Ghana, like many other African countries, is suffering significant economic issues caused by high taxation, widespread corruption, and mismanagement of governmental resources. These challenges have caused widespread poverty and economic misery for the people. Meanwhile, Kenya is witnessing a huge revolt against political leaders, seeking openness, accountability, and economic reforms. Ghana may take vital lessons
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Ghana, like many other African countries, is suffering significant economic issues caused by high taxation, widespread corruption, and mismanagement of governmental resources. These challenges have caused widespread poverty and economic misery for the people. Meanwhile, Kenya is witnessing a huge revolt against political leaders, seeking openness, accountability, and economic reforms. Ghana may take vital lessons from these events to handle its own economic challenges and avoid further impoverishing its populace.
The Kenyan Uprising: A Push for Change.
Kenya has experienced an increase in public protests and civil disobedience against government authorities. Citizens are dissatisfied with economic mismanagement and the apparent distance between the government and the people’s needs. This public outrage has been sparked by five critical factors that Ghana should be aware of:
Corruption & Mismanagement
Kenyans have expressed unhappiness with the widespread corruption and mishandling of public monies. This is a major worry in Ghana as well. Corruption diverts critical resources away from public services and development projects, resulting in economic stagnation and inequality (Transparency International, 2023).
High tax burden.
Kenya’s enormous tax load has caused significant economic suffering. Similarly, in Ghana, high taxes stifle economic activity and progress. High taxes lower disposable income, limit consumption, and discourage investment (IMF, 2022).
Inequality and Unemployment
Kenya’s protests emphasise extreme inequality and high unemployment rates, particularly among youth. Ghana confronts similar issues, with a considerable proportion of the population still unemployed or underemployed, increasing poverty (African Development Bank, 2021).
Theoretical Framework: Development Economics
Ghana can apply several development economic theories to understand and address these issues effectively.
Modernization Theory
According to modernization theory, economic development progresses linearly from traditional to contemporary states. To do this, Ghana must implement fundamental reforms that modernise its economic systems, as Kenyans are demanding. This involves improvements to infrastructure, education, and government institutions (Rostow, 1960).
Institutional Economics
Institutional Economics emphasises the need of strong institutions in driving economic growth. Strong, open, and accountable institutions are critical to ensure that public resources are spent efficiently. Ghana’s institutions must be strengthened to prevent corruption and enable effective public service delivery (North, 1990).
The Social Contract Theory
According to social contract theory, a government’s legitimacy is based on its ability to serve its constituents. The Kenyan uprising is the result of a broken social contract in which the government failed to address the people’s needs. Ghana must reconstruct its social compact by making the government more accountable and responsive to its citizens’ needs (Rousseau, 1762).
Steps Ghana Should Take
Combat corruption.
Ghana must prioritise the fight against corruption by establishing independent anti-corruption authorities with investigative and prosecutorial powers. Transparency in government operations and public resource management is critical for restoring public trust and allocating resources for growth.
Reform Taxation
Implementing tax reforms that broaden the tax base and improve compliance can help reduce the tax burden on the poor. Digitalizing tax systems can curb evasion and improve efficiency, ensuring that tax revenues are used for public good without stifling economic activity.
Promote Economic Equality
Investing in education, healthcare, and social protection programs can help reduce inequality and poverty. By creating opportunities for all citizens, especially the youth, Ghana can foster a more inclusive economy.
Enhance Political Accountability
Political leaders must be accountable for their actions. Strengthening democratic institutions and encouraging civic engagement helps ensure that leaders are attentive to the needs of their constituents. Regular audits and transparency in government spending can assist prevent the misappropriation of public cash.
Conclusion
Ghana is at a critical moment, and it can learn from Kenya’s ongoing movement against political leaders. Ghana can overcome economic suffering and assure a better future for its population by eliminating corruption, restructuring taxation, fostering economic equality, and increasing governmental responsibility. Kenya’s lessons underline the significance of an open, accountable, and devoted government that cares about its citizens’ well-being. It is time for Ghana to take the necessary steps towards long-term prosperity and economic justice.
References
African Development Bank. (2021). Africa Economic Outlook 2021.
International Monetary Fund. (2022). Tax Policy and Administration.
North, D. C. (1990). Institutions, Institutional Change, and Economic Performance.
Rostow, W. W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto.
Rousseau, J.-J. (1762). The Social Contract.
Transparency International. (2023). Corruption Perceptions Index.
By Roger T.D Wills, Economist and Financial Analyst
The post Ghana should take clues from Kenya’s uprising against political leaders to combat economic hardship first appeared on 3News.
