It was touted largely as a crunch cabinet meeting on the Bank of Ghana?s pre-emptory move against the increasing dollarization of the Ghanaian economy last week.
In the event the reported outcome of Tuesday?s cabinet meeting on the issue did not give any indication of any crunchiness to the meeting.
Information and Media Relations Minister?s communique on the Cabinet meeting was conspicuously ordinary:
- Cabinet endorsed the actions to end the dollarization of the Ghanaian economy and ultimately restore the stability of the Cedi;
- The meeting took note of recent developments in the global economy ? It was observed that some emerging economies had fared far worse than Ghana;
- Cabinet, however, was concerned about the lack of clarity in some of the measures announced by Bank of Ghana, especially those aspects that affect the operations of foreign currency accounts and their impact on ?;
- In this regard the Bank of Ghana has agreed to address any ambiguities in the measures announced ?;
- Cabinet agreed on the need to support the Bank of Ghana ? It directed State agencies to fully support these efforts; and
- Cabinet remains committed to the implementation of a number of policies that would reduce import dependency, promote consumption of local produce thereby addressing the current account imbalance.
The Chronicle is more than disappointed, as we expected something far better. It is inconceivable that Cabinet would disown the BoG and the Ministry of Finance. That would have escalated the crisis and worsen things.
But to suggest that some other countries at our level of development or better off than us have suffered worse turbulence so we should smile, is just finding excuses for our lack of creativity or foresight.
For instance, these other countries, do they have the same natural resources that God Almighty has kindly endowed Ghana with? Have they got gold, diamonds, bauxite, manganese, cocoa and lately the black gold, as we have in abundance? Is it everybody who walks in the rain that gets wet?
Those who foresaw the rain before they left home and consequently equipped themselves with raincoats and umbrellas do not get wet. ?When leaders lack vision, the people perish ?? the Good Book admonishes.
It is only the promise to remain committed to policies to wean Ghana off import dependency that holds some hope; but only just! Everything would depend on the approach to it.
The way The Chronicle reads the situation, Ghana is not having these problems necessarily because of the government in power.
It would likely recur whatever government might be in power in future, unless we declare another HIPC under which we would not service any loans, and at the same time have our debts written off.
The Chronicle, therefore, recommends a bi-partisan approach, beginning with a national conference on how Ghana could become a net hard cash earner on a daily basis, to which all local stakeholders should be invited.
The methodologies approved by the conference by consensus should then be enacted into law by Parliament and be binding on all governments in Ghana.
We recall that the Constitutional Review Committee came up with a recommendation for a National Development and Productivity policy that would be binding on all governments.
The NDC government white paper objected to the idea on the basis that it would leave no room for partisan pet projects.
Maybe in the political arena pet projects can be permitted but not so in the economic sphere. Supply of dollar, pound sterling and euros knows no political colouration, and would string up any government in power one time or the other, to the detriment of voters as is currently the case.
It is just a matter of time. So let us be as wise as the ant and collectively plan ahead!
The Chronicle? February 12, 2014
