Abbey praises govt for accumulating three months' reserve

Ho, Nov. 6, GNA - Dr Joe Abbey, Executive Secretary of the Centre for Policy Analysis (CEPA), on Wednesday said the three months foreign exchange reserve accumulated by Government is a landmark achievement in the history of the management of the country's economy.

He said the situation puts the country in a strong position to stand on its own in case of unforeseen developments on the international commodity market with regards to oil and cocoa prices.

Dr Abbey was speaking at a two-day public forum on the "Performance Of The 2003 Budget, The Enhance HIPC Initiative And Poverty Reduction, The Role Of The Church In Demanding Public Accountability."

He said the general improvement in the fiscal management of the economy requires a corresponding relaxation of the inflexible rein on spending to ensure a sustainable balance in money supply that promotes productive activities.

''Improvements in revenue mobilisation and reserves at the expense of payments hold the risk of over spending in an election year as a result of pressures from wage demands from labour and by contractors to get paid for jobs done.''

"Please do not over spend and if spending is legitimate don't block it," Dr Abbey advised.

He said growth in the economy must come from the creative productivity of the people in order to be sustainable and not from the exploitation of natural resources and handouts.

Dr Abbey said policies, which led to excess liquidity for instance brought gains to a few but raised the cost of living that affected mostly those, who did not gain from that situation the hardest.

He said churches should get involved in monitoring the performance of the Government because of the immense influence they could exert in the economic management of the country due to the large pool of experts among their congregations.

Dr Abbey said by their non-partisan nature the Church was in a better position to reflect the general desires of the populace, majority of whom constituted their membership.

"The Church, therefore, have an obligation to ensure that religion is not seen as a pie in the sky or the opium of the people", he said.