Rural Reflections (39): Afenyo-Markin’s Misguided Priorities

By Francis OWUSU-ACHAMPONG ( FCIB )

In a lively democracy, one of its strongest features is the ability to voice different perspectives as part of the journey towards progress.

Mr Afenyo Markin has garnered the admiration of numerous individuals, including some from the governing party and other politically impartial watchers.

Nevertheless, his latest proposal for a new parliamentary edifice along with a dedicated medical facility exclusively for legislators has ignited significant debate, even drawing criticism from some of his own backers.

Given my profound respect for the Honourable Member of Parliament, I find myself in disagreement with this specific recommendation. At such a crucial moment, many people, including me, see this proposal as an unwise prioritization issue, particularly when we consider our country’s ongoing economic challenges.

It is important to remember that the electoral results of 57% and 38%, respectively, are indicative of the challenges we face, and the suggestion for such an expensive undertaking seems out of touch with the reality of many Ghanaians, hence drawing the ire of many who have applauded him so far.

Take, for example, Bortianor, a suburb of Accra, where schoolchildren still risk their lives crossing rivers in rickety canoes just to attend school.

Tragically, there have been fatalities. Elsewhere, many children are forced to write their stomach in overcrowded, dusty and\xa0 dilapidated classrooms.

The deplorable condition of our streets leads to a disturbingly high number of preventable crashes. In large urban areas, fundamental street indicators that might improve vehicular movement frequently go missing.

Why not invest resources in enhancing current medical facilities like Korle Bu, the University of Ghana Medical Center, the 37 Military Hospital, Komfo Anokye Teaching Hospital, and the Winneba Accident and Trauma Center instead?

With strategic investments, these hospitals could become centres of medical excellence and potentially even a hub for medical tourism, boosting national revenue.

A student of economics would swiftly highlight that the concept of scarcity necessitates difficult decisions. The genuine issue at hand is whether the assets suggested for constructing a new parliamentary hall are being distributed effectively, taking into account the broader requirements of society as a whole.

For instance, couldn’t some of this money be allocated to enhance transport infrastructure in rural regions—such as increasing ferry services on the Afram Plains or refurbishing the Volta Lake Transport Company? The rail network continues to lag behind, with large cargo items still moving over roadways ill-equipped to manage them effectively.

I think the NPP is still recovering from the same misjudgment that led to the creation of the contentious Cathedral project. It’s not surprising; the opposition took advantage of this situation to persuade voters to remove the NPP for various reasons.

It’s crucial to reflect on past missteps, such as the controversial cathedral project. The NPP’s decision to back it was perceived by many as a prioritization of the needs of the elite, an image the party must now work to distance itself from.

This could further fuel the perception that the NPP is insensitive to the struggles of the everyday Ghanaian, a narrative that is easily exploited by the opposition.

The party must take care not to replicate the socio-economic imbalances seen in some countries, where the rich flourish while the majority remains excluded. Whether it’s a parliamentarian seeking treatment locally or abroad, the inevitability of death remains unchanged—it will come when it comes, irrespective of where one is treated.

Let us focus on more visionary leadership, like that of Governor Gordon Guggisberg and Dr. Kwame Nkrumah, who always prioritized the welfare of the majority over the few.

This country should be careful not to replicate the socio-economic inequities that make South African society rich but less inclusive and notoriously crime laden.

Let us hope for more leaders who think like Governor Gordon Guggisberg and Dr. Kwame Nkrumah of blessed memory who thought about the greater good of the majority.

Fiscal and monetary policy inconsistency?

After the NDC successfully convinced the electorate that the previous government’s fiscal policies were reckless, one is left wondering what new measures the current administration will introduce to correct these imbalances and stimulate economic growth.

There have been promises to cancel certain taxes, and we wait to see how these promises will be implemented, particularly with regard to the reduction of government borrowing.

Although these tax cuts might appear attractive, it’s hard not to wonder about the government's strategy for sustaining public finance, particularly with decreased income sources. Could utility charges and tariffs go up despite election pledges to keep them down? And would people readily accept such hikes without protest?

As it stands, nearly every tax handle\xa0 is slated for modification, leading to a promise of cancellation or reduction, while new spending initiatives like the expansion of FSHS for private schools and free tuition fees for first year undergraduates\xa0 are promised to fulfill political commitments.

There is an opportunity to reassess tax exemptions, most of which have not produced the anticipated advantages. However, the genuine difficulty lies in figuring out how the government can fund these additional expenses without intensifying the country’s financial issues.

At the same time, local production expenses remain an obstacle to expansion, notably within the food industry, which encounters substantial hurdles on the supply side.

The central bank has recognized that inflation is caused by excessive liquidity fueling demand, which necessitates an approach focused on inflation targeting. However, when monetary policy attempts to curb inflation by increasing interest rates, the banking industry might encounter difficulties adapting to these shifts. This could be exacerbated by growing numbers of non-performing loans and ineffective methods for recovering debts.

