Question

5. Examine the influence of corruption on the rising debt of Ghana..word limit 1000

Answer 1

Answer:
Influence of corruption on the rising debt of Ghana in many ways, few of the important points where corruption has led to rising debt in Ghana is mentioned below:

• Businesses unable to function properly due to corruption : Even though it's been said that Ghana has pretty low corruption compare to other African countries, but most of the time businesses complains its very hard for them to function properly due to corruption. They need to give bribery to local warlords and other incentives which further diminishes the efficiency of the business and hence profit that they are contributing in the economy is very low.
• Public expenditure is also not fully utilized due to corruption : There is corruption in most of the division of government, be it infrastructure development projects or transportation development projects. Due to this a project which can be completed in 100Cr can take as much as 150Cr and time to complete the project is also high which further compromises the effectiveness of the project.
• Economic growth is hindered which further increases debt : Because of corruption neither government bodies are working at their full potentials not private businesses are flourishing. It is also creating tense environment even for foreign investors to invest in Ghana, due to all of these economic growth is very less in Ghana and interest is getting compounded because of earlier non-payment and further taking extra loan.
• Trade deficit increases due to corruption and Debt cycle: As foreign investment is less and economic growth is also poor so there is trade deficit in the economy of Ghana which is further deteriorating the situation throwing economy of Ghana in a cycle of series of debt without a way to repay it, and this will finally lead to collapse of the economy.
• Corruption in law making body and Parliament : Even judiciary system of Ghana is also corrupted to such an extent that without bribery it's really hard to get your work done. Because of this legal system is also not functioning properly leading to chaos in the society.
• Corruption in Government agencies : most of the government agencies are also infected with corruption which delays the government projects as well. Even the approvals to start new businesses or getting any licenses are also not achieved until proper bribery is given to the government agencies.
• Corruption in Medical system : Even there is a huge scale of corruption in public health system. Whatever funding which comes in hospital for the common people never reach to them, they have corruption chain which sells the medicine to private hospital at half the rates.
• Anti Corruption effort not showing many results : various anti corruption bills which are being brought by the government also are not getting effective because corruption has reached to such a deep extent in the system. Because of all these now its getting very hard for the Ghana government to come out of corruption and providing good economic growth which will lead to decrease of debt.

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