Fund allotments, etc.
Wasteful actions include paying directors and staff of the nonexistent Keta Port, losing money on the unsuccessful ECG to PDS grant, abandoning projects, selling government cars and replacing them within four years, and spending money to register new voters.
The payment of end-of-service rewards and various allowances and privileges to some state personnel, as well as the use of large convoys and expensive travel for mostly pointless seminars and conferences, have all been wasteful (e.g., the reported 322 people who attended the recent UN Climate Change Conference in Egypt).
In addition, I'm unsure of if or how our legislators account for the numerous funds they receive for initiatives in local development in their areas. NABCO trainees are currently fasting and praying for underpaid benefits.
Our SOEs are not well-managed. They construct structures they don't require, spend practically all of their income, and give little to no dividends to the government as a result. Because of this, top executives take advantage of any chance to travel overseas, oftentimes needlessly. And because of this, even if their employers contribute to Tier 3 pensions, they have rules that allow for the payout of up to four (4) months' income for each year that a person is laid off.
The so-called "clean-up" of the banking industry, which included the liquidation of several banks, was an impulsive, unplanned action that added extra expense to the state's budget. The cost-benefit analysis of such endeavor has not yet been revealed. We are currently paying a price for all of the carelessness.
Failure of monetary policy
One area of economic policy that has evaded examination throughout the years is our monetary policy. There hasn't been an open discussion on monetary policy implementation in this country since I voiced my dissatisfaction with it in 2003.
One of the main causes of our issues has been the inability of monetary policy to fulfill its goals and ambitions. I still stand by the reasons I put up in 2003, which was 19 years ago. BOG's decision to tie its policy rate to historical inflation is a self-fulfilling prophecy that will unavoidably have negative effects on both inflation and the cedi's value.
BOG attempted to maintain its policy rate above annual inflation by adopting this rigid approach to interest rates. The simple theory underlying finance says that investors will always need to be rewarded for inflation and that investors constantly consider in real interest rates when making choices, according to BOG's post replying to my worries in December 2021. The central bank's policy rate of 13.5 percent implies a real interest rate of 2.5 percent with an inflation rate of 11%. I find it surprising given their history of arguing against it that they are now content to maintain their policy rate at 27%, which is below the annual inflation rate of 40.4%.
It is remarkable that the BOG experts still do not get that year-over-year inflation is a historical phenomenon and that interest rates do not need to strive to make up for previous price fluctuations. According to me, the predicted inflation rate should be used to determine the policy rate after being adjusted for seasonality and other factors. Astute investors are concerned with expected inflation, much as how they evaluate shares for investments by comparing forward price-earnings (P/E) ratios to trailing P/E ratios.
The relationship between inflation, nominal interest rates, and real interest rates is known as the "Fisher effect," which also explains why interest rates tend to climb when predicted inflation is high and fall when projected inflation is low. The Fisher effect is named after Irving Fisher. Therefore, if the predicted real interest rate stays the same, a decrease in expected inflation should result in a corresponding decrease in the nominal interest rate.
It is disappointing that our experts have not recognized the absurdity of estimating the real interest rate by comparing the present interest rate to historical year-over-year inflation. A self-fulfilling prophecy that has only succeeded in importing past inflation into the future, plunged us into a vicious circle, and made Ghana a "high inflation-high interest rate" environment, one of the worst on the continent, has resulted from BOG's fixation of its policy rate based on this statistic, with no interest in recent month-to-month changes.
A affluent nation like the UK could successfully control inflation using high interest rates, but it is inappropriate for BOG to continue trying to do the same in Ghana. In the UK, the minimum wage is GBP9.50 per hour, or GBP76 for an eight-hour workday. The Ghanaian minimum wage, which is less than GBP1, is GHS14.88 per day. In the UK, a litre of gasoline typically costs GBP1.69, or 2.2% of the daily minimum wage. The average price of gasoline in Ghana is GHS16.5 per liter, or 122% of the daily minimum wage.
In terms of other essentials of existence, the relativities are comparable. Therefore, unlike in the UK, rising interest rates in Ghana will just drive up the cost of living without motivating the typical Ghanaian, who already struggles to make ends meet, to spend less and save more.
Due to the high interest rates, it was challenging for firms to borrow money to invest in the actual economic sectors and provide the desired value addition. It also prolonged our reliance on imports while making it challenging for local business owners to obtain money, make investments, and boost local economic ownership. As a result, BOG officials have unintentionally thwarted the economic reform that they had saw as the answer to our issues with the balance of payments imbalance and currency depreciation.
It is challenging to understand how raising policy rates will combat cost-driven inflation brought on by rising food or crude oil prices or higher taxes on petroleum items. Sadly, BOG nonetheless made sure that we endure suffocatingly high interest rates even during the height of the COVID-19 epidemic, when income levels had collapsed globally and stimulus packages were being deployed everywhere to promote economic activity.
