A reflection on the above title published on 26/01/11

It is interesting read how some of the comments made by political analysts and
commentators are actually presented. Although, I plan to go into politics in the
future, I should say that at present, I do not have political affiliation to any
party in Ghana.

Kwaku Baako Jnr and Kwesi Pratt, as well as a few others must be commended for the
job they are doing in Ghana. Their critical evaluative analysis of ruling
governments seem to draw awareness and serve as checks on activities by ruling
governments and ensure that policies which were presented in their electoral
manifestos, "upon which they were elected into power", are achieved. However,
sometimes one can't help but to sympathise with ruling governments when they put up
fuel prices.

You see the fundamental elements needed to catapult Ghana's economic development are
in most cases non-existent and if they exist, their implementation and operation are
not strictly monitored. Ghana is a country where the taxation system on income is
virtually non-existent apart from a few areas of public services. But employment in
the public sector contributes to only a minimal percentage of the total employment.
Further, most public sector employees are on low income contributing the barest
minimum to income tax.

Those in the private sectors, who are mostly highly educated have become expects in
tax avoidance and evasion. Bank bosses declare huge chunks of their salaries as
bonuses which are paid out to them separately. No I am not talking about HBOS,
Lloyds or Natwest. I am talking about banks and bankers in Ghana. This is a tip of
the iceberg though. One can go on to mention other private sectors and
self-employers. If the AMA and many other countless agencies force the KAYAYEI and
iced-water sellers around Makola market to buy tickets in order to trade for the
day, then there should be no reason why the “bigger fishes” must not be made to pay
appropriate tax rates in relations to their actual incomes.

But how can this be realised if fundamental elements such as national taxation or
insurance numbers for individuals for income tax contributions are non-existent.
Until some sort national agenda is drawn, projects on which will bind future
governments until the completion of its execution, to include the gradual
introduction of some of these fundamental elements, ruling governments will have
very limited options than to put up the price of fuel to generate revenue. Everyone
uses fuel either directly or indirectly and therefore makes increment in fuel prices
a simplest way for government to generate revenue.

Further to the above issue, it must be said that a good majority of Ghanaians do not
understand the voting into power of a political party based on electoral manifesto
policies. A significant minority are influenced by money to vote, whilst a good
majority vote on the grounds of tribal connections. Hence, when people go out to
demonstrate against ruling government, I sometimes really doubt if they reasonably
have a clue as to what or why exactly they are protesting against. The majority
never understood or took noticeable or carefully considered policies of the
parties during elections in the first place.

Ghanaians should not be under any illusion that the drilling of Oil in the country
is going to end increments in fuel prices any soon. Until essential elements such
as that mentioned above have been put in place to generate revenue from other taxes,
ruling governments will have no choice but to raise revenue from taxes on fuel or to
put up price to minimise the its expenditure in subsidy on fuel, either of which
will result in fuel price increase.

Therefore, Kwasi Pratt’s point is well made. However, the question is does the
ruling government has any other options open to it in relation to the macro
“picture”? Well think about it.

Please note that I wrote this piece purely as a reflection and hold no political
affiliation to any political party. I am sometimes concerned that many essential
national issues are made political. I was born in 1980 and completed Mfantsipim
School. Lately, I have become particularly aware of the fact that the administration
of Ghana would fall on us, my generation, to manage by the turn of the next decade.

I do not a strong believer in Economic Determinism but in the case of Ghana, it may
just be true.

Prince Anim Baabu (BA, LLM)
London
princebaabu@hotmail.co.uk