Bad economy forces businesses out

Read Comments Comments (10)

• KOO 8 years ago

  Mr Nyaunu will be branded an NPP spokesman very soon because these sorts of findings is not the type of news NDC want the people to know and even hear.Mahama has denied that companies are relocating to neighbouring countries ...
  read full comment

  Mr Nyaunu will be branded an NPP spokesman very soon because these sorts of findings is not the type of news NDC want the people to know and even hear.Mahama has denied that companies are relocating to neighbouring countries however logic will tell you that it is really happening.Doing business is very expensive for companies and individuals.

  reply
• ghananiba 8 years ago

  Yesterday Government communicators were filling the news columns of having created 600,000 jobs.
  It is the same old story: "If it a lamb, say it is an elephant". The truth will come out one day to haunt them - the sad trut ...
  read full comment

  Yesterday Government communicators were filling the news columns of having created 600,000 jobs.
  It is the same old story: "If it a lamb, say it is an elephant". The truth will come out one day to haunt them - the sad truth is that it is the populace that get hurt.

  reply
• bombay 8 years ago

  It will not happen if journalist pick the story up and truly showcase it. Our journalist are also hungry and doing stomach journalism. CNN conducts polls not because government feeds her everytime, but when the need be and al ...
  read full comment

  It will not happen if journalist pick the story up and truly showcase it. Our journalist are also hungry and doing stomach journalism. CNN conducts polls not because government feeds her everytime, but when the need be and also to increase her viewers. We have made political parties tell us what they want to tell us, because not a single individual or corporation to conduct a field research and produce a documentary to enlighten us. We are forced to listen to their radios, TVs and criminalize anybody speaking the truth.

  reply
• KWAME 8 years ago

  The Government and the NDC will do everything to try to survivethe lies because there is one realization to them; which is that there are very many vulnerable people in our country who are susceptible to deceit. These people ...
  read full comment

