Three (3) things collapsing economies like Ghana have in common.

Three (3) things collapsing economies like Ghana have in common

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In the wake of the Covid-19 pandemic and the ongoing war, it is easy for governments to shift the blame for their incompetence. Economies are collapsing and that is undisputed however other economies are also thriving thanks to their competence and hard work.

There are a lot of reasons why an economy can collapse. Corruption, for example, is one of the main culprits. Here are three (3) things collapsing economies like Ghana have in common:

When corruption is rampant in a country’s government, it becomes impossible to track how money is being spent and on what projects. When this happens, people don’t trust their government and start hoarding cash. Since people aren’t spending money, businesses lose revenue and eventually close down. This leads to more unemployment and less tax revenue for the government.

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The failure of the government is another cause of a collapsing economy. If a country’s leaders are corrupt or incompetent, they can’t effectively manage their country’s resources or protect the interests of its citizens. This can lead to riots and other unrest that destabilize the country further.

Another factor that often contributes to a collapsing economy is family and friends governance—when family members or close friends are able to run businesses or organizations without any oversight from outsiders because everyone knows each other so well (and usually has ties through marriage).

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This kind of governance can lead to nepotism (the practice of favouring relatives) which means that there are no checks on how much money these companies are taking in or how much they’re spending on themselves before paying taxes back into society at large

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