It is haphazard to govern and make the right choices without reliable data. Many of the measures discussed in all sections of this paper can only be envisaged if the underpinning analysis is based on reliable and timely data. Inflation management is central to the macroeconomic policies we are advocating and yet, even now, our experts have misgivings about the accuracy of the inflation data supplied by the statistical service.

It is imperative that an NPP administration, which is committed to evidence-based policies, makes it a priority to ensure that the statistical apparatus is as efficient and accurate as possible, according to internationally accepted best practices.

During my nationwide Listening Campaign, the cries of the people, whether it is about cost of education, bad roads, high cost of living, low retail sales, all come down to one thing: we need good jobs with good income. But the truth must be told. Unless we industrialise with the goal of adding significant value to our primary products, be they heavy or otherwise, we cannot create the necessary numbers of high-paying jobs that will enhance the living standards of the mass of our people. Raw material producing economies do not create prosperity for the masses. The way to that goal, the goal of ensuring access to prosperity, is value addition activities in a transformed and a diversified modern economy. In other words, the industrial development of our economy.

Ever since Governor Guggisberg left our shores in 1928, Ghana’s economy has remained structurally rigid, depending largely on exports of primary commodities such as gold, cocoa, bauxite and timber. In 1928, seventy percent (70%) of our foreign exchange earnings were from gold, cocoa and timber. In 2007, about 65% of our earnings were from these same three products. Provisional data on the external sector indicate that total exports for 2010 was $7.9 billion. Exports of cocoa fetched $2.2 billion. Gold exports increased by 49.1 percent to $3.8 billion. Other exports including non-traditional exports brought in $1.7 billion. Of particular interest, cocoa and gold exports alone accounted for $6 billion or 76% of Ghana’s total exports for last year. In 2009, cocoa and gold exports accounted for $4.5 billion or 78% of total exports. This year, being the first full year of oil production, it is possible that exports of gold, cocoa and crude oil alone will account for more than 90% of Ghana’s export earnings.

We felt good when Ghana was praised for being the 2nd largest producer of cocoa, with Cote d’Ivoire and Peru, among the leading cocoa producers. This year, we have already hit the magic number of 1 million metric tonnes of cocoa, which was the target set by the Kufuor government. This was also the year that the target for having 50% of our cocoa processed locally was set. Sadly, my information is that this target for added-value has been missed. Touted as a leading producer of cocoa, raw gold, raw manganese and timber has done nothing to address the concerns of the hundreds of thousands of young men and women who do not have jobs. Even though the significant expansion of the economy over the last decade has brought about a higher average per capita income it is still limited in its capacity to generate decent jobs with decent pay for our youth. An expanded economy should not only mean having a wider variety of cheap imported goods to sell on our streets. An expanded economy should also mean an industrializing economy.

Manufacturing contributes a meagre 8 to 9% to GDP. Ghana’s manufacturing industry continues to be saddled with challenges that can be effectively addressed with sound policies. The cost of production (Producer Price Index) continues to increase, while we are told that inflation (Consumer Price Index) is at an all time low under the Fourth Republic. If these statistics are anything to go by, then it could only mean that we have given up on the globalization race, and have neglected our own local producers. A typical example is the Pharmaceutical industry. ‘Counterfeit drugs are destroying local industry’ was the front page report in the Business & Financial Times of today. 40 years ago, India had no pharmaceutical industry of note and yet it took a strategic policy of the state, starting with the Patents Act of 1970, to support the private sector to make India the world’s second largest pharmaceutical industry today, with over 20,000 drug manufacturers. Ghana and Nigeria have the biggest pharmaceutical industries in the whole of West and Central Africa. I’m even reliably informed that our drugs are considered to be of a higher standard. Nothing stops us from learning from the Indian experience to become the masters of this lucrative industry. Instead, what we have seen in recent years are rather measures that are counterproductive to the growth of the local industry, with Facility Audit Fees, for example, going up from $7,000 in 2008 to $15,000 today. At the same time the Food & Drugs Board has seen its share of the national budget decreasing in real terms.

I have stated before that “strong democracies are built by strengthening the institutions of democracy, rather than the power of men” and that “the gains we have made in our democracy due to the sacrifices of great individuals must be protected by great institutions.” In order for industries in Ghana to have the liberty to grow and expand, the state must protect them from unfair competition. In order for us to build a society that meets the aspirations of people and opens up opportunities for all, government must prioritise its budgetary arrangements to ensure that funds are available to strengthen Parliament, the Judiciary, CHRAJ, EOCO, Food and Drugs Board, Standards Board and other institutions with more resources and where necessary, better personnel and greater efficiency. We cannot speak of access to equal justice when, for example, in the Volta Region, there are only five lawyers working for the Ministry of Justice, expected to prosecute cases in all five High Court locations and several Circuit Court premises in the region. But beyond the provision of resources, it is even more important that we promote and develop a culture whereby these bodies see themselves as independent public entities serving the wider public interest, not the temporary conveniences of the government of the day. Hence the critical importance of taking the measures that will assist the consolidation of our democracy.

This are extracts from the Liberty Lecture delivered by Presidential Candidate of the New Patriotic Party, Nana Addo Dankwa Akufo-Addo.