Ghana has advanced three place on the 2014-2015 Global Competitive Index from 113th to 111th, but policy think tank, IMANI Ghana says this should not be a cause for celebration.
Furthermore, even though on the same index, Ghana ranked 123 out of the 144 countries in terms of basic requirements for competing globally, IMANI Ghana insists the indicators used in the ranking will not ensure sustainable progress.
“The upward movement of Ghana’s competitiveness is nonetheless shaky, especially when looking at the sustainability of the modest gains in competitiveness”, IMANI contends.
The Global Competitive Index, (GCI) published by the World Economic Forum (WEF) since 1979, has served as a credible comparison of economic competitiveness of countries.
It relies on a comprehensive list of over one hundred macroeconomic indicators to analyse competitiveness of more than 100 economies worldwide.
IMANI said in a weekly alert that global emphasis on national development globally has shifted from mere economic development to sustainable development which emphasises the need to develop “without compromising the ability of future generations to meet their own needs.”
“Ghana’s performance is not the most promising. Social sustainability (which encompasses vulnerability to economic exclusion and the fulfilment of basic physical needs) reduced and environmental sustainability did not change in comparison to the 2013 rankings. Once the GCI has been adjusted to take into account sustainability, Ghana’s score reduces”, said IMANI.
Ghana is ranked 50th or above on the GCI in terms of intellectual property protection, independence of the judiciary from government influences, efficiency of government spending of public revenue and strength of investor protection.
The WEF report noted that Ghana’s private sector was performing better than the public sector, ranking Ghana 50th or above for ‘spread of corporate activity amongst firms’, ‘effect of taxation on incentives to invest’, ‘taxing of profits’, ‘business sophistication’ and ‘market size’.
But IMANI Ghana says managers of the economy should not pat themselves at the back.
“This positive performance in the microeconomic competitiveness is in stark contrast with the poor macroeconomic environment”, the policy think tank explained.
Describing the latest GCI rankings as “modest gains” IMANI notes that managers of the economy should “lay the foundations for sustainable long-term growth, requiring efforts across all areas- social and environmental alike.”
In reference to the WEF report, the think tank also urged government and business leaders to work together in order to balance out the struggling economies.
“Development requires cohesive improvement in institutions, infrastructure, macroeconomic institutions, health and primary education”, IMANI counselled.
Click on this link to read the entire IMANI report.
Story by Ghana | Myjoyonline.com | George Nyavor | [email protected]
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