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NPP, Neo-Colonialism And Corrupt Leadership In High Places!!

Comment: AN ECONOMICS LESSON FOR LANTEY

Author:
SARAH HAGAN
Date:
2007-03-04 19:41:59
Comment to:
well said


Guys, if we reduce trade barriers, specialise and trade, we will make a positive step towards development. It is therefore important that we learn what we can produce and sell cheaper to foreigners and what foreigners can produce and sell to us cheaper than we can produce in Ghana. We must not be a jack of all trades.

We made mistakes in the 1950s and 1960s, keeping foreigners out and protecting local industries from foreign competition in the form of trade barriers. The result was that our protected industries failed big time.

If goods from Ivory Coast, China and other places don’t come into Ghana, our industries will become lazy and fall behind the rest of the world in both technological improvement and growth. If imports from America or China become expensive and unavailable, the costs of production in some of our important industries will rise. Facing rising costs of production, our industries will use old and inefficient technologies and produce goods that few of us want. Our exports will then fall dramatically and Kuffour will have to subside these failing local industries in order to stay running.

Kuffour will pay for these subsidies by taxing you and me, or by borrowing from IMF. The Bank of Ghana may print money to pay off the resulting debts, and this can lead to prices of goods increasing, all of us having reduced confidence in the economy and less investment. Or, we can default on the loan, leading to general hardships.

So, Kuffour should not try to protect local industries from foreign competition or by subsidizing them.

Kuffour should decentralize ownership and management of resources and other assets. He should also create an effective, transparent and accountable legal framework that mixes respect for private property and the rule of law. The outcome will encourage entrepreneurship and innovation, empowering us with information and skills to compete than dodge, duck and go scared in the face of foreign competition.

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03-04 15:29
 
 
 
 
 
 
 
AN ECONOMICS LESSON FOR LANTEY
SARAH HAGAN
03-04 19:41