INTRODUCTION
Violent conflicts have killed and displaced more people in Africa than in any other continent in recent decades and this has greatly challenged the achievement of the Sustainable Development Goals (SDGs) in the affected countries. There remain, however, longstanding conflicts involving intra- and inter-ethnic rivalries, which periodically break into violence. Scholars have suggested that conflicts are always in any society and are essential components because different organizations, classes, clans, groups, and individuals within every human society have competing and conflicting interests. This implies that conflict is an integral part of human behavior and without it, there can be no movement or change in any society. It prevents stagnation, stimulates interest and curiosity, and is the medium through which problems can be aired and solutions arrive at. Thus, it’s normal to everyday life and is not bad. However, it is the means that often helps to resolve conflicts that pose a threat to life and the environment.
Violent conflicts, however, are generally destructive of persons and property. It is suggested that the estimated cost involved in each conflict almost equals the value of annual development aid worldwide. Development and security are interrelated, and one cannot be achieved without the other. Over the last quarter of a century, more than 20 African countries in Sub-Saharan Africa (SSA) have experienced at least one period of violent conflict. According to some scholars, more than 20 percent of the population of Africa now lives in countries that have experienced violent conflicts. Similarly, the past two decades have seen violent conflicts take an increasing toll on the hopes for Africa’s development, and almost half of all African countries are affected directly or indirectly by conflicts.
Even though Ghana has often been described internationally as one of the most stable, democratic, and peaceful countries in Africa, this image is marred by destructive ethnic and chieftaincy conflicts that are extremely violent like the ongoing conflict in Bawku in the upper east region of Ghana. This negatively affects economic development- destruction of farms and produce; prevention of cultivation of lands; disruption of economic activities; and discouragement of investment, labor flow, and tourism. The consequences of this violent conflict include a slowdown in economic activities, frequent losses of life and wealth, destruction of infrastructure and settlements, indiscipline, rural-urban migration as well as mass displacement of people.
This unfortunate incident therefore poses a fiscal risk to any fiscal consolidation effort embarked on by the Government to promote fiscal discipline within the fiscal framework, that aimed to improve the welfare of citizens. This is because conflicts disrupt development and destroy resources and development projects. Implied, a lot of earmarked resources for meaningful development projects and programs to improve the living conditions of people would rather be expended on the maintenance of peace and security because of conflicts, notably chieftaincy, and ethnicity at the expense of development projects under the BIG PUSH Agenda. Since the Municipal Assembly does not have the financial muscle to shoulder such a negative externality. Unfortunately, Ghana is at a crossroad, and it is currently engaged in an IMF program aimed at consolidating its fiscal to promote growth and improve the welfare of its citizens due to its compounded debts stock, rising inflation, and weak currency. Therefore, if this conflict is not managed and resolved it will distract the expenditure rationalization effort of the government, and the 2025 budget would be challenged with fiscal implementation. As there would be continuous widening of the fiscal deficit which will lead to potential debt default.
H.A. HAMID, PhD. / MoF/ILGS-ACCRA/[email protected]
