Legal systems must work efficiently to improve financial development – First Female Economics Professor 

An Economics lecturer at the Kwame Nkrumah University of Science and Technology, Prof. Grace Asante Nkansa, is requesting that the government and the judiciary work effectively to improve the financial development of the country.

Prof. Asante Nkansa observes financial structural adjustment programs and other measures are yet to have the requisite impact in the financial sector for economic growth.

Her request is in line with a study she conducted on the impact of financial development on economic growth in sub-Saharan Africa.

Prof. Asante Nkansa posits that an effective judiciary service system, a stable political dispensation and regulatory quality would positively affect financial development on economic growth.

“Because looking at the institutional quality, the legal system, when the legal system is working well, how well does it complement the financial development so that it can enhance growth? We are looking at the legal system, partnership, and business growth. They are all borders of the legal system of the economy. So when the legal system is working, you realize that it will complement the financial development, and then the growth will come.

“If the private sector, the partnership, the corporate bodies, and all those, until they are working well, if the legal system, let’s say, you form a partnership with somebody, and there are financial issues, the judiciary system settles it on time. Can you imagine how it will compel people, or maybe call in foreign investments and other things, so that at least the financial systems that we have, it will complement it, and then growth will come,” she stated.

Prof Asante Nkansa also cites political stability in a country that attracts foreign investments to thrive in the financial sector.

“How stable is our political system? If it works well, they serve as signals. So when they see that the political system is stable, they serve as signals to the rest of the world, and people will pull in their investment. We don’t need to be advertising for foreign direct investment. What the government does, can call for the foreign direct investment. Because they all want to grow their business, they all want to make profits. So if the government is stable, and all these things are in place, you don’t need to be giving these tax concessions and other things that we do. They will come,” she said.