NDC - UK & Ireland Chapter reflects on President Mills’ One year in Gov't

The UK & Ireland Chapter of the National Democratic Congress wishes to express its solidarity and support for His Excellency, President John Evans Atta Mills led NDC government to mark the first anniversary of his administration. His Excellency, the President on assumption of office in January 2009 set out his government’s vision of creating a Better Ghana Agenda; through a transformed economy and prosperous nation providing opportunities for a better life for all Ghanaians

It is this vision and broad policy framework which has defined the economic and political philosophy of the NDC government’s first year of President Mills’ led administration, which has seen one of the most rapid turnaround in economic development ever recorded in sub-Saharan Africa.

The background to this enormous economic achievements was that the NDC government in December 2008, inherited a distressed and broken economy recklessly managed by an NPP administration resulting in serious economic predicaments, imbalances and challenges, which include a large fiscal and budget deficits of 24.2% of the nation’s gross domestic product (GDP), higher inflation of 18.1%, increase in national debt stock and the depreciation of the cedi by nearly 30%.

The Ghanaian economy was characterised by low levels productivity in agriculture, industry and manufacturing among others.

One year on, NDC-UK & Ireland Chapter reflects on the key policy achievements implemented under President Mills’ led administration and highlights some of the sectoral components contributing to the real sector developments and growth during the 2009 fiscal year.

During the year under review, preliminary data up to September 2009, on economic performance shows that the country registered an annual GDP growth of 4.7%, significantly higher than the expected 1.1% average growth in most sub-Saharan African countries. This real growth was achieved in spite of the global economic crisis and austere measures that President Mills’ led government instituted to correct the macroeconomic imbalances inherited from the NPP Government in December 2008.

Fiscal consolidation, tighter monetary policy and improved food harvest contributed significantly to a reduction of inflation rate of 18.1%, which characterised the latter part of 2008 and early 2009. Inflation receded from a peak of 20.7% in June to 16.04% in December 2009; The Cedi appreciated against the dollar during the last three successive months in 2009 by 1.74% in August, 0.67% in September, and 0.74% in October as investors’ confidence in the economy continued to grow. The budget deficit has been significantly reduced. Prudent public debt management of loans reduced the public debt stock from $8,073 million it inherited in December 2008 to $7,841 million in 2009. Real Sector development and growth in 2009

The real sector development and growth in 2009 saw one of the most rapid turn round of economic development in action since Ghana gained constitutional rule in 1992.

Health: Under the Health sector, Government’s priorities in 2009 were aimed at reducing Maternal and neonatal deaths, enhancing health services for children, targeting resources to the National Health Insurance Scheme, Hospital Infrastructure Development, Maternal Health and Child Health, Community-based health planning ,Malaria and eradication of other communicable diseases:

During 2009 fiscal year, government undertook very ambitious infrastructure development for effective health delivery in the country. The NDC Government undertook construction of the Winneba District Hospital; construction of a 100-bed General Hospital with Malaria Research Centre at Teshie; Five Polyclinics/Health Centres at Kpandai, Tatale, Janga, Chereponi, and Karaga in Northern Region and Tarkwa District Hospital commenced.

Government began the phase two of the rehabilitation and upgrading of the Bolgatanga Regional Hospital and completed the construction of 21 Health Centres with funding from OPEC. The government also approved a loan facility of €28 million for major rehabilitation and upgrading works at the Tamale Teaching Hospital. Reactivated some abandoned projects in Accra- Tema Metropolis, including the Usher Polyclinic Theatre, Maternity Block at Achimota Hospital, upgrading of Maamobi, Kaneshie and Mamprobi Polyclinics; and the Maternity and Children’s Block at Tema General Hospital;

In the area of primary health care, Government undertook a review of the National Health Insurance Scheme and introduced legislation with a view to repealing the current Act and replacing it with a more appropriate legislation. Separate legislative amendments to the National Health Insurance Scheme was proposed to cover the police and the armed forces, and to delink the registration of children from that of their parents

Under Maternal and Child Health care system, 100 students were directly recruited into medical assistants training in Kintampo. Two new midwifery schools were established in Tarkwa and Tamale to increase training of midwives. In 2009, Government completed the seven year national Strategic Plan for Malaria and to strengthen the control of other communicable diseases in 2010, new malaria control measures were introduced whilst HIV/AIDS prevention activities such as behavioural change communication strategies, knowledge of status campaign, and targeting at risk groups were be scaled up.

