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Opinions of Thursday, 17 September 2015

Columnist: Tweneboah Senzu

Don't label my opinion on the state of Ghana’s economy as political

Opinion Opinion

This response is presented in a written form base on recent threat and attack on my phone by unknown mobile numbers hoping to be a faithful political party extremist in Ghana

My argument on Ghana to have attained the status of Highly indebted Country (HIC), could have been avoided, if the economic managers of Ghana would have listen to all kind of scholastic advice circulating from 2014-2015.

My argument was based on the following assertions

Expenditure in Infrastructures could have come a little in low tone, than presently; through a clear rigorous design of economic preferential scale taking into consideration expenditures on infrastructures within short and medium term goals for the project to have the ability to pay itself in the same manner within short and medium term investment return, to avoid the situation whereby every infrastructures invite a Euro-bond to service expenditure resulting in luring all the citizens to be tagged with debt under the consent of the few is very unfair to us as citizens

Our present economic direction of building our infrastructures with huge sums of loans being a debt tag on the people resulting in inappropriate functioning of our economic market at micro-level will make the same potential customers targeted to patronize in the invested project, will be redundant to do so, due to lack of resource capacity, that will question the project viability in economic sense.

Our economic managers will also agree that to utilize resource to achieve productivity is the business of management thinking but to utilize resource efficiently for productivity then becomes the thinking of economist.

So my suggesting was our economic managers are doing more of “management” business than “economic” business on matters relating to the state affairs, because the waste in the system is keeping too long to be converted to productivity.

As an economist, we all agree that the kind of euro-bond attractiveness to the domestic investment depends on the trust of investors in your proposal based on solid equity brand established out there. So to shake the image of Ghana into the grassroots of mediocrity which reflect on every citizen now per the HIC-status and on top of it this judicial corruption gives us the room to get more worried. Because research established clearly the correlation of quality judicial and a sound economic growth resulting in attracting quality investment support either by government or domestic private business executives.

For government to continually increasing it domestic debt which it presently stands at 200 million cedies between May and June, but lacking environment for domestic business to thrive which will give a way for savings to build the domestic capital market will only result in Banks losing their asset with time on a sound economic analysis.

This is not a matter of government telling us there is no cause for alarm per document presented to me by TV-3; this equally indicate a continually promoting of pseudo-economic agenda to the citizens who voted them to power to serve us than the other way round in silence of pain.