Institutions, Public, private sectors
Countries have come to the realization that for efficient development to occur the roles of the state and those of the private sector must be clear. The world leaders met in 2000 and they came up with the Millennium Development Goals (MDG's) which would be achieved through the participation of both the public and private sectors. Their main aims were to eradicate extreme poverty, disease, hunger, gender inequalities, to enhance proper sanitation and availability of clean water to promote development.
The private sector aims at profit maximization and efficient utilization of resources. The private sector generates employment opportunities and thus increases government revenues. Furthermore, the private sector induces the public sector to invest in infrastructure development.
The state must invest greatly in infrastructure development for instance roads, power, health and education services, environmental sustainability and water provision. Other roles of the state include balancing regional developments, redistributing the national income, enforcing property rights and promoting competition in the private sectors (Brautigam, 2008). The resources for infrastructural development mostly come from taxation and foreign aid. The state also has the obligation to provide security for its people as this forms the basis on which development occurs.
[...] There are several factors resulting to the evasion of democracy in Africa. Selfish interests drive the leaders and at the same time, they ride on the ignorance of the citizens. In order to break the chain of assumed and the real democracy, the citizens must know how to distinguish the two (Prempeh, July 2012). The achievement of democracy requires an urgent paradigm shift in the politics of these African states. Bibliography Bratton, M. (2007). Formal Versus Informal Institutions in Africa. Journal of Democracy , 96-110. Diksha, B. (11 Sep 2013). [...]
[...] It is imperative to understand that investment in the public sector stimulates the investment in the private sector. The state also acts as a link between the locals and other development partners. This has been possible through Foreign Direct Investments (FDIs). For instance, China is currently Africa's greatest development partner with investments worth over $50 billion. The United States is also a development partner for African countries. Private investment promotes development due to the availability of capital. In their relationship with China Ghana stand to lose since their exports which are mostly primary inputs earn less while China export manufactured goods to Ghana thus earning more. [...]
[...] After the government develops the infrastructure, the private sector is able to invest in various activities aimed at development. For instance, agricultural activities using modern and efficient technologies thus increase the productivity and creating employment opportunities for the locals. Furthermore, the private sector has the role of educating the citizens on the need to sustain the available infrastructure. For example, Wateraid.com and Water.org in Ghana educate the people on the need to maintain hygiene and proper waste management techniques in order to reduce the high incidences of diseases (Diksha, 2013). [...]
[...] However, they tend to condemn the practice if the benefits accrue to other people and this is a sign of hypocrisy. This informal institution is common in most African states where selfish interests drive governance. The party that wins the elections control a larger proportion of the state affairs with the allocation of opportunities being based on loyalty to the ruling party. Another characteristic of informal institution is corruption. According to the authors, democracy should promote accountability and aid in taming the greed of those in authority (Prempeh, July 2012) . [...]
[...] Managing Ghana's Waste. Prempeh, E. G.-B. (July 2012). Oil, Politics and Ghana's Democracy. Journal of Democracy , 94-108. [...]
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