While BOG's monetary strategy has been successful in sustaining a "high inflation - high interest rate" environment throughout the years, it has also produced the most lucrative banking industry in Africa, if not the whole globe, with terrible results for the cedi.
The GDP of the UK was around USD 2.7 trillion in 2019, which is almost 40 times Ghana's GDP of USD 72 billion. However, the Bank of England (BOE) lost GBP57,000,000 (USD76,000,000) in 2020/21 compared to GBP72,000,000 (USD96,000,000) in 2019/20. The profit for BOG, on the other hand, decreased from GHS1.8 billion (USD310 million) in 2019 to GHS1.57 billion (USD270 million) in 2020. As a result, BOG generated nearly 4 times than much profit as BOE. Incredible!
Our commercial banks have accrued vast profits over the years while the actual economy, especially manufacturing, has struggled.
The banking sector's performance, according to BOG, "defied the global economic slump with significant growth across key indicators, including total assets and deposits, as well as steady increase in profitability within the industry throughout the first half of 2022."
Additionally, "At the conclusion of the year, the sector's total assets climbed by 22.8 percent to GHS 200 billion, reflecting a gain of 17.2 percent over the previous year. Comparing June 2022 to June 2021, the domestic portion of total assets saw a higher growth rate of 23.5 percent.
They said, "...the faster expansion in the industry's assets at mid-year was principally supported by an increase in deposits and borrowings over the study period."
However, it is indisputable that all of these "growths" were fueled by high interest rates and signify a shift of assets from the banking sector to the government and real estate sectors.
The enormous parasitic profits made by BOG and the commercial banks have a significant negative impact on both the public and private sectors. They place a heavy weight on individuals who are not involved in the banking industry and thwart the realization of the essential structural transformation.
The failure of BOG's inflation targeting strategy can be attributed to the adoption of the incorrect inflation variable. When the BOE raised its prime rate in December 2021 from 0.1% to 0.25% in order to achieve a 2% inflation objective, the BOG raised its policy rate from 13.5% to 14.5% in order to achieve an 8% inflation target. Instead of its objective (expectation) of 8%, BOG's policy rate was more closely tied to the reported year-over-year (previous) inflation rate of 12.2%. Based on their odd interpretation of real interest rate, BOG tried to maintain a "positive real interest rate" by keeping their policy rate above year-over-year inflation.
It is noteworthy that while Zambia's inflation rate in November 2021 was 19.3%, the prime rate set by the Central Bank of Zambia in December 2021 was as low as 9%. Zambia saw an inflation rate of 9.7% in October 2022, compared to Ghana's 40.88% in the same month.
Our high rates of inflation and interest inevitably affect how the outside market perceives our prospects. We cannot project a high inflation risk view through our policy rate and then hope that the external financial markets would act differently. Therefore, BOG's strategy has lost us money on global financial markets as well.
Dr. Hippolyte Fofack, Chief Economist and Director of Research at Afreximbank, discussed the significance of this year's theme, "The Developing World in a Turbulent Global Financial Architecture," during a press conference on Friday, October 7, 2022 in Washington, DC: "Africa's total external debt is approximately $726 billion. With an estimated debt of roughly US$2.8 trillion, that is less than a third of Italy's total debt. Africa's total external debt is 27% of GDP when represented as a percentage, compared to 130% in Europe. However, huge spreads and default-driven borrowing rates applied to African sovereign and corporate entities put them at greater danger of debt trouble than their European counterparts.
Therefore, BOG is unable to defend the absurdly high monetary policy rates that have weighed down our economy for more than 20 years. Along with increasing the money supply over time, which fueled price hikes, it also weakened the cedi. Contrary to their assertions, we are unable to employ "higher interest rates to ensure exchange rate stability," particularly in light of their failure to safeguard the cedi as Ghana's sole legal currency. We have not and will not be able to "keep exchange currency stability" with high interest rates. The reverse is revealed by parity laws.
The value of a GHS1 was equal to one USD on November 1, 2007. GHS1 invested in the 91-day treasury bill of the Ghanaian government on that day and carried over for 15 years would increase to around GHS12 on that day.
31st October 2022. Coincidentally, GHS13 was around the price of 1 USD on October 31, 2022! This enormous return on the cedi has undoubtedly fueled inflation and contributed to the devaluation of the cedi.
As I mentioned, the inflation rate in October 2022 was 40.4%. Additionally, the dollar increased by 141%, from an average of GHS6 in October 2021 to GHS14.47, representing a 58.53% decline in the value of the cedi.
