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if you like to present a different perspective to a paticular topic or issue. send it to royaljbk@gmail.com or gabrielattamy@hotmail.com

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Increasing revenue from transport business in Ghana- looking at taxis

For some time now I have been wondering why taxi drivers would take same fare for a distance and half the distance.  Why should one have to pay 60p from Legon to Madina and same fare from ‘’Trinity’’ to Madina? Or why they charge 60p from the Legon police station to the campus and same from the police station to Okponglo junction. People who are price responsive and consciously match their utility to price like me may have wondered same. I have finally realised that it is in their own interest to charge according to distance covered rather than keep a flat rate for all distances. Think of the utility maximisation theory where a person equates utility to price, and will be willing to pay less for successive units of the commodity than for the earlier units.  Under this theory a consumer’s aim is to maximise utility. The consumer’s utility is maximised when the satisfaction they derive from consuming the commodity is equal to the price or cost they pay for it. ...
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Labour wastages in the public sector of Ghana

The inefficiency observed in the public and civil service in Ghana is often lamented by people in the fields of administration and economics. Let us expand this observation, the causes and some possible solutions. The government has the largest wage bill in the country, yet if the productivity of governmental organisations are measured and juxtaposed to those of the private sector, it will be revealed that the government is not getting what it should from the wages it pays. This should be a source of concern to the tax payer since this is an inefficient use of the taxes we pay from our hard earned incomes. If these inefficiencies are not removed the taxpayer would be slaving for a longer time before they get the desired benefits for which they pay taxes. The number of people in the public and civil service are too many in some departments and organisations and are too few in others. For this reason, one will often notice duplications in the roles played by many a civil servant. ...
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What is happening to the Ghanaian banking sector? Part 2

In this second part I propose a rough guide to determine where to take your deposits or savings. It won’t make you an expert but it would be a fine starting point. I stated e arlier  that banks lend to businesses who in turn pay interest. The stock exchange is a market where companies sell shares. That market reflects (or it is expected to reflect) what is happening to businesses in general. You have to watch that market as an investor even if you don’t hold any shares (the Composite Index). On a daily bases, the stock exchange reports the performance of the firms listed on the exchange. You should look out for the overall performance of the stock exchange as a signal of what kind of interest you should expect to receive on your deposit. The Ghana stock exchange rarely crosses 30% (per annum). This means that the guys who actually do “real work” don’t even get more than 30% in 12months. So if the bank or savings and loans company or pyramid scheme tells you they can pay you 3...
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