The truth of development problems: opinions from the Bank of Ghana

Today we had a guest lecturer for my Economic Development graduate seminar at the Institute for Statistical, Social, and Economic Research here at the University of Ghana. His name is Samuel Ameyaw and he is the Officer for Financial Stability at the Central Bank of Ghana. Being that Ghana just revalued its currency whereby 10,000 cedis = 1 new Ghana Cedi, he was a key player in the promotion of the revaluing such that investors would have greater confidence in the Ghana Cedi.

The topic of the day was poverty and the nature of the term. We discussed absolute and relative poverty, how to measure poverty, and characteristics of poverty in the rural and urban areas. This was all very interesting considering the discussion was being led by an official from the central bank who was willing to put position aside to speak freely with us; however, what was most interesting was what came later in the form of a discussion about the problems of development in Ghana.

Similar to the problems that I spoke of in the last post regarding lack of volunteerism, the central banker mentioned that in Ghana it’s the people that must want development first before any changes can take place. Too often nepotism, and the desire for power and the spotlight lead to problems of corruption and failure of programs. Ghanaians want to be leaders and take the credit and control before they have the qualifications and ideas to fill the role. In the vying for leadership, they lose sight of the problems and people they serve. Rural areas do not get their voices heard as local district assemblies have little capacity for governance. So, nothing changes there and politicians forget them. Lack of volunteerism makes development a distant thing that no one addresses because it often involves some self-sacrifice and humility.

It was strange to hear this from the central banker, but he was genuine and even gave several hundred dollars to development projects in the past without credit for them. It touched me to invigorate more Ghanaians to serve their nation by volunteering, and made me appreciate the spirit of community service in the United States. The central banker made it clear that politicians are selfish and control-hungry so they don’t welcome experts or others who come ready to help because it would mean loss of control. Even at the local level, chiefs of villages fear loss of control and so hamper development. Yes, development in Ghana and likely globally requires self-sacrifice and passion- a passion that goes beyond selfish desires and humbly recognizes that no I don’t have all the answers.

Reinvigorating the youth for development

Last Thursday I had the opportunity to invite members of the Youth Development and Peace (YDP) Network of Ghana to a conference call, taking place at World Bank offices here in Ghana, with members of the North American chapter who are just organizing a chapter of their own. An initiative of the World Bank, the YDP framework seeks to partner with regional youth development NGO’s to form regional networks to address global poverty. The Ghana chapter recently launched in August and I thought it might be helpful for both the North America chapter and the Ghana chapter to communicate on this conference call which was planned to include only YDP North America members.

So, the call went very well as the Ghana members certainly had a lot of experience with building networks. They recommended to the North America group that they give leadership positions not to their friends and loved ones, but rather to those who have the technical and specialized knowledge required for the position. They also recommended that the North America group must brand the YDP framework to make it appealing and unique. This brought up questions surrounding the affiliation with World Bank and the resulting impact that it would have. I recommended we emphasize the link to maintain credibility and prominence, yet we must specify the nature and role of the World Bank in the partnership as one of coordinator and resource provider, not agenda-setter. Most agreed, although Nii of the Ghana group mentioned that the affiliation with World Bank could discourage cooperation with some developing country governments (a good point).

The Ghana YDP group then invited me to a video conference the World Bank in DC was hosting regarding agriculture development. The West African Development Organization (WADO) is a group of youth in West Africa that advocates for youth in agriculture as an ideal. Over the video conference, several ministers of African nations and experts in agriculture participated, but the Ghana contingent was all youth which was impressive. There was even a practicing youth farmer there. They gave the youth perspective and were recognized by all the participants (Senegal, Nigeria, Liberia, Washington, DC). Big issues were: access to credit for land, land tenure, attractiveness of agriculture. Attractiveness of agriculture was particularly important for the youth because many youth frown upon the field as a dead end. But, the potential it offers is great both for the farmer and for economic development in Africa.

From these conferences, I learned that Ghanaian youth know the problems of development well. I found that not all youth are willing to do anything about it though—there is a lack of volunteerism here. Ghanaians will not sacrifice without compensation so readily as they want payment for work they do. It relates to that spirit of nationalism that remains dormant as Ghana still does not have a solid and unified national image. Hopefully that will change and private charity and volunteerism escalates. The United States is great because of that community service spirit- it really makes a difference because those that are willing to sacrifice make the greatest strides for national development. I am privileged to meet this group of Ghanaians who are inspiring others to follow in their steps.

