Why Ghana Needs Praxeology Centre Of Economics Studies Now Than Ever
I have been a witness to Dr. Ephrain Baiden dragging Bank of Ghana to the Supreme Court on the Charge of failing to discharge their mandate per the management of the country currency. I have also witness several attempt of the President of the republic of Ghana with good intent to promise the people of Ghana but failing several time to fulfill the promises.
This stem on the fact that, the fulfillment of a promise of a leader is directly proportional to the trust in it labour force in execution. This equation is enough to support my argument on the necessity of government to institutionalize praxeology centre of economics studies to aid government in economic management policy formation and enactment.
The Economic term Praxeology is the deductive study of human action based on the notion that human engages in purposeful behavior as opposed to reflexive behavior according to Wikipedia, while Meriam-Webster dictionary simple defined it as the study of human action and conduct.
For years praxeology economic studies has been difficult to be accepted by the science community due to lack of over reliance of this college of studies on empirical analysis as the only way forward acclaimed by classical economist in true understanding of the behavior of the economic market; such has also been the main factor which has denied such school of thought, a strong media attention.
Present economic crises globally justify the failure of most of the economic module and econometric theories in attempt to predict future prospect through the super branding of the capital market as a discipline that determine the rise and fall of an economic market per their allegiance as student of Keynesian.
I hold the view that; such flaws are as a result of disregarding the labour market as an independent vital component of economic market for decision making. China once was at the door of IMF for assistance, yet adopted social inclusive praxeology oriented actions to transform their labour market to be productive. Now have a wonderful testimony in penetrating the African market in business wise and a fast growing economy.
When will Ghana transform from fragile Economy to rock star, if such correction of poor policy management for the labour market not addressed. Then we will not be surprised of going to the IMF bailout programme again on the third time a decade from today.
The flaws in our political economic management system of Ghana presently justify the gab of understanding and lack of reconciliation between the labour and the capital market. History of failure of World Bank Programmes for Africa years ago should have thought us economic management lessons.
It will be important to also make it clear that the support of the World Bank and IMF on developing economy is very limited and largely focused on the empirical studies of the capital market behavior than the labour market of member state.
According to their mandate; World Bank exists to encourage poor countries to develop and providing them with technical assistance and funding for projects and policies that will realize the country economic potential. Mostly their financial and technical assistance are offered to developing countries by supporting specific projects. Neither wealthy countries nor private individuals could borrow from World Bank.
IMF on the other hand supervises policies that influence their balances of payments in the presently legalized exchange rate environment due to their mandate to monitor members’ compliance within the fixed exchanged system. IMF provides short and medium term financial assistance to member nations that run into temporary balance payment difficulties. The financial assistance usually involves the provision by IMF of convertible currencies to augment the afflicted members dwindling in foreign exchange reserves but only in return for the government’s promise to reform the economic policies that caused the balance of payment problems in the first place. So it financial role in these cases is not to subsidize further deficits but easing a country painful transition to living within it means.
For this reason it very disappointing to see some social commentators trying to paint IMF as a demonic institution per working within their mandate as agreed by member state which Ghana is included; And refusing to question what is fundamentally wrong with our economy to go back to IMF for the second time rather.
Wise nations as earlier cited went once and they are well doing even to the extent of competing to become a giant economy of the world whereby a nation like Ghana is trying to use IMF as a capital market for regular visiting, a mandate they do not stand for as stated above, is so sad.
My research findings depict that the capital market Institutions in Ghana are tremendously doing well but to undermine and ignore the research centre for study of labour productivity of an economy, to guide policies of the state to regulate certain institutions that doctrinate the masses which are the power house of labour is the cause of the flaws in the economic management; for example like the music industry, movies industry, religious institutions actions on the people, determine the drive of the economy. Such Institution should be scientifically regulated to act in line with national agenda to change the present self centered, unpatriotic, materialistic exposition and lazy thinkers leading to weak labour productive market hence resulting in present fragile economy of Ghana.
Therefore we believe that when Praxeology centre of economic studies established, this Institute will be able to advice government of how to structure, regulate and govern all the institutions whose action doctrinate the masses for reliable policies to be enacted. Than the present actions of public institutions for mass education and entertainment, doing what they like and going away without considering the future implications on the economy could be controlled and streamlined for national development.
For fiscal management sustainability initiatives of Bank of Ghana and that of Ministry of Finance the least we criticize the better because per the structure of our economic market is enough justification to recommend the expert effort in financial economic practice. Any criticizer is either wearing political propaganda spectacle or a layman to the fundamental theories that govern financial economic management.
Tweneboah Senzu, PhD.
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