Dec 7 elections: The economy is everything

The economy encompasses everything a government is supposed to manage: infrastructure, Free SHS, and the establishment of institutions.

However, three specific elements resonate with the people as key components of the economy more than others. If a government fails to address these sufficiently, they often reflect in election outcomes — unless manipulated.

Abraham Maslow, many years ago, outlined the most basic human needs: food, shelter, and security. These needs encompass jobs, water, electricity, transportation, basic housing, and healthcare. They are further reflected in specific economic indicators such as general inflation, food inflation, producer inflation, public transportation systems, access to energy, and personal security. These reflections form the core perception of the economy for the average citizen.

All governments undertake some level of infrastructure development, but not all ensure the economy positively impacts the livelihoods of citizens. This is especially evident when promises of improved access to water become less of a priority, while pollution of waterbodies is treated as an acceptable outcome — leading to water shortages, electricity challenges, and widespread poverty.

Addressing inflation requires significant effort. For instance, if inflation reaches 54% and prices rise to GHS100, a subsequent reduction in inflation to 19% or even 23% does not necessarily mean prices have become affordable. The rise in prices averages 23%, but the baseline remains GHS100. If a government assumes that reducing inflation from 54% to 23% equates to affordability for citizens, elections may deliver a harsh economic lesson.

Exchange rate depreciation, inflation, and high interest rates directly increase the cost of living and exacerbate hardship among citizens.

Future governments must be reminded that the economy is everything. A 14.7% unemployment rate is unacceptable for Ghanaians. A poor public transportation system cannot be considered adequate. Relying on a single policy to secure electoral victory multiple times is unsustainable.

Ultimately, the Ghanaian economy will be the decider.

By Prof. John Gatsi

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