A Development Economist at the University of Ghana, Dr. Hayford Mensah Ayerakwa, has explained that economic management, like medical treatment, must begin with proper diagnosis before solutions are applied.
Speaking on Bryt Adekyee mu Nsem, he said that just as a doctor must first identify what disease is affecting a patient before recommending surgery or medication, governments must first carefully assess economic conditions before introducing policies.
According to Dr. Ayerakwa, countries use what are known as macroeconomic indicators to measure whether an economy is improving or declining.
These indicators include inflation rate, employment and unemployment levels, interest rates, and overall production. He explained that these indicators help governments understand whether the economy is growing and whether policies being implemented are yielding results.
He further clarified that there is a clear difference between economic growth and economic development, a distinction that is often misunderstood by the public.
Economic growth, he said, refers to an increase in a country’s income and financial activity, while economic development focuses on how that growth improves the living standards of citizens.
He emphasized that growth is usually the first step and that development follows when the benefits of that growth reach ordinary people.
Source:Mybrytfmonline.com/Amuzu Priscilla
