with Dr Robert K
LLB (Hons) [London]; LLM [London]; PhD [London]; of the Inner Temple, Barrister; Solicitor and Advocate of the Superior Courts of Justice, Ghana Director London Graduate School of Law, London.
Today my article will comment on some aspects of the Financial Times Special Report on Ghana backed with statistical profile produced by the Economist Intelligence Unit of IMF. Ghana's credit rating was given B+ by an American company known as Standard and Poor. That rating is a recommendation of Ghana to foreign investors and that is due to the stability established in Ghana by President John Kufour since the year 2001. Over 3 million competent Ghanaians are still resident overseas and Ghana became a victim of brain drain like the rest of Africa.
However, President John Kufour's promise of a golden age for Ghanaian business became still born like President Kwame Nkrumah 's promise on 11th March 1964 to Ghanaians that by the year 1970 Ghana would become "a state with a strong and virile economy, its agriculture and industry buoyant and prosperous, an industrialized nation serving the needs of its people."
My general comment is that the IMF, and the World Bank, and the WTO's prescriptions for Ghana failed to work. Not that the free market prescriptions were wrong but because the prescriptions were toothless bulldogs which could not bite deep enough to work in Ghana or any African country. If your house is on fire you do not go to a foreign fire brigade to fight it for you.
What is needed in Ghana and Africa is independent professional education for the people in order to establish true investment stability based on the confidence of the people in the economy and in themselves for better quality of life. Every one is interested in investment as in music and dancing. Investment, music and dancing are all dramatic displays for enjoyment.
Stability in the USA, UK, EU, Japan, and China did not depend on the IMF, the World Bank or the WTO prescriptions of take it or leave it. Stability in those countries depends on the confidence of the people in their economy and in themselves. The USA Revolution did not depend on prescriptions from the UK to work. The Chinese Revolution did not depend on the USA or UK prescriptions to work but on the confidence of Chinese in China.
The ECOWAS and the African Union are ineffective because the leaders are ineffective and lacking in vision and implementation and lack confidence in their country and themselves. Their economists rely on moribund and discredited economic theories of convergence and the like because they know no alternative. We are in the age of knowledge economy with vision for quick decision making. If you continue to postpone your integration action from July 2005 to December 2009 your competitors will be laughing all the way to their bank and they will congratulate you for your idiocy.
Investment is the most dominant social institution in the world but subject to the rule of law. Every one is involved in investment because investment is the only civilised occupation for improving quality of life worldwide. Every person is entitled to participate in investment in order to get and enjoy a share of the natural resources of the world. Thus, it is important that the issues should be freely sharedby all; they cannot be the monopoly of any body in a dominant position.
If the USA and EU engineered agricultural subsidies against external imports and denied you market access how could you compete and survive against them with your agricultural exports from Africa? Your agricultural industry will die premature and you will continue to import food from the USA and Europe in perpetuity.
If Africa has no financial market based on one African Central Bank of its own how can Africa trade in the financial markets? How can 54 African Central Banks determine a common interest rate for investors unless we have one African Central Bank. The USA has only one Central Bank. The UK, the European Union, and China have only one Central Bank each to enable them control their money and capital markets and investment within and without.
What is investment? Investment is money and risk management principles employed by business enterprises and companies in production of goods and services to satisfy the needs of industry, trade, commerce, consumers and stability in the global markets under the seven aspects of investment, namely:
1. Investment confidence.
2. The rule of law.
3. Corporate governance.
4. Financial service.
6. Taxation, and
7. Conflict resolution.
The my articles will deal with these seven aspects as we go on.These seven aspects of investment constitute the first defining principles of investment; they are the foundational building blocks. There will be no freedom and stability in Ghana, Africa and the world until these seven aspects of investment are recognised worldwide and established in Ghana and the African Union.
Some people may agree or disagree with that definition and the seven aspects of investment. Absence of investment or any of the seven aspects of investment is the basic cause of absolute poverty in perpetuity in Ghana, Africa and the world. Investment boom and burst or instability has no principle. So also is aid from the IMF, the World Bank and the
The approach to investment depends on qualitative and quantitative analysis. This is borne out by experiences in the United States, UK, European Union, China, Japan and India.
The law is an instrument for investment control and management: it integrates everything in one whole under the sun. The seven aspects of investment offer the first defining principles.
The above definition of investment raises the central issue as to what is money? What is management? Where the global markets are situated? Who are the players in the global markets? We shall respond to these questions in the subsequent issue of the African Echo.
Could Africa emerge triumphant over the players in the market? China did it. The USA did it after the American Revolution. Japan did it after the Second World War. Germany did it after the Second World War. Africa has the resources and it can do it at the computer age.
African Internet service must be up to date and it does not matter where Africans are situated in the world they will work for Africa in the age of globalisation.
Africa needs professional education in the seven aspects of investment. We are in the computer age and not in the age of ignorance. The London Graduate School of Law offers affordable education in law and management for all Africans in order to lift Africa out of absolute poverty.