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10.07.2016 Feature Article

One District, One Factory- A Dream Or A Hoax?

One District, One Factory- A Dream Or A Hoax?
10.07.2016 LISTEN

“The empires of the future are empires of the mind” – Winston Churchill.

“Man often believes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning”- Mahatma Gandhi.

Youth unemployment has been a burden on Ghana’s economy for many years. With an estimated 230,000 youth entering the labour market every year with no hope of gainful employment (GLSS 5 2005-2006), having a visionary leader who could turn dreams into reality is non-negotiable. Is the one district, one factory agenda being championed as a campaign massage by the largest opposition party in Ghana a dream or a hoax?

Small scale industries play an essential role in the development and growth of a country. Countries like India and China have benefited greatly through small scales industries. Almost 40% of gross industrial value of the Indian economy comes from small scale industries. Small and medium-size enterprises accounted for 99% of all registered industries in China in 2001.These small industries played a vital role in stimulating economic growth, increasing employment, expanding exports and promoting science and technology in China. In terms of economic growth, the output value, sales and tax revenues of the small scale industry accounted for 60, 57 and 40 per cent respectively of the total industrial sector of China in 2003.

Almost all industrialized economies, started with small scales industries through government support for the development of township, collective and self-employed enterprises. Historically, villages in India have been self-reliant. Every village used to have its own cottage and small industry which fulfilled the needs of the village. It is this Indian example, which I honestly believe the main opposition party, the NPP is trumpeting as one district, one factory, and it aligns with the path India and China took towards industrialization. Modern day small industries in India manufacture rubber and plastic products, glass and ceramics, chemical products, transport equipment and many more.

Is it a dream or a hoax? I belong to the school of thought that believes the one district, one factory is a dream. If this dream becomes a reality through effective and efficient policies, the one district, one factory could be the “antidote” for Ghana’s high youth unemployment challenges, and the benefits would be countless. Small scale industries created about 79% of new jobs in China in 2003. In terms of foreign trade and exports, the export value of China in 2003 amounted to over US$430 billion. To be plain without statistics, let’s capture a few obvious benefits;

a. Mobilization of resources of capital and skills and their optimum utilization.

b. Creation of greater employment opportunities and increased output, income and standard of living.

c. Meeting a substantial part of the economy’s requirements for consumer goods and simple producer goods.

d. Providing employment and a steady source of income to the low-income groups living in rural and urban areas of the country.

e. Providing substitutes for various industrial products now being imported into the country.

In a bid to avoid political policy hacking, let me keep the mind-blowing benefits from the Value and Supply Chain perspective of this one district, one factory dream in my safe box.

Author: Atoapem Frimpong Barimah.

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