Education: Government in 2009 focused on the achievement of targets set under the Education Strategic Plan, the GPRS II and the implementation of education reforms. The NDC government after due consultation with stakeholders reversed the duration of Senior High School, from the initial four years to three. The change will take effect from September 2010 after the amendment to the 2008 Education Law. Capitation Grant was increased by 50% from GH¢ 3.00 to GH¢ 4.50 to support access, participation and quality in basic schools. A total of GH¢ 23.53 million was released as Capitation Grant and for the first time all Capitation Grant arrears were paid to schools. Government also made available an amount of GH¢ 4.68 million as annual subsidy for the conduct of BECE for 2009.

Government provided an amount of GH¢ 17.2 million for the implementation of free uniform and the provision of free exercise books as promised in the NDC Manifesto. The Ministry of Education further supplied textbooks to basic schools as part of the efforts to make textbooks available to every pupil. During this period, all arrears accruing to the Northern Scholarship Scheme were paid. Similarly, nearly $2million arrears on overseas scholarships were also paid. Nearly 24,000 (60%) of National Service Personnel were deployed in the education sector and 20,000 volunteers deployed to teach at basic education level under the National Volunteer Programme to make up for the shortfall in teacher supply within the sector. Polytechnics have been accredited to offer Bachelor of Technology Degree, particularly, in Science and Technology as top up of existing HND programmes

Government restructured the school feeding programme to meet the required standards of the African Union and New Partnership for African Development (NEPAD). An amount of GHC13.0 million was released for the Ghana School Feeding Programme to improve nutrition of children of school going age and also enhance enrolment in deprived communities.

A 17% salary increment for teachers was agreed to take effect from January 2010 and a new service conditions, which included package for payment of 20% allowance to teachers serving in deprived communities were also agreed.

Agriculture: Agricultural development in 2009 fiscal year, (with a provisional projected high growth of rate of 6.2% against a target of 5.7%) was one of the most improved sectoral turnaround in a country that had in 2007/8 relied heavily on the importation of rice and other food stuffs from the Far Eastern countries such as India, China and Taiwan.

In 2009, maize and rice production increased by 5% and 20% respectively. Government boosted local poultry production by ordering and distributing 25,000 chicks to farmers at subsidized prices. Interest free Livetsock Development Project was introduced in selected thirty five districts across the country. Under this scheme beneficiary farmers were given a number of sheep and goats to rear for two years and payback the same quantity of animals, which would be given to other beneficiaries. To increase national strategic Buffer Stock, the NDC government rehabilitated two food warehouses in Tamale and Yendi to store a total of 900 metric tons of maize and rice. Government continues to provide necessary fertiliser subsidy and support through extension food delivery.

The Ministry of Agriculture established agricultural mechanisation centres in 80 districts to assist individual farmers who own tractor equipments. Irrigation schemes covering a total of 257 hectares were completed during the year. Tano irrigation project was rehabilitated and completed for commissioning to increase agricultural production. Work also commenced on the construction for 32 dug outs and 16 boreholes in the Northern and Brong Ahafo Regions. The NDC government has so far trained 34 technicians from 15 private companies in bore construction and maintenance.

Government introduced the block farm pilot project during the 2009 cropping season in ten selected districts in West Manprusi and Yendi municipalities all in the Northern Region. The initiative was aimed at improving agriculture and farming as an innovative business that can reduce the unemployment situation in the country if people especially the youth get interested in farming. So far, 5,009 farmers have been employed cultivating a total of 4,939 hectares of land in the Northern region with a greater yield expected at harvest.

Under the Youth in Agriculture Programme, over 50,000 youths were employed to cultivate 3236 hectares of maize, 6935 hectares of rice and 4014 hectares of soybeans.

Government supported the cocoa industry by implementing policy measures within the sub-cocoa sector to enhance cocoa production. During the 2008/9 cocoa season, the producer price paid per tonne of cocoa was GH¢ 1632.00 or GH¢ 102.00 per bag of 64 kilos, which was 70.46 of the net Free On Board (fob) price. Employment and social welfare:

The NDC government in consultations with interested stakeholders successfully negotiated 2009 wage settlements with the public sector workers to tackle the high levels of unfair pay differentials in the country. The roadmap for the implementation of the Single Spine Pay policy (SSP) in January 2010 was finalised. Government also increased the national daily minimum wage by 18% from GH¢ 2.25 in 2008 to GH¢2.655 for 2009. Public and civil service sector wages were increased by 17%.

Government paid salary arrears of GH¢ 951,000 for June and July 2009 to Ghana Railway Corporation staffs who have not received their salary for nearly two years.

The National Youth Employment Programme (NYEP) provided jobs for 110, 796 persons across the country.