From the perspective of the central bank, inflation targeting should be implemented resolutely to eliminate surplus demand through setting a Monetary Policy Committee (MPC) rate that currently exceeds the 91-day Treasury bill rate.

Given a government committed to decreasing its borrowing needs by lowering interest rates, one might anticipate that commercial banks would increase their lending activities, all else being equal, to compensate for the anticipated decrease in income from lower-yielding financial products they typically hold.

Credit growth, nonetheless, doesn’t emerge from nothing when issues like non-performing loans and the cumbersome, costly legal procedures for recovering debts remain unaddressed.

The disparity between policy aims poses a difficulty since measures to decrease inflation might unintentionally promote the exact economic activities that lead to higher prices. It falls upon the government to adopt an equilibrium strategy for handling these opposing targets.

The church along with the immobilization of available funds

As I walk past the enormous building taking shape behind West Hills Mall in Accra, it brings back memories of my talks with students regarding financial strategies for business owners. This impressive ongoing church project sparks thoughts on how resources are allocated within the nation.

In Accra and other urban areas, numerous equally striking church structures can be found. These edifices, although breathtaking, would likely fail fundamental risk assessment criteria elsewhere globally when considering community safety and well-being.

It remains uncertain whether this large edifice belongs to an Orthodox Church or one of the rapidly growing charismatic churches.

Much of these funds could be used more effectively if invested in businesses that could create jobs and foster economic growth. The capital tied up in these church buildings could support expanding businesses, reducing the costs of production, and improving the competitiveness of locally manufactured goods.

Rather than sinking millions into extravagant church projects, why not invest in the private sector directly or indirectly to improve employment prospects and address the rising levels of youth unemployment?

Some might call me a doubter for challenging the logic behind these investments. Nevertheless, I think even Jesus understood the significance of catering to both the bodily and spiritual requirements of individuals.

Although he performed miracles, he also addressed the practical requirements of the 5,000 people who had assembled to listen to him, offering both spiritual guidance and actual sustenance through food. This demonstrated his understanding of the interconnectedness between bodily and spiritual needs.

Across certain regions globally, churches are transforming their premises for business purposes but still uphold ethical and religious duties. Churches in Ghana should now explore comparable ventures, possibly including stocks, to create revenue streams. This financial influx can then fund societal initiatives and enterprises aimed at providing job prospects for the vast numbers of disheartened young people here.

In this way, churches could foster economic development, generate jobs, and educate their members about the significance of honesty, diligence, and accountability—principles that can significantly influence societal norms.

Why should we tie down substantial investment resources in church buildings when even banks are moving away from physical asset investments and opting for sale-leaseback arrangements and other advanced financial strategies to unlock capital for generating profits?

Interestingly, in developed countries, you rarely see people in a church losing their mobile phones and other belongings during the short time when they go up to the altar for donations.

In many church services across Ghana, an emerging pattern suggests that entertainment is overshadowing profound contemplations on moral values and community care.

The Church of England along with certain banks were documented as having engaged in the detestable practice of slavery during the 16th to 17th centuries through their ownership stakes in various slave vessels and enterprises that endorsed unethical economic activities at the time. It suffices to mention that extensive apologies have been made by these organizations following the termination of the slave trade.

Upon further consideration, however, I find myself inclined to question why contemporary churches do not allocate part of the funds they lock away in grandiose sanctuary buildings towards stocks and financial market ventures.

I see no connection between the magnificent church structures and the degree of spiritual consciousness among those who attend services within them. This observation becomes particularly evident when reflecting on how the Bible describes our hearts and thoughts as the true sanctuaries of our spirits.

Flamboyant church buildings cannot reflect any spiritual maturity, unless I am reading the wrong Bible.\xa0 How do church leaders feel about the incessant calls on the congregation to support such gargantuan projects by “intimidating” congregants with sowing for blessings. Is God now as corrupt as we are to demand bribes before He pours His blessings on us?

We earnestly troop into these structures to pray for God to open employment avenues for our increasingly disappointed youth. Meanwhile, manufacturing firms are struggling with huge costs of capital.\xa0 As for food processing firms, it is easy to count the successful ones on one’s finger- tips in an agrarian economy like ours.

Church involvement in business, even if indirectly, can provide much needed equity funding to enable firms to expand their operations at minimal cost, while, improving the unemployment situation and its attendant disillusionment that is creating security concerns for the nation.

This could improve employment generation and possibly provide arenas for demonstrating the link between church sermons and honesty, integrity, hard work and loyalty in the corporate space.

Society as a whole should exercise caution when distributing our resources. This applies not only to the agendas established by public representatives but also to the decisions taken by entities such as churches. It is crucial that these actions take into account the requirements of most people. True inclusivity and prosperity for everyone will only be achievable through an emphasis on enduring, sustainable growth.

The individual holds a fellowship from the Chartered Institute of Bankers, has previously served as an adjunct lecturer at the National Banking College, manages a farm, and authored the "Risk Management in Banking" textbook. Email: koriginal59@gmail.com \xa0 Tel. 0244 324181

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