The World Bank Group has provided a cocktail of reforms to serve as the foundation to successfully transform Ghana within one generation.
The transformational measures put out by the bank include restoring macro-financial stability and achieving financial sustainability of the energy and cocoa sectors; enhancing productivity, competitiveness and job creation; investing in human capital; managing natural resources and building resilience in the agriculture and infrastructure sectors; and strengthening governance and public institutions.
In the latest policy note dubbed "Transforming Ghana in a Generation", the bank said implementing the comprehensive policy and institutional reforms would boost productivity, improve infrastructure services and strengthen the country's human capital for sustainable development.
The global financial institution added that those reforms could sustain economic growth exceeding 6.5 per cent, triple per capita income by 2050, and counter headwinds from demographic trends and the decline in natural resources.
The report, which was launched in Accra last Wednesday, said Ghana's income per capita had stagnated at around $2,200 over the past decade, with poverty affecting over a quarter of the population. It, however, indicated that the implementation of robust reforms could restore fiscal growth and ensure sustainable development.
It added that while regional disparities were worsening due to limited structural transformation and dependency on natural resources, the country had the opportunity to restore fiscal discipline, improve governance, and leverage natural and human capital resources for broad-based and inclusive development to transform the country within a generation.
Unique opportunity
The World Bank Division Director for Ghana, Liberia and Sierra Leone, Robert Taliercio, stressed that the country had a unique opportunity to take the required actions now to put the economy on the right trajectory of development.
"To sustain high growth, Ghana must join other countries that have maintained prolonged periods of robust economic growth and successfully avoided the middle-income trap by maintaining macroeconomic stability, low inflation rates, and sustainable public finances," he said.
He observed that, as captured in the report, urgent reforms would help the country to break from past governance failures marked by fiscal indiscipline, inefficiency and repeated International Monetary Fund (IMF) programmes.
Mr Taliercio further urged the government to restore credibility through fiscal consolidation, transparency, and institutional reforms, "put debt on a sustainable level and avoid premature re-entry to the Eurobond market".
Highlights
The policy note highlights four critical foundations that could drive Ghana's transformation within a generation.
First, it emphasised the fact that restoring macro-financial stability demanded better revenue collection, expenditure management and reforms in key sectors such as energy and cocoa to reduce fiscal risks.
Additionally, the policy stressed that boosting productivity and jobs required a business environment that attracted investment in high-productivity sectors while improving education, health and social protection to build human capital.
Furthermore, the policy observed that sustainable management of natural resources and resilience in agriculture and infrastructure were essential for broad-based, inclusive growth.
"Lastly, reinforcing governance through stronger institutions, anti-corruption efforts and public sector reforms is vital to restore trust and support effective development," the report stated.
Ultimate choice
The lead economists for Ghana, Liberia and Sierra Leone and lead author of the report, Stefano Curto, observed that the country had the ultimate decision to make now for the future.
"The choices Ghana make now can unlock a generation of inclusive, resilient growth, and deliver on the promises of sufficient quality jobs for its citizens," he said.
He underscored the need for the government and private sector entities to strengthen collaboration in the management of natural resources through enhanced environmental protection, forest and coastal management, and water security.
Touching on the agricultural sector, he stressed that reforms in that sector needed to revolve around climate-resilient agricultural innovations and promoting agribusiness value chain development.
Mr Curto further said sustainable development required the government to strengthen governance and public institutions to fight corruption through transparent and participatory budgetary processes; rationalising poorly performing and non-strategic state-owned enterprises; and strengthening local government structures to deliver accountable leadership.
He added that the World Bank Group was ready to support Ghana's leadership and the efforts of all stakeholders to make that promise real.