The NDC government established a Social Security Fund for Cocoa Farmers to take effect for the 2009/10 cocoa season. GH¢ 21.4 per tonne of cocoa sold would be set aside to start the Fund with government contributing GH¢ 15 million as seed money.

During the 2009 fiscal year, government increased employee pension contributions by 0.05%. This means that with effect from January 2010, salary contributions for employees increased from 12.5% to 13% for improved pension benefits. In October 2009, His Excellency, President John Evans Atta Mills launched a new three- tier pension scheme. The scheme comprises two mandatory schemes and a voluntary scheme. The first tier is a mandatory basic national social security scheme, which will incorporate an improved system of SSNIT benefits, while the second mandatory fully funded and privately managed occupational pension scheme, is designed primary to give contributors higher lump-sum benefits than SSNIT and the CAP 30.

The third voluntary provident pension scheme is targeted at those in the informal sectors, who constitute 85% of the workforce and provide additional benefits to workers in the sector who want to make voluntary contributions to enhance their pension benefits.

Energy: The Energy sector provided the Government with major challenges during the 2009 fiscal year.

However, government managed to secure a $300million dollar grant for the rural electrification programme and as the 3rd quarter of 2009, 240 communities have been connected to the national electricity grid under the national electrification scheme. Government also signed a Memorandum of Understanding with Brazilian government for the development of 90 megawatts Juale Hydro project. Other ongoing activities include the installation of 126 megawatts Team Thermal 1 Power Project, which is now fully operational. The 49.5 megawatts Team Thermal 2 Power project is currently 95% complete.

The petroleum industry has been the most volatile industrial sector in 2009 due to heavy indebtedness of the Tema Oil Refinery to Oil Marketing Companies and financial institutions. TOR’s liquidity problems and debt of nearly $1billion resulted in the various banks shying away from giving credit facilities to the OMCs resulting in intermittent fuel shortages in the country. By the end of December 2009, the situation at TOR had been stabilised with the refinery processing crude oil for the local market.

Government in 2009 restructured the National Premix Committee and the 28 landing beach committees in the regions to ensure pre-mix fuel reached fishermen in the fishing industry. The sale of premix fuel at subsidised prices directly benefited the fishing communities as proceeds after any deductions and payments to government are to be used for local development.

Industry: The NDC government’s Better Ghana Agenda policy to develop a vibrant, technological driven and completive industrial sector for economic growth and employment creation resulted in the overhauling of industrial infrastructure in the country.

Today, the NDC government has successfully inaugurated a new cocoa processing plant in Kumasi, Ashanti Region. Government opened a new Tomato processing factory in Brong Ahafo. Northern Star Tomato Processing Factory at Pwalugu, has become operational within the last twelve months. Plans are well underway to rehabilitate the Asutuare Sugar factory, the jute and shoe factories in Kumasi. Under the Savanah Accelerated Development Authority, Government in 2009 signed a $10million agreement with Brazil to establish a Shea nut processing plant at Buipe in the Northern Region.

In spite of the global challenges faced by the local textiles, government within the last twelve months indicated its willingness to assist in the rejuvenation of the local textiles industries, which has the capacity to provide over 1500 jobs. Revamping the local textile industries would create opportunities for Ghanaian cotton farmers, and also create more opportunities for Ghanaian textile manufacturers. In October 2009, the Ghana Education Service awarded Printex Ghana Textiles Ltd to produce the raw material for the free school uniform project.

Government made significant progress in the fight against corruption, improvement in law and order, good governance and transparency. Government also provided logistical support to the security agencies in the fight against armed robbery, domestic violence and international crime prevention. President Mills’ led administration in 2009 was determined and committed to transforming the weak economy it inherited from the NPP government in 2008 into a viable economy by embarking on programmes that would stimulate continuous economic growth and development.

We believe these are the drivers for accelerated economic growth in the country, which we all crave for under the Better Ghana Agenda policy in 2009 and beyond. We are, together, prepared to confront the challenges that impede our national developmental efforts. The NDC UK & Ireland Chapter joins hands with President Mills’ led administration in reaching a major milestone in laying the foundation for much better Ghana than it was in 2008.

To our Dear President, His Excellency, John Evans Atta Mills, we admire you and your government’s unflinching determination, strength of conviction and the peaceful ways you seek to bring social and economic justice to all communities in the country.

The UK & Ireland Chapter of the National Democratic Congress wishes to express its gratitude and support for your government’s programmes in seeking to enhance the social and economic well being of the people of Ghana.

Long Live Ghana!!

Long Live the NDC!! Alex Seshie-Vanderpuije Public Relations Officer NDC UK & Ireland Chapter *Source: Budget Statement & Economic Policy (2010 Fiscal Year)