By Francis OWUSU-ACHAMPONG ( FCIB )
In a lively democracy, one of its strongest features is the ability to voice differing perspectives as part of the journey towards progress.
Mr Afenyo Markin has garnered the admiration of numerous individuals, including some from the governing party and other politically impartial watchers.
Nevertheless, his latest proposal for a new parliamentary edifice along with a specialized hospital exclusively for lawmakers has ignited significant debate, even amongst those who back him.
Given my profound admiration for the esteemed Member of Parliament, I find myself in disagreement with this specific recommendation. Amidst these crucial times, numerous individuals, including myself, perceive this proposition as an unwise distribution of focus, particularly when taking into account our country’s present financial challenges.
It is crucial to keep in mind that the election outcomes showing 57% and 38% support respectively highlight the difficulties ahead. Proposing such a costly project appears disconnected from the everyday realities faced by numerous Ghanaians, thus provoking criticism from those who had previously supported him.
Take, for example, Bortianor, a suburb of Accra, where schoolchildren still risk their lives crossing rivers in rickety canoes just to attend school.
Tragically, there have been fatalities. Elsewhere, many children are forced to write their stomach in overcrowded, dusty and\xa0 dilapidated classrooms.
The appalling state of our roads contributes to an alarming number of avoidable accidents. In major cities, even basic road markings, which could ease traffic flow, are often non-existent.
Why not instead channel resources into improving existing facilities such as Korle Bu, the University of Ghana Medical Centre, the 37 Military Hospital, Komfo Anokye Teaching Hospital, and the Winneba Accident and Trauma Centre?
With strategic investments, these hospitals could become centres of medical excellence and potentially even a hub for medical tourism, boosting national revenue.
A student of economics would swiftly highlight that the concept of scarcity necessitates difficult decisions. The genuine issue at hand is determining if the resources earmarked for constructing a new parliamentary chamber are being utilized effectively, taking into account the broader requirements of society as a whole.
For instance, couldn’t some of this funding be directed towards enhancing transport infrastructure in remote regions—such as increasing the number of ferries on the Afram Plains or modernizing the Volta Lake Transport Company? The railway network continues to lag behind, and large cargo items are frequently moved along roadways ill-equipped to manage such burdens effectively.
I believe the NPP is still reeling (bleeding?) from the same miscalculation that birthed the construction of the controversial Cathedral project. No wonder, the opposition capitalised on this to convince the electorate to boot out the NPP among other reasons.
It's essential to consider previous mistakes, like the contentious cathedral initiative. Supporting this project was seen by numerous people as the NPP favoring the demands of the upper class, a perception the party needs to address and move away from.
This could further fuel the perception that the NPP is insensitive to the struggles of the everyday Ghanaian, a narrative that is easily exploited by the opposition.
The party needs to ensure they do not recreate the social and economic disparities observed in certain nations, where the wealthy thrive while most people remain marginalized. Regardless of whether a legislator opts for local or international medical treatment, death remains inevitable—its arrival is unaffected by location.
Let us focus on more visionary leadership, like that of Governor Gordon Guggisberg and Dr. Kwame Nkrumah, who always prioritized the welfare of the majority over the few.
This country should be careful not to replicate the socio-economic inequities that make South African society rich but less inclusive and notoriously crime laden.
Let us hope for more leaders who think like Governor Gordon Guggisberg and Dr. Kwame Nkrumah of blessed memory who thought about the greater good of the majority.
Fiscal and monetary policy inconsistency?
After the NDC successfully convinced the electorate that the previous government’s fiscal policies were reckless, one is left wondering what new measures the current administration will introduce to correct these imbalances and stimulate economic growth.
We await the implementation of pledges to eliminate specific taxes, especially considering their impact on decreasing governmental debt levels.
Although these tax cuts might appear attractive, one must wonder about the government’s strategy for sustaining public finance, particularly with diminished income sources. Could utility charges and tariffs go up despite previous election pledges? And would the populace embrace such hikes without protest?
As it stands, nearly every tax handle\xa0 is slated for modification, leading to a promise of cancellation or reduction, while new spending initiatives like the expansion of FSHS for private schools and free tuition fees for first year undergraduates\xa0 are promised to fulfill political commitments.
There is an opportunity to reassess tax exemptions, most of which have not produced the anticipated advantages. However, the genuine difficulty lies in figuring out how the government can fund these additional expenses without intensifying the country’s financial troubles.
At the same time, local production expenses remain an obstacle to progress, especially within the food industry, which encounters substantial hurdles on the supply side.
The central bank has recognized that inflation stems from excessive liquidity fueling demand, which necessitates an approach focused on inflation targeting. However, when monetary policy seeks to curb inflation by raising interest rates, the banking industry could encounter difficulties adapting to these shifts, particularly due to increasing non-performing loans and inadequate processes for recovering debts.
From the perspective of the central bank, inflation targeting should be executed resolutely to eliminate excessive demand through setting an MPC interest rate that currently exceeds the 91-day treasury bill rate.
