You Can’t Transform Economies With Just Brick and Mortar-VP Mahamudu Bawumia.
H.E. Dr. Mahamudu Bawumia, Vice President of Ghana has said, You can’t transform economies with just brick and mortar.
In his inaugural address at the Ghana Investment Conference in Accra on Wednesday, Dr. Bawumia spoke on the importance of generating human capital to transform the country’s economy and argued that the promotion of human capital was more important than that of physical capital in a country’s transformation.
He noted that countries were increasingly competing with each other based on the quality of their manpower.
A country’s economy is not measured by physical structures but its people
A country’s economy is not measured by the number of physical structures or brick and mortar as Vice President Mahamudu Bawumia said.
Instead, a country’s economy is measured by the productivity of its people. A nation’s GDP is a function of the number of hours worked multiplied by the average hourly earnings.
Therefore, a country with a large population of productive citizens will have a higher GDP than a country with fewer productive citizens.
The 4 pillars of a country’s economy
A country’s economy is built on four pillars: agriculture, industry, services, and tourism. Each pillar is essential to the country’s economic growth and stability. Without a strong foundation in each pillar, the economy will crumble.
Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) is a measure of all the final goods and services produced in an economy in a given period of time.
It is the most common way to measure a country’s economic performance. GDP growth is often used as a proxy for the health of an economy.
A high GDP growth rate indicates that an economy is growing rapidly, while a low GDP growth rate indicates that an economy is either contracting or growing very slowly.
Other Countries’ GDP Per Capital
In order to have a thriving economy, you need more than just brick and mortar. You need a strong GDP per capital.
According to the World Bank, in 2017, the United States had a GDP per capita of $59,531. The United Kingdom’s was $39,116 while Ghana’s was only $1,655.
This means that the average person in the United States had almost 60 thousand dollars while the average person in Ghana had less than 2 thousand dollars.
Importance of Employment
When you have a job, it not only provides you with an income, but also a sense of purpose. A job can help you feel like you’re part of something larger than yourself and can give your life structure. It can also provide you with a network of people who can support you and help you grow.
Increase in Capital Stock
The Vice President of Ghana, Mahamudu Bawumia, said that you cannot transform economies with just brick and mortar.
He was speaking at the Digitization initiatives introduced by the governing NPP in Ghana. He said that there has been an increase in the capital stock of Ghana but it has not translated into economic growth.
He said that the government is committed to creating an enabling environment for businesses to thrive.
He said that the private sector is the engine of growth and the government is working to create an enabling environment for them to flourish.
This is covered in MANIFESTO FOR THE POSITION OF STUDENT REPRESENTATIVE COUNCIL (SRC)