Most crucially, it must be understood that efforts to eliminate the "structural bottlenecks" that BOG frequently alludes to would be hampered by the high monetary policy rates. Instead, they have prevented the development of a financial market that makes it possible for companies to get loan money for development and growth. They have increased our reliance on imports, exacerbated the economy's supply issues, and raised the cost of capital.
We are stuck in a vicious cycle of high inflation and high interest rates now because we are using the same, growth-stifling demand-side solution to the inflation problem.
The fact that we still borrow money from other countries to pay for the purchase of cocoa after more than a century of production is sufficient proof that our banking system has failed the main sectors of our economy. The root of the issue has been the Bank of Ghana.
Corporate welfare and the private sector
In order to lessen the load on government, lower the national debt, and minimize public sector corruption, we have failed to really foster private initiative and to provide the circumstances for everyone to participate in the growth process.
The little private sector support programs that exist have been politicized. Instead of being directed toward economic sectors that require assistance to become internationally competitive, tax waivers, duty exemptions, and other incentives have turned into a luxury reserved for devoted party loyalists.
Excellent efforts and ideas have not been backed just for selfish or political motives. Genuine entrepreneurs will perish as a result of crony capitalism, which ensures the satisfaction of a select few at the expense of the majority's unhappiness, anguish, and suffering.
The chosen short-term political response to the unemployment issue has been retentive, poorly thought-out programs like NABCO. But since they, as we all know, don't provide genuine jobs, they can't offer long-term answers to the issue of young unemployment.
faulty institutions
The virtual bastardization of many of our institutions is the cause of many of the aforementioned problems and difficulties. For instance, the court has a reputation for being politicized, which has bred mistrust, while parliament has been incredibly unproductive. These have aided in the development of a volatile and disorganized political climate.
Many people no longer believe that the courts will uphold justice when rights are violated. Freedom and justice were threatened at the same time that Parliament was powerless and ineffective, completely disgracing our democracy.
Many of our other institutions have also failed us due to their diminished strength as a result of losing their independence, which has had negative effects on the advancement of the country. In addition to the Council of State, the Electoral Commission, National Media Commission, Public Services Commission, Commission on Human Rights and Administrative Justice, National Commission on Civic Education, Lands Commission, and even the police, military, and chieftaincy, all of these institutions have become politicized.
Rigoberta Mench, the winner of the Nobel Peace Prize, said the following, which is quite instructive: "Without effective watchdog mechanisms, impunity becomes the basic cornerstone on which systems of corruption are constructed. Additionally, if impunity is not eliminated, all attempts to combat corruption would be in futile.
The President's authority under the 1992 Constitution
Our constitution has outlived its usefulness, is to blame for our institutions' fragility, and has been a significant development roadblock. Many of its provisions seem to originate from another time period or to have been motivated by factors other than democratic or development goals.
For instance, the President's overwhelming powers and the indemnification provision that guarantees he cannot be held accountable have fostered careless misuse of authority and are the main causes of corruption in our nation.
Our President selects individuals to hundreds of jobs and effectively has the power to fire them at anytime. It is the fundamental cause of the politicization and fragility of many of our institutions.
Galamsey
There is no question in my view that our decision to use religion and prayer rather than the law to stop the huge environmental harm being caused by unchecked small-scale miners has had a detrimental impact on our nation generally and its economy specifically.
It is astounding that we can watch as a few individuals damage our agricultural land and water bodies while we remain passive spectators at a time when environmental sustainability and concerns about climate change have dominated conversations at practically every level of global policy dialogue. Any other nation that would put up with that degree of environmental deterioration is difficult to envision.
Burning a few excavators to demonstrate support for the battle against Galamsey was not only irresponsible from an environmental standpoint, but also ridiculous and wasteful.
Values, beliefs, and attitudes
Our attitudes, beliefs, and value system have contributed significantly to the issue. They have let our people to live in underdevelopment, poverty, and reliance, as is the situation in practically every country that is predominantly black, from Haiti, the poorest nation in the Western Hemisphere, to the Horn of Africa.
Religious ideas that are equally awful, if not worse, than harmful conventional beliefs appear to have taken their place. According to a survey, the poorest 20 nations, largely in Africa, are fervent believers whereas the richest 25 nations are often atheists.
beliefs, values, and attitudes
A significant portion of the issue has been caused by our attitudes, beliefs, and value system. As is the situation in nearly every country that is predominantly black, from Haiti, the poorest in the Western Hemisphere, to the Horn of Africa, they have let underdevelopment, poverty, and reliance to become the lot of our people.
It appears that we have substituted lousy religious beliefs for awful conventional ideas, if not worse. A study revealed that although the poorest 20 nations, largely in Africa, are strong believers, the richest 25 nations are often non-believers.
