Professor Kofi Nti
Professor Kofi Nti, former Dean of the University of Ghana Business School (UGBS), Legon, has called on government to fully align itself with the private sector to transform the country’s economy.
He said the collaboration would enable the private sector to create wealth and employment in an increasingly globalized world.
Speaking at the 45th J.B Danquah memorial lecture on the topic: “Government as regulator and provider of public goods,” he said the private sector requires public inputs such as protection of property rights, enforcement of the rule of law, physical infrastructure, political and macroeconomic stability and a healthy as well as educated workforce to remain competitive on the world market to attract both domestic and foreign direct investment.
Professor Nti said government should primarily provide public goods through innovation and operational efficiency.
“It must also set and enforce the rules to ensure market functioning, efficiency, fairness and economic growth.”
He revealed that Ghana’s infrastructural deficits in roads, railway and domestic air travel, water, sanitation, broad band internet and electricity were adversely affecting business.
According to him, poor quality electricity supply forces some companies to purchase expensive standby generators, thereby shifting resources away from the production of goods and services and productivity improvement.
Prof. Nti explained that frequent electricity interruptions could have larger economy-wide impact on telecommunications and computer systems and overall productivity of the private sector.
He therefore appealed to the government to work to reduce transaction cost.
“As a result of extensive administrative, financial and legal reforms government implemented during the last decade, Ghana placed very well on the World Bank’s Doing Business Rankings in terms of registering properties, getting credit, protecting investors and enforcing contracts,” he said
However, Prof Nti said Ghana has unfavorable rankings with regard to construction permits, getting electricity and trade across borders.
He said the global competitiveness of the country needs to be improved. “Ghana currently ranks in the bottom quarter of the World Economic Forum’s Global Competitiveness Index”, he said.
Prof. Nti said the country has challenges in infrastructure, health and primary education due to low enrolment rates at all levels (primary, secondary and tertiary) and a general weakness in Science, Technology, Engineering and Mathematics (STEM).”
He said government would need to supply the necessary public inputs to improve Ghana’s global competitive and the business environment.
By Cephas Larbi
