Sunday, 2 July 2017

Why Do Ghana's Leaders Seldom Consider The Potential The Global Digital Economy Offers Our Younger Generations?

I was mystified and flabbergasted, in equal measure, when I read a news report that said the  senior minister, Hon. Yaw Osafo  Marfo, had said that if the bauxite in the Atewa forest is mined, care will be taken to ensure that "the rivers" (that take their watershed from there)  "are not harmed". Incredible.

The question is: Is the Hon. Yaw Osafo Marfo not aware that when forests sheltering watershed areas of river systems are severely degraded by harmful human activities, such as mining, those rivers eventually dry up? Amazing.

If he thinks that mining bauxite in the Atewa forest reserve will not have an apocalyptic effect on Ghanaian society that will lead to a disaster of biblical proportions, then the Hon. Yaw Osafo Marfo is simply  blind metaphorically -  and definitely unfit to be a member of  any government of this country that subscribes to the UN sustainable development goals agenda. God give some  of us patience. Amen.

With the greatest respect, those now running our country must step out of the shadow of conventional economic thinking, quickly, if they are to succeed in transforming Ghanaian society into a prosperous one.

At a time when global climate change is negatively impacting rural Ghana, why risk endangering the quality of life of present and future generations of our people - by allowing mining in the Atewa forest reserve (or any of Ghana's other  forest reserves for that matter), I ask?

Are the Hon. Yaw  Osafo Marfos of our country even aware, one wonders, that last year (2016) Thailand earned as much as  U.S.$71 billions from 31 million vistors? Could  we also not anchor a revamped ecotourism industry on what is left of our nation's priceless natural heritage and earn billions of dollars annually, too?

So why destroy our forests such as the all-important Atewa forest reserve - just to enable canny foreigners making empty promises  mine the minerals underneath them? Okyenman, yen enma, ensei da.

Have we lost our marbles as a people - to sit unconcerned and allow such an abomination for the short-term gain of greedy and powerful people that will prove to be a long-term disaster: as sure as day follows night? Haaba.

Why do so many of the members of Ghana's educated urban elites seldom do any  creative thinking? They wouldn't dare toy with our collective future - and that of future generations of our people -  in such crass fashion, if they actually did.

By the simple measure of abolishing personal income tax, for example, and making Ghana the nation with the lowest corporate tax rates in the world, will our nation not become a magnet and haven as the  domicile of many of  the world's biggest companies?

Ditto a desirable African home - for at least three months a year to qualify for residency  rights - to many of  the planet Earth's most innovative  and dynamic entrepreneurs?

And when they move the domicile of their businesses here, would that not spark an unprecedented economic boom here - as they build or purchase properties, employ talented young people and give sundry contracts to local companies?

Finally, do any of the genuises who  lead us, ever think of the potential offered by the  global digital economy, for the many underemployed and unemployed young people in our homeland Ghana, at all, one wonders? Ebeeii, enti mu ye colo saa?

For their benefit, and that of the many brilliant young minds who read this blog regularly, today,  we have culled and posted a article by Kosha Hada, entitled: "The Digital Economy - Let's Follow The Money".

Please  read on:

"The Digital Economy - Let's Follow The Money

Kosha Gada ,

Forbes Contributor

I analyze the Digital Economy and the behavioral shifts it has ignited

Opinions expressed by Forbes Contributors are their own.

In an earlier article, I described a framework for making sense of the Digital Economy – think of it as an ecosystem of technological infrastructure, big data, user interfaces, audience networks, new media and content.  I also alluded to how big the global Digital Economy is and where the money flows.  Let’s take a closer look

The Digital Economy is worth almost three trillion dollars today. To put it in context, this is about 30% of the S&P 500, six times the U.S.’ annual trade deficit or more than the GDP of the United Kingdom.  What’s more is that this entire value has been generated in the past 20 years since the launch of the Internet.

It has consolidated value at record speed. The path to half a trillion in 20 years or less is an extremely impressive feat – American free enterprise at its finest.  It means every single member of the Digital Economy was a startup less than two decades ago.  But equally interesting is how rapidly the path from startup to value consolidation has been.  The Digital Economy may still be in its adolescence but 9 companies currently generate 90% of its revenue and profits – Apple AAPL +0.26%, Google GOOGL -0.84%, Facebook FB -0.05% and Amazon (popularly known as the “four horsemen”), Microsoft MSFT +0.66%, and the four Chinese digital giants.  Everyone else you’ve heard about or think you’ve heard about (for example, Yahoo YHOO +%!, Twitter, eBay, Snapchat, Pinterest, Uber or others) is barely over 10% of this economy.

There is a bubble in there somewhere. A simple comparison of the market cap vs. revenue vs. operating profit generation of the top-25 digital companies reveals a few key insights:  Devices & Interfaces generate the majority of the profits but command just over a third of the value, Search earns its keep, while Social Media and e-Commerce underperform compared to their current valuations. Finally, Content, for all it's press and influence, is but a blip in the landscape.


What are some of the underlying causes of this historic path to digital value?  The answer sets up interesting dynamics and implications for current and future players looking to claim their space in this dynamic sector.  And believe it or not, it's quite simple.

Recommended by Forbes

The views expressed here are my own and are not endorsed by current or former employers, publishers or clients.

End of  culled article by Kosha Gada who is a Forbes contributor. Incidentally, it ought to be noted that opinions expressed by Forbes Contributors are entirely their own.

Post a Comment