Ghana- A tale of the absurd part 2 ~ iNewsGh

Tuesday, 21 February 2012

Ghana- A tale of the absurd part 2


One may ask why this situation persists despite the quality of personnel in terms of erudition that have acted in several capacities of leadership as far as the need for the advancement of our socioeconomic progress is and has been concerned. I want to believe a possible cause of this could be due to the issue of intellectual dishonesty on the part of our technocrats in their bid to please their political heads. In other cases, they might easily acquiesce to the demands of these political leaders at the expense of their intellectually informed positions. The second and most profound possible cause of the continued disarticulation of our economy could be the ease with which our governments seem to have bought into the capitalist tool of the so called “private sector as the engine of growth.”
It is easy to assert that, the back bone of the very successful Western Enterprises has been their governments. Going back to the beginning of the world economic system as we know it today, one would have realized that, the quests for the discovery of the new territories such as Africa by explorers and merchants, with subsequent exploitation that has so developed the Western World was funded by their governments or the sort of leadership they had at the time. A classic example of such an obvious and colossal direct government support for the private sector in current times has been the bail out of a number of giant Western private establishments during the recent recession. Another very important exemplar of state support for the establishment of a strong economic system through direct support for indigenous private enterprise has been the case of Toyota in Japan (www.lotsofessays.com/viewpaper/1691093). What prevents the Ghanaian government from making Mechanical Lloyd the Toyota of the West African sub region; rather than watching it remain in the mediocre state of a mere assembling or worst still servicing and repair plant?
It is therefore sad to see our governments trying so hard to distant themselves from the area of production- an indispensable prerequisite for any economy which will make any meaningful progress in terms of enhancing a better socioeconomic formation in its entirety. Government may not necessarily be expected to participate in production per state enterprises and all, but what prevents us from aggressively supporting worthwhile and time tested indigenous ventures in this direction? We encourage a private sector which is nonexistent in this country- at least indigenously. We have in no way empowered any indigenous enterprise in this land to create a huge capital base that will support that call for private sector participation which will drive our economy. It is for this reason that we find our leaders running around the globe to solicit for investors.
The foreign investors, knowing from their feasibility studies the incoherent nature of our economic system will engage in ventures that will fall in line with the colonialist mode of exploitation; that is, the quest for our natural resources such as Minerals, Timber, etc. It therefore comes as no surprise to see most of the giant foreign entities involved mostly in these areas of our economy. The consequences being that, these expatriate firms exploit our resources and repatriate almost all the profits that accrue thereof.  There has been no evidence in modern times of government intervention in this process of capital repatriation from our land; hence areas like Obuasi, Akwatia and other towns of their sort and surrounding villages remain as decrepit as they are. Were some or most of these firms indigenous or with a lot of government inputs, most of their outputs would have remained and reinvested in the country, thus setting up other forms of productive enterprises that will open up the now underdeveloped areas of our land that remain a paradox when compared to the enclaves of development in this country, where most of the fortunate citizens have found refuge; leaving the others at the mercy of the poverty and paucity of social amenities and  the lack of other features of social development that characterize those areas.
Another frenzied reference to investment by our governments lately has been the bubble of the service sector. These include cellular communication networks and financial service providers which are almost all foreign owned with very negligible or non- existent indigenous stakes. These firms, almost always very prominent in the major cities, employ a small portion of the populace- as usual, mostly those living in the comparatively developed areas, areas where those who can afford their services are located. They make huge sums from the generality of the populace and give close to nothing back in terms of reinvestment. This relationship is necessarily very exploitative in every sense with respect to our need to open up the various areas of our land to economic development.
It is until local enterprises are strengthened through the intervention of government to build a strong capital base that will not be taken elsewhere, that we will be able to establish a situation where capital will be readily available for regions like the Northern, Ashanti and other regions to specialize in Agriculture on a worthwhile scale so that other regions with a strong industrial base will supply the Agricultural sectors with manufactured goods. But for the exploitative mentality due to which our resources are shipped across the oceans day in and day out, would we now be having our oil rigs in the Western Region while having a refinery located far off in 



WATCH FOR THE PART 3 AND THE CONCLUDING PART NEXT WEEK

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