  The Government and the NDC will do everything to try to survivethe lies because there is one realization to them; which is that there are very many vulnerable people in our country who are susceptible to deceit. These people are not enlightened much to engage in any constructive analysis to enable them reach realistic conclusion.
  I wish I had much time at my disposal to take this group of people through issues of Economics and Finance. It is ‘’A NO GO AREA’’ for many people even to Intellectuals to break down to the level of the less informed. Unlike Politics which any body can engage in if only one has common sense, Economics and Finance are specialized areas which people shy away from. It is a common knowledge that people of different professions like History and Communication could conveniently engage in politics but they will not dare speak on Economics or Finance related issues unless coached by those with that knowledge.
  In this discussion I wish I could employ knowledge in CALCULUS to make it easier for me but those who are anti mathematics will not be happy with me. So there is no alternative for me than to write the long English in the attempt to educate Ghanaians that provision of infrastructure is not mutually exclusive to implementing sound economic policies.
  Gross Domestic Product (GDP) is simply described by certain literatures as the summation of the market prices of all goods and services in the economy. This market price of goods and services are loaded with inflation. For instance the recent increase in the utilities and fuel has rippling effect on all other goods and services affect their market prices. Now, with this understanding is it not possible to have the GDP of a country go up without necessarily increasing the quantities of goods and services? So increase in GDP in developing countries especially, does not mean the economy is expanding. In the advanced economies they are able to stabilize inflation for a long period so it makes sense to talk about GDP as measurement of the growth or otherwise of their economy as introduced by Alan Greenspan.
  The expansion of the Ghanaian economy as being related by some Government officials has been aided to a large extent by inflation. Control of inflationhas been a major problem in Ghana. Any computation using GDP whether as the denominator or numerator could not give unadulterated position. Often times I have heard speakers say that if the economy has expanded and it is growing by say 5%, it is better than an economy which has been growing at 8% on a smaller GDP. In terms of the absolute one will be right to say 5% is bigger than 8% in relation to their bases. But it tells that the economy which is expanding by 8% is more efficient than the one growing at 5%. An economy which is expanding where power supply is limited raises lots of questions. It is important to interrogate what is causing the expansion. Is it not as a result of rising inflation in the economy?
  There is good reason why every government in the world tries to reduce inflation, especially to lessen the burden on the vulnerable and the poor. The citizens in this group feel the impact more during periods of high inflation like 19.2% being witnessed in the country at the moment. And it is important to note that inflation rate quoted is the average which means there are some goods and services whose individual inflation rates are more than 19.2% whiles some have lesser inflation rates than 19.2%. If one does critical analysis it will be realized the individual inflations for goods and services which demands are inelastic and which are usually patronized by the poor and the vulnerable (forming the majority in the society) are those with higher inflation. This makes the cost of living very unbearable to majority of the people as Ghana is going through now. The poor and the vulnerable which this Government and the NDC claim to be friendly to are seriously suffering. Goods and services like housing, utilities, transportation, health, poor public services, food, clothing and many more cannot be afforded by the citizens. This state of affairs has been worsened by endemic corruption in both high and low places in the public sector in particular.
  Because of the high inflation, interest rates charged by the banks are very high. Inflation is a component of nominal interest rates in addition to the risk associated to doing business in the country. Government has deliberately decided to compete with the private sector in the money market making it difficult for businesses to access credit from the banks which prefer to lend to Government which is considered to be of lesser risk. This environment becomes unabling for the private sector to expand to enable it provide jobs for the teeming youth and graduates in the country. It was a strategy to implicitly stifle the private sector to grow because this sector is considered to be friendly to the NPP and will likely assist the party with funds to carry out their political programs. Cost of capital has been extraordinarily high to make the Ghanaian business competitive. Loan defaults in the banks have increased as a result of the unfriendly business environment. Banks are forced to implement stringent measures which the private sector cannot keep to.
  Government has also not been able to put into place plans to generate adequate foreign exchange to meet the country’s requirement and have to go to the IMF for support. This also comes with conditionalities which they are not ready to discuss with the Ghanaian people. The multilaterals and the bilaterals operate like banks and anytime they lend to a country, they want to be sure the recipient country puts in measures which will guarantee the payment of their credits. Any bank which lend to a business or individual is concerned with the source of payment and the regularity of that inflow to guarantee them getting their money back. These institutions operate on the same principle. The high tariffs and the sale of some state organizations are all part of the conditionalities to ensure the country service its loan obligations to them. Government subsidy in any form is not tolerated because it affects the chance of raising the revenue to pay back their loans.
  The high exchange rate regime makes goods and services imported very expensive. These importers need to sell their goods at high prices to enable them buy foreign exchange to further import. Import taxes and levies are also high; all these make the cost of goods expensive in the country beyond the pocket of the ordinary person.
  An innovative government will adopt measures to ensure that foreign exchanges from our exports in spite of the reduction in commodity prices are sustained. President Kufuor was able to increase Ghana’s cocoa to one million metric tons to ensure that Ghana’s foreign exchange is sustained in the face of reduction in the price of the commodity.Ghana is also a net importer of oil so the reduction in the price of crude on the world market benefited the country than if the price had gone up. This means the country is now paying less for crude and so making savings on the commodity.
  During the time of the previous government, the NPP, there was no revenue from oil but our socio-economic condition was far better. The cost of living was not as bad as we are facing now.Matching the level of reduction in our exports compared to the benefit we are getting from crude, Ghana is better off now than before in terms of revenue for the country.
  A competent Government will know the importance of power to the country and will give it a priority. Sadly enough, the power issue was a campaign issue for NDC and the Mahama administration. He knew the situation before he was voted into power. But because of his wickedness to stifle the private sector which by extension deprives the NPP of resources, he waited and attended to the problem when his government was about exiting power. It is this mark of wickedness which has created the high level of unemployment in the country now. Those with jobs have lost their jobs adding up to those who are waiting to get jobs exacerbating the unemployment situation in the country.
  The approach to solving the power problem was not the best. As a country we are still getting some contribution from hydro. Knowing this contribute cheaper power, mini hydro dams could have been constructed with different engineering designs to make them generate power even at low water levels, all over the country during the three years the country has been waiting. The thermal pants provided were at a higher cost to the country in terms of price and maintenance cost. There is no doubt that their prices have been inflated; another example of CORRUPTION this Government is noted for.
  The sad spectacle is that in this period of high cost of living, people cannot find jobs; how will they survive? This is a herculean task for the incoming NPP administration but we hope Ghanaians will bear with this team to address the problems. This Government and the NDC which have been in charge of the country for EIGHT YEARS have no moral grounds to ask the people of Ghana to give them another FOUR YEARS to make themselves, friends and families richer through CORRUPTION.
  The Government is always touting themselves as having provided more infrastructure than any government in the history of the country. Granted it is true, there is a saying that ‘’TO WHOM MUCH IS GIVEN, MUCH IS EXPECTED’’. This Government is on record to have BORROWED more than any government in the history of this country. This Government is on record to have imposed more taxes on the people of Ghana more than any government in the history of this country. This Government is the only government in the history of this country with resources from CRUDE OIL. This Government is also known in the history of this country to have given the people of Ghana the WORST CONDITION OF LIVING and HIGH UNEMPLOYMENT levels.
  Over the years there have been deliberate efforts by successive governments to slim down the public sector. This has been the advice of our developing partners. They have been encouraging the private sector to be the creator of jobs instead. Government’s revenue will increase with the expansion of the private sector through corporate and employee taxes. The approach where the few in the formal sector are continuously heaped with increasing taxes will stop when the tax net is expanded. Unfortunately the Mahama led administration has discarded this wisdom which has been adopted in the advanced economies and has invented its own model of developing the country. This has failed in every respect but they are going around doing propaganda and churning out lies, concocting figures to throw dust into our eyes.
  Anybody who just want to see the seriousness of the unemployed dilemma in the country should visit the GAMING CENTRES during working hours to see the number of teeming youths without employment engaged in betting.
  Government claim to have provided roads, schools, hospitals, stadium and market so they have created employment. We the people of Ghana challenge them to provide us the amount of jobs provided as against the number of unemployment they have created by their incompetent and bad policies. We shall set aside the unemployed before they took over the administration of the country.Going by the figures being quoted by Government communicators on the job created it is an indictment on the Government that they have not done well at all in eight years to our expectation taking into account the current levels of unemployment.
  As for the the National Youth Employment Program it is an arrangement to reward party loyalists and friends of Government.
  Managing the economy is not about only providing infrastructure. It include the protection of the country’s purse against the wide spread of corruption in the system, provision of efficient and affordable public services, creation of enabling environment for citizens to realize their individual aspirations as enumerated in the Directive Principles of State Policy, lower cost of living conditions, equality of opportunities and prosperity for all and not for Government officials and their families and friends, the maintenance of rule of Law as opposed to the actions of the BNI disobeying orders of our Courts, protection and preservation of Fundamental Human Rights and Freedoms as against the arrest of the photographer and security person of the NPP’s flag bearer. These are just some of the duties expected of the President and his Government.
  Even as a toddling country from independence Osagyefo did not ask the people to tighten their belts whiles he and his Government officials, friends and families live good to enable him provide physical infrastructure before sound economic management. The provision of the TemaHarbour, the Akosombo Dam, theTema Motorway etc. was part of a well integrated plan to industrialize this country. Nkrumah knew the people will not eat the Motorway, Tema Township, Harbour ,Akosombo Dam and the other infrastructure and so did not ask Ghanaians to tighten their belts whiles he completes the provision of the infrastructure. During this period the private sector was not matured so the state led the provision of jobs.
  Kwesi Pratt used to say that President Kufuor was managing the country like the way Kwahu Businesses (APAMPAM STORE) are managed. He said this because fuel and utility bills were just slapped on Ghanaians any time the cost of crude goes up on the world market. Is he satisfied with his mentor President Mahama in the way he is managing the country now? Now he is part of the CHOPPING SQUAD so he will endorse something he spoke against whiles NPP was in government.
  The time has come for true and honest Ghanaians who want the best of their country and not for their selfish end to say to the Government, NOT THIS TIME; THE LIES and PROPAGANDA will not be accepted. EIGHT YEARS for any Government is long enough to show what it can offer. NO MORE, NO LESS. The NDC in government has shown what they have to offer and Ghana should send them away and ask them to go and do their home work and come at the right time.
  GHANA! RISE UP FOR THE BIG CHANGE WHICH IS ABOUT TO HAPPEN ON NOVEMBER 2016. LET US WASTE NO RESOURCES FOR A ROUND OFF. IT SHOULD BE ONE TOUCH VICTORY FOR NANA AKUFO ADDO AND HIS CAPABLE TEAM TO CHANGE OUR LIVES FOR THE BETTER. I AM GOING TO HELP SO YOU SHOULD ALSO HELP FOR A BETTER GHANA WHICH OUR FORBEARERS ENVISIONED FOR THIS COUNTRY

