Ghana’s economy remains static-Nii Moi Thompson
Masahudu Ankiilu Kunateh,Ghanadot
Contrary to the general assertion that Ghana’s economy
remains robust and resilient, a Renowned Economist, Dr. Nii
Moi Thompson has revealed that the structure of the
country’s economy remained virtually unchanged for over a
century.
This resulted in diminished employment opportunities,
general hardships and low living standards especially among
operators of the informal sector of the country.
According to him, “in 1920, cocoa, a primary commodity,
accounted for 83% of Ghana’s exports. Today, cocoa and gold,
along with other primary commodities, account for roughly
the same share of our merchandise exports as they did in
1920.
There has been virtually no structural transformation of the
economy to “decent work”.
Indeed, we have moved backwards over the years, as the share
of manufacturing, for example, has declined from a
historical high of 14% of GDP in 1975 to as low as 8.0% in
2009”.
Dr. Thompson made these revelations at the inauguration of a
22-member National Committee on the Informal Economy (NCIE)
in Accra, yesterday.
He added that “Whatever is left of our industrial activities
is concentrated in a few urban centres; the industries that
once dotted the national landscape have all died off,
leading to the inevitable movement of people from rural to
urban areas-a logical response to an illogical contraction
in economic opportunities, which we seem not to fully
understand”.
Dr. Thompson, who is the International Project Expert on
Local Economic Development of the International Labour
Organisation (ILO), blamed the current congestions of the
country’s major cities and towns to lack of proper planning
by city and town authorities.
He pointed out that, when you concentrate all major economic
activities in one place and call it a “central business
district”, do not be surprised or, worse, angry when that
place gets congested to the point of lawless.
Amazingly, “A few years ago when I was looking for shoe
laces to buy, the only place I could find them was the
Central Business District of Accra. Why couldn’t I just walk
to a neighbourhood store in Achimota and buy a simple thing
like shoe lace, Dr. Thompson asked.
The National Committee on the Informal Economy (NCIE), being
initiated by ILO and other social partners expected to play
a major role in this salutary paradigm shift and to share
its findings not only with the central government in the
country to help guide their policies and make them more
effective and fruitful.
ILO experience in the districts under the Local Economic
Development (LED) Initiative shows that collaboration,
rather than confrontation, between local governments and
informal economy is not only possible but mutually
beneficial.
In these districts, it has led to increased formalization,
such as registration and the payment of taxes, and a
consequent increase in revenue for local and central
governments.
The Minister of Employment and Social Welfare, Mr. Stephen
Amoanor Kwao, who swore-in the members of the NCIE, pledged
the commitment of the government to offer the necessary
support to the committee to initiate and develop the needed
policy framework for the informal economy for employment
creation as well as poverty alleviation.
He urged the committee to fashion out targeted interventions
in their policy framework to support small businesses,
especially those in the informal economy, to enhance and
improve their competitiveness.
Ghanadot
