Economist, Prof Lord Mensah, has highlighted the feasibility of the 24-hour economy policy proposed as a gamechanger for Ghana’s economy by the flagbearer of the National Democratic Congress (NDC), John Dramani Mahama.
According to him, although it was an open statement by the former President, there are some sectors of the economy that are operating 24 hours.
He revealed that what government needs to do in this case is to conscientize Ghanaians to appreciate the fact that these industries can be boosted and motivated to enhance 24-hour services.
Prof Mensah presumed that John Mahama’s policy was made within the context of creating jobs and employment. However, he explained that the economy is reeling because it’s an economy that people work for eight hours, albeit there are some critical sectors like healthcare, emergency services, transportation and customer support service that are required to operate 24 hours.
“As we speak now, some of them are operating 24 hours but then the off-peak hours seem to be like a burden on employees. So, if we re-conscientize ourselves, if government is able to align policies by engaging the private sector because some private sectors are able to work 24 hours [it can be achieved].
“Then also, we need to look at securities services – it’s 24 hours, but the night services police provide is somehow weaker, which we’ve not looked at… It all boils down to how government wants to position itself. Now, we have ourselves with the IMF.”
Prof Lord Mensah
Lean government proposition for thriving economy
Elaborating on how Mr Mahama can effectively undertake the 24-hour economy policy, Prof Mensah stated that the NDC flagbearer in this case cannot pick that point alone and say government is ready to go by 24-hour service. However, he expressed the need to look at all other crucial areas that were said during Mahama’s meeting with TUC.
Additionally, Prof Mensah noted that there is a situation where the policy alternatives that were provided seem to align with the IMF programme. With this, he emphasized the need for lean government which has a way of cutting down cost.
“… So, we are not going to see a situation where we have a government running at a higher cost for which at every point in time, we’re running a huge market deficit that forces the government to go to the markets every now and then, choking the market and crowding out the private sector.
“But if turns out that we go out there to run a lean government, and we reduce budget deficits as required by the IMF programme that we find ourselves in, then the economy is going to be shifted from the corridors of government to businesses.”
Prof Lord Mensah
Furthermore, Prof Mensah emphasized the impact of government cuts down on its appointment.
He stated that the move is bound to motivate the private sector and that if businesses are active and interest rates reduce as a result of government reducing its budget deficits, then engaging private sector to run 24-hour service, by increasing production and having market out there, will result in job creation.
“So, I believe that we shouldn’t take the 24-hour job creation just all by itself, but other policies that must go with it to make sure that this is achieved, we have to look at all these holistically. So, I believe it is feasible.”
Prof Lord Mensah
Meanwhile, Prof Mensah revealed that for an economy that is growing, the country finds itself at the bottom part of its economic dynamics. By this, he explained that having the 24-hour policy cannot be achieved within one or two years.
However, he stated that if John Mahama really has a plan and starts with the security services, where businesses will be certain that they are protected in the night, there’re bound to be activities running into the night which will create the kind of effect that is expected.
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