Being there

What is the value of being there? Before I came to Ghana, I knew for myself and for the field of development economics that the value of actually living and working in a developing country is absolutely necessary to the subsequent policymaking aspect of any career in international development. Without actually having been to the developing world, I don't think it would be possible to make sound policy decisions. I believed that before I arrived in Ghana and I now believe it even more so.

Thus far, I have learned so much just through my 7 weeks here that I never realized before. Some of those facts include: cultural differences and relevant development policies, the definition of development for certain countries, the goals of the population sometimes don't reflect the will of the developers, the importance of self-esteem and the idea that things can be better, the systemic barriers to change...etc. I really did not understand the extent of these issues until I'd arrived.

Now I realize that as a policymaker, one cannot witness all situations and be privvy to all necessary knowledge first hand. But what I have learned tells me a few things:
One: Spend at least some time in the area you make policies for because you learn very much about a place just by being there a little while
Two: Try to read more firsthand accounts of the area you make policies for as this will inform your decisions along with the theories you learn as well
Three: Don't assume all situations in an area are the same. Always make sure of the uniqueness of culture and the norms and values the population holds because each ethnic and regional group is different.

A recent article by CNN encapsulates some of these ideas as soldiers express the need for politicians to experience the situation firsthand to better inform policy decisions:

http://www.cnn.com/2007/WORLD/meast/09/10/iraq.soldiers/index.html

Nationality and nationhood

The importance of nationality and nationhood for development is an aspect I really hadn't visited. But, here in Ghana this is certainly an issue. As the country became independent in 1957 it has had 50 years to develop a Ghanaian identity among dozens of ethnic groups including Ga, Ewe, Asanti and others.

Recently, the "Ghana at 50" campaign of the state of Ghana has attempted to bring Ghanaians together under one banner and instill the Ghanaian identity to unite the people groups here. Many Ghanaians would claim they are first loyal to tribe, then Ghana; but, things are changing and many Ghanaians are now "proud to be Ghanaian."

But, the issue is complex because Ghanaians are searching for that meaning among 50 years of being involved in Western development projects and culture. So, they are inventing themselves it seems and Bob Marley is certainly a part of the development committee (along with Akon, Jay-Z, and other US rap stars among the younger generation).

How important is national identity to development? Very important as I am finding common communication and common goals need to prevail for successful development. So, we shall see as time progresses what shape Ghana will take.

Development?

Since I have been here, I have talked to many Ghanaians about my interest in development and I have realized that maybe this term means something different across cultures. In Ghana, I have found that most people are very content and happy in their daily lives. It is not to say they are not frustrated with certain inadequacies, but does it mean that I should hold out the vision of a new Ghana to be so convenient and developed as that of the US? Well, maybe not.

I spoke to a few Ghanaians about this and they reminded me that in the US many are in debt and live at a standard of living that is inflated due to credit lines that support vast sums of debt. In Ghana, this credit is difficult to come by and things are "pay as you go". Paul and Shadrack, Ghanaians, explained that although it would be nice for Ghana to have this purchasing power, it is not something they need for happiness.

As far as frustrations go, these two students at the university told me that though student voice is acknowledged when problems occur, it is not always addressed and is often neglected. This could be because of the high extend of demand for goods and services while a low supply exists; this creates a monopoly or imbalance of power in favor of producers. Thus, the system often doesn't change because Ghanaian consumers have little choice like we in the US.

But, both students were confident that Ghana will improve to fix the problems at hand. I really were inspired by their optimism and desire to hold fast to their nationality as Ghanaians.

I thought about their comments and considered that maybe its best to ensure that extreme poverty is eradicated and there is a comfortable health, food, education and housing standard through growth promotion. Beyond that, it might actually get ambiguous as to what more Ghanaians would need "developed". Maybe at that point it's best to allow their marketplace to determine that and restrain from imposing any outsider visions of development.

Some Cultural Exchange....

Yeah...this Ghanaian tried to get me to join his gym. After he lost the arm wrestling match, he didn't ask me to join any more. Hmmm, wonder why?

Two worlds...two perspectives?

I know this probably is not the case, but I am wondering of others' opinions on this. I would consider my living standards and life as fairly well off in the United States. For my family, friends, and provisions I am extremely thankful. Could my willingness to travel to and aid in development be due to my past provision?

For instance, citizens of developing countries may want to just improve their livlihoods to a level they have not yet seen. Perhaps that means moving to a higher status in their own country or moving to a more developed country. As I travel through Ghana, I mention that I am from the US and several would like to go there. I love the US as well, but they might want to see a better life for themselves there.

So, is it that those who have much to start will find it easier to give it up for something different? It seems to be a paradox but at least for me I feel I have been given many blessings and I want to help others with that. I am sure it could go the other way as well.