Why Nations Fail: Exploring Ghana’s Economic Challenges- Blocking Systemic Leakages (Part 3)

Death Penalty

I would have loved to recommend what many Ghanaians may describe as swingeing punishments for actions carried out by citizens who take advantage of the system and steal from the nation. I guess Ghanaians are very nice people, but nice people have always finished last. In the previous Parts of the series, I pointed out the need to invest heavily in infrastructure, basic-level education, and technology. Meanwhile, I emphasized that we do not only need to increase taxes to fund these. In fact, we should not. In this Part, I would propose some strategies we can use to seal artificially crafted funnels that leach out more of our money than all the taxes we collect annually. As a nice Ghanaian, I have taken out the death penalty.

We are going to delve into an essential aspect of creating transparency in the financial governance of a country and reversing the flow of funds that would otherwise end up in the pockets of corrupt individuals. We will explore the implementation of strict laws, the absolute rule of law, and the utilization of a private blockchain network across all government agencies, including the seat of government, as powerful tools to combat corruption. To illustrate the transformative potential of these measures, we will draw upon the example of Singapore, where the rule of law and meritocracy have shaped the nation’s future, and contrast it with the unfortunate case of Lebanon, where corruption has led to a devastating downfall.

Singapore Vs Lebanon

Singapore stands as a testament to how the rule of law and a commitment to transparency can drive economic growth and development. The city-state has consistently ranked highly in global indices measuring transparency and the absence of corruption. This achievement can be attributed to Singapore’s unwavering adherence to strict laws, a robust legal framework, and an independent judiciary. By ensuring that no individual is above the law and that corruption is met with severe consequences, Singapore has built a strong foundation for economic progress and social stability. The country’s success story demonstrates how creating a culture of accountability can foster trust, attract investment, and promote sustainable development.

Conversely, Lebanon serves as a stark reminder of the detrimental effects of corruption on a nation’s trajectory. Once considered the “Paris of the Middle East,” Lebanon’s descent into an abyss can be largely attributed to widespread corruption and a lack of effective governance. The misappropriation of public funds, bribery, and nepotism have eroded public trust and hindered economic progress. Between 1990 and 2000, Lebanon experienced a remarkable period of economic growth, with its GDP expanding by a staggering 400%. However, due to rampant corruption and severe systemic leakages, the country’s fortunes took a drastic turn, pushing it into a total abyss. Lebanon’s currency devaluation to zero highlights the devastating consequences of corruption left unchecked. The absence of a robust rule of law, coupled with weak institutions, has allowed corruption to flourish, resulting in a dire financial crisis and societal unrest. Lebanon’s tragic example highlights the urgent need for comprehensive anti-corruption measures and a steadfast commitment to transparency and accountability.

Rule of Law, Code, and Blockchain

To effectively tackle corruption, Ghana must prioritize the establishment and enforcement of strict laws that hold public officials accountable for their actions. This includes enhancing anti-corruption legislation, strengthening investigative bodies, and ensuring the independence of the judiciary. Moreover, the adoption of a private blockchain within government agencies can revolutionize transparency and accountability. Blockchain, at its core, is a decentralized and transparent ledger system that records and verifies transactions securely. By utilizing blockchain technology across government agencies, Ghana can significantly enhance transparency, reduce corruption, and block systemic leakages that drain the nation’s resources.

Every year, Ghana loses a staggering amount of at least $4 billion to corruption, according to various estimates. This substantial sum, if redirected towards development initiatives, could have a transformative effect on the country’s infrastructure, social services, and overall quality of life for its citizens. By leveraging technology to tackle corruption and implementing blockchain-based solutions, Ghana can effectively plug systemic leakages, prevent misappropriation of funds, and ensure that resources are channelled towards sustainable development.

To understand the magnitude of the potential impact, let’s consider the remarkable example of Hudson Yards in New York City. This ambitious urban development project, covering a vast area and featuring state-of-the-art infrastructure, required an estimated investment of $6 billion. Hypothetically, if Ghana could block the loopholes in its system and prevent the loss of funds through corruption and systemic leakages, the country could channel those resources toward similar grand projects on an annual basis. This not only has the potential to boost infrastructure development but also to create a vibrant tourism sector, as seen in the remarkable growth and success of Dubai.

