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Opinions of Tuesday, 9 June 2015

Columnist: Osei, Boatemaa

Socio-economic Transformation: CPP Leadership I

Ghana is politically, economically and socially at its lowest ebb. We urgently need propellers of economic and social transformation. These propellers needed are in two forms, human resource and structural systems of order. In human resource, we particularly and critically need nationalist political leadership. Regarding structural systems of order, we need application of scientific and technological programs and projects. This will efficiently and effectively modernize our culture.



The current socio-economic and cultural environment is scientifically unreliable for any systemic order of planning. This situation has been largely caused by both omission and commission of incompetent leadership. Good leadership is in two parts. The first is the personal quality of general integrity. The second is in the substance of ideological orientation, plan, policy and program with which to apply the personal quality of integrity.



National development is rooted in a nation's culture. Socio – economic transformation therefore is not geared towards total abandonment of national culture for another. Rather, it is the application of scientific and technological systems to effectively and efficiently modernize culture. Culture is based on truth. Otherwise it does not endure the test of time. Truth is of unconditional permanence. Culture therefore endures elasticity. The core objective is therefore constant.



Socio-economic transformation is hinged on particular core sectors. These include the cyclical motion of planning, agriculture, manufacturing, transportation, services, security and taxation. Planning is the bedrock of all developments. Effective and efficient implementation of planning is rooted on a reliable scientific and technological database. We currently have a 'scattered' database. Technology is available. What is lacking is the ability and willingness of national leadership to harness technology to scientifically synchronize a reliable national database.



A progressive, reliable, efficient and effective, national database must be versatile on delivering its core essence. Its dynamism must capture the whole population including Ghanaians abroad and foreigners within, from birth through all national endeavors till death. This is imperative for efficient and effective national planning and security. Strategic distribution of national investment will be greatly and appropriately enhanced. A reliable national database in itself is not the panacea to our challenges, but the first major step towards the national development equation.



For example, the current great challenge of land tenure system and development will be good beneficiary of such a reliable national database. We could easily eliminate the current frustrating system where land and real estate developers are way ahead of service providers; water, electricity, roads, internet and other amenities. Also, distribution of infrastructural development relative to both inter and intra sectors will be greatly boosted in time value.



Another great value of a reliable national database will be its immeasurable effect on the taxation system. As the tax regime currently stands, it is virtually impossible to capture the greater bracket of the informal sector into the taxation system. With a reliable national database, we must subsequently proceed to fundamentally overhaul the current system of taxation. Taxation is the major, if not the chief source of governmental revenue. Government currently receives much lower quantum of tax resource than its real potential. This woefully inadequate tax revenue coupled with lack of creativity has greatly contributed to the hemorrhage of borrowing, leading to a crater of national debt baggage.



An example of a good tax regime is what my adopted uncle, Big Jai of Bywel Fame calls the Makola Tax System. It is a simplified but very effective and efficient tax system upon a reliable national database. Taxes here are deducted at source. It legally requires every citizen to have a bank accounts for general financial transaction, particularly wages and salaries. A flat rate is then fixed by the acturals of Ghana Revenue Authority, say at 10%. Subsequently, movement of cash from every accounts is levied 10% at source. By same legislation, every bank must have a Ghana Revenue Authority (GRE) desk.



Same can go for import duty tax. With exception of essential goods, all imported stuff can be slapped