It is an undisputed fact that there is a class of executive arms of government using power to acquire wealth and engage in conspicuous spendthrift that in one way the other, would have been impossible to live the same in their private life through a free competitive market. As a result squandered amidst the good fortune of the Republic of Ghana in terms of Economic prosperity and tightening the tax-screw to the upper limit at the disadvantage of the independent private Enterprises that hold the genuine growth indicators of the domestic economy, yet struggling to survive in the current situation.
The worst in the current circumstance is engaging in abnormal borrowing in the present at the expense of the future, thereby threatening the long-run financial stability and soundness of the entire country.
Therefore, it is never strange that some Ghanaian scholars are advocating for the enactment of the Revenue Collateralization Law to deal with policy failure issues, citing a weak policy regime of this current government.
The basic question is, if the Executive arm of government was doing the right thing in matters of moral principle and economic safety of citizens, and considering characteristics of what a good Law should be, will it be worthy of the cost to enact such a Law?
All evidences and observations, establishes and justify how this current government and her associated Economic management team are shadow of their real intellectual ideals as a political party, which is extended to the mechanism of its policy development and applications.
There are real cases of policy space occupied with what I term in characterization as [Policy Feminism] with wrong timing of application, instead of expected [Policy Masculism] looking at the current circumstance the country finds herself.
[Policy Feminism] upholds a fundamental premise of reactionary instrument. Such policy is formulated with the strict intent and purposive drive to address or react to economic shocks, while that of [Policy Musculism] upholds an independent objective into the open economic market to address potential challenges, with a clearly assessed potential benefits and expected risk of implementation.
While in general view [F-Policy] is easy to enact, the counterpart [M-Policy] requires considerable time of in-depth thinking, and a careful computational analysis factoring into it both visible and invisible impact on stakeholders’ within a given time space.
The current state of Ghana’s Economy requires a lot of [M-Policy] to address its immediate Economic challenges within a framework of future objective forecast, rather than the current observed policy space field with a reactionary instrument basically addressing past debts in a restriction approach, just to promote additional debts portfolio.
This places a lot of competency questions to the caliber of Experts managing Ghana’s Economy, because a simple common sense should suggest that being in a huge debt trap, the fundamental premise to initiate a new policy design is “Scarcity of Resources” to achieve intended Goals.
Therefore, any policy formulation, as well as management of the policy space, cannot ignore the facts, which are the ‘financial constraint’ and ‘the current state of the economy’ towards the intended goals to achieve, as a political vision.
When such relevant constraints as factors of the equation are ignored, but rather the Executive arm of Government is hungrier for more debt overload on the national budget regardless of the Economic consequences, it makes such kind of governance unacceptable and shameful in the sense of honesty and credible intellectual exercise worth acclaim, as they seek to use the media to induce a perfect picture of a sound economic situation in most cases.
However, in a critical examination, one could trace the root cause of this phenomenon as an amoral attitude to the Law by certain classes of Executives, where the rules required of them to uphold sanctimonious conducts in the application of the Law as discretionary requirements within the ambit of the Law, and prescribed in the wisdom of the Constitution. While we take into cognizant that Static Laws guiding a dynamic system requires some element of circumstantial acts, as my earlier article titled “Connecting the Economic Dot: the Strength and Weakness of the 1992 Constitution of the Republic of Ghana” (May 2, 2022). Thereby, considering the current behaviourial context of the human acts to the legal instruments, seeks to expose the weakness of the 1992 Constitution, when the reasons that gave birth to such arbitrary rules for discretionary acts of the Executives are ignored.
And unfortunately, it is capitalized on by some executive class as an arbitrary nature of the rules for exploitation, forgetting that it is this same reason of the sanctity to the application of the arbitrary rules that places requirement criteria of who qualifies as President, as well as the entire executive body.
The system is suffering from a condition whereby the executives have been accorded a wide scope of (power) authority in the Law towards the development of the domestic economic system in terms of appointments and delegations, with appropriate rewards thereof. Which is supposed to be accompanied with efficient methods of appraisal and who to hold liable, yet, the same constitution is equally shielding them from the consequence of any irresponsibility.
Thereby upholding logical conclusions that the Executive qualifies for rewards and full compensation in their actions within governance, but their negligence and irresponsibility are transferred as a cost to the citizens, excluding themselves indirectly.
Senzu, T.E. (2022a) Connecting the economic dot: the strength and weakness of the 1992 constitution of the Republic of Ghana. https://fbiresearchedu.org/…/the-1992-constitution-the…/ (May, 2022 Series)
Emmanuel Tweneboah Senzu, Ph.D., is professor of Economics and Finance, with speciality in monetary economics, Banking Law, Econometrics, investment and risk analysis. Member of World Economic Association. President of Frederic Bastiat Institute Africa, Mercatus Center fellow; Law and Economics, George Mason University-USA, Fellow of the College of Social Sciences and Humanities, University of Makeni-SL, Faculty Fellow of University of Management and Technology, Sierra Leone. Research Fellow of West Africa Monetary Institute, Ghana.