Ghana must learn from such examples and recognize the urgency of combating corruption through technological advancements. Implementing blockchain technology can create a tamper-proof and transparent system, eliminating opportunities for corruption and ensuring the efficient allocation of resources. By harnessing the power of technology, Ghana can redirect funds towards vital sectors such as infrastructure, education, healthcare, and social welfare, ultimately improving the lives of its citizens.

The impact of utilizing blockchain technology extends beyond financial governance. It can revolutionize government operations, streamline administrative processes, and increase efficiency. By digitizing records, eliminating bureaucracy, and promoting transparency, blockchain can enhance public service delivery, reduce red tape, rent-seeking, and improve overall governance.

Accra, the vibrant capital city of Ghana, has immense potential for transformation if systemic leakages are blocked through technology. The billions lost to corruption annually could be redirected toward creating a modern and sustainable cityscape. Imagine the development possibilities—world-class infrastructure, improved public transportation, cutting-edge technology hubs, and enhanced tourism offerings. With the right policies, a commitment to transparency, and the utilization of blockchain technology, Accra could become a shining example of inclusive and sustainable urban development.

The use of technology, combined with strong laws and a commitment to the rule of law, will be crucial in forging a path toward a transparent, accountable, and economically vibrant Ghana.

Meritocracy

In our exploration of effective governance and the fight against corruption, it is crucial to examine the concept of meritocracy, which has played a pivotal role in Singapore’s remarkable transformation. Meritocracy refers to a system where individuals’ advancement is based on their abilities, qualifications, and achievements rather than factors such as social status, wealth, or connections. Ghanaians worship status. We can do better by worshipping talent and skill. Singapore’s commitment to meritocracy has been a driving force behind its economic success and social stability.

In Singapore, meritocracy permeates every aspect of society, from education to public service. The government places a strong emphasis on providing equal opportunities for all citizens to develop their talents and contribute to the nation’s progress. Through rigorous education reforms and the establishment of world-class institutions, Singapore ensures that individuals are empowered to excel based on their abilities rather than their background.

The country’s education system, renowned for its high standards and emphasis on skills development, plays a vital role in promoting meritocracy. Students are encouraged to strive for academic excellence, and those who demonstrate exceptional abilities are given opportunities to pursue advanced education and secure scholarships. This merit-based approach nurtures a competitive and skilled workforce, driving Singapore’s economic growth and attracting global investments.

Moreover, Singapore’s civil service exemplifies the principles of meritocracy. The government recruits talented individuals based on their qualifications and capabilities, creating a highly efficient and competent bureaucracy. Merit-based promotions and performance evaluations ensure that deserving individuals are recognized and given the opportunity to lead and make significant contributions to the nation.

In conclusion, the fight against corruption and the pursuit of transparent financial governance are critical for the sustainable development of nations like Ghana. By adopting strict laws, upholding the rule of law, and harnessing the power of technology such as blockchain, countries can create a robust framework that combats corruption, promotes transparency, and ensures the efficient use of resources.

Singapore’s experience provides a good example of how the rule of law, meritocracy, and a commitment to transparency can shape the future of a nation. The country’s unwavering dedication to fighting corruption, implementing sound economic policies, and nurturing human capital has propelled it from humble beginnings to a global economic powerhouse.

For Ghana, the potential to unlock economic prosperity and transform the nation lies in combating corruption, embracing transparency, and leveraging technology to block systemic leakages. The hypothetical effect of reclaiming lost funds to combat corruption is staggering, with the potential to propel Ghana’s growth and position it as a leading destination for investment and tourism.

As we continue our journey in Part 4, we will address the topic of leadership and the general awakening of the consciousness of the Ghanaian people. YES, WE CAN!!

Hubert Baidoo
Co-founder of Afria.io
Email: [email protected]