Developing productive capacity, surest way to a strong economy – Veep

Vice-president Mahamudu Bawumia has said a strong productive capacity built on quality education, science, technology and innovation is the surest way to build a stronger economy. He said it was a panacea to moving from a labour intensive economy to a skills-intensive one. He stated that the country’s economic growth performance historically had been driven by resource exploitation and exports of unprocessed raw materials and that was a danger “that can push us back into a low income development trap”. He added that raw commodity exports and the lack of diversification in technology, especially in the production activities on the farm, underscore our weak productive capacities. At the 3rd Advancement Lecture Series at the University of Cape Coast on October 4, 2017, he stressed that, undoubtedly, a country‘s economy could attain Lower Middle Income Country (LMIC) status by tapping into its natural resource endowments, undertaking appropriate market and financial sector reforms and opening up external trade opportunities through good macroeconomic management and through good and stable governance. “However, building a strong productive capacity would be the continued march to full middle income and further to high income economy,” he argued. Addressing participants on the theme: “Developing stronger economies for the African continent: the missing link,” he explained that the vision of the government to make the country’s economy strong to move to a high income economy would rely on building the human capabilities through equality education and science, technology and innovation. That, he believed, would lessen the burden the country put on the resources and move from labour intensive economy to skills-intensive one. Human capacity building Dr Bawumia emphasised that education was the bedrock of the country’s problem-solving skills of creative thinking and generator of ideas. Technological progress, according to him, was generated by the emergence of new ideas which were born of quality education. He mentioned that Singapore, Norway and Mauritius continued to develop their human capital through higher education and training. “Their high technology boom, automobiles, ship building, steel and rapid development owe much to their rigorous education system, a highly motivated and educated population,” he added. Unfortunately for the country, the educational system was one inherited from the colonial masters, which had been structured to serve colonial needs and excluded the majority of the population. Dr Bawumia explained that it also did not give room for creativity and innovation. To ensure quality education which fosters technology and innovation, the vice-president said the idea of inclusion was critical. That, he believed, would represent a paradigm shift from the past where many people were excluded from fully participating in the economy or realising their full potential. “This is the reason why the government has introduced free SHS policy to ensure that the greatest number of young people gain access to pre-university education, since education is imperative in a world of rapid technological innovations. “This policy is going to include people who though may have creative minds and need nurturing but are financially limited to afford SHS education,” he stated. Dr Bawumia, however, said the implementation of the free SHS policy was not a bargain for low quality education. He added that innovative entrepreneurs and problem solvers in all aspects of our lives, including how we manage our natural resources, was the first step to building a productive capacity. He finally called on the various educational institutions, especially the technical and tertiary institutions, to overhaul their educational system to give room for creativity, technological inventions and innovative ideas.