The Chairman of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson, has put forward a new method for evaluating Ghana’s economic performance. This proposed framework, called “3D Growth,” aims to measure economic health by simultaneously tracking Gross Domestic Product (GDP) expansion, the creation of jobs, and improvements in wages. Dr. Thompson argues that Ghana’s traditional focus on GDP alone is insufficient for understanding true national progress.
He highlighted that GDP growth does not always translate into more employment or higher incomes for citizens. The“3D Growth” model demands that economic advancement be judged not only on how much is produced. It also assesses how well the economy generates meaningful work and raises living standards. Dr. Thompson stressed that growth without jobs or rising incomes is not sustainable. He warned that without this broader view, economic gains risk becoming disconnected from the daily lives of ordinary Ghanaians. This is especially true for young people entering the job market each year.
This proposal comes amidst ongoing discussions about Ghana’s economic structure. The country has significant structural challenges. For instance, approximately 92 percent of businesses are in the informal sector. These informal businesses provide about 80 percent of jobs. However, they contribute only about 27 percent of the nation's GDP. This highlights a gap between employment generation and economic output in official measures. Dr. Thompson believes the“3D Growth” agenda requires a strong push for increased productivity. It also needs more businesses to formalize their operations and add greater value to goods and services.
Dr. Thompson explained that investments in infrastructure, like roads and power systems, must also be judged by their impact on job creation and efficiency. He noted that sectors such as electricity, water, transport, and digital infrastructure are crucial. Yet, their development must be supported by robust institutions and consistent policies. He also pointed out issues with policy implementation. Poor coordination between planning bodies and those executing plans has weakened Ghana’s development efforts. He called for better alignment between national development plans and budget allocations. Improved accountability from public institutions is also necessary.
This call for a more inclusive economic measurement system resonates with other leaders. Mr. Ishmael Yamson, CEO of Ishmael Yamson and Associates, also spoke at the IYA Business Roundtable. He urged Africa to move past discussions of potential. He advocated for aggressive action and retaining wealth within the continent. Mr. Yamson criticized the reliance on GDP, stating it can hide economic weaknesses. He noted that when foreign companies extract resources and send profits overseas, GDP rises. However, little value remains in African economies.
The implications of embracing the “3D Growth” model are significant. It could lead to policy shifts. These shifts might prioritize job-creating industries and sector-specific support. It also suggests a need for better data collection. This ensures that employment and wage data are accurately captured alongside GDP figures. Policymakers and international investors will closely watch how this model is adopted. It could influence investment decisions and aid allocation towards more people-centered economic development strategies.