The Institute for Fiscal Studies (IFS), an independent political think-tank, has proposed economic policies capable of delivering tangible socio-economic benefits to Ghanaians.
The think-tank devoted to the provision of economic policy advised in a six-page document dubbed: “Economic Policy Priorities For the New Government,’’ detailed key economic challenges and proposed policy responses that should be considered by the Government to improve the economic well-being of Ghanaians.
The Policy brief calls on the Government to transform the economy to restore and sustain high growth, tackle the unemployment time-bomb, address the infrastructure deficit and restore macro-economic stability.
The publication also calls on the new Government to deal with the debt albatross, ensure effective fiscal decentralisation to address the urbanisation challenges, tackle the corruption canker and formulate a long-term national development plan to accelerate growth and development of the country.
At a news conference in Accra, Dr John Kwakye, Director of Research IFS, said the economy had witnessed a sharp decline in growth in the last three years and had remained vulnerable due largely to the over-dependence on primary commodities, which had been subject to price volatilities on international markets, with serious implications for export receipts and budget revenues.
He said the industrial base of the economy had almost diminished due to a stagnating manufacturing sector, whilst private businesses had been suffocating under the weight of several obstacles.
“Deficits in energy, transportation and other infrastructure have remained large, a situation that has stifled economic growth, unemployment has become a ticking time-bomb, posing a threat to social cohesion and national security, public debt continues to mount at an alarming rate, and macro-economic stability remains a mirage in the face of high cost of living and widespread poverty,’’ he said.
He said it was against this background, the IFS brought to the attention of the new Government the critical economic challenges.
Dr Kwakye said government could there raise financial resources through a number of vehicles, such as from domestic revenue, grants, loans and public private partnerships to finance the economic challenges.