We sit back and let a select few individuals fumble with our life and treat us with disdain because of our attitudes and views as well. We observe how our leaders celebrate mediocrity while heaping praise on themselves.
threats to world harmony, stability, and peace
All of the aforementioned pose ongoing dangers to our harmony, stability, and peace. They have harmed our view and our capacity to reach our full potential, which is in part to blame for the fact that, despite more than 30 years of comparatively peaceful living in a violent West African area, we have not yet reaped the benefits.
Because of perceptions of injustice and uneven access to opportunity, many of which are founded in politics, our current economic crisis is now breeding more mistrust and suspicion among our people and resulting in a volatile socio-politico-economic environment. These have further detrimental effects on our progress, peace, stability, and unity.
The adage "money does not like noise" is accurate. But we must also recognize that cronyism, lawlessness, corruption, and contentious politics all contribute to the chaos that scares away investors.
We can change things.
I've always maintained that God does not want people to live in poverty. In order to maximize the welfare and happiness of every Ghanaian and prevent the youth from setting off on perilous travels over dangerous oceans and deserts in quest of greener pastures, we can turn our fortunes around and create a paradise out of our modest nation.
Everything you need is right here. We can do this if we have a strong, compelling vision supported by careful preparation, diligence, integrity, and sincere support for the private sector.
It would require leadership that acknowledges the need, inspires collaboration, and supports innovation. More of the same will not yield new outcomes. In order to properly mobilize and utilize the resources we have, we must think back on how we have done things in the past.
It would require leadership that values the truth, abhors division, and acknowledges that we have had enough of politics and that it is time to put an emphasis on development and the things that bring us together. It would also require leadership that prioritizes the national interest over the interests of individuals and political parties and that unites the nation to face development challenges as a single people with a shared destiny.
Leadership must push for the abolition of this violently supported and greed-inspired democracy that frequently restricts people's freedom of choice. General Acheampong, a former president of Ghana, remarked, "I can go today, and the SMC Government can leave, but the issues of the country would still exist, unless the people as a whole shift from their selfishness, avarice, and other social sins that torment us."
Recognizing that corruption impedes growth, we must all make a commitment to eradicating it. The finest place for corruption to flourish is in people's apathy, according to Delia Ferreira, Chair of Transparency International.
Still, it would call for strong leadership that upholds accountability and openness in our institutions. Everything should be public at this time, including the national security expenditure that is allegedly a means of siphoning off public cash. I would rather that we follow strict procedures and obtain value for our money in every transaction. In my opinion, integrity, openness, and the battle against corruption must be ingrained in society's culture, as stated by Angel Gurra, Secretary General of the OECD. They have to be instilled as essential principles.
We also need a fiscal policy that promotes development, supported by a monetary policy that encourages growth and is proactive and complementary. We also need to realize that slogans do not lead to progress.
However, it would require strong leadership that demands responsibility and openness in our institutions. We have reached a stage where nothing should be kept a secret, not even the amount we spend on national security, which is thought to be a way to steal public money. I would like that all of our transactions go through meticulous procedures and yield value for money. According to OECD Secretary General Angel Gurra, "Integrity, openness, and the fight against corruption must be part of the culture. As essential values, they must be taught.
Additionally, we require a fiscal policy that promotes development, supported by a proactive and complementary monetary policy that encourages growth, and we must acknowledge that catchphrases alone do not lead to progress.
However, it is true to state that eventually, it is up to us, the people, to decide how our democracy will turn out and how we will evolve. We must thus alter our perspectives, avoid complacency, and put in significant effort.
We must, however, respond appropriately to the present debt issue in the short term. The planned unilateral domestic debt exchange is the incorrect course of action that will damage our nation's reputation, undo the gains we have made in the expansion of our capital market, particularly the debt market, and set us back several years.
As an alternative, the government might swiftly choose the following, and then predict revenues and expenses in accordance, to serve as the foundation of a new debt negotiating strategy:
application of the most stringent controls required to control corruption
Tax increases on businesses, properties, and people with high incomes
taxation of revenue from investments in domestic government bonds and bills that are not taxable
immediate reinstatement of road tolls at rates far higher than in the past suspension of new capital projects that are not needed
suspension of financing for projects like the National Cathedral that are not necessary and are not productive
Implementation of further cost-cutting measures, including those that will have an impact on the number of political appointments, public sector employee allowances, international travel, foreign travel scholarships, car purchases, and end-of-service perks.
Major state-owned companies (SOEs) should freeze non-essential capital spending and increase their dividend payments to the government.
Support for infrastructure initiatives involving the private sector and the sale of governmental assets that are not strategically important.
The risks we faced were obvious, and if we hadn't been living in denial, these actions might have been taken at least a year ago. All things considered, our current circumstance is the result of our earlier decisions and inactions, especially our long-term indifference to corruption. The decisions we make at this pivotal point in our history will have an impact on the future. We must all work together to overcome every barrier to our prosperity in order to combat poverty.