Contractual relations that are structured in a manner to place fully, the burden and/or risk of loss or adverse impact on one party, exclusively, in the event of failure, poses a kind of risk economist and decision scientists refer to as, moral hazard. Moral hazard risk, when crystallized, could create market and/or institutional failure, with grave consequences for the macro economy and further unemployment. This policy brief examines a potential moral hazard risk in the Youth Enterprise Support fund as currently structured and subsequently makes recommendation to mitigate or transfer such risk.
The Policy Issue
The commencement of the Youth Enterprise Support fund in August 2014 has been a feather in the cup of the Mahama Administration as it tries to tackle the intractable problem of youth unemployment in Ghana...(Download full policy brief)
Youth Enterprise Support (Y.E.S) - Reducing the Moral Hazard Problem