Unveiling the Pitfalls: Starting Development with Digitalization Alone, Without Addressing Basic Social Infrastructure, Might Prove to be a Flawed Strategy

In the pursuit of national development, Ghana faces a critical decision between prioritizing digitalization or emphasizing social infrastructure. While recognizing the acknowledged benefits of digitalization, placing social infrastructure at the forefront is indispensable for ensuring sustainable progress. Drawing insights from the historical industrialization of the United States and Singapore's successful development model underscores the importance of a balanced approach.

The history of American industrialization stands as evidence of the transformative impact of technology and industry. In the late 18th and 19th centuries, the United States underwent a significant shift from agrarian economies to large-scale industrial manufacturing. Technological advancements, substantial capital investment, and a growing labor force propelled the nation into an economic powerhouse. Crucially, this industrialization was accompanied by a robust social infrastructure, encompassing reliable transportation, education, healthcare, and energy systems.

Fast-forwarding to the late 20th century, the advent of the internet marked another transformative era – digitalization. While acknowledging the improvements in efficiency and connectivity brought about by digital technologies, relying solely on digitalization without addressing basic social infrastructure might prove to be a flawed strategy.

For struggling economies like Ghana, a sole focus on digitalization, without tackling fundamental issues such as poor roads and inadequate school infrastructure, could present challenges in implementation and adoption. Examples such as the Tracy Towers in New York highlight the importance of reliable energy infrastructure for sustained economic growth.

Consider the residents inhabiting the uppermost floors of the Tracy Towers. Despite residing at considerable heights, they consistently enjoy uninterrupted water supply without the need for unsightly poly tanks on the rooftop. This is made possible by a sophisticated water pumping system that operates seamlessly from the bottom to the top, facilitated by a robust and reliable energy infrastructure. Such a system not only ensures convenience for residents but also exemplifies how dependable energy is the backbone of essential services. Applying this example to the Ghanaian context, the unfortunate reality is that Ghana faces a significant challenge as its energy industry is currently in a state of bankruptcy.

Back toinsights from historical industrialization, the successful development strategies of nations like Singapore, led by Lee Kuan Yew, further underscore the case for prioritizing social infrastructure. Singapore's focus on education, healthcare, housing, and transportation laid the foundation for its economic success and high standard of living.

In the Ghanaian context, an emphasis on socio-infrastructure projects akin to the Industrial Revolution and Singapore's model could lay the groundwork for sustainable progress. Projects aimed at improving roads, schools, and energy infrastructure are crucial components of a comprehensive development strategy. The proposed 24-hour economy policy aligns with this perspective, recognizing the need for a balanced approach addressing both digitalization and basic social infrastructure.

In conclusion, Ghana's journey towards sustainable development necessitates a balanced approach that acknowledges the interconnectedness of digitalization and social infrastructure. While digitalization holds value, a solid foundation of social infrastructure is crucial for unlocking the nation's full potential, as evidenced by historical precedents and successful global models. The proposed 24-hour economy policy is advocated as a step in the right direction, embracing a more holistic development strategy over a singular focus on digitalization. The 24-hour economy policy, with its emphasis on continuous productivity and inclusive growth, aligns more closely with the principles of sustainable development, making it a preferable avenue for Ghana's future progress.

Ebenezer Ato Ntarkurfah Jackson
Cornell University-Johnson School of Business

MBA Class of 205