Ghana's constitutional review is at a critical stage, with the country considering a significant change to its presidential term. The Constitutional Review Committee (CRC), led by Prof Henry Kwasi Prempeh, recommends increasing the presidential term from four to five years, citing the current term's limitations in implementing policies. The government has agreed to this proposal and extended it to Parliament. Former President John Agyekum Kufuor supports the idea, arguing that a four-year cycle is insufficient to implement programs.
The debate on Ghana's presidential term centers around economic efficiency. In economics, the short run refers to a period of production with at least one fixed resource, while the long run allows for variable factors. A presidential term can be seen as a production cycle in governance. Proponents of a five-year term argue that it allows for more time to implement large infrastructure, industrialization, and fiscal reforms, reducing election costs and promoting policy continuity. These are valid long-run considerations, but economic theory suggests that more time may not necessarily mean more output.
The case for a five-year term is based on several arguments. Firstly, policy gestation requires more than three effective governing years to mature. Secondly, a five-year cycle reduces the frequency of election expenditure and its inflationary disruption. Thirdly, policy continuity could encourage long-run private investment. However, modern efficiency theory and goal-setting theory challenge this logic. A four-year term creates short-run discipline, with fixed time and factors of production that must be used efficiently.
The efficiency argument for a four-year term is based on several key points. Parkinson's Law states that work expands to fill the time available, and a four-year term creates pressure to use resources efficiently. Goal-setting theory shows that specific, difficult, time-bound goals produce higher performance than vague, long-term goals. A four-year contract with the people is a SMART goal, allowing for quarterly planning and accountability. This approach reduces moral hazard and allows voters to fire non-performing managers faster.
The principal-agent problem is another concern in the debate. In the long run, the agent (government) has more time to diverge from the principal's (citizen's) interest. A short-run contract of four years is a powerful monitoring tool, reducing the period where inefficiency can hide behind "we are still implementing." Extending the term to five years extends the period of potential inefficiency. The opportunity cost of bad governance is also higher in a five-year system, with Ghana losing 25% more time, an entire additional year of GDP growth, job creation, and institutional trust.
The article argues that Ghana's most celebrated economic turnarounds have happened under short-run pressure, not long-run comfort. Scarcity breeds innovation, and a four-year term forces efficiency to fit the cycle. Ghana's long-run development vision, including its 2057 vision and 30-year infrastructure plans, does not require a long-run presidency. Instead, it requires successive efficient short-run presidencies. The constitution should not change the length of the production cycle to accommodate inefficiency; it should force efficiency to fit the cycle.
In conclusion, the debate on Ghana's presidential term highlights the trade-offs between time and efficiency. While a five-year term may provide more time for policy implementation, it may also lead to inefficiency and complacency. A four-year term, on the other hand, creates short-run discipline and pressure to use resources efficiently. The article argues that Ghana should keep its four-year term to secure long-run development and efficiency.
Key points
- The Constitutional Review Committee recommends increasing the presidential term from four to five years.
- The debate on Ghana's presidential term centers around economic efficiency and governance.
- The article argues that a four-year term forces efficiency and is more suitable for Ghana's long-run development vision.
