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

A century ago, wealth creation of a nation was highly dependent on land, labour, capital and machines. This became the fundamental guide to economics study by discovering how to combine the resources in the right proportion at the right time by entrepreneur or government to maximize profit.

Now the primary source of creating wealth has shifted from all the above-listed resource to knowledge, information, and ideas.

The government like any other company or people grow old. They start life small and eager to survive, fueled by youthful energy and fresh ideas. They compete, expand and eventually with few exceptions, fade out if they lose the hunger and ambition of youth and allow themselves to become complacent.

This age of rapid change of information, those who lag behind become irrelevant. By statistics, only 11% of the fortune 500 companies from 1955 still exist today. While the average time that companies stay in the top 500 has fallen from 75years to 15 years. Countries whose government grow old face the same fate as outdated companies.

The race for the national competition is every bit as fierce as the competition among companies in the marketplace. Countries compete for Investment, talent, growth, and opportunity in a globalized world, those that are pushed out of the running; surrender the greatest prize of all in human development, prosperity, and happiness for their people.

The lifecycle of companies should teach government that, the secret of eternal youth is constant innovation-seizing opportunities and behaving like the dynamic, entrepreneurial companies that defining today’s world and shaping its future.

“The Key to corporate, rejuvenation, civilization, evolution and human development is simple; Innovation. I am always amazed when the government thinks they are an exception to this rule. Innovation in government is not an intellectual luxury, a topic confined to seminar and panel discussion or a matter of administrative reforms, It is the recipe for human survival and development, the fuel for constant progress, the blueprint for a country’s rise” according to Sheikh Mohammed Bin Rashid Al Maktoum (2015), the Prime Minister of United Arab Emirate and the Ruler of Dubai.

The first key business-like innovation in government is a focus on skills, upgrading skills and nurturing innovation among their own employees, across a key sector of the economy and at the foundations of the education system.

Government that fails to equip new generations with the skills needed to become leaders for their time are condemning them to be led by more innovative societies

A US-Department of labour study report depicts that 65% of children currently in primary school will grow up to work in the jobs that do not exist today. While Oxford University study report indicates that 47% of job categories are at a high risk of ceasing to exist because they cannot be automated through technology.

Considering the resource available in the country like Ghana does not depict accurately the right economic status of the state. The present economic status is a disappointment to the very reason that drives our forefathers to attain independence.

Ghana poverty level is pegged at 24.2% (GSS, 2010). Analyzing the report of Ghana Statistical service; western region forming part of the 10 regions of Ghana since from 2006 to 2010 had a rise in poverty level by 0.6%, Central region was 0.5%, Volta region was 3.4%, Eastern region was 1.8% and finally Brong Ahafo region rose to 1.6%. The other regions were not considered because the figures projected were considered by this paper to be negligible and therefore consider it as a positive impact.

The state-owned companies employment rate was 1.9%, Private owned companies employment rate was 3.5%, self-employed business stoop up to 10.1%. Which depict that there was about 11.7% employment gab as a credit performance to Private against Government Sector within the period of 4years from 2006 and 2010 report from Ghana Statistical Service.

Evaluating the statistical report comparative to Infrastructure Investment Government of Ghana made in the same period and measure the economic return and it positive impact, it easy to logically conclude that, to transform government to become engine of innovation is to shift the balance of investment towards intangibles, as in the private sector, whereas more than 80% of the value of companies consisted of tangible assets 40years ago. Today the ratio is reversed more than 80% of the largest companies’ value is intangible, in a form of knowledge and skills of their employees. The Intellectual property embedded in their products.

Government too should think strategically about shifting their spending away from tangible infrastructures like roads and buildings and towards intangibles like education and research & development because a small piece of information at the right time and in the right place can enable one to make an extraordinary difference in a particular situation.

When a culture of creativity takes root, people feel inspired to run further with their ideas, to aim higher with their ambitions and to pursue bigger dreams.

On these bases, I, therefore, disagree with the Hon. Ministers of Ghana in his 2015 National Budget Report, Article 27 which state “In order to ensure that the medium-term growth targets are met, there is the need to pay priority attention to pipeline infrastructure investment”. There is no statistics that could prove that Government Increase in the Investment of Infrastructural reforms has benefited the development of Ghana’s economy. It has always crippled the Economy with Debt that has exponential interest accumulation against sound economic development.

I, therefore, recommend a shift of Government of Ghana Investment to the Knowledge economy to assist the Private sector to undertake such structural reformation on behalf of the government to avoid debt creation however government extend it effort to enact quality policy to regulate private sector commitment to infrastructural development to support their business growth. Then and only could Ghana attain positive economic report and become a self-reliance nation

Tweneboah Senzu, Ph.D.
Bastiat Ghana Institute
(Market Economics Think Tank)
director@bastiatghana.or
BGI-Scholastic Paper, Vol. 99

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