Development Economics Debate
Development Economics Debate
Just discussed earlier we all have a fair idea of what foreign aid is.
To get right into it foreign aid can create a dependency cycle that undermines the very
fabric(Stress on it ) of a nation's drive towards self-sufficiency.
When a country like Ghana receives substantial amounts of aid, it can become reliant on these
external sources of funding to address its developmental needs.
This reliance can lead to a reduction in local initiatives, innovation, and a sense of urgency to
solve problems independently.
For instance, in the agricultural sector, foreign aid programs often provide seeds and fertilizers.
While this helps in the short term, it can discourage farmers from experimenting with and
developing their own sustainable farming practices.
The focus on short-term projects without looking at long-term sustainability is one of the
reasons why Ghana is where it is today.
The reliance on external inputs becomes ingrained, and local innovation is stifled (Moyo, 2009).
We need a cultural shift in the current attitudes of Ghanaians towards the state and current
culture in terms of values, norms, and behavior.
This shift is necessary to overcome the poor work ethic and general apathy that has manifested
itself in the form of a lack of discipline and nationalism, which is the opposite of what existed in
the periods before and immediately after independence.
Worse still, many think of the Republic as “Ꜫsononam” (Elephant meat in the village context),
which everybody goes to cut a piece for their enjoyment with no conscience, as they think there
is plenty to go around: the classic problem of the commons. Ey3 Aban die – it’s for the
government its not mine
What would be required to get to “Ghana Beyond Aid” is a re-focused and re-committed
Ghanaian that is disciplined, frugal in the use of public resources, nationalistic, and brave enough
to hold him/herself, others, and political leaders accountable for actions taken.
Singapore is a prime example of a country that was at the same level as Ghana during
independence but managed to transform itself into a developed nation.
They faced similar problems but successfully shifted the mindset of their people.
We need a credible development vision and transformation agenda, as discussed by the Astute,
learned and ingenious Dr. Stephen Armah in his famous article “Ghana Beyond Aid” and
what it Will Take to Achieve it
We must focus on committed and effective leadership to make this vision and agenda happen.
Leaders must be visionaries who can inspire and mobilize the population towards common goals.
Drawing back to DR. Armah’s article These leaders should be accountable and transparent,
ensuring that resources are used efficiently and for the benefit of all citizens (Armah, 2023).
There are positive indicators that Ghana can move beyond aid.
Foreign aid is more focused on short-term projects and often overlooks long-term sustainable
development.
While foreign aid provides immediate relief, it often lacks the sustainability needed for long-term
development.
According to a report in 2020 by the Overseas Development Institute (ODI), many foreign aid
programs focus on immediate needs such as food security and emergency health services, which,
while crucial, do not (Stress on it ) build the infrastructure necessary for long-term progress
(ODI, 2020).
The Government of Ghana has already made significant strides in creating job opportunities and
support systems for marginalized groups.
The Youth Employment Agency (YEA) in Ghana has implemented several programs aimed at
providing skills training and employment opportunities for the youth, women, and persons with
disabilities.
For instance, in 2020, YEA created over 100,000 jobs for young Ghanaians across various
sectors (Ministry of Employment and Labour Relations, 2020).
As Ghana continues to grow, the focus should shift towards self-sufficiency and reducing
dependency on aid.
The Planting for Food and Jobs (PFJ) program, launched in 2017, has significantly increased
agricultural productivity, creating food security and employment for thousands of Ghanaians.
According to the Ministry of Food and Agriculture, the program led to a 72% increase in maize
production and a 49% increase in rice production from 2017 to 2020 (Ministry of Food and
Agriculture, 2021).
Foreign aid has its place, but it should not be a crutch for our development.
Ghana has demonstrated its ability to implement successful programs that benefit marginalized
groups without relying on aid.
The focus should now be on scaling these initiatives and fostering a culture of self-sufficiency.
By investing in long-term projects and leveraging local resources, Ghana can achieve sustainable
development and reduce its dependence on foreign aid.
Misallocation of resources is a critical issue exacerbated by corruption, diverting aid and public
funds to private interests rather than public development.
Anti-corruption efforts can significantly mitigate these issues by strengthening legal frameworks
and ensuring government-funded programs and projects provide value for money by adhering to
procurement laws and reducing cost overruns.
Corruption siphons off an estimated $3 billion annually from Ghana, almost double the net
external aid received.
The Auditor General's report indicates that the size of corruption, in terms of lost revenue to the
state, is substantial.
Despite existing procurement laws, many programs and projects seem designed to enrich private
pockets more than to deliver development.
For example, the average cost of programs and projects is estimated to be 30% to 50% above
value-for-money estimates, with contingencies alone sometimes as high as 25%, making cost
overruns a norm rather than an exception in executing state-financed projects.
To tackle corruption, Ghana appointed a Special Prosecutor, marking a significant step towards
addressing the issue.
However, the Special Prosecutor's effectiveness is potentially undermined by their position under
the Attorney General, an arm of the executive branch.
For true independence, the Special Prosecutor needs autonomy from political influence.
Additionally, the passing of the Right to Information Bill and the implementation of the
Whistleblower's Act are crucial steps. Insisting on open asset declaration by officeholders,
including politicians and senior public servants, can help drive out those seeking public office for
personal gain.
Changing laws to force public officials with lifestyles beyond their means to account for their
wealth is also necessary.
Religious miseducation is another critical area. Some untrained and poorly qualified religious
leaders exploit the population's lower education levels to secure financial futures through weekly
offerings and monthly tithes, often without accountability or tax obligations. This promotes a
"prosperity kingdom" philosophy, emphasizing miracles and favors over critical thinking and
hard work, which undermines development. President Paul Kagame of Rwanda's decision to
close about 3,000 churches led by unqualified pastors serves as a potential model for Ghana to
follow.