Pres. Ali spotlights five economic principles underpinning his development plan
President Irfaan Ali in a passionate address Thursday night, reaffirmed his administration’s development plan and explained that investments made are creating value for people.
Days before, on Tuesday, the Ali-led government commemorated its third year in office. Though the President and other members of the government championed the strides made, some people have criticized the administration’s development plan.
Dr. Ali, however, sought to explain how the government’s plan is translating into tangible and intangible benefits for people.
He explained that there are five economic principles underpinning his government’s plan. Those are: creating greater transferable value through investments, stimulating job creation, providing people with more disposable income, helping people to generate wealth and attracting private sector investments.
And the President explained exactly how these interrelated principles manifest in the government’s actions.
“When the government invests in infrastructure, it is not that you will eat the school but it creates what you call transferable value,” President Ali said during his live Thursday night address.
In simpler terms, the President explained that investments in infrastructure- be it roads, schools or housing schemes- increases the value of people’s property nearby. As such, any investment the government makes in public infrastructure translates to an increased property value for people in the communities.
This first principle, he said, results in the provision of more services and the creation of jobs both in the construction phase and afterward, when the facilities are open.
In turn, increased transferable value and job creation create value for people- another principle that the government’s overarching development plan is underpinned by.
Beyond investments in projects, the Head of State pointed out his government’s keen focus on supporting vulnerable groups such as farmers in need and small business owners.
Such groups of people received cash grants which, the President highlighted, increases disposable income that will eventually stimulate economic activity needed to drive the country’s growth.
Further, he noted that these direct interventions help people generate wealth. Unless people are empowered, he said they will be unable to elevate themselves and realise social mobility.
And the final point he made on the economics behind the government’s ongoing plan is that substantial government investments attract private investment. He referenced the construction of at least six internationally-branded hotels, signaling high private sector interest here.
“This did not happen by accident, this happened by a very structured approach… that is, by the policy of the government to drive investments,” Dr. Ali said.
Aside from explaining the economic rationale underpinning the government’s plan, Dr. Ali reminded citizens of some of the plans his government is pursuing.
In keeping with the People’s Progressive Party Civic (PPP/C) manifesto published ahead of the 2020 General and Regional Elections, he said an ambitious housing drive to distribute 50,000 house lots, executing massive infrastructural projects and developing top quality health and education systems are key plans.