A Professor of Economics from the Cambridge University, Prof Gareth Austin is warning that some factories under government’s flagship One District, One Factory program could fail.
His prediction is premised on the industrialization modules adopted by developed countries across the world.
The economic historian told the host of Morning Starr, Francis Abban that industrializing all 216 districts of the country may not yield the needed results. “If you look at the way countries have industrialized, including the recent examples in Asia, as well as in Europe or the US, they never industrialize over the whole country. They were always certain areas of the country where the factories were,” he observed.
Government intends building a factory in every district to create jobs and boost their local economies. This policy will, however, be private sector led, according to government. The policy was officially launched in August with the president cutting sod for the construction of a pineapple factory at Ekumfi in the Central region.
The factory when completed in 2018, should employ some 4,000 people directly while engaging 5,000 out growers. The president has strongly signaled that he will restructure the economy from its current dependence on export of raw materials to a value added industrial economy. “Raw material producing economies do not produce prosperity for the masses,” he stressed at the launch of the policy.
But Prof Austin believes the industrialization of all districts of the country may not drive government’s industrialization agenda as hoped. “…So I think if it became dogmatic that every district must have a factory, some of those factories frankly won’t be profitable”, he cautioned.
Prof Austin is in the country to deliver a keynote address at a public lecture being organized by the Institute of Economic Affairs (IEA).
Source: Ghana/Starrfmonline.com/103.5FM/Tawakalitu Braimah
