• The others train you to forecast, but our scholars train you to forecast accurately in the capital market

There is too much gobbling out there on the issue of power crises, as if the whole economic crises of Ghana have now finally been reduced to power supply problems. We all need to understand power challenge may seem to be severe than the other crises for now, but it is just one of the numerous economic problems of Ghana.

This paper seeks to define the problem clearly with appropriate economic intervention than politician ad hoc measures in addressing them.

To demand accountability calls for having the right information about situations, which equally guide you with appropriate action to take as a business community, such is the role the paper seek to play to arm the business community with knowledge to act scientifically.

It should be noted that a true work of an economist has been to answer important questions about how people, industries and countries can maximize their productivity, create wealth and maintain financial stability which is independent on the type of Economic school of thought one belong.

The existence of many economic theories from the two main stream of political-economic practice as the Capitalism and the socialism are all geared towards such effort with Adam Smith as the founding pillar of the Classical capitalism while Karl Max as the Conner stone of classical socialism.

Since from 1990s, economic history of Ghana indicates that, the crises pattern has been the same till date. Sometimes the factors may seem to be in a solving situation, and then suddenly will escalate again.

The causes has always been as follow
High inflation rate that is negative to business growth

Unemployment
Pressure on the Ghana Cedi.
Till recently power crises joined the race
I focused on these as major factors because they have a direct impact to the success or failure of businesses in Ghana.

INFLATION
It is a sustained increase in general level of price for goods and service. It should also be noted, inflation is not necessarily bad for an economy, it is sometime an indication that the economy is expanding but for the case in Ghana, it emergence has reflected negatively at all time because it always seems to emerge to the surprise of the Bank of Ghana as assumed to be part of market shocks. The present status of inflation in Ghana could be termed as “STAGINFLATION” implying economic stagnation with inflation.

CAUSES OF STAGINFLATION IN GHANA
“Dating back to 1990s the fiscal deficit of Ghana rise in an average of 6.4%”, editor (2009) The Economist Intelligence Unit, Which is realised that the root cause is from unwise infrastructural spending, coupled with expensive public-sector wages settlement and Election related spending.

The second cause of present inflation is defined as “Cost-Push Formula” whereby companies who are active market players have to increase prices to maintain profit due to the cost go up of Ghana system.

According to Bank of Ghana report, the objective of the monetary policy is to ensure price stability-low inflation. Further conclude that price stability is defined by Government Inflation target, with their definition for medium term inflation target to be 8±2 %

According to the Economic Intelligence Unit report define Bank of Ghana to mostly play the role of containing inflation and boosting economic growth through encouraging increase lending to private sector.

These two cited sources is to support the argument projected by this paper that “CONTROL” as a word and “CONTAINED” as another word mean different things. So if we will agree to what the distinguished economist define BOG through the Publication “Economic Intelligence” then you will logically accept that the emergence of Ghanaian economic crises has not been the failure of the economic profession but political approach in addressing economic situations in Ghana.

UNEMPLOYMENT
There is no way sound employment opportunities will exist when the business market is govern with questionable policies and bad economic environment to grow coupled with the factors of unpreparedness of the graduate labour forces to the job market. This and more of such fact could be ascertained from my previous research papers, on these bases will not espouse much on such issues. Such references are cited below for easily follow up if you deem it necessary.

Senzu (2015), Ghana Job Market Need More of Intrapreneurs than Entrepreneurs BGI: Modern Ghana On-line

Senzu (2015), SMEs Market Malfunctioning, Potential threat to Ghana’s Economy BGI; Modern Ghana On-line

POWER CRISES
I will furthermore indicate my appreciation to fellow scholars who are energy expert and are presenting their research papers and analysis on the present state of Ghana power crises to enlighten the masses. The question raised now; is the country suffering from power outage because of capacity to generate power or the financial difficulty to purchase fuel needed to generate power for businesses. The debate has been very clear; it has to do with the financial capacity of the government to buy fuel. On this bases, think it call for public debate by expert in such areas to sensitize the masses of the economic reality than political propaganda dominating our media waves every morning.

PRESSURE ON THE GHANA CEDIES
I am not surprise that we wake up one morning and a colleague expert from Yale University dominate our air waves to recommend to us the best alternative way to address the pressure on the value of our cedi; as if we have no economist in Ghana who knows the problem of Ghanaians. Furthermore intellectually proposed that the cedi of Ghana has depreciated 99.99% since it adoption and usage and propose, will be appropriate a country Ghana should adopt the use of the US dollars.

Instead of the media allowing sound intellectual debate on such economic fallacy made, chose to resort to political propaganda on the currency issues for a whole week ignoring the actual fact; replacing it with political biases to educate the masses. I challenge him as a fellow to be on the Platform of Bastiat Ghana for a public debate of such intellectual preposition he made and I will prove to him logically that, his intellectual input was politically motivated and the scholastic evaluation is econometrically incorrect.

CAUSES OF THE PRESSURE ON THE CEDI
If the pressure of the Ghana cedies in it exchange rate value could be addressed effectively, then the large fiscal and current- account deficits at the macro level should be addressed with sound economic policy than political methods used presently.

The following are my proposal
Create enabling and attractive environment to strengthen Ghana export base level.

The Government of Ghana; it does not matter socialist ideology it project it economic policy on, should adopt market based economy to increase remittance. That was the secrete success of formal President Kuffuor governance and the benefit to the people of this country through his numerous travelling which was seen by the lay man as wasting national resources for travelling. And the solution lies in creating the environment to bring more Ghanaians in the Diasporas who are estimated to form about 15% of the total population of Ghana to send money home in a form of investment to finance the local business is a major role to stabilize and strengthen the cedi value.

That is the only difference between the NPP Economy and the NDC economy now. The remittance is very low because of lack of trust in the present economic direction leading to higher current-deficits at the macro level as a result brought in such political ad hoc measure to freeze business executives foreign account transactions in Ghana and avoiding the domestic transaction of the US dollars was quiet funny but appreciate when they realise the short fall of such policy and amended it.

However such opportunity of Diaspora funding support is going to individual prominent and influential business men and women in Ghana while Government of Ghana is seen now as a machinery of misapplication and misuse of funds which could not be trusted with investment. But only to depend solely on foreign donors who donate on Political opportunity to explore.

And until such negative brand correction is done, the hope for economic advancement now in Ghana could not be trusted on logic any where now, but on the bases of faith.

The Next Paper Volume will define the clear structure of the trade and Industry in Ghana and it economic significant. It could be, you already have information on some of them but will actually focus on logical connectivity effect and economic analysis.

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