Trust Deficit: The hidden cost to business and growth

By Prof. Samuel Lartey

www.pefghana.org

When politics becomes a punchline, Ghana confronts a challenge far deeper than economic slowdown alone: the steady erosion of public trust in democratic leadership. Rebuilding the economy and revitalising businesses must therefore proceed alongside the restoration of seriousness, accountability, and credibility in governance.

Responsible leadership, transparent decision-making, and a genuine commitment to the public good are not abstract ideals; they are prerequisites for rebuilding confidence in Ghana’s democracy and laying a durable foundation for sustainable economic growth.

Across many societies navigating development and democratic consolidation, political speeches, actions, and events are increasingly dismissed as “mere politics,” insubstantial, self-serving, and disconnected from citizens’ lived realities. In Ghana, this perception carries tangible economic consequences. Citizens, entrepreneurs, businesses, and civil society actors are recalibrating their engagement with a political system that many believe no longer delivers on its promises or reflects their aspirations.

Understanding why this trust deficit persists, and how it can be reversed, requires a clear-eyed examination of the roots of political distrust, the widening communication gap between leaders and citizens, and the critical distinction between meaningful governance and political theatre. Closing this gap is not only a democratic imperative but also an economic one, essential to restoring business confidence, investment momentum, and long-term growth.

Political Distrust

In established democracies, a certain level of political cynicism exists, but it often coexists with functional institutions that deliver public services reliably and provide accountability. In many developing or transitional democracies, the gap between political rhetoric and visible outcomes is wider. Ghana’s experience illustrates this gap clearly:

Recent Afrobarometer data show that 74 per cent of Ghanaians say corruption has increased somewhat or a lot in the past few years, while trust in key state institutions, such as Parliament, the courts, and elected officials, has declined significantly over the past decade. More than 70 percent of citizens believe the political system offers little space for ordinary people to influence decision-making.

This broad sense of disempowerment reinforces the idea that political actors are detached from citizens’ lived realities, making speeches and campaigns seem hollow or self-serving.

Compounding this distrust is the widespread perception of corruption. Ghana’s score on Transparency International’s Corruption Perception Index hovered around 42 out of 100 in 2024, ranking 80th out of 180 countries. This reflects persistent concerns about misuse of public office and weak accountability.

These conditions are not unique to Ghana; however, they are typical of transitional democracies where institutional capacity is still strengthening, governance systems are evolving, and economic pressures, such as unemployment and rising living costs, intensify public frustration. The result is not only anger at political actors, but also a broader belief that politics is about power rather than progress.

Communicate Without Being Dismissed as “Political”

The label political is often used pejoratively when messaging appears performative or self-serving. Leaders can reduce this effect and rebuild trust through the following approaches:

1. Transparent and Evidence-Based Communication

Statements grounded in verifiable facts, clear timelines, and measurable outcomes signal sincerity. For example, publishing data on progress in public sector reforms, such as the implementation rates of the Right to Information Act since its enforcement in 2020, demonstrates substance over slogans.

2. Consistent Action Linked to Public Priorities

Ghanaians consistently rank economic wellbeing, job creation, and corruption reduction as top national concerns. When leaders align their messaging with sustained actions, such as reforms that simplify business registration or protect investor rights, they demonstrate responsiveness rather than rhetoric.

A practical illustration is the Coronavirus Alleviation Programme Business Support Scheme, launched in 2020, which provided approximately GH¢1 billion in support to micro, small, and medium-sized enterprises affected by COVID-19. The initiative signalled tangible political commitment to economic survival during crisis conditions.

3. Inclusive Engagement and Dialogue Platforms

When citizens perceive that they can participate meaningfully, for example, through town hall meetings, stakeholder consultations, and participatory budgeting processes, political communication becomes less abstract and more actionable.

Leaders who encourage open dialogue, publish implementation reports, and subject policies to scrutiny by independent media and civil society strengthen the legitimacy of their political communication.

Distinguishing Genuine Political Action from Empty Political Theatre

Political theatre occurs when actions are symbolic yet have no measurable impact. Genuine political action, by contrast, produces sustained and verifiable change. Several indicators help distinguish between the two:

Policy Implementation and Impact Metrics

Genuine governance is reflected not in rhetoric but in measurable outcomes such as budget execution reports, employment statistics, infrastructure completion rates and service delivery performance. For example, the Ghana Statistical Service’s Governance Series Wave 1 Report (2022) found that 18.4?% of Ghanaians who interacted with public officials paid bribes, primarily in cash, to access public services, highlighting persistent structural challenges in governance and public service delivery.

This data underscores the importance of robust policy implementation and systemic reform over ceremonial pronouncements. Transparent metrics and accountability mechanisms, ranging from anti-corruption enforcement to citizen-centric service delivery benchmarks, are essential for building public trust and improving governance outcomes, which in turn directly influence economic performance and business confidence.

Institutional Integrity and Accountability

Political theatre thrives on slogans and publicity. Genuine political action depends on strong institutions and enforcement mechanisms. The establishment and operations of institutions such as the Office of the Special Prosecutor illustrate attempts to shift governance from rhetoric toward accountability, even as public expectations continue to rise.

Stakeholder Trust and Feedback Loops

Citizens, businesses, and civil society serve as critical indicators of authenticity. When trust improves due to transparency, predictability, and consistency, political messaging begins to regain credibility and public relevance.

Partners in Governance, Not Bystanders

The perception of politics influences not only public discourse but also economic performance and national development.

For businesses and entrepreneurs, predictable governance and institutional integrity are prerequisites for investment. Declining trust in public institutions, particularly courts, regulatory agencies, and tax authorities, increases perceived risk, raises transaction costs, and discourages both domestic and foreign investment.

Businesses flourish in environments where contracts are enforced fairly, licensing processes are transparent, tax systems are predictable, and corruption is actively discouraged. Achieving this requires sustained policy reform and institutional discipline rather than election cycle rhetoric.

Civil society organisations play a crucial intermediary role between citizens and the state. Ghana’s active civil society and independent media have historically strengthened democratic accountability and protected civic freedoms. However, prolonged public frustration and political fatigue risk weakening citizen participation, thereby undermining democratic resilience.

Conclusion:

A mature democracy transforms politics from a contest of promises into a platform for accountability, service delivery, and shared national purpose. For Ghana, a country widely respected for its democratic stability, the pressing challenge is not the absence of political discourse, but the credibility and outcomes of that discourse.

When political communication is grounded in evidence, matched by consistent action, and aligned with the everyday realities of citizens, it ceases to be dismissed as mere politics. Instead, it becomes a catalyst for economic confidence, entrepreneurial growth, civil society engagement, and sustainable national development.

Ultimately, Ghana’s democratic advancement will depend not on louder political voices but on stronger institutions, credible leadership, and measurable results that convert public trust into shared progress.

The post Trust Deficit: The hidden cost to business and growth appeared first on The Business & Financial Times.

Read Full Story