The economic indicators are only measurements to serve as empirical proof to how an economy of a nation is faring at its different aspects. So far, per the economic indicators, ratings by some former Ghanaian Presidents such as H.E Jerry John Rawlings and H.E John Agyekum Kufuor, and in addition to ratings by credible economic rating institutions in both Ghana and across the globe like FITCH, Standard and Poor (S&P), IMF, MCC, World Bank, Ghana Statistical Service, ISSER, IMANI-Africa, Danquah Institute, CTI and others, it has gone to prove that this government is doing best with the management of the economy. In fact, a comb through the history of the economic management of Ghana by its respective governments especially considering their first two years of governance clearly shows that this NPP government under H.E Nana Addo Dankwa Akufo-Addo is not only doing well but also doing best.
Despite the above huge accomplishment by this government with respect to the economy’s management, research still tells of people complaining of dry pockets as compared to the era under the H.E John Dramani Mahama led NDC government. A dry pocket is just a jargon used to described the low level of money circulation in a country’s system.
i. Possible Causes (Internal Factors)
One would therefore wonder how an economy statistically proven to be doing this best could still get people complaining of dry pockets, this as a result pushed me for a search, and my search led me to three key internal factors which I believe are the major factors causing that, and they are;
A. Reduction in Corruption
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B. Halt of Artisanal and Small Scale Mining
C. Reduction in Infrastructural Projects
A. Reduction in Corruption: Corruption is a factor of increasing money circulation in a country’s system. The more stolen money gets into the hands of people, the more there is an increase in spending, and through that an increase in the circulation of money in a system. Clearly, this government as compared to the previous government (H.E John Mahama led government) clearly reveals that there has been a reduction in corruption under this government, therefore such reduction in corruption will bring about a reduction in money circulation in the country’s system.
B. Halt of Artisanal and Small Scale Mining: Artisanal and Small Scale Miners engage in the mining of gold, diamond and other forms of natural minerals. With the case of Ghana, the mineral most mined by these category of miners is gold followed by diamond. Artisanal and Small Scale Mining directly employs over 1.2 million people, and engages, affects and supports over 4.5 million people along the value and supply chain network. It contributes almost 35% of the total gold production representing about 1.5 million ounces of gold, and also 100% of the diamond production. The miners and others along the value and supply chain generate lots of huge revenue from this occupation and as a result inject same into the country’s system. Also, foreigners whom involve themselves in this occupation spend a lot and through that inject a lot of money into the system. But due to some bad and hazardous occupational activities of most of these Artisanal and Small Scale miners in Ghana, their activities were halted by this government around March, 2017, this as a result brought about a halt in the distribution of all the huge revenue from them into the country’s system which previously used to find its way into the system, and as a result a reduction in the circulation of money in the country’s system as compared to that under the previous government.
C. Reduction in Infrastructural Development: Infrastructural development involves the building of schools, roads, railways, markets, health centers, industries, airports, estates and others. Infrastructural development brings about lots of revenue into the country’s system through the employment of a large number of people especially the lower class. It also brings in lots of foreigners, these foreigners whom are mostly noted for their huge spendings together with the large number of people who get employed through these Infrastructural developments help increase the circulation of money in a country’s system through the injection of lots of money into the system through their spendings.
ii. Possible Solutions
A. Reduction in Corruption: Despite this has led to a low level of money circulation in the system, the opportunity cost for reducing corruption has been a blessing to the country than making it increase, and as a result of this bigger significance of its reduction to the state than its increase, it will be best corruption is continuously kept as low as possible.
B. Halt in Artisanal or Small Scale Mining: Despite the bad and hazardous occupational activities which were exhibited by most of these miners during their mining activities which led to its halt and as a result helped brought about the low level of money circulation in the system, it will still be best to remove the halt under very regularised conditions since the opportunity cost of removing the halt under very regularised conditions will be better for the increase in the money circulation in the system plus the general development of the nation than its halt.
C. Reduction in Infrastructural Development: Aside Infrastructural projects helping with the circulation of money in a country’s system, it also helps with the general build up of a country’s economy, as a result, there is therefore a need for a country to increase its infrastructural projects to help boost the circulation of money in its system plus its other benefits to a nation.
It must be clarified that all the possible solutions raised in the article are policies which have already been proposed by this NPP led H.E Nana Addo Dankwa Akufo-Addo government in its 2019 budget statement for commencement in 2019. It is therefore my surest belief that with the implementation of the lift of the ban on Artisanal and Small Scale Mining under regularised conditions and the massive entire country’s infrastructural projects earmarked to begin from 2019, Ghanaians will from 2019 witness and experience lots of money circulation in the country’s system plus a bonus of a massive development of the entire nation, and as a result feel the “wet pockets”.
Hhhhmm, may God be praised always
Nana Kwadwo Akwaa
Member, Critical Thinkers International (CTI)
writer’s email: [email protected]
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