Question

One of the goals of governments in Sub-Sahara Africa is to be less reliant on aid. ''Policymakers in Ghana stem the loss of tax revenues caused by the failings of the local and international economic systems to help achieve sustainable development goals by 2030''. Discuss the statement with realistic example using the four key policy challenges bellow.

1. Stem the loss of tax revenues

2. Reduce the risks of private investment and actively manage it to maximize benefits

3. Provide more and better international public resources

4. Reduce and resolve finance and debt crises

Answer 1

Loss of tax revenue is an obstacle faced by almost all the developing countries.So to achieve sustainable development,the policy workers should apply proper monetary and fiscal measures,that way help to raise tax revenue.Government interference in the key investment areas will help to reduce the risks of private investment.Participation of private unit is the profitable and better yielding ventures are to be encouraged and supported by government.When the level of income and standard of living improve tax revenue will also be improved government in productive areas and international trade relations will help to improve the inflow of resources to the country.After achieving sustainable development,the government should concentrate on self-reliance,that is less dependence on foreign countries for financial aid.This is a slow process but if there is better planning and determination this is possible.Public corporation and support is to be ensured by government through proper measures.In this context,the experience of India is a good reference