Audio By Carbonatix
'Resetting' an economy usually involves substantial changes or reforms aimed at correcting structural weaknesses, boosting efficiency, and promoting sustainable growth. These measures can vary depending on a country's specific circumstances, but generally include the following:
- Restoring macroeconomic stability: Addressing issues such as high inflation, persistent fiscal deficits, excessive debt levels, restructuring SOEs, and reducing risks to the fiscal, etc. This might also require monetary and exchange rate policy reforms, fiscal austerity measures, or debt restructuring.
- Deep structural reforms: Modifying the fundamental frameworks of the economy to enhance productivity and competitiveness. This could involve further deregulation, labour market reforms, and changes to trade policies, etc.
- Institutional reforms: Improving the effectiveness of institutions that support economic activity, such as the legal system, regulatory bodies, and financial institutions. This could include tackling corruption, improving governance, and strengthening property rights.
- Financial sector reforms: Addressing issues within the banking and financial sector to restore stability and ensure efficient capital allocation. Specifically, this might involve recapitalizing banks, enhancing regulatory frameworks, resolving non-performing loans, and promoting local ownership in Ghana’s financial sector, etc.
- Social and human capital development: Investing in education, healthcare, and social protection systems to reduce poverty and inequality, promote healthcare and education and ensure long-term sustainable growth.
- Innovation and technology: Promoting innovation, advancing technology adoption, and fostering digital transformation to create new growth opportunities.
Hence, the term "reset" implies a comprehensive and fundamental overhaul rather than incremental adjustments (or “upgrading,”). Such resets typically occur in response to a crisis or prolonged stagnation, similar to what Ghana is currently experiencing. Historical examples include the structural adjustments in Latin America during the 1980s and 1990s, transformations in Eastern Europe post-communism, and efforts to address economic turmoil in the wake of the global financial crisis in 2008. The specific details on the NDC’s comprehensive reset agenda for a better Ghana, are all contained in their 2024 Manifesto for reference.
**The writer is a former Deputy Governor of the Bank of Ghana (BoG)
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Experts say missing engine part in most Ghanaian vehicles polluting air, sickening people
20 minutes -
India express train kills seven elephants crossing tracks
40 minutes -
Gunmen kill nine in South Africa tavern attack
45 minutes -
Charting a New Course for National Prosperity: Why an open ship registry can anchor Ghana’s twenty-four-hour economy vision
1 hour -
Ghana Airways restoration key to national pride and economic reset – Ablakwa
2 hours -
US seizes second oil tanker off Venezuela’s coast
2 hours -
Australian PM announces intelligence review as country mourns Bondi attack
2 hours -
Imran Khan and wife given further jail terms after state gift fraud case
2 hours -
5 perish in fatal collision on Cape Coast–Takoradi Highway
2 hours -
Poultry imports driving egg glut – GAPFA
3 hours -
Legal lifeline for Ghanaians in America as lawyers association, Embassy move to tackle diaspora challenges
4 hours -
Photos: First Atlantic Bank PLC officially listed on Ghana Stock Exchange
4 hours -
Energy minister assures stable power as Ghana hits peak demand in December
5 hours -
Miguel Ribeiro Fiifi Brandful
5 hours -
Adom TV’s ‘Nine Lessons and Carols’ electrifies National Theatre in a festive extravaganza
5 hours