  reply
• bombay 8 years ago

  Good writing. good wording. try and create a blog. Only serious people will read - like me. I finished it. but your target audience is not ppl like me...but the grassroots. they are in the betting center as you said, so they ...
  read full comment

  Good writing. good wording. try and create a blog. Only serious people will read - like me. I finished it. but your target audience is not ppl like me...but the grassroots. they are in the betting center as you said, so they would not read all these. Please create a blog. Bravo anyways

  reply
• Ashootings 8 years ago

  A government which blindly follows poor economic polcy such as high interest rate has a goal of destroying local businesses and create unemployment. Clearly, this government does not need another four years.

  A government which blindly follows poor economic polcy such as high interest rate has a goal of destroying local businesses and create unemployment. Clearly, this government does not need another four years.

  reply
• George Nutsugah 8 years ago

  This means that John dead goat and his ministers have been telling lies that smart businesses are recruiting more workers and that the economy is robust. God have mercy on Ghana.

  This means that John dead goat and his ministers have been telling lies that smart businesses are recruiting more workers and that the economy is robust. God have mercy on Ghana.

  reply
• geo 8 years ago

  Go to takoradi and see if tullow and co are still there. They've shifted to ivory coast

  Go to takoradi and see if tullow and co are still there. They've shifted to ivory coast

  reply
• zero 8 years ago

  This is better change for a better Ghana, let them go made in ghana is the way forward.

  This is better change for a better Ghana, let them go made in ghana is the way forward.

  reply
• gek 8 years ago

  It is very sad that whenever there is an issue to be addressed, while professionals of that particular field are there we see and hear our media bringing politicians who do not any technical idea to use the platform for noise ...
  read full comment

  It is very sad that whenever there is an issue to be addressed, while professionals of that particular field are there we see and hear our media bringing politicians who do not any technical idea to use the platform for noise making.
  
  It is sad that whoever tries to speak the reality the person is tagged with political colours. when the is issues about TOR, GES, GHS, NHIS etc only politicians talk and it becomes blame game. When will Ghanaians find solutions to existing problems and stop blaming others. The wises people of the great nation are not our politicians.
  I always ask myself that so the monies we are throwing away as a results of solving dumsor can Kwadwo Safo could have given Ghana giant plants when those monies where given him?
  
  The Dr. KWABENA Frimpong's and the like can help this country if we can only respect their God's given gifts and talents. I rest my case . Good morning Ghana.

  reply