Given a government committed to decreasing its borrowing needs by lowering interest rates, one might anticipate that commercial banks would increase their lending activities, all else being equal, in an effort to compensate for the anticipated decline in income from the lower returns on the financial products they typically invest in.
Credit expansion doesn’t occur in isolation; issues like the risk of non-performing loans and the cumbersome, costly legal procedures for debt recovery remain unaddressed.
This inconsistency in policy objectives presents a challenge, as efforts to reduce inflation may inadvertently encourage the very economic behaviors that contribute to it. The government must find a balanced approach to managing these conflicting goals.
The church along with the immobilization of available funds
As I pass by the massive structure being built behind West Hills Mall in Accra, I am reminded of my lectures to students on financing options for entrepreneurs. The grand church under construction raises questions about the prioritization of funds in the country.
In Accra and other cities, there are many similarly impressive church buildings, which, while awe-inspiring, would not pass basic risk management standards in other parts of the world, in terms of communal safety and health considerations.
It is unclear whether the massive structure is owned by an orthodox church or one of these mushrooming charismatic churches.
A significant portion of these resources could be utilized more efficiently by channeling them into enterprises capable of generating employment and stimulating economic development. Unlocking the financial potential locked within these religious structures would enable business expansion, lower manufacturing expenses, and enhance the competitive edge of products made locally.
Instead of investing large sums in lavish religious constructions, wouldn’t it be better to put those funds into the private sector—either directly or indirectly—to enhance job opportunities and tackle the growing issue of youth unemployment?
Some might call me a skeptic for doubting the logic behind these investments. Nevertheless, I think even Jesus understood the significance of catering to both the bodily and spiritual requirements of individuals.
Even though he performed miracles, he also addressed the practical requirements of the 5,000 people who had assembled to listen to him, offering both spiritual guidance and actual sustenance through food. This demonstrated his understanding of how intertwined our physical and spiritual needs truly are.
Across certain regions globally, places of worship like churches are transforming their premises into commercial spaces but still uphold ethical and religious values. Similarly, it might now be prudent for Ghanian churches to explore such ventures, possibly including stocks, thereby generating revenue. This financial influx can then fund societal initiatives and enterprises aimed at providing job prospects for the vast numbers of disheartened young people in the country.
In this way, churches could foster economic development, generate jobs, and educate their members about the significance of honesty, diligence, and accountability—principles that can profoundly influence society.
Why should substantial investment resources be confined within church structures when even financial institutions are moving away from physical assets, opting instead for sale-leaseback arrangements and more advanced financing strategies to unlock capital for generating profits?
Interestingly, in developed countries, you rarely see attendees at churches losing their mobile phones and other possessions during the short time they spend going up to the altar for donations.
In numerous church services across Ghana, there seems to be an increasing emphasis on entertainment at the expense of profound contemplations about ethics and community care.
The Church of England and some banks have been recorded to have participated in the obnoxious slavery of the 16th to 17th century, by holding shares in some slave ships and other entities that promoted the immoral economic practices of the day. Suffice to say that profuse apologies have been offered by these institutions since the abolishment of the slave trade.
On reflection, though, I am tempted to ask why these modern- day churches cannot invest some of the capital they tie up in magnificent church auditoriums into investments on the stock exchange.
I see no connection between the magnificent church structures and the degree of spiritual consciousness among those who attend services within them. This observation becomes particularly evident when reflecting on how the Bible describes our hearts and thoughts as being central to our spiritual existence.
Colorful and extravagant church structures do not necessarily indicate spiritual growth, unless my understanding of the scriptures is mistaken. Do church leaders consider how constant appeals to fund these massive endeavors might come across as pressuring members to contribute through fear? Has divine benevolence become akin to human corruption, requiring offerings before bestowing blessings upon us?
We fervently go to these places of worship to seek divine intervention in opening job opportunities for our progressively disheartened young people. At the same time, manufacturing companies are grappling with substantial capital expenses. In our agricultural-based economy, counting the thriving food-processing businesses can be done on just a few fingers.
Involvement of churches in businesses, even through indirect means, can offer essential capital that allows companies to grow with little expense. This also helps reduce unemployment and address the resulting disenchantment, which poses significant security challenges for the country.
This might boost job creation and potentially offer platforms to showcase how church teachings connect with values like honesty, integrity, diligence, and commitment within the business world.
As a community, we need to exercise caution when distributing our resources. This applies not only to the decisions made by public representatives but also to those taken by organizations such as churches. We should consistently keep in mind the requirements of the larger population. True advancement and prosperity for everyone will only come from concentrating on enduring, sustainable growth.
The individual holds a fellowship from the Chartered Institute of Bankers, has previously served as an adjunct lecturer at the National Banking College, manages a farm, and authored the "Risk Management in Banking" textbook. Email: koriginal59@gmail.com \xa0 Tel. 0244 324181
Provided by Syndigate Media Inc. ( Syndigate.info ).
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