When I saw the Executive Director of the Institute for Fiscal Studies (IFS), Professor Newman Kusi, making a presentation on ‘Ghana’s growing public debt-implications for the economy’, at a roundtable discussion last Monday, I blinked.
I thought I was seeing Dr Mahamudu Bawumia as the presenter.
The words that were coming out of his mouth seemed to the very words of Dr Bawumia in those many public forums of his before the 2016 elections.
I was at one of them and, by God, how we applauded! I applauded not because the target of his words was the National Democratic Congress (NDC) government; I loved the words because they showed that, at least, someone had the answers.
Like pre-election Bawumia, the professor’s words were apocalyptic, warning of an impending economic/financial doomsday for Ghana.
He was reeling off facts and figures that projected the country’s interest payment on public debt to hit GH¢69 billion by end of year; meaning that 41 pesewas of every cedi that the government mobilises as revenue is being spent to pay interest on our debt.
Something in the prof.’s next sentence caused me to shift in my seat and shake my head.
Looking for the causes, the IFS boss identified what he said was “the tendency of the government’s consistent borrowing”.
Reminds you of something somebody said a year ago?
What should have come to me as comfort had a rather opposite effect.
Hear the prof.’s recommendations:
“A comprehensive debt management strategy that puts a cap on the levels of gross concessional and non-concessional borrowing;
“Limits to be placed on contracting non-concessional loans that can become liabilities to government;
“Call for a Debt Audit Commission - to undertake surveillance on monies borrowed and how it was expended to generate the needed revenue.”
The very words (almost) that used to ring out of Bawumia’s well researched good intentions before the elections. Why are we being fed the same recommendations one year after Bawumia is now in the economic planning saddle?
It took an economist to prove or remind me that almost all our Finance and Economic Planning Ministers had been saying the same things since Kwame Nkrumah.
Which also reminded me. General (later Mr) I.K. Acheampong overthrew Dr K. A. Busia because the latter’s Progress Party government had devalued the cedi. When Rawlings overthrew the Supreme Military Council (SMC), he accused Acheampong/Akuffo’s SMC of devaluing the cedi.
In this same week, the Netherlands Ambassador, Mr Ron Striker, launching the first Value Added Agriculture Expo in West Africa, repeated that Ghana’s food import bill stood at two million dollars a year, made up mainly of rice, sugar, frozen chicken and oil – products which he was very certain we could produce and even import, given that the agric sector employed about half of the population and contributes to one-fifth of the nation’s gross domestic product (GDP).
Has Dr Bawumia, as the Head of the Economic Management Team, failed? This man is one of the most admired Vice-Presidents of our time.
I should say I personally admire the measures he is putting in place at the ports, Digital Addressing System, National Identification Authority etc. These are sure (admittedly not the only) ways to salvation.
Before his unfortunate illness, from which by God’s mercy he has been delivered, the gossip was that he could not sleep: that the sheer size of the nation’s burden became demons that chased the very sleep out of his eyes.
Be that as it may, however, would it be out of place to suggest at as soon as he is able to muster the physical strength, he should call a press conference to place the hearts of Ghanaians back in our chest: as I write, our hearts are in our mouth.
Has Bawumia failed? I personally don’t think so. One year is too short to evaluate a government that has a four-year mandate.
For a government that was voted to power on the back of serious economic crisis, powered by corruption allegations, what I suspect Akufo Addo is doing is to bide his time and lay the foundations with a bitter pill for two years, endure the criticism and “show” Ghanaians with effect from his third year.
Having said all of the above, I am convinced that Dr Bawumia owes Ghanaians a press conference. A few weeks before he was taken ill, he told the media that there is no government anywhere in the world that does not borrow; that it depends on how the loan is used to the benefit of the people.
At this press conference, Dr Bawumia will have to explain to the understanding of the mass of the people what is the difference between the Atta Mills/Mahama borrowing and borrowing under NPP.
Because of the predominantly illiterate population, not many of us understand the difference. When does one loan attract the level of “excessive” or “irresponsible”.
Good intentions are not for sale because they are like garbage in the streets of Ghana: they are readily available. Everybody has good intentions.
My prayer is that ‘Planting for Food and Jobs’ will give us even one-half of what Operation Feed Yourself under Commercial school graduate and military officer, General (later Mr) Ignatius Kutu Acheampong, did for Ghana.
We can only pray.
Source: Enimil Ashon/D. Graphic
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THAT IS CORRECT. DR. BAWUMIA IS A GREAT ACADEMICIAN. HE NEEDS HELP WITH HOW TO PRACTICALLY CONVERT ECONOMIC IDEAS INTO ECONOMIC TANGIBLES. SO FAR, HE HAS ACHIEVED A LOT FOR GHANA.
BAWUMIA HAS FAILED AND HE WILL CONTINUE TO FAIL
I wish you take some time to read what the IMF country director, a relatively impartial, more professional in term of both practicals and academics in economics, said recently about Ghana Economy and debt management. IMF Country Representative to Ghana, Dr Natalia koliadina said, “Well, the issue is not how much money it is, but what this money is going to be used for because let me take you to one step back; the financing need of the government has been declining due to fiscal consolidation. You know that last year fiscal deficit was below 6.3% so it was better than budgeted and the government was able for the first time since 2003 record the fiscal prime rate in surplus which is a major achievement. …at the same time the government has a medium-term debt management strategy which is looking at rationalizing the structural maturities of debt and also reducing possibly the cost of debt. So I suppose that the government can take an opportunity or may wish to take an opportunity and step the market while conditions are quite positive.” (myjoyonline.com). So what is your definition of failure???
Just one year in government, and people are already passing judgement. What were you people expecting? Ghana to become a developed country within a year?
Truly he has failed he brag gyemiiii bawunia,adwee pepenii
I think Dr. Bawumia and the economic management team are so much on course. First of all, let's not forget they inherited a bankrupt economy. Presently debt to GDP, reduced from 73% to 68%; inflation reduces from 15.4% to 10.6% currently; industry grew by 17.7% against -0.5%; interest rates from 25.5% to 20%; reduced fiscal deficit from 9.3% to 5.6%; increase soldiers peacekeeping allowance from $31 to $35; restore teacher/nursing training allowances; implement free SHS with free meals both boarding and day; grow the economy from 3.6% to 7.9% within just 1 year in office, remarkable. From the above, one can see that Ghana is working again. Dr. Bawumia and his team have done well and need our encouragement. This year will be even better.
Yes !! Bawumiah has failed woefully, totally and miserably. These are the results associated with lies, falsehood and pretentious used in attaining a position one does not deserve. This is just the beginning.
THE VICE PRESIDENT IS WELL AWARE OF HOW THINGS ARE IN GOVERNMENT. HE WON'T HAVE TO TALK TOO MUCH THE NEXT TIME... WE ARE WAITING FOR HIS RHETORIC BUT THIS TIME HE WILL SURELY GET REAL ANSWERS FROM CITIZENS.. WE ARE NOW WIDE AWAKE.... SCAVENGERS IN GOVERNMENT.. GOD IS WATCHING ALL OF YOU..
Reply@ KAKU: REASON!?!: SQUARE PEGS IN ROUND HOLES>.
I think the Vice president has not fail but has rather lost his pen-drive that contains his economic theories. Please lets help him look for it else he will fail massively. hahahaha joker