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Public sector productivity crisis undermining economy – Senyo Hosi warns

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The Convener of the OneGhana Movement, Senyo Hosi, has raised alarm over what he describes as a worsening productivity crisis within Ghana’s public sector.

He warned that declining real incomes and inefficiencies are undermining both economic performance and public trust.

Speaking on Newsfile on Saturday, March 21, Mr Hosi called for a fundamental rethink of the country’s economic management, urging a shift towards productivity, transparency, and private sector-led growth.

Mr Hosi painted a bleak picture of the labour environment, invoking remarks by former President John Agyekum Kufuor to describe what he sees as a dysfunctional system.

“We pretend to be paying, and workers pretend to be working,” he said, arguing that falling real incomes have eroded morale and contributed to declining productivity across the public sector.

He stressed that while labour concerns are legitimate, productivity has reached “an all-time low”, requiring urgent national attention.

The policy analyst criticised the tendency of policymakers to only raise productivity issues during wage negotiations, describing this as inconsistent and counterproductive.

“Why do we only discuss productivity when labour issues arise?” he asked.

He singled out the Management Development and Productivity Institute, questioning why it does not regularly publish comprehensive reports on public sector productivity to guide policy decisions.

Mr Hosi described the government’s goods and services expenditure as “a very sad story”, citing inefficiencies in basic spending areas such as utilities and administrative costs.

He also pointed to challenges within local government institutions, referencing past efforts to support governance initiatives during the tenure of Josephine Nkrumah, and suggesting that many assemblies continue to struggle with inefficiency.

“We pay a lot of people for them to just sit there,” he said. “That is counterproductive. It is irresponsible. It is not proper economics.”

Mr Hosi warned against the expansion of the public sector as a primary source of employment, describing such an approach as outdated.

“Government cannot be the uncle of employment,” he said, arguing that public sector jobs must generate measurable value to justify their cost.

He noted that increasing the wage bill often comes at the expense of investment, taxation efficiency, and borrowing capacity, underscoring the need for balance in fiscal policy.

Addressing claims that government borrowing is driven by wage payments, Mr Hosi rejected the characterisation as misleading.

“We do not borrow to pay salaries,” he explained. “We borrow to fund government expenditure, which includes salaries. That is what every country does.”

However, he emphasised that such spending must be matched by productivity gains to ensure economic sustainability.

Mr Hosi placed responsibility for low productivity squarely on the state, as the largest employer.

“Once you are the employer, productivity is your responsibility,” he said, questioning whether government is effectively managing its workforce.

He warned that a significant share of tax revenue is being absorbed by public sector compensation without corresponding output, creating an imbalance in the economy.

The OneGhana Movement convener called for greater transparency in public sector data, including a more comprehensive accounting of employment and liabilities across state-owned enterprises.

He noted discrepancies between broader government debt figures and official public debt statistics, suggesting that hidden obligations may be obscuring the true fiscal picture.

“We need to be very thorough and open about the data issues,” he urged.

Mr Hosi cautioned that declining real wages and weak productivity could encourage workers to seek alternative income sources, including unethical practices.

“If incomes continue to fall, people will find other ways to sustain themselves,” he said, warning that this could negatively affect both public service delivery and private sector efficiency.

Central to his argument was the need to reposition the private sector as the primary driver of economic growth and job creation.

“It will always depend on the private sector,” he said, expressing concern over what he described as a lack of clarity in government’s production strategy.

He criticised proposals suggesting increased state involvement in sectors such as energy, describing such approaches as “yesterday’s economics”.

“Governments have never proven to be sustainably efficient and productive,” he argued, advocating instead for a regulatory and enabling role for the state.

Mr Hosi urged policymakers to focus on unlocking value chains in key sectors, including natural resources such as gold and industrial materials like aluminium, to drive diversification and resilience.

He emphasised the importance of investing in public goods and regulatory frameworks that create opportunities for private sector participation.

“These are the things that build a resilient economy,” he said.

Mr Hosi expressed dissatisfaction with both the government and the opposition, accusing them of failing to deliver meaningful economic transformation.

“I am not impressed by either side,” he said, arguing that rhetoric on production has not been matched by action.

Despite his criticisms, Mr Hosi praised the Minority Leader Alexander Afenyo-Markin for his political leadership, describing him as an effective figure within the opposition party and cautioning against efforts to sideline him.

Mr Hosi called for a candid national dialogue on economic policy, stressing the need to move beyond political narratives towards practical solutions.

“We cannot run a 21st-century economy with 19th- or 20th-century thinking,” he said.

He warned that while recent fiscal measures may have stabilised the economy, long-term progress will depend on improving productivity, empowering the private sector, and implementing structural reforms.

Without such changes, he cautioned, Ghana risks stagnation despite short-term gains.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.


Source: www.myjoyonline.com
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