Gov’t’s dual role in wealth generation key to inclusive growth – Julius Debrah

The Chief of Staff, Julius Debrah, has stated that the role of the government in wealth generation is both facilitative and participative, achieved through targeted business policies and programmes.

According to the Chief of Staff, social democracy, also referred to as ‘welfare capitalism’ or a ‘social market economy’, entails a partnership between government and the private sector to drive development in the interest of vulnerable and excluded groups, as well as businesses and the middle class.

“I can say without equivocation that the role of the state is both facilitative of and participative in the generation of wealth through business policies and programmes,” he said.

The remarks were delivered in a keynote address read on his behalf at the maiden Social Democrats’ Convocation, organised by the Legal Green Association, at the moot court of the GIMPA Law School.

He noted that the first key facilitative intervention by the administration of President John Dramani Mahama has been the pursuit of macroeconomic stability, largely through fiscal discipline and appropriate regulatory policies.

This approach, he stated, has delivered exchange rate stability, declining inflation, lower interest rates, a reduced debt burden, and easing prices of goods and services. Inflation stood at 3.2 percent for March, and external reserves at US$14.5 billion, equivalent to 5.8 months of import cover.

These outcomes, he added, have lowered the cost of doing business and repositioned the country as an attractive investment destination.

He further explained that a second facilitative role of the administration is the delivery of social infrastructure.

“Our elders say if you want to rear chicken, you first need to build the chicken coop. The analogy here is that, if you want to promote the growth of business in your country, you must build the appropriate infrastructure,” he added.

The Chief of Staff also outlined key linkages between social democracy and governance. He stated that, as a social democratic government, the administration prioritises tangible delivery over rhetoric in providing critical ‘hen coop’ infrastructure. He pointed to investments in roads, hospitals, factories and schools as evidence of this approach.

He further argued that the administration is actively engaged in wealth generation, noting that several state enterprises previously on the brink of collapse or earmarked for divestiture have recorded significant turnarounds.

State-owned enterprises, including banks, manufacturing firms, and oil processing and marketing companies, are reporting unprecedented profit margins within a year, in contrast to the substantial losses recorded during the recent economic strain.

The Social Democrats’ Convocation was organised by the Legal Green Association in partnership with the Ghana Institute of Social Democracy. The event was attended by the Institute’s Rector, William Ahadzi, who delivered a lecture on the philosophy of social democracy. Other attendees included Benedica Lasi, Mustapha Gbande, Eric Adjei, and a range of other dignitaries.

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