There is a mounting misunderstanding in the country as to how much our debt level is or the cost of government debt. A recent case in point is the media war between the President of the Republic of Ghana, His Excellency John Dramani Mahama and Dr. Mahmudu Bawumia, Vice-Presidential Candidate for the New Patriotic Party\u2019s (NPP) flagbearer Nana Akuffo-Addo. The President asserted that it was mathematically impossible for his government to borrow $37billion as argued out by Dr. Bawumia.<\/p>\n
His Excellency is of the view that Ghana\u2019s debt stock is about $24billion.\u00a0 Many are at sea as to who is giving Ghanaians the correct figures or whose methodology is optimum in estimating the debt figures. Do we need a debate to know what Ghana\u2019s debt stock level is? We wouldn\u2019t have gotten to this level if our institutions were providing Ghanaians with reliable and consistent economic data. We live in a country where dissemination of data lies in the bosom of politicians only. The late William Edwards Deming, one of the world\u2019s greatest statisticians once said, \u201cIn God we trust, all others must bring data.<\/em>\u201d How can meaningful economic policies and decision making be driven without accurate and consistent economic data?<\/p>\n The lack of gathering and dissemination of economic data has been the bane to the socioeconomic development of this country as far back as the post-independence period. All the successive leaders from the post-independence era have paid little attention to this canker. If it were possible for anyone at the point just by clicking a computer mouse to access both the current and historical debt stock data, we wouldn\u2019t need any education from the politicians. Besides, to my fellow researchers, can you envisage working with a debt stock data that has a different methodology for estimating it values? Such research will be predisposed and unreliable.<\/p>\n As a result, we must not only ensure the provision of data but also, accuracy and reliability. \u00a0According to the Organization for Economic Cooperation and Development (OCED), of its member nations and partners, South Africa is the only country in Africa with the highest investment in research and development (R&D) at 0.73% of GDP (as at 2012). This is the reason why they cannot be easily compared with most of the other countries across Africa. The importance of data, research and development as a driver of economic growth must not be understated.<\/p>\n In the developed economies like USA, Canada, and Germany, state institutions, most of which are independent of government, keep the public up-to-date on economic performance through a press release. Such data are usually basic macroeconomic fundamentals, including employment, retail sales, GDP, consumer confidence, personal consumption expenditure and consumer price index. The only macroeconomic indicator popular in the news in Ghana is inflation. Therefore, the question is why not publicly make available updates of the other basic economic indicators? Why are we unable to produce regular estimates of economic data and government finance statistics?<\/p>\n Data, technology and innovation are the driving force of change in the world economy. Governments and central banks base most if not all their decisions on data. Fiscal and monetary policies, inflation targeting, social security and other policy measures are driven by the latest and accurate statistics. A country\u2019s macroeconomic and in some cases microeconomic decision making are based on economic data.\u00a0 Strategic use of data tells the story of what happened and what is expected to happen\u2014predictions, forecasting and projections are used to make wide-range budgeting and planning decisions for both business and government.<\/p>\n In the era of accumulation of big data and technology, governments in the most developed world are using analytics to drive smarter decisions by digging out insights from the vast amounts of data within government agencies. In the field of health care, accurate data is used to improve health care delivery and reduce health insurance cost. Organizations investing in big data and adopting a measurement culture boast of higher productivity and profits. For instance, the big industries in the world are using analytics to optimize workforce performance, predict turnover, hire and develop performers for critical roles to meet business outcomes. This eliminates reactiveness and promotes a proactive approach to decision making. Do you know that the perennial flooding in Accra would have been easily solved using data and predictive analytics? Ghana needs to wake up to meet the reality in the world economy; we are lagging behind and thus have lots of catching up to do.<\/p>\n The government must invest strategically in research infrastructure to eliminate the obstacles hindering proper accumulation and dissemination of data in the country. Not surprisingly, the developed economies appreciate the need for investment in data, research, and development: Countries like Japan, Canada, New Zealand, USA, to name but a few have agencies responsible for Business, Research, Development, Technology, and Innovation. Japan, Canada and the rest of G7 countries have levels of R&D investment over 1% of GDP (as at 2014). Regrettably, in Ghana, a country which is categorized as a developing country does not have a ministry dedicated solely to research and development.<\/p>\n The Measurement, Learning and Evaluation (MLE) Unit recently inaugurated by the Institute of Statistical, Social and Economic Research (ISSER) is a step in the right direction, but more must be done on the front of investment in the collection of data, research, and development in order to bridge the data gap. During the launch of the MLE unit, Vice-Chancellor of the University of Ghana, Prof. Ernest Aryeetey emphasized the expensive nature of collecting data and how researchers are entrusted with using data more efficiently.<\/p>\n Apart from Ghana Statistical Service, ISSER is the only institute gathering more data in the country. The other research institutes and think-tanks such as the Centre for Social Policy Studies of University of Ghana, African Center for Economic Transformation (ACET), African Centre for Energy Policy (ACEP), the Institute of Economic Affairs (IEA) , Imani Centre for Policy & Education, to mention but a few are also equally doing well regarding research, economic policy discussions and recommendations. \u00a0I must commend them!<\/p>\n Further, the issue with the lack of gathering and dissemination of data is part of the larger narrative of an adverse effect of the politicization of our state institutions in the country. Government units are prevented from debating stories about government data for fear of intimidation and criticism. William Edwards Deming, once again said, \u201cWhenever there is fear, you will get wrong figures.<\/em>\u201d<\/p>\n Ghanaians drag you to the gutters when the news doesn\u2019t favour their political party. Regardless, I urge them to speak the truth as the truth will always stand even though it hurts\u2014posterity will judge them right.\u00a0 In our country, almost all the state agencies are being run by politicians instead of the experts and this has resulted in the crisis we find ourselves in now. Lack of proper dissemination of data poses a threat to our functioning democracy, threatens the economy, industries, and Ghana\u2019s ability to compete internationally. Citizens are unable to keep government accountable and many researchers are struggling to access data for analysis.\u00a0 Most researchers always resort to external organisations such as the World Bank to access data.<\/p>\n The government needs to promote \u201copen data\u201d, invest in knowledge and human quality development to maximize the use of data in the country. William Edwards Deming, the statistician once again said, \u201cWithout data you\u2019re just another person with an opinion.\u201d The OECD, International Monetary Fund (IMF) and World Bank have all led the charge for strengthening data for policy making and open-platform disclosures of data.\u00a0 Even in the U.S., President Barack Obama\u2019s 2016 budget<\/a><\/strong><\/span> calls for a prominence to make federal datasets easily accessible to improve the use of evidence to enhance program performance.<\/p>\n Policy making processes are usually decided on the basis of a rational assessment of data and not opinions. In Ghana, we do a lot of talking, but no action. The IMF through the support of the United Kingdom Department for International Development (DFID) is providing technical assistance to many African countries, including Ghana to consolidate and integrate macroeconomic statistics in order to enhance better economic decisions and dissemination of data.<\/p>\n However, we need to take charge as a country to improve our own inefficiencies in collecting both micro and macro level data, reduce data gaps and invest in research and development. This will augment provision of data for the public at large, the many stakeholders\u2014international businesses, think-tanks, academia, investors, and even the government. Easy access to data will enhance evidence-based policy processes, especially research and decision making; promote sharing of knowledge and information, and foster healthy debate and discussion of the numerous issues in the country.<\/p>\n –<\/p>\n By:\u00a0Eric Kofi Kontoh<\/p>\n